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| Eduardo Balbis, Lisa Polak Edgar, Ronald A. Brise, Art Graham, Julie Brown |
A Public Service Commission meeting on proposed rate hikes by FPL will take place in Miami on June 26th. There will be a 9:00 am meeting at Dade County Auditorium and a 4:00 pm one at Florida Memorial College. Pinecrest Mayor Cindy Lerner said:
"Pinecrest has intervened in the Rate case to oppose it, and I expect several other cities to join us. Several have passed resolutions opposing the rate increase. AARP and South Florida Hospital Association have also Intervened. The Public Service Commission MUST hear from the public."
9:00 AM - Miami-Dade County Auditorium, 2901 W. Flagler Street, Miami (take 836 to SW 27 Avenue - go South)
4:OO pm., Florida Memorial University Lou Rawls Auditorium, 15800 NW 42nd Avenue, Miami Gardens (826 west to NW 37th Avenue exit, turn left on NW 42nd Avenue)
Palm Beach post on rate hike:
FPL’s request for $690.4 million rate increase gets poor reviews at customer service hearing 06/14/2012 9:55 PM
People on fixed incomes, ordinary working people and an attorney representing retail stores were among those who pleaded with the Florida Public Service Commission on Thursday to deny Florida Power & Light Co. a proposed $690.4 million rate increase for 2013.
The commission held a three-hour customer service hearing, which about 75 customers attended, along with FPL and PSC officials.
If the rate hike is approved, the 1,000-kilowatt-hour residential customer’s base rate would jump to $50.35 in June 2013 from $43.26 this year. Due to a projected decrease in fuel charges and an increase in other charges such as nuclear costs, the total customer bill would increase to $96.03 in June 2013 from the current $94.62.
About 30 customers addressed the PSC in the hearing, which took place at the Solid Waste Authority of Palm Beach County in suburban West Palm Beach. Several said the proposed $7.09 per month base rate increase — which is what it would be for a customer who uses 1,000 kilowatt hours a month — would be a burden on them.
Even though FPL has stressed that the 16 percent rate hike would be offset by lower fuel costs, resulting in a net increase of $1.41 a month on that typical customer bill, the fact that the increase would be permanent made some uneasy.
The company’s requested rate of return on equity — or profits — of an 11.5 percent midpoint was also criticized and called ridiculous by some ratepayers. Several commented on NextEra CEO Lew Hay’s $22 million annual compensation. Both NextEra, FPL’s parent company, and FPL are headquartered in Juno Beach.
“Their service is great. How much profits does the company need?” said Winsome Naylor of West Palm Beach. “How much does a CEO have to make off the backs of people who don’t have the money? The $7 is food money. It’s medications money.”
Even many of those who spoke against the proposed rate hike generally praised FPL’s service as reliable.
Marlene Santos, FPL vice president for customer service, said FPL’s typical residential bill is the lowest of the state’s 55 utilities, resulting in a $357 savings for the FPL customer in 2011.
New natural gas plants put into service since 2001 have saved customers $5.5 billion in fuel costs, Santos said. The $1 billion Cape Canaveral plant scheduled to be powered up in June is part of the reason for the rate increase, and it will pay for itself with a projected $1 billion in fuel savings over 30 years.
“It’s like trading in your old clunker for a new hybrid car,” Santos said.
“It’s not just about fuel. It’s about having a vision and investment strategy that will provide benefits for years to come for the state and for customers,” Santos said.
At 10 percent, FPL’s current midpoint is the lowest of the state’s investor-owned utilities, Santos said.
“We are asking to be treated fairly when our performance is compared to the other investor-owned utilities,” Santos said.
Florida Public Counsel J.R. Kelly, who represents ratepayers in the case that the PSC is expected to hear in August, said his office is reviewing all areas of FPL’s filings, such as its salaries, plant upgrades and capital structure. It’s up to FPL to prove the charges are reasonable and prudent.
Kelly said the requested ROE of 11.5 percent is too high.
“We do not think that is reasonable in light of today’s economy or what other utilities are earning,” Kelly said.
“This case is not about fuel. This case is about FPL’s request for a 16 percent increase in your base rates,” Kelly said.
“Whatever FPL pays for fuel, you pay for fuel. Natural gas prices are low right now. No one — not me, and not FPL — can predict what natural gas prices will do next year,” Kelly said.
Schef Wright, representing the Florida Retail Federation’s 9,000 members from mom-and-pop stores to major chains, said that in 2009, FPL sought a $1.3 billion base rate increase but was granted just 6 percent, or $76 million.
“Since that time, FPL and its parent company, NextEra Energy have been doing just fine. They’ve increased dividends three times,” Wright said.
“It is FPL’s duty to provide safe and reliable service at the lowest possible cost,” Wright said.
Next year, without any increase, FPL will receive $10.4 billion from ratepayers, and $1.2 billion of that will be profits, Wright said.
“We don’t believe they can justify an increase like they have asked for,” Wright said.
Carol Chouinard of Port St. Lucie said any increase in would be a hardship for her disabled granddaughter, who tries to avoid running her air conditioning.
“Please don’t grant this increase. FPL doesn’t need it, and many Florida residents are struggling to pay their bills,” Chouinard said.
Assistant Palm Beach County Administrator Vince Bonvento didn’t comment on the rate hike but applauded FPL’s infrastructure improvements.
“They are a real key member of our disaster team,” Bonvento said.
West Palm Beach City Commissioner Sylvia Moffett said the district she represents is that city’s poorest, and some residents don’t turn on their electricity.
“Sixteen percent is not fair or reasonable. It’s not prudent,” Moffett said.
West Palm Beach resident Leo Solar said the FPL’s request reminds him of medieval times when the lords collected money from the serfs.
“We are in dire need of a Robin Hood,” said Solar, who called the company’s request “cavalier, callous and arrogant.”
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4 comments:
Cutler Bay, Pinecrest and South Miami have all stepped forward to work for their residents and oppose the rate hike. Palmetto Bay has only offered a lukewarm resolution without teeth: a general policy statement that does not commit the village to any money and does not intervene according to current Mayor Stanczyk. Of course, the husband if one of the Mayor's business partners works for Turkey Point, so don;t expect her to take on her partner's family income.
Other than opposing this increase because you have a hard on for FPL, have you actually done any financial analysis to ascertain if the requested increase is warranted? FPL is a regulated monopoly, and as such, is totally dependent on the PSC for it's profit, which is legislatively determined at somewhere between 11%-13%, if memory serves. It's easy to beat up the big bad utility, as long as facts have no place in the discussion.
FPL SUCKS.FPL laid off 10,000 maintenance employees in the early 90's and never looked back.Their problem now the grid is falling down.They went for profits and stopped being a good company long ago.Their greed is boundless.Their new pres, Eric Silagy did a smear campaign in 2010 which ejected 4 of 5 public service commissioners.
who worked for consumers not FPL. FPL flies elected officials like Connie Mack in their private jets.Lewis Hay and Armando Olivera are leaving a sinking ship they both should be investigated for running a ponzi scam.The money FPL wastes should be enough reason for every ratepayer eo intervene and hold them accountable,The executives at FPL are worse than Bernie Madoff and should do at least as much time.The FBI needs to come on down................
I think as long as fpl execs are bringing home multi million dollar bonues, they should under no circumstances get a rate increase.
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