FPL Storm Costs Get Approval

Industry, Legislative/Regulatory,

FPL LogoArticle reposted with permission from The News Service of Florida.

Florida Power & Light will return about $16 million to customers after state regulators Tuesday signed off on the utility’s costs related to Hurricane Ian, Hurricane Nicole and other storm-related expenses. The state Public Service Commission in March 2023 approved a plan to allow FPL to collect interim costs related to Ian and Nicole, remaining costs from some previous storms and money to replenish a storm reserve. FPL collected the money over a year-long period. The commission on Tuesday approved an agreement that included an accounting of the utility’s actual costs as compared to projections. The agreement, known as a stipulation, said FPL collected $1.313.764 billion, while its costs were $1.298.027 billion. FPL will return the extra money in a one-time bill credit. Florida utilities are allowed to recoup money from customers for expenses such as preparing for hurricanes and bringing in crews to help restore power after storms. After collecting money on an interim basis, they go through what is known as a “true-up” process to measure actual costs. Hurricane Ian made landfall in 2022 in Southwest Florida and caused damage as it moved across the state. The smaller Hurricane Nicole, meanwhile, made landfall on the East Coast. Both hit areas served by FPL. “These storms caused widespread devastation, flooding and customer service outages,” Joel Baker, an FPL attorney, told the commission Tuesday. “FPL was prepared to meet these challenges.” FPL reached the stipulation with the state Office of Public Counsel, which represents consumers in utility issues.