Progress Energy seeks 16 pct rate hike in NC

The proposed $424 million rate hike requested by subsidiary Progress Energy Carolinas would take effect Dec. 1. It would also help pay for energy-efficiency and renewable-energy portfolio standards ordered by the General Assembly last year.

The change, which must be approved by the state Utilities Commission, would boost a monthly residential bill of $96.86 a month to $112.57, the Raleigh-based company said. Commercial and industrial customers in North Carolina would see a rate increase of at least 13.6 percent.

The price of coal, which Progress uses to generate about half its electricity in the Carolinas, has soared in recent months. Prices for natural gas and fuel oil, which account for about 5 percent of output, have also risen drastically.

"Any price increase has an impact on our customers, and we are very sensitive to that fact," Progress Energy Carolinas chief executive Lloyd Yates said in statement. "Rising fuel prices are a new energy reality, and we will continue to work to meet the challenges of a growing service area reliably, affordably and in an environmentally sound manner."

Progress Energy Carolinas said it doesn't make a profit from the fuel cost component of the rates. The company files annually to recover fuel costs. This year's filing reflects anticipated future costs given continued higher prices.

The utility, with 1.25 million customers in North Carolina, made a similar fuel expense filing in South Carolina in April.