Public Hearings On Duke Energy Rate Hike Begin Tonight

Duke Energy has asked the North Carolina Public Utilities Commission for an average 15 percent rate hike. The commission will hold six public hearings across the state over the next two months. The first one is in Charlotte tonight. Duke Energy wants to raise rates 14 percent for businesses and 17 percent for residential customers. That would add about $19 to an average home's electricity bill. Bill Gupton with Consumers Against Rake Hikes says Duke doesn't need the extra money after solid earnings and recent rate increases. "Last year they started an 8 percent rate hike. In September they increased the fuel adjustment charge by 5 percent and now they're asking for a 17 percent residential rate hike increase," says Gupton. "We think this really is excessive and will negatively impact the North Carolina economy." Duke Energy spokesman Jason Walls says most of the increase would go toward paying off upgrades to power plants like the new coal-fired unit at the Cliffside plant and improvements to the utility's distribution system. "We've reached a point when many of the power plants we've relied on for decades are aging and they need to be retired and replaced," says Walls. As part of Duke's rate request, the utility is also seeking an 11.5 percent return on equity, which is a way to measure shareholder profits. Right now Duke is allowed a 10.7 percent return. Duke is also awaiting approval of its merger with Progress Energy. Federal regulators worry it would reduce competition in the Carolinas. The companies are now trying to address those concerns. The rate increase hearing begins at 7:00 tonight at the government center in uptown Charlotte.