SNOW HILL — Defying the N.C. Utilities Commission chairman’s warning against demonstrating, more than a few people stood up in the Greene County Courthouse to represent the silent signers of a petition opposing an electric rate increase.
They were a portion of about 150 people who showed up for a public hearing Tuesday night regarding Progress Energy Carolina’s (part of Duke Energy) request to raise their rates. The hearing was presided over by Edward “Ed” Finley.
The submitter of the petition, a representative from Democracy N.C., Jake Gellar-Goad of Chapel Hill, was one of 20 people who voiced their opposition to the rate hike. Three others spoke in favor of the rate increase.
“I want to submit a petition here,” Gellar-Goad said to the Utilities Commission. “Nearly 250 folks have signed the petition here saying they are against the rate hikes on economic and environmental grounds from Greene County and the surrounding counties.”
Finley stopped Gellar-Goad from attempting to have the signers stand, but members of the audience stood up when Gellar-Goad finished his testimony and someone yelled, “Stand up.”
Progress Energy had originally requested an 11 percent overall increase, or about $359 million, but on Monday had worked out a settlement with the N.C. Public Staff for a 4.7 percent, or about $151.4 million, average increase and an additional 1 percent, or $31.4 million, in 2014. If approved, rates would take effect in early June.
Jeff Brooks, spokesman for Progress, said the company has retired or replaced about a third of its main assets, which include the Smith, Lee and Sutton plants.
“We take a risk on the front end,” he said, “then we make an appeal.”
Brooks said customers can expect a $15 increase each month per 1,000 kilowatt-hours of electric usage.
“For us,” he said, “this settlement represents a balance between the financial needs of our business and the concerns of our customers.”
One opposer, Melanie Goff Bradley of Rocky Mount, said she witnessed the deception of cost savings in a merger that took place in Edgecombe County.
“The investment in the new technologies and the cleaner energy generated is vital, it’s necessary,” she said. “But these costs should come out of the shareholders’ portion and not on the backs of the rate payer.”
Another, Willie Battle of Goldsboro, said such a settlement appeared to be a “done deal.”
“This is the same thing I went through in ’74 with a nuclear plant in California,” Battle said. “We stayed up all night long to find out the thing already was a done deal. And I believe that’s about what it is. It’s set right now. It’s already decided. We’re just spinning our wheels because you have to have a public hearing.”
Conflict of interest
Senate Bill 10, completely rewritten by the House Wednesday, again may put the Utilities Commission members out of their seats, Gerrick Brenner, executive director of Progress N.C., said.
“It actually came one step closer to reality today,” Brenner said Wednesday, following the rewrite of the bill, which was initiated by Rep. Mike Hager, R-Rutherford, and would replace four of the five commissioners.
Brenner said the bill could be voted on today.
“It’s amazing that a former Duke (Energy) employee, Rep. Mike Hager, would propose an amendment to allow another former Duke employee, Gov. Pat McCrory, to appoint an entirely new Utilities Commission,” he said. “The Utilities Commission this year will consider a double-digit rate hike on residential customers of Duke Energy. And now a former Duke employee in the General Assembly is actively enabling the power grab. The scope of conflicts of interest are staggering.”
Brenner, speaking at the hearing, said McCrory worked for Duke Energy for 29 years and owns at least $10,000 of Duke stock. McCrory should disclose the amount of stocks he owns, recusehimself from appointing members of the Utilities Commission or veto Senate Bill 10, he said.
“The conflicts of interest are as clear as a light bulb,” Brenner said.
Others also drew attention to McCrory’s background with Duke.
James Grimes of Goldsboro said if Duke Energy wants $446 million to upgrade its plants, its officials could have asked former Gov. Bev Perdue or the General Assembly two years ago.
“If Pat McCrory and the General Assembly can find money to renovate a football stadium,” Grimes said, “then they can find money to keep people warm without robbing them blind.”
David Jones of Snow Hill questioned the integrity of decision-makers at Duke and Progress following the merger of the two when the former CEO William Johnson was fired and Board Chairman James Rogers took his place.
“There is the appearance that the Utilities Commission was misled with regards to the terms of this merger,” Jones said.
Doug Dickerson, the state director of the AARP NC, said in a telephone interview the electric companies are trying to shift the power to themselves, while passing on the cost to the consumer, many of whom are already struggling.
