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Progress Energy Florida To Ask For 31% Rate Increase

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By RUSSELL RAY | The Tampa Tribune

Published: August 29, 2008

TAMPA - Progress Energy Florida customers could pay a lot more for electricity beginning next year, the St. Petersburg-based utility said this morning.

The utility is seeking approval to increase electric bills 31 percent in 2009 to cover costs for fuel, the construction of two nuclear reactors in Levy County, and reducing emissions from the company's coal-fired power plants.

For residential customers using 1,000 kilowatt hours a month, monthly bills would rise from $110.59 to $144.86 in January.

The utility serves 1.7 million customers in 35 Florida counties, including Pinellas and parts of Pasco and Polk.

The Florida Public Service Commission, which regulates utilities, is expected to issue a decision on the proposal by the end of the year.

Progress Energy electric bills could tumble back if the company finds a partner to share the cost of building a $17 billion nuclear facility in Levy.

Most of the increase, though, stems from the skyrocketing costs of coal, oil and natural gas. About 43 percent of the power generated by Progress Energy is made with coal, 34 percent is made with natural gas and 7 percent comes from oil. The utility expects to spend $3 billion on fuel sources next year, which would be recovered from customers with no markup.

Reporter Russell Ray can be reached at (813) 259-7870 or rray@tampatrib.com.

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