Progress wins rate increase for $17B nuclear plant

Progress Energy won a rate increase Tuesday morning to pay for its $17-billion nuclear project.

Customers will be charged $11.42 for 1,000 kilowatt hours starting in January to pay for the Levy County nuclear project, which won't start producing power until 2016. The Public Service Commission unanimously approved the charge Tuesday morning.

The nuclear charge is in addition to Progress Energy's request to raise fuel rates. The utility Monday back-tracked on its planned fuel rate increase, but the fuel rate increase will still total an additional $14.09 for 1,000 kilowatt hours.

If the fuel increases are approved in early November, Progress Energy customers will see a 25 percent increase in their bills starting in January. The cost of 1,000 kilowatt hours will increase to $137.88, from $110.59 today. The average household uses about 1,200 kilowatt hours a month.

-- Asjylyn Loder, Times staff writer

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Comments

[Randude]

The PSC are nothing but the b----- of Progess Energy - what the hell is Progress's profit margin - this just reeks of the good ole boy network still in effect - i hope those PSC people end up broke and on the streets!

[Fact checker]

The numbers do not seem to add up here.

If I add the $11.42, for the nuclear increase, $14.09, for the fuel increase, to the $110.59, for the current 1,000 kWh, I get $136.10, not $137.88.

I am confused.

[Fact checker]

Don't blame the PSC on this one.

Say thank you to the Florida Legislature. They are the ones who approved the law that allows a utility constructing a nuclear power plant to collect the money in advance.

The PSC has to follow the law.

Don't like this ruling - talk to your state senator and representative.

And don't forget the Governor, he signed the bill into law.

[Susan]

Maybe all the "top brass" at PSC and Progress Energy should not take their bonuses so they could build the plant. Wait, thats how their keeping their bonuses, by raising rates. duh..

[Asjylyn - The Fueling Station]

Hi Fact Checker - The reason the math doesn't add up is because there are a couple of smaller charges aside from the nuclear and fuel increases. Those charges aren't reflected in the story. The total used in the story is Progress Energy's planned price for 1,000 kwh. Hope this helps.

-Asjylyn (The Fueling Station)

[John]

25% increase? Not right. Criminal
I found this site which gave some ways and programs that help save on heating and utility bills. Help is provided both from the gov't and utility companies themselves.
http://www.utilitybillassistance.com

[Mo]

People are losing their homes and are unable to feed their families. and NO it's not just the people that bought houses they couldn't afford. I'm a mother struggling to make ends meet and it's a toss up if I have enough for the utilities! Now they want to raise charges!?! For who? Did anyone take a friggin' pay cut? I bet not! They won't pay people for damages to their household items damaged by their lack of upkeep on their own lines and boxes...PE and PSC should be ashamed! No better than those crooks on Wall Street!
A guy the other day was talking about he sees our country headed towards something like Mad Max...he may have been right.

[Everyone]

Are you kidding me? Do I get a piece of the nucular plant in the form of stocks? If I'm paying for it, I want a piece of it! Someone needs to dig and find out how much the Honchos at FL Progress make per year along with Bonus and Stock Option. 25 years ago I worked at a Dry Cleaners and the head honcho left his earnings statement in his suit pocket....I was just a kid and the numbers made me swoon!

[Tom]

Plus Gross Receipts tax for all of us. Add sales and local taxes on top of the Gross receipts tax for business.

[Nancy]

So does this mean we all get a rate reduction in 2016 when the plant goes on line? Doubtful. Memories tend to get hazy when it comes to customer reimbursements. Monopolies suck!

[Frank]

The NRC has delayed approval of all plants under construction and those being considered because of needed design changes to the Westinghouse AP1000 reactor. 2012 is the soonest those changes can be approved and it will be another 8-10 years before a nuke is built....if ever.

[Steve]

I agree with stock ownership. After all if I pay for it I should own it, or at least my "share".

This is outrageous! I made a household decision to buy more energy efficient windows and doors to help bring my costs down in the long term and do the right thing.

This should be addressed, and the legislature held responsible.

Not one legislator who tries to get credit for being environmental or or consumer friendly should get away with voting for Progess Energy on this.

So disappointing. I bet our bills won't be lower in 8 years.

Don't like being robbed? Find ways to reduce your bill, and teach those around you. The only way to fight back is to reduce our usage of their service.

[leatherneck]

Progress Energy is a parasite. Absolutely criminal what they are doing to the consumer. I wish we had the government leadership to end this nonsense. Progress is a robber baron, and appears to be as cocky as anyone taking it to the customers......

