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.

Duke Energy's residential customers will pay nearly 5 percent more for electricity, beginning next month, to account for high fuel costs, the Charlotte Observer reports.

The N.C. Utilities Commission, which approved the increase today, allows electric utilities to adjust customer charges once a year to reflect fuel costs.

Duke spokeswoman Paige Sheehan said high coal prices and volatility, driven by worldwide demand, have driven up those adjustments for the past two years. A record-hot June 2008, leading to more fuel use, also drove up this year's adjustment.

The commission today approved a 4.8 percent increase in residential bills, pushing the average charge up $4.14 to $90.42 a month.

Charlotte-based Duke has more than 160,000 customers in the western Triangle. Read the full Charlotte Observer story here.