FPL seeks fuel-cost increase

By MELISSA BURNSED

Already feeling the squeeze in their family budgets from gas prices that have reached four dollars a gallon, customers of electric utility supplier Florida Power & Light Co. (FPL), will see increases in their costs for keeping cool this summer. The increase could come if state regulators grant FPL’s application to raise electric bills by an average of 16 percent to cover rising fuel costs.

Florida Power and Light serves 4.5 million customers, including thousands in the tri-county area. FPL is the second Florida power company to seek a rate increase, following last weeks request from Progressive Energy for a nine dollar hike.

The states largest electrical provider company cited rising prices for natural gas and fuel oil, which power the majority of its electric generation, as the catalyst for the application. FPL said its’ cost projections are for $746 million needed to cover the extra costs for fuel. It wants to increase a pass-through fuel charge by $16.28 per month on every 1,000 kilowatts used by residential customers.

They have already implemented other cost saving measures, including procedures to increase power plant efficiency. To ensure adequate supply at a reasonable rate for future customers needs, FPL is also seeking state and federal approval for two new nuclear power plants by 2020.

FPL has asked the state Public Service Commission to vote on the adjustment at its July 1 meeting. If approved, the fuel adjustment would be reflected in customer bills from August through December 2008.