FPL is one of Wall Street's favored large electric utilities, but the raft of bad news emanating out of Florida-- its corporate home state-- has reached a level of alarm. The corporation has taken a very aggressive strategy in Florida, pulling out all the stops to increase its productive capacity: mainly in the form of two new nuclear units at Turkey Point in Homestead, Florida. This $20 billion project is moving toward a final decision by the State of Florida, and then the Nuclear Regulatory Commission.
FPL's strategy for new nuclear was born in the fog of the housing boom that topped in 2005; showing it takes large, massive corporations almost as long as the government to adjust to changing economic reality. The problem is that top executives like Lewis Hay, III, Florida Power & Light's chief executive, talk to each other in a bubble. They see the forest through the trees, but they imagine they can impose the same forest on everyone else. Today, the economic collapse in Florida and across the nation is still trying to find adequate historic comparisons. We're not out of the woods yet. And the woods are nothing like Lew Hay and his lobbying corps imagine.
It is very difficult and very costly to plan and to permit new nuclear power. No question there. But the force of economic reality is bending FPL's corporate tactics to the breaking point: the company is under pressure to divulge top salaries by the Public Service Commission that is, itself, under investigation for undue influence of regulated companies like FPL. It is seeking a massive 30 percent rate increase at the same time it is pushing through permitting plans that government agencies are finding huge problems with. From my own point of view, trying to shoe-horn new nuclear at Turkey Point-- where the plants will have to be decommissioned within their service lifetime because of sea level rise-- is insanity. The only figure who seems truly oblivious to the difficulties: Gov. Charlie Crist. Crist knows that he is in the catbird's seat. He's already indicated his approval of nuclear power. All the turmoil FPL is encountering along the way to a complete nuclear site application is no skin off his back.
But, one has to wonder why FPL would continue to play its bad hand of cards, amidst all the problems the corporation is stirring up. To be sure, FPL already has ratepayer money -- more than $100 million-- in its corporate pocket to fund planning and public relations and marketing and spin doctoring and litigation against grouchy environmentalists and intervenors. But if Lew Hay is smart, he'd listen to voices outside his bubble-- where everyone says 'yes' to every time he nods his head or shakes it. He's not paid so well by shareholders to be stupid. Is he?
6 comments:
...every time he nods his head or shakes it...
You have described a bobble-head. We should market them with Hayes head on them. We could put one on the desk of every FPL employee.
Let's ask him! FPL will be at a public hearing tonight 9/2/09 from 6pm-9pm. University of Miami BankUnited Center, Hurricane 100 Room, 1245 Dauer Dr., Coral Gables.
Maybe they can finally answer some questions about the thinking behind this ill proposed project.
Interesting question and maybe the answer depends upon where you are standing. FPL is a private company and so the only obligation they have is to maximize their share price. If they build, they will be able to charge more, and perhaps to sell the excess energy. Sure, in the long run it's a disaster, but it will push up the share price. By the time the real bill comes due everyone will be dead and the only people who will care will be the lawyers, if we are still foolish enough to resolve catastrophic policy through litigation. And what are the alternatives for FPL? Tell the shareholders sorry, we are going to make less money for you? How long would Hayes keep his job?
Thus we come to government, which is supposed to take the long view, but in Florida the long view consists of thinking what land to buy for the next subdivision.
You may want to get the name right it's Hay not Hayes.
Thanks Ex FPLer, fixed it.
Now, fix our rates.
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