August 05, 2013

PSC agrees to charge Duke Energy customers $108 million for shelved nuke plants

Duke Energy customers (formerly Progress Energy of Florida) spent $1 billion but never got an atom of energy from the Levy County nuclear power plant, nonetheless the Florida Public Service Commission agreed to let the company collect another $108 million a year through 2017 for the now shuttered Crystal River reactor and the canceled Levy County project.  

The decision by the PSC will add 89 cents a month for 1,000 kilowatts of energy to current bills for customers. The PSC also agreed to Duke Energy's request to defer approval of a proposed settlement agreement it entered into with the state Public Counsel's Office. The company agreed to end plans to build the Levy Plant and work out how to pay the $3.2 billion bill for ending that project and shuttering the Crystal River plant at a hearing next fall.

PSC Commissioner Eduardo Balbis raised doubts about the prudence of allowing the company to charge customers before providing evidence to regulators that the costs associated with the settlement are prudent and feasible.

But he and other commissioners concluded they had no other option, based on a state law that allows utilities to charge customers in advance for nuclear power plants, regardless of whether they are built or not, and a settlement agreement relating to the broken Crystal River plant. 

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Nuclear's future in Florida continues to dim, but will regulators let utilities keep collecting for it?

As the future of the nuclear energy industry in Florida appears to be dimming, the Florida Public Service Commission today takes up requests from Duke Energy Florida and Florida Power & Light to allow them to continue to ask customers to pay for projects they have no certainty of building.

Duke Energy Corp. on Thursday announced it had indefinitely postponed plans to build two new reactors in sparsely populated Levy County on the Gulf Coast, citing federal licensing delays and economic concerns. Those are topped by spiraling construction costs and uncertainty over whether Florida regulators and lawmakers will continue supporting controversial “cost-recovery’’ policies allowing utilities to bill customers in advance for plants with multibillion-dollar price tags.

The decision by the nation’s largest utility is the latest sign of cooling enthusiasm for nuclear power nationwide. It promises to increase scrutiny of Florida Power & Light’s plan to add two more reactors to its Turkey Point nuclear power plant on south Biscayne Bay.

Erik Hofmeyer, an FPL spokesman, said the utility constantly reviews changes in energy markets but remains committed to obtaining a license from the Nuclear Regulatory Commission for two next-generation reactors he said would save customers $78 billion in fuel costs over decades of operation. More here from Curtis Morgan.


Read more here: http://www.miamiherald.com/2013/08/03/v-fullstory/3539831/a-utility-pulls-plug-on-florida.html#storylink=cpy

May 03, 2013

Edgar wins reappointment to the PSC on 26-13 vote, after tough critique

The Florida Senate hit a snag late Friday as it the final day of session was winding down when a routine confirmation of Public Service Commissioner Lisa Edgar took a surprise turn as legislators spent a half-hour in vigorous debate before confirming her 26-13.

Edgar, who is seeking a third term on the board that regulates utilities, was criticized by several senators for too pro-utility while supporters said she was well-qualified and deserved another four years in the $130,000 job. She was appointed to the post by Gov. Rick Scott, after a commission dominated by legislators nominated her for a third term. 

Sen. Jack Latvala, R-Clearwater, led the opposition as supporters and opponents crossed party lines. As chairman of the Senate Ethics and Elections Committee, he had previously voted to confirm Edgar but decided he wanted to raise his concerns about her voting record. 

"She does not do an adequate job of representing the ratepayers and consumers of the State of Florida,'' he said. He said she could have been more aggressive in holding utilities accountable before allowing FloridaPower & Light and the former Progress Energy to charge customers for pre-construction costs for nuclear power plants.

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May 02, 2013

Supreme Court rejects clean energy advocate's challenge to nuke fees

On the same day the Florida Supreme Court upheld a nuclear fee on utility customers, Florida legislators sent to the governor new tools regulators can use to hold electric companies more accountable when collecting the money.

In a unanimous opinion, the Florida Supreme Court rejected the arguments of the South Alliance for Clean Energy which had claimed that the Public Service Commission exceeded its authority when it allowed the Florida Power & Light and Duke Energy (previously known as Progress Energy of Florida) to collect the nuclear fees for nuclear plants that may or may not be constructed.

The clean-energy coalition argued that the PSC decision was "arbitrary and unsupported by competent, substantial evidence.''  Download SCOFLA SACE ruling

The court ruled that the legislation provided sufficient guidelines that neither the agency nor the courts can determine whether the agency is carrying out the intent of the legislature. Citing a previous decision regarding AT&T, the court said there is “no indication that the legislative policy-making function has been usurped by or improperly transferred to the PSC.” 

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April 26, 2013

Senate passes rewrite of unpopular nuclear fee

The Florida Senate on Friday passed a bill that for the first time attempts to scale back the unpopular nuclear fee on customer utility bills by tightening oversight by the state’s utility regulators.

The bill, SB 1472, imposes new restrictions on the "early cost recovery" law passed in 2006 that allows electric companies to impose pre-construction costs for nuclear projects without any guarantee that the projects will be built. The bill passed unanimously with no discussion and will be sent to the House, which will take up a similar bill next week, the final week of the 60-day legislative session. 

"This significance of this is it creates a process that, for the first time, only allows rate recovery for the process of obtaining a license,’’ said Sen. John Legg, R-Lutz, who along with Sens. Wilton Simpson, R-Trilby, Jack Latvala, R-Clearwater and Jeff Brandes, R-St. Petersburg, are sponsors of the Senate bill. 

