bllt c k.fll ld ~uil c hlttl .. . v ia overnig ht ma l › library › filings › 1997 ›...

13
' . r. I Bllt C K.fll lD R tr TS PC VIA OVERNIGHT MAIL April I 0. 1997 Olnnco S. Bayo. Director !'Iondo Public Sen-icc Commission Di' tsion of Records & Recording 2540 Shumard Oak Blvd. - Room 11 0 Tallahassee. FL 32399 # Docket No. 97o4 0- EI Rc: Proposal to Extend Pl nn for th e Recording of Ccno in Exs;cnses for t he Ycars 1 998 nnd 1 999 for Flori da Power & Light Company Dcur Ms. Bayo: Enclosed please find for filing with the Public Service Commission the nnd liflcc:n copies of the Petition of 1\meriSted Corporation for Lc:a\'c to Intervene and ObJection to Proposed Agc:nc:y Action I' note that the Proposed Action is set for the agenda conference ••• be held on Monday. April14, 1997. 'lllnnk you for your ossisLMcc tn filing the obove. Should you hove: ;my quc:.tiom. please: do not hesitate to conlJICt the undersigned. ( Enclosures 5 ce Set" ice List ' OOCUI"i II ' 'It' il ,_IT( U-aaO 7 APR II :;; .. . . .. ,., , ... .. . t •• - . . - .. . - .

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Page 1: Bllt C K.fll lD ~Uil C HlTTl .. . V IA OVERNIG HT MA L › library › filings › 1997 › 03707... · Dod.et No. 97041 0-El PETITION OF AMERI!J TEL C ORPORATION FOR LEAVE TO INTERVENE

' .

r.

I

• Bllt C K.fll lD

~Uil C HlTTl

R tr T S PC

VIA OVERNIGHT MAIL

April I 0. 1997

Olnnco S. Bayo. Director !'Iondo Public Sen-icc Commission Di' tsion of Records & Recording 2540 Shumard Oak Blvd. - Room 110 Tallahassee. FL 32399

#

Docket No. 97o40-EI Rc:

Proposal to Extend Plnn for the Recording of Ccnoin Exs;cnses for the

Y cars 1998 nnd 1999 for Florida Power & Light Company

Dcur Ms. Bayo:

Enclosed please find for filing with the Public Service Commission the l•n~:mul

nnd liflcc:n copies of the Petition of 1\meriSted Corporation for Lc:a\'c to Intervene and

ObJection to Proposed Agc:nc:y Action

I' I~ note that the Proposed Aj~ency Action is set for the agenda conference ••• be held on Monday. April14, 1997.

' lllnnk you for your ossisLMcc tn filing the obove. Should you hove: ;my

quc:.tiom. please: do not hesitate to conlJICt the undersigned.

( Enclosures 5 ce Set" ice List

' OOCUI"i II ' 'It' il ,_IT(

U-aaO 7 APR II :;; .. . . .. ,., , ... .. . t • • •• • - .

. -.. . -.

Page 2: Bllt C K.fll lD ~Uil C HlTTl .. . V IA OVERNIG HT MA L › library › filings › 1997 › 03707... · Dod.et No. 97041 0-El PETITION OF AMERI!J TEL C ORPORATION FOR LEAVE TO INTERVENE

'

.. • • STATE OF FLORIDA

P UBLIC SERVICE COMMIS.(\ION

Proposal to Extend Plan for the Recording of Certain Expenses for

The Y eass 1998 and 1999 for Florida

Power & Light Company

)

} ) )

Dod.et No. 97041 0-El

PETITION OF AMERI!J TEL CORPORATION

FOR LEAVE TO INTERVENE ANl> OBJECTION TO

PROPOSED AGENCY ACTION

AmeriSteel Corporation (" AmeriSteel') hereby moves for leave: to intervene: tn

the obovc:-captioned docket. AmeriSteel objects to the c:ntry of 11 l'r(lpu~d A gene)

Action ("PAA") by the Florido Public Service Commission ("Commission") nnd rcquc)b

th:!t hearings be held concerning the pending Commission StAff propos:~! before the

Commission to approve an extension, with modilicotions. of the progra.m authoriting

Florid4 Power & Light Company (wFPL ") to record additional expenses for the yctl.f)

1998 and 1999. ln support of this motion, Amen Steel states 1\S follow~

I. ·n1e nnme and address of petitioner is as follows.

AmeriSt.eel Corporation 5100 West Lemon Street Suite312 Tampa. Florido 33609

Documents relating 10 Ibis proceeding moy be served on Amen Steel by ...:rvtng

them on the following individuals.

