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period in order to create level pricing. Any remaining
overrecoveries existing at the end of the recovery period,
because of inaccuracies in estimating its projected costs, are
returned to customers pursuant to the true-up adjustment required
by the FPSC and FERC. Florida Power cannot change or alter the
time or method of refunding the overrecoveries. Because the time
and method of refunding overrecoveries is controlled by the FPSC
and FERC rather than by Florida Power, Florida Power does not
have complete dominion over the overrecoveries and is not
required to recognize them as income when received.
Respondent argues that Indianapolis Power & Light Co. does
not apply to this case because the Supreme Court was addressing
only the question of whether certain payments by customers were
advanced payments for services or were deposits. Respondent
maintains that, in this case, the overrecoveries were paid to
Florida Power as part of the compensation it receives for
providing electricity service rather than in the form of a
deposit, and, therefore, the test for income announced in
Indianapolis Power & Light Co. was not intended by the Supreme
Court to apply to overrecoveries.
We reject respondent’s argument that the holding in
Indianapolis Power & Light Co. should be construed so narrowly.
Respondent is essentially making the same arguments in this case
regarding overrecoveries that were rejected by the Supreme Court
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