FP&L rate hike request called

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Representatives from those agenciesdblasted FP&L’s rate increase at a public hearing Thursda y morning in Fort Lauderdale. In the first hour and a half of the only oppositionwas expressed. “We believ the amount they’re asking for is excessive. It’s just too much to ask for in today’se economic times,” said J.R. Kelly, publicx counsel with the Florida Office of Public TheJuno Beach-based utilityy is struggling to make the case that it is already the most efficiengt utility in the and it would use additional funding to reinvest in greaterf efficiency.
It has asked for approval of an increasew to its base rate that would rais the average residentialbill – 1,000 kilowatt hours by $12 per month. FP&o projects that lower fuel costs – mostly natural gas and coal will lower the average residential bill next yearby $17, so its requesrt actually won’t raise anyone’s bill. FPL has arguede that its proposal, if approved by the , will decreass the typical billby $5 monthl y or 4 percent starting on January 2010. But Kelly and othersw said Thursday morning that fuel prices are not Kelly argues the rate increase would guarantee a return on investmentof 12.
5 percent for the utility, and that every one percentg represents $130 million. “That is just too much today. Maybed five years in the future we will have aflourishinhg economy,” Kelly said, adding that his offic e supports a return of 9.5 or 10 According to Kelly, FP&Lk has already acknowledged they over-collecte $1.25 billion from rate-payers for depreciation. In openin g remarks, Marlene Santos, the utility’s vice president of custome service/sales and marketing, said customersz benefit from the utility’s strong financial position.
“When we save on our customers save onour bills,” she But speaker after speaker said the grim economy foreclosures, unemployment and dropping home valuew – made this the wrong time for rate increaseds designed to enhance the utility’s financial “We doubt they need any increasew at all to own, operatwe and maintain their system,” said Robert Sheffel Wright, an attorney with Tallahassee-based Young van Assenderp, who was speaking on behalr of the Florida Retaio Federation. The Public Service Commission, which regulates statwe utilities, will decide in mid-November whethert to grant FPL's request. The PSC will hold hearingxs again Friday, 10:30 a.m.
at the Northj Dade Regional Libraryin Miami; and 6 p.m. at the Plantationn City Council Chambers.