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NEWS RELEASE


10/14/2008 Contact: 850-413-6482

PSC Votes on Nuclear Cost Recovery for Florida Power & Light and Progress Energy Projects


TALLAHASSEE — Florida’s Public Service Commission (PSC) today approved cost recovery amounts covering construction of proposed new nuclear plants and upgrades to existing nuclear plants for Florida Power & Light Company (FPL) and Progress Energy Florida (PEF).  Costs will be recovered from customers through the capacity cost recovery charge on their bills beginning in January 2009.

“We are encouraging utility investment in nuclear electric generation today to ensure Florida’s residents have reliable power for tomorrow,” said PSC Chairman Matthew M. Carter II.  “The Legislature directed the Commission to address nuclear construction costs annually, to spread the rate impact to customers over time and to reduce financial and regulatory risk that would otherwise prevent nuclear projects.”

During 2009, FPL will recover $220,529,243 for the uprate of existing nuclear plants at Turkey Point and St. Lucie and for proposed new nuclear Units 6 & 7 at Turkey Point.  Completion of these projects will add 2,614 MWs of new nuclear base load generation to FPL’s system.  The new Turkey Point Units 6 & 7 are expected to come online in 2018 and 2020 and will power about one million average-sized residential homes using 1,200 kWh per month.

PEF will recover $418,311,136 for the uprate of its existing Crystal River nuclear plant and its proposed new nuclear facility in Levy County during 2009.  Completion of these projects will add 2,380 MWs of new nuclear base load generation to PEF’s system.  The new nuclear Levy Units 1 & 2 are expected to come online in 2016 and 2017 and will also power about one million average-sized residential homes using 1,200 kWh per month.

Upon PSC approval of a utility’s need for a nuclear plant upgrade or new plant construction, the utility can petition for cost recovery under the new Commission rule adopted in February 2007.  The PSC held the first annual nuclear cost recovery evidentiary hearings on September 11 and 12, where commissioners heard testimony from utility companies, consumer groups, and the public.  Today’s decision was based on evidence developed during those hearings. 

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.


 



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