NC Electric Rates are Higher… Why?

An article in the News and Record piqued some interest.

Electricity rates in North Carolina increased 8.5% a couple of months ago. They will go up two more times over the next two years.

Why did these rates increase? We are told it is because of all the work performed by electric utilities hardening the electric grid to make it more reliable.

What was not responsible?

First, overall cost inflation is not blamed even though it has been nearly 20 percent over the last couple of years.

Second, the green energy agenda is not blamed even though power companies have been pushed to retire coal and gas plants– cheaper sources of energy– and adopt green replacements such as solar and wind.

Somehow, the article doesn’t ring true. How do we know when we are being told the truth?

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4 thoughts on “NC Electric Rates are Higher… Why?

  1. Why argue the Utilities Commission gave Duke the green light to increase rates.

    While I lived in Greensboro I was on a budget billing plan with Duke Energy. Things worked out fine.

    So look at what factors affect the cost of delivering one kilowatt .

    The cost to supply electricity changes minute by minute. However, most consumers pay rates based on the seasonal cost of electricity. Changes in prices generally reflect:

    1.Variations in electricity demand
    2.Availability of energy sources and fuels
    3.Fuel costs
    4.Power plant availability

    Flash back to 2008:

    “If somebody wants to build a coal-fired power plant, they can. It’s just that it will bankrupt them,” Obama said, responding to a question about his cap-and-trade plan. He later added, “Under my plan … electricity rates would necessarily skyrocket.”

    Of course, cap and trade is long dead. But coal-fired power plants are powering down nationwide, and they are blaming the Environmental Protection Agency.

    1. Thanks, Fred. Yes, the Utilities Commission controls rates and gave the green light. I would still like an honest, comprehensive analysis of what factors necessitated or justified this series of increases, and in what proportions. I think it will turn out to be different than hardening the grid, as you suggest.

      The poor, working class and lower middle class will be hurt by these increases.

  2. NC General Assembly mandated a graduating percentage of electricity be generated by “renewables” under Dems ~2007. The corrupted Republicans didn’t eliminate this as they should when they got in subsequently, but did cap it at 12.5%. That makes our electricity significantly more expensive than if Duke were permitted to use more efficient nat gas or nuclear.

    It is surprising how little known this is. Gobs of money was spent by the subsidized “renewables” producers to defeat true conservatives who talked about eliminating this mandate ~2015.

  3. Yes, Healey, thanks for the clarification. The renewables industry is a problem. It buys off politicians from both parties, and now we learn it targets those who call for eliminating mandates. Wow…

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