Owing to the soaring price of coal, which the company uses to fuel its electric power generating plants here in Person County and elsewhere in the Carolinas, Progress Energy is expected to apply to the N. C. Utilities Commission next month for approval to increase rates. If the rate request the company has requested this month in South Carolina is any indicator, Progress Energy customers in Person County and North Carolina could be in for a rate hike of six percent, which could boost the average monthly power bill from $97 to $103, The News & Observer of Raleigh reported Friday.

State law allows Progress Energy to pass on to customers the costs of fuel it uses to generate power, but the Utilities Commission first must determine whether any rate increase is justified.

Progress Energy officials report that the company’s costs for coal have risen sharply since December, up $20 to $90 per ton, and that its cost for rail delivery of coal to its plants also has advanced by 25 percent.

If, as expected, Progress Energy files a rate hike request with the Utilities Commission next month and the commission ultimately approves, the increase would take effect Dec. 1.