Florida Power and Light and Progress Energy are charging their customers NOW for reactors that they “might” bring online in the next decade!

What?! That’s right…

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By 2020 Progress Energy will add $50 a month or more to your bill to pay for two new risky nuclear reactors in Levy County before the plant produces any electricity. Even if the reactors are never built, consumers won’t see any return on their investment. Current estimates are over $20 billion and the project has experienced a 5-year delay.

Florida Power & Light (FPL) is charging its customers now for costs associated with building two new reactors at their Turkey Point plant near Miami, FL. Estimated costs have soared past $20 billion and the project is delayed.

What is nuclear cost recovery?

Nuclear cost recovery allows utilities to charge ratepayers in advance for nuclear projects. The legislature’s intent was to make nuclear projects more attractive to utilities. Boy, did that ever work! A new report prepared by Synapse Energy for the Union of Concerned Scientists lists nuclear cost recovery as a primary force behind Progress and FPL’s willingness to pursue nuclear. And why wouldn’t they when all the risks of the project have been shifted from the utility shareholders to you, the ratepayers? In fact, without nuclear cost recovery, it is unlikely that any utility would invest in these financially risky projects. What’s more, Wall Street won’t finance them, so why should you?

How Did This Happen?

The Florida Legislature gave power companies direct access to your wallet with minimal accountability when they passed Senate Bill 888 in 2006 (see page 69 of linked document) and the 2008 Florida Energy Bill. Acting on that direction, the Florida Public Service Commission (PSC) gave approval to the utilities in 2009 and again in 2010 to charge you in advance for hundreds of millions of dollars – in advance of delivering power – for these costly new reactors. In 2011, the legislature would not even consider an amendment that would end this scheme, despite the fact that there is diminished need for power in these tough economic times. The need for these new reactors is questionable at best, yet just this past October the PSC once again approved the utilities requests for millions.

This year, a combined $282 million of our hard earned dollars was granted to Progress Energy and FPL. This brings the total to almost $1 billion for reactors that may not ever be built!

Some legislators are working hard to stop this madness. Senator Mike Fasano (New Port Richey) voted FOR the legislation in 2006 and now actively advocates for consumers by campaigning to repeal it. In 2010, Senator Fasano wrote letters to the legislatures in North Carolina and Iowa when they considered passing similar legislation. For the upcoming 2012 session, he is sponsoring SB 740 to repeal advanced cost recovery for nuclear. Representative Michelle Rehwinkel-Vasilinda (Tallahassee) is also working hard to protect consumers and is sponsoring HB 4031 to repeal this blank check for utilities.