– Projected total 2013 residential electric bill to decrease 6 percent

By Duke Energy

ST. PETERSBURG, FLA., AUG. 31, 2012 — /PRNewswire/ — Progress Energy Florida, a subsidiary of Duke Energy, today filed requests to lower average residential customer bills by 6 percent.

The company filed its annual requests with the Florida Public Service Commission (PSC) to recover the costs the company has paid for fuel used to generate electricity and purchased power. Fuel is one of the largest components of the electric rate.

Upon approval, the company’s annual filings would result in an overall decrease of approximately $7.44 per month, or nearly $90 per year, on a 1,000 kilowatt-hour (kWh) residential bill, from the current $123.19 to about $115.75. If approved by the PSC, new prices will take effect with the first billing cycle in January.

“Progress Energy Florida is working to manage and mitigate expenses, and we are focused on keeping electric costs as low as possible for the more than 1.6 million households and businesses that depend on us,” said Vincent Dolan, Progress Energy Florida state president. “We are working every day to operate our business more efficiently while continuing to provide our customers increasingly clean, reliable and affordable power now and in the future.”

The total reduction includes a $129 million refund to customers in 2013 as part of a comprehensive rate settlement previously approved by the Public Service Commission.

Customers will benefit from settlement-related refunds totaling $288 million through 2016.

A filing for investments in environmental compliance projects as required by state and federal law was made Aug. 30. The company plans to file its costs for annual energy-efficiency programs Sept. 12.

Below is a summary of the filings, based on a monthly 1,000-kWh residential bill:

Fuel: Filed today; decrease of $14.67 (from $48.60 to $33.93)
Purchased power: Filed today; increase of 70 cents (from $11.74 to $12.44)
Environmental compliance: Filed Aug. 30; decrease of 42 cents (from $5.45 to $5.03)
New nuclear generation: Filed May 1 and revised by a partial deferral requested Aug. 14; increase of $1.87 (from $2.86 to $4.73)
Energy-efficiency programs: To be filed Sept. 12; projecting minimal change from the current $2.88 charge.
When the adjustments in these filings are included with previously approved base rates and the gross receipts tax, the average customer bill would reflect an average decrease of $7.44 per month.

The largest decrease is in the fuel charge, which recovers the actual cost of fuel, mainly natural gas and coal, used to generate electricity. The continued low commodity price of natural gas and the settlement refund have reduced this charge.

The Aug. 31 filing also included estimates for an increase in the cost of purchased power. Utilities routinely purchase power to ensure customers’ energy needs are met in the most cost-effective manner possible.

The environmental compliance charge, filed Aug. 30, recovers the costs of environmental investments. Environmental improvements operating since May 2010 at the utility’s two largest coal-fired units, Crystal River 4 and 5, now allow Progress Energy Florida to use less expensive coal while reducing average annual emissions at

the units by 80 percent; nitrogen oxides by approximately 93 percent and sulfur dioxide by approximately 97 percent.

The PSC hearings on the fuel, capacity, environmental and energy-efficiency charges will take place Nov. 5-7. The PSC will finalize Progress Energy’s nuclear charge Nov. 20. At that time, the total 2013 customer bill will be determined.

For more information about Florida rates and a detailed breakdown of a current residential customer bill, visit www.progress-energy.com/floridarates.

Progress Energy Florida Progress Energy Florida, a subsidiary of Duke Energy (NYSE: DUK), provides electricity and related services to more than 1.6 million customers in Florida. The company is headquartered in St. Petersburg, Fla., and serves a territory encompassing more than 20,000 square miles including the cities of St. Petersburg and Clearwater, as well as the Central Florida area surrounding Orlando. Progress Energy Florida is pursuing a balanced approach to meeting the future energy needs of the region. That balance includes increased energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. More information is available at www.progress-energy.com.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at: www.duke-energy.com.

There is concern among some residents in Galion in Central Ohio that the city’s rates are going to go up as a result of a deal with a newly built power plant.

