The Public Service Commission voted 4-1 today to force Progress Energy to refund $13.8-million to its customers.
At issue is whether Progress Energy bought the cheapest coal available for generators at its Crystal River plant. The commission found that Progress did not act prudently in buying a more expensive type of coal. The refund is based on an estimate by commission staff of how much customers would have saved from 2003 to 2005 if Progress had purchased the cheaper coal.
"We did something good for the ratepayers in the state of Florida," said Commissioner Matthew Carter.
C.J. Drake, spokesman for Progress Energy, said, "We are disappointed in the commission's decision." Drake said the utility is "assessing its options," including an appeal to the Florida Supreme Court.
If a refund takes place, it would be subtracted from the cost of fuel that customers see on their bills, Drake said. Last year, Progress Energy spent more than $2-billion on fuel for its Florida customers.
After hours of debate, some commissioners wanted more time and information. New Commissioner Nancy Argenziano, a former state senator, said she supported the refund, but with a good deal of "distress." She wanted more information, but said, "At this point, there's no way I'm voting no against giving the customers a refund."
New commissioner Nathan Skop fought for a bigger refund but voted for it in the end.
Commissioner Katrina McMurrian cast the lone dissenting vote, saying that she believed Progress acted prudently in purchasing coal.
Progress has argued that the cheaper coal had a lower BTU content, and would have produced less power, wiping out any savings.
Progress Energy Florida, based in St. Petersburg, supplies power to nearly 1.7-million customers in 35 counties. It has 14 power plants with a capacity of producing 9,000 megawatts of electricity. It is owned by Progress Energy, which is based in Raleigh, N.C.
-- Asjylyn Loder, Times staff writer