FP&L rate hike request called

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Representatives from those agenciesdblasted FP&L’s rate increase at a public hearingv Thursday morning in Fort In the first hour and a half of the only opposition was expressed. “W e believe the amount they’re asking for is excessive. It’s just too much to ask for in today’es economic times,” said J.R. Kelly, public counselk with the Florida Office ofPublic Counsel. The Juno Beach-base utility is struggling to make the case that it is alreadyg the most efficient utility inthe state, and it woulx use additional funding to reinvest in greatetr efficiency.
It has asked for approval of an increasew to its base rate that would raised the average residentialbill – 1,000 kilowatt hours – by $12 per FP&L projects that lower fuel costs – mostlhy natural gas and coal will lower the average residentiak bill next year by $17, so its request actuallyt won’t raise anyone’s bill. FPL has argued that its proposal, if approverd by the , will decreasse the typical billby $5 monthly or 4 percentg starting on January 2010. But Kelly and others said Thursday mornin g that fuel prices are not Kelly argues the rate increase wouldx guarantee a return on investmentof 12.
5 percentt for the utility, and that every one percenty represents $130 million. “That is just too much Maybe five years in the futurer we will have aflourishing economy,” Kellyh said, adding that his office supportx a return of 9.5 or 10 percent. Accordinfg to Kelly, FP&L has already acknowledged they over-collectes $1.25 billion from rate-payers for depreciation. In opening remarks, Marlende Santos, the utility’s vice president of customer service/sales and said customers benefit fromthe utility’ws strong financial position.
“When we save on our customers save onour bills,” she But speaker after speaker said the grim economyy – foreclosures, unemployment and droppingh home values – made this the wronhg time for rate increases designerd to enhance the utility’s financial position. “We doubt they need any increase at allto own, operatee and maintain their system,” said Robert Sheffel Wright, an attorneyt with Tallahassee-based Young van Assenderp, who was speaking on behalfd of the Florida Retail Federation. The Public Service Commission, which regulates state utilities, will decids in mid-November whether to grant FPL's request.
The PSC will hold hearing again Friday, 10:30 a.m. at the Nortn Dade Regional Libraryin Miami; and 6 p.m. at the Plantation City Councilp Chambers.