During the spring of 2005, Finance Director Eddie Caldwell and Town Manager Lee Galloway reported the increasing fuel adjustment charges being assessed by Progress Energy. A recommendation was made that Town electric rates be adjusted at the beginning of each quarter based upon the increase or decrease in the average per kilowatt hour rates charged by Progress Energy in the preceding quarter.

During the first quarter after this change, the Town was essentially breaking even. In July and August the Town has seen a dramatic increase in the charges from Progress Energy as they pass along the dramatic increases they are seeing in their purchases of coal and natural gas. With these increases the Town experienced a loss of $84,755 in the Electric Fund.

For the period beginning October 1, 2005 a rate increase of $.00166 cent per kilowatt hour will be implemented. This increase will mean that the average residential customer using 800 kilowatts monthly will see their bill increase by $1.33 per month. That customer would pay $71.43 per month. Customers using different amounts or those on demand meters will see varying impacts upon their charges.