Florida PSC to consider depreciation rules for electric, natural gas utilities

The Florida Public Service Commission is scheduled to meet March 1 and consider, among other things, whether to revise rules surrounding depreciation of investor-owned electric utilities and gas utilities,

The depreciation rule changes being looked at by the PSC are designed to provide more consistency between the electric depreciation and gas depreciation rules.

The PSC staff has made a number of recommendations for changing current policy. The proposed changes would also have non fossil fueled power facilities provide information on how the units will ultimately be torn down and disposed of.

Current Florida rules say that each utility owning a fossil fuel generating unit is required to “establish a dismantlement accrual as approved by the Commission to accumulate a reserve that is sufficient to meet all expenses at the time of dismantlement.”

The PSC staff proposes to delete the term “fossil fuel” so that the same rule can encompass other forms of electric generation, such as renewable power facilities.

The issue involves Docket No. 150200-PU.

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.