Opponents turn out against Duke Power rate hike

More than 150 people gathered in the McDowell County Courthouse Thursday evening to voice their strong opinions about a proposed rate hike by Duke Energy.

The vast majority of the people who testified before the N.C. Utilities Commission are against the proposed 12.6-percent rate hike. Various environmental groups in western North Carolina also claim Duke Energy is asking for the rate hike so the power company can pay for its controversial Cliffside power plant project. Some of the people attending the hearing brought protest signs. One read "No Duke bailout" while another read "No coal rate hike."

The state Utilities Commission is holding several public hearings across the state about the proposed rate increase. Hearings have already been held in Durham and High Point. In addition to Marion's hearing, another one will be held in Franklin on Tuesday and the last is set for Oct. 19 in Raleigh.

Bob Bennink, general counsel for the Utilities Commission, said, after the hearings are held, the parties involved will have an opportunity to file their legal briefs. The Utilities Commission is then expected to make a decision on the rate hike request by the end of the year or Jan. 1.

At Thursday's hearing in Marion, people who wanted to speak to the Utilities Commission had to be sworn in since this was a legal proceeding. Edward S. Finley Jr., chairman of the commission, said the purpose of the hearing was to get public input about the proposed rate increase.

"Whether or not to continue the construction of Cliffside Unit No. 6 is not the issue here," said Finley.

However, that controversial project was on the minds of many at Thursday's hearing.

Gary Laws, government and business relations manager for Duke, gave the opening statement and spoke in favor of the rate increase. He said Duke's rates would remain below the national average even with the requested hike.

Duke Energy officials have said the company is not asking for a rate hike solely because of the Cliffside project. Duke is upgrading the existing Cliffside power plant by building its No. 6 unit there.

Duke officials contend much of the requested rate increase would pay for building what they say will be a cleaner, more reliable system.

"Something you don't read a lot about in the media is reliability," said Laws. "It's not an exciting topic."

Lee Taylor, a Marion attorney, was among the many who spoke against the rate increase and the Cliffside project. She said the requested 12.6-percent rate hike is in addition to a 4.5-percent fuel increase that Duke got in July. The higher rates would result in higher bills for residents and businesses alike.

"There are many businesses here in western North Carolina that are struggling to stay afloat," she said.

Some of the people who spoke against the rate increase talked about how the coal-burning Cliffside plant would result in further destruction of the environment and increased climate change. They represented several environmental groups in western North Carolina.

The Marion City Council is opposing the rate hike on the grounds that it would create a greater financial burden for the city and its residents. City Manager Bob Boyette spoke on behalf of the City Council, which voted last week to oppose the increase.

"The proposed rate increases, coming on top of the recent rate increase granted in July to Duke for a fuel adjustment, will cost the city of Marion almost $44,000 per year, an amount equal to a penny and a half on the city's tax rate," said Boyette. "I am certain no one present here or anywhere in our community wants to pay higher taxes, especially in the current economy. It is even worse that such a rate increase would come in the middle of the city's fiscal year, after the budget has been set.

"The city has lost over $1 million per year in revenue due to plant closings, sales tax losses and other economic factors," he added. "We are not a wealthy community. The city's median household income is consistently lower than the county as a whole, the state and the nation, while the city's poverty rate is consistently higher than the county as a whole, the state and the nation. In light of these revenue losses and economic factors, neither the city nor our citizens can afford the rate increases imposed."

Councilman Lloyd Cuthbertson spoke to the commission on behalf of the McDowell County School System. He is also the safe and drug-free coordinator for the school system.

Cuthbertson said the McDowell public schools would have to absorb an additional $123,000 in utility costs, if the rate hike is approved. He said the school system is formally asking that it be denied.