In Raleigh, Progress Energy Rate Hike Not Well Received by Upset Customers

Progress Energy, the Raleigh, North Carolina-based utility that is also the second largest electric company in the state of Florida, is asking for more money again. Citing the old stand-by, rising fuel costs, the company claims that it needs to increase rates by about eight percent (8%) throughout its Florida service area.

This rate increase hits a raw nerve with consumers. Already crunched by soaring gas and food prices juxtaposed against flat salaries, a utility increase is the last thing the public wants to see. After all, consumers feel as though they are already being asked to foot the bill for everything from short-sighted tax cuts to ballooning corporate CEO salaries all while trying to squeak by in a failing economy.

Progress Energy, though, says that the increase is necessary to offset its own fuel bill. Apparently, the permanency of the whopping-but supposedly temporary-- double-digit percentage increases in 2005 and 2006 failed to offset rising costs. Neither, apparently, did the one percent increase granted in 2007. Now, in 2008, the company is requesting a "significant" increase it claims is necessary to stay afloat.

Progress Energy's creative public relations staff somehow failed to advertise that the $504 million dollar profit they reported for 2007 would more than cover the increased costs. Yes, that summary is correct: the same company that reported five hundred and four million dollars in profit last year now claims that it must have another eight percent per month from each and every one of its subscribers in Florida in order to offset costs.

For some consumers, the idea that a company reporting hundreds of millions of dollars in profit would request a rate increase borders on obscene. For others, the profit idea takes a back seat to the idea of what the company is-or, more accurately, is not-doing with its money.

During one three month period last year, Vanessa Czekaj's residence in the Seminole County community of Fern Park experienced thirty nine (39) brief interruptions of electric service. These interruptions, known as "momentaries" in the power industry, happened sporadically with no apparent cause. They happened during thunderstorms and during clear days with no clouds in sight. Some happened during the daylight hours, some happened overnight or in the evening. The small, seemingly insignificant outages became a nightmare as computer and electronic components failed, appliances faltered and clocks became all but unreliable.

Progress Energy sent a technician who, after less than fifteen minutes of diagnosis, claimed that Progress Energy was not at fault. The company's representatives offered an explanation that a squirrel or other animal had been electrocuted on the power lines in the neighborhood, completely oblivious to the inaccessibility of the local underground wiring. "It was like they were making up anything they could to not claim responsibility," Ms. Czekaj said. "They didn't want to spend money on fixing a problem so they said there was no problem."

Discussions with local and corporate Progress Energy representatives yielded no result, and the company refused to issue a service credit or even an apology. "They didn't want to take any of the blame, just to charge as much as they could for unreliable service," she exclaimed. Progress Energy's media contacts were not immediately familiar with Ms. Czekaj's situation and declined to comment.

Despite the troubles with its service delivery and its incredible profit, Progress Energy is proceeding with its request for an 8% rate increase. With no competition in its electric service footprint, only the public service commission stands between the company and another profitable year.