Progress Energy, Tampa Electric bills to jump in January

Just as plunging gas prices promise relief at the pump, cash-strapped consumers in the Tampa Bay area face another energy woe: soaring electric bills.

Rate increases, approved Wednesday, will hit customers just after the December holidays and just in time for the home heating bills that come with Florida's cooler months.

"That's bad," said Wofford Johnson, 75, a Tampa Electric customer and president of Tampa Homeowners, an Association of Neighborhoods, a group that has opposed Tampa Electric's rate increases.

"I think in today's economy it's really tough. There's lots of families out there that are on fixed incomes," Johnson said.

Progress Energy bills will increase 25 percent to pay for the rising cost of fuel and the early stages of its $17-billion nuclear plant. Tampa Electric bills will rise 12 percent to pay for fuel, with an additional increase possible in May.

"This is terrible," said Gulam Dean, 68, a Progress Energy customer in St. Petersburg. "A 25 percent rate increase? It's a crime. People are losing jobs, losing houses and can't afford food."

The Florida Public Service Commission on Wednesday unanimously approved the fuel rate increases. Progress Energy's nuclear plant rate increase was approved in October.

Commissioner Nancy Argenziano, a former state legislator with a reputation as a consumer champion, said state law gives the commission little latitude in approving fuel costs. Utilities are not allowed to profit from fuel. The costs are passed through to consumers. The commission's role is to determine that the utility acted prudently in buying the fuel, she explained.

"Overwhelmingly what I'm hearing from the consumer is, 'I can't pay any more. I just can't,' " Argenziano said. While she worried about the impact on consumers, she said she voted to approve the increases because the law left her little choice.

"When consumers ask why did we allow this, it's because we have to," Argenziano said.

Electric bills may continue to rise. Tampa Electric has asked for a base rate increase to pay for the rising cost of labor and commodities that are driving up the cost of doing business. If approved next year, Tampa Electric bills would increase again in May. Progress Energy has an agreement with the state on base rates, but it expires next year. The utility will need to decide early next year whether to ask for an increase.

Although fuel costs have been falling, they have not been low enough long enough to alter the utilities' long-term fuel cost projections. If fuel costs remain low or fall further, customers could see bills came down in mid 2009 or early 2010.

Suzanne Grant, Progress Energy spokeswoman, said the utility can't control the price of fuel.

"We feel that we've done what we can," Grant said. "We know there's never a good time to raise prices, and we know this is an especially hard time for customers."

Approved increases

Progress Energy

Now New rate

Fuel

charge$48.81 $62.90

Total$110.59 $137.87

Tampa Electric

Now New rate

Fuel

Charge$52.41 $64.16

Total$114.38 $128.44

Note: All amounts reflect the monthly price to residential customers for the first 1,000 kilowatt hours. Progress Energy charges more for electric use above 1,000 kilowatt hours. The average customers used about 1,200 kilowatt hours a month.

Source: Progress Energy, Tampa Electric, Florida Public Service Commission

Comments on this article

by Raysfan1	Nov 19, 2008 4:40 PM
I really wouldn't want to be a CEO at this point. Everyone hates you!!!!!Thinks your greedy fat overeating people who do nothing, but raise rates.Offer cheaper alternatives! Natural Gas? Why do we have to have Chernobil nuclear???

by kbd	Nov 14, 2008 1:21 AM
Hey Sandy. I am a 5th generation Floridian and I am being run out of my homeland! I am with ya girl. See you on the interstate. I've been struggling for a year to pay outrageous power bills on a 900 ft sq. ft house. 25% inc. to 437/mon NOT!

by Jakey	Nov 14, 2008 1:21 AM
How much profit a year is enough? How about some money management to purchase the things you need to do business..how much money could have been saved when the economy was better to pay for a reactor that some people dont want

by Jack	Nov 14, 2008 1:21 AM
Look at the PCS website- Argenziano was in the legislature, Edgar- Reappointment for Regulated Industries and Gov. office, Crist apponited 3 of the 5 members and Bush did the other 2. What do they have in common?

by you wanted to know	Nov 13, 2008 4:06 PM
Some facts: Argenzaino was in the Legislature for 10 years prior to being appointed. Edgar worked for DEP, Office of the Governor, Legislative Analyst for Reappointment and REGULATED Industries Check the website for additional infor. on the others.

by Kim	Nov 13, 2008 4:06 PM
Cindy you know better. Yes send them letters. You are a joke. It is done and we have to pay. That is the way it is and you put them in office. You can not vote them out. You have to pay it. So grow up and pay it.

by you wanted to know	Nov 13, 2008 4:06 PM
These people are appointed, not elected. Arganzaino by Crist. Edgar by Crist Carter, who is the Chairman, by Bush McMurrian by Bush Skop by Crist

by Pete	Nov 13, 2008 4:06 PM
I have spent thousands to get off the greedy grid with solar. My bill before solar was around 80.00. I'm still waiting for PGE to install the net metering system. For now they have been getting hundreds of watts from me for free.

by you wanted to know	Nov 13, 2008 4:06 PM
Here is the information many of you requested, email addresses: argenziano@psc.state.fl.us edgar@psc.state.fl.us chairman@psc.state.fl.us mccurria@pcs.state.fl.us skop@psc.state.fl.us

by Disgusted	Nov 13, 2008 4:06 PM
"Fuel costs" are merely a guise to continue to rape the Florida consumer and the PSC is a willing participant. The law didn't "force" them to approve the new nuclear power plant. Why are needed "public service" utilities allowed to garner profits?!

