I got this message from Philip Stoddard and wanted to share it with our readers:
Please help get the word out to have people attend the Public Service Commission on proposed rate hikes that will take place in Miami, this Tuesday, June 26th. The PSC will hold a public meeting 9:00 am at the Dade County Auditorium, 2901 West Flagler St, and a second meeting 4:00 pm at Florida Memorial College, 15800 NW 42nd Ave, Miami Gardens.
FPL seeks a 16% rate increase
FPL is asking Florida’s Public Service Commission (FPSC) for a 16% rate increase, nearly all of which will go to increase the rate of return to their corporate shareholders. FPL insists the increase will only cost us rate payers a percent or two, because their increase to the base rate will be offset by dropping fuel charges. Forget that logic: those fuel savings belong to us, the rate payers. Our FPL bills have two parts, the base rate and the fuel charge, so the fuel cost is passed through straight to the rate payers. If the cost of fuel goes up, we pay more; if it goes down, we pay less. Very simple – the cost of fuel is independent of the base rate.
It's about their profits, not your service
FPL will squeak and squeak about how they need the money to provide good service. But the requested rate increase is very close to the percentage they want to increase profits to shareholders. Here's a link to an article about FPL's earnings being up 39% – yet FPL has the audacity to ask for higher rates to provide higher return on equity to shareholders.
Cost of FPL rate increase to South Miami’s economy
I calculate that the base rate increase will cost South Miami’s residents and businesses $1.7 million a year, none of which will come back to improve our service. FPL already gets “pass-throughs” to charge us directly for storm recovery and storm reserves. This $1.7 million would be extracted from our economy every year to benefit FPL’s shareholders. In fact, the stock price of their parent company, Next Era Energy (NYSE: NEE) has already risen 15% in anticipation that the rate case will be approved. FPL reminds us that they have among the lowest rates in Florida. Terrific. Let’s keep it that way. In a final bid for sympathy to their rate increase request, FPL’s government representative told me that utilities do go bankrupt. Hmm. Not as often as cities.
Another twist of the screw
Through the Nuclear Cost Recovery pass-through, FPL’s rate payers are already paying $3 billion up front to “uprate” FPL’s nuclear reactors at Turkey Point and St. Lucy, enabling them to generate 15% more power with the same fuel from the same 40 year old reactor vessels. We deserve the reward on our capital investment and risk. Instead, FPL’s shareholders currently get to charge us 11.25% on our investment, and now FPL is asking to INCREASE the amount we pay their shareholders for the capital we gave them. If that sounds completely preposterous, it is. That’s what happens when a Wall Street monopoly buys Tallahassee.
And the ultimate injury to South Miami, the issue that put FPL in the dog house to begin with…
US 1 transmission lines
FPL has stonewalled South Miami’s request that FPL bear the full $21 million cost of burying their proposed 230 kV transmission lines on South Miami’s US 1. Our economic study estimated those transmission lines, if built above ground, will destroy $28.5 million in South Miami property values, cost $21.6 million annually in lost wages, and cost us $1.73 million in annual property taxes. And that’s on top of the extra $1.7 million FPL will take from us every year they get their requested rate increase. Let us not forget the greatly elevated incidence of childhood leukemia, Alzheimer’s disease, and other senile dementias reported among people living near transmission lines.
South Miami and Pinecrest are legally intervening in the rate case to oppose it, and we expect several other cities to join us. Several cities have passed resolutions opposing the rate increase. AARP and S Fl Hospital association have also Intervened. But...
The PSC MUST hear from the public!
So please show up on Tuesday and let the PSC know what you think about FPL's proposed rate increase. Bring a friend and email 5 more.
4 comments:
Obviously FPL has bought off the commissioners from Palmetto Bay. Otherwise why would they leave South Miami and Pinecrest to fight alone by failing to intervene in the FPL rate case? Resolutions are not worth the paper they are written on. It’s like sitting on a bar stool and hoisting your beer while your buddy is getting pummeled. “I support you buddy. Ouch that looks like it hurts!” AARP and S Fl Hospital association have intervened but not Palmetto Bay? The Mayor’s business partner’s spouse works for FPL, the vice mayor has indicated more than once it is not their fight, one council member owes allegiance to FPL through fraulein Bell and another just couldn’t care less unless those power lines were for a private school. The last one knows the futility of being the lone voice against the dysfunctional council.
That's ok residents of Palmetto Bay, You can still have a major impact by showing up on Tuesday to speak on your own behalf before the Public Service Commission. You can tell them the PB Village Council passed a Resolution Opposing the Rate hike,but unfortunately aren't willing to invest in litigation for anything but fighting private schools. Tell them that you expect the PSC to protect the public from the over reaching of the investor owned utilities. You can ALSO tell them that Florida MUST begin to move forward on expanding renewable energy, and not rely on monopolies like our public utilities,who have no commitment to renewable and distributed energy. Germany now has 20% of their energy from renewables, and many states in US are moving close to that. but Florida sadly only gets 3% from renewables.
I hope they build another nuclear power plant so our rates will be lower.
Poor dumb Kevin who thinks he is being clever. Paying for the nuke plant raises rates even more.
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