“Some Galion residents are concerned the city’s electric rates will skyrocket due to a deal with a newly-constructed coal-generating power plant in Illinois.

But City Manager Gene Toy and Kent Carson of American Municipal Power says it will be good for the city.

Toy says it is true to megawatt per hour rate Galion will pay Prairie State Energy increased from the time the agreement was approved in 2007 to the time construction was completed and it started generating electricity.

But he says the increase has been expected, and he does not believe it’s an added expense the city cannot handle, and doubts residential electric rates will increase.

Toy says Galion residents pay less per kilowatt hour than do customers of American Electric Power and First Energy, and the rates with Prairie State are locked in for thirty years.

Carson says the open market for electricity fluctuates wildly, with rates rising to $200-$300 a megawatt during peak usage periods in the hot summer months.

With Galion getting less than half its power from Prairie State, and being diversified with its remaining power coming from hydro-electric facilities in the Niagra and Ohio Rovers, and from a wind energy site in western Ohio, Carson believes the city will see stable electric rates for years to come.”

Temperatures breaching the low 100s are expected to hit all around the state early next week, according to the Electric Reliability Council of Texas (ERCOT).

By Monday, the high the Dallas-Fort Worth area should be in is about 100 degrees, according to the National Weather Service.

“This is exactly the season that the generators have been preparing for for several months,” says ERCOT’ spokesperson Robbie Searcy. “All the power producers in Texas know that it’s most important to have all of their units available when we start seeing hot summer days in Texas.”

ERCOT said, however, that there should be sufficient power supplies available to avoid hitting emergency alerts that call for rolling outages.

An extended heat wave and drought last summer forced ERCOT to declare emergencies on six days and shut power down on two days in August, avoiding widespread rolling outages, to interruptible customers. Those interruptible customers are large-scale industrial locations that take discounts on energy rates in exchange for volunteering their sites to lose power first when there’s trouble.

ERCOT suggests that retail customers curb their power consumption during the hot afternoons as well. “Any appliance that creates heat would be something to especially avoid during those peak demand hours,” Searcy explained “Hot stoves, clothes dryers, that sort of thing. Even if you have an electric hot water heater, minimizing your use of hot water during those few hours a day can make a big difference.”

In May, Texas set a monthly power demand record of 59,037 megawatts, surpassing the previous high set in May 2011 by 2.9 percent, according to initial ERCOT data. ERCOT’s all-time peak demand of 68,379 MW was set August 3, 2011.

ERCOT says they’ll use a variety of channels to keep the public informed throughout the summer. ERCOT Energy Saver, a new mobile app now available for Apple and Android devices, will provide real-time alerts when conservation is most critical in the ERCOT region. Users of the free app need to enable push notifications to receive these messages. ERCOT also will provide information through the news media, Facebook, Twitter and ERCOT’s new subscription-based EmergencyAlerts list.

Read More:http://stateimpact.npr.org/texas/2012/06/22/with-extreme-weather-coming-ercot-says-theyre-ready/

It was a much different financial environment 5 years ago when a group of investors that included Goldman Sachs pulled of the largest leveraged buyout ever. It totaled over $45 billion in debt financing used to purchase TXU, then the states largest power generator.

It’s no wonder that TXU rates are among the highest in the Texas electricity marketplace.

http://www.businessweek.com/ap/2012-05/D9V1GL1O1.htm

Given that shoppers can select one electricity company over another company the retail electricity providers who vie for your business do everything they can to keep rates low. Such pressure to keep electricity rates lowered is passed down to the electricity suppliers. Despite the fact that deregulation has been here for some time many Texas business owners still don’t understand just how the electricity market operates. There are several main reasons why people don’t make use of their choice of changing providers.

Competition is principal aspect in establishing the electricity rates Texas customers pay. Because electricity is deregulated in the state, residents possess the power to pick their electricity provider. When consumers compare electricity rates between individual providers they will usually find large differences in cost. There are several retail electric providers in Texas including Green Mountain Energy, Ambit Energy, Bounce Energy, Dpi Energy, and AmeriPower. Many of these companies offer prepaid electricity plans.

