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Utility regulators start turning down FPL

by Dara Kam | January 13th, 2010

Utility regulators began today’s proceedings on Florida Power & Light’s proposed $1.2 billion rate hike by saying “no” to two important items included in the 100-plus decisions related to the request.

The Public Service Commission refused to include a second year, 2011, in the Juno Beach-based utility’s proposal, knocking about $300 million off the rate hike request.

FPL was seeking a two-year increment in its base rate, about $1 million this year and $300 million next year.

Regulators said there is too much volatility in fuel prices and the banking industry to predict what will happen that far in the future.

The panel also turned down FPL’s request to continue making automatic adjustments in customers’ base rates when new plants or equipment other than solar or nuclear come on line. They said that gives the company too much leeway without oversight. A separate provision allows utilities to recoup construction costs for solar or nuclear plants outside of the base rate.

Still up for discussion: how much profit the state’s largest utility should be allowed to earn.

FPL President Armando Olivera is at the meeting.

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