Florida utility customers voice opposition to rate increase
Jul 18 -
> McClatchy-Tribune Regional News - Fred Hiers Ocala Star- Banner, Fla.
>
> Some Progress Energy Florida customers voiced opposition Friday
> to the utility's proposal to hike its base rate 31.5 percent, with
> many saying they are already struggling to make ends meet.
>
> Approximately 50 people attended the hearing, hosted by the
> Florida Public Service Commission at Ocala City Hall, and many said
> they couldn't afford the hike, citing fixed incomes and a struggling
> local economy with an unemployment rate of more than 12 percent.
>
> "Right now it's gotten down to the type of food I can afford to
> buy. I keep my thermostat at 83 degrees," said Sherry Bowman, 62, a
> disabled U.S.
> Navy veteran. "I'm down to a beans and rice diet. My bill last month
> was $92. This month it was $137. I don't have that kind of money. I'm
> living from month to month."
>
> The Public Service Commission is holding similar hearings
> throughout the state.
>
> The PSC regulates Florida utilities and decides rate requests
> based on what it thinks is a reasonable rate of return and the
> operational needs of the utilities.
>
> If the rate increase is approved by the commission, the hike
> would raise customers' average monthly bills of $122.79 for 1,000
> kilowatt hours an additional $13.83.
>
> Of the hike, $4.41 went into affect this month as an interim
> increase.
>
> Customers would see the remaining $9.42 monthly increase on bills
> in January.
>
> The PSC will vote on the issue Dec. 1, where it could approve
> some or all increases or retroactively reduce the July $4.41 increase.
>
> The proposed base rate hike includes operational costs and
> profit.
>
> It doesn't include other hikes, such as for the company's
> proposed nuclear power plant in Levy County.
>
> The proposed increase would generate about $500 million for
> Progress Energy.
>
> The bump in rates would increase the company's rate of return to
> 12.54 percent. Progress Energy says it needs the additional money to
> cover costs and plant improvements, and attract investors.
>
> Spokeswoman Cherie Jacobs said the 12.54 percent rate of return
> is not guaranteed.
>
> "The utility industry in Florida is regulated. It's part of the
> utility's regulation to have the opportunity to make a fair rate of
> return and a fair rate of return for our investors," Jacobs said.
>
> She said the current rate of return is just under 10 percent.
>
> Sen. Charlie Dean, R-Inverness, who attended part of the hearing,
> said
> 12.54 percent profit is unacceptable.
>
> "In this economy, it can't happen. The money isn't there," Dean
> said, adding that the utility's rate of return should be no more than
> 10 percent.
>
> "(The company's) needs should be based on the growth of Florida,"
> Dean said, adding that the state's growth is stagnant.
>
> Progress Energy customers have watched rates resemble a roller
> coaster the past few months.
>
> At the beginning of the year, bills jumped 25 percent to cover
> the utility's fuel costs and set money aside for the proposed Levy
> County nuclear power plant.
>
> By April, the utility cut bills 11 percent when fuel costs fell
> and the company decided to postpone collecting on some nuclear costs
> amid complaints from customers and elected officials.
>
> This month, bills increased $4.41, most of which went to
> converting the utility's Bartow oil-burning plant to natural gas.
>
> Most of the people who spoke at the meeting agreed this was the
> worst time for a rate hike.
>
> "If they raise the rates, it would be really difficult for me.
> I'm on
> Social Security," said 68-year-old Steve Voorhees. "They're not
> concerned about the economy or what it would do to us. ... and their
> bottom line. This whole thing is bogus."
>
>
> McClatchy-Tribune Regional News - Fred Hiers Ocala Star- Banner, Fla.
>
> Some Progress Energy Florida customers voiced opposition Friday
> to the utility's proposal to hike its base rate 31.5 percent, with
> many saying they are already struggling to make ends meet.
>
> Approximately 50 people attended the hearing, hosted by the
> Florida Public Service Commission at Ocala City Hall, and many said
> they couldn't afford the hike, citing fixed incomes and a struggling
> local economy with an unemployment rate of more than 12 percent.
>
> "Right now it's gotten down to the type of food I can afford to
> buy. I keep my thermostat at 83 degrees," said Sherry Bowman, 62, a
> disabled U.S.
> Navy veteran. "I'm down to a beans and rice diet. My bill last month
> was $92. This month it was $137. I don't have that kind of money. I'm
> living from month to month."
>
> The Public Service Commission is holding similar hearings
> throughout the state.
>
> The PSC regulates Florida utilities and decides rate requests
> based on what it thinks is a reasonable rate of return and the
> operational needs of the utilities.
>
> If the rate increase is approved by the commission, the hike
> would raise customers' average monthly bills of $122.79 for 1,000
> kilowatt hours an additional $13.83.
>
> Of the hike, $4.41 went into affect this month as an interim
> increase.
>
> Customers would see the remaining $9.42 monthly increase on bills
> in January.
>
> The PSC will vote on the issue Dec. 1, where it could approve
> some or all increases or retroactively reduce the July $4.41 increase.
>
> The proposed base rate hike includes operational costs and
> profit.
>
> It doesn't include other hikes, such as for the company's
> proposed nuclear power plant in Levy County.
>
> The proposed increase would generate about $500 million for
> Progress Energy.
>
> The bump in rates would increase the company's rate of return to
> 12.54 percent. Progress Energy says it needs the additional money to
> cover costs and plant improvements, and attract investors.
>
> Spokeswoman Cherie Jacobs said the 12.54 percent rate of return
> is not guaranteed.
>
> "The utility industry in Florida is regulated. It's part of the
> utility's regulation to have the opportunity to make a fair rate of
> return and a fair rate of return for our investors," Jacobs said.
>
> She said the current rate of return is just under 10 percent.
>
> Sen. Charlie Dean, R-Inverness, who attended part of the hearing,
> said
> 12.54 percent profit is unacceptable.
>
> "In this economy, it can't happen. The money isn't there," Dean
> said, adding that the utility's rate of return should be no more than
> 10 percent.
>
> "(The company's) needs should be based on the growth of Florida,"
> Dean said, adding that the state's growth is stagnant.
>
> Progress Energy customers have watched rates resemble a roller
> coaster the past few months.
>
> At the beginning of the year, bills jumped 25 percent to cover
> the utility's fuel costs and set money aside for the proposed Levy
> County nuclear power plant.
>
> By April, the utility cut bills 11 percent when fuel costs fell
> and the company decided to postpone collecting on some nuclear costs
> amid complaints from customers and elected officials.
>
> This month, bills increased $4.41, most of which went to
> converting the utility's Bartow oil-burning plant to natural gas.
>
> Most of the people who spoke at the meeting agreed this was the
> worst time for a rate hike.
>
> "If they raise the rates, it would be really difficult for me.
> I'm on
> Social Security," said 68-year-old Steve Voorhees. "They're not
> concerned about the economy or what it would do to us. ... and their
> bottom line. This whole thing is bogus."
>
>