PSNC got rate boost, asks for another

PSNC Energy is seeking a rate increase of 15 percent, just one month after raising rates 16 percent.

The combined increases would add about $40 a month to a typical family's bill in the winter. About 40 percent of Triangle residents heat with natural gas.

PSNC, the Triangle's natural gas utility, made the rate request Friday to the N.C. Utilities Commission. If approved, the change would go into effect July 1.

"It's staggering," said Bill Gilmore, natural gas analyst for the Utilities Commission. "We've never seen anything like this in the summer. These prices are out of control."

Tuesday's rate request would add $3.64 a month to a home's bill during the summer and $21.38 a month in winter. PSNC rates differ seasonally.

PSNC is seeking the increase to cover the rising cost of natural gas. Fuel prices are hitting records for crude oil and gasoline. Wholesale natural gas prices have climbed more than 70 percent in the past year and show no sign of abating. The rapid run-up is attributed to increased demand, speculative investing and market manipulation by hedge funds.

State law allows a utility to pass along its fuel costs to customers, but it cannot make a profit on fuel purchases, said Jeff Davis, the natural gas director for the Public Staff, the state consumer protection agency. Natural gas utilities can request rate changes once a month to cover fuel costs.

If the request is approved, PSNC's summer rate would go to $1.72 a therm from $1.50 a therm. A therm is a unit of heat used to measure natural gas.

The winter rate would be $1.77 a therm, an all-time high.