Richard J. Salem Flond4 Bar No I 52524 Marian B. Rush Florid4 Bar No. 313583 Salem, Saxon & Nielsen. P.A. 101 East Kennedy Boulevrud P.O. Box 3399 Tampa. Florido 33601 l'booe: (81 3) 224-9000 Fa.x: (8 13) 221-8811

Peter J.P llncklidd James \\ Brew Bricklield. bureheue l.: R11ts. I'(. I 025 Thomas JeflTc:rson St.. N W Eighth Floor-West Tower Wa.shington. DC 20007

•' • . -E

0 3 7 0 "/ APR II ln r P~C·Rl.u~O~/Ht~ORTihG

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• • I. BACJ(GROUND

A. FPL'a 1995 "Stranded l nvutmcnt" Propoaal.

2. On Mnrch 31, 1995, FPL petitioned the Commission in Docket No. 950359-EI for

authorization to occclcnue the o.monization of its nuclear po'•rered generation umts (the

''Stranded Investment Doclcct"). FPL sought n permanent SJO additio1111l wnonmuron.

and. for the yCllJ'S 1995 and 1996. an odditiorlilll o.monization equal lo, a) I 00% of 1'1'1 . · ~

bose rotc revenues produced by retail soles between fPL 's '' low bond" und "most likely"

..ales forecasts for those yC8l'S, and. b) SO"Io of base rotc re'·enues from retail :.ale~ nbmc

the "most likely" forecast.' FPL asserted in its petition rn thnt docl:et that chan~o~c' in the

electric utility indll3try structure were creating grenter potential for "strondcd rnvcstmcnt"

ns it becomes ill('n:asingly more deregulated and possible for altCITUitivc suppltcrs to

'crvc electric utility customers.1

3. Henrings "'ere scheduled in the Stranded Investment Docket. but FPI. reached .1

settlement with the CommLssion St.a1T before any testimon) wns heard ' The

Commission approved the proposed senlemc.nt in Order No. PSC-96·0461-FOF -EI ( dat.:d

l\pril2. 1996). The approval order directed FPL to

• apply S 126 million in nddittorwl 1995 dcprc:ciotinn cxpcno,e to the reserve deficienC) in nuclear productton.

'Pot~tt No. 950JS9-FI.I'riiii1J11 ro l~tabii.Jh till Allltlfi/IIIIIun .'iciN'Ju/r {111 f'/"''''" /IIMt'r rt I t):hl

( 'Oiflpmry ·, folwd~aT Grnuati"SS Unta to Addr~n rlw 1'111'"'"'' /<" Suun.W '""'"" ' "'

1 March 3 I, 1995 Pedtlon at p.l . Fl'L did not tu&&es• In its prtouoolhatllly or Itt four nuclea< ~ntts nught

be retired for C!COfiOtnlc: reuonJ before IlK uptnation of thrir opcntln& llc:en>ca, l>ut mamwncd that ~lcnlcd recovety oflhc c.plw c-. oflbnc unlt.a ,...., n«dcd

• AmeriStccllntcrvcncd as. pAn)' In the Stnndcd ln•otmenl Dodcl Tho: ComttiiUIOO fuund Jlmcn~tccl

had Jt&ndma 10 pat1lc~ u a pAny over FPL'• objeciiOfll Orda No PSC -95·10H·P<. 0·1 I Amcn~occl

wbscq1lently withdrew u a pAI1y from the procr:cdona and dad noc partKop.tc on IlK Kttl<mrnl reached

between FPL and the Comm wion Sc.ttr.

2

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• • • record nn additional S30 million annually an nuclear

o.mortilllllon:

• reeord additional expenses in the years 1996 nnd 1997

based on growth in base: mte revenues as FPL proposed but

charged to various nuciC41' nnd non-nuclear accounts in

accordnnce with the FPLJSt!l!T settlement recommendation.

l'ursuantto this Order. ,L booked approxinuuely $160 mi'ltun in add11ional char~_te> .1nd

umortizauon in 1996 in addition to the charges Ulken in 1995.