[jim]

every thing else is on a down way sprial and this plant wants to raise it's rates. give me a break it's the old saying the rich get richer and the middle class gets to pay for every thing. soon there will be no middle class,just poor and the rich.if i have to pay so much a mo for an plant that may or may not be built i should have stock in it.no after all of these years of paying you just get an higher bill when it goes on line. the only ones that will benefit from this plant are the stock holders and the ceo's with millions in pay days at the expense of the middle class.that has to pay for this project.it's getting to costly here in fla. i'm moving out of state, fixed income can't afford to live here any more.and i love fla.

[Al]

I'm glad we're building another nuke plant, it's about time. I budget enough money for little increases like this. The small house that I just bought in 4/2007 has only a $140 per month power bill in the summer. That will give me an increase of about $35...easy for me to absorb. Do you have a budget that allows for small increases? Do you think it's time to develop one? Maybe you should sell your SUV and get a Honda? Maybe you should forego the 64" flat-screen TV and read a book.
Maybe you should quit your bitching.

[Lee]

Asjylyn,

How about a story about why these power companies advertise so much, especially at sporting events (Progress Energy Park) and on tv.
What other choice do we have but to have a power company? How about rolling back the advertising and PR departments?
My house is run on hamster power, so I don't care.

[Ernie]

People:
Please take a look at your Progress Energy bill. You will find an item posted as "customer charge." It's in the amount of $8.03 for residential customers. I don't know if it's the same rate for commercial customers? In essance, we are paying a cover charge each month just to be a customer of Progress Energy.

I wrote to the PSC and complained about this charge. The PSC did entertain my complaint, but they informed me it was perfectly legal for Progress Energy to pass on this charge to the customer. As far as I'm concened, this charge is an add on charge. It's a damn shame what the utility companies can get away with against us.

[Gertrude]

May I charge Jeff Lyash 25% more for the nuclear chicken wings he orders at lunch at my restaurant so I can pay for a new restaurant I plan to build in 8 years?

We all need to stand up to their PR efforts in the community that buys our silence.

Progress Energy is not a friend to our community.

[leatherneck]

It is obscene for us to pay in advance for a potential of building a plant. Remember it it not a done deal...

[Brucy]

Wait I don't get it!!! We get to pay for the plant. They get to sell us what it produces. We pay for it but don't get any of the proceedes. B.S. Other readers have said it: Progress Energy is no friend of the community. They don't even reside here. They are from North Carolina OUt of State people increasing the rates to Floridians.
Wait I don't get it!!!

Al, I have a 1000 sq f house and do not drive an SUV or own a 64 inch TV. I put several thousand dollars into energy efficient windows, doors, a solar powered attic fan to draw off heat, and a programmable thermostat. I am responsible, I budget well, and I expect my utilities to be regulated fairly by the people I elect. That extra $35 bucks I want to go to my retirement, not a greedy utility company.

This does not add up with the recent news that Progress Energy has lost so many customers. They are building this nuke plant to fuel future growth so they can grow more customers. We don't need a nuke plant now. And we don't need unplanned, unregulated growth that exceeds the carrying capacity of the land and water resources. Nukes require a great deal of water.

But don't worry, we'll get pre-taxed on our water bills from Tampa Bay Water to pay the extra costs associated with that!

Why do we keep voting for the jokers in Tallahassee that allow this to happen?

[lopacs]

Disclaimer: There is probably a lot of errors in this email - I'm not well versed on the fine points in Progress Energy's claim of needing an increase. This is my opinion and how it affects my life.

I conserve energy as much as possible. Summer requires a/c for my asthma, but winter time I wear sweat suit and sometimes gloves at night keeping my heat TURNED OFF trying to make up for the cost I HAVE to use during the summer.

The year 2016 may find me in assisted living - yes, I am a senior citizen on a very fixed income. Thirty-five dollars a month may be built into some budgets but it will be a definite strain on my budget - what do I give up now? I eat a lot of soup and drive my small economy car only for multiple chores. My one and only television is a small, very old portable - not the super size most people have.

I don't see anything where the proposed power plant increase will be returned to the people (with interest) if the plant is not built. How would they find me to send my check 8 years from now - would them send refund to my heirs - wait - what am I talking about - even if the plant is not built the POWER company will find a way to keep our money.

This is not the time in our depressed economy to be increasing a necessity like power by 25%. Maybe it is time for more windmills - by constructing wind mills for people it would be safer, cheaper, and the excess energy could be 'given' back to the power company in exchange for providing wind power. At least I wouldn't feel like I will glow green if the windmill fails to operate. It is time to 'just say no' or is it already to late?

cc: being sent to my Senator, Congressman and every person in my extensive email list.