The Florida Public Service Commission (PSC) today approved a Settlement Agreement for Florida Power & Light Company’s (FPL) 2009 rate increase request that freezes base rates through 2012 and allows only selected bill charges to fluctuate, such as fuel and storm damage recovery.
The FPL Settlement includes the following:
Freezes base rates through 2012 unless the company’s return on equity (ROE) falls below nine percent, or exceeds eleven percent.
Allows for recovery of storm damage costs up to $4.00 on a typical 1,000 kilowatt-hour (kWh) monthly residential bill. However, if FPL incurs storm damage in excess of $800 million in a calendar year, FPL may petition the Commission to increase the initial 12-month recovery above the $4.00/1,000 kWh level.
Limits the recovery of costs associated with West County Unit 3 to the plant’s projected fuel savings. Customer rate impacts, if any, will depend on the energy generation required from the facility.
Filed in August, the Settlement Agreement addresses all final issues following the Commission’s decision in January to reduce FPL’s rate request from more than $1 billion to $75.5 million. The Commission also denied FPL’s request for a base rate increase in 2011, made several adjustments to the company’s expenses, and reduced FPL’s requested ROE of 12.5 percent to an authorized return of 10 percent.
Seven intervenors joined FPL in signing the Agreement, including the Office of Public Counsel, the Attorney General, Florida Industrial Power Users Group, Florida Retail Federation, South Florida Hospital and Healthcare Association, Federal Executive Agencies, and Associated Industries of Florida.
For additional information, visit www.floridapsc.com.