Friday, February 27, 2009

FPL plans to request new $800-950 million annual base rate hikes

Very interesting paragraph way down in an excerpt from the new 10-K SEC filing by Florida Power & Light Co, issued this morning:
In November 2008, FPL notified the FPSC that it intends to initiate a base rate proceeding in March 2009. In the notification, FPL stated that it expects to request an $800 million to $950 million annual increase in base rates beginning on January 1, 2010 and an additional annual base rate increase beginning on January 1, 2011. These amounts exclude the effects of depreciation, which depend in part on the results of a detailed depreciation study that FPL is currently finalizing. Further, FPL expects to request that the FPSC continue to allow FPL to use the mechanism for recovery of the revenue requirements of any new power plant approved pursuant to the Siting Act that was established in FPL's 2005 rate agreement. Hearings on the base rate proceeding are expected during the third quarter of 2009 and a final decision is expected by the end of 2009. The final decision may approve rates that are different from those that FPL will request. (yellow-highlighted emphasis is ours)
So, any power plant approved by the Florida Public Services Commission under the terms of the 2005 base rate agreement -- including Turkey Point 6 & 7 nuclear reactors that are yet to be built -- are going to be used by FPL as justification for requesting yet another base rate hike of as much as $800 million to $950 million annually that would be passed along to its customers.

Get ready, folks! Looks like FPL is getting ready to stick it to us again!

See the full Management's Discussion and Analysis of Financial Condition and Results of Operationsfrom the 10-K filing online at Marketwatch, here.

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