Progress Energy Florida Predicts Increase in Electricity Costs
Read more about Major U.S. Nuclear Power Plants: Profiles and Market Analysis
If state governors sanction the company’s 2009 fuel-cost projections, clean-air expenses, nuclear pre-construction costs and other elements, the residential monthly bill for 1,000 kilowatt-hours (kWh) would increase $34.27 (31 percent) over present-day charges of $110.59 to $144.86 starting in January 2009.
Approximately $21.12 of the increase is for projected fuel costs in 2009 (including under-recovered amounts from this year); $11.42 is for new nuclear-plant construction; and $2.50 is for environmental projects, including the installation of the latest clean-air technology at the company’s coal-fired power plants.
The company’s long-run scheme to invest in carbon-free nuclear power will step-up fuel variety, decrease dependence on fossil fuels and help avoid fuel-cost increases like this in the future. When new nuclear reactors are in commission, they will generate an estimated savings of more than $1 billion yearly for buyers.
Approximated cost hikes for the company’s two planned nuclear reactors in Levy County, Fla. are largely due to payment for critical equipment necessary for their building. Progress Energy Florida took the initiative to secure in advance several pieces of high-demand equipment needed to build the reactors. Securing and paying for these items now ensure they will be accessible when needed during the building process and will finally lower the total cost of the project for customers.
The $17-billion gross cost of the Levy nuclear project, including $3 billion for related transmission facilities, has not changed since it was announced earlier this year. Dialogues continue between Progress Energy Florida and other utilities for joint possession of the reactors, which would also decrease costs for customers. If joint-ownership agreements are reached, the company will update its cost estimates.
The company has also expanded its back up of the Energy Neighbor Fund to provide assistance to customers who are fighting to pay their electric car bills. Employees and customers have given generously to this fund for years to help neighbors in need. Progress Energy doubled its corporate contribution to $1 million in 2008.
The company filed its 2009 projections for fuel and other disbursements with the Florida Public Service Commission (PSC) recently. The PSC has scheduled hearings in September to review nuclear costs and separate hearings in November to review the company’s projected fuel, environmental and energy-efficiency expenses.
Read more about Major U.S. Nuclear Power Plants: Profiles and Market Analysis
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