Make us your home page
Instagram

Senate panel advances bill to put brakes on nuclear fees

TALLAHASSEE — For the first time in seven years, a Senate committee has stood up to the state's utility companies and unanimously passed a bill that would weaken a law that has allowed the companies to charge customers for nuclear projects before the projects are built.

The Senate Communications, Energy and Public Utilities Committee voted unanimously Monday for SB 1472, which would impose strict new requirements on utility companies by demanding that they obtain a license to build a power plant before they can continue to charge customers.

The bill is opposed by the state's largest utility companies, which for years have persuaded legislators not to change the 2006 law known as the Nuclear Cost Recovery Clause, even though costs of the plants have quadrupled and their construction plans were postponed.

"This is a responsible piece of legislation that we think puts reasonable parameters going forward," said Sen. John Legg, R-Trinity, one of the bill's sponsors.

The measure was hailed as a good first step by consumer and clean energy advocates.

"What is being proposed could be strengthened," said Susan Glickman of the Southern Alliance for Clean Energy, which has been fighting the law for years and is challenging it in court.

The 2006 law was intended to encourage the construction of expensive nuclear power plants by allowing companies to shift the risk of financing the projects from shareholders to ratepayers.

Utilities argued that the arrangement would save customers money in the long run. But the law includes no benchmarks or deadlines and allows the companies to pocket unlimited amounts of cash even if the projects fail.

The proposal — by Tampa Bay area Sens. Legg, Wilton Simpson, Jack Latvala and Jeff Brandes — originally said the law would be repealed by 2016 if power companies hadn't made significant progress on their proposed nuclear plants. The committee removed that provision on Monday and replaced it with a set of benchmarks proposed by Simpson for companies to meet in order to continue collecting from customers.

Among them: Only costs associated with obtaining the license could be recovered until the license is obtained, and after that, the company would have to seek approval from the Public Service Commission.

Another Simpson amendment passed by the committee would require Progress Energy Florida to pass a "prudency review" and justify why its proposed nuclear reactor in Levy County is still a good idea.

The Levy County project has come under fire after the project ballooned in cost from an original estimate of about $5 billion to $24 billion. Customers have paid $1.5 billion for the costs, and there is no guarantee the project will get built. Progress Energy has been able to pocket $150 million in profits from the project.

The committee also adopted an amendment by Sen. Anitere Flores, R-Miami, that removed a provision in the bill that would have required the utility companies to pay back customers if they canceled the proposed nuclear projects. Flores said the change was needed to encourage companies to abandon a failed project rather than continue pushing it to avoid paying back the utility fees.

"I wouldn't want to provide any incentives for utilities to make decisions that may sound good in the short term but may end up costing the consumer more," she said.

The bill appears to be on the fast-track in the Senate, where it faces a hearing before the Senate Community Affairs Committee, which Simpson chairs, and then goes to the Senate floor.

Susan Clark, an attorney representing Florida Power & Light, Progress Energy, Gulf Power and Tampa Electric, said the state's largest utility companies oppose the bill.

"We simply urge you not to be hasty in amendment or repeal of that legislation," she said. "Minor changes to the statute can impose enormous risks and put nuclear projects in jeopardy."

A similar bill is scheduled to be heard by the House Energy and Utility Committee on Thursday, and senators plan to propose an amendment to the budget on Wednesday that would require the PSC to conduct its "prudency review" of the Progress Energy plant regardless of whether SB 1472 moves forward.

"I think there's a 50 percent chance we'll get something done this year," Latvala said.

Senate panel advances bill to put brakes on nuclear fees 04/08/13 [Last modified: Monday, April 8, 2013 11:36pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Federal agencies demand records from SeaWorld theme park

    Tourism

    ORLANDO — Two federal agencies are reportedly demanding financial records from SeaWorld.

    Killer whales Ikaika and Corky participate in behaviors commonly done in the wild during SeaWorld's Killer Whale educational presentation in this photo from Jan. 9. SeaWorld has been subpoenaed by two federal agencies for comments that executives and the company made in August 2014 about the impact from the "Blackfish" documentary. 
[Nelvin C. Cepeda/San Diego Union-Tribune/TNS]
  2. Legalized medical marijuana signed into law by Rick Scott

    State Roundup

    TALLAHASSEE — Gov. Rick Scott on Friday signed into law a broader medical marijuana system for the state, following through on a promise he made earlier this month.

    Gov. Rick Scott signed legislation on Friday that legalizes medical marijuana in Florida.
  3. Line of moms welcome Once Upon A Child to Carrollwood

    Business

    CARROLLWOOD — Strollers of all shapes and sizes are lined up in front of the store, and inside, there are racks of children's clothing in every color of the rainbow.

    At Once Upon A Child, you often as many baby strollers outside as you find baby furniture and accessories. It recently opened this location in Carrollwood. Photo by Danielle Hauser
  4. Pastries N Chaat brings North India cuisine to North Tampa

    Business

    TAMPA — Pastries N Chaat, a new restaurant offering Indian street food, opened this week near the University of South Florida.

    The menu at Pastries N Chaat includes a large variety of Biriyani, an entree owners say is beloved by millions. Photo courtesy of Pastries N Chaat.
  5. 'Garbage juice' seen as threat to drinking water in Florida Panhandle county

    Water

    To Waste Management, the nation's largest handler of garbage, the liquid that winds up at the bottom of a landfill is called "leachate," and it can safely be disposed of in a well that's 4,200 feet deep.

    Three samples that were displayed by Jackson County NAACP President Ronstance Pittman at a public meeting on Waste Management's deep well injection proposal. The sample on the left is full of leachate from the Jackson County landfill, the stuff that would be injected into the well. The sample on the right shows leachate after it's been treated at a wastewater treatment plant. The one in the middle is tap water.