A small bright spot for strapped consumers: Progress Energy plans a bigger rate reduction than originally proposed to account for declining fuel costs.
The Raleigh utility in June announced plans to cut rates about 10 cents a month for the average household starting Dec. 1. But after gathering additional cost information, Progress today filed to reduce rates an additional 24 cents a month.
The net savings, if approved by the N.C. Utilities Commission, would be $4.08 a year. The average monthly bill would drop to $106.44, down from $106.78 now.
Electric utilities are allowed to pass along the cost of coal and other fuel, and adjust them annually. Fuel costs have surged in the past five years, but have fallen recently as recession weakens global demand.