FPL exec flew on corporate jet to ask panel for $1.3 billion
by Dara Kam | September 17th, 2009
Florida Power & Light Group Chief Financial Officer Armando Pimentel flew to Tallahassee on the corporate jet to appear before a panel considering the utility’s proposed $1.3 billion rate hike.
Pimentel spent the day being grilled about the Juno Beach-based company’s request and about its corporate jets. Commissioners and opponents of the rate hike demanded answers about why ratepayers should foot the bill for FPL executives, their wives and their guests to jetset to places like Martha’s Vineyard, Las Vegas and the Louisville during the Kentucky Derby.
After nearly 10 hours of testimony, attorney Jon Moyle, who represents the Florida Industrial Power Users Group, asked the CFO about traveling to Tallahassee on the corporate plane.
“Did you have a concern when you decided to take the corporate aircraft up to provide your testimony that that might send a bad signal or a bad message to fly on the corporate aircraft up here to provide testimony to support a $1.5 billion rate increase?” Moyle wanted to know.
Pimentel wasn’t flustered.
“I absolutely did think about that,” said Pimentel. He also considered his schedule and the uncertainty of how long he would have to stay in Tallahassee for the hearing, which ran until 9:30 p.m. last night.
“I did not know at that point whether I would be back Thursday, today…so taking my schedule and the commission’s schedule into account, I made the decision,” Pimentel answered.
Moyle’s questions were reminiscent of the outrage generated by General Motors, Ford and Chrysler executives who traveled by corporate jets to the nation’s capital to ask for $25 billion in public funds to bailout their flailing auto companies.
It’s unclear if the charges for Pimentel’s flight will be allocated to FPL customers, who would see a $11.69 base rate increase if the panel approves it.
Tags: Armando Pimentel, energy, Florida Power & Light, FPL, Jon Moyle, PSC, Public Service Commission, utilites
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September 17th, 2009 at 7:51 pm
Why doesn’t the panel take a look in the FPL parking lots at the number of Mercedes and BMW’s parked there and review the “extraordinary” number of people employed who are receiving six figure salaries. The facts speak for themselves.
September 17th, 2009 at 8:31 pm
[...] Across Florida What’s happening on other political blogs? « FPL exec flew on corporate jet to ask panel for $1.3 billion [...]
September 17th, 2009 at 8:50 pm
There are so many more incidents like this.No one blinked when one of the execs took the corporate helicopter from North Palm Beach offices to PBI to meet the corporate plane to go who knows where. Stated he did not want to sit in traffic for the 15 min ride. Have U ever seen the compound at night? 2 workers on premises with a security guard and the place is lit up like Las Vegas. Before u ok raises for them…curtail waste.
September 17th, 2009 at 9:03 pm
He flew on the corporate jet because of his schedule!?!
Wow, I wonder what else was on his schedule that might conflict with him asking for $1.3 BILLION?
Next time, try blocking out a full day or two or meetings when you ask for over a billion dollars.
September 17th, 2009 at 9:07 pm
Obviously he is a very, very important person running a business that has a guaranteed return and a captive customer base. Think how much lower our rates would be if he flew coach and they got rid of that stupid helicopter.
September 17th, 2009 at 9:32 pm
HOW ABOUT SPREADING THE WEALTH WITH ALL THE EMPLOYEES THAT ACTUALLY KEEP THE SYSTEM RUNNING AND IN GOOD REPAIR. GIVE YOUR BARGAINING UNIT EMPLOYEES A CONTRACT THAT DOES NOT INSULT THEM. SHOW SOME APPRECIATION INSTEAD OF ABUSING THEM JUST BECAUSE YOU CAN. STOP TAKING ADVANTAGE OF THE ECONOMIC CRISIS THIS COUNTRY IS IN AND DO THE RIGHT THING.
September 17th, 2009 at 9:47 pm
What a Joke these scum bags are. if they get the increase someones on the take. Private jets, BMW’s, mercedes as company cars? Exotic vacations are you kidding me….. Gov. Christ better not let this happen. These jerks are living large on our dime, its time to end this corruption. We citizens need to fight back by ALL means against FPL.
September 17th, 2009 at 9:49 pm
You know, if this were a private business competing in the open market, it would be one thing. But this company is handed a government monopoly. Dammit, where are the Republicans denouncing this crap!!
This is total corporate welfare. These folks dont have to compete. They dont have any challengers. They get to rape us all on our bills, increase their guaranteed return on investment, fly all round the country, spend money on themselves. All under the guise of a monopoly. It makes me sick how they are gaming a system.
Where are our fearless bigtime leaders like Adam Hasner and Carl Domino? our so-called conservatives like Jeff Atwater?
S_I_L_E_N_T
Pathetic.
September 17th, 2009 at 10:27 pm
I sent comments up to the PSC stating why I did not believe F P & L should get approval for yet another rate increase. Within days I received a response from FLORIDA POWER AND LIGHT. That’s how cozy the PSC is with the utility companies. As soon as anyone speaks up the hand the information over to F P & L. I don’t really care, I wish more people would email the PSC and let them know how strongly they object to this unnecessary increase.