The Senate bill prohibits Progress Energy and Florida Power & Light from collecting the nuclear fees after July 1 unless they have shown proof of their intent to pursue a license for a nuclear reactor from federal authorities. The PSC has the power to determine how to interpret intent. 

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April 25, 2013

Senate amends nuclear fee bill

The Florida Senate on Thursday made minor changes to its plan to rework the unpopular nuclear fee on customer utility bills to tighten the oversight of the state’s utility regulators and make other changes with an amendment by Sen. John Legg, R-Lutz.

SB 1472 rewrites the nuclear cost recovery act enacted in 2006 that allows electric companies to impose pre-construction costs for nuclear projects. The amendment, added to the bill with no discussion, will give the Public Service Commission more discretion when reviewing the company’s justification for continuing to collect the nuclear fees from customers. It also requires that if Progress Energy of Florida Power & Light fails to show that it has committed enough money to a new plant, or if its intent is unrealistic, it can’t continue to collect the money.

The Senate amendment also prohibits Progress Energy and Florida Power & Light from collecting the nuclear fees after July 1 unless they have shown proof of their intent to develop the plant. The PSC has the power to determine how to interpret intent.

Since 2006, Progress Energy has charged customers more than $1 billion to expand the now-crippled Crystal River nuclear power plant and to start developing a new nuclear power plant in Levy County. The company terminated the Crystal River project but has kept $150 million of the money in profits from all its projects.

Florida Power & Light collected $530 million from the nuclear fee and used the money to finance expansions to its existing power plants at Turkey Point and in St. Lucie County. It has also proposed building two new reactors at Turkey Point but has not obtained a permit to do it.

Voter discontent with St. Petersburg-based Progress Energy’s troubled power plant has prompted four Tampa-area senators to take the more aggressive approach to revamping the law, although they have stopped short of repealing the proposal.

April 15, 2013

Senate committee grills, then approves, Edgar for third term on PSC

The Senate Ethics and Elections Committee grilled Public Service Commissioner Lisa Edgar about the regulatory board's role in charging customers a nuclear cost fee Monday and then voted to unanimously to approve her for a third term.

Edgar, who is the commission’s longest-serving member, said she believes that consumers have been well served by the commission and the 2006 law that allows consumers to be charged a fee to pay for nuclear plant development in advance of the plants being built. 

“If those projects go online, then consumers here in Florida will have saved millions and millions, and maybe even billions, over the course of the project,’’ she said.

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April 11, 2013

After years of no action, House committee moves bill to modify nuclear fee law

A Florida House committee signaled its willingness Thursday to make official what has already happened in practice and passed a bill that will end the future development of nuclear power plants in Florida.

The House Energy and Utility Committee approved PCB 13-01 to prevent utility companies from charging customers for the development of nuclear plants before they obtain a license and precludes any new power plants from being eligible to collect the nuclear fees.

“This is only a start but, it should not go unnoticed this is a big start,’’ said Rep. Jose Felix Diaz, R-Miami, chairman of the committee.

Since the nuclear cost recovery statute was passed in 2006, Progress Energy has charged customers more than $1 billion to expand the now shutdown Crystal River nuclear power plant and to start developing a new nuclear power plant in Levy County. The company terminated the Crystal River project, does not have a permit for the Levy County project, but has kept $150 million of the money in profits.

Florida Power & Light collected $511 million and used the money to finance expansions to its existing power plants at Turkey Point and in St. Lucie County. It has also proposed building two new reactors at Turkey Point but has not yet obtained a permit from the federal government to do it.

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March 27, 2013

As tides turn on nuclear fee, House leaders allow a hearing, hint at more to come

The Florida House broke its silence on the controversial nuclear cost recovery law Wednesday and, for the first time in years, allowed a workshop hearing into the controversial 2006 measure that allows electric utilities to charge customers for nuclear plants before they are built.

For years, legislators in both the House and Senate have filed bills to repeal the measure, alleging that it's a bad deal for customers, but the proposals never got a hearing. This year, three Republican senators have filed legislation to modify the law, the Senate conducted a hearing on the measure last week and the House followed on Wednesday.

The law has allowed Progress Energy to charge customers $1.5 billion for nuclear development costs before the plants go online.  Florida Power & Light customers paid $300 million for nuclear development costs that the company says will help pay for a 500 megawatt nuclear power expansion at its existing plant in St. Lucie County. The project will be completed this year and FPL plans to use the nuclear fee to pay for additional nuclear projects at its Turkey Point plants.

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December 13, 2012

PSC ready to sign onto a four-year FPL rate case deal

The Public Service Commission on Thursday agreed to award Florida Power & Light a $358 million base rate request that includes a series of rate increases over four years and rejected a call from the public counsel that the company scale back its rates.

After a morning hearing discussing the nuts and bolts of a proposed settlement, the five-member commission appears on track to vote 4-1 to modify the settlement agreement presented by the company, and allow FPL to received guaranteed profits of between 9.5 to 11.5 percent through 2016.

The settlement is less than the $378 million the company originally sought in its first settlement offer, but the profit level – which would guarantee a midpoint return on equity of 10.5 percent – is higher than the 10 percent the PSC staff recommended in a draft recommendation.

Commissioner Eduardo Balbis, who supported giving the company the 10.5 percent return on equity, expressed interest in demanding that the company also make a concession to collect at least $10 million less from consumers in other areas. No other commissioners would agree.

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