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DSM/EE opt out faq's
 
 
 
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The following Frequently Asked Questions apply to the Progress Energy Opt-Out program. 

What is the basis of the new DSM/EE Programs?
North Carolina's new Energy Statutes (ratified as Session Law 2007-397 in August 2007) encourage the state's electric utilities to establish Demand Side Management (DSM) and Energy Efficiency (EE) programs for their customers. The purpose of these programs is to assist customers in reducing their electrical demand on the utility's electric system, but also to reduce energy consumption and improve the energy efficiency of their electrical equipment.

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How will these programs be funded?
The cost of these programs will be shared among our customers through an annual cost recovery rider, Annual Billing Adjustments Rider BA-1, and is expected to begin with our December 2008 billing period. The BA-1 Rider will be available in the Rates section of our PEC website once it has received approval by the NC Utilities Commission (NCUC).

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How much will participating in these programs cost me?
The cost of participating in these programs will vary based on customer rate class.

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My company has already made, or is planning to make, a number of energy efficiency improvements at our facility. Do we have to share in paying for the new DSM/EE programs being offered by PEC?
Your facility may be eligible to avoid these charges. Pursuant to N. C. Gen..Stat. 62-133.9(f) and North Carolina Utilities Commission ("NCUC") Rule R8-69(d), industrial accounts, of any size, and large commercial accounts, which use more than 1 million kWh's in the prior calendar year, may elect to opt out of participating in the DSM/EE programs and avoid paying the charges if, at their own expense, they have implemented in the past or plan to implement in the future, alternative DSM/EE measures in accordance with stated, quantifiable goals. Commercial customers consuming less than 1 million kWHs in the prior calendar year and residential customers are not eligible to opt out.

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What do I have to do to opt out?
Customers must notify their electric utility in writing of their request to opt out of participating in the DSM/EE programs and provide a list of the specific eligible customer account numbers. The written request must state that the account(s), at their own expense, have either implemented in the past or plan to implement in the future, alternative DSM/EE measures in accordance with stated, quantifiable goals.

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Can I opt out now and then decide later to participate in one of PEC's DSM/EE programs?
Yes. A customer who initially opts out may subsequently elect to participate in one or more specific new DSM/EE programs being offered by PEC. However, any customer who elects to participate in a new DSM/EE program loses the right to be exempt from payment of the DSM/EE charges for five years or the life of program, whichever is longer.

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Where do I send my request to opt out?
An opt out letter template is provided for your convenience on this web site. You may download this template or print and complete the template form. The completed letter should be signed by a person in your company who has the authority to execute contracts and then mailed to the following address: Progress Energy Carolinas, Inc.; CSC - CIGS Team; PO Box 1771; Raleigh, NC 27602; The DSM/EE charges are expected to begin with our December 2008 billing period. The signed and completed letter should be mailed to PEC before October 1, 2008 to ensure we will have adequate time to verify our records and properly update your account.

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How can I tell if my request to opt out has been made effective on my account(s)?
Customer accounts that have requested to opt out of participating in the DSM/EE programs will see a credit on their monthly electric service account. The credit will be equal to the kWH consumption for the month multiplied by the appropriate DSM/EE adjustment factor listed on the BA-1 Rider.

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Do I have to notify the NC Utilities Commission (NCUC) that I am electing to opt out?
No. NCUC Rule R8-69(d) requires PEC to provide an annual report listing all of the customers who have elected to opt out of our new DSM/EE programs. In addition, we must notify the NCUC within 30 days when a customer who initially opted out of participating subsequently elects to participate in one or more of our new DSM/EE programs.

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Who should I contact if I have questions about this opt out process?
If you have additional questions, please contact your Progress Energy Account Executive or call 1-888-326-3344 for more information.

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