PSC Holding Public Hearings on FPL's $690 Million Rate Increase
Florida Power & Light (FPL) has asked the Public Service Commission (PSC) for a $690 million rate increase. As Florida’s largest utility, this rate increase will affect 8 million Floridians.
The PSC is holding a series of public meetings around the state where they want to hear from you. Attend one of the meetings in your area to voice your concerns over FPL’s rate increase and ask the Public Service Commissioners to closely examine this request and protect the interest of the ratepayers.
Access the full schedule of the PSC’s public hearings on FPL’s rate increase HERE.
Not able to attend a meeting in person? Email the Public Service Commissioners with your concerns HERE.
FPL has a monopoly on its services – they have no competition and have a guaranteed return on investment currently of 10 percent. FPL wants the PSC to approve an 11.25% rate of return, which according to their CFO is necessary “to continue to deliver value to its customers” and a “fair return” to investors.
However, shareholders of FPL’s parent company NextEra received a 22% return in 2011, and their profits increased 72% in the first quarter of 2012. This certainly begs us to ask – why is a rate increase needed?
FPL’s President says that the company has a history of tightening its belt, but they continue to increase costs and salaries, including CEO compensation of $14.8 million in 2011! This doesn’t seem like belt-tightening to us.
Florida Public Counsel J.R. Kelly, whose job is to represent the citizens at PSC rate request hearings, has said that FPL’s request is “absolutely ridiculous.”
At a time where the average consumer is lucky to receive one percent return on their savings, if they have any savings at all, it is outrageous that FPL can ask for such an unfounded and egregious rate increase. It’s time for FPL to be good stewards and watch out for their customers, not just their shareholders.
Some resources for additional information on this case:
Recent article on the rate increase from the Palm Beach Post
Recent article on NextEra’s Executive Compensation from South Florida Sun-Sentinel
Recent article on the rate increase from the Bradenton Herald
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