Sunday, Jun 21, 2009
Posted on Sat, Jun. 20, 2009
Protesters bash FPL's $1.3 billion rate request
By SARA KENNEDY
skennedy@bradenton.com
SARASOTA — Protesters, public officials and ordinary Joes bashed a $1.3 billion rate hike request by Florida Power & Light on Friday during a public hearing.
The request calls for an increase in base rates over two years of approximately 31 percent, beginning in January, according to statistics provided by the Office of Public Counsel, which represents customers in utility cases. That would tack an additional $12.40 a month onto the typical residential customer's bill, it said.
The company says its rate case calculations peg the monthly bill at $109 for typical residential customers, but has said that if fuel charges are figured in, the average bill would actually drop $5 per month.
In a recent interview with the Herald, Public Counsel J.R. Kelly said his office opposes the request, noting it is "just a tremendous amount of money here that ratepayers could be saddled with."
Solar contractors appeared in the back of the room during the Public Service Commission hearing, urging the panel to support a system in which big power companies would "buy back" excess electricity generated by small producers of renewable energy.
With signs that read "Jobs Now" and "Solar on Every Roof," solar contractors asked the panel to support a plan that would allow consumers who generate electricity with solar rooftop equipment, for example, to be able to sell the excess to power companies,
The contractors joined a crowd of more than 120 at Sarasota City Hall discussing Florida Power & Light's $1.3 billion request.
Among those opposing the rate hike request were an official who represented the Florida Retail Federation, with a membership of more than 9,000 merchants; a Sarasota County commissioner and the Sarasota mayor; the state president of AARP, representing senior citizens, and the vice chair of the environmental group, Manatee-Sarasota Sierra Club.
Val Gratias, of Bradenton, testified that her family's income has dropped 75 percent during the last couple of years as a result of the recession.
"A 30 percent increase would be devastating to us," she told the panel, which will make a formal decision on FPL's request next fall.
Sarasota Mayor Richard Clapp testified that city and county governments are under serious fiscal strain, are laying off employees and are facing diminishing resources.
He noted FPL seeks a 12.5 percent rate of return for its shareholders, asking "how does our pain stack up" against FPL shareholders' need for higher profits?
Helen Keller, of Bradenton, complimented the company on its service, saying she could see the justification in asking for an increase. However, she added, "My only concern is 31 percent in this economy would be very hard for people to do."
Doug Heinlen, state president of AARP, which represents senior citizens, noted that 20 percent of seniors receiving Social Security checks have no other income, and for them, such an increase would be unreasonable.
"I suggest FPL withdraw their request," he told the panel.
The rate request did have some defenders, such as Steve Block, a retiree from Palm-Aire, who said he was on a fixed income but did not mind paying another $12 a month if the quality of service were maintained.
Part of the discussion involved whether the state should institute a "feed-in tariff" system that would encourage generation of electricity through renewable sources, such as solar photovoltaic cells or wind power. Under such a system, electric utility companies would be required to buy renewable electricity at rates set by the government.
Jim Lampl, an environmental consultant and investor in small solar companies, urged the panel to back a new energy model that would penalize big users of electricity, reward conservation, and embrace the use of decentralized solar generation. t
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