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Progress Energy wants significant rate increase

Posted June 6, 2008

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— Citing the need to cover the soaring cost of fuel for power plants, Progress Energy has asked the state to approve a 16.2 percent rate increase.

The Raleigh-based utility filed a petition Friday with the North Carolina Utilities Commission to increase rates by about $424 million.

If approved, the increase would raise the average monthly bill to $112.57 from the current $98.86.

"This is actually the highest fuel-related increase in our rates since the 1970s, and it's reflective of the same things all of us are seeing at the gas pumps," Progress spokesman Mike Hughes said. "Those same influences are having an impact on all the fuels that we use to generate electricity."

The price of coal, which Progress uses to generate about half its electricity in the Carolinas, has soared in recent months. Prices for natural gas and fuel oil, which account for about 5 percent of output, have also risen drastically.

The Utilities Commission will likely have a public hearing on the request in the fall. If approved, it would take effect Dec. 1.

Progress Energy Carolinas said it doesn't make a profit from the fuel cost component of the rates. The company files annually to recover fuel costs. This year's filing reflects anticipated future costs, given continued higher prices.

The utility, with 1.25 million customers in North Carolina, made a similar fuel-expense filing in South Carolina in April.


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  • anne53ozzy Jun 9, 2008

    I assure you the residential cusotmers will take the brunt of this increase. Unless I am mistaken, those who use more pay less per kilowatt hour than those who gooble it up like there is no tomorrow and pass the cost along to consumers.
    This sucking dry of the lower and middle clas consumers is going to be the death knoll for capitalism in this country.
    I encourage everyone to unplug everything from microwaves to cable boxes to clock radios when not in use.
    It may be a pain to reset but it will make an impact-not to mention, do not leave your CPU, fax machine or any device that uses power up if it is not in use.
    Does anyone out there know if using a ceiling fans is cost effective vs running the air conditioner at a lower temp?
    Pls advise at which point it becomes counterproductive

  • davidgnews Jun 6, 2008

    "I worked for Progress for 22 years. It amazed me how much money the CEO and all the vice presidents they had, (22 in all) made a year. Plus they, and only they, got bonuses. It was like a kingdom. The VIP's made big money. The workers didn't." garden

    I worked a contract there, and it looked like federal government offices to me. A lot of people moving around, but not getting anything done.

    The board room does have a nice bar, though!

  • davidgnews Jun 6, 2008

    colliedave - In my world, a teacher would earn more than a baseball player !

  • colliedave Jun 6, 2008

    As part of their 2006 compensation, Progress Energy executives received an annual car allowance of $14,400, financial planning service, a country club membership, a luncheon club membership, up to $2,500 for a physical health exam, first-class air travel for spouses, a home security system and free car washes.

    These men have reached the top level of their profession. No one complains about a starlet's high priced contract. A rapper's contract. A pro athelte's contract. All it entails is class envy.

  • sgt_nc Jun 6, 2008

    I find it interesting that everyone assumes that Progress Energy has done nothing internally to avoid a rate increase.

  • enderby Jun 6, 2008

    You think it is expensive now? Wait until Congress enacts the latest Barbara Boxer garbage. Part of the stylish California energy bill is a provision for energy credits. We know what state will benefit from that, the one that chose rolling blackouts over nuclear power plants.

  • groovyguru Jun 6, 2008

    Didn't someone tell us that deregulation would REDUCE rates?

  • whatelseisnew Jun 6, 2008


    This President has wanted to drill for our own energy resources all along. The Democrats in Congress have stood and continue to stand squarely in the way of us going after our own resources. So if you want to blame someone in Government, at least blame the right people. Right now there is a bill being pushed by the Democrats, Harry Reid is leading the charge that will make what we pay for gas and electric these days, paltry. They really do not seem to understand the great harm their policies are doing to this country. At least do this, write to everyone of them and tell them to quit the nonsense and start drilling now, and build more refineries. They also need to repeal that nonsense that has farmers growing corn to get converted to ethanol. You can thank them for that at the grocery store.

  • RebelRabbi Jun 6, 2008

    The United States should impose drastic tariffs on all Agricultural exports to OPEC Nations. We need oil but they need food. Any foreign Nation that breaks the embargo should be considered hostile.

  • coolwill Jun 6, 2008

    Let’s see who else out there wants to raise their rates, pretty soon we all will collect government assistance because we want have anything left. Let’s all just file for bankruptcy now. Is it my understanding that CP&L recoups the money it pays for fuel, so every thing they get is profit - payroll - expenses? Now how much money does it cost to run the nuclear plant? I thought nuclear plants were self sufficient, I believe I am on that grid anyway so I should not have to pay for a increase. We paid for them to build the plant a while back.