Progress Energy Florida Electric Bills Will Be Lower in 2011

ST. PETERSBURG, Fla., Nov. 30, 2010 /PRNewswire/ -- The Florida Public Service Commission (PSC) has approved Progress Energy Florida's request to lower customers' bills in 2011. The changes requested by the company will result in an annual savings of more than $90 for residential customers using 1,000 kilowatt-hours (kWh) per month. A bill for a residential customer using 1,000 kWh will be $119.34, beginning with January 2011 billing, compared to $126.90 currently.

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The six percent reduction resulted from Progress Energy's annual filings projecting costs for fuel and purchased power, environmental projects, conservation programs and new nuclear generation. Based on the PSC's decisions, these changes will save a residential household $7.56 per month on a 1,000 kWh bill compared to current bills. Commercial and industrial customers will also see decreases of up to 6 percent.

"Our efforts to control costs through effective fuel management and efficient operations are resulting in savings for our customers," said Vincent Dolan, president and CEO of Progress Energy Florida. "We know every penny counts as many of our customers continue to struggle with the lingering recession. Our more than 4,000 Florida employees are focused on keeping electricity safe, reliable, environmentally sound and as affordable as possible for the 1.6 million households and businesses that depend on us."

The cost of fuel and purchased power is down due to the company's diligent cost management strategies and lower commodity prices for coal and natural gas, the company's two largest fuel sources.

Investments in upgraded environmental controls at Progress Energy's two largest coal-fired units, Crystal River 4 and 5, completed in the summer, now allow the company to use lower-cost coal while reducing the average annual emissions from the plant by over 80 percent (mercury reduced by 80 percent, NOx reduced by approximately 93 percent and SO2 by approximately 97 percent). In addition, the decision to postpone major construction activities on the proposed Levy County nuclear project until after the federal licensing is complete has further lowered near-term nuclear costs for customers by more than 20 percent.

The base rate portion of the customer bill will remain stable through 2012 following a June agreement Progress Energy pursued with consumer advocate groups, the Florida Attorney General and the Office of Public Council.

Progress Energy remains focused on operating safely and efficiently without compromising the service and reliability our customers and regulators expect. The company actively manages expenses, streamlines processes and uses technology to keep costs as low as possible for customers.

The PSC decision on the nuclear charge was made on Oct. 26. The PSC hearings and votes on the environmental and energy conservation charges took place Nov. 1. The lowered fuel charge was finalized on Nov. 30.

To help customers use energy wisely and manage their bills, Progress Energy Florida offers a variety of educational opportunities, services and technologies. For more information, visit www.savethewatts.com or call (800) 700 -8744.

Progress Energy Florida, a subsidiary of Progress Energy (NYSE: PGN), provides electricity and related services to more than 1.6 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 Florida is pursuing a balanced approach to meeting the future energy needs of the region. That balance includes increased energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. For more information about Progress Energy, visit www.progress-energy.com.

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SOURCE Progress Energy Florida