Source: orlando.bizjournals.com
The Florida Public Service Commission (PSC) has ordered Progress Energy Florida to pay more than $7.6 million to its customers for excessive fuel costs in 2006 and 2007, arising from the use of a more expensive coal blend.
This order by the Public Service Commission, comes on the back of a previous order where in 2007, Progress Energy Florida was ordered to refund more than $13.8 million, again, for excessive fuel costs between 2003 and 2005.
Progress Energy provides electricity to more than 1.6 million customers in 35 counties in Florida and uses the harder, more expensive coal, imported from South America and from the Appalachian region of the Eastern U.S. to generate electricity.
Meanwhile, cheaper coal, mined in Wyoming and Montana has the capability and can be used to generate electricity, PSC found.
According to Florida Public Service Commission Chairman Mathew M. Carter II, “Today’s decision should encourage electric utilities to seek the lowest cost sources for their fuel purchases.”
On the contrary, Progress Energy Florida maintained that its purchases of coal were prudent and saved customers $3.1 million between 2006 and 2007. The PSC disagreed.
Progress Energy Florida, based in St. Petersburg, provides electricity and related services to about 800,000 customers in Central Florida.
PSC orders $7.6M Progress Energy refund
