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040 <br />LEE COUNTY <br />Committed Today for a Better Tomorrow <br />RESOLUTION OF THE LEE COUNTY <br />BOARD OF COMMISSIONERS <br />OPPOSING VARIOUS ELECTRICITY RATE INCREASES <br />FROM PROGRESS ENERGY <br />WHEREAS, Lee County recognizes the importance of an adequate and reliable supply of electricity <br />at the lowest reasonable cost; and <br />WHEREAS, on October 30, 2012, Progress Energy notified Lee County of its application to the N.C. <br />Utilities Commission for a general rate increase to be effective November 11, 2012; and <br />WHEREAS, the North Carolina Utilities Commission has delayed the rate increase for 270 days and <br />called for a Public Hearing on the proposed rate increases; and <br />WHEREAS, as stated in the filing, the average North Carolina residential bill -- for 1,000 kilowatt - <br />hours of electricity -- would increase approximately 14.3 percent, NC small general <br />service rates would increase by approximately 11.6 percent; NC Medium General <br />Service bills would go up approximately 9.9 percent; NC Large General Service would <br />go up approximately 5.9 percent and outdoor lighting rates would increase by <br />approximately 4.3 percent; and <br />WHEREAS, Progress Energy acknowledges that seeking a rate increase during extraordinarily <br />difficult economic times could pose hardship to its customers; and <br />WHEREAS, despite Progress Energy's proposal to decrease it's desired return on equity from 12.3% <br />to 11.5% to mitigate the impact of a rate increase on customers, the proposed rate <br />increases are substantial and ill- timed; and <br />WHEREAS, the recent merger of Duke Energy and Progress Energy was to create operational <br />efficiencies for the combined company that should have provided financial benefits to all <br />citizens of the State, instead of the expected future price increases that were stated in <br />their release; and <br />WHEREAS, the North Carolina Utilities Commission continues to investigate the issues involved in the <br />merger of the two companies. <br />NOW THEREFORE, BE IT RESOLVED BY THE LEE COUNTY BOARD OF COMMISSIONERS that: <br />Section 1. The North Carolina Utilities Commission is urged to reduce Progress Energy's <br />rate increase request to the lowest amount reasonable under applicable law, and <br />rate increases should be spread out over time to minimize customer impact. <br />Section 2. The North Carolina Utilities Commission should continue to investigate the <br />circumstances surrounding the merger of the two companies and this request of <br />