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PSC Delays Action on Utility Rate Increases
Wednesday, October 28, 2009 3:52 PM


(Source: Ocala Star-Banner)trackingBy Fred Hiers, Ocala Star-Banner, Fla.

Oct. 28--At the urging of Gov. Charlie Crist, the Public Service Commission voted Tuesday to postpone making a decision whether to allow Progress Energy Florida and Florida Power & Light to raise their rates.

Crist had asked the commission to hold off on a ruling to give his two new appointees time to review the cases.

Progress Energy has 65,000 customers in Marion County.

The commission voted 5-0 to make a decision on Florida Power's rate request Jan. 29 and Progress Energy's request Jan. 28. It was originally scheduled to make a ruling on Progress Energy's case Nov. 19 and on FPL's case in December.

Progress Energy is asking for a $499 million annual increase in its base rate, which, along with fuel cost reductions, translates to an average rate hike of about $8 per month per customer for 1,000-kilowatt hours.

Progress Energy, however, still has the option of raising its rates in January as it had hoped. That's because the utility already has an agreement with Florida that it can raise its rates when its current rate structure expires next year. But the utility would have to issue refunds if the commission later votes for a lesser increase or no increase at all.

Earlier this month, Crist appointed former journalist David Klement to the five-member PSC, which regulates Florida utilities. Crist also appointed Benjamin Stevens, former chief financial officer for the Escambia County Sheriff's Office, to the commission. He will take his post Jan. 4. Klement has already taken his seat.

Klement said both he and Stevens must read thousands of pages of testimony and evidence and review many hours of video to prepare for both cases.

"Granted, that's a lot of reading and viewing," Klement said. "Can we do it? I can't speak for commissioner-elect Stevens, but I can speak for myself. I believe I can get up to speed in time. I will commit to do so."

FPL, which has no customers in Marion County, is asking for a $1.3 billion annual increase in base rates, which amounts to about $12.40 per month for the first 1,000-kilowatt hours used. FPL is also planning to reduce its fuel charges to reflect current fuel costs.

Progress Energy spokesman Tim Leljedal said the utility company was disappointed in the ruling and had wanted the current commission to vote on the rate hike request as scheduled Nov. 19.

Leljedal said "given the complexity of the issue" and the months of testimony and voluminous amount of evidence, the current board was more familiar with the case and should decide it.




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