FPL proposes base rate increase to pay for power plant

Juno Beach, Fla., January 17, 2012 — Florida Power & Light Co. notified the Florida Public Service Commission that it expects to ask for an increase estimated at $6.80 monthly, or about 23 cents a day, on the base portion of a typical residential customer bill.

The increase would not take effect until 2013, and FPL expects that, even with the change, its customer bills will still be below the national average.

The adjustment is needed to pay for increases in the cost of doing business and to begin paying for a new, high-efficiency natural gas power plant after it enters service in June 2013.

The plant will use considerably less fuel to generate electricity, which in turn lowers customers' total bills. The company's existing rate agreement, which effectively froze base rates for three years, expires at the end of 2012.

Most FPL customers power their homes for just a few dollars a day. FPL's residential customer monthly usage median is 975 kWh, which means that the majority of FPL customer households consume less than the standard, 1,000-kWh typical bill benchmark, which is currently $94.62.

The company's request is expected to reflect an adjustment to its base annual revenue requirements of about $695 million. This would translate into an increase of about $6.80 a month, or about 23 cents a day, on the base portion of a typical 1,000-kWh residential customer bill. However, because of fuel savings, lower fuel prices and other adjustments, the net increase that a typical customer would pay would be about $3.00 a month, or about 10 cents a day.

Until FPL files its formal request, expected to occur before the end of the first quarter of 2012, all rate, bill and revenue figures are estimates.

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