Progress Energy Florida reaches rate settlement with Attorney General, others

ST. PETERSBURG, Fla., May 10 /PRNewswire-FirstCall/ -- Progress Energy Florida, Florida Attorney General Bill McCollum, the Florida Office of Public Counsel and other intervening parties representing Progress Energy Florida's customers have reached an agreement that would freeze base rates through the end of 2012.

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"Progress Energy Florida is pleased to have reached a fair agreement that will benefit our customers by keeping base rates stable during this challenging economic environment," said Vincent M. Dolan, president and chief executive officer of Progress Energy Florida.

The agreement is subject to approval by the Florida Public Service Commission (PSC). The parties jointly filed the settlement with the PSC at 8 a.m. today and have requested the commission consider the agreement at its June 1 meeting.

The settlement includes the following provisions:

• Base rates will remain frozen until the end of 2012.
• Progress Energy's pending motion for reconsideration and accounting order petitions will be withdrawn.
• The company's midpoint for return on equity (ROE) will remain at 10.5 percent.
  • If the company's ROE falls below 9.5 percent at any time before Dec. 31, 2012, the company can seek full, limited or interim rate relief. 
• The company will have the discretion to reduce the depreciation reserve by up to $150 million in 2010, up to $250 million in 2011, and up to any remaining balance in 2012.

Residential customers who use 1,000 kilowatt-hours a month pay $48.58 in base rates now. While the settlement will allow base rates to remain stable, customer bills may fluctuate as certain charges, such as fuel or environmental investments, are reviewed annually and passed on to customers. For a thorough explanation of a residential bill, visit www.progress-energy/floridarates.

Progress Energy Florida, a subsidiary of Progress Energy (NYSE: PGN), provides electricity and related services to more than 1.6 million customers in Florida. The company is headquartered in St. Petersburg, Fla., and serves a territory encompassing more than 20,000 square miles including the cities of St. Petersburg and Clearwater, as well as the Central Florida area surrounding Orlando. Progress Energy Florida is pursuing a balanced approach to meeting the future energy needs of the region. That balance includes increased energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. For more information about Progress Energy, visit www.progress-energy.com.

SOURCE Progress Energy