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NEWS RELEASE


08/03/2021 Contact: 850-413-6482

PSC Approves Florida IOUs’ Storm Cost Recovery Clause Costs


TALLAHASSEE — The Florida Public Service Commission (PSC) today approved Florida's investor-owned electric utilities’ (IOUs) transmission and distribution storm protection plan costs, allowing the utilities to recover them through the storm protection plan cost recovery clause (SPPCRC) in 2022. These plans are for grid hardening activities as part of a recently enacted state law to encourage more timely investments in storm protection.

“The utilities’ storm protection activities help reduce restoration costs, minimize outage times, and increase reliability,” said PSC Chairman Gary Clark.  “At today’s hearing, all case issues were agreed upon by the parties, and we approved the costs as reasonable for recovery through the SPPCRC.”

Under the law enacted by Florida’s Legislature in 2019 and PSC rules adopted to implement the law, IOUs must explain their storm hardening programs and projects for the coming year and show that the projects are consistent with their approved storm protection plans. The PSC is required to conduct an annual proceeding to determine the costs that can be recovered through the SPPCRC during the subsequent year. Each utility must file an updated storm protection plan at least every three years covering the next 10-year period.

Florida’s IOUs previously had storm hardening programs financed through base rates. The new law establishes a separate cost recovery mechanism specifically for storm protection activities.  To be eligible for recovery, utilities must show that these costs are not being recovered in base rates.  During proceedings in 2020 and 2021, utilities have removed these costs from base rates and transitioned them to the SPPCRC.

The utilities’ approved costs are below:

  • Florida Power & Light Company (FPL) and Gulf Power Company (Gulf):  $233,114,170, if the PSC approves unified rates for FPL and Gulf in Docket No. 20210015, or $214,467,156 for FPL and $18,607,637 for Gulf, if unified rates are not approved in the pending rate case.
  • Duke Energy Florida, LLC: $104,303,849
  • Tampa Electric Company:  $47,955,157

The PSC previously granted Florida Public Utilities Company, a Chesapeake Utilities Corp. company, a one-year delay in filing a storm protection plan, so the utility did not file for cost recovery.

For additional information, visit www.floridapsc.com.

Follow the PSC on Twitter, @floridapsc.