In South Florida, we suffer under the regime of Florida Power and Light and its mean-spirited lobbyists. In the northern part of the state, it has been Progress Energy until it was recently absorbed by an even larger goliath: Duke Energy.
The merger handed the CEO of Progress Energy, Bill Johnson, a severance package worth more than $44 million. What is notable is that Johnson had a horrendous track record; including a massive investment in both old and new nuclear power at Crystal River and Levy.
In a weekend editorial, the St. Pete Times dares to ink what the Miami Herald dares not: that a weak economy makes new nuclear -- costing TENS of billions -- a ridiculous proposition that is supported, nonetheless, by the idiotic, incompetent Florida legislature that allows electric utilities to bill customers in advance for nuclear power planning even if the plants are never built.
This is where Florida Power and Light have capitalized and rewarded top executives who are now charter members of the financial elite: the .01 percent'ers. Unfortunately, the compensation packages (and retirement pensions) of the top publishers like The Miami Herald put readers and the public at a similar disadvantage to the facts.
A cone of silence has descended on the appropriate criticism of Florida's utilities. We try, here, to lift it a bit. (For the St. Pete Times OPED, click 'read more')
tampabay.com
Hope for Progress Energy customers
Published Friday, July 6, 2012
It comes at a steep price, but finally someone appears to have been
held accountable for the mismanagement of Progress Energy and its
nuclear power debacles. Duke Energy abruptly parted ways this week
with Bill Johnson, the former Progress Energy chief executive who was
supposed to be the top official for the merged companies. If the
Florida Public Service Commission and the Legislature had been
similarly aggressive, ratepayers would not be on the hook for billions
in costs tied to one nuclear plant that's broken and another that may
never be built.
Duke made the announcement that it was replacing Johnson as CEO of the
nation's largest electric utility with Duke Energy CEO Jim Rogers just
hours after the merger. The merged company's board, which is dominated
by former Duke board members, was so eager to make the switch that it
was willing to pay Johnson up to $10.3 million to go away. That is a
ridiculous sum for someone with his track record. But that pales in
comparison to the money on the line as Duke decides what to do with
the damaged Crystal River nuclear plant and whether to proceed with
the proposed nuclear plant in Levy County despite soaring costs.
Perhaps a fresh set of eyes will help Duke see what Florida regulators
and state lawmakers refuse to acknowledge. First, it's time to pull
the plug on building the Levy County nuclear plant. The cost has
jumped from $5 billion when the project was announced in 2006 to $24
billion and rising. Conditions have changed since the plant was first
proposed, with natural gas prices dropping and the weak economy
reducing projected demand for electricity. The only way out would be
for Duke, with its considerable financial resources and influence, to
find a partner for the plant that would take some of the burden off
Florida ratepayers. Good luck with that.
Second, there is reasonable doubt about whether the shuttered Crystal
River nuclear plant is worth fixing. Progress Energy badly botched its
do-it-yourself repairs and the plant has been shut down since the fall
of 2009. Regardless of whether the plant is fixed or another natural
gas plant is built to replace the power, ratepayers will be on the
hook. But if Rogers acts as decisively as the Duke board did in
picking him to replace Johnson, Duke's new Florida customers can only
benefit.
Compare Duke's decisionmaking with the failure to grasp reality in
Tallahassee. In February the PSC approved a limp deal with Progress
Energy that provided a modest refund but still raised rates and let
customers continue to be billed in advance for the Levy project for
the next five years. And the Legislature has not lifted a finger to
repeal the 2006 law that foolishly allowed electric utilities to bill
customers for these advance nuclear construction costs even if the
plant is never built.
This is what it has come to in the Sunshine State: The best hope
utility customers have to protect their wallets comes not from
regulators or legislators but from the new CEO of the nation's largest
electric company. That speaks well of the highly regarded management
from the old Duke Energy, but it reaffirms the toothlessness of the
industry lapdogs in Tallahassee.
© 2012 • All Rights Reserved • Tampa Bay Times
490 First Avenue South • St. Petersburg, FL 33701 • 727-893-8111
Contact Us | Join Us | Advertise with Us | Subscribe to the Tampa Bay Times
Privacy Policy | Standard of Accuracy | Terms, Conditions & Copyright
The merger handed the CEO of Progress Energy, Bill Johnson, a severance package worth more than $44 million. What is notable is that Johnson had a horrendous track record; including a massive investment in both old and new nuclear power at Crystal River and Levy.
