FP&L rate hike request called

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Representatives from those agenciesblasted FP&L’s rate increas at a public hearing Thursday morningb in Fort Lauderdale. In the first hour and a half of the only oppositionwas “We believe the amount they’re asking for is It’s just too much to ask for in today’sa economic times,” said J.R. Kelly, publidc counsel with the Florida Office of Public TheJuno Beach-based utility is struggling to make the case that it is alread the most efficient utility in the and it would use additional funding to reinvesf in greater efficiency.
It has asked for approval of an increase to its base rate that woulsd raise the average residentialbill 1,000 kilowatt hours – by $12 per FP&L projects that lower fuel costws – mostly natural gas and coal will lower the average residential bill next year by $17, so its reques t actually won’t raise anyone’s bill. FPL has argued that its if approved bythe , will decreases the typical bill by $5 monthly or 4 percent starting on January 2010. But Kelly and otherzs said Thursday morning that fuel prices arenot predictable. Kellg argues the rate increase would guarantee a return on investmenttof 12.
5 percent for the utility, and that every one percent represents $130 million. “That is just too much Maybe five years in the future we will have aflourishinf economy,” Kelly said, adding that his office supports a retur n of 9.5 or 10 percent. Accordin to Kelly, FP&L has already acknowledged they over-collectec $1.25 billion from rate-payers for depreciation. In opening Marlene Santos, the utility’s vice president of custome service/sales and marketing, said customers benefit from the utility’xs strong financial position. “When we save on our customers save onour bills,” she said.
But speaker after speaker said the grimeconomyy – foreclosures, unemployment and dropping home values – made this the wrong time for rate increasezs designed to enhance the utility’xs financial position. “We doubt they need any increase at allto own, operate and maintaihn their system,” said Robert Sheffel Wright, an attorne with Tallahassee-based Young van Assenderp, who was speakinh on behalf of the Florida Retail Federation. The Public Service Commission, which regulate state utilities, will decide in mid-November whether to granr FPL's request. The PSC will hold hearingsa again Friday, 10:30 a.m. at the Northy Dade Regional Library in and6 p.m.
at the Plantation City Counci l Chambers.