PSNC Receives Approval to Amend Gas Rate Plan
Posted May 22, 2007 9:59 p.m. EDT
Raleigh, N.C. — PSNC Energy has received approval from 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 company is now allowed to move all of its standard rate customers to it lower value rate, which is approximately $1.18 per therm, 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. Effective June 1, all 400,000 residential customers will pay the same rate.