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Progress Energy rate hike case postponed

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BY CARL ORTH

THE SUNCOAST NEWS

Published: October 31, 2009

NEW PORT RICHEY - The news this week might have electrified many Pasco customers of Progress Energy Florida - a possible rate increase has been postponed by at least a few months.
Florida Public Service Commission put off a vote until January concerning the company's rate hike request.

The PSC had scheduled a vote Nov. 19 on revenue requirements of Progress Energy Florida. Instead, the agency will wait until its two new commissioners are seated and acclimated.

Gov. Charlie Crist recently appointed Benjamin "Steve" Stevens and Dave Klement as replacements for incumbents on the five-member board.

That will push back a vote until Jan. 19 in the Progress Energy case.

The PSC then is scheduled to lock in new rates for the company on Jan. 28.
Progress Energy Florida executives had sought to make the base rate changes effective Jan. 1.

"We're reviewing the commission's decision and looking at our options," company spokeswoman Cherie Jacobs said.

State Sen. Mike Fasano and state Rep. John Legg applauded the delayed vote in the Progress Energy case.

"It is my hope that the (PSC) will take this time to get their house in order before making such an important decision," Legg said this week.

However, Fasano, R-New Port Richey, and Legg, R-Port Richey, are still outraged about allegations of cozy arrangements between PSC staff members and Florida Power and Light executives while the South Florida utility was seeking a rate increase.

The possible lapses in ethics helped precipitate the governor's decision to appoint two new PSC commissioners instead of extending the terms of the incumbents.

"I feel strongly that there will be some hearings and legislation," Legg said this week.

He said he is coordinating with Fasano on writing bills to outline PSC reforms.

"The PSC should fully investigate all ex parte communication between the Commission, its staff and the utilities," Legg continued. "The potential rate increases would adversely impact the lives of many Floridians; the decision should be made with prudence and transparence.

"While I am grateful for the delay, it is my hope that upon further consideration the Commission will ultimately decide to reject the requested utility rate increase."

In the meantime, Fasano has indicated he and fellow lawmakers intend to resurrect a proposal to revise or repeal the advance fee for nuclear power projects. Progress Energy Florida can charge customers now for a Levy County plant that might go into operation within a decade.

"Sen. Fasano is not going to let this issue drop," Greg Giordano, Fasano's chief legislative assistant, said. "He's even more passionate about this issue" after allegations about PSC lapses.

The advance nuclear fee had been considered separately from the base rate increase pending until January.

PSC on Oct. 16 approved $206,907,726 for Progress Energy to upgrade its existing nuclear generating plant at Crystal River, and the construction of its proposed nuclear power plants, Levy Units 1 and 2.

The projects would add 2,380 megawatts of power, enough to serve 1.3 million homes.

Until lawmakers finish writing their proposals for the 2010 session of the state Legislature, Progress Energy Florida officials will refrain from commenting about potential legislation, Jacobs said.

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

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