CHARLOTTE, N.C.
The Associated Press

Duke Energy Corp. will spend $1.8 billion to build a single coal-fired power unit at its Cliffside plant in western North Carolina, the company said Wednesday as it prepared to seek its first base rate increase in 16 years.

Duke provided the estimate in a filing with the state Public Utilities Commission, and said building the generator will also require about $600 million in additional financing costs. The company plans to ask the commission on Friday to approve the rate increase, which would boost the typical residential customer bill by about 6.8 percent, or about $7.20 a month.

"While the price of just about everything has gone up, Duke Energy Carolinas’ base rates have not changed since 1991 and are more than 27 percent below the national average," said Ellen Ruff, president of Duke Energy Carolinas.

The requested rate increase varies by customer class. General service and industrial customers would see average increases of 2 percent or less. (more…)