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Supremes Hear Case Challenging Nuclear Cost Recovery Fees

Utility companies in Florida are allowed to charge customers for power plants that may never be built. 
It’s allowed under a law passed in 2006. A challenge to the law is now before the Florida Supreme Court.

The Southern Alliance for Clean Energy wants the law overturned. Utilities like Florida Power and Light and Progress Energy can charge customers up front for the cost of possibly building nuclear reactors.

Alliance Attorney Gary Davis says the utilities are collecting the money even though they haven’t shown any plans to build nuclear plants.

“We know what a reasonable prudent utility manager would do if faced with a decision of proceeding to build a nuclear power plant with their own money”, Davis said. “We know what they would spend. They would spend nothing.”

Justice Barbara Pariente said that’s exactly why the Legislature passed a law allowing the utilities to charge the fees.

“The Legislature wanted to encourage alternate energy sources, whether we think nuclear power is a good source or not, that’s what the Legislature determined”, said Pariente.

The utilities need approval each year from the Public Service Commission to continue collecting fees for future nuclear projects. The Alliance argues the law gives the Commission too much power to let utilities charge whatever they want.