B. Tb~ FPUSlJiff Proposed ExttnJion OfTbt wAdded EllptnJt Plan".

4 . AI :.<nne time earlier this )'<:41', the Commission Sl4ff. FI'L nnd the Office of the

Public Counsel met to disc\155 o "continuation of the: l'lnn" CIJ)proved in the ~trunded

mvc:stmc:nt doc:kc:t. Represenllltivc:s of AmeriSteel were odviscd of the informlll

discussions to extend the Plnn through the years 1998 nnd 1999. nnd AmcnStecl

rcLJut:Stcd a meeting with the Commission Slllff on this matter. The S14ff go~e pubhc

notice ofthi• meeting. which " J.S held on March 19. 1997. and attended by

rcpn.':>CnlatJvc:s of AmcnStcel. FPL nnd the Commission St11ff. At the mc:c:llng. Staff

hricfc:d AmeriStc:c:l on the plnn to extend the progrnm for two more ye=>. the FPI.

a~-counts in' ohC<I and Sl4ff's outlook. AmeriStccl d1d not Nl\e un opportunll) to

p.u1iciputc 111 any sense in the negotiations between Staff and FPL AmcriStecl. howcvc1.

made ilS obJeCtions to this accounting scheme clear to Stafr.

5 On April 2. 1997, after completing its discussions with FPL. Stllff tiled o

rl'Commendation that the Commission \Ole at iu April 14. 1997 ogendll conference to

c~1cnd t.he Plan through the yewrs 1998 and 1999. This docket was millated b> the Stllfl.

1· 1'1. did not !lieu pctitton or other wnuen request to extend th15 spccillloccounung

)

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• • treaunent. The rec:Qmmeodlltion proposes 10 con1inue usina 1he 1996 00...: revenue

forecastS submined in Docket No 950359-l:l . l b inglhose forc:cll!>l> nnd Fl' l."' pruJeclcd

WUlual sales growth raLc: of2.4'Ye. FPL will be oulhoriz.ed by this l'lon1o lake mer S200

million per year in lidded charges in 1998 W1U l<m Q, erlhe pem\d 111'15·1'>9<1. I"PL

\villlllkc more than S900 million in ""added" expenses to offset rc\ cnuc ttrowlh.

II. AmeriStHI Hu A SubJtantl•l lnterest Tb8t Will De Directly AfT«tcd

By Tbe Outcome Of The Cornmlulon'• Dettrmln•tlon In Thlt

ProeeedlJJg

6. AmeriSteel operateS o s1cc:l recycling ond mWlufacturi'lg fnctl•l~ that " lo<'aled tn

Joc.ksonville, Florida. The Jacksonville plant uses Wl clectnc on: funutcc to melt .crop

steel and casts the rc:sulting molten 5tecl tniO long strunds (billet•) tn n conltnunu• ca.,ung

process. The plant produces rc:bur and rods thnt urc used in o vllric:ty of htglmn). hutldtng

construclion and olher upplicotions. AmcriStcc:l sells 1hcsc produc1' tn lug hi\

competi tive commodity markets.

7 FPL provides electric: sen•icc: to 1hc Jod.sonvillc mill. ond 1hc ws1 nl c:lcclnctl~ ''

n major foc1or in lhe operating economics o flhc: steel mill. 'The r.Jte~ clu1rgcd O)' FI'L to

AmeriStccl are very higl, compared 10 c:lc:ctnctly rntc' charged by u1ill1•cs 111

AmeriSteel's steel mills in Tc:llllC$SCC ond Nonh l'arohllll as well a. the role~ patd b'

mWly of its competitors In o nutshell. Amc:nStccl ret~uirc:s compettlt\cl) pn~cd

clcctricily from I· PL in order for the Jac~sotiVill~ nulltu b~ able! hi Cllni i1Ctc "tlh

Ameri'iteel's reaiou.l, nntional and intemntinnol nvol'

8. As o result or 1he rate of return on etjUtl) c.up c>toblishc<.l lnr I I' I b~ the

Commission, FPL customers have a profit sh.nnng rc:lauonshtp ..... th I I' I the: charges

collec1cd by FPL from its rc:tail cus1omc:rs CIIJl be reduced lhrough Curnn"'""n nrtlcrc<.l

Page 6: Bllt C K.fll lD ~Uil C HlTTl .. . V IA OVERNIG HT MA L › library › filings › 1997 › 03707... · Dod.et No. 97041 0-El PETITION OF AMERI!J TEL C ORPORATION FOR LEAVE TO INTERVENE

• • refunds ifFPL's profits exceed the range the Commission lw specified. FPL'> return ur1

equity target is 12o/o. with a 100 basis pointl>nnd. W1d FPL's CU5tnmc:r> hove a vc"cJ

interest in FPL profits abcwc the dcsigruucd mngc As FPI. 's Jarg~t cu~tomer.

