Florida PSC approves reduction in Duke Energy nuclear plant asset value

The Florida Public Service Commission (PSC) has approved a settlement reducing Duke Energy Florida, Inc.’s (DEF) Crystal River 3 (CR3) Regulatory Asset by $15 million, which will benefit customers. Settlement signatories include DEF, the Office of Public Counsel, PCS Phosphate, Florida Retail Federation, and the Florida Industrial Power Users Group.

The settlement resolves all issues related to DEF’s CR3 Regulatory Asset value; however, it does not include issues related to DEF’s current Financing Order Petition. DEF has requested the PSC approve a financing plan costs associated with the CR3 nuclear power plant. The utility contends that using securitization—a financing order allowing a utility to recover costs by issuing bonds with lower financing costs–will save customers about $600 million over two decades, compared to traditional cost recovery methods.

“All parties—including OPC—agree that the settlement is good for customers. Today’s Commission approval of the $15 million asset reduction translates into customer savings,” said PSC Chairman Art Graham.  “During a hearing next month, we will learn more about securitization and how customers might benefit from DEF’s proposed financing plan.”

DEF’s Crystal River 3 Regulatory Asset hearing begins October 14.