In a weekend editorial, the St. Pete Times dares to ink what the Miami Herald dares not: that a weak economy makes new nuclear -- costing TENS of billions -- a ridiculous proposition that is supported, nonetheless, by the idiotic, incompetent Florida legislature that allows electric utilities to bill customers in advance for nuclear power planning even if the plants are never built.
This is where Florida Power and Light have capitalized and rewarded top executives who are now charter members of the financial elite: the .01 percent'ers. Unfortunately, the compensation packages (and retirement pensions) of the top publishers like The Miami Herald put readers and the public at a similar disadvantage to the facts.
A cone of silence has descended on the appropriate criticism of Florida's utilities. We try, here, to lift it a bit. (For the St. Pete Times OPED, click 'read more')
tampabay.com
Hope for Progress Energy customers
Published Friday, July 6, 2012
It comes at a steep price, but finally someone appears to have been
held accountable for the mismanagement of Progress Energy and its
nuclear power debacles. Duke Energy abruptly parted ways this week
with Bill Johnson, the former Progress Energy chief executive who was
supposed to be the top official for the merged companies. If the
Florida Public Service Commission and the Legislature had been
similarly aggressive, ratepayers would not be on the hook for billions
in costs tied to one nuclear plant that's broken and another that may
never be built.
Duke made the announcement that it was replacing Johnson as CEO of the
nation's largest electric utility with Duke Energy CEO Jim Rogers just
hours after the merger. The merged company's board, which is dominated
by former Duke board members, was so eager to make the switch that it
was willing to pay Johnson up to $10.3 million to go away. That is a
ridiculous sum for someone with his track record. But that pales in
comparison to the money on the line as Duke decides what to do with
the damaged Crystal River nuclear plant and whether to proceed with
the proposed nuclear plant in Levy County despite soaring costs.
Perhaps a fresh set of eyes will help Duke see what Florida regulators
and state lawmakers refuse to acknowledge. First, it's time to pull
the plug on building the Levy County nuclear plant. The cost has
jumped from $5 billion when the project was announced in 2006 to $24
billion and rising. Conditions have changed since the plant was first
proposed, with natural gas prices dropping and the weak economy
reducing projected demand for electricity. The only way out would be
for Duke, with its considerable financial resources and influence, to
find a partner for the plant that would take some of the burden off
Florida ratepayers. Good luck with that.
Second, there is reasonable doubt about whether the shuttered Crystal
River nuclear plant is worth fixing. Progress Energy badly botched its
do-it-yourself repairs and the plant has been shut down since the fall
of 2009. Regardless of whether the plant is fixed or another natural
gas plant is built to replace the power, ratepayers will be on the
hook. But if Rogers acts as decisively as the Duke board did in
picking him to replace Johnson, Duke's new Florida customers can only
benefit.
Compare Duke's decisionmaking with the failure to grasp reality in
Tallahassee. In February the PSC approved a limp deal with Progress
Energy that provided a modest refund but still raised rates and let
customers continue to be billed in advance for the Levy project for
the next five years. And the Legislature has not lifted a finger to
repeal the 2006 law that foolishly allowed electric utilities to bill
customers for these advance nuclear construction costs even if the
plant is never built.
This is what it has come to in the Sunshine State: The best hope
utility customers have to protect their wallets comes not from
regulators or legislators but from the new CEO of the nation's largest
electric company. That speaks well of the highly regarded management
from the old Duke Energy, but it reaffirms the toothlessness of the
industry lapdogs in Tallahassee.
© 2012 • All Rights Reserved • Tampa Bay Times
490 First Avenue South • St. Petersburg, FL 33701 • 727-893-8111
Contact Us | Join Us | Advertise with Us | Subscribe to the Tampa Bay Times
Privacy Policy | Standard of Accuracy | Terms, Conditions & Copyright
1 comment:
Does anyone care that the Gimenez Tax Break last year reduced the property tax bill paid by FPL from $26M to $20M? We lost $6M in revenues to pay for services, yet I do not recall my power bill being reduced. Oh yeah, and who represents FPL? Gimenez's buddy, Georgie Lopez. What a coincidence.
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