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that wholesale customers were entitled to receive from January
through October were not reflected on those months’ bills. To
compensate wholesale customers for credits they did not receive,
checks were issued to each wholesale customer. The wholesale
customers received credits on their November and December bills.
On March 2, 1987, Occidental Chemical Corporation, Florida
Power’s largest retail customer, filed a complaint with the FPSC
alleging that Florida Power’s rates should be reduced further in
1988. Fla. Rule 14.05 was repealed on November 10, 1987, because
the 5-year refund period violated the ARAM method prescribed by
TRA. On January 4, 1988, the FPSC approved a settlement reached
by the parties in which Florida Power agreed to refund
$18,500,000, the remainder of unprotected excess deferred tax
owed to retail customers, and $2,153,000 of protected excess
deferred tax to Florida Power’s retail customers according to
ARAM. The refund was made in the form of 12 monthly credits on
customers’ electric bills during 1988 under the heading “1988
Monthly Rate Reduction”.
In 1988, Florida Power also entered into a settlement
agreement with its wholesale customers to refund excess deferred
income tax. Under the terms of the 1988 settlement, Florida
Power agreed to refund $1,225,000, the remainder of the
unprotected excess deferred tax owed to wholesale customers, and
$155,000 from its protected excess deferred tax according to
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Last modified: May 25, 2011