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Public Service Commission


06/01/2010 Contact: 850-413-6482

PSC Approves Progress Energy Settlement

TALLAHASSEE — The Florida Public Service Commission (PSC) today approved a joint stipulation and settlement agreement that freezes Progress Energy Florida (PEF) customers’ base rates until 2012.  The Agreement also resolves all remaining issues related to PEF’s 2009 base rate increase request and its petition to include the Bartow repowering project in base rates. 

Signed by PEF, the Office of the Public Counsel, the Office of the Attorney General, the Florida Industrial Power Users Group, the Florida Retail Federation, White Springs Agricultural Chemicals, Inc. d/b/a PCS Phosphate White Springs, and the United States Navy, the Commission-approved agreement provides for the following:

  • Freeze in base rates through the last billing cycle in December 2012, unless return on equity falls below 9.5 percent;
  • Discretion to record a depreciation expense credit of up to $150 million in 2010, up to $250 million in 2011, and up to any remaining balance of the depreciation theoretical reserve imbalance in 2012;
  • Discretion to accelerate the amortization of certain regulatory assets; and
  • Recovery of storm damage costs and storm damage reserve replenishment on an interim basis, 60 days following the filing of a petition (not to exceed $4.00/1,000 kWh monthly for residential customers).

PEF provides electric service to more than 1.6 million customers in 35 Florida counties.

The PSC is committed to making sure that Florida's consumers receive their electric, natural gas, telephone, water, and wastewater services in a safe, affordable, and reliable manner. The PSC exercises regulatory authority over utilities in the areas of rate base/economic regulation; competitive market oversight; and monitoring of safety, reliability, and service.

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