FPL approved for $62 million cost recovery on nuclear plants; bills to go up (again…)

To continue investment in nuclear electric generation, the Florida Public Service Commission (PSC) today approved cost recovery amounts for Florida Power & Light Company (FPL) and Progress Energy Florida (PEF) related to construction of planned nuclear generating plants and uprates of existing generating units.  Costs will be recovered through the capacity cost recovery charge on customer bills beginning in 2010.

FPL’s approved $62,676,816 cost recovery includes costs associated with the uprate of its existing nuclear generating plants, Turkey Point (on Biscayne Bay in Miami) Units 3 and 4 and St. Lucie Units 1 and 2, and the construction of its proposed nuclear power plants, Turkey Point Units 6 and 7.  These completed projects will add 2,614 megawatts (MW) of new nuclear base load generation to FPL’s system, enough energy to power 1.4 million homes.

PEF’s approved $213,238,415 cost recovery includes costs associated with the uprate of its existing nuclear generating plant at Crystal River, and the construction of its proposed nuclear power plants, Levy Units 1 and 2.  These completed projects will add 2,380 MWs of new nuclear base load generation to Progress Energy’s system, enough energy to power 1.3 million homes.

“Nuclear power provides fuel diversity and will save Florida residents money on future utility bills,” said PSC Chairman Matthew M. Carter II.  “The Legislature enabled utilities to plan for tomorrow by spreading the rate impact over time.  Utilities have to begin spending now to meet future power needs that will keep the lights on for us, our children, and our grandchildren at prices we can afford.”

With today’s decision, FPL’s customers are projected to pay about 67 cents per month for the first 1,000 kilowatt hours, and PEF’s customers will pay about $5.86 per month.  The final approved amount for customer bills, however, will be determined after the PSC’s decision in the annual fuel cost recovery clause hearing beginning November 2.

The Florida Legislature enacted a law in 2006 to encourage the development of nuclear power by permitting cost recovery for some nuclear plant project costs during the construction process.  The PSC then adopted a rule on how it evaluates those costs annually.  The PSC held its annual nuclear cost recovery hearings September 8-10, where Commissioners heard testimony from the utilities, consumer groups, and the public.

The PSC is committed to making sure that Florida’s consumers receive their electric, natural gas, telephone, water, and wastewater services in a safe, affordable, and reliable manner. The PSC exercises regulatory authority over utilities in the areas of rate base/economic regulation; competitive market oversight; and monitoring of safety, reliability, and service.

For additional information, visit www.floridapsc.com.

Posted by Andrea Freygang on Oct 16 2009. Filed under Broward County, Business, Coconut Creek, Coral Springs, Dania, Davie, Environmental, Fort Lauderdale, Hallandale, Lauderdale Lakes, Lauderdale by the Sea, Local news, Miami, Miramar, North Lauderdale, Oakland Park, Palm Beach, Parkland, Pembroke Park, Pembroke Pines, Plantation, Tallahassee, Weston, cooper city, wilton manors. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry