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Progress Energy Rate Hike Generates Protests

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By Carl  Orth | The Suncoast News

Published: November 13, 2008

NEW PORT RICHEY - A 25 percent jump in Progress Energy electric rates is generating some protests among Pasco officials and residents.

The utility got approval Wednesday from state regulators because of higher fuel costs.
In January, the cost of 1,000 kilowatt hours will increase by $27.28 to $137.87.

State Sen. Mike Fasano, R-New Port Richey, is in "total disagreement with the Public Service Commission's decision to grant this huge rate increase," according to his chief legislative assistant, Greg Giordano.

The timing of the rate hike upset many people because the cost of a barrel of crude oil dropped below $60.

Fasano "believes with oil prices dropping to the lowest levels in recent memory that the decreasing cost of fuel should be factored into the rates the power companies charge their customers," Giordano said Thursday.

The senator "is concerned that a time when so many people are struggling to pay their daily bills they should not be burdened with increased electricity rates, especially when those rates will go into effect when people will begin heating their homes for the cooler winter months ahead," Giordano concluded.

On a personal note, Giordano said his own family of five had been conserving by drying laundry on a clothesline instead of in an electric dryer. "Some of our friends are doing the same thing. It appears that whatever we may save by not running our dryer will be eaten up by the rate increase."

State Rep. John Legg, R-Port Richey, also was unhappy with the PSC decision.

"It is unfortunate the PSC granted such a significant rate increase," Legg said in an e-mail response Thursday. "While we are finally seeing gas prices decrease, those savings, I am afraid, may be out the door and go to pay for increased electrical rates."

The utilities told PSC regulators the increases are needed to cover higher costs for oil, natural gas and coal, which are used to generate electricity.

Monthly electric bills will increase 13 percent, but that's on top of an 11 percent increase approved last month to pay for the preconstruction costs of a proposed nuclear plant in Levy County and the expansion of the utility's existing nuclear plant in Crystal River.

About 37 percent of the power generated by Progress Energy comes from coal. Although coal prices have dropped, they are still twice what they were last year, said Progress Energy spokeswoman Suzanne Grant.

Under state law, fuel costs are passed on to customers with no markup.

"We don't make a profit, but we do actively work to get fuel at the best price possible through our hedging program," Grant said. "Our strategies have saved customers more than $600 million since 2003."

Excerpts from a Tampa Tribune article were used in this dispatch.
Carl Orth can be reached at 727-815-1068 or corth@suncoastnews.com.

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