The Florida Public Service Commission (PSC) today kept rates stable for Florida Power & Light Company (FPL) customers, approving an Agreement recognizing about $238.8 million in Hurricane Dorian costs.
The Agreement—between FPL and the Office of Public Counsel, representing customers—recognizes the costs of crews FPL brought in and other steps the utility took in preparing for potential power outages.
“In what could have been massive utility outages from Dorian, FPL had to prepare for any potential storm outcome,” said PSC Chairman Gary Clark. “The parties agreed that no Hurricane Dorian storm related costs were imprudently incurred, and we found the Agreement to be in the public interest. FPL customer bills will not increase to cover these storm costs.”
Instead of asking the PSC to allow it to recoup Dorian costs though a customer surcharge, FPL implemented a financing mechanism known as a “depreciation reserve surplus amount.” In the Agreement, FPL will treat $5 million of incremental storm restoration costs as non-incremental costs recognized as base Operations & Maintenance expense and will reduce the overall Reserve Amount available for amortization by $5 million. Today’s Agreement approval avoids a PSC hearing scheduled to further review FPL’s storm expenses and resolves all issues in the case.
Causing massive destruction and devastation in the Bahamas in September 2019, Hurricane Dorian largely spared Florida, but the storm still brought winds, rain, and storm surge as it traveled up the state’s east coast. FPL had to contract crews to restore power and also incurred logistics costs, such as expenses related to staging sites and meals.
FPL serves nearly 5 million customer accounts in Florida.
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