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NORTH CAROLINA PUBLIC STAFF - UTILITIES COMMISSION NATURAL GAS DIVISION
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Docket No. G-05, Sub 495
On October 24, 2008, the North Carolina Utilities Commission issued an Order allowing Public Service Company of North Carolina, Inc. (PSNC or the Company) to increase its rates and charges by approximately $9.1 million annually, offset by an $8.4 million reduction in fixed gas costs, for a net increase of approximately $700,000. The overall increase of 0.11% is effective November 1, 2008.
On March 31, 2008, Piedmont filed an application seeking a general increase in its rates and charges, approval of changes to its tariff and rate schedules, approval of a customer tracker mechanism applicable to its residential and commercial rate schedules, and approval of cost recovery mechanism for customer conservation programs.
In its application, the Company requested an increase of approximately $20.4 million annually. The Company stated that the increase was needed to recover costs related to expanding and operating its pipeline system and the need to earn a fair and reasonable return on its investment.
The increase approved by the Commission was the result of a stipulation (Stipulation) entered into between the Company and other parties to the proceeding, including the Public Staff – North Carolina Utilities Commission. The Commission noted that the increase to specific classes of customers will vary in order to have each customer class pay its fair share of the cost of providing service.
Overall, the Commission has approved a residential rate increase for the Company of 0.32%, although individual residential customers may experience larger or smaller percentage increases.
The Commission has approved a customer usage tracker mechanism, which will allow the Company to recover its approved margin independent of customer usage patterns. It will protect customers from the potential over-recovery of margin by the Company and will protect the Company from potential under-recovery of margin
The Commission has also approved the annual expenditure of $750,000 on conservation and directed the Company to file its initial program proposals for approval by the Commission within 45 days from the date of the Commission’s Order.
For more information, refer to Commission Website and search for the docket number shown above.
Docket No. G-09, Sub 550
On October 24, 2008, the North Carolina Utilities Commission issued an Order allowing Piedmont Natural Gas Company, Inc. (Piedmont or the Company) to increase its rates and charges by approximately $15.7 million annually, or 1.5% overall, effective November 1, 2008.
On March 31, 2008, Piedmont filed an application seeking a general increase in its rates and charges, approval of changes to its rate design, rate schedules and service regulations, permanent extension of its margin decoupling mechanism, approval of certain energy conservation and efficiency programs and recovery of associated costs, and approval of GTI research and development funding.
In its application, the Company requested an increase of approximately $40.5 million annually. The Company stated that the rate increase was needed because it has been adding customers and making capital improvements in its utility properties. The reasons cited by the Company in support of its request for a rate increase were to allow it to maintain its facilities and services in accordance with the reasonable requirements of its customers, to compete in the market for capital funds on fair and reasonable terms, and to produce a fair profit for its stockholders.
The increase approved by the Commission was the result of a stipulation (Stipulation) entered into between the Company and other parties to the proceeding, including the Public Staff – North Carolina Utilities Commission. The Commission noted that the increase to specific classes of customers will vary in order to have each customer class pay its fair share of the cost of providing service.
Overall, the Commission has approved a residential rate increase for the Company of 1.65%, although individual residential customers may experience larger or smaller percentage increases due to a change in the Company’s rate design and the elimination of the value/standard residential rate categories.
The Commission has approved the continuation, on a permanent basis, of Piedmont’s margin decoupling mechanism, which will allow the Company to recover its approved margin independent of customer usage patterns and will protect customers from the potential over-recovery of margin by the Company
The Commission has also approved the annual expenditure of $1.275 million on conservation and energy efficiency programs and directed the Company to file its initial program proposals for approval by the Commission within 45 days from the date of the Commission’s Order.
For more information, refer to Commission Website and search for the docket number shown above.
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