January 26, 2012

PWC Makes Electric Rate Adjustments
Impact of new power supply contract less than expected; some rates lowered

PWC has adopted new electric rate schedules that will result in lower rates for some customers.

Since 2010, PWC has been preparing for its new power supply contract with Progress Energy that begins July 1, 2012.  At that time, PWC anticipated a 40%+ increase in rates once the new contract began.  Rate adjustments have been phased in over the last two years to minimize the impact of the new agreement.  New projections now show the impact on customer rates will be less than originally expected. 

“We are extremely pleased that the anticipated rate increases this year are not necessary,” said Mike Lallier, PWC Chairman.  “Lower fuel costs and prior planning have created the opportunity for us to adopt a revenue neutral electric rate model for what appears to be the next two fiscal years.  This is great news that we can maintain our competitive electric rates that are among the lowest in our service area and the state.”

The Board action will not generate additional revenue but PWC will make adjustments in several rate classifications to ensure customers’ use aligns closer with the cost structure under the new contract. New rate schedules go into effect with bills mailed on or after May 1, 2012. 

With the adjustments, an average residential customer (1,200 kWh) will see a $.13 increase a month after May 1.  The new rate model ‘flattens’ rates or removes multiple tiered rates so some residential customers will see a reduction.  A residential customer using 2,000 kWh a month will pay $2.35 less.  Many nonresidential customers, depending on their classification will see a decrease or no change in their monthly cost.