Progress Energy Florida Reaches Multi-year Agreement With Consumer Advocates Regarding Crystal River Nuclear Outage; Provide $288M Refund

Today, Progress Energy filed a comprehensive settlement agreement with the Florida Public Service Commission (FPSC) that will help moderate electricity costs for customers in the coming years. Developed collaboratively with the Office of Public Counsel and other consumer advocates, the agreement provides customers a refund of a portion of Crystal River Nuclear Plant (CR3) replacement fuel costs and rate certainty related to the company's proposed Levy County nuclear project and base rates. "This agreement reflects the hard work of numerous organizations and individuals who recognize that the lingering slow economy continues to affect many of our customers," said Vincent Dolan, Progress Energy Florida president and CEO. "The agreement helps to ensure the continued safe, reliable and environmentally sound operation of the electric system that serves more than 1.6 million Florida families and businesses." The agreement: Provides for a $288 million refund to customers of replacement power costs associated with the ongoing CR3 outage; Removes CR3 from base rates while the company continues to analyze options for the plant; Limits costs customers will be charged through 2017 for the proposed Levy County nuclear project; and Allows for base rates to adjust in 2013, better reflecting the true costs for the company to maintain and improve the electric system. If approved by the FPSC, the settlement will take effect with the first billing cycle of January 2013.