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If over and underrecoveries for retail fuel and energy
conservation rates do not cancel during a recovery period, the
FPSC allows for a “true-up” adjustment during the succeeding two
recovery periods. The FERC allows for a true-up rate adjustment
for wholesale fuel costs during the single succeeding recovery
period. Both the FPSC and FERC require that overrecoveries be
returned, and underrecoveries be collected, with interest.
When a customer receives and pays a bill rendered by Florida
Power, the bill shows that the portions relating to fuel and
energy conservation costs are based on estimates, and, when the
estimate is compared to the actual cost of fuel, the customer
knows he will be required either to pay more or he will be
entitled to a setoff on a future electricity bill. However, the
customer does not know the amount of future true-up involved or
whether it will result in an additional payment by the customer
or an amount received from Florida Power. Funds collected from
customers for fuel and energy conservation costs are not
segregated in separate bank accounts nor held in trust by Florida
Power.
At the end of 1986 and 1988, Florida Power had combined
retail and wholesale fuel cost overrecoveries of $11,833,183 and
$31,915,284, respectively. At the end of 1987, Florida Power had
a combined fuel cost underrecovery of $25,236,199. In 1986,
1987, and 1988, Florida Power had energy conservation cost
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