BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION

In Re: PEF’s Petition for Determination	 )
Of Need for Expansion of an Electrical	 )
Power Plant, for Exemption from Rule	 )	DOCKET NO.                 060642-EI
25-22.082, F.A.C., and for Cost Recovery	 )	Filed:                 November 20, 2006
through the Fuel Clause			 )
                                                                         )

AARP PETITION TO INTERVENE

	Pursuant to Sections 120.569 and 120.57(1), Florida Statutes and Rules 25-22.039, and 28-106.205, Florida Administrative Code, the AARP, through its undersigned attorney, files its Petition to Intervene, and in support thereof, states as follows:

	1.	The name and address of the affected agency is:
		Florida Public Service Commission
		2540 Shumard Oak Boulevard
		Tallahassee, Florida 32399-0850
	2.	The name and address of the petitioner is:
		AARP
		200 West College Street
		Tallahassee, Florida 32301 	
	3.	All pleadings, motions, orders and other documents directed to the petitioner should be served on:
		Michael B. Twomey
		Post Office Box 5256
		Tallahassee, Florida 32314-5256
		Phone:  (850) 421-9530
		FAX:    (850) 421-9530
		Email: miketwomey@talstar.com

4.      Progress Energy Florida, Inc. (“PEF”) is a regulated electric utility serving approximately 1.6 million retail customers throughout portions of the State of Florida.
5.	AARP is a nonprofit membership organization dedicated to addressing the needs
and interests of persons 50 and older.  AARP has staffed offices in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.  AARP represents more than 35 million members in total, approximately 2.8 million of whom reside in the State of Florida.  AARP’s Florida members reside throughout the state and a significant number of them are retail residential customers of PEF.   
AARP Florida Members’ Substantial Interests Affected
6.	As stated above, AARP has approximately 2.8 million members in the State of Florida, a significant number of whom reside in PEF’s service territory and take their electric service from the utility.  Therefore, many of AARP’s members will be substantially affected by any action the Commission takes in this docket, which will necessarily include retail rate increases through the utility’s fuel adjustment charges if its requested relief is granted.
	7.	Statement of Affected Interests 	
	The Commission will decide in this docket whether to approve PEF’s request, among the other relief requested, to recover the costs of it upgrading its Crystal River No. 3 nuclear generating unit through the Fuel and Purchased Power Cost Recovery Clause (“Fuel Clause”) as proposed.  According to its petition filed in this docket, PEF states that the “estimated cost of the power uprate itself is approximately $250 million.”  AARP takes the position that it is legally inappropriate to attempt to recover the capital costs of power plant additions through the Fuel Clause, whether new construction or plant upgrades.  Furthermore, AARP assumes that the $250 million cited by PEF is the minimum amount that PEF will attempt to recover from AARP’s members served by the utility and its other retail customers through the Fuel Clause. 
	8.	AARP’s members taking retail electric service from PEF have interests of the type this proceeding is designed to protect.  See  Agrico Chemical Company v. Department of Environmental Regulation, 406 So.2d 478 (Fla. 2nd DCA 1981).  The purpose of the proceeding is to evaluate PEF’s request and to review the nature of its costs and expenditures to determine if any such costs are appropriate for recovery as requested.  These issues will affect AARP’s PEF customer members’ substantial interests by potentially increasing their costs of electricity, which necessarily will reduce their monies available for other purposes.
9.	Disputed Issues of Material Fact  
	Whether the costs projected by PEF for the CR 3 upgrade are reasonable and prudent for the project as described. 
	10.	Disputed Legal Issues		
	Whether it is legally permissible for PEF to request, and the Commission to allow, the utility to recover the capital costs associated with the CR 3 upgrade through the Fuel Clause, as opposed to through its base rates.  Furthermore, whether this attempt to recover the capital costs associated with this power plant upgrade is contrary to the current rate case settlement agreement with AARP and its other customer groups whereby the utility has committed to not increase its base rates until after the expiration of the settlement agreement in 2009. 
	11.	Statement of Ultimate Facts Alleged		
	PEF is attempting to circumvent its current settlement agreement with AARP and its 

other customer groups by seeking to recover the capital costs associated with the proposed CR 3 upgrade through its Fuel Clause, as opposed to recovering those costs through its base rates.
	WHEREFORE, AARP requests that this Commission grant it intervenor status in this docket as a full party on behalf of the significant number of its approximately 2.8 million Florida members taking retail electric service from Progress Energy Florida, Inc.
						Respectfully submitted, 
						/s/ Michael B. Twomey___________                                                                 
						Michael B. Twomey
						Attorney for
						AARP 
						Post Office Box 5256
						Tallahassee, Florida 32314-5256
						Telephone: 850-421-9530
						Email: miketwomey@talstar.com

CERTIFICATE OF SERVICE
	I HEREBY CERTIFY that a true and correct copy of this petition has been served by U.S. Mail and electronic mail this  20th  day of November, 2006 on the following:

Lisa Bennett, Esquire
Office of the General Counsel
Florida Public Service Commission
2540 Shumard Oak Blvd.
Tallahassee, Florida  32399-0850

John W. McWhirter, Esquire
McWhirter Reeves
400 North Tampa Street
Tampa, Florida  33602

Harold A. McLean, Esquire
Joseph A. McGlothlin, Esquire
Patricia A. Christensen, Esquire
Office of the Public Counsel
c/o The Florida Legislature
111 West Madison Street
Tallahassee, Florida  32399-1400

James Michael Walls, Esquire
Dianne M. Tripplet, Esquire
Carlton Fields
Post Office Box 3239
Tampa, Florida 33601-3239

R. Alexander Glenn, Esquire
John T. Burnett, Esquire
Progress Energy Service Company
Post Office Box 14042
St. Petersburg, Florida 33733

Robert Scheffell Wright, Esquire
John T. LaVia, III, Esquire
Landers & Parsons
Post Office Box 271
Tallahassee, Florida 32302

Paul Lewis
Progress Energy Florida, Inc.
106 E. College Ave., Suite 800
Tallahassee, Florida 32301-7740

/s/  Michael B. Twomey_____
Attorney