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LOUIS HAUPreviously granted a 5.5 percent increase, the utility asks for 6.2 percent to cover hurricane expenses.
Progress Energy Florida has already asked state utility regulators for permission to raise its monthly rates to cover higher fuel and environmental-compliance costs. Now the St. Petersburg utility is seeking a larger rate hike, citing hurricane expenses.
In a filing Monday with the Florida Public Service Commission, Progress regulatory services director Javier Portuondo said the company is seeking to pass on $84.6-million in fuel costs to customers in 2005, $25.4-million more than expected.
That means residential customers would pay $94.64 for the first 1,000 kilowatt hours of electricity they consume in a month, which represents an increase of $5.53, or 6.2 percent, over the current rate of $89.11. The company had requested a rate hike of $4.88, or 5.5 percent.
The higher rate, if approved, would pay for fuel-related expenses incurred during the recent hurricanes that ravaged Progress' Florida service territory, Portuondo said.
They include costs related to the precautionary shutdown of some of its power plants; chartering additional coal barges to conserve and replenish coal inventories diminished by weather-related transportation delays; and natural-gas purchases to make up for weather-related interruptions in gas supplies.
Investor-owned utilities can ask the PSC for permission to pass on increases in fuel costs to customers, just as they are required to pass on savings that result when such costs fall.
Progress also expects to request an additional rate hike to cover storm-restoration expenses.
Public Counsel Harold McLean, whose office represents the interests of Florida utility customers, said Wednesday the widespread power outages suffered by Progress and other electric utilities during the hurricanes should have lowered their fuel consumption, not increased it. It is an issue McLean said will be discussed during the PSC's hearings on utility fuel costs Nov. 8-10.
- Louis Hau can be reached at 813 226-3404 or hau@sptimes.com