NC tax law changes to raise power bills in July

Posted by John Murawski on June 13, 2014 

This post has been updated to clarify that the sales tax in question is an increase on electricity sales.

North Carolina residents will see increases on their utility bills in July as a result of state tax law changes passed last year by the North Carolina legislature.

A typical Duke Energy Progress power bill will increase by 53 cents next month and it will go up by a total of 70 cents as of July 1, 2015. A typical bill for 1,000 kilowatt hours a month, including sales tax, is currently $113.62.

The Raleigh-based utility was formerly called Progress Energy until it was bought by Charlotte-based Duke Energy two years ago. The rates of the two utilities were not combined when they were merged.

A typical Duke Energy electricity bill will go up 43 cents next month and it will increase by a total of 73 cents as of July 1, 2015. A typical monthly bill is currently $113.91. In the Triangle Duke serves Durham and Chapel Hill while Progress serves Raleigh and other parts of the Triangle.

The reason for the change is that the sales tax that utilities pay is going from 3 percent to 7 percent.

Customers of PSNC Energy, the Triangle’s natural gas utility, will also see increases.

A typical summer bill of 15 therms of gas will go up 3.94 percent, from $24.67 to $25.64.

A typical winter bill of 100 therms of gas will go up 2.61 percent, from $114.62 to $117.62.

The N.C. Utilities Commission approved the billing changes last month. The changes were required because utility bills collect taxes for the state or include corporate taxes as an embedded cost of providing service.

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