Electric Rate Hike May Be Deferred
THE VILLAGES - Progress Energy Florida customers in The Villages and elsewhere just might catch an even larger break on their electric bills.
Two state legislators proposed bills this week to defer most of the average 25 percent electricity rate hike granted in November by the state Public Service Commission to the investor-owned utility.
Customers, who paid the price of that impact in their January electric bills, would receive credits for the amount of increase they've already paid if Senate President pro tem Mike Fasano, R-New Port Richey, and Rep. Peter Nehr, R-Tarpon Springs, prevail in the
legislation.
The recommendation to defer the 25 percent rate hike is bundled in House and Senate bills related to the recovery of costs for siting, design, licensing and construction of nuclear power plants.
"It could put a moratorium on the collection of the rate increase that was granted for advance cost recovery for the nuclear power plants in Levy County," Fasano chief legislative assistant Greg Giordano said. "It's also subject to refund."
Fasano's concern centers on representations made by Progress Energy Florida officials during the 2006 legislative session, when the Legislature enacted new law in support of more nuclear plant development in the state, Giordano said.
Only the cost now to build the new plants has increased to $17 billion, Giordano said, compared with an original estimate of $8 billion.
"The senator wants to give them an opportunity to come back and justify how they came to that figure," Giordano said.
If utility officials can't justify the new cost estimate, Giordano said, then the Legislature could enact a moratorium for up to one year. Legislators then could consider the possibility of repealing the 2006 law.
"All the money up to the moratorium would be subject to refund," Giordano added.
In light of the opposition, the electrical utility petitioned the PSC last month to voluntarily scale back the average 25 percent rate hike by about half.
"It's under review," Progress Energy Florida spokesman Tim Leljedal said about the petition. "We expect a decision within the next couple of weeks."
Meanwhile, Leljedal said, the utility is committed to working with the Legislature to ensure the development of new nuclear power.
"We have been, and will continue working, with the Legislature to provide nuclear development, while also providing short-term relief to the customer," Leljedal said.
If the PSC approves the utility's plan to scale back prices, consumers would pay about $15 less in their April electric bill on the average monthly consumption of 1,000 kilowatt-hours of electricity, Jeff Lyash, Progress Energy Florida president and chief executive officer, stated in a letter to the state agency.
In January's bills, customers who used an average of 1,000 kilowatt-hours paid about $27 more a month than they did in December's bill.
The letter Lyash filed with the PSC also referred to the utility's plans to seek a permanent increase in base electric rates, effective Jan. 1.
"Although we have managed to maintain our base rates at essentially the same levels they were at 25 years ago, our cost-management efforts and customer growth can no longer keep pace with our necessary capital and operation and management requirements to deliver reliable electric service and to meet the energy goals of this state," Lyash wrote.
David R. Corder is a reporter with the Daily Sun. He can be reached at 753-1119, ext. 9066, or at [email protected].
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