Progress Energy reaches rate agreement with Florida consumer advocates

Progress Energy Florida says it has reached a multi-year agreement with consumer advocates over base-electric rates and nuclear-power projects.

Progress Energy filed a comprehensive settlement agreement with the Florida Public Service Commission on Friday that is expected to moderate electricity costs for customers in the coming years.

Under the settlement, starting in 2013 base rates will increase by $150 million dollars to cover the cost to provide energy to Progress Energy’s more than 1.6 million customers in the state.

Customers would see an estimated 4 percent increase over current rates.

The increase, however, will be largely offset in 2013 and 2014 by a $288 million refund to customers reflecting the ongoing outage at the Crystal River Nuclear Plant.

It also removes the Crystal River Nuclear Plant from base rates while the company continues to analyze options for the plant.

The agreement, which was developed collaboratively with the Office of Public Counsel and other consumer advocates, still has to be approved by the Florida Public Service Council.

If it is approved it will take effect in January 2013.

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