AmeriSteel has a significant interest in cnsunnl! that FPL does not talo.c unnccc!>Slll) ur

unwurrwucd charges that would ~rve to prc1cnt FPL from reachinl! the earnings sharing

threshold and providing refunds to cxistinl! customers The FPJJ Stull propm.alw c\lcnJ

the ''AJdcd Expense PIM" de~ bed m this dod.et creates o huge amount of addition.1l

charges to offset revenue nnd c:arnings growth in the yenrs 1998 w1d I '199. But tor those

ct.orges, cll5tomcrs, including AmeriSteel. should expect refunds os FPL exceed~ the

profit sharing thn:shol:l.

IU. Elllfnt loo Of "Thc Added [llptnae Plan" ThrouJth The Ynr 2000 ll Nolin Thf t>ubh. lntcrnt

9. In 1995. FPL at least lll'l!ued that the cxtr110rdUUIJ') process of ~•l!ni fienntl)' :ltldmg

to FPL · s expenses outside 11 base rate case w'tl$ JUStified by its forebochnl!) of potcntml

stranded investment. The company. however. expn:s~ ly confined ill! request fnr

addiuonal amortization to two years (1995 Md 1996). In this dod.c:t. FPL did not

formally renew its request fen additional arnorti7.ation. nnd no JUSIIficnuon of an) l.m.!

ha.~ been offered for allowinl! FI'L to take S200 milliun or more per yeur 111 .. uddcJ .. "'

special charges to offset FPL 's revenue growth.

10. Stntrs recommendation to mod1l) ond extend the Pl1111 d<-C\ not C:\Cn attcmpttu

explain why StnfT believes 1111 extension of lhis cxtrnordinary pmcc:ll$ is in the puhll<

interest. l"'he Stoff proposal isj~earcd primarily townrd Increased lundiOl( to correc t

thcon:tical reserve dcfic•cne•es, but, if that is the mtc:nt. Stnff must Jll5tlf) the: creation nl

Page 7: Bllt C K.fll lD ~Uil C HlTTl .. . V IA OVERNIG HT MA L › library › filings › 1997 › 03707... · Dod.et No. 97041 0-El PETITION OF AMERI!J TEL C ORPORATION FOR LEAVE TO INTERVENE

• • expenses 10 offset signifiCMt FPI. revenue inc.rcnsc~ outside the Clmtcxt uf u gcncml mtc

CAS<:. Further. Staff's demand in its recommendations for comprchcnst\C nuclear

d«:ommissioning and fossil diSITUilltlemcnt studies demonstrotc~ that the fnctu.al

foundation for the claimed reserve deficiencies is locking. Final!~ . Swtr'

recommendAtion that any "cxtru" expense dollars from this Plan ~huu ld be as~ibJtcd tu nn

unspecified depreciation account has no hasis whatsocvc:T.

II. As noted below. the extension of this progrom proposed b) StaiT diiTcr.; from the

original plan approved by the Commission in severo! significant rc~pccts that create

subsllllltial benefits for FPL investors at the c~pcnse of the compan) ·~ cxtstins Clll>tomc~

A. StaffProww To Emp!Q) Stale. Understated Rcvcnw Fo~g.m

12. Stn[ proposes to tic the level of uddiuonol ch11tgcs in 1991! wH.I I QQQ to FPI. · ~

1996 base rote revenue sales forecast. The: Company's actual 1996 base: rotc revenue~.

however. exccded the 1996 Nmost like!) .. forc:co.st b) S4J.9 million.' and FI'L. proJL-<:U

steady sales growth through the year 2000. Because FI'L takes 100% of the $83 mil !tun

difTerc:ncc betYteen the "low" and "most lil..c:ly" I Wl> forecasts. nmlthc ~om pan)' ~hould

conunuc to exceed the 1996 ··most likely" revenue fon:casb in subsequent ) can. u~tng

the outdated forecast will allow FPL to retarn $200 million or more per >car m I Q<JK un,l

