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Energy group wants court to throw out nuclear-cost law

TALLAHASSEE — The state law that has allowed Florida Power & Light and Progress Energy to charge customers $1 billion so far for speculative nuclear power plants is unconstitutional, a group of energy advocates claims in a lawsuit before the state's highest court.

The Southern Alliance for Clean Energy is asking the Florida Supreme Court to throw out the 2006 law and reverse a decision by state regulators who have allowed the companies to charge customers for upgrading existing nuclear power plants and for the pre-construction costs of building new nuclear power plants that may never be built.

"State-sanctioned monopolies are using this nuclear-tax scam as an entitlement to extract money from consumers," said Stephen A. Smith, executive director of the Southern Alliance for Clean Energy. "This is a really bad deal for the consumers of Florida."

The alliance filed an appeal with the court in December, asking it to reject an order by the Public Service Commission in October that allowed FPL to collect $196 million from customers for nuclear projects in 2012. The order allowed Progress to collect $86 million for projects this year.

Smith argues that the law is unconstitutional because it gives "unbridled discretion" to the Public Service Commission, the state agency that regulates utilities, to "make up law as they go" by modifying and changing the rules intended by legislators.

Since the law was passed, he said, the prospects for building nuclear power plants in Florida have changed dramatically. The projected cost of construction has tripled, the need has declined, and the questions about safety have grown, he said.

Meanwhile, the PSC has continued to allow the companies to charge customers for prospective nuclear projects and, in FPL's case, use $172 million of the fees authorized for 2012 to pay for improvements to its existing Turkey Point plant in Miami-Dade County and its St. Lucie plant on Hutchinson Island.

"As we've said all along, right now, FPL is going through a rigorous, multiyear state and federal licensing process required to build a new plant," said FPL spokesman Michael Waldron.

But the company has not committed to building the new plant.

"Once the licenses are obtained, we will conduct an analysis of electricity needs, projected fuel costs, and consult with our regulators to determine the course that will ensure our customers continue to experience the reliable, affordable electricity that they have come to expect," Waldron said.

Smith argues that "the Legislature created a sloppy law that is unconstitutional" and believes the PSC should be requiring the utility companies to prove the need for the power plants, given the changing economy, before it authorizes fees to customers.

Energy group wants court to throw out nuclear-cost law 01/23/12 [Last modified: Monday, January 23, 2012 10:29pm]
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