Author Archives: Glenn

Duke Energy, FPL Class Action Lawsuit Claims Unlawful Nuclear Power Charges

14562468553982/23/16 — A law firm filed a class action lawsuit against utilities Duke Energy Florida (NYSE: DUK) and Florida Power & Light (FPL) alleging unlawful charges to fund nuclear power plant construction.

The suit, filed in the U.S. District Court for the Southern District of Florida, alleges Duke and FPL of overcharging customers $2 billion since 2008 through electricity price hikes to fund the costs to build nuclear power plants in the state, though some of the projects have been abandoned. The suit seeks relief for customers of both utilities, including reimbursement from the companies for costs passed on to consumers to fund the projects, a declaration binding on the utilities that the state’s Nuclear Cost Recovery System and all nuclear cost recovery orders issued under it are unconstitutional and void, and an order ordering defendants from further charges.

Read the lawsuit here.

Read the whole article: Power Engineering

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Lawsuit challenges Florida utilities’ $2B nuclear cost fees

nuclearplantgraphicenergyby Curt Anderson
MIAMI (AP) 2/23/16— A federal lawsuit has been filed challenging $2 billion in fees charged by Florida’s two largest electric utilities for nuclear plant projects, some of which were never completed.

The proposed class-action lawsuit filed Monday seeks to stop the fees and recover unspecified damages for about 6.4 million customers of Florida Power & Light and Duke Energy. The fees were imposed on ratepayers under a law passed in 2006 by the Legislature and implemented by the state Public Service Commission.

The suit contends that the law violates the U.S. Constitution’s commerce clause by discriminating against other out-of-state energy producers and that it is pre-empted by federal energy and nuclear laws. It also claims Florida customers are improperly charged for nuclear projects that can be subject to huge cost overruns or that are never built.

Read the whole article: CNBC

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Lawsuit targets Duke Energy Florida, FPL over higher rates for nuclear power projects

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by Robert Trigaux
TAMPA 2/23/16 — A class action lawsuit was filed against Duke Energy Florida and Florida Power & Light alleging the monopoly electricity providers force millions of Florida customers to pay unlawful charges in connection with their electricity rates to fund the companies’ nuclear power plant projects, some of which have been abandoned.

The suit was brought Monday by the law firm Hagens Berman in the U.S. District Court for the Southern District of Florida. It accuses Duke Energy Florida and FPL of overcharging through unconstitutional price hikes that increase customers’ electricity bills in order to fund nuclear construction costs.

The issue ranks among the most controversial in recent Florida history, forcing customers of monopoly utilities to take on the financial risk of building nuclear power plants, projects prone to extreme cost overruns. Such utility projects historically have been financed by banks and Wall Street, with the risks borne by Duke and FPL shareholders, not by ratepayers.

Read the whole article: Tampa Bay Times

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Florida Consumers Sue Duke Energy Florida and Florida Power and Light Alleging Unlawful Charges

Lmoneyreactors-300x300awsuit states millions of Florida consumers have been wrongfully overcharged
MIAMI 2/22/16—Today two Florida utility companies – Duke Energy Florida and Florida Power and Light (FP&L) – were hit with a class-action lawsuit from Florida ratepayers alleging that the energy suppliers force millions of Florida customers to pay unlawful charges in connection with their electricity rates to fund the companies’ nuclear power plant projects, some of which have been abandoned, according to consumer-rights law firm Hagens Berman.

The suit filed Feb. 22, 2016 in the U.S. District Court for the Southern District of Florida accuses Duke Energy and FP&L of overcharging through unconstitutional price hikes that increase customers’ electricity bills to fund nuclear construction costs, and according to public information, the two utilities have been authorized to collect hundreds of millions in nuclear project costs through rate hikes.

Read the whole article: Business Wire

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HB 931 seeks end to ratepayer subsidy of nuclear construction in Georgia

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by Gloria Tatum
(APN) ATLANTA 2/17/16 — A pro-consumer bill, HB 931, co-sponsored by State Rep. Karla Drenner (D-Avondale), calls for an end to the Nuclear Construction Cost Recovery (NCCR) surcharge on Georgia Power electric bills after March 2017.

NCCR is a statewide surcharge that all Georgia Power residential and small business electricity customers pay every month.