TDSPs transmit the power. They are in the business of sustaining the poles, and wires, and reading the meters and reporting the quantity of power that is used for the REPs. Should there be an electric power interruption they will be responsible for restoring services.

The make-up of the Texas electric marketplace promotes competitiveness within the market to encourage lower electricity rates in Texas. At the production levels energy producers have the need to maintain their rates and expenses low. This pressure also goes down to the electricity producer.

Competition is the basic factor in setting the electricity rates Tyler consumers pay. Because Tyler electricity is deregulated, residents hold the right to pick their electricity provider. When the people compare electricity rates between numerous providers they will usually find large disparities in price. There are numerous retail electric providers in Texas. These including Hudson Energy, Ambit Energy, Bounce Energy, Champion Energy Services, AmeriPower and dozens more.

Power generation companies sell from those that produce it to the REPs, who bundle the electricity with transmission and delivery service for sale to retail customers. Most commonly in Texas the power is generated using natural gas. However, nuclear power, wind, water, solar power, along with other renewable sources may also be used to generate electric power.

What differentiates one electricity provider in Mansfield from another? There’re several ways that electricity companies can stand above everybody else. The most important way they stand out is to provide you with lower electricity plans than the others. They could also separate themselves from others by giving incentive plans. Many electricity companies offer perks to customers. Many of these incentives can include discounts for other offerings. They can include airline miles or other deals.

Competition is key factor in setting the electric rates Galveston the general public pay. Because McAllen electricity markets are deregulated, end-users have the right to select their electricity provider. When customers compare electricity rates between various providers they will often find significant differences in plans. There are dozens of retail electric providers in Irving . Including Green Mountain Energy, TXU, Hudson Energy, TriEagle Electricity, StarTex Power, Ambit Energy, Cirro Energy, Dpi Energy, Affordable Power, Champion Energy Services, and AmeriPower.

The contract lenght of the electricity plan will also affect the rate. A lot of electric providers in Texas offer you month-to-month electricity plans. Other plan terms include 12 month electricity plans, 24 month electricity plans, 36 month electricity plans, and occasionally 6 month electricity plans. The price range of those plans may vary based on the expectation of future electricity rates. In Plano, 12 months is a common length for an electricity plan.

Gas costs will only continue to head north for quite a few years to come making renewable energy all the more important for meeting our future energy demands. Our need for fossil fuel derived electricity has come at great expense to our ecosystem. Thankfully scientists are working on alternative fuel sources which will be practical to implement and better for our environment. Though it may well not obtain the same media attention as other renewable power sources algae is a surprising possible fuel source that is showing excellent promise in the lab. Algae grow naturally worldwide in just about infinite quantities.

Algae an efficient way to generate biodiesel. Biodiesel can replace fossil fuels in any process that burns fuels to create energy such as electrical energy generators. There are a great number of benefits of algae over oil. Algae is infinitely renewable. Petroleum is running out and will not be replaced. Algae calls for very little to grow. Sunlight, moisture and CO2 is about all it wants. Everybody has seen pond scum. This is probably the most know algae and is also probably the most productive form for producing biofuel. Far from depleting the food supply, the parts that are not converted to biodiesel might be used for fertilizer and feedstock.

Corporations are slowly starting to get on the bandwagon in researching algae’s possible as biodiesel. A lot of the current study in the area is funded by private corporations instead of by governments or universities. Many people feel that study into algae as a source for biofuel just isn’t getting enough attention or funds. They feel that this can be a tremendous opportunity to start to break our dependence on fossil fuel power sources. However, the pace of the research is frustratingly slow. There is an underappreciated chance to eliminate fossil fuel dependence. Skeptics feel the deck may be stacked against algae; at least in the short term. There is a feeling that big oil companies have an economic incentive to realize every last bit of profit from oil even as the asset depletes.

