Power of the people? Hundreds voice opposition to rate hike

Hundreds of people packed the main courtroom at the McDowell County Courthouse to capacity Tuesday evening to show their strong opposition to Duke Energy’s request for another rate hike.

Donna Edwards of Marion was one of those who testified to the N.C. Utilities Commission.

“I don’t represent anybody except myself,” she said in her testimony. “We’re making choices in my house about whether or not to buy medications or pay the power bill. I am all for Duke Power making money. That is what they are there for. But not at the cost of everyday people.”

The vast majority of the people who spoke Tuesday evening before the state Utilities Commission voiced their “vehement opposition” to the proposed rate hike, which could be 17.4 percent for residential customers and between 12.8 and 14.7 percent for business and industrial customers.

For many in the courtroom, there may have been the feeling of déjà vu. In September 2009, the N.C. Utilities Commission held a similar hearing at the McDowell County Courthouse about a requested rate hike by Duke Energy. At that time, Duke was asking for a 12.6-percent rate hike.

Now, Edward S. Finley Jr., chairman of the Utilities Commission, said that Duke Energy is asking for another increase. As he did in 2009, Finley presided over the Tuesday hearing.

“This is a judicial hearing proceeding,” he said to the people. “We are taking sworn testimony. The purpose of this is about the rate increase. It is not the case for the permission to build a nuclear power plant or a coal-fired plant.”

In a news release, Duke Energy stated that approximately three-fourths of the request is driven by capital investments the company made in the Carolinas’ electric system over the past two years to modernize the system and comply with environmental rules. The company also stated it needs the rate increase for the day-to-day costs of running business.

Robin Nicholson, who works for Duke in the Marion and Hickory area, spoke on behalf of her company. She did not have to be sworn in.

“It is no secret this region has been significantly impacted by the economic downturn,” she said. “The investments we are making will help our community to remain competitive. Now, we are reinvesting in the system that has served us for so long.”

Even if this increase is approved, Duke Energy’s rates will remain below the national average, she added.

Other Duke representatives were there too.

The Utilities Commission’s members then started hearing sworn testimony. Although this hearing was about the requested rate increase, other subjects such as the Occupy Wall Street movement and the controversial Cliffside plant expansion were brought up, too.

Richard Fireman of Mars Hill was the first to speak. He said he is a retired medical doctor who now focuses on climate change and sustainability “from a faith-based perspective.”

Fireman talked about how people across the nation are rising up against “unrelenting and oppressive power of corporate America.”

“Corporate power has taken over the halls of government,” he said. “There is another way and another road. You, the N.C. Utilities Commission, are the gatekeepers of another way.”

Sandra Diaz represented Appalachian Voices, a regional nonprofit organization headquartered in Boone that is “committed to protecting the land, air and water of the central and southern Appalachian region, focusing on reducing coal’s impact on the region and advancing our vision for a cleaner energy future.”

Diaz said Duke Energy’s real mission is to maximize profits for its shareholders.

“The cumulative impact of these price hikes would unfairly impact middle- and low income rate payers, senior citizens, and other individuals on fixed incomes, most who have seen their incomes and purchasing power fall during this same time period,” read a news release from Appalachian Voices. “Duke Energy had record profits of $1.3 billion in 2010 – a 23 percent increase. In addition, Duke Energy CEO Jim Rogers had a compensation package totaling $6.9 million, a 25 percent increase. This financial performance suggests that Duke Energy is well positioned to achieve an acceptable return on investment and deliver shareholder value.

“Instead of a cost increase to support old polluting technologies, we need to focus on cost savings from inexpensive and job-creating energy efficiency that could save families money, lead to cleaner air and water, and promote a green energy economy in North Carolina,” the release added.

Charles Jansen of Asheville said this was the second of three rate hikes requested by Duke to pay for the expansion of the coal-fired power plant at Cliffside in Rutherford County. He said the company should increase its investments in alternative energy sources.

“The Utilities Commission should act on the public’s interests first,” he said.

Local residents who spoke at the hearing talked about how this proposed rate increase would hurt McDowell’s families and businesses, which have already suffered so much in this recent economy.

Mayor Pro Tem Lloyd Cuthbertson said he spoke on behalf of Marion City Council and the county school system.

McDowell recently reported a 12.8-percent unemployment rate and is below the state and national averages for household incomes. Cuthbertson added this increase, if approved, would have a significant impact on local families.

“For Marion and McDowell County, the recession is not over,” he said.

Likewise, Mayor Steve Little said a 17.4-percent rate hike for residential customers is not reasonable.

“I don’t know of anybody who got a raise of 17.4-percent,” said Little. “People are lucky to still have their jobs. I am here to speak for the people of Marion, 8,000 strong, and we say respectfully ‘This is too much.’”

City Manager Bob Boyette gave the commission a copy of a resolution adopted by City Council against the rate hike.

“The proposed rate increases will cost the city of Marion more than $40,000 per year, on top of other rate increases and fuel adjustments Duke has imposed,” said Boyette. “The city of Marion simply cannot absorb such rate increases, nor can our households, businesses, industries and nonprofit organizations.”

The city is asking that the rate hike be rejected or reduced to the lowest possible increase necessary.

“These rate increases will simply be a burden on everyone and should not be imposed,” said Boyette. “Duke needs to tighten its belt and absorb costs instead of passing them on to customers at such a terrible time.”

Bryan Wilson, president of McDowell Technical Community College, also spoke against the rate hike, saying it would represent 25 percent of the college’s operating budget. County Commissioners Barry McPeters, Josh Dobson and Michael Lavender attended the hearing as well. McPeters, who is the commission’s vice chairman, said Wednesday his board will vote on a resolution of opposition to the proposed rate hike.

Ron Shuping of Nebo said most people cannot live without electricity. They also don’t have a choice in who will provide it to them.

“To Duke Energy, here’s my message: Get your hands out of our pockets,” he said.

Local activists George and Suzanne Johnson spoke against Duke’s rate hike. Suzanne Johnson said many folks in McDowell are living below the poverty level.

“Don’t make them choose between heat and food,” she said.

The Rev. Carl Manuel, pastor of Addie’s Chapel United Methodist Church, said Wednesday he stayed at the hearing until just past 10 p.m. and at that time, there were still 20 people waiting to speak before the commission.

“I think it’s wrong for them to ask people to give even half a cent more when there’s people not able to pay their present bills,” said Manuel. “(The Utilities Commission) need to hear the people and react to the people.”

Other public hearings were scheduled to be held in Franklin, High Point and Durham. Finley said the N.C. Utilities Commission would make its decision sometime after the first of the year. If there is a change in the rates, it would probably happen in February, he said.