3361649, 25-6.0423 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 3361649

Notice of Proposed Rule

Department:

PUBLIC SERVICE COMMISSION

Chapter:

ELECTRIC SERVICE BY ELECTRIC PUBLIC UTILITIES

Overview

RULE:

25-6.0423

Nuclear or Integrated Gasification Combined Cycle Power Plant Cost Recovery

PURPOSE:

The purpose of the rule is to implement Section 366.93, F.S., to promote electric utility investment in nuclear power plants by establishing cost recovery mechanisms that allow for the recovery in rates of all costs prudently incurred in the siting, design, licensing, and construction of a nuclear power plant.

SUMMARY:

The rule will establish cost recovery mechanisms that promote electric utility investment in nuclear power plants and allow for the recovery in rates of all costs prudently incurrent in the siting, design, licensing, and construction of a nuclear power plant. The rule addresses the treatment of site selection costs, preconstruction costs, and carrying costs on construction cost balances. The rule provides for separate hearings to determine the amount of pre-construction costs and company costs on construction cost balances to be recovered through the annual Capacity Cost Recovery Clause. The rule also provides for annual prudence reviews of construction costs. When the plant goes into commercial service, the rule establishes that base rates will be increased to cover the projected revenue requirement for the first 12 months the plant is in service, as well as the undepreciated cost of any plant retired as a result of bringing the nuclear unit on line. Since the time frame over which the undepreciated plant removed may be recovered is limited to a maximum of five years, the rule also requires that base rates be reduced by the amount included to recover any such undepreciated plant at the expiration of that recovery period.

RULEMAKING AUTHORITY:

350.127(2), 366.05(1) FS.

LAW:

366.93 FS.

PRINT PUBLISH DATE:

12/29/2006 Vol. 32/52

COMMENTS:

From 12/29/2006 To 1/19/2007 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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