Floridas two largest electric utilities reported on Friday that they have posted higher earnings for the third quarter 2010 compared to last year as both took advantage of favorable weather and improved economic conditions.
Florida Power & Light, the state's largest utility with 8.7 million customers, reported a third quarter net profit of $308 million, or $1.31 a share, a 0.7 percent increase from the $306 million it reported during the same time last year.
Company officials said the growth was fueled by the addition of 27,000 customers and agreements reached during the quarter affecting future rates.
FPLs parent company, Juno-Beach based NextEra Energy, posted a profit of $720 million, or $1.45 a share, a 35-percent increase from the same period last year, $533 million.
Progress Energy, the states second largest power generator, posted third-quarter ongoing earnings of $361 million, or $1.23 per share, compared to $342 million, or $1.22 per share, for the same period last year. The increase represents a 0.6 percent increase year-to-year.
"We achieved strong financial performance for our shareholders so far this year and successfully met high energy demand during one of the hottest summers on record," said Bill Johnson, chairman, president and CEO of Progress Energy in a statement. "The economy in the Carolinas and Florida continues to show modest but steady signs of recovery, and we remain focused on managing costs and improving operations and execution.
Earlier this week, the PSC approved $163 million cost recovery for Progress Energy for construction of its proposed Levy County nuclear plants and its existing Crystal River facility. They will add $5.53 a month to the average cost of 1,000 kilowatts.
In August, FPL reached an agreement that locks in rates until the end of 2012, as well as holding the company's return on equity, or profit margin, at 10 percent. It also gave FPL the power to ask the Public Service Commission to raise rates if the company's profit margin falls below 9 percent, while the consumer groups can initiate a rate proceeding if return on equity rises above 11 percent. We believe the settlement agreement we reached with the interveners in our rate case is in the best interest of all of the parties involved, especially the approximately 8.7 million Floridians we serve, said Lew Hay, chairman and CEO of NextEra Energy.
