The Florida Public Service Commission (PSC) today denied any additional revenue increases for Progress Energy Florida (PEF) as part of its $500 million base rate request. The Commission also reduced PEF’s return on equity from the requested 12.54 percent to 10.50 percent.
The Commission voted to use a portion of PEF’s depreciation surplus to zero out any operating revenue increase. Base rates will not be affected. Adjustments were made in a number of areas, including several expense categories, a depreciation study, salaries and benefits, salary increases, and incentive compensation.
In March 2009, PEF filed a petition with the PSC requesting a base rate increase. The Commission held nine customer service hearings in PEF service territory in July 2009, where PSC Commissioners heard from hundreds of customers about the utility’s proposed rate increase and its quality of service. In September, a technical hearing was held in Tallahassee, where evidence and testimony was presented from witnesses for PEF and intervenors in the case.
PEF provides electric service to more than 1.6 million customers in 35 Florida counties. The utility was last granted a base rate increase in 1993.
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.