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PSC Transfers Vero Beach Electric Utility Customers, Rates Will Be Lower

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Customers who currently are served by the City of Vero Beach’s municipal electric utility may see a 21 percent decrease in their bills after the Florida Public Service Commission (PSC) today decided Florida Power & Light Company (FPL) should serve them.

The Commission directed FPL to charge customers in the added territory the same rates it charges its existing customers, which would result in an approximately $27 decrease on a typical 1,000 kWh monthly residential bill.

The decisions would go into effect only if the utilities close on their Asset Purchase and Sale Agreement (PSA) in which FPL would acquire Vero Beach’s electric utility assets and operations.

“Vero Beach customers will see many benefits from this acquisition, including lower rates, access to energy efficiency programs, and increased service reliability,” said Commissioner Gary F. Clark, adding “This Commission has always used the public interest as the measuring stick for its decisions, and today’s decision will have no adverse impact to existing FPL customers.”

The Vero Beach utility has approximately 35,000 residential, commercial, and industrial customers in the City of Vero Beach, a portion of the Town of Indian River Shores, and part of unincorporated Indian River County.  In today’s PSC meeting, several of those consumers and their elected officials asked the Commission to make them FPL customers.

The PSC does not have direct authority over changes in electric utility ownership, but changes in service territories and the rates that are charged require Commission approval.

FPL requested recognition for future ratemaking purposes of its investment of $116.2 million above the value of the assets it will acquire, and a majority of the Commission agreed.  

Under the PSA terms, FPL will purchase the Vero Beach utility system for $185 million by December 31, 2018.  FPL serves 4.9 million customer accounts across Florida.

For additional information, visit www.floridapsc.com.

PSC Finds Need for New FPL Dania Beach Plant

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The Florida Public Service Commission (PSC) today determined there is a need for Florida Power & Light Company (FPL) to replace its power plant in Broward County with a more efficient clean energy center. Expected to begin service in 2022, the new plant will increase system reliability at a reduced cost for FPL customers.

“The Dania Beach Clean Energy Center will save FPL customers from $299 to $364 million, as well as generate additional tax revenues for local governments and new jobs during the plant’s construction,” said PSC Chairman Art Graham. “The new plant will also reduce harmful air emissions, helping environmental quality.”

Commissioners agreed that retiring FPL’s existing Lauderdale plant this year, and reusing its infrastructure for the new facility is the most cost effective way to meet customers’ increasing power needs. Dania Beach will be a modernized 1,163 megawatt plant and will not require any new transmission lines, substation facilities, gas pipelines, or water supply. The project is expected to cost $888 million.

The existing Lauderdale plant has been upgraded or re-powered three times since its construction in 1925 as FPL’s first power plant. In contrast to Lauderdale, the new Dania Beach facility’s emission rates will be reduced by 95 percent for nitrogen oxide and by 22 percent for carbon dioxide, and its water allocation for power generation will be reduced by 1.0 to 1.69 million gallons per day.

FPL serves 4.9 million customer accounts across the state.

Florida PSC Approves Early Reduction of FPL Customers’ Bills

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The Florida Public Service Commission (PSC) voted to reduce bills for Florida Power & Light Company (FPL) customers today, approving reductions to the fuel, capacity, and environmental cost recovery components of rates. The annual adjustment of those bill elements wasn’t due until next January, but the PSC can adopt “mid-course corrections” when deviation from expected costs warrants it.

FPL filed for the reductions to reflect savings expected from the early retirement of the St. Johns River Power Park generating facility, a decision approved by the PSC in October 2017.

The coal-fired St. Johns plant was retired on January 5, 2018, decreasing fuel and capacity costs. FPL’s environmental costs are reduced by $1.2 million as a result of the plant’s retirement.

FPL’s fuel cost recovery component will be reduced by $0.24 per month, and a similar reduction will be applicable to capacity cost recovery factors. The 2018 environmental cost recovery factor for the residential rate will decrease from 0.159 cents per kWh to 0.158 cents per kWh.

Effective March 1, 2018, the reduced cost recovery factors will decrease FPL’s monthly bills by $.38 (from $99.75 to $99.37) for a typical 1,000 kWh residential customer bill.

