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Highlands Today

Area Light Bills Are Going Up

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By Bill Rettew Jr. | Highlands Today

Published: July 7, 2008

SEBRING — Progress Energy residential utility bills are going up in August.

Cherie Jacobs, Progress spokeswoman, blamed higher coal and oil prices for the 2-percent net increase in bills.

Monday, Chad DeMeere, of Sebring, was reconciled to paying more.

"It's got more to do with the price of fuel," said DeMeere. "What do you expect the power companies to do? It's big business."

Donald and Doris Hanby, of Avon Park, had already heard about the increase.
The couple also seemed resigned to increasing electricity charges, but seemed skeptical of rising food prices.

"I understand, and I agree with it," said Don Hanby. "It's something we all have to live with. But food and clothing –– they're blaming that on the energy thing."

The average Progress customer who uses 1,000 kwh will pay $6 a month more, but the increase will be partially offset by the discontinuation of a storm surcharge. The average customer is charged $3.61 a month to pay for Progress Energy's 2004 hurricane season expenses. The levy started in August 2005, and will end with the August bill.

The current charge per kwh is 10.89 cents and will rise to 11 cents a kwh, starting with the August meter reading billing cycle.

Since both the rate jump and surcharge discontinuation coincide, the charge to a 1,000 kwh user per month will go from $108.11 to $110.59. The increase will generate another $200 million for the provider.

"Rising fuel costs are a global issue that affect each of us when we fill up our gas tank," said Jacobs. "We know that these expenses can be a burden for our customers, and we are doing everything we can to mitigate cost increases.

"Progress Energy has the most diverse fuel mix of all Florida utilities, and we have long-term contracts for fuel whenever possible, to help minimize price swings."

Progress Energy has 1.7 customers statewide, and 53,000 customers in Highlands County.

Progress has the option of asking for an additional rate increase in September than what was already approved by the FPSC, which could trigger a steeper price raise in January.

"It depends on what happens with fuel prices," said Jacobs. "We could reapply."

Glades Electric Cooperative serves 16,000 members in Highlands, Okeechobee, Glades and Hendry counties.

Since Jan. 1, 2008, Glades Electric Cooperative members who use 1,000 kwhs per month saw a $6.41 increase for the generation fuel cost portion (a pass-through cost from Seminole Electric, the company's power provider) of their bills.

The Glades board of trustees voted, at the June board meeting, for an additional rate increase of $3.34 per 1000 kwhs.

A press release issued on Monday by Paul McGehee, Glades business development manager, said the hikes were due to the cost of "company vehicles, equipment, and on-site generation (which) has risen over 50% since the annual budget was constructed, in addition to materials cost increases for virtually every piece of inventory required to carry out the task of distributing electricity."

The total increase of $9.75 per 1,000 kwhs is an overall increase of 7.75 percent.

Bill Rettew Jr. may be reached at 386-5857 or wrettew@highlandstoday.com

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