The threat of federal carbon tax legislation already has North Carolina electric utilities bracing for rate hikes of up to 50 percent through conservation programs and green initiatives, but a state hike may also be in the works.

The North Carolina Senate is proposing a measure to double the tax rate on electricity to six cents on the dollar to raise money to cope with the state’s budget shortfall, according to the North Carolina Electric Cooperative Association.

Pee Dee Electric Cooperative Director of Marketing Bruce Simmons recently commented on the proposal, which he sees as an alternative to cutting spending and waste in Raleigh.

“The sad part about this is that the cost is obviously going to be passed onto the consumer, they are the ones that pay the sales and use tax,” Simmons said. “However, it will hit this area particularly hard, because of the amount of people we have here living on fixed incomes or may be unemployed in this economy. This will be a hardship for them.”

“These are unprecedented economic times, and our state legislators are faced with difficult choices,” Progress Energy Spokesman Mike Hughes said. “We hope that as this discussion progresses, there will be a better option identified, but we also recognize that options for raising revenue are few.”

He explained that despite the fact federal climate-change legislation is completely unrelated to this state measure, the net effect to the consumer would be the same.

“To the consumer, the collective effect of all these things is higher bills,” Hughes said Wednesday. “Whether it be, in the case of the federal legislation, increasing the price of producing energy, or, in the case of the state, raising taxes, the consumer is being asked to pay more at a time when many of them can least afford to.”

The tax would add $6 for every $100 on an electric bill, which the state projects would raise about $350 million.

Simmons said 6 percent is in line with the sales tax currently charged to telephone and cable companies, but it’s a whole different ball game.

“Six percent is currently the rate the phone and cable companies charge, the difference in our service is you can make it without a phone or cable,” he said. “They’re more of a luxury item. Electricity is not, you have to have power for your basic quality of life needs.”

Current state regulation requires that energy companies transition 12.5 percent of their portfolios into renewable energy sources by 2021.

The Associated Press reported Wednesday that the North Carolina House of Representatives Committee on Energy and Energy Efficiency met to consider legislation to create incentives for household energy conservation. The incentives would target high-performance homes and renewable energy.

Under the measure, public schools and universities would also be required to report their energy usage.

Campaigns to encourage conservation and energy-efficiency have already been launched by the Electric Cooperatives Association, Find A Balanced Solution, and Progress Energy, Save the Watts. These are in addition to participation in other organizations such as N.C. Green Power.

Simmons added the price of energy affects the price of other goods, much like the prices of oil and gasoline do.

“If our economy were stronger and in recovery this action could be better absorbed,” he said. “Unfortunately, people are experiencing the worst times since the Great Depression ... We believe that any legislation that affects the cost of electricity should studied closely, and not used as a balancing act for poor budget planning and spending.

“Before we balance the state’s budget on those who can least afford higher power bills, we should exhaust all spending cuts measures.”

“We know any price increase is unwelcome to customers, and we’re doing all we can to minimize the effect of higher costs on our customers,” Hughes said. “We encourage customers to use energy wisely every day. We have lots of programs and information available to help customers reduce energy use and lower their bills.”