Public Service Commission approves FPL’s new economic development rates to spur Florida economy and help create jobs
JUNO BEACH, Fla. – The state’s Public Service Commission (PSC) today approved modifications to Florida Power & Light Company’s electric service rate options, enabling the utility to provide an incentive for businesses to start up, expand or relocate here.
The new economic development rates offer discounted electric service for new or expanding businesses that add a minimum level of new electric load and new jobs, with a higher incentive for businesses that locate in commercial or industrial space that has been vacant for more than six months.
“While FPL’s rates are already the lowest in the state and significantly lower than national averages, these new incentives are designed to further help Florida businesses grow and help the state attract new businesses, which, in turn, will spur the economy and create jobs for Floridians,” said FPL President and CEO Armando J. Olivera.
New or expanding businesses that add a minimum of 350 kW of new electric load and create at least 10 new jobs per 350 kW of added load by June 1, 2013, can apply for the new economic development rates. After June 1, 2013, businesses wishing to take advantage of the rates will be required to add 25 new jobs per 350 kW of new electric load.
Eligible business customers receive declining discounts on their standard base energy and demand charges over four years: 20 percent in the first year, 15 percent in the second, 10 percent in the third and 5 percent in the fourth.
As an additional incentive to target the re-use of existing vacant property – where the associated electrical equipment is already in place – eligible business customers adding the requisite new load and new jobs in commercial or industrial space that has been vacant for more than six months receive an enhanced level of declining discounts over five rather than four years: 25 percent in the first year, 20 percent in the second, 15 percent in the third, 10 percent in the fourth and 5 percent in the fifth.
The PSC’s approval today makes the new rates effective immediately. Businesses interested in applying for the rates should e-mail PoweringFlorida@FPL.com for more information.
Typically, the 350 kW level of load includes business customers such as supermarkets, department stores, manufacturing facilities, hospitals and hotels.
For example, according to the most recent electric bill comparison data released by the Edison Electric Institute, a 500-kW FPL business customer using 180,000 kWh a month already saves more than $20,000 a year on electricity compared with the national average. FPL’s new economic development rates can potentially save a 350-kW business customer an additional $9,500 to $12,000 in the first year which helps offset the costs of starting up, expanding or moving their operations to Florida.
In addition to the new rate offerings, FPL has launched an Office of Economic Development within the company to help attract new businesses to the state. The office will work closely with the state and with local economic development organizations in the 35 counties the company serves.
FPL’s new Office of Economic Development is also creating a suite of professional services intended to assist businesses with strategic planning, project coordination, site selection, rate options, sustainability and energy-efficiency. As this effort progresses in the coming months, the office will make information available at a new website, www.PoweringFlorida.com, which is scheduled to go live in August 2011.
Florida Power & Light Company
Florida Power & Light Company is the largest electric utility in Florida and one of the largest rate-regulated utilities in the United States. FPL serves 4.5 million customer accounts in Florida and is a leading employer in the state with approximately 10,000 employees. The company consistently outperforms national averages for service reliability while customer bills are below the national average. A clean energy leader, FPL has one of the lowest emissions profiles and one of the leading energy efficiency programs among utilities nationwide. FPL is a subsidiary of Juno Beach, Fla.-based NextEra Energy, Inc. (NYSE: NEE). For more information, visit www.FPL.com.