Duke Energy Florida on Monday filed for permission to drop most of a $54 million charge on electric bills that had been paying for a two-reactor project in Levy County that was canceled in August 2013 as construction costs soared.
Florida's Public Service Commission ordered Duke to refund the $54 million last summer. Duke's filing to drop the charges would relieve consumers of $3.45 on their monthly bills starting June 1.
Consumer advocates had long been anxious over the law that allowed Duke to charge for the project before it was built. The purpose of the law was to encourage investment in expensive nuclear facilities. But when costs estimates rose to $25 billion, Duke canceled the project altogether and argued that the law allowed them to charge for projects even if they were canceled.
On Monday, Duke requested that the fee be suspended until its legal argument with Westinghouse Electric is resolved. The utility says Westinghouse owes $54 million for equipment that was never delivered. Westinghouse, in turn, is seeking $512 million it says it is owed because Duke cancelled the build contract.
Consumer advocate Charles Rehwinkel, an attorney who argues on behalf of consumers before the PSC, said the new concern was that Duke would restart a nuclear advance fee after the case is settled that is based on the outcome of the case.
Duke spokesman Sterling Ivey said that consumers could see an impact on their bills depending on how legal dispute with Westinghouse is resolved.
The company's customers also pay about $2 per month for expenses related to the Crystal River nuclear plant that was shuttered in February 2013.
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