Florida Commission to Decide Nuclear Plant Insurance Rate Offset

November 28, 2012

The state Public Service Commission is considering annual rate adjustments sought by Progress Energy Florida including a charge for power purchased to replace output from a crippled nuclear reactor.

The commission will decide on fuel, purchased power and other adjustments after resolving a dispute over how much insurance money Progress can expect in 2013 for the damaged reactor at Crystal River.

The utility anticipates only the remaining $327.6 million not yet received on a $490 million replacement power policy.

Groups representing commercial customers contend Progress should expect a second $490 million because the reactor’s containment building sustained two separate cracks in two different years.

That would reduce the replacement power costs passed on to customers by an equal amount.

A commission staff recommendation sides with the utility.