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Electric Rate Hike Shocks Pasco Leaders

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By Carl  Orth | The Suncoast News

Published: November 15, 2008

NEW PORT RICHEY - A jump in Progress Energy Florida electric rates of nearly 25 percent 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 recent steep decline in crude oil prices should be factored into the PSC's rate decision for Progress Energy, Giordano said Fasano believes.

Under state law, fuel costs are passed on to customers with no markup. The price of oil represents only about 10 percent of the cost of the electricity Progress Energy generates, a company spokeswoman, Suzanne Grant, said.

Fasano, Giordano said, "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." That is especially true now that people are facing the cost of heating their homes during winter, he said.

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 rate 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."

Pasco Commissioner Jack Mariano urges PSC to review the decision since energy costs are dropping. "Our people are struggling. Our businesses don't need any extra expense either."

He wants to see more focus on solar energy.

PSC officials asked to review the rates in March, Grant, the Progress Energy spokeswoman, said Thursday.

"There's never a good time to raise rates," Grant remarked.

"We can't control the price of the commodities,"

The price of coal remains about double the price a year ago, Grant emphasized. Coal generates about 37 percent of the utility's electricity.

Natural gas has about the same share while nuclear represents 14 percent, oil 10 percent and alternative fuels 2.5 percent.

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.

Carl Orth can be reached at 727-815-1068 or corth@suncoastnews.com.

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