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State OKs rate cut for PSNC gas customers

Posted October 27, 2008

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— The North Carolina Utilities Commission on Monday approved two moves by PSNC Energy that will result in a rate reduction for residential customers.

The company requested an increase of 1 percent in the base rate and a decrease of 7 percent in the cost-of-gas component. Taken together, the two will show a net 6 percent cut to residential rates. The average homeowner will save about $8.50 a month after the cut.

The cut in natural gas rates – from $1.52 per therm to $1.43 per therm – will take effect on Saturday.

Plummeting energy costs prompted PSNC to propose the rate cut. The utility also dropped rates 14 percent at the beginning of the month.

Utilities are allowed by state law to pass on their fuel costs to customers, but they also are required to negotiate the best deals they can get.

Even with the two rate cuts, natural gas prices remain 6 percent higher than a year ago.

PSNC has 454,000 natural gas customers in the state, including 280,000 in the Triangle.

18 Comments

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  • Smorgas_Of_Borg Oct 27, 2008

    Better picture link to Neptune:

    http://starryskies.com/solar_system/neptune/dark_spot.html

  • Smorgas_Of_Borg Oct 27, 2008

    Just curious, WRAL: Is that a picture of a gas flame, or is it a cropped and rotated NASA photo of the planet Neptune and it's Great Blue Spot?

    Look at the photos yourself:

    http://tinyurl.com/5hd8p9

  • IHave1-2 Oct 27, 2008

    "...7 percent rate reduction for residential customers of PSNC Energy...Plummeting energy costs prompted PSNC to propose the rate cut. The utility also dropped rates 14 percent at the beginning of the month..."

    I'm okay with 21% drop/cut. I'll take what I can get nowadays.

  • bs101fly Oct 27, 2008

    didn't they JUST say they were going to gouge us again this winter? DIDN'T THEY!
    they must know it's going to be another average 70 degree winter!
    at 'a boy Greg Fishel!

  • CrewMax Oct 27, 2008

    "...If the price of natural gas coming out of the gulf coast that they have to buy (Exxon, Texaco, etc.) goes up, they simply pass it on to us, the consumers, dollar for dollar w/o one penny of profit on that cost of gas."

    Much like coporations do with taxes. Just pass them on to consumers.

  • xxxxxxxxxxxxx Oct 27, 2008

    "Seems several of you folks don't understand that the equal payment plan offered by utilities (the actual amount you pay each month) is adjusted ONCE ANNUALLY."

    Sorry, but I've seen my "equal payment plan" get adjusted UP mid-year when it suited them, but it only comes DOWN annually, if ever.

  • s.wake.co Oct 27, 2008

    SomeRandomGuy - The rates charged by regulated utilities is governed by NC Utilities Law, Chapter 62, and requires Utilities Commission approval any time they change their rates up or down.

  • s.wake.co Oct 27, 2008

    Seems several of you folks don't understand that the equal payment plan offered by utilities (the actual amount you pay each month) is adjusted ONCE ANNUALLY.

    You also don't understand that utilities like PSNC are allowed, by NC law, to adjust their rates from month to month depending on what it cost them for the product (natural gas) they sell to you. If the price of natural gas coming out of the gulf coast that they have to buy (Exxon, Texaco, etc.) goes up, they simply pass it on to us, the consumers, dollar for dollar w/o one penny of profit on that cost of gas. Their profit is determined by the Utilities Commission in the form of a fair rate of return on their investment in utility property in the state. That return has to be fair to the consumers, by law, and fair to the utilities investors.

  • zacharycook Oct 27, 2008

    Yea but never mind a few months ago they approved a 18% rate increase. They should have decreases it by atleast 18%. But of course they won't.

  • SomeRandomGuy Oct 27, 2008

    I gotta ask (just like last time)-why do they need to get approval for a rate CUT???

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