As part of the annual fuel proceeding, the Public Service Commission (PSC) has approved the recovery of a portion of the costs associated with Florida Power & Light Company’s (FPL) participation in the MoBay Gas Storage Facility that will begin operations in 2008. FPL’s participation is a forward-looking effort to address potential fuel supply disruptions. Customers will benefit from the reduced risk of fuel-related outages.
FPL will become an anchor tenant of the MoBay Gas Storage Hub in Mobile County, Alabama, that is to be built and operated by Falcon Gas Storage, Inc. With this stored gas, FPL will be able to operate its gas-fired plants for up to five days if traditional fuel supply sources are interrupted. The PSC anticipates that this storage capacity will substantially improve FPL’s ability to withstand disruptions to the Gulf of Mexico gas production facilities, like those seen during the 2005 hurricane season.
Chairman Lisa Polak Edgar stated, “It is the responsibility of the regulated utilities to be creative and forward-thinking on behalf of the state and their customers.”
The PSC did not approve recovery in fuel rates of the carrying charges associated with the gas inventory. Before authorizing recovery from customers, the PSC will examine project related expenses to ensure that only prudently incurred costs are recouped.