The settlement agreement will be submitted to the North Carolina Utilities Commission (NCUC) during a public hearing scheduled for August 26, 2008. If approved by the NCUC, the settlement agreement would become effective on November 1, 2008.
The settlement agreement provides for an increase in PSNC Energy’s annual natural gas margin revenues of approximately $9.1 million, or 1.32%, which is about 45% of the $20.4 million, or 2.99%, increase initially requested by the company. The settlement agreement also includes a reduction in PSNC Energy’s fixed gas costs, which represents a pass-through for the company, of approximately $8.4 million.
This results in a net annual increase in rates and charges to customers of approximately $0.7 million or 0.11%. The settlement agreement establishes an allowed return on common equity of 10.6%.
Rusty Harris, PSNC Energy’s president and COO, said: While we were prepared to demonstrate our need for the full amount of our initial request, we believe we can operate our system reliably and efficiently based upon this increase in our base rates. Its always in the best interest of all involved to reach a settlement agreement, and we hope the commission will approve the stipulation as submitted.
