2 min read
Florida Power & Light (FPL) has recently asked the Public Service Commission (PSC) to allow a raise in rates on over 4.8 million Florida customers by 23.7% within the next four years. The $1.3 billion increase is designed to reward FPL’s shareholders with substantially higher profits.
FPL contends that since 2009, it has delivered stable and inexpensive power to Florida customers, and that it must charge more to offset an increase in expenses and also to accommodate for population growth.
Eric Silagy, president and CEO of FPL, says in a press release, “We are committed to delivering our customers exceptional value for their money and will continue to make smart investments that will further improve service for customers and help keep costs down.” FPL claims the increased rates are needed to pay for nearly $16 billion the utility has invested, or will invest, from 2014 through 2017 to improve electric service reliability.
But Some Details Seem Suspicious
While the PSC has the final say over the rate request, the current panel of governor-appointed commissioners has consistently sided with FPL on its requests, both controversial and standard. The last time the PSC didn’t agree with the FPL (back in 2009), FPL sent their officials and lobbyists to pressure the Legislature to replace four of the five commissioners who voted against them. What did the PSC deny them? A $1.47 billion rate increase.
Part of FPL’s request would go towards a new gas-burning power plant that’s oddly named the “Okeechobee Clean Energy Center.” This new gas power plant still needs approval by the PSC, but FPL is so confident that their energy plant will pass under Gov. Rick Scott’s cabinet, that they went ahead and started planning how to give it PSC-approved money.
It is interesting to note that the request comes promptly after the company’s spending more than $3.4 million in campaign funds preventing the solar industry from expanding by mounting a campaign to keep a constitutional amendment off the November ballot that would have lead to greater opportunity for a competitive solar market in Florida. Further, the utility-backed a counter amendment that’s designed to force a monthly surcharge on solar PV.
How Will This Affect You?
If the request is approved, the increase will lock in base rates for four years and the typical residential customer bill of 1,000 kilowatt hours will increase by about $13 a month, $156 per year. If your bill is larger than average, your increase will be higher.
Don’t Let the Monopoly Power Companies Win!
The FPL’s request just goes to show you how energy rates are constantly rising. This is just the start of increasing utility costs. Now is the time for solar. You’ll lock in low and predictable solar energy rates and know exactly what you’ll be paying each year. Superior Solar can provide you solar PV systems for less than utility-fed electricity and help you figure out your financing options. Contact us on our website or call 407.331.9077 to speak with one of our Energy Specialists, directly.
