Florida’s Public Service Commission (PSC) today approved interim rates for Progress Energy Florida, Inc. (PEF), which will increase the average 1,000 kWh residential bill by 41 cents. The interim rate increase will take effect in July 2009.
An interim rate increase can be requested by utilities that have petitioned the PSC for a permanent base rate increase. The interim rates are in effect during the base rate proceeding, a lengthy process that involves discovery, research, and testimony from customers, the company, and intervenors. PEF’s petition for a rate increase was filed with the Commission in March.
“Interim rates will be credited back to customers, with interest, if the Commission determines the rates were not fully justified,” said PSC Chairman Matthew M. Carter II. “The Commission conducts a comprehensive investigation to make sure both the requested interim and permanent base rate increases are warranted and appropriate.”
The Commission also approved cost recovery for an upgrade to switch four generating units from oil to natural gas at PEF’s Bartow facility. Costs for the repowering project will be examined as part of PEF’s base rate increase request. The project will increase an average 1,000 kWh residential bill by $4.11, which is subject to refund with interest. The recovery charges will take effect in July 2009.
PEF serves more than 1.6 million customers across 20,000 square miles in 35 Florida counties.
The PSC is committed to making sure that Florida's consumers receive their electric, natural gas, telephone, water, and wastewater services in a safe, affordable, and reliable manner. The PSC exercises regulatory authority over utilities in the areas of rate base/economic regulation; competitive market oversight; and monitoring of safety, reliability, and service.
For additional information, visit www.floridapsc.com.