Lance Martin/Herald Senior Staff Writer

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A proposed increase in electricity rates could have people on assistance seeking more help, Halifax County's social services director said Friday.

The proposed adjustment would increase the average monthly bill of a Dominion North Carolina Power residential customer who uses 1,000 kilowatt hours per month by $16.04, or 17.7 percent to $109.69.

The company said in the release without adjustments the percentage increase would have been 28.8. Dominion Power is seeking a rate increase approval from the state Utilities Commission effective Jan. 1.

The increase, a company press release says, is based on higher costs for fuel and increased global demand for energy. It would be passed on to customers with no profit to the company, the statement, released Thursday said.

“The market prices of fuel used to run our power stations ... have risen dramatically during the year since our last fuel rate increase,” David A. Heacock, president of Dominion North Carolina Power, said in the release. “We have worked very hard to keep costs down in areas we can control, but we face sharply higher prices for fuel we need to produce power and in the cost of purchased power.”

To ease the burden, Dominion is using a modified adjustment formula to reduce the proposed increase by $43 million, the news release says.

The company also announced a $5 million contribution to EnergyShare, a program that provides emergency grants to help residential customers pay heating and cooling bills.

There is also a new billing option for small and general service customers to equalize monthly payments to make it easier for residential customers to enroll in Budget Billing as well as expanding eligibility.

The company is also developing plans to partner with non-profit and social service agencies to promote energy efficiency for seniors and low-income clients.

Still, any increase could negatively affect those who are already struggling, Michael Felt, Halifax County DSS director, said.

“Last year we received $560,000 in crisis intervention money, which is either the second or third largest allotment in the state,” Felt said. “Basically, it's a testament as to the need in Halifax County for emergency heating and cooling assistance.”

For the 2007-2008 fiscal year, there were 3,499 applications for crisis intervention and 2,361 approved.

At the end of a fiscal year there is no money left, Felt said. “We've seen double digit growth year over year in applications for food assistance and Medicaid because of the economy.”

He said the unemployment rate is also a factor. “Where do people of that 8.8 percent go? They come here. That can include crisis intervention, Medicaid, food assistance, Work First, child care, all those.”