Fuel expenses are
raising electric bills
Sep 8, 2005 - Tampa Tribune, Fla.
Author(s): Will Rodgers
Sep. 8--The base rate for electric customers of Progress Energy
Florida Inc. won't increase for at least two years, but consumers'
overall bills will rise because of skyrocketing fuel costs.
The Florida Public Service Commission unanimously approved an
agreement Wednesday that ended Progress Energy Florida's pursuit of an
annual $206 million increase in base rates. The settlement keeps the St.
Petersburg-based utility from raising base rates through 2007. Base
rates provide revenue for operations, maintenance and profits.
In 2008, Progress Energy Florida will be allowed to include the cost
of two power generating units -- one already built and one being planned
-- at its Hines Energy Complex in Polk County. The Hines 2 unit that
opened in 2003 cost about $226 million to build. No construction cost
estimates were available for the proposed Hines 4 unit.
Despite the agreement, people can expect to begin paying more for
electricity later this year because of the utility's rising fuel costs.
Progress Energy Florida, a subsidiary of Raleigh, N.C.-based Progress
Energy, said Wednesday that it plans to ask commissioners soon for an
increase in the fuel charge, a portion of the bill on which the company
does not profit. The typical consumer who uses 1,000 kilowatt-hours of
electricity pays $97.78 a month for power from Progress Energy Florida.
"Like other utilities around the country, Progress Energy's cost of
fuel used in electricity generation has increased significantly in
recent months," a news release said.
In a related issue, Rudolph "Rudy" Bradley, a Public Service
commissioner from St. Petersburg, was left off a short list this week of
possible PSC appointees in January. Candidates on the list will fill a
current vacancy and two coming vacancies, which includes Bradley's seat.
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