Don't Raise Electric Bill, FPL Asked
Jun 26 - The Miami Herald
> From retirees to small business owners, people had a message
> Thursday for Florida Power & Light: Don't increase our electric bills.
>
> The utility, which serves 873,000 people in Broward and 1,009,000
> people in Miami-Dade, is seeking permission from the Florida Public
> Service Commission to hike base rates by $1 billion starting Jan. 1.
> The utility says the increase would add $12.40 -- a 31 percent
> increase -- to the monthly electric bill of the customer who uses
> 1,000 kilowatt-hours a month.
> The current base rate is $39.31; FPL's proposed increase would boost
> it to $51.71.
>
> The PSC held hearings Thursday at the Broward County Main Library
> in Fort Lauderdale and the Miami Science Museum in Coconut Grove to
> give customers and consumer groups a chance to weigh in. About 150
> people showed up at each venue to protest the hike.
>
> "Who among us has seen a 30 percent increase in our revenue?"
> asked
> Gloria Reinhardt, a retiree and member of AARP, which opposes the
> hike. "Why would FPL come in for an increase in the worst recession
> I've ever seen, when so many people are losing their jobs?"
>
> FPL has said it needs the increase to strengthen its
> infrastructure, given Florida's susceptibility to hurricanes.
>
> That made sense to Delfin Pernas of West Miami-Dade, who attended
> Thursday's hearing in Coconut Grove. "I do feel we need the rate
> increase because more storms are coming," he said. "We need to
> strengthen the infrastructure."
>
> In 2005, the company asked for a base rate increase, but agreed
> to freeze its rates after it reached an agreement with the PSC, former
> Attorney General Charlie Crist and the Office of Public Counsel, a
> state agency representing consumers. As part of that agreement, FPL
> was not permitted to raise its base rates until 2010.
>
> FPL officials say the $12.40 increase would be offset by an
> anticipated decrease in fuel costs of $16.42 a month starting Jan. 1.
> According to that estimate, monthly electric bills are expected to go
> down from $107.04 to $104.63 -- a $2.41 drop. Fuel costs are passed
> directly to customers and fluctuate widely.
>
> "With the approval of the rate proposal, we can continue to make
> investments, which will save customers $1 billion a year starting in
> 2014,"
> said Marlene Santos, vice president of customer service at FPL.
>
> But that argument didn't curry favor at the hearings.
>
> The cities of Sunrise and Hallandale Beach presented resolutions
> opposing the rate hike. "FPL has a responsibility to tighten its
> belt," said Hallandale Beach Mayor Joy Cooper. "We need to ask FPL to
> do more with less, not the same with more."
>
> FPL also is seeking the increase to boost its rate of return to
> shareholders to 12.5 percent, according to its regulatory filings. J.R
> Kelly, who heads the Office of Public Counsel, said that "is just too
> much today:" "The average rate of return nationwide is 10.29 percent
> and we're going to argue that FPL's return on investment should be
> between 9 and 10 percent."
>
> FPL spokesman Mayco Villafana said the higher return on equity
> will bolster the company's balance sheet and help reduce its interest
> costs.
> "When FPL saves on financing, customers save on their bills," he said.
>
> The PSC, which regulates state utilities, will decide in mid-
> November whether to grant the utility's rate increase. The utility
> also has asked the PSC for permission to increase its base rate by
> $247 million by 2011. If the PSC approves the second increase, monthly
> electric bills -- based on 1,000 kilowatt hours -- would jump to
> $116.47 in 2011 from $107.04 now.
> From retirees to small business owners, people had a message
> Thursday for Florida Power & Light: Don't increase our electric bills.
>
> The utility, which serves 873,000 people in Broward and 1,009,000
> people in Miami-Dade, is seeking permission from the Florida Public
> Service Commission to hike base rates by $1 billion starting Jan. 1.
> The utility says the increase would add $12.40 -- a 31 percent
> increase -- to the monthly electric bill of the customer who uses
> 1,000 kilowatt-hours a month.
> The current base rate is $39.31; FPL's proposed increase would boost
> it to $51.71.
>
> The PSC held hearings Thursday at the Broward County Main Library
> in Fort Lauderdale and the Miami Science Museum in Coconut Grove to
> give customers and consumer groups a chance to weigh in. About 150
> people showed up at each venue to protest the hike.
>
> "Who among us has seen a 30 percent increase in our revenue?"
> asked
> Gloria Reinhardt, a retiree and member of AARP, which opposes the
> hike. "Why would FPL come in for an increase in the worst recession
> I've ever seen, when so many people are losing their jobs?"
>
> FPL has said it needs the increase to strengthen its
> infrastructure, given Florida's susceptibility to hurricanes.
>
> That made sense to Delfin Pernas of West Miami-Dade, who attended
> Thursday's hearing in Coconut Grove. "I do feel we need the rate
> increase because more storms are coming," he said. "We need to
> strengthen the infrastructure."
>
> In 2005, the company asked for a base rate increase, but agreed
> to freeze its rates after it reached an agreement with the PSC, former
> Attorney General Charlie Crist and the Office of Public Counsel, a
> state agency representing consumers. As part of that agreement, FPL
> was not permitted to raise its base rates until 2010.
>
> FPL officials say the $12.40 increase would be offset by an
> anticipated decrease in fuel costs of $16.42 a month starting Jan. 1.
> According to that estimate, monthly electric bills are expected to go
> down from $107.04 to $104.63 -- a $2.41 drop. Fuel costs are passed
> directly to customers and fluctuate widely.
>
> "With the approval of the rate proposal, we can continue to make
> investments, which will save customers $1 billion a year starting in
> 2014,"
> said Marlene Santos, vice president of customer service at FPL.
>
> But that argument didn't curry favor at the hearings.
>
> The cities of Sunrise and Hallandale Beach presented resolutions
> opposing the rate hike. "FPL has a responsibility to tighten its
> belt," said Hallandale Beach Mayor Joy Cooper. "We need to ask FPL to
> do more with less, not the same with more."
>
> FPL also is seeking the increase to boost its rate of return to
> shareholders to 12.5 percent, according to its regulatory filings. J.R
> Kelly, who heads the Office of Public Counsel, said that "is just too
> much today:" "The average rate of return nationwide is 10.29 percent
> and we're going to argue that FPL's return on investment should be
> between 9 and 10 percent."
>
> FPL spokesman Mayco Villafana said the higher return on equity
> will bolster the company's balance sheet and help reduce its interest
> costs.
> "When FPL saves on financing, customers save on their bills," he said.
>
> The PSC, which regulates state utilities, will decide in mid-
> November whether to grant the utility's rate increase. The utility
> also has asked the PSC for permission to increase its base rate by
> $247 million by 2011. If the PSC approves the second increase, monthly
> electric bills -- based on 1,000 kilowatt hours -- would jump to
> $116.47 in 2011 from $107.04 now.