Company Urges Customers to Conserve Now to Offset Impact of Rising Fuel Costs
WEST PALM BEACH, Fla., Nov. 16 /PRNewswire/ -- On Friday, the Florida Public Service Commission (PSC) denied a petition by Florida Public Utilities (FPU) for a fuel adjustment surcharge intended to phase-in the affects of rising fuel costs on its customers' pockets. The petition was generated as a method to help mitigate future rate shock to FPU's customers when the current favorable fuel contracts, which are substantially below market rates, end in December 2007. In 2008 electric fuel costs will revert back to market priced contracts and will likely result in a 30-50% increase in what customers can expect to pay for electricity.
FPU planned to hold the surcharge it collected in an interest bearing account until 2008 when its new fuel contracts took effect, then credit the entire amount of money collected plus interest back to its customers over a three-year period to allow for more gradual bill increases. The company wanted to spread the below market benefit on existing fuel contracts over a longer period of time. The PSC denied the request.
FPU does not generate the power used by its customers; rather the company purchases it from other sources. What FPU -- and in turn its customers -- are paying for this power under purchase agreements is passed through to customers. Utilities do not make a profit on these costs.
"We expect the cost of fuel to stay dramatically higher than our current, below market, contracts and we were hoping to alleviate some of the market price shock by slowly increasing the electric bills over a five-year period." according to George Bachman, FPU's CFO.
Even though FPU's rates will continue to be the lowest in the state, FPU urges its customers to begin implementing cost-saving energy conservation measures now. This is the best way to control the dramatic rise in utility bills that is expected to occur once the discounted purchased electricity ends. The Company offers free energy consultations and provides numerous cash rebates towards upgrading their home or businesses' energy efficiency. For more information about these programs and other energy-savings tips, customers should call their local FPU office or visit FPU's web site at http://www.fpuc.com/ .
Headquartered in West Palm Beach, FL, Florida Public Utilities (AMEX:FPU) has one of the industry's foremost safety records. Since 1924 FPU has provided reliable and competitively priced energy as well as value added services to over 91,000 customers in growing markets throughout Florida. The rates it charges customers for natural gas and electric are regulated by the Florida Public Service Commission. For more information about FPU, visit http://www.fpuc.com/ . DATASOURCE: Florida Public Utilities Company CONTACT: Laura Scotten, Manager Marketing Communications, Florida Public Utilities, +1-561-650-8433 Web site: http://www.fpuc.com/
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