FLORIDA PSC APPROVES NUCLEAR COST RECOVERY FOR FPL AND PEF
(The following is a reformatted version of a press release issued by the Florida Public Service Commission and received via electronic mail. The release was confirmed by the sender.)
November 26, 2012
CONTACT: (850) 413-6482
PSC Approves Nuclear Cost Recovery for FPL and PEF
TALLAHASSEE -- To help secure a diversified and stable energy future for Florida, the Florida Public Service Commission (PSC) today approved cost recovery amounts for construction of planned nuclear generating plants and additions to existing nuclear plants for Progress Energy Florida (PEF) and Florida Power & Light Company (FPL).
PEF’s approved recovery of approximately $143 million includes costs associated with construction of its proposed nuclear power plant, Levy Units 1 and 2, and adding capacity to its existing Crystal River 3 (CR3) nuclear generating plant. CR3 recovery includes only prudent 2011 uprate costs, since the Commission approved PEF’s motion to defer 2012-13 CR3 project cost recovery to next year. When completed, PEF’s nuclear projects are projected to add approximately 2,380 megawatts (MW) of new nuclear base load generation to its system, enough energy to power 1.3 million homes.
FPL’s approved recovery of approximately $151 million recovery includes costs associated with construction of its planned Turkey Point Units 6 and 7 and adding capacity to existing Turkey Point Units 3 and 4 and St. Lucie Units 1 and 2. When completed, these projects are projected to add approximately 2,722 MW of new nuclear base load generation to FPL’s system, enough energy to power 1.4 million homes.
Estimated 2013 residential nuclear cost recovery, based on current sales forecast, is about $4.79 per month for the first 1,000 kilowatt hours (kWh) for PEF customers and about $1.69 per month for the first 1,000 kWh for FPL customers. Approved amounts for both PEF and FPL customer bills will be recovered through the fuel and capacity cost recovery charge on customer bills beginning in January.
To encourage the development of nuclear power, the Florida Legislature enacted a law in 2006 to permit utilities to recover some nuclear plant project costs during the construction process. The PSC then adopted a rule on how to evaluate those costs annually. Annual PSC nuclear cost recovery hearings, held this year in September, allow Commissioners to hear testimony from the utilities and consumer groups on recovery of actual and estimated project costs.
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