Florida’s Public Service Commission (PSC) today set recovery charges beginning in January 2014 for Florida Power & Light Company (FPL), after reviewing further evidence requested by Commissioners at the annual cost recovery hearings last month.
Implementation costs for the new federal Nuclear Regulatory Commission rules (established after Japan’s Fukushima event in 2011) were approved for recovery following terms in FPL’s 2012 Settlement Agreement. The PSC will annually audit and true-up these costs for accuracy.
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.
Also today, the Commission approved a $1.14 increase to FPL’s base rates for the completed extended power uprate project at its Turkey Point 4 nuclear unit. The project increased capacity and reliability at the unit and, as required by statute, expenditures can be included in base rates once the project is in commercial service.
Starting in January 2014, the monthly bill for an FPL residential customer using 1,000 kilowatt hours (kWh) will be $100.01, a $4.90 increase from the current $95.11 charge. FPL recovery amounts include: fuel and purchased power, $30.67; capacity, which includes nuclear, $7.86; conservation, $3.37; environmental, $2.30; and Gross Receipts Tax, $2.50.
Recovery amounts for Florida’s four other investor-owned electric utilities (IOU) were decided last month. The Commission’s news release detailing the IOUs’ 2014 residential customer bills using 1,000 kWh can be found here.
For additional information, visit http://www.floridapsc.com/.
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