Electric Bills raise the Cost of living in Florida
After two years of bill reductions Progress Energy will raise electric bills in 2012. The Florida Public Service Commission received approval November 22 to increase rates by 3 percent. To give you an idea of how much this will cost Floridians, considering the usage of 1,000 kilowatt hours, Florida electric cost will increase to $123.19 per month. This is compared to the $119.34 per month, the cost in Florida currently. For commercial and industrial customers, bills will increase 4% and 5% respectively.
Why the sudden Increase in Cost?
The justification for the increased cost of electricity in Florida is due to the Crystal River Nuclear Power being out of service. This has resulted in more natural gas consumption, which is more expensive then Nuclear power. The Crystal River Nuclear Plant is Progress Energy's lowest-cost generation unit and provides service to more than 1.6 million people living in Florida.
Are Florida Law Makers Picking Favorites?
Instead of allowing market forces to prevail is appears that members of the Florida state legislature are stacking the deck. Back in 2006 the Florida Legislature passed a bill to allow Power companies to raise the cost of electricity in Florida to fund the construction of nuclear reactors. The key point is that your electric bill will go up before construction even begins. Now this is in stark contrast of how the rules apply to other energy sources. In every case except for Nuclear your power company is not allow to raise your bill due to construction cost until the work is actually completed. I find this very unconstitutional because it is not Florida's job to pick winners and looser via legislation. But what I'm going to say next is even more appalling. The early cost recovery statute in this piece of legislation states that even if the project is abandoned the Power company can still recover the cost of construction via your power bill! Read more on the Cost of living in Florida