Progress Announces Rate Reductions

Progress Energy customers will see an 11-percent decrease in their monthly bills beginning in April.

The savings is expected to last through the year.

"This is the second time we've been able to do this during this current pricing structure," said Progress Energy spokeswoman Suzanne Grant.

The previous price decrease issued by Progress Energy was in October 2008, she said.

The average household will see its monthly electric bill drop from $137.87 to $122.79, which is a savings of $15.08, Grant said.

The approved fuel cost reduction partially comes from a decrease in the cost of natural gas, which reportedly has seen sustained declines during the past several months.

"Often times, natural gas prices go up and down, but this time it stayed down and that gave us the opportunity to lower prices and hopefully they will stay down," said Florida Public Service spokeswoman Kirsten Olsen.

Florida Public Service, out of Tallahassee, announced Tuesday it approved the reduction in fuel and nuclear cost recovery charges for Progress Energy customers.

The reduction in nuclear cost recovery charges was approved following the company's request to defer recovery of some of this year's preliminary construction costs for a nuclear plant, which is to be built in Levy County, according to FPS.

The combination of the deferred recovery charges and the decreases in natural gas costs were the main reasons for the lowered electric bills, Grant said.

Olsen said the lower prices would likely continue through the remainder of 2009, but the possibility still looms of a hurricane or other natural disaster, which could sharply increase fuel costs.

Progress Energy has about 10,400 customers in Hernando County, Grant said.