(RALEIGH) - Progress Energy Carolinas is asking for a nearly 4 percent rate increase for its North Carolina customers.  The Raleigh-based utility said the hike is needed to help pay for higher fuel costs to generate power and the utility's investment in energy efficient and renewable energy programs.

"We're working every day to increase efficiency in our operations, while continuing to meet our customers' and regulators' expectations for reliable and environmentally sound service," said Lloyd Yates, CEO and president of Progress Energy Carolinas, which serves 1.5 million customers, including 1.3 million in North Carolina. "Our customers and regulators expect nothing less, and we are committed to doing all we can to mitigate the impact of rising prices on the people who depend on us."

If the 3.8 percent residential rate increase is approved by the North Carolina Utilities Commission, the new rates would go into effect Dec. 1. Progress is also asking for an average 4.4 percent rate increase for commercial customers and a 5.8 percent increase for industries.