FLORENCE, S.C. (June 29, 2011) – The Public Service Commission of South Carolina (SCPSC) has approved an increase in the fuel and energy-efficiency components of the rates Progress Energy customers pay.
The new rates, which take effect July 1, will raise the monthly price of 1,000 kilowatt-hours of electricity for a residential customer from the current $99.15 to $103.85. The change represents an increase of 4.7 percent for residential customers.
The residential customer change includes $3.45 per 1,000 kWh for fuel used in power generation and $1.25 for energy-efficiency programs and measures made available to South Carolina customers.
After two years of decreases, the costs of coal and other fuels have increased in the last year. Progress Energy Carolinas continues to work to mitigate cost increases by negotiating the lowest possible cost for fuels on behalf of customers.
The average increase is about 4.8 percent for commercial customers and 4.6 percent to 5.3 percent for industrial customers.
The fuel portion of the company's rates is adjusted annually by the PSC to reflect the actual cost of fuel the utility uses to produce electricity to meet customer demand. By law, Progress Energy does not make a profit from the fuel charge. The company also files annually to recover the costs of implementing programs designed to help reduce energy consumption and save customers money on their energy bills.
Progress Energy has not sought an increase in the other major component of rates, the base rate, since 1988.
Progress Energy maintains a diverse mix of power plant resources – including nuclear, coal, natural gas, oil, hydroelectric energy and renewable energy, including solar and biofuels – to maintain a reliable supply of electricity for the utility's customers while keeping fuel expenses as low as possible.
Progress Energy encourages customers to learn all they can about using energy wisely – to save energy and money. Customers can save up to 20 percent on their energy costs by making simple changes at home. Cleaning air filters, replacing incandescent light bulbs with compact-fluorescent bulbs, adjusting the thermostat and sealing windows and doors can result in noticeable savings. For more energy-efficiency tips, visit www.savethewatts.com. Customers also can learn about energy-efficiency programs and incentives at www.progress-energy.com.
Progress Energy (NYSE: PGN), headquartered in Raleigh, N.C., is a Fortune 500 energy company with more than 22,000 megawatts of generation capacity and approximately $10 billion in annual revenues. Progress Energy includes two major electric utilities that serve about 3.1 million customers in the Carolinas and Florida. The company has earned the Edison Electric Institute's Edison Award, the industry's highest honor, in recognition of its operational excellence, and was the first utility to receive the prestigious J.D. Power and Associates Founder's Award for customer service. The company is pursuing a balanced strategy for a secure energy future, which includes aggressive energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. Progress Energy celebrated a century of service in 2008. Visit the company's website at www.progress-energy.com.
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