Duke Energy rate hearing: Attorney General says power bills take big bite in NC

Duke Energy N.C. President Paul Newton says Duke has done what it can to reduce the impact of its latest rate-hike proposal.

The N.C. Attorney General's office took aim at Duke Energy Carolinas' claim of low rates here, introducing evidence in a rate hearing Monday that indicates N.C. power bills take a bigger bite of customers' disposable income than is true in 43 other states.

Duke N.C. President Paul Newton testified that Duke's rates are well below the national average, and would remain so even if the proposed 5.1% rate hike goes into effect.

It is a claim Duke makes often, and accurately. But Assistant Attorney General Peggy Force challenged whether that is truly a meaningful statistic when she cross-examined Newton before the N.C. Utilities Commission today.

She introduced a national study that calculates how much of the disposable income of residents in each state goes to paying power bills. The study says the power bills consume 4.4% of the disposable income of N.C. residents. That this the seventh-highest in the nation.

Residential customers will face the largest rate hike under a compromise rate increase Duke agreed to with the state's utility customer advocate, the Public Staff of the N.C. Utilities Commission. Typical residential customers would see their average bill go up to $108.88 from the current $102.72.

Commercial customers would see their rates increase 4.4%. Industrial customers' rates would go up 4.9% to 5.3%.

The N.C. Attorney General's office is opposing the proposed rate increase, contending it does not make sense to raise rates on customers during economic hard times.

Newton testified that Duke understands rate increases are difficult, but he said the company has done all it can to mitigate the increase. He also noted Duke Energy Progress, which has separate rates in North Carolina, has higher rates than Duke Carolinas and might account for the disposable-income ranking.

John Downey covers the energy industry and public companies for the Charlotte Business Journal.

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