Recent Examples of Rate Increases in Vertically Integrated States
Recent Examples of Rate Increases in Vertically Integrated States
THE SOUTH
Consumers in the Tennessee Valley Authority’s seven-state service territory will pay 20 percent more for electricity starting this October. That translates into a $12 to $15 increase per 1,000 kilowatt-hours of electricity per month. The rate hike was factored into TVA's 2009 budget, which includes $12.6 billion to cover operating expenses and nearly $2.1 billion for new capital investments.
ALABAMA
A typical customer of Alabama Power Company will pay almost $200 a year more, or about $16 per month, for electricity under a rate hike of 14.6 percent, starting October 9th pending approval by the state Public Utility Commission. Electricity costs would also rise about 16 percent for commercial users and an average of 25 percent for industrial customers, if the entire request is approved.
COLORADO
For the average customer in Denver, Colorado, Xcel Energy’s electric bills have increased by nearly 28 percent since February of this year. The rise was due to increases in what Xcel pays for materials, such as coal and gas.
FLORIDA
If approved by Florida regulators, Progress Energy Florida’s customers could face a stunning 31 percent increase in their electric bills next year. Progress is the state’s second largest power company. Meanwhile, Florida Power & Light customers are being hit with a 16 percent electricity rate hike. If approved, the increase will add close to $20 per month to the average residential customer’s bill.
Effective July 1, Lakeland Electric, the third largest muni in Florida, hiked its rates by 14 percent. The new rate will mean $11.57 added to the customer’s monthly bill. According to Lakeland Electric’s research, the Jacksonville utility has raised it fuel rate by 37 percent, the Orlando utility by 34 percent, Florida Light & Power by 31 percent, Progress Energy by 20 percent and the Gainesville utility by 10 percent. Of those increase, only Gainesville’s increased is effective in July, the others are staggered between July and October of this year.
GEORGIA
Residential customers of Georgia Power will pay an additional $2.93 a month because of a deal between the company and the state. The Georgia Public Service Commission voted 3-2 to allow Georgia Power to recoup $222 million from residential customers to pay for rising fuel costs. Approval of the year long charge came after the initially proposed surcharge was partially shifted away from industrial consumers and onto residential consumers. A decision will be made next year on whether to establish seasonally adjusted fuel cost rates.
KANSAS
Westar Energy is seeking a rate hike of 15 percent on residential customers in both its north and south regions. The average residential customer would see a monthly increase of $9.62 in Westar’s northern region and a $10.34 hike in its southern region. Westar filed with the Kansas Corporation Commission to request an increase in its rates to recover the cost of investments made in new natural gas plants and equipment to meet customers growing energy needs as well as recovering costs of restoring its system following last December’s ice storm.
MISSOURI
Consumers of Cuba, Missouri’s Sho-Me Power will pay almost 28 percent more this year for electricity. Sho-Me Power received an increase of 25.3 percent from its supplier, Associated Electric Cooperative, and passed the rate increase, with a little extra for good measure, on to its consumers.
NORTH CAROLINA
Dominion North Carolina Power plans to increase customer rates by an average of 17.7 percent, effective January 1, 2009 if approved. For a typical customer using 1,000 kilowatt-hours of electricity a month, the bill would increase $16.04 per month.
Residential customers of Progress Energy may see their bills jump from about $97 to nearly $113 per month – a 16 percent increase. If the North Carolina Utilities Commission approves the request, the rate increase will go into effect on December 1. Progress is seeking to cover the cost of fuel needed to run its plants saying that most of the increase is caused by rising coal prices. Progress uses coal to generate about half of its electricity in the Carolinas. The price of coal has risen 160 percent this year.
Duke Energy filed a rate increase request with state regulators. If approved by the North Carolina Utilities Commission, the average monthly bill of a North Carolina customer would increase $3.00. The Charlotte-based company also plans to ask for an increase in South Carolina of up to 10 percent, or about $8.00 per month. The North Carolina hike would take effect in September and the South Carolina in October.
OKLAHOMA
Base rates for state-owned Grand River Dam Authority will rise 11.95 percent on January 1, 2010 barring a sharp increase in economic activity. The rise is needed to service debt, officials of the utility say.
SOUTH CAROLINA
Progress Energy Carolinas asked the South Carolina Public Service Commission to increase rates paid by their customers by about 6 percent. The company is seeking recovery of the cost to reduce fossil-fueled plant emissions as well as the cost of emission allowances. For a residential customer using 1,000 kilowatt-hours of electricity a month, the total increase, if approved, would be about $6.00, rising to about $102.20 from the current $96.33. In addition, Progress is asking the S.C. PSC to approve a $39 million increase in the fuel component of its rates to recoup fuel costs and to meet future fuel costs. Increased fuel costs represent about $5.00 and the other $1.00 increase on a 1,000 kWh residential bill is to recover the cost of emission allowances. If approved by the Commission, the average increase would be about 7.2 percent for commercial customers and 9.4 percent for industrial customers, effective July 1.
Duke Energy filed a rate increase request with state regulators. The Charlotte-based company plans to ask for an increase in South Carolina of up to 10 percent, or about $8.00 per month. The hike would take effect in October.
