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Commission cuts rates for FP&L, Progress and TECO

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The Associated Press

Published: November 3, 2009

Updated: 11/03/2009 08:09 pm

The Florida Public Service Commission today cut rates effective in January for three large power companies because of declining fuel prices and other reasons.

The commission also ordered Florida Power & Light Co. to refund $364 million because its current fuel cost recovery rate, which the commission sets annually, turned out to be too high. Customers will get a one-time credit in January. It'll be $44.46 for a customer using 1,000 kilowatt hours per month, which is fairly typical for smaller homes.

FPL's monthly rate also will drop by $15.29 for that level of usage to $95.43 per month. Most of the reduction could be offset, though, if the commission in January approves a requested base rate increase. Company spokesman Mayco Villafana said the amount of the potential base rate increase has not yet been calculated due to the effect of the refund, but it will be smaller than the decrease approved today.

The commission approved decreases of 5 cents for Progress Energy Florida customers, bringing the 1,000 kilowatt hour bill to $127.26. Progress also is seeking a base rate increase of $9.66 for that usage level. Its case also will be decided in January.

Tampa Electric Co. customers consuming 1,000 kilowatt hours will get a $1.46 reduction for a monthly bill of $113.21.

Besides fuel, the billing changes included special rates to cover energy conservation, capacity and environmental costs. Some of those charges went up and others dropped, but the net results were decreases for each of the three utilities.

FPL, the state's largest electric company, is based in Juno Beach and serves 4.5 million homes, businesses and other customers in South Florida and along most of the state's east coast.

St. Petersburg-based Progress has about 1.7 million customers in central and north Florida while TECO has 600,000 customers in the Tampa area.

The commission will adjust Pensacola-based Gulf Power Co.'s rates in December.

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