To help Fayetteville and Cumberland County attract industry, the Fayetteville Public Works Commission is considering increasing the discount it offers to companies that build plants that consume a large amount of electricity.
The new discounted rate, called an economic development rider, would last for five years, just as the current discount does. It’s designed to attract a company to build or expand its facilities in or near Fayetteville and select the PWC as its electricity provider.
The current discount is 20.66% for the first year, and declines annually, reaching 4.13% in the fifth year. The discount terminates after the fifth year.
The new discount would be 23.76% off for the first year, and 4.75% in the fifth year. The public can offer comment on new discount at a public hearing on June 25.
The PWC, owned by the City of Fayetteville, provides electricity to Fayetteville and surrounding areas.
Electricity rates are important to companies when they decide where to build, said Robert Van Geons, the president and CEO of the Fayetteville Cumberland County Economic Development Corporation, in an email to CityView on Wednesday.
“For many of the industries considering Fayetteville and Cumberland County, the availability, cost and reliability of power is [the] deciding factor,” he said. “In some cases, electricity can be 50% or more of a company’s operating costs.
The new economic development rider would “truly make PWC electric rates more competitive,” PWC General Manager and CEO Tim Bryant told the PWC’s board at its May 28 meeting.
“Again, not just competitive locally amongst Duke Energy and these other local energy companies, but also nationally, to allow us to attract new and or expand other commercial industrial customers,” he said.
According to Bryant’s presentation, the employer would have to meet certain criteria to get the discount:
- It would need to be a new employer or an expanding employer.
- The new project would have to require at least 1 megawatt of power. An expansion of an existing facility would need to add add at least 750 kilowatts of usage. (The PWC’s power plant, which supplements Duke Energy’s supply, generates up to 265 megawatts. The PWC buys most of its power from Duke.)
- The employer would have to make a capital investment of at least $400,000 on its new project or expansion, or it would have to bring at least 75 full-time equivalent jobs.
Over two weeks in May, eight to 10 potential industrial customers that are considering the Fayetteville area inquired about the PWC’s electricity rates, Bryant said.
The public is invited to comment on the proposed discount at a public hearing at 8:30 a.m. June 25 at the PWC’s headquarters at 955 Old Wilmington Road in Fayetteville. Comments may also be emailed to PwcBoard@FayPWC.com. People should include their name, mailing address and phone number, and written comments should not exceed 300 words.
Senior reporter Paul Woolverton can be reached at pwoolverton@cityviewnc.com.
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