ST. PETERSBURG - Progress Energy Florida has filed requests it says would lower customers’ bills in 2011 for Citrus County and other counties under the PEF umbrella.

If approved by the Florida Public Service Commission (PSC), the company says, the changes would result in an annual savings of nearly $53 for residential customers using 1,000 kilowatt-hours (kWh) per month.

The changes proposed by the company are included in annual filings projecting costs for fuel and purchased power, environmental upgrades and nuclear charges. Based on the current filings, these changes will save a residential household $4.40 per month on a 1,000 kWh bill, or $52.80 over 12 months compared to current bills. The average reduction, if approved, will be up to 3 percent for commercial customers and up to 2 percent for industrial customers.

“Our actions to control costs through effective fuel management and efficient operations are resulting in savings for our customers,” said Vincent Dolan, president and CEO of Progress Energy Florida. “We know the lingering recession has taken a toll on many of our customers, and we’re focused on keeping electricity safe, reliable, environmentally sound and as affordable as possible for the households and businesses that depend on us.”

The cost of fuel and purchased power is down not only due to the company’s diligent cost management strategies but also due to lower commodity prices for coal and natural gas, the company’s two largest fuel sources. Environmental improvements at the company’s two largest coal-fired units, Crystal River 4 and 5, now allow the company to use less expensive coal while reducing the average annual emissions of the plant by over 80 percent (NOx reduced by approximately 93 percent and SO2 by approximately 97 percent). In addition, the decision to postpone major construction activities on the proposed Levy County nuclear project until after the federal licensing is complete has further lowered near-term costs for customers.

Later in September, the company will file estimated costs associated with state-mandated energy-efficiency programs. That charge is not yet known as the PSC has not made a final decision on Progress Energy’s required 10-year energy-efficiency plan. Under the company’s plan, Progress Energy would take a gradual approach to meet the PSC-mandated, aggressive 10-year goal. This approach would benefit customers by keeping electric bills lower in 2011.

The PSC decision, which has been deferred by the commission until Sept. 14, will determine the company’s final energy-efficiency goals and programs. If the commission mandates a more aggressive implementation model, the increase in energy-efficiency costs are projected to more than offset the savings for customers identified by the company in today’s filings.

“As we did with our base rate settlement and the adjustment to the Levy County nuclear plant schedule made earlier this year, we are working diligently to keep customer bills as stable as possible during these tough economic times,” said Dolan. "Our energy-efficiency proposal would further this goal and help to lessen otherwise substantial increases in customer bills over the next two years.”

The PSC decision on the nuclear charge will be made on Oct.12. The PSC hearings and votes on the fuel, environmental and energy conservation charges will take place Nov. 1 through 3. At that time, the total 2011 customer bill will be finalized, based on the PSC’s decision.