Florida PSC Decides on FPL’s Environmental Recovery and Solar Project Costs

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The Florida Public Service Commission (PSC) today found that Florida Power & Light Company (FPL) acted prudently in complying with environmental regulatory agencies’ requirements for its Turkey Point Cooling Canal Monitoring Plan. FPL asked to recover the plan’s costs through the PSC’s Environmental Cost Recovery Clause (ECRC).
The Commission found that while under the oversight of three different government agencies, and their respective monitoring requirements, none of the agencies found that FPL withheld or submitted false data. After a thorough review of the record, the PSC concluded that FPL was prudent in its actions and expenditures for the historic operation of Turkey Point’s Cooling Canal Monitoring Plan. As required for ECRC recovery, FPL’s monitoring plan is prudent and part of a government mandated regulation and, therefore, the plan’s costs are appropriate for recovery.
While finding that FPL acted prudently, the PSC disallowed recovery of the utility’s $1.5 million escrow payment required by the Florida Department of Environmental Protection. FPL did not meet its burden of proof that the funds would be used to benefit FPL’s ratepayers. FPL’s 2017 and 2018 monitoring project costs and escrow payment removal are subject to true-up in future ECRC proceedings.
The PSC held an evidentiary hearing on October 25-27, 2017, which included parties from FPL, the Office of Public Counsel, the Florida Industrial Power Users Group, and the Southern Alliance for Clean Energy.
Solar Projects
Today, the PSC also approved FPL’s petition to recover its solar project costs through an increase in base rates, under the terms of its 2016 settlement.  The PSC determined that FPL’s 2017 and 2018 solar projects are cost effective and are projected to save customers $96 million.
In its petition, FPL is proposing to build eight solar facilities to be located in Manatee, Charlotte, and DeSoto Counties. The projected in-service date for the 2017 solar projects is December 31, 2017, and the projected in-service date for the 2018 projects is March 1, 2018.

Advocates win important first round against FPL’s leaking nuclear plant

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Judge rules that citizen groups’ Clean Water Act challenge can move forward

The Honorable United States District Judge Darrin P. Gayles, after a hearing and de novo review of the record on November 16, 2017, denied Florida Power & Light’s (FPL) Motion to Dismiss the Plaintiffs’ lawsuit against FPL for violations of the Clean Water Act and National Pollutant Discharge Elimination System (NPDES) permit caused by their Turkey Point facility near Miami. Judge Gayles also adopted the recommendations and report of Magistrate Judge Otazo-Reyes who heard the case on August 3, 2017. Based on Judge Gayles’ ruling, the case will now likely be set for trial in 2018.
The Plaintiffs, Southern Alliance for Clean Energy (SACE), Friends of Everglades (FOE) and Tropical Audubon Society (TAS), maintain that FPL’s proposed remedies will not stem the pollution from the Turkey Point facility’s open industrial cooling canals. Mechanical draft cooling towers are the best available control technology to fix the underlying problems at Turkey Point along with the closure of the failed cooling canals to stop the pollution seeping to Biscayne Bay and Biscayne National Park, and prevent additional groundwater contamination into the Biscayne Aquifer, South Florida’s sole source drinking water aquifer.
“We are pleased with the judge’s ruling and look forward to our day in court. Once again, FPL has attempted to obstruct legal efforts to scrutinize their illegal behavior that has caused repeated and continuous violations of the Clean Water Act by operating an open industrial sewer at Turkey Point,” said Dr. Stephen A. Smith, executive director for the Southern Alliance for Clean Energy. “FPL’s imprudent actions have led to historic and ongoing discharges to the surface waters of Biscayne Bay that impact water quality and public health and safety. FPL needs to take scientifically-sound, aggressive action to address the ongoing pollution and repair the damage that their Turkey Point facility has caused. Continuing to rely on this failed cooling system is nothing short of utility malpractice.”
“Improving the salinity regime of Biscayne Bay and returning estuarine conditions to the nearshore area to support wildlife are the main goals of the Biscayne Bay Coastal Wetlands Project, which is part of the 68 CERP projects within the Everglades Restoration Plan. The excessive salt loading from Turkey Point’s cooling canals is in direct conflict with these goals and with these large volumes of salt, there will likely be negligible improvements shown for the multi-million-dollar, tax-funded project. The decision to install cooling towers and the use of reuse water and the complete disconnection from the natural environment has the ability to make or break the success of this very important CERP project,” said Laura Reynolds, a consultant for Southern Alliance for Clean Energy.
In FPL’s Motion to Dismiss, and at last week’s hearing, FPL continued to allege that the 2016 Florida Department of Environmental Protection (DEP) Consent Order and the 2015 Florida Department of Environmental Resources Management (DERM) Consent Agreement was a bar to the lawsuit. FPL attempted to make the case that the state and local regulators had fully addressed surface-water pollution concerns that were raised in the lawsuit as the grounds for dismissing the lawsuit.
Dr. Jose Barros, president of Tropical Audubon Society, said, “Despite FPL’s objections to the decision, we are closer to getting our day in court to prove that FPL’s proposed actions are inadequate to protect our communities, our two national parks and our threatened wildlife. FPL and state regulators need to take the necessary steps to respect and protect these fragile ecosystems for the sake of our region’s health and safety. Building cooling towers will abate the salt loading into Biscayne Bay and the Southern Everglades caused by outdated cooling canals.”
Plaintiffs’ Attorney Gary Davis argued that while DEP and DERM addressed some elements of past ground-water pollution, they failed to address the full scope of surface water discharges and did nothing to abate the source of pollution. Davis argued that state and local regulatory efforts categorically failed to address the ongoing violations of FPL’s permits.
The Plaintiffs maintain that FPL’s cooling canal system will continue to harm Biscayne Bay and aquifer until comprehensive corrective action, such as replacing the antiquated cooling canals with new technology, is required.
“Judge Gayles’ decision represents an important, initial win for Floridians despite FPL’s continuing efforts to obstruct our case,” said Alan Farago, conservation chair of Friends of the Everglades. “With these threats to people and natural resources so clearly visible, we hope federal law can protect us when the state of Florida won’t. We’ve had our day in court and we will have another and another until FPL fixes its Turkey Point problems, once and for all.”
In a related proceeding, Southern Alliance for Clean Energy (SACE) recently filed its brief with the Florida Public Service Commission (PSC) arguing that customers should not have to pay for the cleanup of the underground contamination plume created by FPL’s negligent operation of the Turkey Point cooling canals for decades. The Commission will render a final decision on FPL’s request in the Environmental Cost Recovery Clause docket on December 12, 2017.
Additional Information:
Find the September 20, 2017 Magistrate Judge Alicia M. Otazo-Reyes’ Report and Recommendation denying FPL’s Motion to Dismiss here.
Find the original July 13, 2016 Clean Water Act lawsuit filing here and the amended complaint filed on October 11, 2016 here.
A telepress conference held by the citizen groups from August 2, 2017, explaining their case can be downloaded here.
Find the filed, expert declaration from Kirk Martin, a hydro-geologist and president of Water Science Associates, explaining the inadequacies with the enforcement efforts by the State (DEP). In August the groups filed a supplemental expert declaration further explaining how the County (DERM) regulatory agreement was similarly inadequate.
 

