Gov. Charlie Crist’s recent threats not to reappoint two Public Service Commissioners if they vote for a proposed $1.3 billion Florida Power & Light Co. rate hike could scare investors away from investing in the utility, an expert testified today.

Bill Avera, a financial analyst hired by FPL, said that the regulatory climate in Florida had changed under Crist and that credit rating agencies, including Moody’s and Fitch, were paying attention.

“The governor cautioned this commission to regard carefully the outcome of this case and even suggested that the tenure of the reappointment of some of the commissioners might be in question based on the outcome of this case. That is unusual. That is the kind of political change that rating agencies are very concerned about,” Avera told the panel during a marathon hearing slated to last 12 hours today.

Opponents of the rate hike grilled Avera throughout the day but those comments temporarily quieted attorney Sheffel Wright.

“Surely you don’t think that Gov. Crist wants the commission to do anything that would render FPL unable to cover its debt service?” Wright asked after a long pause.

“It doesn’t matter what I think,” replied Avera. What matters is what the credit rating agencies believe, he said.

“I think investors see this as a change in posture in Florida. The long tradition in Florida is one where the commission has been free to exercise its expertise in making decisions that it thinks serve the customers long term. When the political leaders insert their judgment, that’s the kind of thing that scares investors,” Avera said.
.