SARASOTA - Florida Power and Light is asking the Florida Public Service Commission for a rate increase - but one that FPL claims would actually result in a customer's bill decreasing.
The Florida Public Service Commission has to approve the rate hike, and Friday they hosted a public hearing in Sarasota. And many of the people that showed up even supported the rate increase.
"Renewable energy jobs now; not ten years from now." Solar power advocates cheering for a Florida Power and Light rate hike were among those who packed into the City of Sarasota commission chambers.
"The reality is, we are projecting total bills to go down starting in January 1st, 2010. And that's because of the investments we've made in our infrastructure to make it more fuel-efficient," says FPL's Jackie Anderson.
How can rates go down if 4.5 million customers in Florida would end up seeing an increase on their base rate by more than 30%? FPL says the increase will allow them to invest in energy efficiency.
More than half of a customer's bill is fuel charges. FPL says with more energy-efficient power plants, less fuel is used...and your bill will actually drop by about $5. "It's basically like investing in a new air conditioner for your home; there is an investment on one end, but at the same time, overall there is going to be significant benefits in savings," says Anderson.
More than fifty people signed in to speak out on the issue, from state representatives like Keith Fitzgerald to your average FPL customers.
But not everyone meeting considered the hike to be justified. "This is the largest rate increase that we've ever experienced in the state of Florida from any utility -- $1.3 billion," says Earl Poucher of the Office of Public Counsel, which is against the rate increase. "We were created by the legislature to represent the customers before the Public Service Commission. The company has its attorneys...we are the attorneys for the citizens."
The counsel believes FPL can't predict the future costs of fuels, and that this $1.3 billion base rate increase has nothing to do with those costs. "It's very misleading to say this is a rate decrease. The big factor there is fuel costs, and this is not a proceeding about those fuel costs," says Poucher.
A decision about the increase will not be made until November. If any rate increases are approved, they will go into effect on January 1st 2010.
