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PSNC Asks to Amend Controversial Rate Plan Structure

Posted April 20, 2007

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— PSNC Energy this week filed a motion with the North Carolina Utilities Commission to amend its controversial rate structure, which sets a minimum usage for gas customers in the summer months to prevent a higher rate in the winter.

The motion, filed April 18, asks the Utilities Commission to put all of PSNC customers on the "Standard Rate 110" plan on its lower "Value" rate plan, effective June 1.

About 120,000 customers statewide -- considered "part-time" customers because they do not use as much natural gas in the summer -- on the standard rate plan pay $1.30 per therm. PSNC said part-time customers create inconsistency for the system and are more expensive to serve.

There are about 280,000 customers -- who use natural gas year-round -- on the value rate plan that pay $1.18 per therm.

In the Triangle, PSNC serves approximately 250,000 residential customers. About 175,000 are on the lower value rate, and 75,000 are on the higher standard rate.

If the Utilities Commission approves PSNC's motion, customers could still see an increase in rates in the future. The lower rates would mean a decrease in revenue and profits.

PSNC is expected to ask Utilities Commission for a rate increase to make up the difference.

7 Comments

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  • mep Apr 20, 2007

    One way or another they will get the money.
    It is just sad to try and conserve and be rewarded by having to pay more. Sounds like we will all have to pay now.
    I will say they do provide great service.

  • Heelzrule Apr 20, 2007

    i heat with gas also - but won't get too excited.....they'll just turn around and raise the rates!!
    penalized for using less energy.....gotta love capitalism!!

  • kelleyv Apr 20, 2007

    listen you people: stop whinning and pay up. Do you think this country is being run for the benefit of people?

  • no screen name Apr 20, 2007

    I would like to know how to get some of my $$$ back!

  • NC_VET Apr 20, 2007

    I agree this is crap and another attempt to get more money
    since I only use gas to heat with. Which means I normally only
    pay the service changes from may to oct/nov. Figure the
    Utilities Commession will sell us down the river again. They are
    such wimps and afraid to tell PSNC - NO !

  • no screen name Apr 20, 2007

    I think it is CRAP! I have been paying more b/c I cut back and try to save my money!

  • cherokee43v6 Apr 20, 2007

    If this means I'm not being penalized for only having a 'gas' furnace, then great.

    I thought it was rather unfair of them to have a dual structure in the first place. Anyone know if there is a class action going to recover the higher costs we have already paid for this unfair, monopolistic action?