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NEWS RELEASE


07/02/2008 Contact: 850-413-6482

Florida Public Service Commission Adjusts Fuel Charges for Three Investor-Owned Electric Utilities


TALLAHASSEE — The Florida Public Service Commission (PSC) on Tuesday adjusted fuel charges for three of Florida’s investor-owned electric utilities; Florida Power & Light Company (FPL), Progress Energy Florida, Inc. (Progress), and Florida Public Utilities Company (FPUC).

The PSC reviews utilities’ projected fuel costs annually in November and determines how the fuel costs will be passed on to customers.  If actual fuel costs are substantially different from projected fuel costs, the company can request a mid-course adjustment, as did FPL, Progress, and FPUC.

Florida’s investor-owned utilities are not allowed to earn a profit on the cost of fuel used to generate electricity.  If the PSC determines that a company has recovered more than it actually spent in the previous year, the coming year’s projected fuel charges are reduced to refund that amount of over recovery, including interest.

“We’re seeing higher prices at the grocery store, at the gas pump, and in the fuels used to generate electricity for our homes,” said PSC Chairman Matthew M. Carter II.  “Fuel costs represent about 51 percent of a typical residential electric bill, so we need to conserve daily to help reduce some of the costs resulting from increased fuel prices.”

Here are the new fuel cost and purchased power charges for the three utilities:

Florida Power & Light Company: Based on the new fuel charges, the total monthly electric bill for residential customers using 1,000 kwh will be $110.77, effective August 4, 2008.

Progress Energy Florida, Inc.: Based on the new fuel charges, the total monthly electric bill for residential customers using 1,000 kwh will be $110.59, effective with the first billing cycle in August 2008. The Commission also voted to eliminate the $3.61 per 1,000 kwh storm cost recovery surcharge after the last billing cycle in July 2008.

Florida Public Utilities (Marianna): Based on the new fuel charges, the total monthly electric bill for residential customers using 1,000 kwh will be $123.45, effective July 29.

Florida Public Utilities (Fernandina Beach): Based on the new fuel charges, the total monthly electric bill for residential customers using 1,000 kwh will be $116.44, effective July 29.

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.

For additional information, visit www.floridapsc.com.



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