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Respondent has denied Florida Power the right to relief
under section 1341 with respect to the FPSC and FERC 1987 and
1988 returns of excess deferred Federal income tax.
Fuel and Energy Conservation Costs
Both the FPSC and FERC allow Florida Power to charge its
customers for its actual, necessary, and prudently incurred fuel
costs. Florida Power uses enriched uranium, coal, natural gas,
and oil as fuel to generate electricity. The FPSC also allows
Florida Power to charge its customers for reasonable and prudent
energy conservation costs. Florida Power is required by the FPSC
to develop plans for increasing efficiency and decreasing energy
consumption within its service area. Reducing the growth rate of
electricity demand benefits not only the individual customer, who
reduces his demand, but also all other customers on the system,
who realize the immediate benefit of reduced fuel costs and the
long-term benefit of deferring the need for additional generating
capacity.
Fuel costs are recovered from customers through fuel rates
set by the FPSC or FERC, which are stated separately on
customers’ bills. Energy conservation costs are recovered
through rates set by the FPSC only. Florida Power is not
permitted to mark up or otherwise earn a profit on amounts it
charges its customers for fuel or energy conservation costs.
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Last modified: May 25, 2011