Florida PSC approves storm protection-focused plans for utilities

New agreements for major Florida utilities, including Florida Power & Light Company (FPL), Gulf Power Company, Duke Energy Florida, LLC, and Tampa Electric Company (TECO) were approved by the Florida Public Service Commission (PSC) this week, putting storm protection plans front and center.

The efforts consisted of joint agreements between FPL, Gulf, Walmart, Inc. and the Office of Public Counsel; DEF, the Office of Public Counsel, White Springs Agricultural Chemicals, Inc. d/b/a PCS Phosphate, and Walmart; and TECO, the Office of Public Counsel, Florida Industrial Power Users Group and Walmart. Utilities are required under law to file 10-year storm protection plans that lay out initiatives for the strengthening of infrastructure against extreme weather.

“The storm protection plans outlined in the Agreements follow the policy set out by the Legislature to further ‘mitigate restoration costs and limit outage times for customers,’” PSC Chairman Gary Clark said. “The PSC determined the Agreements are in the public interest because the programs continue to strengthen Florida’s grid and improve recovery times from severe weather events.”

According to the PSC, the agreements resolved all outstanding issues in the companies’ dockets. Another investor-owned utility, Florida Public Utilities Company, has yet to file a storm protection plan but was granted an extension of one year due to system damage caused by Hurricane Michael in 2018.

The new rules created a separate cost recovery mechanism for storm protection activities. Storm hardening programs are financed through utilities’ rate base. Other incremental costs could be recovered annually if these utilities seek approval from the PSC.