ST. PETERSBURG, Fla., June 1 /PRNewswire-FirstCall/ -- The Florida Public Service Commission (PSC) today unanimously approved Progress Energy Florida's rate settlement agreement that will keep customers' base rates stable until the end of 2012.
The agreement will take effect after the PSC issues its final order, which is expected in about two weeks.
"This agreement is in the best interest of our customers, the state, the company and the communities we serve," said Vincent M. Dolan, president and chief executive officer of Progress Energy Florida. "This is a constructive settlement that provides our customers economic relief during these challenging times."
The settlement includes the following provisions:
- Base rates will remain stable until the end of 2012.
- Progress Energy will withdraw pending motion for reconsideration and accounting order petitions related to the 2010 base rate decision.
- The company's midpoint for return on equity (ROE) will remain at 10.5 percent. If the company's ROE falls below 9.5 percent at any time before Dec. 31, 2012, the company can seek a rate adjustment.
- The company may reduce its depreciation reserve by up to $150 million in 2010, up to $250 million in 2011, and up to the remaining balance in 2012.
Residential customers who use 1,000 kilowatt-hours a month pay $48.58 in base rates now. While the settlement will keep base rates stable, customer bills may fluctuate as certain charges, such as fuel, which includes the cost of coal and natural gas used to generate electricity, or environmental improvements, are filed and reviewed annually with the PSC. For a thorough explanation of a residential bill, visit www.progress-energy.com/floridarates.
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.
SOURCE Progress Energy