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Public Service Commission


10/24/2011 Contact: 850-413-6482

PSC Approves Nuclear Cost Recovery for PEF and FPL

TALLAHASSEE — To help secure a diversified and stable energy future for Florida, the Florida Public Service Commission (PSC) today approved cost recovery amounts for construction of planned nuclear generating plants and additions to existing nuclear plants for Progress Energy Florida (PEF) and Florida Power & Light Company (FPL).

PEF’s approved $85,951,036 recovery includes costs associated with construction of its proposed nuclear power plants, Levy Units 1 and 2, and adding capacity to its existing nuclear generating plant at Crystal River.  When completed, these projects will add approximately 2,380 megawatts (MW) of new nuclear base load generation to PEF’s system, enough energy to power 1.3 million homes.

A stipulated agreement, approved in August and included in today’s decision, saves PEF customers $500,000 in Project Management Costs for adding capacity to Crystal River Unit 3 (CR3).  The stipulation--between PEF, the Office of Public Counsel, and other intervenors--resolved whether the company prudently managed its CR3 uprate license agreement.

FPL’s approved $196,088,824 recovery includes costs associated with construction of its planned Turkey Point Units 6 and 7 and adding capacity to existing Turkey Point Units 3 and 4 and St. Lucie Units 1 and 2.  Over the life of the generating units, the additional capacity projects are expected to save customers an estimated $155 million to $1.5 billion.  When completed, these projects will add approximately 2,614 MW of new nuclear base load generation to FPL’s system, enough energy to power 1.4 million homes.

Estimated 2012 nuclear cost recovery is about $2.93 per month for the first 1,000 kilowatt hours (kwh) for PEF customers and about $2.20 per month, based on the current customer sales forecast, for the first 1,000 kwh for FPL customers.  The final approved amount for both PEF and FPL customer bills will be recovered through the fuel and capacity cost recovery charge on customer bills beginning next year.

To encourage the development of nuclear power, the Florida Legislature enacted a law in 2006 to permit utilities to recover some nuclear plant project costs during the construction process.  The PSC then adopted a rule on how to evaluate those costs annually.  Annual PSC nuclear cost recovery hearings, held this year on August 10-19, allow Commissioners to hear testimony from the utilities, consumer groups, and the public on recovery of actual and estimated project costs.

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