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Public Service Commission


NEWS RELEASE


12/03/2015 Contact: 850-413-6482

PSC Finalizes 2016 Cost Recovery for Florida Electric Utilities


TALLAHASSEE — Florida’s Public Service Commission (PSC) has set recovery charges beginning in January 2016 for Florida’s five investor-owned electric utilities: Florida Power & Light Company (FPL), Duke Energy Florida, LLC (DEF), Tampa Electric Company (TECO), Gulf Power Company (Gulf), and Florida Public Utilities Company (FPUC). 

Recovery charges for Florida’s four largest IOUs were set during the PSC’s annual fuel hearing on November 2. FPUC’s recovery charges were set today when the Commission approved FPUC’s remaining issue to recover consulting and legal fees--associated with the review and analysis of FPUC’s purchase power agreements and future evaluative costs--through the fuel cost recovery clause.

In another outstanding issue from the November 2 hearing, the PSC approved the continuation of the IOUs’ existing fuel price hedging programs. Commissioners agreed that while natural gas prices have recently trended downward, the volatility of those prices can vary considerably. The Commission directed staff to work with stakeholders on a collaborative process to bring hedging program changes that benefit customers for Commissioners to consider next year.

By Florida Statute and established Commission policy, electric utilities may recover certain expenses from customers through cost recovery charges adjusted annually by the PSC. Cost recovery is allowed on fuel and purchased power, capacity (including nuclear), conservation, and environmental requirements. Utilities may not, however, earn a profit on fuel charges.

Most of the approved charges are related to fuel and are included in the fuel charge on customers’ bills. All other approved charges are included in the energy charge, which also includes the utilities’ base rate charge. FPL and DEF customers have a Commission-approved nuclear cost recovery amount included in the energy charge.

Including base rate changes, monthly bill charges in January 2016 for a residential customer using 1,000 kilowatt hours (kWh) are:

FPL: The current bill of $96.72 will decrease to $93.38, a reduction of $3.34.

FPL recovery amounts include: fuel and purchased power $25.80, capacity $4.54, conservation $1.86, environmental $2.63, nuclear $0.34, and Gross Receipts Tax $2.33.

DEF: The current bill of $121.59 will decrease to $114.15, a reduction of $7.44.

DEF recovery amounts include: fuel and purchased power $33.53, capacity $12.42, conservation $3.25, environmental $1.84, nuclear $1.76, and Gross Receipts Tax $2.85.

TECO: The current bill of $108.47 will decrease to $106.22, a reduction of $2.25.

TECO recovery amounts include: fuel and purchased power $33.61, capacity $1.78, conservation $1.91, environmental $4.32, and Gross Receipts Tax $2.66.

Gulf: The current bill of $139.29 will decrease to $135.58, a change of $3.71.

Gulf recovery amounts include: fuel and purchased power $36.78, capacity $9.19, conservation $0.68, environmental $21.09, and Gross Receipts Tax $3.39.

FPUC: The current bill of $141.10 will decrease to $140.34, a change of $0.94.

FPUC recovery amounts include: fuel and purchased power $101.88 (includes capacity), conservation $1.35, and Gross Receipts Tax $3.51.

For additional information, visit www.floridapsc.com.

Follow the PSC on Twitter, @floridapsc.



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