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Progress Energy To Pass On New Costs

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By RUSSELL RAY

rray@tampatrib.com

Published: October 15, 2008

TAMPA - In January, customers of Progress Energy Florida will begin paying the pre-construction costs for two new nuclear reactors planned in Levy County.

The St. Petersburg-based utility won approval from the Florida Public Service Commission on Tuesday to pass on the costs to customers. For residential customers using 1,000 kilowatt-hours a month, the monthly electric bill will increase $11.42, or 10 percent, to $122.01.

Under new state law, Progress Energy can pass on the cost of building a nuclear plant before the plant begins generating power.

The two-reactor project, if approved by federal regulators, would begin generating electricity in 2017.

The $17 billion project was approved by state regulators in July. In a statement, Progress Energy said the new reactors are "strategic assets in our statewide effort to become energy independent, reduce the price volatility associated with fossil fuels and provide a balanced approach to securing our state's energy future."

The new reactors, the utility said, would lower consumer fuel costs by $1 billion a year and reduce air emissions from coal- and gas-fired power plants, the utility said.

The utility also received permission Monday to collect another 72 cents a month from customers to cover the cost of increasing the generation capacity of Progress Energy's existing nuclear plant near Crystal River.

Altogether, Progress Energy will receive more than $418 million from customers next year for the Levy County nuclear project and the expansion at Crystal River.

"We are encouraging utility investment in nuclear electric generation today to ensure Florida's residents have reliable power for tomorrow," service commission chairman Matthew M. Carter II said in a statement.

Reporter Russell Ray can be reached at (813) 259-7870.

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