Florida Power & Light Co. files request for base rate increase

Juno Beach, Fla., March 19, 2012 — Florida Power & Light Co. filed its formal request for a base rate increase with the Florida Public Service Commission. The requested increase would not take effect until Jan. 1, 2013.

The filing was consistent with the company's notice to the PSC in January that an adjustment would be necessary because the company's existing rate agreement, which effectively froze base rates for three years, expires at the end of 2012.

FPL expects that, even with the change, its customer bills will still be the lowest in the state and well below the national average.

The company is requesting a base rate increase of $6.97 a month, or about 23 cents a day, on the base portion of a typical 1,000-kWh residential customer bill offset in part by an estimated $4.49 a month net decrease in other components of a typical bill, including lower fuel usage, lower fuel prices and other adjustments.

As a result, the typical residential customer bill would increase about $2.48 a month, or about 8 cents a day — a 2.6 percent increase.

The adjustment is needed to pay for increases in the cost of doing business and to begin paying for a new natural gas power plant after it enters service in June 2013. The plant will use considerably less fuel to generate electricity, which in turn helps to keep customer bills low over the long term and reduces the impact of the base rate request. 

The majority of FPL residential customers use less than 1,000 kWh of electricity a month, although usage varies from household to household.

FPL's total revenue request is $690.4 million. In addition to investing in new, highly efficient power plants that lower customers' fuel costs, Silagy emphasized that the company is committed to continuing to operate efficiently.

Even while the costs of essential products and services have risen dramatically, FPL is in the best 10 percent of U.S. utilities for operating efficiently, based on low operating and maintenance costs per kilowatt-hour of retail sales.

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