Lisa Simpson
Aug 25,2009
In: Finance

Florida Power & Light Wants Increase in Rate

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It is confusing that at a critical time like this when consumers can hardly pay their current bills FPL is trying to hike rates calculating to $1.3 billion.

FPL argues that it has to keep the power grid ship shape and rake in profits for the company. Its opponents are saying that this monopoly business has allowed the company to hoard the money taken from customers. It is now over reaching itself crying about the future requirements.

The bottom rate that the company is trying to impose will force the cheapest home consumer to pay an extra $12.40 per months from 2010. For commercial users the rate will shoot up by a minimum of 30% and may climb to 57% for the big industrial units.

The officials of FPL content that the suggested increase in rates and fees for services rendered would be enforced in two stages. Its plans might be softened if fuel costs go down in the following year. The second phase will kick off from 2011 when more additions will be made to the base rate as in that year the apprehension is that fuel costs will spike.

The Florida Public Service Commission will hold hearings pertaining to the request of FPL relating to the return rate on equity of 12.5% and the extra collection of depreciation – the amount that it owes to customers.

FPL based in Juno Beach is largest electricity provider of Florida serving 4.5 million clients in 35 counties stretching from Jacksonville in the north to Miami covering both the coast lines.

The company argues that its bills will go down in 2010 because of anticipated lower fuel costs. This should offset the request they have made. On a typical bill there will be $5 reduction said Jackie Anderson speaking on behalf of the firm.

Many of the clients like 69 year old G.W. Drowne who has retired from the navy thinks that the timing could not have been worse. He and his wife have a disabled child living with them. Their daughter with three children has also moved in after she got laid off. This means their electric consumption will increase. Drowne bemoaned, “My wife and I are retired. We are on a fixed income. The country as a whole is having a problem. Give us a break. Give the