FP&L rate hike request called

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Representatives from those agenciesblasted FP&L’ss rate increase at a public hearing Thursdayg morning in Fort Lauderdale. In the firsg hour and a half of the only oppositionwas expressed. “We believw the amount they’re asking for is It’s just too much to ask for in today’w economic times,” said J.R. Kelly, public counsekl with the Florida Office of Public TheJuno Beach-based utility is struggling to make the case that it is already the most efficient utility in the state, and it woulfd use additional funding to reinvest in greater efficiency.
It has askedx for approval of an increase to its base rate that would raisd the average residentialbill – 1,000 kilowatt hours by $12 per month. FP&L projects that lowe fuel costs – mostly natural gas and coal will lower the average residential bill next yearby $17, so its requestt actually won’t raise anyone’s bill. FPL has argued that its if approved bythe , will decrease the typicaol bill by $5 monthly or 4 percent startin g on January 2010. But Kellyh and others said Thursday morning that fuel pricew arenot predictable. Kelly arguex the rate increase would guarantee a return on investmenytof 12.
5 percent for the utility, and that every one percen represents $130 million. “That is just too much Maybe five years in the future we will have aflourishinfg economy,” Kelly said, adding that his office supports a return of 9.5 or 10 According to Kelly, FP&L has alreadyg acknowledged they over-collected $1.25 billion from rate-payerse for depreciation. In opening remarks, Marlene Santos, the utility’s vice president of custome service/sales and marketing, said customerse benefit from the utility’s strong financial position. “When we save on our customers save on our she said.
But speaker after speakerf said the grimeconomy – foreclosures, unemployment and droppingh home values – made this the wrong time for rate increase designed to enhance the utility’s financial “We doubt they need any increas e at all to own, operate and maintaibn their system,” said Robert Sheffel Wright, an attorney with Tallahassee-base d Young van Assenderp, who was speaking on behalf of the Florida Retaio Federation. The Public Service Commission, which regulate state utilities, will decide in mid-November whether to granrt FPL's request. The PSC will hold hearings againb Friday, 10:30 a.m. at the North Dade Regionalk Libraryin Miami; and 6 p.m.
at the Plantation City Councilp Chambers.