Florida regulators slam on the brakes over rate increases
The two major nuclear utilities in Florida, Progress Energy (NYSE:PGN) and Florida Power & Light (FPL) (NYSE:FPL), came away Jan 13 from a meeting with the Public Service Commission (PSC) with a lot less than they asked for to build new nuclear power plants.
After a 10-month regulatory review, FPL got just $75 million out of a request of $1.3 billion to develop two 1,150 MW Westinghouse AP1000 nuclear reactors at Turkey Point near Miami.
The PSC also rejected the recommendation of its staff for a $357 million rate increase for FPL, denied the utility's requests of $49 million for executive compensation;, and, refused to agree to a request to set aside $150 million for future storm damage. Finally, the PSC slammed on the brakes for FPL's regulated rate-of-return dropping it from 12.5% to 10%.
Progress Energy fared much worse getting none of the $500 million it requested for two similar reactors at Levy County on the state's west coast.
Both utilities reacted by calling for a stop to work on a combined total of 4.6 GWe of new nuclear powered electricity generation capacity. The PSC's decision threatens to take the sunshine state from being one of the brightest spots in the nuclear renaissance to one of the darkest.
Read the full story exclusively at the EnergyCollective.
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