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PSC, FPL vow to investigate anonymous claims of fraud

By Mary Ellen Klas, Times/Herald Tallahassee Bureau
In Print: Tuesday, February 9, 2010


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TALLAHASSEE — State utility regulators and Florida Power & Light's parent company said Monday that they would investigate anonymous allegations that FPL managers broke the law and committed fraud by forcing employees to provide inaccurate and misleading information to regulators and shareholders.

The allegations were made in two letters written by people who claim to be disgruntled FPL employees and sent to FPL Group chairman Lew Hay, members of the company's board of directors and the Florida Public Service Commission.

The letters, dated Feb. 3 and Jan. 20, include no specific examples but named certain FPL vice presidents who allegedly forced employees to "manipulate facts, data and information, and present half-truths" to securities regulators and the PSC during FPL's just-completed rate case. The PSC in January granted FPL only $75 million of the $1.3 billion it sought in higher base rates.

Hay responded Monday in an e-mail to all FPL Group employees saying the company had conducted an internal investigation of about 150 employees after the Jan. 20 letter and "identified no evidence supporting any of the generalized claims made by the anonymous letter."

He said that in light of the more specific allegations of fraud in the Feb. 3 letter, the company had hired an outside law firm, Carlton Fields, to conduct an internal investigation and determine whether they claims "have any basis in fact."

PSC chairwoman Nancy Argenziano said the PSC had received the letters Monday and would "look into them."

She said the PSC would ask Florida Attorney General Bill McCollum to help decide whether immunity can be offered to any FPL employees who come forward.

Hay vowed that there would be no retribution, and urged employees who have "evidence of an FPL Group company providing false or misleading information" to contact the Carlton Fields law firm or the company's internal ethics hotline.

Mary Ellen Klas can be reached at meklas@miamiherald.com.


[Last modified: Feb 08, 2010 09:43 PM]

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