Sen. Jose Javier Rodriguez Proposes to Block FPL From Passing Turkey Point Clean-Up Costs onto Consumers

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Following evidence of water contamination emanating from Turkey Point potentially impacting our drinking water and Biscayne Bay, that Florida Power & Light was aware of for years, Sen. Jose Javier Rodriguez (D-Miami) has filed legislation that would prevent FPL from asking customer to pay more to remediate the contamination. The bill would block utilities from recovering costs to remediate environmental damage they knowingly caused. 
FPL has already made such a request. Yesterday, the Public Service Commission heard expert testimony on FPL’s request to charge customers $200 million in clean-up costs for the contamination coming from Turkey Point’s cooling canals. The Commission will vote in November on the request.
Sen. Rodriguez said:
“If FPL makes the mess, FPL shareholders should clean that mess up not consumers. FPL has known about water contamination coming from Turkey Point’s cooling canals for at least five years and potentially for decades and has done nothing while the problem worsened. It is outrageous that FPL would even think to ask consumers rather than their shareholders to shoulder the costs of an environmental mess they caused, tried to hide and could have resolved a long time ago at a fraction of the cost.”

Florida PSC Decides Nuclear Cost Recovery for FPL

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The Florida Public Service Commission (PSC) today agreed that there was insufficient evidence to decide on Florida Power & Light Company’s (FPL) request to defer recovery costs for its Turkey Point Units 6 & 7 Project (TP Project).
In July 2016, the PSC approved FPL’s request to defer consideration of recovery for its nuclear plant project costs until 2017.  However, FPL did not file a TP Project feasibility analysis for 2017, as required under Florida’s Nuclear Cost Recovery Clause (NCRC) rules. Therefore, the PSC determined that 2017 project costs are not eligible for recovery through the NCRC.
The Commission approved recovery of the utility’s costs for 2015 and 2016 that included $46,978,739 for the TP Project. Customers will be receiving a credit next year of $7,305,202.

PSC Hearing on Retiring St. Johns River Power Park Scheduled for Monday

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TALLAHASSEE—The Florida Public Service Commission (PSC) will conduct a hearing Monday, September 25, 2017, on Florida Power & Light Company’s (FPL) petition for approval to shut down the St. Johns River Power Park (SJRPP) at the end of this year. The plant’s retirement is expected to provide environmental benefits and save FPL customers millions of dollars. 

FPL and the Office of Public Counsel, which represents consumers, filed a settlement agreement for resolving all issues in the case.  The PSC may consider the settlement agreement during the hearing.

