Florida’s Public Service Commission (PSC) approved a refund of more than $13.8 million for Florida Power & Light Company (FPL) customers for replacement power costs attributable to a 2008 outage. The refund, applied as a reduction to the annual Fuel Cost Recovery factor, will lower FPL's 2011 fuel factors applied to customer bills.
On February 26, 2008, a fault occurred at FPL's Flagami substation in Miami-Dade County that caused three of FPL’s fossil-fueled generating units and its Turkey Point Nuclear Units 3 and 4 to trip offline. As a result, FPL was required to operate several less efficient peaking units, replace nuclear-fueled generation, and purchase power, all at a higher cost.
The Commission reviewed three options for implementing a refund and approved the one posing no additional customer costs for implementation during the annual Fuel Cost Recovery proceeding in November.
Based on the approved refund amount of $13,854,054, including interest, the estimated impact of a one-time credit on a 1,000 kWh residential bill would be $1.53. Using the approved true-up mechanism, the bill impact would be $.14 per month over a 12-month period.
The PSC approved a Proposed Resolution of Issues in January, agreeing that FPL should refund replacement power costs attributable to the 2008 outage. In March, the Commission held a hearing to address how much FPL must repay and how that repayment would be refunded.
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.