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Nuclear plants can pass on costs

The Public Service Commission on Tuesday adopted new rules to spur the construction of nuclear power plants in Florida.

By Times Staff Writer
Published February 14, 2007

The Public Service Commission on Tuesday adopted new rules to spur the construction of nuclear power plants in Florida.

The bottom line: Investor-owned utilities, such as Progress Energy, intending to build nuclear plants in the state will be able to pass on the upfront costs of construction to customers early. Specifically, a utility can request partial recovery of planning and construction costs before a nuclear plant becomes operational.

"Early recovery should reduce risks and encourage financial investment in nuclear power plants by allowing prudent costs to be recouped as they are incurred," the commission said in a statement. If utilities had to wait to recover their capital costs, the commission said, it could lead to a "rate shock."

PSC chairman Lisa Polak Edgar described the rules as a way to "protect ratepayers while promoting investment in Florida's energy future."

Progress Energy Florida has picked a tract north of the Tampa Bay area in Levy County to build a nuclear power plant. A single-reactor plant would cost at least $2.5-billion and a dual-reactor plant could cost more than $5-billion, according to Progress Energy.

[Last modified February 13, 2007, 21:29:00]