RALEIGH, N.C., Nov. 24 /PRNewswire-FirstCall/ -- Progress Energy Carolinas customers in North Carolina will see a reduction in the overall price they pay for electric service beginning in December.

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The N.C. Utilities Commission has approved changes to portions of retail electric rates used to pay for power plant fuel, energy-efficiency programs and solar and other renewable energy sources. The changes, which take effect Dec. 1, will result in a savings of $4.20 per year for a household using 1,000 kilowatt-hours (kWh) of electricity per month. The new rate will provide savings for commercial and industrial customers as well.

For the residential customer using 1,000 kWh, the bill will be reduced to $106.43 from the current $106.78. Accounting for the reduction are lower costs for coal, natural gas, oil, uranium and power purchased from other utilities. The fuel expense reduction is $0.45 per 1,000 kWh.

The new residential rate includes a 19-cent/1,000 kWh reduction for demand-side management and energy-efficiency program costs, reflecting a later start for some programs than initially planned. The new rate also reflects a 29-cent/1,000 kWh increase to cover the cost of purchasing renewable energy. In the last 18 months, Progress Energy Carolinas has signed contracts to purchase solar energy from a number of plants around the state. The company also purchases electricity produced from biomass, and is seeking additional biomass energy projects.

Progress Energy Carolinas files annually to adjust the portion of its retail rates used to pay for fuel. By law, the company makes no profit from the fuel component of rates. Since 2008, a portion of retail rates also goes toward the company's costs to meet state requirements for energy efficiency and renewable energy. The N.C. Utilities Commission reviews Progress Energy Carolinas' rates annually.

"In these difficult economic times, we know that every penny counts, and we're doing all we can to manage our business as efficiently as possible while continuing to provide reliable, affordable and responsible energy for our customers," said Lloyd Yates, president and CEO for Progress Energy Carolinas. "We're committed to a balanced solution for meeting the region's energy needs, including expanded energy efficiency, renewable energy and state-of-the-art plants."

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 than 100 energy-efficiency tips, visit the company's Web site at www.savethewatts.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 $9 billion in annual revenues. Progress Energy includes two major electric utilities that serve approximately 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 Web site at www.progress-energy.com.

SOURCE Progress Energy

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