The Florida Public Service Commission (PSC) today directed Progress Energy Florida (Progress) to refund more than $7.6 million to its customers for excessive fuel costs in 2006 and 2007. The utility serves more than 1.6 million customers in 35 counties throughout Florida and uses coal to generate electricity at its Crystal River Units 4 and 5 (CR 4 and CR5).
In 2007, the PSC ordered Progress to refund more than $13.8 million to its customers for excessive fuel costs paid from 2003 to 2005. The refund was a result of the company burning a more expensive coal blend. Today’s decision is an offshoot of that earlier case and the Commission’s ongoing review of fuel costs.
Based on methodology established in that case, the Commission today found that Progress incurred $7,698,907 in excess costs for CR4 and CR5 coal purchases during 2006 and 2007. This amount will be refunded to customers with interest in 2010.
“Today’s decision should encourage electric utilities to seek the lowest cost sources for their fuel purchases,” said PSC Chairman Matthew M. Carter II.
Although Progress argued that its coal purchases for CR4 and CR5 were prudent and saved customers $3.1 million during 2006 and 2007, the PSC disagreed.
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.