Power bills to jolt some in Triangle

Some Triangle residents this month started getting hit with hefty electricity bill increases that will soon become the new energy reality for all.

Apex and Wake Forest raised residential electricity rates about 12 percent this month, among the first cities to pass on the surging cost of coal and other fuels needed to generate electricity at power plants. Clayton approved a 9.4 percent increase effective Sept. 1, and other cities will soon follow.

Those towns are among the 32 communities that buy their power from N.C. Eastern Municipal Power Agency. The power agency this month started charging the towns 14 percent more for electricity. Each town's council or utility authority decides how much of that increase to pass on to its residents.

The regional power agency obtains virtually all its power from Progress Energy power plants. Raleigh-based Progress, which serves 1.25 million North Carolina customers who aren't served by municipal utilities, has already asked state regulators for a 16.2 percent residential increase, mostly to cover rising fuel costs, effective Dec. 1.

That increase, the highest in at least a quarter-century, is so dramatic that the N.C. Utilities Commission will likely phase it in over several years to reduce what regulators call "rate shock" to customers.

But many member communities of the N.C. Eastern Municipal Power Agency are passing on the cost increases now. The communities typically charge its residents more than Progress charges, which means that customers served by the power agency will see the biggest utility bill increases in the state. As a result, residents in some towns are irate at the power agency.

"Everyone wants to believe there's something devious going on," said Ken Raber, director of operations for the N.C. Eastern Municipal Power Agency. "Customers are getting hit from all sides."

No more cheap energy

Energy experts have warned that the era of cheap energy is coming to an end amid rising global demand for coal and other energy sources. North Carolina, long accustomed to some of the cheapest electricity rates in the nation, has managed to escape the cost run-ups that have increased electricity costs in the West Coast and Northeast.

Electricity is just one of many costs that will strain household budgets this year. PSNC Natural Gas, the Triangle's gas utility, has increased residential rates about 33 percent this year. Gasoline costs have hit records this summer. Rising energy costs drive up the cost of running businesses and in turn inflate the cost of goods and services, further eroding family finances.

"We're dealing right now with an incredibly difficult time," Raber said.

Most customers haven't felt the sting yet because the rate changes are recent and won't show up until the next bill arrives. Many community power agencies are warning their customers in mailers about the looming cost increase.

Among other electricity providers considering increases is the N.C. Electric Cooperatives, which serves 850,000 customers through 26 co-ops. The agency includes customers in parts of Wake Forest, Hillsborough and Sanford.

Spokeswoman Jane Pritchard said the increase has not been decided but likely will exceed 10 percent.