State regulators on Tuesday approved Duke Energy's request to continue charging customers for the costs associated with retiring a nuclear power plant that was irreparably damaged during a botched upgrade.

  • State regulators approve Duke Energy's request to keep charging for retired plant
  • Fee will continue through 2017, though it will drop to an average of $2.73 beginning in March
  • Calls promted to repeal the cost recovery law

In July, Duke's Florida customers began paying an average $2.87 "asset securitization fee" that amounts to a down payment on the estimated $1.3 billion the company estimates it will take to retire its Crystal River nuclear plant. Tuesday's unanimous vote by the Florida Public Service Commission means the fee will continue through 2017, though it will drop to an average of $2.73 beginning in March.

Under Florida's controversial 2006 nuclear cost recovery law, utility companies are able to charge customers for nuclear projects. Such projects had historically been financed by shareholders but, as the cost of new nuclear plants grew, industry executives argued that capital investment was dependent on buy-in from customers.

The law, however, does not require that nuclear projects be completed in order to charge the fees. A series of projects have failed, leaving customers to foot the bill and prompting calls to repeal the cost recovery law.

"Expecting the people to pay for (utility companies) to be able to just exist is what consumers are upset about," said Trimmel Gomes, a public policy advocate who specializes in energy and environmental matters. "Things are going beyond reasonable at this point, so if they want something done they should be able to pay for it themselves."

Nuclear cost recovery repeal could factor prominently on the agenda during the 2017 legislative session, which begins in March. Duke characterizes the fees associated with the closure of its Crystal River plant as reasonable, noting that retirement costs would be $700 million more if not for an innovative financing package that relies on the issuance of 20-year bonds.