PSNC Energy, a wholly owned subsidiary of Scana, has filed an application with the North Carolina Utilities Commission requesting a general increase of approximately $20.4 million, or 2.99%, in annual revenue.
The rate increase request is the direct result of the company’s need to recover costs related to operating and expanding its pipeline system. Since its last rate case filing in 2006, PSNC Energy has spent more than $188 million to upgrade and extend its gas delivery system.
The company claims to have installed more than 900 miles of transmission and distribution mains and has added nearly 32,000 customers to its system. In its rate case application, PSNC Energy is also requesting to implement a customer usage tracker (CUT), a rate decoupling mechanism that breaks the link between revenues and the amount of natural gas sold.
If approved, the CUT will apply to residential and commercial customers and will allow the company to periodically adjust its base rates based on customer consumption.
PSNC Energy is also proposing several conservation initiatives and asking the commission to approve recovery of costs associated with them. If the request is approved, the average year-round residential customer will see a monthly increase of approximately $2.98.