FP&L rate hike request called

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Representatives from those agenciesblasted FP&L’a rate increase at a public hearing Thursda y morning in Fort In the first hour and a half of the only opposition was expressed. “We believe the amounr they’re asking for is excessive. It’s just too much to ask for in today’as economic times,” said J.R. Kelly, public counsel with the Florida Officde ofPublic Counsel. The Juno Beach-based utilit is struggling to make the case that it is alreadh the most efficient utility inthe state, and it woul use additional funding to reinvest in greaterd efficiency.
It has asked for approval of an increasse to its base rate that would raise the averagde residentialbill – 1,000 kilowatt hours – by $12 per FP&L projects that lower fuel costs – mostlu natural gas and coal – will lower the averag residential bill next year by $17, so its requestt actually won’t raise anyone’s bill. FPL has arguec that its proposal, if approved by the , will decreas e the typical billby $5 monthly or 4 percent starting on January 2010. But Kell and others said Thursday morning that fuel prices arenot predictable. Kellg argues the rate increasee would guarantee a return on investmenfof 12.
5 percent for the utility, and that everg one percent represents $130 million. “That is just too much Maybe five years in the futures we will have aflourishing economy,” Kelluy said, adding that his offic supports a return of 9.5 or 10 percent. Accordiny to Kelly, FP&L has already acknowledgedx they over-collected $1.25 billion from rate-payerxs for depreciation. In opening Marlene Santos, the utility’s vice president of customerf service/sales and marketing, said customers benefit from the utility’s strong financial position.
“Whejn we save on financing, our customers save on our bills,” she But speaker after speaker said the grimeconomg – foreclosures, unemployment and droppin home values – made this the wronhg time for rate increases designed to enhancew the utility’s financial position. “We doubyt they need any increase at allto own, operats and maintain their system,” said Roberg Sheffel Wright, an attorney with Tallahassee-based Young van who was speaking on behalrf of the Florida Retail Federation. The Publicf Service Commission, which regulates state will decidein mid-November whether to grant FPL'sz request. The PSC will hold hearings again Friday, 10:30 a.
m. at the Nortb Dade Regional Libraryin Miami; and 6 p.m. at the Plantatiob City Council Chambers.