Progress Energy Carolinas last week filed a request to lower the fuel rate charged to its South Carolina customers. If approved, the decrease will result in a monthly savings of about $2.05 for a residential customer using 1,000 kWh, and an annual savings of more than $24.

The costs of coal, natural gas and other fuels used to generate electricity rose significantly over the last decade but stabilized in late 2008 and early 2009. Progress Energy Carolinas is asking the Public Service Commission of South Carolina (PSC) to approve a $13.3 million decrease in the fuel component of its rates. If approved, the decrease would take effect July 1.

If approved, the average decrease would be about 2 percent for residential customers; 2.3 percent for commercial customers and 2.7 percent for industrial customers.

The fuel portion of the company's rates is adjusted annually by the PSC to reflect the actual cost of fuel the utility uses to produce electricity to meet customer demand. By law, Progress Energy does not make a profit from the fuel charge.

The other major component of the rates, the base rate, has not increased since 1988.

Progress Energy's power plants, including the H.B. Robinson Nuclear Plant near Hartsville, have been recognized nationally for sustained reliable and efficient performance. That performance, coupled with the company's diversity of power plant resources, has helped to keep fuel expenses as low as possible for customers.

"We continue to do all we can to generate and deliver energy and great customer service as efficiently and cost-effectively as possible," said Melody Birmingham-Byrd, vice president of Progress Energy Carolina's Southern Region, which includes all of the company's South Carolina service area. "We are pleased to be able to lower prices for our customers, and we'll continue to work hard to increase efficiency, while continuing to meet our customers' and regulators' expectations for reliable and environmentally sound service."