Progress Energy, a company that provides electric and gas utilities, recently received approval from the Public Service Commission to charge customers for repairs to its Crystal River nuclear power plant and the costs of a proposed nuclear power plant in Levy County.
However, because of an offset of costs due to a decline in natural gas prices, customers could see savings on their monthly bills, said Rob Sumner, spokesman for Progress Energy.
“The average customer’s bill, that’s on a 1,000 kilowatt hours per month, will go down almost $7,” he said.
In accordance with the recently approved rate settlement agreement, the charge for construction and repair of nuclear power plants will be a fixed cost of $3.43 on a regular customer bill through 2017, Sumner said.
Sumner said for the 1,000-killowatt household the bill would be $123, but due to these new changes the bill would be $116, which saves about $80 per year.
According to Bloomberg, the cost of natural gas is at a 3 percent decline.
“Because our fuel costs less now we pass that along to our customers because we don’t make any money off our fuel purchases,” Sumner said. “That’s just a complete pass through.”
The charges the Public Service Commission approved will finance the repairs and construction Progress Energy has planned in Levy County and Crystal River, he said.
Progress Energy expects to get a combined operating license for the Levy County nuclear project in 2013. Service will start on the first united in 2024 and on the second unit 18 months later.
In terms of the Crystal River nuclear project, Sumner said Progress Energy is on track to have the unit back in service in 2014.
Kelsey Meany wrote this story for online.