Progress Energy Florida Reduces Fuel Costs, Customer Bills
Posted on: Tuesday, 4 September 2007, 15:09 CDT
ST. PETERSBURG, Fla., Sept. 4 /PRNewswire-FirstCall/ -- Progress Energy Florida (PEF) today asked state regulators to approve a cost adjustment to reflect declining charges for fuel and other factors. If approved, residential electric bills would decrease by $2.27 for 1,000 kilowatt-hours (kWh), to $108.07, beginning in January 2008.
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The request filed today with the Florida Public Service Commission (PSC) includes projected fuel and capacity costs through December 2008 for a total decrease of $150.9 million. If approved by the PSC, residential customer bills would decrease by more than 2 percent per 1,000 kWh beginning next year.
The fuel cost reduction is primarily driven by lower-than-expected net fuel and capacity costs. On an annual basis, Progress Energy Florida manages the procurement of about $2 billion in fuel to generate electricity at its 14 power plant sites serving 35 counties.
By law, fuel costs and transportation charges are passed directly to the company's customers. Progress Energy Florida makes no profit on fuel. The company's base rate, which includes the non-fuel costs of providing electricity to customers, has remained relatively stable for more than two decades. In the past decade, Progress Energy Florida has added nearly 600,000 new customers.
"We actively pursue efficiency in fuel costs and are pleased to pass along these savings to our customers," said Jeff Lyash, president and CEO of Progress Energy Florida. "We maintain the most diversified fuel mix of any utility in the state, and are pleased that our fuel procurement practices and strategies, as we expect, are paying dividends for our customers."
Based on a rate settlement approved in 2005, the cost of Hines Unit 4 - a 500-megawatt natural gas-fired plant in Polk County - will be added to base rates when it begins commercial service around December 2007. In addition, the cost of Hines Unit 2 will be moved into base rates from the fuel clause. Those changes will increase the average customer bill by an expected $1.88 per 1,000 kWh in December. Even with this increase, the overall customer bill is still expected to decrease by more than 2 percent or $2.27 per 1,000 kWh in January.
PEF uses coal, oil, natural gas and nuclear power to maintain the most diverse fuel mix of any utility in the state, which helps mitigate price volatility. To further encourage the efficient use of energy, a two-tiered fuel rate for residential customers charges a lower rate for the first 1,000 kWh and a higher one for additional usage.
PEF offers a variety of energy-efficiency tips to help customers save money on their bills, including:
-- Set the air conditioning system thermostat to the highest comfortable setting. In warm weather, each degree above 78 can save between 7 percent and 10 percent on electric bills. -- Inspect air conditioning system filters monthly and clean or replace them as needed -- Reduce the temperature setting on the electric water heater to 120 degrees -- Use ceiling and portable fans to keep air circulating, but turn them off in unoccupied rooms -- Close blinds, drapes and shades during the hottest part of the day. This keeps the sun's rays from heating your house. Other PEF programs designed to assist customers include:
Home Energy Check: PEF offers a free home-energy inspection that surveys household insulation, duct work, water heating, cooling and heating systems and overall efficiency. Customers can complete a home-energy check online, or by mail, phone or through a visit by a PEF representative. For more details on this and other energy-efficiency programs, visit http://www.savethewatts.com/ or call 888-302-8348.
Budget Billing: Customers on fixed incomes or others who need a bill that is a consistent amount are encouraged to take advantage of Budget Billing. The program is free and helps customers forecast monthly energy costs and better plan their finances. Customers pay an average amount that is approximately the same each month. The difference between the budget billing amount and the actual amount also appears on the bill.
Energy Neighbor Fund: Customers who need assistance paying their electric bills can receive help through the Energy Neighbor Fund. All funds collected from participating PEF customers and employees are distributed locally through social service agencies to neighbors in need. The fund was established in 1988 to assist customers who are experiencing temporary financial difficulties.
For more information, visit http://www.progress-energy.com/ or call 800-700-8744.
Progress Energy Florida, a subsidiary of Progress Energy , provides electricity and related services to nearly 1.7 million customers in Florida. The company is headquartered in St. Petersburg, Fla., and serves a territory encompassing more than 20,000 square miles including the cities of St. Petersburg and Clearwater, as well as the Central Florida area surrounding Orlando. Progress Energy is the 2006 recipient of the Edison Electric Institute's Edison Award, the industry's highest honor, in recognition of its operational excellence. In 2005, the company also received the prestigious J.D. Power and Associates Founder's Award for dedication, commitment and sustained improvement in customer service. For more information about Progress Energy, visit the company's Web site at http://www.progress-energy.com/.
Caution regarding forward-looking statements:
This release contains forward-looking information within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Progress Energy, Inc., Florida Progress Corporation and Florida Power Corporation (collectively, the "Company") caution that prospective rates are dependant on a number of factors that are not within the control of the Company. These factors include the cost of fuel, adverse weather, energy demand, the costs to comply with environmental and other regulations, taxes and other factors. Additionally, regulatory approval of requested fuel price cost adjustments cannot be guaranteed by the Company. The Company expressly disclaims any duty to update any of the forward-looking information.
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Progress Energy Florida
CONTACT: Media Contact: Progress Energy Florida 24-hour media line ,+1-866-520-6397
Web site: http://www.progress-energy.com/http://www.savethewatts.com/
Source: PRNewswire-FirstCall
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