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NEWS RELEASE


11/22/2011 Contact: 850-413-6482

PSC Approves Cost Recovery Amounts for PEF and FPUC; Modifies FPL Base Rates


TALLAHASSEE — The Florida Public Service Commission (PSC) today addressed issues for Progress Energy Florida (PEF) and Florida Public Utilities Company (FPUC) remaining from its annual cost recovery hearing held on November 2 and 3.

PEF’s request to recover replacement power costs for its Crystal River 3 (CR3) nuclear plant outage through the fuel adjustment clause was approved, subject to refund, and the Commission also approved environmental recovery costs for the utility’s self-generated replacement power resulting from the extended outage.

At the hearing earlier this month, the PSC deferred a decision on PEF’s 2012 cost recovery amounts to allow time for all parties to file comments on the utility’s CR3 replacement fuel costs.  A separate hearing is scheduled for June 11, 2012 to determine whether PEF's decisions on, or associated with, the CR3 steam generator repairs leading up to the October 2, 2009 delamination and resulting outage were reasonable and prudent.

FPUC’s proposed methodology to allocate energy demand costs to its various rate classes was denied today, and Commissioners agreed the company should continue to use its existing methodology.  Other FPUC cost recovery amounts were approved during the Commission’s cost recovery hearing.

Starting in January 2012, monthly bill charges for PEF’s and FPUC’s residential customers using 1,000 kilowatt hours (kWh) are:

 

  • PEF: The current total charge of $119.34 will increase to $123.19, a change of $3.85.  Recovery amounts included in PEF’s 2012 bill include: fuel and purchased power $48.60; capacity, which includes nuclear, $14.60; conservation $2.88; environmental $5.45; and Gross Receipts Tax $3.08.

 

  • FPUC Northwest Division: The current total charge of $137.53 will increase to $139.28, a change of $1.75.  Recovery amounts included in FPUC’s 2012 bill include: fuel and purchased power $103.07, conservation $1.15, and Gross Receipts Tax $3.48.

 

  • FPUC Northeast Division: The current total charge of $132.34 will decrease to $129.07, a change of $3.27.  Recovery amounts included in FPUC’s 2012 bill include: fuel and purchased power $93.11, conservation $1.15, and Gross Receipts Tax $3.23.

 

By Florida Statute and established Commission policy, electric utilities may recover certain expenses from customers through cost recovery charges adjusted annually by the PSC.  Cost recovery is allowed on fuel and purchased power, capacity (including nuclear), conservation, and environmental requirements.  Utilities may not, however, make a profit on fuel charges.

Cost recovery amounts were previously determined for Florida Power & Light Company (FPL), Tampa Electric Company, and Gulf Power Company during the PSC’s annual cost recovery hearing.

In other action, the PSC approved a slight adjustment in FPL’s base rates to pay for equipment used for expansion of its existing nuclear reactors.  Customers using 1,000 kWh will see a 23 cent increase on their monthly bills.

For additional information, visit www.floridapsc.com.

Follow the PSC on Twitter, @floridapsc.



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