Local News

Natural gas companies propose rate reductions

Posted September 18, 2008 6:23 a.m. EDT
Updated September 18, 2008 12:24 p.m. EDT

— North Carolina's two largest natural gas companies are proposing significant rate reductions for the fall.

PSNC Energy is proposing a residential rate cut of about 14 percent. Piedmont Natural Gas has proposed a reduction of about 16 percent for residential users.

The News & Observer of Raleigh reported the typical homeowner would save about $24 a month. The reductions would take effect Oct. 1 if they are approved by the North Carolina Utilities Commission.

In May and June, PSNC sought – and got – approval for two rate hikes, amounting to a 31 percent increase – or about $40 extra on the average bill during the winter months. At the time, PSNC said the raises were necessary to pass the rising cost of natural gas onto costumers.

Natural gas companies can ask the commission to adjust rates monthly.

PSNC and Piedmont Natural Gas serve nearly 1.2 million customers in North Carolina.