FPSC OKs Stable Rates for Florida – Analyst Blog

Progress Energy Florida got unanimous consent from the Florida Public Service Commission (FPSC) for its rate settlement agreement. The agreement will keep customers’ base rates in Florida stable until the end of 2012. Progress Energy Florida is a subsidiary of Progress Energy Inc. (PGN).

 

The agreement is expected to be effective in about two weeks, once the FPSC issues its final order.

 

Currently, residential customers who use 1,000 kilowatt-hours a month pay $48.58 in base rates. The settlement once effective will keep base rates stable. However, customer bills may vary with 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 FPSC.

 

The agreement also settles pending motion for reconsideration and accounting order petitions related to the 2010 base rate decision. Further, under the agreement, Progress Energy could seek a rate adjustment if its return on equity falls below 9.5%, any time before Dec 31, 2012.

 

Progress Energy Florida, a subsidiary of Progress Energy, provides electricity and related services to more than 1.6 million customers in Florida. It has a generation capacity of over 10,000 MW. The company is headquartered in St. Petersburg, Florida, and serves a 20,000-square mile territory in Florida.