Progress Energy Settlement Freezes Utility Rates

Attorney General Bill McCollum and Public Counsel J.R. Kelly today announced that they have reached a settlement with Progress Energy Florida on behalf of Florida consumers to freeze base rates for Progress customers through 2012.

The agreement will also cap the repair costs that customers might have to pay in the event of any catastrophic storms, while allowing Progress immediate access to the funds necessary to make any emergency repair. Under the agreement, each of the settling parties has the right to petition for interim rate relief if Progress’ profitability falls outside of certain financial benchmarks.

“We believe this is a great deal for ratepayers because they get the certainty of knowing their base rates will be frozen for three years in the midst of tough economic times,” said Public Counsel J.R. Kelly.

The Florida Retail Federation, Florida Industrial Power Users Group, White Springs Agricultural Chemicals, Inc., and the Department of the Navy on behalf of the Federal Executive Agencies were also parties to the settlement agreement, which was filed with the Public Service Commission (PSC) today.

The agreement is subject to approval by the PSC. A copy of the agreement is available online at: http://myfloridalegal.com/webfiles.nsf/WF/MRAY-85BJ9M/$file/JointMotion.pdf