Make us your home page
Instagram

Fla. electric utilities never receive total rate increase requested, history shows

JUNO BEACH — Three years ago, Florida Power & Light Co. asked for a $1.2 billion base rate increase, but the Florida Public Service Commission granted it just $75.5 million.

That approval of a mere 6 percent of what the company sought is far below the increases some utilities have received recently.

But a look at rate cases since 1960 shows that no Florida electric utility has ever been approved for the total amount requested.

Now Juno Beach-based FPL is asking the PSC to allow it a $690.4 million base rate increase that would take effect in 2013.

"Nobody has ever received the full amount. In 1974, Florida Power Corp., which is now Progress Energy, asked for $12.3 million and got $12.1 million. That is the closest I know of anybody ever getting," said Schef Wright, a Tallahassee attorney representing the Florida Retail Federation in the FPL case set to be heard beginning Aug. 20.

FPL officials concede that the state's electric utilities have always asked for more than they were granted in base rate cases.

"A rate proceeding is similar to a trial, with information and testimony provided under oath. Like any other legal proceeding, people can have differing views, which leads to different outcomes," said FPL spokesman Mark Bubriski.

"Through the rate-making process, we focus on clearly documenting what we believe are appropriate and necessary rates so that the Public Service Commission and intervenors can review in detail," Bubriski said.

Florida Public Counsel J.R. Kelly, who represents ratepayers in the case, said FPL's rates should be reduced by $253 million in 2013. In prefiled testimony, expert witnesses testify they are recommending the company's rate of return on equity — or profits — for 2013 be set at a 9 percent midpoint, rather than the 11.5 percent it is requesting.

Fla. electric utilities never receive total rate increase requested, history shows 07/10/12 [Last modified: Tuesday, July 10, 2012 8:49pm]
Photo reprints | Article reprints

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Pinellas construction licensing board needs to be fixed. But how?

    Local Government

    LARGO –– Everyone agrees that the Pinellas County Construction Licensing Board needs to be reformed. But no one agrees on how to do it.

    Rodney Fischer, former executive director of the Pinellas County Construction Licensing Board Rodney, at a February meeting. His management of the agency was criticized by an inspector general's report. [SCOTT KEELER   |   Times]

  2. New owners take over downtown St. Petersburg's Hofbräuhaus

    Retail

    ST. PETERSBURG — The downtown German beer-hall Hofbräuhaus St. Petersburg has been bought by a partnership led by former Checkers Drive-In Restaurants president Keith Sirois.

    The Hofbrauhaus, St. Petersburg, located in the former historic Tramor Cafeteria, St. Petersburg, is under new ownership.
[SCOTT KEELER  |  TIMES]

  3. Boho Hunter will target fashions in Hyde Park

    Business

    Boho Hunter, a boutique based in Miami's Wynwood District, will expand into Tampa with its very first franchise.

    Palma Canaria bags will be among the featured items at Boho Hunter when it opens in October. Photo courtesy of Boho Hunter.
  4. Gallery now bringing useful art to Hyde Park customers

    Business

    HYDE PARK — In 1998, Mike and Sue Shapiro opened a gallery in St. Petersburg along Central Ave., with a majority of the space dedicated to Sue's clay studio.

     As Sue Shapiro continued to work on her pottery in St. Petersburg, her retail space grew and her studio shrunk. Now Shapiro's is bringing wares like these to Hyde Park Village. Photo courtesy of Shapiro's.
  5. Appointments at Raymond James Bank and Saint Leo University highlight this week's Tampa Bay business Movers & Shakers

    Business

    Banking

    Raymond James Bank has hired Grace Jackson to serve as executive vice president and chief operating officer. Jackson will oversee all of Raymond James Bank's operational business elements, risk management and strategic planning functions. Kackson joins Raymond James Bank after senior …

    Raymond James Bank has hired Grace Jackson to serve as executive vice president and chief operating officer. [Company handout]