- Agreement supports significant investments for safety, reliability, customer growth
- Request included rate reductions for natural gas costs and income tax payment credits passed to customers
Piedmont Natural Gas has reached a comprehensive agreement with consumer and industrial groups in North Carolina related to its rate review request, filed in April of this year.
Piedmont plans to implement the increase in November 2024. Piedmont also requested concurrent rate reductions for pass-through natural gas costs and to accelerate the flowback to customers of the remaining eligible balance of excess deferred income taxes, which will help mitigate the overall impact to customer bills. The average residential customer in North Carolina will pay about $7.50 more per month, or $90 more per year.
"We appreciate the consideration the Public Staff and all other parties have shown toward our customers and Piedmont's business needs," said Brian Weisker, senior vice president and president of Piedmont Natural Gas. "Raising rates is never a decision we take lightly, particularly during challenging economic times. These investments in strengthening and enhancing our natural gas delivery system will help ensure we continue to provide safe, reliable service to our customers while meeting the rising demand for natural gas throughout our North Carolina footprint."
The agreement is subject to the review and approval of the North Carolina Utilities Commission. If the agreement is approved, the net annual increase in revenues for Piedmont will be approximately $88 million, about 40% less than the $149 million Piedmont originally requested to recover its prudently incurred costs to comply with federal safety regulations, enhance the customer experience, build needed infrastructure and provide safe, reliable natural gas service to meet the energy demands of more than 810,000 customers in North Carolina.
The agreement was developed in collaboration with the Public Staff of the North Carolina Utilities Commission, which represents the interests of consumers, the Carolina Utility Customers Association, and the Carolina Industrial Group for Fair Utility Rates IV.
The agreement allows Piedmont Natural Gas a return on equity of 9.80%.
The stipulated rates also impact commercial and industrial customers. To learn more about Piedmont's proposed rate increase, visit piedmontng.com/rates.
Level out your bill with the Equal Payment Plan (EPP) program
Piedmont's free EPP program helps customers manage their budgets by leveling out a customer's natural gas bills, allowing them to pay a predictable, equal monthly amount to help avoid billing surprises. Piedmont determines this payment by adding up a customer's annual natural gas usage and then dividing it into the same payment amount each month. Learn more here.
Energy-saving tips and tools
Piedmont Natural Gas also offers a variety of energy-saving tips and tools to help customers and our communities identify ways to save money and energy all year long. These programs and tools help customers understand what factors are impacting their natural gas bills and emphasize specific actions they can take to prepare and reduce the impacts of higher usage.
Assistance for customers in need
Share the Warmth provides funds to local agencies to assist families with their utility bills, no matter the source of energy they use. Contact information for approved assistance agencies across Piedmont's service area is available at piedmontng.com/ShareTheWarmth.
The Low Income Energy Assistance Program (LIEAP) provides assistance to pay for natural gas, electric and other energy sources customers use in their homes.
