The Florida Public Service Commission's staff last week recommended that Florida Power & Light, a Juno Beach, Fla.-based utility company, be allowed to tap the securitization market for about $659 million. If the power company completes the transaction, it will use the funds to cover storm recovery costs.
The recommended amount is $562 million less than what the Florida Power & Light originally asked to securitize when it submitted its request last January. It originally asked to raise $826 million to reimburse it for costs incurred during the 2005 storm season; another $213 million would cover costs from 2004 storms, and $650 million would be used to replenish its storm damage reserve. From an initial $1.7 billion in total costs requested for recovery, Florida Power & Light subtracted $651 million in income taxes to get to $1 billion.