Duke Power ' seeks '19 percent rate hike
By DEBORAH GOODSON
Di ll Matt Writer
If Duke Power Company's request for a 19.7-percent
rate increase is approved, students could be pay
ing as much as 30 cents more a day for electricity by
the end of the year, a Duke spokesman said Thursday.
Duke Power official Palmer Holt said the utility
told the Nbrth Carolina Utilities Commission Wed
nesday that it must have a 19.7-percent increase to
meet consumer demand.
"If a person pays $1.53 a day for electricity, his bill
would rise to $1 .83 a day with the increase," Holt said.
Holt said Duke Power needed $21 1 million a year
for operation and another $1 10 million to bring Unit
1 of the McGuire nuclear plant into service by the end
of October. McGuire is 17 miles northwest of Char
lotte on Lake Norman.
"Our operation costs have also increased due to
inflation and government regulations," Holt said,
"Since 1976, our rate increase has only been 6.8
percent a year. The inflation rate during this time has
been 7.2 percent a year," he said. "We have to keep
going back to the commission for increases, because
we rarely get what we originally ask for."
Holt added that the costs of labor and materials
as well as double-digit inflation rates and interest
rates on borrowing had figured in the rate increase.
Yielding a 25 percent increase in profits for share
holders, the revenue would let the utility earn a com
petitive return on invested capital. More money
would be available to continue the construction of six
nuclear units, Holt said.
"Duke Power has the cheapest rates on the East
Coast and will continue to have them even after an
increase," said John Kinkaid, district manager in the
Chapel Hill office.
" Even though people are conserving energy by tur
ning their thermostats down in the summer and up in
the winter, we are expecting a 3.8 percent growth in
demand in the next 15 years," he said.
Kinkaid said it took 12 years to bring the McGuire
plant to operation, and that if funds were not ac
quired, demand might exceed supply in 1995.
"We also have to keep in mind that our governor is
trying to bring new industries and businesses into the
state to provide new jobs. More plants and businesses
will create more demand for energy in the future," he
said.
The Utilities Commission's public staff, an advo-
cacy agency, has recommended a 12.4-percent in
crease $138 million a year in response to Duke
Power's request.
David Creasy, an engineer in the electric division,
said the public staff had reviewed the Duke Power
rate increase since it was submitted in March. After
each department reviewed the application, the
12.4-percent increase was then alternately submitted.
Public hearings now being conducted should result
in a final decision by the Utilities Commission in Oc
tober. ' :, . .
"The cost of everything is increasing, and our
power rates are no exception," Creasy said,
r "Customers just have to realize that an across-the-board
increase is more involved than it appears.
Rates might increase more for commercial users than
for residential users."
Creasy added that Consumers were encouraged to
attend all the public hearings and voice their support
or opposition to the increase. .
The state Supreme Court is scheduled next Tues
day to hear Duke's appeal of a rate increase approved
in 1980 by the Utilities Commission. In that case,
Duke received about two-thirds of what it requested.
Friday, August 28, 1981The Daily Tar Heel3
On UNC building
progresses
Construction of a $ 1 .45-million addi
tion to the University of North Carolina
General Administration Building , is al
most on schedule, and the building is ex
pected to open in the spring of 1982,
Allen Waters, assistant vice president of
finance, said Thursday." ;
. The 22,000-square-foot structure will
provide offices, conference rooms and
space for the administration's data pro
cessing division. Construction began last
October. .
Waters said construction of the building
was moving along nicely. "The. building
is generally on schedule. It may be two or
three weeks behind because there were
some foundation problems and wet wea
ther that gave the contractors trouble
earlier," Waters said.
But the trouble has not created addi
tional costs, he said. "We planned for a
certain amount of construction contin
gency ... a little bit set aside for problems.11'
The addition will be a light-colored
masonry block structure connected to the
original building by a covered walkway.
LYNN WORTH
towing
From pagel
but we have been very strict concerning
violations in fire lanes and hydrant
zones," Stone said.
parking
From page 1
Hillsgrove filed an appeal with the
property office to get the University to
pay for the new windshield.
Another SRC resident, Susan Chitty,
had a stereo stolen out of her car.
"I think it's pretty bad. My car got van
dalized between Sunday and last night
(Wednesday), and with my car being so
far away 1 can't keep an eye on it," Chitty
said.
"We're the ones that live here, we're
the ones that have to use our car at night.
Commuters are here during the day; they
don't have to worry as much about van
dalism." Students also complained about the
amount of use of the spaces. "You come
home from class, and there are so many
spaces in front of Parker and Avery, it's
just unreal," said Karen Long, the presi
dent of Parker Residence Hall.
Morgan said she had counted only six
spaces being used Wednesday morning,
when there usually would have been no
spaces to park at all. '
American
Cancer
Society J?
Andrew Hager, coordinator of parking
and traffic control for the University,
said there had been relatively little towing
.on camrn! cr far
"We've had to tow a few for parking in
fire lanes or handicapped places, but since
we generally allow people to accumulate
three tickets before we tow them, there
won't be much action for a couple of
weeks," Hager said.
Support tho
m
c:.ith decis Fcu::znia:i:
Student tore starts new book checks
By TED AVERY
DTH Staff Writer
Students buying books in the Student
Stores textbook department are now able
to keep their belongings safe with a check
system begun by the store this semester.
Required to keep their things off the
sales floor to avoid suspicion of shoplift
ing, students are now able to leave their
stuff .in cubicles guarded by two store
employees.
Before this system was started, students
had to leave their things unguarded on the
floor outside the textbook department.
Rutledge Tufts, assistant general man
ager of the store, said the check system
was created because the book store was
responsible for giving students a safe place
to keep their belongings.
The system began as a table where em
ployees kept a list of what was being
stored. The demand became so great
though, that the manager had to devise
the new system, Tufts said.
' "Right now, it'll be there for the height
of the book rush. Once rush ends, we'll
attempt to provide the same service on a
smaller scale," Tufts said.
Several students interviewed by The
Daily Tar Heel said they were pleased
with the new system.
"I think it's a pretty good idea," junior
David Spillane said. "It helps keep your
valuables safe."
V Terri Campbell, a senior from Newton,
said, "It probably cuts down on people
stealing stuff. It's a good idea. I'd rather
take them (books) in with me, though." ;
Brennan Hussey, a sophomore from
Shreveport, La., said, ''Last year, we
would have to leave our backpacks over
there (the floor); there was a chance of
their getting stolen. It's well worth the
trouble."
.Toby Stevens, a checker, said the re
sponse had been positive. "One guy told
me it was the greatest thing since drop
add," he said,
Stevens said he had checked such things
as crutches, wet bathing suits, field-hockey
sticks, lunches, golf clubs, desk blotters,
suitcases, umbrellas and plastic Carolina
cups.
"I get to meet a lot of people. When
we're not busy, people call us lazy and
say, 'It must be nice to get paid to watch
girls,' " Stevens said.
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