“AARP is deeply concerned about the government’s rate settlement with Progress Energy,” Dickerson said, “which in the midst of public hearings, was hastily negotiated during closed-door meetings between company lawyers and the Utilities Commission as they secretly calculated how much ratepayers will shoulder. Isn’t a role of the Commission to listen to the people who will be paying the bills?”
Voices for the poor
The majority of opposers spoke on behalf of the poor, and particularly the elderly on fixed incomes. Former Greene County NAACP president, Albert Barron Sr. of Jason, was one.
“I would say that Duke Power, as well as Progress Energy, may be looking to upgrade and enhance their capabilities,” he said, “… but my plea and my cause is to say, if you’re going to do so, please don’t look to do it on the backs of the poor.”
Dorothy Allsbrook of Goldsboro used an analogy about the attack on Pearl Harbor as Americans slept, comparing that to a “serial attack on our pocketbooks” by Progress Energy. But this time, people are awake, she said.
“Folks, we’re not living in a third world country,” Allsbrook said to the commissioners. “We’re living in the land of plenty. So what’s wrong? The system is broken and it needs to be fixed. You can help make this easier, even if you can’t change what has happened up to this point.”
Greene County Commissioner Denny Garner said Greene’s poverty rate is nearly 20 percent, as well as the high unemployment rate.
“We have one of the fastest growing 65 and over populations in the state of North Carolina,” he said, “and that’s because we don’t have plants or industries to bring our young people back to the county once they finish school.”
Charles Wright of Goldsboro cited additional factors, such as a decrease in unemployment benefits, changes in the tax code and denial of federal health benefits, which could add to the plight of many ENC residents. He read the “About Us” blurb on Duke’s website.
“I respectfully ask this commission to support Duke Energy’s doctrine statement as stated on their website,” Wright said, “and keep electricity and gas service affordable and make life better for the citizens of Eastern North Carolina and Duke customers by saying no to their rate hike request.”
On behalf of Progress
Troy Smith, who owns four firms around New Bern and Raleigh, said he has no ties to Progress or Duke and doesn’t own stock in either. He said he’s worked with local military bases and the Base Realignment and Closure Commission, or BRAC, and believes economic development, including electricity, is an asset that attracts industry.
“For that reason,” Smith said, “I think it’s in all of our interests for the future of Eastern North Carolina and all of us who live here and plan to stay here and want to create a better economy for us in this part of the state to support this rate increase because Progress Energy — what they’ve done and what they will be able to do and the amount of infrastructure support they will be able to provide — is critically important for us on an ongoing basis.”
Joanna Helms, president of the Wayne County Development Alliance, said Progress Energy is a “game changer” for the area’s progression.
“This business of economic development is so very competitive,” she said, “and anything we can do to get a hedge on recruitment of industry, retention of industry, creating jobs, creating investment, anything that we can do that’s important to bring to the table is a game changer.”
Julie Turner, a former plant manager at the Lee Energy Complex in Wayne County, said the upgrades Progress Energy wants to do will lower emissions and fuel costs.
“We recognize that electricity is a significant expense for many of our customers,” she said, “and that any rate increase will be a challenge for some. We are committed to helping our customers take control of their energy use and their bills through energy efficiency programs and provide help with energy bills for low-income customers and those experiencing financial crisis.”
But Margaret Sowerwine of Rocky Mount said customers continue paying for the Shearon Harris Nuclear Generating Station in New Hill, operating since 1987, with increasing rates and debt.
“I don’t think there should be any rate hikes allowed,” she said, “until these power companies and our local governments have done everything they can to encourage energy efficiency and renewable energy.”
Margaret Fisher can be reached at 252-559-1082 or Margaret.Fisher@Kinston.com. Follow her on Twitter @MargaretFishr.
Future public hearings on Progress Energy’s rate increase request:
7 p.m. Tuesday — Asheville, Buncombe County Courthouse, Courtroom No. 1
7 p.m. March 13 — Raleigh, Commission Hearing Room 2115, 430 N. Salisbury St., Dobbs Building
Evidentiary (submission of evidence) hearing: 1 p.m. March 18 — Raleigh, Commission Hearing Room 2115, 430 N. Salisbury St., Dobbs Building