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Hernando Today

Progress Energy has 'real needs and real costs'

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By TONY HOLT

Hernando Today

Published: November 7, 2009

TALLAHASSEE - The cost for getting electricity kept growing, but the prices for customers remained fairly even during the past 20 years, according to Progress Energy.

Now the utility company is giving in to the latest financial strains.

Environmental demands, tree-cutting, storm protection and construction at the power plant in St. Petersburg have all contributed to the company's request to hike monthly customer costs by roughly 8 percent, said Progress Energy spokeswoman Cherie Jacobs.

"It's never a good time to raise rates," she said. "We know our customers are being affected by the economy like everyone else. We have real needs and real costs to consider."

The Florida Public Service Commission is reviewing the request.

Two new members of the commission recently were appointed by Gov. Charlie Crist. A hearing took place under the old board more than a month ago, but Progress Energy requested more time for the new board to review the proposal, Jacobs said.
Progress Energy serves roughly 10,400 customers in Hernando County. It has about 1.7 million customers across North and Central Florida.
Withlacoochee River Electric Cooperative has the most customers in the area. It purchases its electricity from Seminole Electric Cooperative in Tampa and there are no plans to increase the base rate, said Withlacoochee spokesman David Lambert.

Fuel costs have decreased, but electric companies do not make a profit from that part of the bill, Jacobs said.

Customers could have a temporary reduction of 5 cents per month beginning in January if the same state commission grants the request by Progress Energy.

If it grants the base rate increase, that would go into effect in March. Such a price hike would be $9.66 per month for a customer using 1,000 kilowatt hours, Jacobs said.
Progress Energy announced early this year customers would receive an 11 percent decrease. Those savings began in April and will last through December.

The average household had its monthly electric bill drop from $137.87 to $122.79. If the price hike is approved, costs will jump upward to about $127.26, according to Progress Energy.

The Associated Press reported earlier this week that Progress Energy was among three regional power companies ordered by the state to reduce their rates.

Florida Power and Light Co. was required to refund $364 million to its customers because its current fuel cost recovery rate was too high and Tampa Electric Co. (TECO) customers are expected to receive a $1.46 reduction on their monthly bills.

Jacobs said the Associated Press was wrong to lump Progress Energy into the report because its pending 5 cent decrease was requested by the company, not mandated by the commission. It also hasn't yet been approved.

Reporter Tony Holt can be reached at 352-544-5283 or wholt@hernandotoday.com.

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