TALLAHASSEE — The Florida Public Service Commission (PSC) today approved a base rate increase of $350 million and a 10.5 percent Return on Equity (ROE) for Florida Power & Light Company (FPL). As FPL moves forward with construction of three new power plants, today’s decision provides rate certainty through 2016 for the customers and the utility and concludes the company’s rate case petition.
In FPL’s original request, filed on March 19, the company requested an 11.5 percent ROE and a $516.5 million base rate increase. A Settlement Agreement, filed on August 15, requested a $378 million increase and a 10.7 percent ROE. Today, FPL filed a new agreement, and Commissioners lowered the increase by $40 million over the life of the agreement by retaining the company’s current $5 late fee. An additional $18 million annual rate decrease was also awarded as part of the new agreement.
FPL, the Florida Power Industrial Users Group, the South Florida Hospital and Healthcare Association, and the Federal Executive Agencies signed the original Settlement Agreement and worked on a new agreement today that addressed the Commissioners concerns, including ROE, customer late fees, the overall revenue requirement, and incentive mechanism (also called asset optimization mechanism).
FPL filed its petition for a base rate increase on March 19, beginning months of Commission analyses and customer input. The PSC held nine customer hearings in FPL’s service territory, where PSC Commissioners heard from hundreds of customers about the utility’s proposed rate increase and its quality of service. Technical hearings were held in August and November, where evidence and testimony was presented from witnesses for FPL and intervenors in the case.
Customer rates for January 2013 will be available after FPL files its adjusted tariffs.