Stop Runaway Utility Bills
Progress Energy and FPL Seek 30% Rate Increases
Background
Florida's major utilities plan to build four new nuclear power plants in the state. Florida Power
and Light wants two plants at Turkey Point in South Florida, and Progress Energy (and
Tampa Electric) wants two plants in Levy County, north of Crystal River. These projects are
usually funded by investors. However, the utilities cannot find investors for their plants. So, a
Florida law allows the companies to bill consumers in advance. The total cost is projected at
$30 billion or more. Consumers will have to pay even if the plants are not needed
and even if they are
never completed.
Economist Mark Cooper, director of research at the Consumer Federation of America, testifying before the Florida Public Service Commission, said that it is "not prudent" to proceed with plans to build new Progress Energy nuclear reactors in Levy County and a similar Florida Power & Light project near Miami. Cooper estimated it would cost $1.9 trillion to $4.1 trillion more over the life of 100 new nuclear reactors than it would to generate the same electricity through a combination of energy efficiency and renewables.
Buyer Beware!
In the 1980’s, the Washington Public Power Supply System (WPPSS) billed consumers in advance for nuclear power plants. After giving an estimate, the demand for electricity fell, and the cost rose to 10 times what it was. This not only caused the largest bond default in history but also caused only one plant to be completed after years of pre-payment!
Plant Cost Rises
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$5 billion: The initial estimate for the Progress Energy plants.
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$17 billion: The new estimate for the Progress Energy plants.
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$12-24 billion: The broad estimate for FPL’s plants.
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8% rate increase by August: For Progress Energy customers.
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18% rate increase by next year: An increase of $21/month per household.
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This rate increases could be even more as the price of fuel skyrockets and the estimates for the plants climb.
Is it Needed?
Electricity is not in as much demand as it once was, and the big utilities are seeing the slowest growth in a decade, according to the St Pete Times.
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The economy is in a downturn.
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There is less household energy use.
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Laws are stricter on energy efficiency for buildings.
Predicted annual growth rate:
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Progress Energy: 1.8%
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University of Florida: 1.1%-1.6%
Other options
Solar energy is now being used on a utility scale with many benefits:
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No reliance on costly fuel.
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Environmentally cleaner since there’s no left over fuel or harmful emissions.
According to the Florida Solar Energy Center, “Florida receives 85% of the maximum solar resource available in the U.S., making it ideal for using solar energy.” (http://www.fsec.ucf.edu)
Take Action!
Contact Senator Mike Fasano
Senate President Pro Tem
8217 Massachusetts
Avenue
New Port Richey, FL 34653-3111
(727) 848-5885
(727) 841-4453 FAX
Statewide: 1-800-948-5885
email:
fasano.mike.web@flsenate.gov
Ask Senator Fasano to:
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Introduce a bill to stop billing consumers in advance for nukes
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Invest in low-cost, efficient solar energy, not endless money for costly nuclear power plants!
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Have utilities, not consumers, invest in plants that
may not produce power and may never be needed! -
Stop these plants, and don’t stick consumers with a huge bill!
More Information