Progress Energy Bow’s To Pressure

Bowing to pressure from the press and its customers, Progress Energy has announced to reduce rates by 11% after it increased prices in January by 25%. This is an obvious move by Progress Energy to avoid any further backlash from the general public over the rate increases in a bad economy.  What has been frustrating to customers is why Progress Energy had raised prices when the cost of fuel has been declining. While this is true, the Utility Company reports that the increase is necessary as they plan to build a new Nuclear Power Plant in Levy County and use the rate increases to cover the cost of construction.

For many customers in Central Florida, the rate decrease will amount to an average savings of $15.00 per month. Emails and letters and pressure from the local media really paid off in getting Progress Energy to change their stance on the rate increase.

This good news is only temporary though as the energy company is seeking another rate increase to take effect beginning in 2010. This would erase the new savings that they just announced. The reality is rates will continue to increase regardless of this short lived savings. Let’s hope Progress Energy uses the increases wisely for projects like Nuclear Energy or other types of renewable energy’s.