Drop In Electricity Consumption Fuels Rate Debate (FL)

[jpak]

http://suncoastpasco.tbo.com/content/2009/jan/03/pg-drop-in-electricity-consumption-fuels-rate-deba/

NEW PORT RICHEY - With the demand for electricity declining in recent months, some state lawmakers want to short-circuit part of a rate increase of nearly 25 percent for Progress Energy Florida.

But utility executives are projecting that the demand for electricity in Florida will soon rebound. Progress Energy needs the full rate increase to make preparations to meet that demand, they argue.

The two sides are at odds over the part of the rate hike to help kick-start nuclear power projects that could take the better part of a decade to finish.

More than 11 percent of the Progress Energy rate increase will go toward the cost of the nuclear plant the utility wants to build in Levy County. The rest of the rate hike will pay for higher fuel costs.

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