1999 At u minimum, hearings are required on the revenue lllrgets that ~hould he

cmplojcd for 1998 and 1999 if the Pllln is cucndc:d tn tho~ )cars

• n•t.'• "mot~ hkcly" t996 for<c:&Sled rnenua "'en U.224.t00.000. FPt rq>OIUd ocruAI b,uc, nat<

n: •en""' orSJ.261.000.000

b

Page 8: Bllt C K.fll lD ~Uil C HlTTl .. . V IA OVERNIG HT MA L › library › filings › 1997 › 03707... · Dod.et No. 97041 0-El PETITION OF AMERI!J TEL C ORPORATION FOR LEAVE TO INTERVENE

• • B. The Swoc: OfThe "Added E~ocnse Pion .. Progrnm h !·xcc~>'",; ·

13. According to FPL's estimates in the strnndtd invesunent docket. additional

expenses charged under the Plan in 1995 1111d 1996 would be less tluan $20() m:ll111n 111

total . The cowpony, however,actl!3lly boolcd 5Jgmficnntl) more ch,ugc~ 111thosc ~can

(nearly $270 million). JfS1afrs recommcnilil!on is nppro,ed. !·Pl. '"II end up cllar'gmg

over $900 million in "added expenses" through the yct.r 2000. St .. n·' re~ummcndnuon

thus expands this prowum of special chu.rges well be: yond the .cupc 11f FPI. '~ rcque>t in

the StrMdcd Investment Docket. Chnryes of this magnitude reqUJrc a gcnerol rc\' lt"- of

FPL's rates and revenue requirement.

C. FPL And Staff Have Not Jusufied Cbargjng Addujonul bos;rL<c> Ttt

Other fPL's Accounts.

14. FPL Md Sill IT propose to tu.rgc:t ndditioMI charges for nuclear dcct•mmi, 'fin in~:

and fossil dismAntlement when the information necessary to addrc'» the menu. .. r till>

proposal on LICSC maucrs will not be: filed for Sllln· re\ 1cw untillutr 199K ut the .-arlic>l.

In 1995. FPL incn:a.<td its annual funding of the decommiss1on1u;; r.:>en< .. um S38

million to $85 million. FPL is required to produce 1m updated dcconunissiuning >tud} 111

late 1998. Hearings o.rc: needed 10 address whether any increased fundmg ol

decommissionina is warranted before: o fuiiMd pub he assessment of thut 19911 >tud~ 1s

performed.

15. Similu.rly. S!afrs recommendation demands u comprehcmuvc: ~tud) nf lo""''

dismantlement costs by October 1998. but StaiTnonetheless contemplate~ uddllwnal

charges to thao reserve. Slaff' s demand for th•~ ~tud~ dcmonstmtcs that 1t lud,, a

7

Page 9: Bllt C K.fll lD ~Uil C HlTTl .. . V IA OVERNIG HT MA L › library › filings › 1997 › 03707... · Dod.et No. 97041 0-El PETITION OF AMERI!J TEL C ORPORATION FOR LEAVE TO INTERVENE

• • reasonable basis for agreeing to nny addututwl funding of this reserve at th1~ tim~· '

These arc issues properly addressed in 11 general rate: case. nnd hcartng~ .. tr• nccdcd to tc' t

the company's o.ssumptions and proposed fundmg o f the reserves nncc thc dc:lllikd

studies are submitted.

D. The S!A[R~9mmeo®tjon Fuils l'o Address The: l;[ect Oflbc Proooscd

Pl110 Extension On FPL CuSJomm

16. If the: "Added Expense Plan" were not extended, the deprc~sing ctfcc t of these

added charges on FPL 's reponed earnings wo uld be lifted. thereby rn i ~ing the prospect of

refunds to customers of excess FPL profits As noted above, the cxt>tang ha.-.c rotc plan

ordered by the Commission provides for amowtts collected by FPI. from Its customcn. to

be reduced through profit sharing with tho:.c: customers once the upper bound uf the

estAblished rnnge return on equity is exc:cOOcd. I f. without these added char~cs. Fl'l. ·'

customers woU:d be eligible for substnntial refunds. back filling cxpcn..c~ w avotd

reaching the profit sharing-based threshold effecuvcly constitutes n chnngc an mt~

Florida Sllltutes §§ 366.06 and 366.07 require: that changes in rates or th~· antuwus

co llected by electric utilities can only be changed a Her a public hearinj,l. 'I he FPL!Stutr

proposal does not address the effect of its rc:commendatu.>n on potential pmlit shanng

refunds to customers. Thus. the =mmendcd Plan extcru.ion oppcan; to ' tolatc the:

statutvry hearing requirement.

