Power Costs To Increase Rates
Increased costs from Duke Energy have resulted in a rate increase adopted by PWC on Wednesday morning. The PWC Board adopted new electric rates for the next two years to cover the Duke increases.
“Most of what a customer pays PWC for electricity, goes directly to our power supply costs,” said PWC Chairman Wade Fowler. “Ninety percent of the increase adopted today goes directly to our power supply costs from Duke and those costs are projected to increase nearly $10 million in the next four years.”
PWC also added a Coal Ash fee to fund PWC’s required portion of Duke Energy’s Coal Ash cleanup. The Federal Energy Regulatory Commission allows Duke to recover their cost from customers and PWC’s portion of the $2 Billion cleanup is estimated to be $60-$70 million.
PWC is using reserve accounts to pay most of the money needed and the $2 fee charges for PWC residential customers will be collected through 2024. Without the reserves, the Coal Ash fee would be $10.
Other expenses funded through the rate increase will be used to maintain and improve the reliability and efficiency of the electric system which includes the replacement and upgrading of infrastructure such as substations, utility poles, underground cable, transformers and controls.
PWC maintains among the highest reliability rate among electricity providers in North Carolina and maintains the highest designation of reliability among over 2,000 municipally owned electric providers in the United States.
“PWC strives to provide safe and reliable services and maintain reasonable, competitive rates, “ said David Trego, PWC CEO/General Manager. “Our electric rates remain among the lowest, in fact, next to the lowest, only to Duke Energy in Fayetteville/Cumberland County. When PWC customers compare their bills to other electric providers, customers that also have water and/or sewer service from PWC, should compare the only the electric portion of their bill to those of other electric providers in our area including Duke Energy, Lumbee River and South River who do not provide water or sewer service to their customers.”