Hearings scheduled to discuss Progress Energy rate increase

Florida’s Attorney General is urging Progress Energy customers to attend upcoming hearings by the Public Service Commission on a proposed $500 million dollar annual rate increase being sought by the power company. Nine hearings will be held around the state so customers can share their concerns and opinions about the proposed increase. The hearings will begin this week but won’t be in our area until July the 30th. In March, Progress Energy of Florida filed an application with the Public Service Commission requesting approval to increase basic rates by $500 million annually. For a residential customer using 1,000 Kilowatt hours per month – and most customers use more – the proposed rate hike will result in an increase of $13.83 per month, or about 31 and a half percent above the present rates. The proposed increase of $500 million is in addition to the company’s $446 million rate increase request associated with its nuclear plant construction. Progress Energy also proposes to increase its profit from about 9 percent return on investment to over 12 percent. The Attorney General said the proposed rate increase will be difficult for utilities customers to bear and he does not believe the increase is warranted. The public hearings will be the only opportunities for customers to personally address the Public Service Commission about Progress Energy service and the proposed rate increases. The closest hearing to our area will be held on Monday, July 30th at 2:00 p.m. at the Apalachicola Community Center at Battery Park.