SJRPP is a coal-fired power plant jointly owned by FPL and JEA, the municipally-owned electric provider for the City of Jacksonville.

The hearing is scheduled for the following time and location:

Monday September 25, 2017

1:30 p.m.

Betty Easley Conference Center

Joseph P. Cresse Hearing Room (Room 148)

4075 Esplanade Way

Tallahassee, Florida

For additional information, visit www.floridapsc.com.

Follow the PSC on Twitter, @floridapsc.

PSC Approves FPL’s Interim Storm Recovery Charge for Hurricane Matthew

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The Florida Public Service Commission (PSC) approved Florida Power & Light Company’s (FPL) request to replenish its storm reserve fund following Hurricane Matthew. While the majority of the state was spared Matthew’s worst as the storm traveled up Florida’s east coast in October 2016, FPL’s service territory suffered substantial damage.

FPL’s petition filed on December 29, 2016, is based on its 2012 Revised Stipulation and Settlement Agreement, which allows FPL to collect hurricane-related costs and maintain a storm reserve fund.  This form of cost recovery is supported by the Office of Public Counsel, which represents all FPL customers.  A hearing will be set in the future to consider whether the costs are reasonable and prudent.

Today’s approved interim monthly charge for FPL residential customers is $3.36 per 1,000-kilowatt hours for 12 months, beginning March 2017 and continuing through February 2018.  FPL will recover approximately $318.5 million to cover costs associated with Hurricane Matthew and to replenish its storm reserve.

For additional information, visit www.floridapsc.com.

Follow the PSC on Twitter, @floridapsc.

FPL’s Increasingly Speculative Proposed Nuclear Reactors at Turkey Point Face Further Obstacles

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FPL’s Increasingly Speculative Proposed Nuclear Reactors at Turkey Point Face Further Obstacles as Toshiba-Westinghouse Faces Financial Meltdown

Utility, state and federal regulators should halt project, investigate

The unfolding financial meltdown of Japanese giant Toshiba, parent company of Westinghouse Electric Corp., the designer and builder of the two proposed AP1000 reactors at FPL’s Turkey Point facility, raises significant questions about the feasibility of FPL’s project and further underscores the likelihood that this project will never even begin construction. It was recently reported that Toshiba, via Westinghouse, is exiting the nuclear construction business. 

Due to a controversial early nuclear cost recovery law passed by the Florida state legislature in 2006 that shifted all the financial risk of construction activities from utility shareholders to customers, the Florida Public Service Commission (PSC) has approved collection from FPL customers of over $282 million for the increasingly speculative reactor project, units 6 and 7, at Turkey Point, near Homestead, Florida. Additionally, FPL has yet to receive a combined operating license (COL) from the U.S. Nuclear Regulatory Commission (NRC), which the utility applied for in 2010.

Clean energy advocacy organization, the Southern Alliance for Clean Energy, which has participated in proceedings before the PSC and NRC for many years, demands that FPL halt the project and that state and federal regulators cease permitting and related efforts required for the project until the full ramifications of Toshiba’s financial situation are evaluated. Below is SACE’s executive director, Dr. Stephen A. Smith’s statement: 

“FPL’s Turkey Point nuclear expansion project was questionable from the beginning and now nearly a decade later with hundreds of millions of customers’ dollars spent, there is even less likelihood that this risky, expensive project will ever materialize. Until the fallout from Toshiba-Westinghouse’s financial meltdown can be better understood, several things must happen at the state and federal levels.

The Florida PSC needs to immediately stop FPL from collecting any further charges from ratepayers for Turkey Point 6 and 7 as there is no way any additional expenses can be deemed as a prudent investment. The PSC should also begin an investigation on the ramifications of Westinghouse being out of the nuclear construction business. Any state permitting of this project for transmission lines and other needs has to stop.

The NRC should investigate as well and report to the public, state and federal agencies as to what this means for not only FPL’s proposed reactors, but any proposed AP1000 project and the delayed, over-budget four reactors under construction at Southern Company’s Plant Vogtle in Georgia and SCANA’s V.C. Summer in South Carolina.

And last, but certainly not least, FPL has to come clean and report to their customers via the PSC on the actual economic feasibility of this project, which they failed to do last year. Not one more dollar of customers’ money should be spent on this debacle. Customers will only truly be protected if FPL admits that the Turkey Point expansion project is uneconomical and stops wasting their customers’ limited financial resources.”

About Southern Alliance for Clean Energy
Founded in 1985, the Southern Alliance for Clean Energy is a nonprofit organization that promotes responsible energy choices that work to address the impacts of global climate change and ensure clean, safe, and healthy communities throughout the Southeast. Learn more at www.cleanenergy.org.