Court backs regulators on power project
TALLAHASSEE — Rejecting arguments by the Sierra Club, the state Supreme Court on Thursday unanimously backed a 2016 decision by utility regulators to approve a rate agreement for Florida Power & Light.
The Sierra Club challenged part of the wide-ranging agreement that dealt with replacing what are known as “peakers” — generating units that are used at times of high customer demand and during emergencies such as storms. In the rate agreement, FPL sought to recoup costs of replacing decades-old peakers with larger, more-ef- ficient units.
In October 2016, FPL and three other parties, includ- ing the state Office of Public Counsel, which represents customers, reached a settle- ment agreement on major rate issues, including the peaker project. The Florida Public Service Commission, which regulates utility rates and proj- ects, approved the agreement.
But the Sierra Club, which opposed the settlement, chal- lenged the commission’s deci- sion at the Supreme Court. The Sierra Club argued, in part, that FPL had not been required to consider alternatives, such as solar energy.
In a 27-page main opin- ion Thursday, however, Justice R. Fred Lewis supported the commission’s approach despite the fact that the com- of considering the peaker mission found the settlement issue amid the broader agree- agreement to be in the pub- ment, which involved dozens lic interest — a finding which of issues including establish- we afford great deference.” ing base electric rates. Base-rate cases at the Pub- “Although the peaker proj- lic Service Commission are ect was a substantial issue, the highly complicated and take fact remains that it was only months to resolve. In recent one of the 167 issues that the years, utilities have commonly commission was required to reached settlement agree- consider as part of this mul- ments, which can prevent tibillion-dollar settlement the need for full-blown rate agreement,” Lewis wrote. hearings. “A requirement for the com- Lewis wrote that the total mission to address the peaker cost of the peaker project was project individually would $725.6 million. But he also said correspondingly demand that FPL projected long-term cus- the commission also address tomer savings of $203 mil- the remaining 166 issues in lion because the new units the same manner. This com- would operate more effi- mand would convert a short ciently and have lower emis- order into a boundless tome, sions than the old peakers.