Florida PSC orders Duke Energy customers to receive nuclear plant credit

The three-member panel of the Florida Public Service Commission (PSC) on Oct. 2 ordered that a credit be given to customers for $54m dollars in equipment that was never received for the Levy Nuclear Project (LNP). 

“We need to pause here and reflect on what is fair, just and in the public interest. $3.45 per month may not seem like a lot to some people, but it means everything to Duke’s customers,” said Commissioner Julie I. Brown. “Customers shouldn’t have to pay for something that was never delivered on,” Brown said.

The $3.45 a month was initially agreed to in order to recover remaining costs associated with the LNP project. Once the remaining costs are recovered, customers should expect that this charge will be removed from their bills. Because of this credit, the charge will now be removed much earlier than was anticipated under the prior settlement agreement.

“The Commission has the authority to order Duke to make this adjustment, and it is the right thing to do” said Commissioner Eduardo E. Balbis.

Added Commissioner Ronald A. Brisé, “This adjustment is within the authority of the Commission and was contemplated in the most recent Duke settlement agreement. The Commission is cognizant of the impact of this decision on Duke’s ratepayers who have carried a significant financial load without the benefit they thought they would receive.”

Duke has decided to shelve, for now, plans for the 2,200-MW Levy nuclear project although it is still pursuing a license through the U.S. Nuclear Regulatory Commission (NRC). Duke petitioned the Florida PSC for recovery in a Nuclear Cost Recovery Clause (NCRC) proceeding of its exit and wind-down costs for: the new Levy Units 1 and 2, each 1,100 MW in size; and for the Crystal River Unit 3 (CR3) Extended Power Uprate (EPU) Project.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.