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Progress To Reduce Energy Rates

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By RUSSELL RAY

rray@tampatrib.com

Published: February 13, 2009

Progress Energy on Thursday yielded to consumers and lawmakers angry about skyrocketing electric bills, saying it will seek an 11 percent reduction in electricity costs for residential customers.

But for one state lawmaker, the fight for lower electric bills isn't over.

State Sen. Mike Fasano, R-New Port Richey, pledged to stop the St. Petersburg-based utility from recovering from customers any costs related to the construction of a $17 billion nuclear plant in Levy County.

In addition to lowering fuel charges for 2009, Progress Energy said it would defer the bulk of this year's charge for preconstruction costs of the nuclear plant.

The utility began recovering a portion of those costs from customers last month, adding $11.42 to the cost of 1,000 kilowatt hours. That charge would be reduced to $3.62 under Progress Energy's proposal.

"We can suspend that for a period of time without jeopardizing the project," said Jeff Lyash, president and chief executive officer of Progress Energy Florida.

Customers would see the decrease in their April bills if state regulators approve the plan.

Fasano, however, described Thursday's announcement as a "small victory" for consumers.

"The greater challenge will continue as we work to slow or halt all future advance-cost recovery rate increases tied to the nuclear power plant construction," he said.

But the price relief being offered by Progress Energy may be temporary.

The utility also said Thursday it plans to seek an increase in base service rates for 2010.

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