' MOROvcr, accordUIJIO Its Tm YeN So"' Pwu. ~PI- cwrnlllt ~not IICIIIAII) plan to d11man11< Ill) ul

ots exuttng g~nuaiUIJ units

Page 10: Bllt C K.fll lD ~Uil C HlTTl .. . V IA OVERNIG HT MA L › library › filings › 1997 › 03707... · Dod.et No. 97041 0-El PETITION OF AMERI!J TEL C ORPORATION FOR LEAVE TO INTERVENE

• • E. There Is No Demonstmtcd Ns;sst To E11trnd "The Added Expc05c Plun."

17. FPL 's stranded investment pe:ition sought Commission approval for

extnlOrdinary accounting treatment for its nuclear plnnt. FPL confined it~ requests rn 11:.

origillAI petition to two years for 3dditional umoni7Ations nbove the $ .10 million for

nuciC.Gt plnnt.' The company IUlS not lbmwlly n:quc-sted 40 c:xtcOStlln, uml I!CtYid event~

during 1995 o.od 1996 show !h.1l there is no bnsis for contrnwng tim Plan FPL ·' uctu.tl

base: rule revenues significantly exccc:ded FPL's "most likely" forecasts for those I\W

yclll'S, and FPL continues to foreell!t strong growth in sales, =ing~ . .:a:.h Otm. und

customer accounts- except for industrinl t~ecounts. which conunuc tu decline

18 Since the Commission issued its approval Order in Docket No 950359-1:1. the

Commission has approved flexible pricing pm~:rwns to allow utilities and municiputittc'

greater pricing discretion to Dddtess the needs of customers considered to be "at ris~ ",

i.e .. likely to dose down or pUTSue competitive altcriUIII\'c:!.' FPL ha: rndrcatcd that 11

does not consider competitive pricing progmms to be necessary for the cwtonu:rs it

serves, thus confmning industry llnlllysts' views that H1L face~ hnlc competi tl\ c ml

19. In fact, FPL's robust finoncrnl outlook confirms the tnduslt}-"rdc pcreeptton thnt

FPL holds o strong competitive position. Under the: cum:nt "Added E'pcnsc l'lun," I I'!

has mainlDmcd reponed earnings within the runge :.ct hy the Commi~sion 0)' cnntt nurng

to usc the st.Die Wid significantly understated I 996 rc,cnu.: forte&ts, 1-1'! 1\UuhJ 1\c:

nllowc:d to generate huge non-cash expenses to ensure tlwt 11 will not c•pcncncc repnncd

•p<1itioo In Doc:k<1 No. 950l59Q.I;I, pp. 10-11

• '" n P*'tU/()IfjUI' Atllltorlty to llffplclltOII Propwol c,.,,,...UJlifndl.strwl !wn k.'~ llo.kr ""

Ptlocl£zl'*"llfforlal /JaJu bv 011/j Pt1>4-rr c-pany. Order No I'SC ·96-12t9···oF-U. ouucd !>cplcno~r 24.

t996

9

Page 11: Bllt C K.fll lD ~Uil C HlTTl .. . V IA OVERNIG HT MA L › library › filings › 1997 › 03707... · Dod.et No. 97041 0-El PETITION OF AMERI!J TEL C ORPORATION FOR LEAVE TO INTERVENE

• • excess profits through the year 2000. The added charges will be: funded by Fl'l.

customers to the exlent that those cluuges avoid exeess profits that ~hould be refunded

In short, in this docket. FPL nnd the Staff nn: playing with llll'ge amounts of"llouse" (t c .

customer) money.

