Jul 23 - Herald; Rock Hill, S.C.


Duke Energy plans to seek permission to increase its rates for electrical power, a move that will affect more than 70,000 customers in York, Chester and Lancaster counties.

"We will appear before the Public Service Commission and ask them to file a rate case," Duke Energy district manager Richard Jiran said.

He expects the request will be made this summer but said the approval process will take until the end of the year.

Jiran could not say how much customers' bills would increase if the rate request gains approval.

"The Public Service Commission is the authority that will determine if we get a rate increase and, if we do, how much it will be," he said.

If approved, rates will change for about 71,000 tri-county customers, including 30,202 in York County. Duke Energy also provides electricity for 13,944 customers in Chester County and 26,937 customers in Lancaster County, Jiran said.

Jiran said that this "is a challenging time to ask customers to pay more for electricity, but we're mandated to provide high- quality and reliable power so it's essential for us to raise base rates now."

"Although customers may not be happy, I hope that they can appreciate the fact that we have managed to go 18 years without asking for a rate change," he said.

The last Duke Energy request for a rate change in South Carolina was in 1991, Jiran said. At that time, a $100 electric bill increased to a $103 bill, reflecting a 3 percent increase.

If the latest rate request is granted, the rate change could potentially begin in early 2010, he said.

On May 29, Duke Energy gave the commission a letter expressing its intent to file for an increase, Jiran said. The request for a rate increase is with merit, he said.

"Since 2006, we have invested more than $4.8 billion in our power system that serves our customers," Jiran said. "We recover those investments by adjusting our base rates."

Investments include outfitting Plant Allen in Belmont, N.C., with pollution controllers, an expense of about $500 million and purchasing Saluda's interest in the Catawba Nuclear Station for $150 million.

Duke Energy also is building the Cliffside Plant in Rutherford County in North Carolina for about $1 billion. That plant is slated to open in 2012 and will serve customers in both Carolinas, he said.

The company also initiated a project -- the Marshall Selective Catalytic Reduction -- geared to reducing emissions for about $100 million, Jiran said.

"If you look over the last 18 years, practically the price of everything has gone up," he said. "I think we've done an outstanding job managing our cost over the years."

He said customers should not expect to see the Public Service Commission rendering its decision soon. "We aren't talking weeks," Jiran said. "This will take until the end of this year."

During that time the commission will study the request and will set dates for public hearings to seek public input.

Originally published by Toya Graham; Fort Mill Times.

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