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Customers Criticize Size, Timing of Proposed FPL Rate Increase
Tuesday, June 23, 2009 9:51 PM


(Source: The Orlando Sentinel)trackingBy Ludmilla Lelis, The Orlando Sentinel, Fla.

Jun. 23--DAYTONA BEACH -- Florida's Public Service Commission heard both praise and sharp criticism for Florida Power & Light during a Tuesday hearing in which customers sounded off about a proposed rate increase.

The state's largest utility, which has 4.5 million customers -- including half a million in Central Florida -- is asking the commission's approval to raise its base rate by 30 percent over the next two years, increasing revenue by up to $1.3 billion a year. The base rate is just one part of the electric bill.

The proposal would increase the monthly bill for a 1,000-kilowatt-hour customer by $15.24 over the next two years, though that increase could be offset by an expected decrease in the fuel charge.

More than a dozen speakers criticized FPL for proposing the increase during such tough economic times.

Nadine Anderson, a Daytona Beach minister, told the commission she spoke for the disabled, the unemployed and retirees on fixed incomes who can't afford to pay any more for their electricity.

"I think FPL does an excellent job, but I am appalled," Anderson said. The company, she said, "must economize with the rest of us. Let [FPL] come back in four or five years, and then maybe we'll have some money."

Lowell Wynn of Daytona Beach Shores said the proposed increase amounted to "price gouging."

"Asking for 30 percent is nothing short of outrageous greed," Wynn said. "Since FPL doesn't have competition, we can't go anywhere else. We're helpless."

Several people, however, praised the company for its reliability and its school and community programs.

FPL Vice President of Customer Service Marlene Santos said the additional revenue would help pay for infrastructure improvements, storm readiness, solar energy projects and fuel-efficiency upgrades for older plants. She pointed out that FPL customers pay the lowest rates among customers of the state's major utilities and that the utility hasn't had a base-rate increase since 1985.

The five-member commission will debate the rate increase at hearing in August. In recent months the commission has approved rate increases amounting to 11 percent for Progress Energy and 13.7 percent for the Orlando Utilities Commission.

The commission will hold another hearing at 9 a.m. Wednesday (June 24) at the Brevard County government center in Viera.

Those who can't attend hearings can comment by writing the Office of Commission Clerk, 2540 Shumard Oak Blvd., Tallahassee, FL 32399-0850, or e-mailing the commission at contact@psc.state.fl.us.

Ludmilla Lelis can be reached at llelis@orlandosentinel.com or 386-253-0964.

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Copyright (c) 2009, The Orlando Sentinel, Fla.

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