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Gaynell Lee <br />From: Gaynell Lee <br />Sent: Tuesday, October 23, 2012 11:02 AM <br />To: Gaynell Lee <br />Subject: FW: Progress Energy Carolinas files for rate increase in North Carolina <br />From: Buterbaugh, Quinetta [ mailto :Ouinetta.Buterbaugh@[)Qnmail com On Behalf Of McNeill, David <br />Sent: Friday, October 12, 2012 4:52 PM <br />Subject: Progress Energy Carolinas files for rate increase in North Carolina <br />I just wanted to make you aware that today Progress Energy Carolinas filed a request with the N.C. <br />Utilities Commission to increase annual base revenues by approximately $387 million. A <br />corresponding change in the portion of retail rates that pays for energy- efficiency and demand -side <br />management programs would reduce the revenue request to $359 million per year, or an average <br />increase of approximately 11 percent for customers. <br />The proposed rate increase reflects an investment of around $2.3 billion for plant modernization and <br />other capital additions, including the facilities used to produce and deliver electricity to 1.3 million <br />households and businesses in North Carolina. <br />We are retiring our older, less- efficient coal plants that do not have the state -of- the -art emissions <br />control technologies, and replacing them with cleaner, natural gas - fueled plants. Progress Energy <br />Carolinas has invested more than $1.3 billion dollars to complete natural gas - fueled units at the Smith <br />Energy Complex and in Wayne County, with an additional unit under construction at our Sutton Plant. <br />We are also making important investments in our nuclear fleet to enhance the multiple layers of <br />safety, security and operational protection in place at our plants in North Carolina. <br />Approximately 84 percent of the requested rate increase reflects these investments made to <br />modernize our system, as well as the costs associated with ensuring safe, reliable and increasingly <br />clean electric service today, and for generations to come. <br />The following chart illustratPS the nrnnncari nat rata inrroaccc by ri ictn mor 4vno' <br />M L! "F •h <br />�1 4 V <br />'::1I <br />Q <br />t�^y'�^'�+f • <br />.. <br />Weer <br />i rY�Xy F <br />.. 1 . i ce, . <br />Residential <br />14.3 percent <br />N.C. <br />Small General Service <br />11.6 percent <br />N.C. <br />Medium General Service <br />9.9 percent <br />N.C. <br />Large General Service <br />5.9 percent <br />Lighting I <br />4.3 percent <br />• •••� •....•. - ••..••...•.....=•,. rr „ , ,nc p,upuweu enunges Jor eacn cusromer Class. the specific Increase or decrease for individual customers <br />will vary depending on the rate they pay and other factors. <br />It is important to note that if the rate increase is approved, the company's rates would remain below <br />the national average. <br />It has been 25 years since Progress Energy Carolinas last filed for a base rate increase. <br />We know there is never a good time to seek a rate increase, and we have worked hard to maintain <br />rate stability while providing excellent service to our customers. <br />We are focused on managing our business and keeping rates as low as possible. And the recent <br />merger between Progress Energy and Duke Energy, while not a driver in the decision to file a rate <br />I <br />