FPL delays nuclear expansion as it deals with canal clean-up, but wants to charge customers for expansion anyway
Florida Power & Light has told state officials that it will put a four-year pause on its construction plans for two proposed nuclear power plants at its troubled Turkey Point site but it wants the state to waive the requirement that it show the project is still "feasible" in order to charge customers in advance for it.
"The analysis would impose a substantial hardship upon FPL and violate principles of fairness," FPL wrote in an motion filed April 27 with the Florida Public Service Commission.
This week, the City of Miami, consumer groups, environmental advocates and some of the state's largest electric power users, urged utility regulators to reject that request, saying FPL should be required to justify whether it is allowed to continue charging customers for a project that may be on the skids.
"If a project is no longer feasible or practical, then the costs incurred are not prudent,'' wrote City of Miami attorney Victoria Mendez in a motion filed with the PSC on Tuesday. "...Since FPL plans to continue recovering costs pursuant to section 366.93 while doing no additional work towards the completion of the project, it is imperative that FPL demonstrate the project is still economically feasible and practical.''
Since 2008, FPL has charged customers $281 million for the planning and licensing costs of two new nuclear power units -- Units 6 and 7 -- at its Turkey Point site on Biscayne Bay. It now wants to be able to charge customers another $22 million in the coming year.
The co-called "nuclear cost recovery" fee has been controversial since lawmakers created it in 2006. In 2013, after Duke Energy customers spent more than $1.5 billion financing a failed nuclear project, the Florida Legislature revised the law to require utility companies to prove that a nuclear project is feasible before the Public Service Commission gives the company permission to move into the "preconstruction" phase of the project.
"This annual feasibility analysis serves to safeguard customers from potentially paying millions of dollars over numerous years on a project when the long-term feasibility analysis may show that it is no longer viable going forward, and, accordingly, may be abandoned,'' wrote the Florida Office of Public Counsel, which represents the public in rate cases in its motion filed Monday.
The future of FPL's planned nuclear expansion project has become inevitably tied to the clean-up of a massive underground salt water plume that is migrating towards South Florida's water supply. The plume is expected to have been caused by the utility company's 2013 nuclear plant expansion, intended to increase power output by 15 percent, which forced the canals to become dangerously warm. Story here.