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PSC OKs nuke-related rate hike for FPL

By Palm Beach Business.com

TALLAHASSEE — The Florida Public Service Commission on Monday allowed Juno Beach-based Florida Power & Light to raise consumer rates in order to cover the cost of new nuclear generators and other improvements at its Turkey Point and St. Lucie plants.

The PSC approval allows FPL to raise rates by $151 million, which translates to $1.69 a month for the typical residential user. Consumers will see the rate change in their January bill.

The PSC also approved $143 million request for Progress Energy.

FPL plans to build two additional units and expand two others at Turkey Point, while expanding two units at St. Lucie. The expansion is projected to generate enough electricity to power 1.4 million homes.

The PSC based its decision on a 2006 law that encourages utilities to build more nuclear power plants by allowing them to recover project costs in advance of completion.

Meanwhile, the PSC is scheduled to hear on Dec. 13 a proposed rate hike that would increase consumers’ bills by $10 a month over fours, including $4.10 a month come January and $1.74 a month in June. Three industry groups, the Florida Industrial Power Users Group, South Florida Hospital & Healthcare Association and Federal Executive Agencies, already have agreed to the rate hike. The Florida Consumer Advocate is opposing that settlement as unfair for the majority of FPL’s customers.

FPL said it expects much of the increase to be offset by lower fuel charges.