$196 million in advance for nukes that might never be built!

FPL to ask customers to pay $196 million to plan nukes, Sun Sentinel By Julie PatelAugust 8, 2011 Florida Power & Light wants to charge customers $196 million next year for costs to plan nuclear projects that may not be built…. FPL has proposed expanding four existing reactors and building two new ones. The proposed expansions still require approvals from federal and state agencies.

“I think it’s the paying in advance that I resent without something concrete in the making,” said Emily Doucette, a retiree in Pompano Beach…..

Critics plan to raise several key issues:

Cost-overruns. FPL should not have abandoned getting bids “with price-assured contracts” and other traditional construction practices meant to control costs for construction work related to the proposed expansions of four existing reactors, according to the Office of Public Counsel, the state’s advocate for utility customers. FPL implemented this “fast-tracked” approach to meet it goals for completion but the consumer advocate’s office argues that the move is leading to “rapidly increasing estimates of the cost to complete the…the projects” and they may end up costing more than FPL’s alternative plan, not to do them.

Transparency. The consumer advocate’s office also recommends that the PSC fine FPL a penalty for allegedly violating a rule that requires utilities to report estimated nuclear planning costs if they want to charge customers for them.

An investigator hired by FPL found last year that the utility provided “inaccurate and incomplete” information to regulators about the growing costs of its nuclear expansions. The consumer advocate’s office examined the issue itself and found that FPL’s cost estimates increased by $444 million in the months before it testified on costs but it did not report the changes….

Uncertainty. Both FPL and Progress Energy Florida are allegedly violating a rule that requires utilities that want to charge customers for nuclear planning costs to have a clear intent to build them, according to the Southern Alliance for Clean Energy. Last year, both utilities announced “delaying major capital expenditures” to build new reactors last year – and instead, said they would focus on the getting the required licenses – because of the uncertainty involved, SACE wrote to the PSC.

The Florida Industrial Power Users Group, a group that represents consumers that are businesses, said utilities should prove the projects are the most reasonable and cost-effective way to serve customers…..http://weblogs.sun-sentinel.com/business/realestate/housekeys/blog/2011/08/fpl_to_ask_customers_to_pay_19.html

August 9, 2011 - Posted by Christina Macpherson | business and costs, USA

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