Challenge to Transmission Rate Return on Equity Filed

March 2, 2012

Could Save Power Agency, Coop Customers Millions

On February 29, 2012, the Florida Municipal Power Agency (FMPA), advised by Spiegel & McDiarmid LLP, jointly with Seminole Electric Cooperative, Inc. (SECI), filed a complaint at the Federal Energy Regulatory Commission (FERC) challenging the Return on Equity (ROE) used by Progress Energy Florida to calculate its transmission rate. FMPA and SECI show that Progress Energy Florida’s 10.9% Return on Equity is unjust and unreasonable and that the ROE should be 9.02%.  If FERC grants FMPA and SECI the relief they seek in the complaint, customers of FMPA and SECI will collectively save millions of dollars per year.