Rising Fuel and Environmental Costs Prompt Progress Energy Carolinas Filing
April 30 2008 - 12:15PM
PR Newswire (US)
Total impact for residential customers would be approximately 6.1%
FLORENCE, S.C., April 30 /PRNewswire-FirstCall/ -- A significant
run-up in the market price for coal and other fuels used in
electricity generation -- caused by global demand and market
conditions -- has prompted a request by Progress Energy Carolinas
to increase the fuel component of the rates paid by the company's
S.C. customers. (Logo:
http://www.newscom.com/cgi-bin/prnh/20020923/CHM008LOGO-c )
Progress Energy Carolinas' filing with the S.C. Public Service
Commission also seeks recovery of the cost of reagents used to
reduce fossil-fueled plant emissions, as well as the cost of
emission allowances, as allowed under state law. For a residential
customer using 1,000 kilowatt-hours of electricity a month, the
total increase, if approved, would be about $6. The total price for
1,000 kWh would rise to about $102.20 from the current $96.33.
After a slight increase in 2007, the prices of coal and other fuels
used to produce electricity have risen sharply. The market price
for coal has doubled since December and has set several records so
far in 2008. Meanwhile, demand for coal in developing countries,
particularly China and India, continues to rise. Progress Energy
Carolinas makes a fuel cost-recovery filing annually in South
Carolina, based on the actual cost of fuel used to provide electric
service to the company's customers. The Public Service Commission
reviews fuel costs and adjusts the fuel component of customer rates
accordingly. By law, the company makes no profit from the fuel
component of rates. Progress Energy Carolinas is asking the S.C.
Public Service Commission to approve a $39 million increase in the
fuel component of its rates. The company requested the change to
recoup under-recovered fuel costs and to meet expected future fuel
costs. Increased fuel costs represent about $5 of the requested
increase. The other $1 increase on a 1,000-kWh residential bill is
to recover the cost of emission allowances as well as limestone,
ammonia and other materials used to reduce emissions of sulfur
dioxide and nitrogen oxides from Progress Energy Carolinas'
coal-fired power plants. If approved by the commission, the average
increase would be about 7.2 percent for commercial customers and
9.4 percent for industrial customers. The increase would take
effect July 1. The other major component of the rates, the base
rate, has not been increased since 1988. Progress Energy Carolinas'
power plants, including the H.B. Robinson Nuclear Plant near
Hartsville, have been recognized nationally for sustained reliable
and efficient performance. That performance, coupled with the
company's diversity of power plant resources, has helped to keep
fuel expenses as low as possible for customers. Even with Progress
Energy Carolinas' proposed increase, the average price of
electricity for its customers in South Carolina would still be
below the national average. "We know that any price increase has an
impact on our customers," said Emerson Gower, vice president of
Progress Energy Carolina's Southern Region, which includes all of
the company's South Carolina service area. "Sharply rising fuel
prices -- at the gas pump and in fuel used to generate electricity
-- are a new energy reality as we work to meet the challenges of a
growing service area reliably, affordably and in an environmentally
sound manner. We will continue to do all we can to operate our
plants and facilities as efficiently as possible. Meanwhile, we
encourage our customers to learn more about how they can use energy
wisely every day." Customers can save up to 20 percent on their
energy costs by making simple changes at home. Cleaning air
filters, replacing incandescent light bulbs with
compact-fluorescent bulbs, adjusting the thermostat and sealing
windows and doors can result in noticeable savings. For more than
100 energy-efficiency tips, visit the company's Web site at
savethewatts.com. Progress Energy, headquartered in Raleigh, N.C.,
is a Fortune 250 energy company with more than 21,000 megawatts of
generation capacity and $9 billion in annual revenues. The company
will observe a century of operation in 2008. Progress Energy
includes two major utilities that serve 3.1 million customers in
the Carolinas and Florida. Progress Energy is the 2006 recipient of
the Edison Electric Institute's Edison Award, the industry's
highest honor, in recognition of its operational excellence. The
company also is the first utility to receive the prestigious J.D.
Power and Associates Founder's Award for customer service. Progress
Energy serves two fast-growing areas of the country, and the
company 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 the company's Web site at
http://www.progress-energy.com/ .
http://www.newscom.com/cgi-bin/prnh/20020923/CHM008LOGO-c
http://photoarchive.ap.org/ DATASOURCE: Progress Energy Carolinas
CONTACT: Progress Energy Carolinas Corporate Communications 24-Hour
Media Line, +1-919-877-(NEWS) 6397 Web site:
http://www.progress-energy.com/ http://www.savethewatts.com/
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