A 12-year bond issue – the first approved under a law passed in 2005 –
will be used to reimburse Florida Power & Light for hurricane losses
incurred in 2004 and 2005.
The five member Florida Public Service Commission set the company’s
recovery at $1.13 billion, compared with the $1.7 billion sought by the utility.
The Commission staff’s preliminary estimates indicate a monthly surcharge to
pay off the bonds will be approximately $1.05 for 1000kwh of residential use.
Commission Chairman Lisa Edgar said, “Securitization will minimize the
rate impact on FP&L’s customers while allowing FP&L to be reimbursed
for restoration costs directly related to the storms.”
The company sought recovery of $213 million for losses outstanding from
the 2004 hurricane season, $826 million for losses incurred during the 2005
hurricane season, and a storm reserve of $650 million. The Commission reduced
the requested amounts to $198 million for the 2004 storm season, $735 million
for 2005, and a reserve of $200 million.