Fayetteville PWC could increase rates in May. Here's what customers need to know.
The Fayetteville Public Works Commission will hold a public hearing next week about whether it will again increase electric fees, an announcement on the utility provider’s website states.
The meeting is scheduled for 8:30 a.m. Feb. 28 in the PWC Board Room, 955 Old Wilmington Road in Fayetteville.
According to the announcement, the provider is proposing increasing fees by $2.39 per 1,000 kilowatt hour in May, with another increase of $2.38 per kWh in May 2025.
Fayetteville PWC’s current rate for residential customers is $0.13845 per kWh during on-peak hours and $0.09024 per kWh during off-peak hours.
With the proposed change, the on-peak rate for residential customers would change to $0.14042 per kWh, and the off-peak cost would be $0.09152 per kWh.
On-peak hours are 3 p.m. to 7 p.m. April through October and 6 a.m. to 10 a.m. November through March.
If approved, the proposed rate would be applied to bills on or after May 1.
Reasons for the adjustments
“Utility rates are driven by cost of supplying safe, reliable utility services,” the announcement stated. “Inflation, Supply Chain, Capital Investments, required reserves are current key factors that are driving need for rate increases.”
The announcement states that Fayetteville PWC reduced its electric rates by 4.7% in 2020, but increased costs require the adjustments and will bring the rates back to where they were before the 2020 decrease.
Customers saw a rate increase in August, after the PWC board approved a rate increase last February.
The announcement states that buying power from wholesale provider Duke Energy Progress is also a driver of rates and that other electric providers are impacted by the same rising costs.
“With the proposed increases, PWC still remains among the lowest compared to our neighboring electric providers, the announcement stated.
A PWC rate comparison chart shows that as of May 2023, residents using 1,000 per kWh currently pay an average of $119.23 per month compared to Lumbee River EMC’s average of $123 a month, South River EMC’s average of $124.30 and Duke Energy Progress’ average of $142.03.
The announcement states that the changed fees would replace:
• Aging substations and transformers.
• High voltage wooden transmission poles with steel poles that strengthens the grid against storm damage and extends the life of the poles.
• Aging underground electric cable and devices, to avoid lengthy outages caused when underground wires/systems fail.
• Add new solar generation resources that allow PWC to gain the highest value from its Duke Energy Progress contract and provide additional renewable energy to PWC’s customers.
What else will change
The announcement states that “while these increases are anticipated,” a $6.35 per 1,000 kWh fee that went into effect in August 2023 would end this August.
A coal ash charge of $2 is also expected to end by May 2025.
How residents can provide input
Residents who want to speak at next week’s public hearing about electric, water and wastewater fees and surcharges will be allowed three minutes to speak and must register in advance with the PWC clerk.
They can register either in person at the PWC Administrative Offices during business hours from 8 a.m. to 5 p.m. during the week; email pwcboard@faypwc.com and providing their name and address; or register immediately before next week’s meeting starting at 8 a.m.
Written comments may also be submitted by 5 p.m. Friday by mailing a letter to PWC Clerk to the Board, P.O. Box 1089, Fayetteville, NC 28302 or email pwcboard@faypwc.com.
They must not exceed 300 words and must include a name, mailing address and phone number.
This article originally appeared on The Fayetteville Observer: Is Fayetteville PWC increasing rates this year?
