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Progress Energy Seeks Rate Increase

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TBO.com

Published: March 20, 2009

Progress Energy asked Florida regulators today for permission to raise base service rates by $499 million a year.

If approved, that would translate into a $14.18 monthly increase for each 1,000 kilowatt hours. The biggest part of the rate hike would take effect in January, but a portion _ $4.88 _ of the increase would take effect in July.

Friday's announcement comes after the recent approval of a $15 per 1,000 kilowatt hour decrease for Progress Energy customers. The utility won approval to lower charges for fuel and the preconstruction costs for a nuclear plant in Levy County.

The decrease will take effect next month, but the price relief may be temporary if regulators approve the rate plan Progress Energy submitted today.

If the increase in base service rates is approved in its current form, it would almost exactly cancel out the fuel price decrease. Bottom line: Customers next year would be paying about the same as they are now.

Progress Energy serves more than 1.6 million customers in north and central Florida.

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

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