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Progress Customers To Get 11 Percent Rate Cut

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By RUSSELL RAY | The Tampa Tribune

Published: March 17, 2009

State regulators this morning granted Progress Energy's request to reduce electric bills by 11 percent, or $400 million, this year.

Beginning next month, the cost of 1,000 kilowatt hours will be reduced by $15.08 to $122.79.

Progress Energy sought the reduction from the Public Service Commission due to lower fuel cost projections for 2009 and a sour economy that is squeezing the pocketbooks of many consumers.

In addition to lowering fuel charges, the utility will delay the collection of most preconstruction costs for its proposed nuclear plant in Levy County.

The company began recovering preconstruction costs for the nuclear plant in January, adding $11.42 to the cost of 1,000 kilowatt hours. That charge will be reduced to $3.62 under the plan approved today by the PSC.

Originally, the company planned to collect nearly $400 million this year for costs related to the construction of the nuclear plant. The utility will collect about half of that this year under the revised plan.

Customer fuel charges were reduced by $6.90 for every 1,000 kilowatt hours.

"We've listened to our customers and lowered our price to provide some short-term help," said Jeff Lyash, president and chief executive of Progress Energy Florida.

Progress Energy is Central Florida's largest power provider, serving more than 1.6 million customers in 35 counties.

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

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