20. FPL needs to provide a clear ju~titiCiltion for divertin& S4UO million in pussthlc

excess profits/customer refunds in 1998 and 199Q II has not oO'crc:d any In fact. 11 h:u

not even formally ~uested nn extension of lhc plnn. 1bc: Sllllr propo!>al ~eh 111 rc' a:~e

the revenue requirement for FPL set by the Commission in 1984' nn u pacecmcul basts.

without bearing or justification. Staff has not ouempted to ~ho" that extending this

progrnm i~ rernolely in the interests of FPL's customers.

IV. CONCLUSION

21. If the WAdded Expense Pion" extension is oppro"ed as SllliT propu!oCS. 1'1'1 ""uld

be lllloW'"d to take up to S900 million in tldded non-couh expense~ dunng the year~ I "1'-15 ·

1999. Most or Ill I of those revenues should he applied to the benefit of existing

customers. Today's customers 4rC entitled ton ~htlrC of FPL's CIII'Otngs above the

established rc:twn on equity cap. The StafUFPI. l'hm \\Ould. unreii.SOnubl) nnd \\tlhnut.t

word of justification. reduce FI'L's reported earning~ in such llll'gc: unwunts that II '"tuld

deny customers benefits to which they 4rC entitled As a result, the Stun· rc:c<lmmcnd:llwn

Ytould consutute a major chanae m rules Wtl.hout heurmgs or 1111) ul th< <'<m,umer

protection safeguards provided by Florida Sllltute and the Florida 1\Jrmnastrutt\C ('aide

'I•" P~ttton of Florida PoW~ cf Ugltl c-pan) j" '"' ,,.,.,,,,. tn 11.J "'"' oMtJ , ~ury,,..,, nuckn " "

IJ046S·EI. &.4 FPSC 136 (July 24, 19&.4 J

10

Page 12: Bllt C K.fll lD ~Uil C HlTTl .. . V IA OVERNIG HT MA L › library › filings › 1997 › 03707... · Dod.et No. 97041 0-El PETITION OF AMERI!J TEL C ORPORATION FOR LEAVE TO INTERVENE

I

• • • 22. AmcriSu:el n:quc:sts that the Comm1s.s1on grunt AmcriStecl ' s f'clltwn to

Intervene. deny Lhe Proposed Agency Action nnd initiate: o full duckct. including

discovery nnd o hewing i.n Lhis molter.

Respectfully submitted.

Salem. Saxon & Nielse:1, P i\ Suite 3200. One Barnell Phvn 101 East Kennedy Boulev111d P.O. !lox 3399 Tumpu. Florida 33601 Phone: (813) 224-9000 Fu.x: (813) 221-8811

Peter J.P Arickfield Jomcs W Ore" Bnckficld. Burchette & Rin,, I'(' 102S Thomas Jc:fTcrson Strc:ct. N \1.

Eighth Floor. West Tower Wnshington. DC 20007 Phone: (202)342-0800 Fu.x: (202) 342-0807

II

Page 13: Bllt C K.fll lD ~Uil C HlTTl .. . V IA OVERNIG HT MA L › library › filings › 1997 › 03707... · Dod.et No. 97041 0-El PETITION OF AMERI!J TEL C ORPORATION FOR LEAVE TO INTERVENE

• CERTII'ICATE OF SERVICE

(PSC DOCKET NO. Q70411\.EI)

• I HEREBY CERTIFY chat D true and com:cc copy of Peri cion of AmcriStl-c

Corporation For Leave To Intervene And Objrction To Proposed A gene) Action h.c. been furnished via overnight lllllil and facsimile: on the: I Oth day of Apnl 1997. 10 the following:

Rob-:n C:lins. Esq. Florida Public Service Commi.ssion

Gc:rnld L Gunter Building 2540 Shumard Oak Blvd.

Room 301 T oJ 1nhassec. FL 323 99-08 50

Facsimile:: 904-413-6250

Monhc:w M . Childs. Esq. Steel. lleccor & Davis

215 &>ulh Monroe: Suite 601

Tollahassec:, FL 32301-1804 Focsimilc: 904-222· 7510

William Wolk.c:r Florida Power & Light Comp!Uly

21 5 South Monroe Str-c:el Sunc 810

Tollohassec:. FL 32301-1859 Foc:simile: 90-1-2:!4-7197

Jock Shreve:. E . ..q. Roger I lowe. Esq.

Office of Public Counsel Ill West MBdison Street

Room812 1 ollohassec:. FL 32399

Facsimile; 904-488-4491

I~