24
THE CAROLINIAN
RALEIGH, K. C., SATURDAY, MAY 8. 1971
A MESSAGE OF
EXTREME IMPORTANCE
FROM THE PRESIDENT OF
CAROLINA POWER AND LIGHT
COMPANY
To our customers:
Your Power Company is faced with a situation
so urgent that we have asked for permission
to increase our rates on an emergency basis.
Because this affects you and your pocketbook, it
is only right that you be given an explanation.
POWER NEEDS ARE DOUBLING EVERY 6 YEARS
Our area continues to grow. People are using
more electricity in their homes, and expanding
industries and new industries, which create more
jobs and new payrolls, will depend on us to
supply the power they must have to operate.
And electricity will be needed to run new
devices for treating waste and reducing pollution
in our air and water.
For us to be well prepared, we must add to our
facilities. And that will take an enormous
amount of money. Working against us (and you)
is the impact of inflation and other cost factors
beyond our control. So we must raise rates in
order to finance these new facilities.
TWO BILLION, FOUR HUNDRED MILLION DOLLARS
To provide the electricity our customers must
have between now and 1978 we have already
planned for facilities which will cost the
staggering sum of $2,400,000,000. Over $2
billion will come from people who are willing
to invest their savings in CP&L. (Incidentally,
more than half of our nearly 45,000 share
holders live right here in the Carolinas.) But
no one can be expected to invest in our
company in the years ahead unless they can
earn from their investment in us as much
as they can get from investing elsewhere.
Carolina Power & Light Company
THIS MESSAGE WILL BE ENCLOSED WITH THE NEXT CP&L MONTHLY BILL.
IT IS PUBLISHED HERE SO THAT ALL CUSTOMERS WILL BE AWARE OF THE INFORMATION AT THIS TIME.
OUR FIRST GENERAL RATE INCREASE
Earlier this year, we were allowed to increase
our rates by 11.86%. Unfortunately, our expenses
have risen so sharply that even with this increase
our earnings are not adequate. For example, our
fuel expense in the first three months of this
year was $4.16 million above the estimated fuel
expense upon which our rates in North Carolina
now are based.
AN ADDITIONAL 5.63% NEEDED
To cope with the increased costs, to be in
a position to successfully compete for the
millions of dollars we must have this year, and
to simply bring our rate of return up to the
level which has already been determined to be
just and reasonable, then our rates must be
raised an additional 5.63% immediately. We
consider this essential. Because this year alone,
the cost of the money we need and the fuel we’ll
have to use will be millions of dollars more.
WHAT WE SELL IS STILL A BARGAIN •
In 1970, the average price our customers paid
for electric service at home was 21% less than
the national average. And even after our
proposed rate adjustment, CF&L’s rates would
compare favorably with rates elsewhere.
We know you don’t like having to pay higher
rates and we don’t like having to increase them,
especially on an emergency basis. The simple
fact is, that to have adequate power to meet
your needs, our rates must be increased by
5.63% now. As always, your questions, your
comments or suggestions are welcome.
Shearon Harris, President
Carolina Power & Light Company
P. O. Box 1551
Raleigh, N. C. 27602