10 Connects Gets Answers to Your Questions on Electric Bill Hikes

St. Petersburg, Florida -- Since both Progress Energy and TECO announced electric rate hikes come January, residents have been wondering why.

Many of you contacted 10 Connects with concerns.

One viewer wrote, "Why? Fuel costs are lowest in years!" Another responded, "About the increase, I think it is BS, oil is down now."

So, 10 Connects went straight to the source to find out what's really behind these bigger bills. Progress Energy spokeswoman Suzanne Grant said, "We're concerned too. Progress Energy uses a mix of fuel. It's not just fuel oil which is comparable to gas prices. We actually mostly use coal and natural gas." As for the cost of coal, it has gone up nearly 100% since this time last year.

In fact, here's the breakdown of Progress Energy's sources:

40% - Coal
40% - Natural Gas
10-15% - Nuclear Power
10% - Crude Oil
>3% - Alternative Energies

" The issue really is fossil fuel dependency. That is one of the reasons why we want to get more nuclear generation," said Grant.

Hence the hike to help pay for a new plant that will pick up more of that energy generation. "When the new nuclear reactors come online in 2017, we'll be able to lessen our dependency on fossil fuel, generating electricity with nuclear," said Grant.

By that time, Progress Energy insists it will be saving customers $1 billion a year. That doesn't help customers now who are already struggling in a sluggish economy.

One viewer wrote, "I relocated to Florida to get away from political price-gouging and here it is again." But is it price-gouging? Grant answered, "It can't be price-gouging. The Public Service Commission won't allow that to happen."

As for the Commission, who approved the increase on Wednesday, none of the commissioners were available for comment. A media relations representative said it is the Commission's job to make sure utility companies are not profitting from fuel. If costs happen to go up legitimately (as it claims in this case), by law, the cost must be passed on to the customer.

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