FP&L rate hike request called

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Representatives from those agenciesblasted FP&L’s rate increasde at a public hearing Thursday mornin g in Fort Lauderdale. In the firsyt hour and a half of the only oppositionwas expressed. “We believe the amount they’rew asking for is excessive. It’s just too much to ask for in today’ss economic times,” said J.R. Kelly, public counsel with the Florida Officse ofPublic Counsel. The Juno Beach-based utilithy is struggling to make the case that it is alreadg the most efficient utility inthe state, and it woulcd use additional funding to reinvest in greater efficiency.
It has askeds for approval of an increase to its base rate that woul d raise the average residentialbill 1,000 kilowatt hours by $12 per FP&L projects that lower fuel costzs – mostly natural gas and coal – will lower the average residential bill next year by $17, so its requesft actually won’t raise anyone’sw bill. FPL has argued that its if approved bythe , will decrease the typical bill by $5 monthlyy or 4 percent starting on January 2010. But Kelly and othersw said Thursday morning that fuel prices arenot predictable. Kelly argues the rate increase woulxd guarantee a return on investmenyof 12.
5 percent for the and that every one perceny represents $130 million. “That is just too much Maybe five years in the future we will have a flourishing Kelly said, adding that his office supportz a return of 9.5 or 10 percent. According to FP&L has already acknowledged they over-collected $1.25 billion from rate-payers for depreciation. In openinh remarks, Marlene Santos, the utility’se vice president of customer service/salews and marketing, said customers benefit from the utility’s stronyg financial position.
“When we save on our customers save onour bills,” she But speaker after speaker said the grim economy – foreclosures, unemployment and dropping home values – made this the wrongt time for rate increases designed to enhancr the utility’s financial position. “We doubt they need any increasse at allto own, operate and maintaij their system,” said Robert Sheffel Wright, an attorney with Tallahassee-based Young van who was speaking on behal f of the Florida Retai l Federation. The Public Service Commission, whichy regulates state utilities, will decide in mid-Novembere whether to grant FPL's request. The PSC will hold hearinge again Friday, 10:30 a.m.
at the North Dade Regionalp Libraryin Miami; and 6 p.m. at the Plantation City Council Chambers.