Current shortages have driven oil prices up and continue to do so. The world’s energy needs will not go down absent some kind of global economic calamity. This means oil companies will always be able to find willing buyers for oil even as prices climb. The fossil fuel revolution has facilitated a period of unprecedented prosperity for mankind. But it has not come without a price. Certain nations through luck of geography have been endowed with vast quantities of fossil energy. This fact has been the source of much geopolitical complication for generations now. Algae theoretically can easily be grown locally and converted to electricity and fuel by any nation on earth. This levels the energy playing field. Today’s model of extracting fuel from one place in the globe and shipping it thousands of miles across oceans could be transformed to one of local production of algae to produce electricity and transportation fuel. This would mean more jobs in places where economic opportunity may be lacking today.

If scientists are able to transition the technology of algae to biofuel from the lab to full scale, real world production impact could be far-reaching.

Texas EPA Battle

2012, however, isn’t likely to be any easier. This according to ERCOT who holds the responsibility of insuring the reliability of the Texas grid. There are a large number of the electricity generating plants that are scheduled to be decommissioned over the coming months and still others that will be switched on later than initially expected.

Texas consumers have already felt the impact of a loss in electricity capacity. In 2011 over 6,00 MW of electricity capacity was lost due to plant closings. The result was rolling blackouts in February. The problem was made worse when freezing temperatures caused mechanical failure at several power stations. Texas had to take the unusual step of importing electricity from the Mexican electricity grid.

ERCOT has taken steps to try to prevent a repeat of February 2011 when the grid was unable to meet demand and was forced to implement targeted blackouts. Working with the PUC they are seeking to update rules to allow for greater participation of contingent electricity sources in the event of an electricity demand emergency.

ERCOT is also proactively reaching out to electricity operators within the Texas grid and asking them to confirm the accuracy of expected go-live dates for projects that will begin contributing electricity to the grid. Texas will have to monitor their power reserve margins, the safety buffer between demand and the system capacity, more closely than ever.

The challenges being faced by ERCOT right now are a complex mix of unprecedented weather behavior, economic pressures, and a set of new environmental protection agency rules that could lead to existing power plants being turned off because they will not be compliant with the new rules. 2011 will likely be remembered in Texas for weather extremes the likes of which have not been seen in living memory. The weather challenges faced by the Texas electricity grid started early in the year as February saw an ice storm that effectively shut down transportation and kept Texans in their homes where they turned on their heaters and demanded record electricity output from the grid. The record demand along with weather-related failures at certain key points in the power generation infrastructure forced ERCOT to implement controlled blackouts.

This was followed later in the year by high temperatures not seen in Texas in more than a generation. This again taxed the grid to a straining point. In addition to the extreme temperatures, 2011 is also notable for the continuation of an historic drought in Texas as wells as unrelenting wildfires.

The timing of the harsh onslaught of natural disasters is somewhat ironic considering that while dealing with these the Texas electricity system is also beginning to realize the impact of recent new EPA rules. The true impact of the new rules has been debated for a while but the time is rapidly approaching when the theoretical impact is giving way to real life impact as electricity plants that are unable to meet the new rules are closing down at precisely the time when Texas is struggling to generate enough electricity to meet demand. The impact of the new rules is not being felt just in Texas. The North American Electric Reliability Corporation (NERC), the organization in charge of maintaining the reliability of the North American grid, is lobbying the Obama administration for more time to comply with the new regulations in order to prevent possible electricity disruptions.

The Grand Prairie electricity marketplace is unregulated unlike other parts of the U.S. home owners in Texas enjoy a pick between electricity companies. Texas electrical power has been deregulated as far back as ’02. Before then electricity was regulated in terms of its generation distribution and resale.

Grand Prairie is a deregulated

marketplace. Which means that most homeowners within the state are able to go with the electric provider that offers the lowest electricity rates.

Power producing companies sell from those that produce it to the REPs, who bundle the power with transmission and delivery service for sale to retail customers. Most commonly in Brownwood all of this electricity is generated using natural gas. However, nuclear power, wind, water, along with other renewable sources are also employed to generate electric power in Irving .