$2.5 million added to Raleigh's budget to cover rising fuel costs for its fleet

RALEIGH, N.C. (WTVD) -- Raleigh is taking steps to deal with rising gas prices. Originally, $3 million was allocated for fuel for the year and Mayor Janet Cowell says the city now needs to almost double the budgeted amount.

An additional $2.5 million was added.

"That's a huge percentage increase on fuel," said Cowell.

The money will help keep services, such as fire and police, running.

Cowell says the city is being hit with several added costs, even though roughly 85 percent of Raleigh's vehicles run are electric.

She says the bigger concern is where energy prices are heading.

Duke Energy is seeking an average 15 percent rate hike. It would be spread over two years

Spokesperson Jeff Brooks says the company's request reflects investments in strengthening the electric grid.

Cowell tells ABC11 the impact of this energy rate hike has the potential to far exceed pain at the pump.

"If Duke Energy increases their cost of utilities, that will have a massive impact on the city," said Cowell. "If we had to increase $2.5 million for fuel, you'd be looking at $10 million for electric because it's 10 the amount. We are a very electrified city."

State regulators need to sign off on the Duke Energy request and there have been public hearings.

A decision is expected in the fall.

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