State OKs rate hikes for utilities - Florida Power & Light customers to see increases of about $4.75 per month.
www.tcpalm.com By David Royse The Associated Press March 5, 2003
TALLAHASSEE -- The state's three largest utilities, Progress Energy, FPL, and Tampa Electric, won approval Tuesday to increase rates to account for rising fuel costs.
Under the changes approved by the Public Service Commission, the state's utilities regulator, Florida Power & Light Co. customers would see the biggest increase, about $4.75 to make an average monthly FPL residential bill $81.60.
The increase passes higher prices for natural gas and oil on to consumers. The companies' profits won't increase because of it.
The utilities cited a cold winter in the north and a slow down in natural gas production for a spike in gas prices. They also cited rising fuel oil costs because of concerns about supply caused by an oil workers' strike in Venezuela and tension in the Middle East.
The average residential customer of Progress Energy would see their monthly bill increase by $3.36 to about $83.71.
Tampa Electric customers would see their bill go up by $4.46 on average, to $94.14 a month.
The increases will take effect next month.
Public Counsel Jack Shreve, who represents consumers before the PSC, and a coalition of large power customers, the Florida Industrial Power Users Group, both said they understood the rising cost of fuel and the need to pass the cost on. Both also urged the PSC to closely monitor fuel prices and quickly require the companies to adjust rates downward again when prices go down.
Last year, Progress and FPL both lowered rates as energy prices fell.
FPL serves 3.8 million customers in Florida, including much of South Florida and central Florida and nearly the entire east coast of the state.
Progress has 4.1 million Florida customers, with its major service areas being in the St. Petersburg area and the Orlando suburbs.
Tampa Electric serves 600,000 customers in Hillsborough County and parts of Pasco, Pinellas and Polk counties.