WUFT News

New Florida House bill could reduce utility rates, repeal cost recovery programs

By and on March 27th, 2013

The Florida House Energy and Utilities Subcommittee is proposing a bill that could reduce utility bills for many Florida residents.

The subcommittee held a hearing Wednesday with representatives from Florida Power and Light and Progress Energy to discuss cost recovery programs.

Cost recovery allows power companies to charge their customers in advance for new nuclear power plants. A problem with this plan is customers can be charged and not reimbursed even if power companies don’t end up building the plants.

Former U.S. Nuclear Regulatory Committee member Peter Bradford spoke out against cost recovery. He said the clause puts customers at risk of paying for nuclear plants that may never be developed.

Bradford also pointed out that power companies do not analyze whether some nuclear plants are in the best interests of the customers.

“They haven’t been required to conduct a rigorous, ongoing analysis using best cost estimates of alternatives, as to whether these plants remain in the best interest of the customers,” Bradford said.

Steven Scroggs, senior director of Florida Power and Light, spoke about the benefits of cost recovery for nuclear plants. He said the cost recovery clause allows power companies to increase their nuclear generation, which saves costumers money in the long run. He said cost recovery has been successful for Florida Power and Light and its customers.

“Through the nuclear cost recovery law, we were able to go forward with 500 new megawatts of base-load nuclear generation, the first nuclear generation in 30 years,” Scroggs said. “We were able to bring that on and provide our customers with savings of about 10 million dollars a month, over a 100 million dollars a year.”

Alex Glenn, Florida president of Progress Energy — which will become Duke Energy in late April — is also in favor of nuclear cost recovery. He said nuclear power is becoming a great alternative energy source as natural gas prices increase.

“We’re taking steps to maintain nuclear for the long term in the state, which we believe is the right choice,” Glenn said.

Members of the public voiced their opinions on cost recovery during the hearing. Charles Milsted, AARP Florida associate state director, said cost recovery is unfair to consumers.

“We believe with advance cost recovery that the consumer covers both the risk and the cost,” he said. “If the plant is built, the consumer will pay for it. If the plant is not built, the consumer will pay for it, and there is not likely to be a refund because many of them will not still be around.”

Currently, Progress Energy and Florida Power and Light customers may pay about two dollars per electric bill to cover nuclear plant construction. The proposed bill would repeal the cost recovery clause that allows this.


This entry was posted in Florida and tagged , , , . Bookmark the permalink.
 

More Stories in Florida

Court Limits Damages In UCF Player’s Death

The Supreme Court ruled Thursday the parents of University of Central Florida football player, Ereck Plancher, are limited to collecting $200,000 in a lawsuit they filed against UCF Athletics Association, Inc. Plancher collapsed and died in March 2008 after off-season football drills supervised by football coach George O’Leary.


Florida: Pot Strain Likely Available Later This Year

Florida officials predict a strain of marijuana, known as Charlotte’s Web, will be available for medical purposes later this year. The Department of Health released a statement that said they are moving quickly to allow access to it.


3 HANDGUNS, 1 RIFLE.
(2) GLOCK 17-9MM.
(1) SMITH AND WESSON M/P-.45CAL.
(1) BUSHMASTER XM15-E2S-.223CAL RIFLE.

Concealed Carry Law Leaves Unanswered Questions

Governor Rick Scott passed a bill May 22 that will allow for concealed carry of a weapon without a license for 48 hours after a mandatory evacuation has been ordered during the state of an emergency. Although it is already a law, some are questioning details pertaining to certain aspects of the bill.


Scott Signs Bills On Carrying Guns, Bolstering Child Protection

Gov. Rick Scott signed 44 bills into law Thursday. Among those bills is a provision to allow gun owners to carry their weapons in the case of emergency evacuation as well as a bill to expand the child-protection law.


Miami, Orlando Schools Ditch Styrofoam Trays

Miami and Orlando school districts will remove Styrofoam trays from school cafeterias and will replace them with compostable plates. The change within the districts is part of an effort to enact environmentally conscious changes in larger school districts.


Thank you for your support

WUFT depends on the support of our community — people like you — to help us continue to provide quality programming to North Central Florida.
Become a Sustainer
I want to support FM 89.1/NPR
I want to support Florida's 5/PBS
Donate a Vehicle
Underwriting Payments