Oct. 20--WEST PALM BEACH -- Florida Public Utilities Company's $8.5 million rate hike was approved by the Florida Service Commission in May, and new rates began June 4.

Under the new rates, the average monthly residential bill jumped to $30.71 from $27.02.

But the Office of Public Counsel filed a protest June 17 with the PSC on behalf of FPU's ratepayers, saying the company's revenue requirement as approved is overstated, partly due to the effects of the potential merger, said Patricia Christensen, associate public counsel.

The OPC contends the rate increase should be $7.6 million. Some of the company's projected expenditures include costs it has not incurred in the past and due to the merger, probably won't incur, Patricia Merchant, OPC's senior legislative analyst, said in testimony filed Oct. 8.

FPU's CFO George Bachman said the merger has not taken place, therefore savings which might occur cannot be applied now.

"It's a little tough to say that down the line a year and half from now, you might have some savings. If the merger passes, it will take a while to realize syngeries," Bachman said.

The rate hike as approved did not go through a full-blown rate hearing. Instead, the PSC staff looked at the filing, financial information and documentation, and the PSC voted based on the staff's recommendation.

Now, due to the OPC's protest, the process starts over. A public hearing on the rate hike is scheduled for Nov. 12 at the Florida Department of Environmental Protection, 400 N. Congress Ave., West Palm Beach.

The PSC is scheduled to hear the case Dec. 7-9, and its vote is set for Feb. 9, 2010.

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