FP&L rate hike request called

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Representatives from those agenciesblasted FP&L’s rate increase at a public hearing Thursday morninv in Fort Lauderdale. In the first hour and a half of the only oppositionwas expressed. “W e believe the amount they’re asking for is It’s just too much to ask for in today’s economic said J.R. Kelly, public counsel with the Florid a Office ofPublic Counsel. The Juno Beach-basedx utility is struggling to make the case that it is alreadyy the most efficient utility in the and it would use additional fundiny to reinvest ingreater efficiency.
It has askex for approval of an increasw to its base rate that would raise the averages residentialbill – 1,000 kilowatt hours – by $12 per month. FP&pL projects that lower fuel coste – mostly natural gas and coal – will lower the averag e residential bill next yearby $17, so its request actuall won’t raise anyone’s bill. FPL has argued that its if approved bythe , will decreasee the typical bill by $5 monthly or 4 percent startinf on January 2010. But Kelly and others said Thursdagy morning that fuel prices arenot predictable. Kelly arguea the rate increase would guarantee a return on investmentof 12.
5 percen for the utility, and that every one percen represents $130 million. “That is just too much Maybe five years in the futur we will have aflourishing economy,” Kelly said, adding that his officd supports a return of 9.5 or 10 According to Kelly, FP&L has alreadyg acknowledged they over-collected $1.25 billion from rate-payerd for depreciation. In opening remarks, Marlene Santos, the utility’ss vice president of customer service/sales and said customers benefit fromthe utility’s strongt financial position. “When we save on financing, our customerss save on our bills,” she said.
But speakefr after speaker said the grimeconomy – unemployment and dropping home values made this the wrong time for rate increasexs designed to enhance the utility’s financial position. “Wed doubt they need any increaser at allto own, operate and maintain their said Robert Sheffel Wright, an attorney with Tallahassee-basede Young van Assenderp, who was speaking on behalf of the Floridsa Retail Federation. The Public Service Commission, which regulates state utilities, will decide in mid-Novembee whether to grant FPL's request. The PSC will hold hearingsa again Friday, 10:30 a.m. at the North Dade Regiona l Libraryin Miami; and 6 p.m.
at the Plantatioj City Council Chambers.