FPL joins Duke Energy in reporting higher than expected fuel costs – Orlando Sentinel
Florida Power & Light on Friday became the second utility to notify state regulators that it continues to face higher-than-expected costs for natural gas.
But FPL, in a filing with the state Civil Service Commission, said it would not seek what is called a “mid-term correction”, which could have led to repercussions increased costs to customers in the coming months.
“Because recent domestic conditions and international events have significantly impacted the natural gas market, FPL believes it is not practical to file a mid-term correction request at this time,” the filing reads. “Instead, it is more appropriate to continue to monitor the market to determine if the impact of these conditions will moderate, so that a future fuel forecast can mitigate the projected fuel costs to be recovered for the period. ”
Duke Energy Florida filed a similar case last month. Duke did not request permission to pass on fuel costs further to customers, but it left open the possibility of making such a request later.
Each year, the Public Service Commission sets the amounts that utilities can charge for fuel the following year. But if costs are higher than expected, utilities can request mid-course corrections that allow them to increase the amounts customers pay.
Florida utilities, which rely heavily on natural gas to fuel power plants, have been struggling for months with high gas prices. In December, the Public Service Commission authorized FPL to collect an additional $810 million from customers this year because gas prices exceeded forecasts.
Similarly, the Feb. 1 commission authorized Duke to collect an additional $314 million from customers, with the change taking effect in March. Utilities pass fuel costs on to consumers and are not expected to make a profit.