FPL Group, Inc. & Subsidiaries - Page 7

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          the services provided by FPL to its customers.3  FPL’s charges to           
          its customers for their use of electricity were based upon a                
          tariff.  A tariff is a document that contains the terms,                    
          conditions, rates, and charges that a company may charge and a              
          customer must pay for the service offered by a utility.                     
          According to the tariff, “Service under the tariff is subject to            
          orders of governmental bodies having jurisdiction and to the                
          currently effective ‘General Rules and Regulations for Electric             
          Service’ on file with the Florida Public Service Commission.”               
          From time to time, FPL could, and did, request adjustments to the           
          tariff rates, terms, and conditions.4  FPL’s customers did not              

               3 Michael Wilson, FPL’s vice president of government                   
          relations and a former FPSC commissioner, testified:                        
                    The Public Service Commissioner provided economic                 
               regulation of those utilities which the legislature put                
               in their charge or their jurisdiction which entailed                   
               setting rates for various classes of customers,                        
               determining the investment level that companies had,                   
               quality of service regulation, hearings on a number of                 
               different issues regarding service and rates.                          
               4 Mr. Wilson testified:                                                
               a company which decides that it is not receiving a                     
               reasonable return on its investment or costs have gone                 
               up would apply to the Public Service Commission for a                  
               rate increase.  * * *                                                  
                    Those would be the subject of hearings and                        
               testimony by public counsel, by intervenors, large,                    
               industrial customers * * *                                             
               Claude Villard was a nuclear fuel witness for FPL before the           
          FPSC from 1995 to 1997.  He testified:                                      
                                                             (continued...)           




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