Progress Energy bills to rise 31 percent by January

Progress Energy bills, poised to climb on fuel costs and other charges, will increase even more than expected, the utility announced this morning. Starting in January, customers could see an increase of 31 percent.

The cost of 1,000 kilowatt hours could rise from $110.59 to $144.86.

The nuclear project will cost customers 40 percent more than predicted. At the same time, fuel costs have surged.

The utility's $17-billion nuclear plant will add about $11.42 to the cost of 1,000 kilowatt hours, instead of the about $7.50 the utility predicted earlier this year. The average customer uses about 1,200 kilowatt hours a month, so the increase would have been around $9. With the new numbers released Friday, customers can expect an increase of more than $13 starting in January to pay for the Levy County nuclear project.

In an interview this morning, Jeff Lyash, president and chief executive of Progress Energy Florida, had this to say: "At the end of the day, we all have to recognize that the factors driving up the price are global in nature. This is not a Progress Energy issue, or even a Florida issue. This is a global issue."

Lyash added, "It's the new energy reality. It's a global escalation in fuel prices and commodity prices that we're all going to have to deal with."

Lyash said the overall price tag of the nuclear project has not changed. The cost to customers is higher this year because the utility decided not to wait to pay for certain long-lead items, like metal forgings. That sets a portion of the price, and protects the utility from increases in labor and materials costs, Lyash explained.

“It’s huge, and it’s on top of everything else too,” said Joe Thielbar, 44, of Pinellas Park. Thielbar’s wife died four years ago, and he’s trying to raise his 11 and 4-year-old sons on an income of $45,000 a year. He’s cut back on day trips to museums and Sarasota, and virtually eliminated their Thursday night treat of eating out.

“It’s this and everything else,” he said. “It’s really getting tough to do anything anymore.”

-Asjylyn Loder, Times staff writer

Comments

[Diane]

They are killing us

[tim]

Comforting to know that the same people who run North Carolina's Progress Energy are also running the "Let's Make The St. Pete Taxpayers Pay $450 Million for A New Stadium" scam.

[fuber]

Whatever, I'll just get another provider. Oh wait, I can't.

[Amber]

Seriously, the cost of electricity really increased 31% in one year and was not foreseeable? Just like property insurance, gasoline, and corn.

[LDH]

Not much we can do about it, huh? We can't choose another electric company. Talk about price gouging. Just remember this Progress Engergy, the phone company used to be a monopoly too and now look at them! They are beating our doors down for their business. My electric bill has become as much as a dang car payment. Highway robbers is all PE has become!!

As a loyal customer, I protest. As a shareholder of the company, I applaud their wise judgement.

[ralph]

This is great news. Now people will move to solar hot water systems that provide reduce electric demand by up to 25%. Also, with reduced electric demand, less coal and gas is burned and the planet is greener. Thank you Progress Energy.

[William]

If somebody would make solar roof panels and solar roof shingles more affordable, then homeowners wouldn't have to be gouged this much by Progress Energy. There will come a day when somebody figures it out and we can all get a majority of our home power from the sun. Then Progress Energy will have a real problem on their hands.

[Pete]

This is ridiculous. My wage has been frozen for three years. My house has been devalued by $30k. I can't take all these price increases. Where's the relief? How are we little guys supposed to survive in this economy? Progress Energy is still making high profits while we're drowning in price hikes with no compensating wage increases. HELP!

[Joe]

I sure wish I was a corporation, or a City Government so I could pass my increased fuel costs on to my customers... It really sucks at the bottom.

[Rachel]

I hate large monopolies. What if we don't want a nuclear plant - how 'bout letting us choose what we want to pay extra for - like solar energy or wind power... something safe and clean. I wouldn't mind an increase if it were for something good for us long term.

[Bill]

Newamerikans gouging Americans.

The Newamerikan morality is simple: "If it's profitable it's good-if it's more profitable it's better"!

[Joe]

I don't get it, if we are paying for the new nuclear plants, shouldn't we own them? I guess its good to be an electric commpany.

[Brian]

Don't worry Progress Energy will have their PR people commenting on this story here shortly. They'll tell us that, they along with the other monopolistic energy companies, really run Washington so not to worry b/c come time for the Nuclear power plant to be built there will be huge overrun construction costs, but don't fret b/c our customers will pick up the tab. What an absolute joke the PSC is. St. Pete Times please investigate who has oversight of the PSC and how much they are getting paid to look the other way.

[Bill A]

Good old free enterprise. No government control. Just keep voting Republican. Remember you get what you vote for.

[empty pockets]

Interesting that my power was out several hours yesterday.

Again.

Ralph, don't exaggerate about savings for domestic hot water solar. We've had ours for a few years, but our lower consumption did not drop anywhere near 25%. We also have top end hurricane protection windows installed, and they made zero dent in our power consumption, even though adverts will claim "up to 40% power saving". We've also done our attic insulation and added a radiant barrier. There are limits to how far you can go.

To save energy usage you have to start with the buildings. Florida builders use the cheapest standards I've ever seen, trying to retrofit their poor jobs is awkward and very costly. Codes should dramatically increased to force better standards NOW. We have $1m luxury homes being built in a new development near us, the standards are pathetic, just as bad as in a 20 year old house.

[Luke]

Great, now my $250 summer electric bill will be $350... lovely

[Dee]

This is killing us. We are on a fixed income. Social Security does not adjust accordingly. And..where is a "Cost of Living" adjustment for those still in the work force? "We are not in a recession" says W and inflation is in check he also says. Our only recourse is to relocate. Tennessee had MUCH lower electric rates as well as taxes and insurance. Guess that's where our new address will be next year.

[Bill]

Progree Energy is EVIL!

[Bill]

Simple solution. Cancel your internet service provider, cable TV, and St Pete Times subscription.
See!
Now you'll have plenty for the electric Bandits.

[Glenn]

Talk about abuse of power. They're talking about rising fuel prices? According to all reports, fuel prices have gone down, not up, so where does PE get off charging us more? You'd think somebody in this state's govt. would have some spine to refuse PE's rate hikes. This is getting rediculous!

[steve]

want I what to know is the power from this plant going to stay in florida or will it be sold at a profit to other state by florida power and florida will continue to get ripped off for higher fuel prices? If it can be sold to other state will florida get a power rebate? after all we are paying for the plant??????????????

[SickNTired]

How about the CEO taking a 31% pay cut?

[Brett]

Bunch of whiny socialists on here. You want products? You have to pay for them, yay capitalism! Each and every one of you has the ability and oppertunity to start a successful business or career and make your own way in this world. Nothing is free and nothing comes easy so get to work!