Resolution - Opposing Electricity Rate Increases - #2012-36

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