TBO.com - TBO is Tampa Bay Online

Suncoast Pasco News

Progress Energy Electric Rates To Go Down

ADVERTISEMENT

By Carl  Orth | The Suncoast News

Published: March 21, 2009

NEW PORT RICHEY - The power drain on the wallets of Progress Energy Florida customers will drop some $15 to $18 a month on typical bills by April.

Even so, state lawmakers could turn the lights out on a fee the utility began charging for preconstruction costs of a nuclear power plant that could take another decade to complete.

Customers had complained bitterly about the Jan. 1 rate increase of nearly 25 percent. The cost of 1,000 kilowatt hours went up to $137.87 at that time, but will go back down to $122.79 under the rate reduction approved this week by state regulators.

"We worked hard to provide price relief for our customers during this unprecedented economic climate," Jeff Lyash, president and chief executive officer of Progress Energy Florida, noted in a press release.

The utility lowered the fuel charge, company officials explained.

The company also lowered the nuclear recovery charge from $11.42 to $3.62 per 1,000 kWh.

But that might not satisfy state lawmakers, who have legislation on the table to suspend the nuclear recovery charge entirely for a couple of years to study other options.

Progress Energy executives are "going to have to convince the Legislature they deserve the money in the first place," Greg Giordano said as chief legislative assistant to state Sen. Mike Fasano, R-New Port Richey.

Fasano sponsored the bill that, if passed, would repeal the 2006 decision to allow the nuclear advance fee, Giordano explained. Progress Energy Florida would have to refund the money charged to customers since Jan. 1.

Company officials are open to discussion, spokeswoman Suzanne Grant said.

"We are working with legislators to find ways to continue to explore alternative ways to encourage nuclear development while lessening short-term impact on our customers because of this challenging economy," Grant said.

Fasano still questions why the cost estimate ballooned so much during the past two years for the Levy County nuclear generating station Progress Energy Florida wants to build. The project could take more than a decade to complete.

Progress Energy might issue bonds to replace revenue from the nuclear advance fee, Giordano said.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT