PSNC Energy Increases "Cost of Gas" Component of Rates
The North Carolina Utilities Commission approved PSNC Energy's request to increase the "cost of gas" component of its rates (read news release). On July 1, 2007 the residential rate went from $1.18 to $1.31. This increase translates to a monthly increase of approximately $2.50 based on a customer's average natural gas use of 20 therms per month during the summer.
It's been more than 18 months since we had to raise its "cost of gas" component - since late 2005 following Hurricane Katrina. In fact, we were able to lower our "cost of gas" this past January, but natural gas wholesale prices have gone up since then, and we've reached a point where we have to adjust for those higher costs.
Remember, PSNC Energy does not earn a profit on the "cost of gas" component of its natural gas rates. The adjustment is passed directly to customers in accordance with state regulations so that the company can recover its costs associated with purchasing the fuel.
PSNC Energy Residential Customers Pay Same Rate
As of June 1, 2007, all PSNC Energy residential customers are paying the same per therm cost (see current residential service rate) for natural gas service. That's because the North Carolina Utilities Commission approved our request to charge all residential customers the lower value rate.
This is a temporary change. The Commission also ordered PSNC Energy to establish a new residential rate structure by November 1, 2007 (read the news release). We'll continue to keep you updated on this matter.