Electricity prices for more than 83,000 homes and businesses in Cumberland County could go upon Sept. 1 as the Fayetteville Public Works Commission seeks to increase revenue to cover rising costs from Duke Energy.
The PWC estimates the average residential customer would pay an additional $2.15 per month. The increase follows a 2% rate increase that took effect May 1.
Residents can give feedback on the proposed price increase during a public hearing on Aug. 13. They can also submit written comments.
The PWC, Fayetteville’s city-owned electric, water and sewer utility, is led by a four-person commission appointed by the City Council. The PWC buys most of its power from Duke Energy to resell to its customers.
Duke’s higher rates boost PWC price
The price hike would generate $10.6 million and would be an increase to a surcharge called the Power Supply Adjustment that the PWC sets annually. The Power Supply Adjustment surcharge is intended to make up the difference between what the PWC budgets and what it actually spends to buy electricity from Duke Energy.
The PWC says that from January to May of this year, Duke Energy’s wholesale electricity rates for the PWC (which fluctuate frequently based on overall demand) were 18% more than what the PWC anticipated.
The current surcharge has been in place since Sept. 1 and expires at the end of August. It is 0.327 cents per kilowatt hour. The new surcharge would be 0.541 cents per kilowatt hour and would be in place for a year.
Customers using 1,000 kilowatt hours in a month currently pay $3.27 for the Power Supply Adjustment. Under the proposed increase, they would pay $5.41.
Last year, the surcharge dropped from 0.635 cents ($6.35 on 1,000 kilowatt hours) to 0.327 cents.
The PWC has said that if its electricity purchases from Duke cost less than budgeted, the Power Service Adjustment would be applied as a credit to lower customers’ bills.
How to tell PWC what you think of the proposed increase
The PWC has invited members of the public to share what they think of the proposed price increase.
To submit comments, you can:
- Speak at the public hearing at 8:30 a.m. Aug. 13 in the board room of the PWC headquarters at 955 Old Wilmington Road, Fayetteville. Speakers need to register in advance in person before 8:30 a.m. or email their name and address to PWCBoard@FayPWC.com.
- Submit written comments (up to 300 words) no later than 5 p.m. Aug. 8 via an online form on the notice of public hearing webpage.
- Submit written comments (up to 300 words) no later than 5 p.m. Aug. 8 via email to PWCBoard@FayPWC.com. Include your name, address and phone number.
Senior reporter Paul Woolverton can be reached at pwoolverton@cityviewnc.com.
Did you find this story useful or interesting? It was made possible by donations from readers like you to the News Foundation of Greater Fayetteville, a 501(c)(3) charitable organization committed to an informed democracy in Fayetteville and Cumberland County.
Please consider making a tax-deductible donation so CityView can bring you more news and information like this.
