Florida Senate - 2007 SENATOR AMENDMENT
Bill No. SB 1202
Barcode 652690
CHAMBER ACTION
Senate House
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04/26/2007 03:39 PM .
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11 Senator Bennett moved the following amendment:
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13 Senate Amendment (with title amendment)
14 On page 2, line 20 through page 4, line 20, delete
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18 (2) Within 6 months after the enactment of this act,
19 the commission shall establish, by rule, alternative cost
20 recovery mechanisms for the recovery of costs incurred in the
21 siting, design, licensing, and construction of a nuclear or
22 advanced technology coal power plant. Such mechanisms shall be
23 designed to promote utility investment in nuclear or advanced
24 technology coal power plants and allow for the recovery in
25 rates of all prudently incurred costs, and shall include, but
26 are not limited to:
27 (a) Recovery through the capacity cost recovery clause
28 of any preconstruction costs.
29 (b) Recovery through an incremental increase in the
30 utility's capacity cost recovery clause rates of the carrying
31 costs on the utility's projected construction cost balance
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. SB 1202
Barcode 652690
1 associated with the nuclear or advanced technology coal power
2 plant. To encourage investment and provide certainty, for
3 nuclear or advanced technology coal power plant need petitions
4 submitted on or before December 31, 2010, associated carrying
5 costs shall be equal to the pretax AFUDC in effect upon this
6 act becoming law. For nuclear or advanced technology coal
7 power plants for which need petitions are submitted after
8 December 31, 2010, the utility's existing pretax AFUDC rate is
9 presumed to be appropriate unless determined otherwise by the
10 commission in the determination of need for the nuclear or
11 advanced technology coal power plant.
12 (3) After a petition for determination of need is
13 granted, a utility may petition the commission for cost
14 recovery as permitted by this section and commission rules.
15 (4) When the nuclear or advanced technology coal power
16 plant is placed in commercial service, the utility shall be
17 allowed to increase its base rate charges by the projected
18 annual revenue requirements of the nuclear or advanced
19 technology coal power plant based on the jurisdictional annual
20 revenue requirements of the plant for the first 12 months of
21 operation. The rate of return on capital investments shall be
22 calculated using the utility's rate of return last approved by
23 the commission prior to the commercial inservice date of the
24 nuclear or advanced technology coal power plant. If any
25 existing generating plant is retired as a result of operation
26 of the nuclear or advanced technology coal power plant, the
27 commission shall allow for the recovery, through an increase
28 in base rate charges, of the net book value of the retired
29 plant over a period not to exceed 5 years.
30 (5) The utility shall report to the commission
31 annually the budgeted and actual costs as compared to the
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. SB 1202
Barcode 652690
1 estimated inservice cost of the nuclear or advanced technology
2 coal power plant provided by the utility pursuant to s.
3 403.519(4), until the commercial operation of the nuclear or
4 advanced technology coal power plant. The utility shall
5 provide such information on an annual basis following the
6 final order by the commission approving the determination of
7 need for the nuclear or advanced technology coal power plant,
8 with the understanding that some costs may be higher than
9 estimated and other costs may be lower.
10 (6) In the event the utility elects not to complete or
11 is precluded from completing construction of the nuclear or
12 advanced technology coal power plant, the utility shall be
13 allowed to recover all prudent preconstruction and
14 construction costs incurred following the commission's
15 issuance of a final order granting a determination of need for
16 the nuclear or advanced technology coal power plant. The
17 utility shall recover such costs through the capacity cost
18 recovery clause over a period equal to the period during which
19 the costs were incurred or 5 years, whichever is greater. The
20 unrecovered balance during the recovery period will accrue
21 interest at the utility's weighted average cost of capital as
22 reported in the commission's earnings surveillance reporting
23 requirement for the prior year.
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26 ================ T I T L E A M E N D M E N T ===============
27 And the title is amended as follows:
28 On page 1, lines 1-9, delete those lines
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30 and insert:
31 A bill to be entitled
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. SB 1202
Barcode 652690
1 An act relating to power plants; amending s.
2 366.93, F.S., revising definitions relating to
3 certain power plants; requiring the Florida
4 Public Service Commission to implement rules
5 relating to cost recovery; requiring a report;
6 amending s.
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