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On Mon., Jan. 11, 2010, the Florida Public Service Commission (PSC) approved $132 million - or 26 percent – of Progress Energy Florida’s $499 million base rate request. The request was filed with the PSC in March 2009 to ensure that the company’s electric system investments continue to meet the reliability and performance expectations of regulators and more than 1.6 million customers.
“We know that there is never a good time to raise rates,” said Vincent Dolan, president and chief executive officer of Progress Energy Florida. “However, the PSC decision is particularly harmful because it fails to recognize the true costs associated with providing a secure, reliable electricity system.”
Progress Energy Florida is reviewing and evaluating the PSC’s decision to determine how to best proceed to ensure we are able to continue meeting our customer’s evolving energy needs.
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Customer impact
Based on the PSC’s decision, customer rates are expected to remain flat in the short term. The $132 million approved is currently represented on the bill through the “rate adjustment” line that was added in July 2009, when the PSC approved a temporary collection of costs for the Bartow repower project. The PSC’s Jan. 11 decision made that portion of the bill permanent.
The Bartow repowering project is one example of the significant investments the company has made in its infrastructure for the benefit of our customers. Specific customer benefits of the Bartow project include:
- Cleaner air with significantly reduced emissions from the plant
- Lower fuel costs: In 2010 alone, it is estimated customers will save $83 million in fuel costs as a result of switching from oil to natural gas.
- Greater reliability: The project more than doubled the generating capacity of the plant while increasing reliability to the company's electric system.
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Committed to your energy future
Progress Energy Florida is committed to providing customers clean, reliable, affordable power now and in the future for our more than 1.6 million customers. The company is planning for customers’ energy needs using a balanced approach including energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system.
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