It is about eight percent of one’s total bill with additional periodic rate increases.

Georgia Power’s two new nuclear reactors, Vogtle 3 and 4, originally were scheduled for completion in 2017, and at that time the surcharge was to expire.

However, Georgia Power is over three years behind schedule, and almost three billion dollars over-budget, with only 26 percent of the construction complete.

Read the whole article: Atlanta Progressive News

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Renewables rise in Georgia Power plan

Southern-AGL.JPEG-0b4bdby Russell Grantham
ATLANTA 2/13/16 — Renewable fuels are poised to grow from a footnote into a small but meaningful part of the picture at Georgia’s biggest electric utility.

By 2020 solar, wind, biomass and hydro will account for 10 percent of Georgia Power’s fuel mix, according to a new long-term plan the company recently filed with state regulators. That’s up from about 7 percent this year, or just 2 percent not counting hydro. In 2005, non-hydro renewables were not even counted in the mix.

Critics say the pace is still too slow. And at least one questions the utility’s overall goal of boosting its capacity buffer — the extra juice it could generate during a severe heat wave or power outages — at a time when demand has been flattened by slower economic growth and better efficiency.

Read the whole article: Atlanta Journal-Constitution

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Bill calls for halt on Plant Vogtle charge

GranthamRussellby Russell Grantham
ATLANTA 2/9/16 — A trio of Georgia lawmakers want to block Georgia Power from levying surcharges on customers’ bills to finance its long-delayed Plant Vogtle nuclear expansion after 2017.

“Today’s Georgia Power customers stand to pay $1.4 billion more to finance Vogtle construction over the next few years due to major construction delays,” said Rep. Karla Drenner, D-Avondale Estates, sponsor of a bill filed Monday.

In 2009, lawmakers allowed the utility to begin tacking a surcharge on customers’ bills to finance its share of the cost to build two additional nuclear power units at Plant Vogtle near Augusta. The monthly surcharges add about $81 to the typical residential customer’s annual utility bill.

Read the whole article: Atlanta Journal-Constitution

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Are our Georgia Power bills set to be nuked?

022215-nuke-price-bs8by Matt Kempner
ATLANTA 2/8/16 — Warm up your checkbook and get your debit and credit cards ready. Reckoning day is coming on the most gigantic construction project in Georgia and, in particular, on its blown budget.

This spring the expansion of the Vogtle nuclear power plant near Augusta was supposed to be finished, with the first of two new reactors cranking out electricity for businesses and homes all over Georgia.

Not going to happen.

Read the whole article: Atlanta Journal-Constitution

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PSC votes to begin review of Plant Vogtle costs

15093461by Walter C. Jones
ATLANTA 2/3/16 — Electricity customers and the public will get a detailed look at what’s to blame for cost overruns in the construction of two nuclear reactors slated for power generation after a divided Public Service Commission voted Tuesday to begin its examination.

Also, one commissioner called on the legislature to make Georgia Power stop billing customers for the reactors because construction is about to exceed the original completion date.

The detailed probe of what Georgia Power has spent is expected to take 14 months to examine the delays that have added nearly $1 billion to the Plant Vogtle expansion.

Read the whole article: Savannah Morning News

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Georgia Power seeks approval of higher costs at Plant Vogtle

15066713by Walter C. Jones
ATLANTA 1/23/16 — Georgia Power Company wants regulators to bless its share in more than $900 million in cost overruns incurred so far in building two nuclear reactors at the Plant Vogtle generating facility near Augusta.

The company denies its request amounts to approval of the overruns. At least one regulator said his agency can ignore the request until the reactors are generating electricity. And he estimates the impact of the request to be as high as $2.5 billion in added costs to electricity customers.
Company lawyers filed a formal request Thursday seeking approval by the Public Service Commission of the utility’s contract with the new builders.

Georgia Power, which owns 45.7 percent of Vogtle, and the utilities that own the rest of the plant signed an agreement with Westinghouse and with Chicago Bridge & Iron’s Stone & Webster division to design and build two reactors for $6.8 billion. Various problems led to delays and cost overruns, prompting the owners and the builders to sue each in other in 2013 over who would pay the added costs.

Read the whole article: Augusta Chronicle

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