by Ted	Nov 13, 2008 4:06 PM
Well in the election last week all of the incumbents were voted back in. We need to vote all incumbents OUT, no matter if they are Republican/Democrat, this party line stuff doesn't work anymore, but no one seems to wake up. Same vote, same result.

by Holly	Nov 13, 2008 4:06 PM
A 25% increase???? This is INSANE!!!

by Wolf	Nov 13, 2008 4:06 PM
"Write (email) your elected representative(s) and tell them you consider this deplorable situation their problem." Wish it were so Billy Bob, but the "representatives" are in the energy companies pockets...$$$.

by Dee	Nov 13, 2008 4:06 PM
And this will continue for the next 15 years or so. Electricity will soon be so expensive that we will have no choice but eleminate all but essential appliances. Will someone PLEASE put a stop to this nonsense.

by Dee	Nov 13, 2008 4:06 PM
Progress Energy increase amounts to a 37% increase when you factor in the $12.00 per month for the "maybe" nuclear plant sometime in the future. We must realize that next year there will be another rate increase as well as the nuclear cost going up.

by Sarah	Nov 13, 2008 4:05 PM
How much of a kickback are the PSC members getting? Unanimous approval?

by BS	Nov 13, 2008 4:05 PM
Why 25% for Progress and 12% for TECO?

by JIM	Nov 13, 2008 4:05 PM
hey, why not ask the gov to bail you out , they are going to do the banks houses out makers and any body else that's suffering. with tax payers money let them go under and reorignized things will be cheaper get rid of all high paid ceo's

by BB	Nov 13, 2008 4:05 PM
Wake up.. businesses always pass their extra costs (including taxes) on to the consumer. Hello?

by JIM	Nov 13, 2008 4:05 PM
all crooks, ceo's have to have millions to live on.pay for nuke plant in advance, use some of your profit's per year. for each year untill you have enough to build it.why do the tax payers have to pay for every thing. the rich get richer poor is scre

by McBob	Nov 13, 2008 4:05 PM
Wait, the company's costs are being passed to the consumer. I thought Obama said that wouldn't happen when he taxes the oil companies!

by joe	Nov 13, 2008 4:05 PM
I can't wait till my house forecloses so I can move out of this #$%^&* state. This place is going to be a ghost town. The only people left will be millionaires. Who's going to sell them groceries,rescue their cat, save their lives Good job jeb,crist

by JIM	Nov 13, 2008 4:05 PM
with the loss of so many jobs, people in forclosures , the food prices sky rocking and these idiots whant to raise the elect bill $27.00 more in jan, after raising it $6.00 in august=$33.00 jan 1st.what are people to do on fixed incomes. no heat

by Laurie	Nov 13, 2008 4:05 PM
In these economic hard times PE or TE would NOT be raising their rates if the consumers had other electric companies to choose from. Clear cut case of price gouging. I can't believe they are getting away with this!

by Steve	Nov 13, 2008 3:47 PM
Seems to me I remember about 6 mon ago paying a significant increse because of fuel ,, now again and prices are going down. What have the power companies done to cut costs , I still see guys standing around on the corners 5 deep to make repairs.

by Shelia	Nov 13, 2008 3:47 PM
Nancy Argenziano is a traitor ! This is not how she spoke when she was seeking to be appointed to the PSC . I guess that fat salary is nice for someone went from being a dog groomer to a PSC Commissioner ! TRAITOR ! LIAR !

by Wolf	Nov 13, 2008 3:35 PM
"Progress Energy bills will increase 25 percent to pay for the rising cost of fuel" Really? Checked the price of oil lately? Rape is rape, simple as that. I've traveled to a lot of disgusting places in the world, but Florida has to be the worst.

by Dee	Nov 13, 2008 3:35 PM
To Sandy - Something is seriously wrong in your 800sqft house if your bill is that high. I have a 2,400sqft house and don't pay much attention to my AC or electric use and mine is never that high.

by Tim	Nov 13, 2008 1:34 PM
One thing I've never understood is why do Progress Energy and TECO spend millions of dollars on advertising.....who else are we going to get our power from?

by Billy Bob	Nov 13, 2008 1:34 PM
Complaining to people who agree with you is absolutely worthless. Write (email) your elected representative(s) and tell them you consider this deplorable situation their problem. If they can't help you, tell them you can't vote for them.

by je	Nov 13, 2008 1:34 PM
Gasoline has dropped almost $2.00 a gallon, so why the increase for fuel. if this was approved before the drop, then ok, but not now!!!!!!!!!

by CJB	Nov 13, 2008 1:34 PM
Why not out sourse the energy companies...this county is out soursing every other job in our good old USA.

by David	Nov 13, 2008 1:34 PM
Shame on the Public Service Commission. They serve no one but themselves and the corrupt state government. May they all one day be on a limited, fixed income and not be able to afford food because of THEIR high electric bill. CROOKS!

by Sharon	Nov 13, 2008 1:34 PM
St. Pete Times - wake up! You need to send your investigators out to look into this rip-off. Fuel is no longer rising! It's at the cheapest in two years. We are just guaranteeing that the Progress Energy execs keep their fat salaries!

by Richard	Nov 13, 2008 1:33 PM
Helen, I can't agree with you more. If I decide to expand my business, I find my own financing. I don't charge my customers who never see a benefit. That's unconstitutional. I'd like to see more solar solutions.