State OKs rate cut for PSNC gas customers
Posted October 27, 2008 12:22 p.m. EDT
Updated October 27, 2008 3:51 p.m. EDT
Raleigh, N.C. — 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.