Across Florida
What's happening on other political blogs?

Armando Olivera’

PBC Commish Koons wanted FPL rate hike

Thursday, January 14th, 2010 by Dara Kam

Palm Beach County Commissioner Jeff Koons asked utility regulators to approve Florida Power & Light Co.’s $1.2 billion rate hike, saying the utility is the county’s largest employer and needed the extra money to help the state go green.

The Public Service Commission yesterday instead slashed FPL’s rate hike to just $75 million and limited the amount of profit the Juno Beach-based utility can earn to 10 percent, far less than the 12.5 percent return on equity it sought.

“While no one – especially in the current economy – looks forward to higher electric bills, FPL’s proposed rate increase is necessary in order to make a greater investment in green technology, energy sources that will ultimately protect the consumer from uncertainties and bill fluctuations in the future,” Koons wrote in a letter to commissioners on Jan. 5 expressing his personal opinion on the rate case.

FPL President Armando Olivera said the company will immediately halt modernization projects at its Riviera Beach and Cape Canaveral power plants and cease moving forward with most of its efforts to build two new nuclear reactors at its Turkey Point facility.

He said the projects could have brought 20,000 new jobs to Florida over the next five years.

FPL vote a win for the consumer, Crist says

Thursday, January 14th, 2010 by Dara Kam

Gov. Charlie Crist took credit for the Public Service Commission’s unanimous decision yesterday to grant FPL a $75 million-a-year rate hike, just a fraction of $1.2 billion the Juno Beach-based utility had sought.

Crist revamped the panel with two new appointments, Commissioners David Klement and Benjamin “Steve” Stevens,” late last year and appointed Chairwoman Nancy Argenziano and Nathan Skop in 2007. Crist’s appointments were intended to create a more consumer-friendly commission that in previous years when PSC votes were considered to lean more toward the utilities it regulates.

Asked if he had an impact on yesterday’s vote, Crist said: “It’s fairly obvious, isn’t it?”

The FPL decision came on the heels of a vote Monday in which the PSC denied Progress Energy Florida’s $500 million rate hike request and ordered them to repay $23 million in depreciation costs to consumers.

Crist last year effectively fired two commissioners by not reappointing them and the PSC delayed votes on the issues until the new commissioners took office this month.

Crist dismissed Florida Power & Light Co. President Armando Olivera’s assertion that the PSC vote will cost the state 20,000 new jobs from projects it is now putting on hold.

“Well we certainly don’t hope for that. I don’t think that’s going to be the case. I think that what happened is the Public Service Commission is an independent body that has a duty to perform their job. I think they did exactly that,” Crist said.

FPL will halt all projects that could have created 20,000 jobs

Thursday, January 14th, 2010 by Dara Kam

Florida Power & Light Co. President Armando Olivera said that utility regulators’ decision to grant the power company just $75 million of its requested $1 billion rate hike this year will cost the state 20,000 new jobs.

He accused the Public Service Commission of politicizing the proposed rate hike, eliciting this response from Commissioner Nathan Skop at the close of yesterday’s 11-hour proceedings.

“The commission’s worked hard to decide this case on the merits in a fair and impartial manner. We were very deliberate in the decisions that we made here today. The reality is that FPL is going to have to make do in difficult economic times,” Skop said. “I know that FPL today is a strong company and no doubt will be a strong company tomorrow. They have an ambitious capital program and will invest in Florida’s future and any suggestion that that should not be achievable would be a complete falsehood.”

Read the full story here.

FPL prez: ‘Politics trumped economics’

Wednesday, January 13th, 2010 by Dara Kam

Florida Power & Light Co. President Armando Olivera accused utility reagulators risking customers’ electrical service by slashing Florida Power & Light’s requested $1.2 billion rate increase by at least 90 percent.

“Today, politics trumped economics,” Olivera told reporters as he left the meeting still in progress at about 6:15 to return to South Florida on the corporate jet.

Olivera said the Juno Beach-based utility will immediately cease modernization efforts at its Riviera Beach and Cape Canaveral plants and halt work on a new nuclear plant that would have put 20,000 workers on the job this year.

The commission decided to limit FPL’s profits to 10 percent – far less than the 12.5 percent the company sought. Commissioner Nathan Skop said that FPL’s proposal was based more on a desire to increase cash flow than on substance.

That return on equity could be bad for the state’s largest utility’s 4 million customers, Olivera said.

“It’s conceivable our reliability will be impacted,” he said.

Olivera said the panel’s votes on more than 100 items today – still underway – coupled with a denial of Progress Energy Florida’s $500 million rate hike request Monday “sends a chilling effect on anybody who wants to invest in this state.”

Olivera said it’s too soon to say whether any of the utility’s 10,499 workers will be laid off but that “we’re going to be looking at every aspect of our operation.” He said that information would be revealed to employees before anyone else.

“The most immediate thing is not to spend money we don’t have,” Olivera said.

Florida political tweeters
Video: Politics stories
Categories
Archives