Florida Power and Light has a credibility problem that stretches way further than the PSC decision to deny the rate increase that would have raised $1.3 billion, funding new nuclear reactors at Turkey Point in addition to other projects. "The PSC has spoken,'' CEO Hay told the Herald, "Likewise, so have our investors, who have unfortunately seen what we believe is more than $1 billion of value in their FPL Group stock destroyed over the course of the rate proceeding.'' That's one way to look at it. Another way: FPL stock price closed yesterday about 20 percent higher than its 52 week low. Its financial ratios are healthy in relation to competitors if you believe the numbers; including total debt to assets. I have no doubt Hay et al. wanted to leverage a massive rate increase to put on more debt, to return more profit to shareholders and executives. Now FPL is joining the general clamor of "jobs, jobs, jobs." I would like FPL to publish another financial metric, before crying in its cups. Over the last 10 year period, let's measure the rate of increase of return of Mr. Hay's net worth and top executives compared to a widow's and orphan's stock portfolio invested in large cap energy companies. I don't begrudge Mr. Hay's success, but just because the PSC has shut the door on making money the old fashioned way, doesn't mean the corporation with all its skill and expertise can't figure out how to make lots of money in a new, sustainable energy future without a massive rate increase and dropping nuclear energy from its Florida portfolio.
6 comments:
I really get annoyed when people make claims that cannot be proven or disproved. Jobs? Growth? Whatever the key phrase of the day is what FPL uses.
They are a profitable company and just don't want to disclose anything to anyone.
I was not surprised to read they're still going to go through the process for the nuclear reactors in an environmentally sensative, salt water instrusion filled area. Great planning and a total waste of funds. If I were a sharehold, I'd request they pull the plug on that project all together.
And, lets not forget, the energy they claim they will create is actually surpluss, which they need power lines outside the UDB to transport out of the area. Another issue they sidestep.
Good on the PSC!
FPL executives are greedy pigs. Does the CEO really need to use $10 Million of the shareholders money to pay himself? How much is enough?
Florida residents are being crushed by a recession. FPL continues to want to put its heavy boots on the throats of struggling homeowners.
Last anonymous/
I read your comment quickly and thought you said boob not boot -- it still reads okay!
How quickly FPL turns to extortion when its unchecked power to gouge the people of Florida is challenged. They have raised a gun to the heads of 1,200 employees and in effect told the state, "Give us what we want or we kill these people's livelyhoods." Wish it was not typical corporate behavior.
FPL's CEO makes the shareholders pay himself $10 Million per year. More with stock options? Corporate jet? That would pay a lot of employees.
FPL is doing nothing short of blackmailing Florida. The rate increase was not for Turkey Point. Executive incentives in the request were tremendous. If Florida want's jobs it will invest in renewable energy which has the ability to bring a greater number of permanent high quality jobs - not the temporary construction positions (with bloated #'s) that FPL claims.
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