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21 December 2006 -- The Florida Public Service Commission proposed rules recently to encourage construction of additional nuclear-powered electric generation within the state. The commissioners directed staff to continue discussions with the Office of Public Counsel and other parties to further refine the rule language.
According to the commission, nuclear plants are costly to construct, but they are typically the least expensive type of power plant to operate. The proposed rules would permit investor-owned electric utilities to request partial recovery of the planning and construction costs of a nuclear power plant prior to commercial operation of the plant, as directed by state statute.
The commission hopes the early recovery will reduce risks and encourage financial investment in nuclear power plants by allowing incurred costs to be recovered as they are incurred. Proponents of the rule believe phasing in cost recovery will mitigate the "rate shock" associated with recovering all the capital costs at the time a plant begins operating. The commission chose nuclear power because of its high reliability and independence from foreign fossil fuel supplies, which may lead to greater energy security for Florida.
"The Commission's proposal will protect ratepayers while promoting investment in Florida's energy future," said Chairman Lisa Polak Edgar. "By encouraging the development of a viable alternative energy source, we are further diversifying the state's fuel supply and promoting a balanced mix of fuel sources for years to come."
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