How does the new FPL undergrounding tariff work?
In 2003, FPL set up a PSC-approved rule and process (tariff) for cities that wanted to have the option of converting to underground in designated areas and needed a mechanism to recover their costs. Under this new tariff, a city could pay to make the conversion and then recover its costs over a designated timeframe by having FPL add an underground fee on the bills of those customers in their jurisdiction who would be benefiting from the conversion. (Fees may not exceed [1] 15% of a customer’s bill or [2] $30 for residential and $50 for every 5,000 kwh commercial.) No such arrangements have as yet been established in our service territory under this new tariff.
