Fortnightly Magazine - August 1997

California Chooses Transition Charge for Recovery

The California Public Utilities Commission has established guidelines for the recovery of stranded costs over four years through a competition transition charge collected from existing and future customers, including those who depart the system.

The June 11 order allows recovery from 1998 through 2002 for costs associated with generation plants, nuclear settlements and QF contracts (Docket No. R.94-04-031/I.94-04-032). Costs associated with purchased power contracts, including QF contracts in place on Dec. 21, 1995, can be collected for the duration of the contract.

Florida Utility Expands Green Pricing Program

The Florida Public Service Commission has authorized Florida Power and Light Co. to set up a two-year green pricing research and development project under a settlement agreement between the utility and the state Legal Environmental Assistance Foundation.

The order allows FP&L to recover from all ratepayers up to $475,000 in administrative costs associated with the experiment. The commission had approved the program as proposed by the utility in an earlier ruling, but reviewed the matter further because of a complaint by LEAF.

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