Rising Fuel Costs Lead to Higher Prices for Electricity

new.stockwatch.com 2003-02-18 12:41 EST - News Release

ST. PETERSBURG, Fla., Feb. 18 /PRNewswire-FirstCall/ -- Citing rising prices for fuel used to generate electricity, Progress Energy Florida (formerly Florida Power) will today request an increase to the price customers pay for electricity. Progress Energy does not profit when prices increase due to higher fuel costs. The costs are a direct passthrough to customers.

(Photo: www.newscom.com )

Progress Energy's residential customers currently pay $80.35 per 1,000- kilowatt hour (kWh), 10 percent below the national average. If the request is approved by the Florida Public Service Commission (FPSC), the fuel adjustment will increase residential bills by 4.2 percent -- to roughly $83.71 -- beginning April 1, 2003. A decision is expected from the FPSC in March.

"Considering the state of potential conflicts in the Middle East and government unrest in Venezuela, fuel prices are expected to remain high into the foreseeable future," said Bill Habermeyer, president and CEO of Progress Energy Florida. "We will do everything we can to control these costs, but we also encourage customers to make efficient use of electricity and conserve whenever possible."

While time remains before the summer air conditioning and peak electric use season arrives, Progress Energy urges customers to maximize energy efficiency and conservation to help mitigate the impact of higher fuel prices.

Progress Energy offers these tips to help customers keep their energy costs down:

• Set the air conditioning system (which is the largest user of electricity) thermostat to 78 degrees in summer months. * Make monthly inspections of air conditioning system filters for the purpose of cleaning or replacing them when needed. * Reduce the temperature setting on the electric water heater to 120 degrees. * Use ceiling and portable fans to keep air circulating. * Close blinds, drapes and shades during the hottest part of the day. This keeps the sun's rays from heating your house. * If you have a pool, limit the time your pool pump runs to six hours a day during the summer.

Residents can also take advantage of Progress Energy programs designed to help customers control electricity use. For more information about these programs, customers should visit www.progress-energy.com or call 1-800-700-8744. Some of these programs include:

Budget Billing: Customers on fixed incomes or others who need a bill that is a consistent amount are encouraged to take advantage of Budget Billing. The program is free and helps customers forecast monthly energy costs as well as better plan their finances. Customers pay an average amount that is approximately the same each month. The difference between the budget billing amount and the actual amount also appears on the bill.

Home Energy Inspection: A free home energy inspection can be conducted for customers by a Progress Energy representative. The representative will survey your home's insulation, duct work, water heating, cooling and heating systems and overall efficiency. Then the customer is provided with energy-saving recommendations and practices and other cost-effective, energy-saving measures.

Progress Energy Florida, a subsidiary of Progress Energy , provides electricity and related services to more than 1.4 million customers in Florida. The company is headquartered in St. Petersburg, Fla., and serves a territory encompassing over 20,000 square miles including the cities of St. Petersburg, Clearwater, as well as the Central Florida area surrounding Orlando. For more information about Florida Power, visit the company's Web site at: www.progress-energy.com. Photo: NewsCom: www.newscom.com AP Archive: photoarchive.ap.org PRN Photo Desk, 888-776-6555 or 212-782-2840 Progress Energy, Inc.

CONTACT: Corporate Communications of Progress Energy, +1-866-520-NEWS -6397

Web site: www.progress-energy.com