September 17th, 2009 at 10:37 pm
Arrogance beyond belief.
Sell the jets, sell the Helicopters, have ALL OFFICERS move to Juno Beach.
How important does this Jack-A…think he is ….
He could not show up for work ever again, and who would notice…who’s lights would go out?
Our Govt and Special Interests are SCREWING US again and again and again…we must do something about this.
September 17th, 2009 at 10:44 pm
You whiners seem to forget that a large portion of your electric bill is TAXES and FEES put in by the goverment.
The cost of a stupid jet amounts to pennies per year per customer. Just like your home phone and cell phone, govenment taxes and fees amount to about 30% of the bill. My home phone has about $12 in taxes and fees on a $30/month plan.
Massive taxes on oil and other fuels is passed on to you.
Electricity is fairly cheap considering how vital and necessary it is in making our lives so much better. My bill is usually $300-$350 a month. Where can you get so much use for $10 a day? Heating your water for showers, keeping your food fresh, your homes air-conditioned, your computers running, TVs on, lights, laundry, cooking,etc.
We are truly spoiled with all of lifes luxuries made possible by affordable abundant electricity.
When the liberals in government stop blocking our ability to drill here or build more nuclear plants, we will get cheaper fuel, and even cheaper electric bills.
September 17th, 2009 at 10:51 pm
And just wait until Obamas Cap and Tax scheme goes through. Another $1,750 per year tax increase on gas and electricty.
It’s FPL’s $11.69/month that gets you pissed off?
Obamas tax increase on energy will cost you at least 10 times that amount!!
Get a clue.
September 18th, 2009 at 12:31 am
[...] Florida Power & Light Co.’s proposed $1.3 billion rate hike hearing fizzled out at 10:55 p.m. this evening after a 13-hour marathon of testimony from FPL CFO Armando Pimentel. [...]
September 18th, 2009 at 12:58 am
[...] FPL flies corporate jet to ask for massive rate hike: These people learn nothing and they care about nothing but their own money and power. Don’t [...]
September 18th, 2009 at 8:52 am
Don’t be stupid “No longer shocked”. What’s shocking is how the people on here are so obsessed with something that won’t actually change their bill.
FPL could take away the corporate jet and it would have zero impact on your bill. The appearance may look bad but it doesn’t affect your pocketbook because you’re talking about $10 million out of billion and billions of dollars per year. It amounts to nothing.
Amen Beano. Don’t forget the fuel costs outside of the electric company’s control being a large portion of the bill too.
Corporate jets or not, rate increase or not, we would still have the lowest bill in the state. So when did South Floridians start feeling so entitled to free electricity?
September 18th, 2009 at 9:34 am
Beano and “get over yourselves”,
You are correct that $10M is a relatively small amount of money out of the FPL budget, but as an investor who spends time evaluating whether a company should receive venture capital, I can tell you that one of the first things I look at is overhead.
It is the very rare case where a company has one instance of excessive overhead. I would bet my bottom dollar that if FPL executives use their corporate aircraft so routinely, there are multiple areas of overspending that probably run into the tens of millions of dollars.
I suppose now that bureaucrats in government toss around trillion dollar figures without a second thought, it is easy to dismiss $10M as pocket change. But when that pocket change is being paid to a government protected monopoly by tax and ratepayers, I think people have a reason to protest.
As for oil prices being “out of the control of FPL”, that is exactly part of my problem with the rate increase.
Last year, oil hit $147/barrel. Now it is trading at about $70/barrel. That doesn’t justify a rate hike.
My other problem with FPL request is that it is based on an assertion that a rejection of its request will lead to a reduction in FPL’s credit rating, eventually leading to higher prices for consumer.
But one of the benefits that investors have with a utility like FPL is the knowledge that it operates in a government-protected market.
This means that FPL is very-low risk to banks and I doubt that a rejection of the rate hike would really diminish FPL’s credit rating. If it did, steps could then be taken to resolve the problem.
I’m willing to bet that this rate increase was discussed back when there were concerns that oil would reach $200/barrel, but that FPL thought they would have a stronger chance getting it through during a non-election year.
I don’t think South Floridians want free electricity. But they do want a fair shake. They want to know that their money is being spent wisely and that unnecessary rate hikes aren’t imposed. And that’s seems reasonable to me.
September 18th, 2009 at 9:52 am
[...] discussion of the executive’s flights revealed that FPL Chief Financial Officer Armando Pimentel flew to Tallahassee on the corporate jet, earning a rebuke from Jon Moyle, a lawyer for the Florida Industrial Power Users Group that [...]
September 18th, 2009 at 1:51 pm
Yes, the cost of the FPL corporate jet only amounts to pennies per year per customer – but what if the shoe was on the other foot? We’re not looking for free electricity but can FPL deny that the company is very “top” heavy when it comes executive salaries and just “how many” levels of executives do they really need?