Lower fuel costs could be seen in next year's power bills

Progress Energy Florida last week asked state regulators to approve a cost adjustment to reflect the falling costs of fuel used to generate electricity. On September 14th, Progress Energy filed its projected 2010 fuel estimates with the Florida Public Service Commission. The lower fuel costs could cut nearly 10 dollars a month off a monthly residential customer bill for 1,000 kilowatt-hours of electricity. Commercial and industrial customers would see similar price drops if the proposal is approved. The company said the decrease in the fuel portion of electricity bills is due to lower fuel prices, improvements to power plant efficiency and effective fuel management. The PSC will hold hearings on the request from November 2nd through the 4th. If approved by the PSC the new fuel rates would take effect in January. At the same time it’s looking to cut its fuel charges, Progress Energy Florida is also looking to increase its 2010 base rates. The state is currently gathering information on that request which would allow the company’s base rates to go up by $499 million a year. The PSC will hold hearings on the mater in the next few weeks.