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FL Supreme CourtJuly 7, 2022Reversed and Remanded⭐ Notable

Duke Energy Florida, LLC v. Clark

Case No. SC20-1601

Duke Energy Florida sought roughly $16 million in replacement power costs after a steam turbine at its Bartow plant went offline in 2017 and was returned at derated capacity. An ALJ found DEF operated the turbine imprudently in an early period (2009-2012) but prudently thereafter, and concluded as a matter of law that the earlier imprudence could bar recovery only if it caused the 2017 outage; the PSC adopted that order and denied recovery. The Supreme Court reversed, holding the causation determination was contrary to the record because no evidence—including OPC's own expert's testimony—supported a finding that the pre-2012 operation caused post-2012 blade damage, and ordered entry of an order awarding the costs.

Key facts

  • Duke Energy Florida sought approximately $16 million in replacement power costs after a steam turbine at its Bartow generating plant went offline in 2017 and was returned at reduced capacity.
  • An Administrative Law Judge found that DEF operated the turbine imprudently during 2009-2012 but prudently thereafter, and concluded that the earlier imprudence could only bar recovery if it caused the 2017 outage; the PSC adopted this order and denied recovery.
  • +2 more key facts with a free trial

Why it matters

The decision is a useful preservation and standard-of-review tool: it reaffirms that exceptions to a recommended order are read as a whole for preservation purposes, and shows a reviewing court will set aside 'findings'… — full analysis with a trial

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