The Florida Public Service Commission (PSC) held hearings in Inverness on Friday morning followed by a hearing in Ocala on Friday afternoon, neither of which offered any real support for the Progress Energy rate hike request from the speakers. (See my previous article about this.)
Progress Energy has requested permission from the PSC to raise its base rates by over 30%. Base rates are not related to pass-through charges for special or extraordinary expenses, like the conversions and upgrading of plants in Crystal River and Bartow. Pass through charges are separate and specific to the costs involved. The base rate relates to the basic cost of delivering the service.
The hearings did not concern the rate hike already imposed on consumers to pay for start-up costs of the proposed Levy County nuclear plant. That rate hike was mandated by the Florida legislature and the PSC was not permitted to oversee or authorize it. However, that particular rate hike was mentioned repeatedly in the hearings.
Most of the speakers at the Ocala hearing gave the idea of a rate hike a resounding “no.”
Two speakers left the crowd scratching their heads. One was the director of a Levy County business council. She said nothing about the proposed rate increase, simply expressing gratitude on behalf of the Levy council to Progress Energy for investing in their community. When asked by members of the PSC if she or the council was expressing an opinion on the rate hike request, she demurred saying that she was only authorized to make the statement that she had read. She said she would have to check with the council members to see how the council would respond.
The other was Pete Tesch, head of the Marion County Economic Development Corporation, who groped for a reason to support the increase, acknowledging the hardships facing the community with 12.6% unemployment while thankful for Progress Energy’s support of community endeavors. It seemed he wanted the PSC and the community to think of this rate hike as an ”investment” of some sort that would in some unknown way accrue to the community’s benefit as well as Progress Energy’s. His remarks were so vague and meandering that the crowd didn’t know how to respond, politely offering a brief, tepid applause.
The final speaker was John Russell, a two time Democratic congressional candidate who lost both attempts at unseating incumbent Ginny Brown-Waite, and who may try yet again in 2010. Russell made good points about the need to de-centralize power production and focus on alternate sources, solar in particular, but his sneering, acerbic and combative tone effectively negated any positive contribution his testimony may have offered.
Also present at the hearing, making statements in opposition to the rate hike request, were representatives of the Office of Special Counsel, the Florida Attorney General, and the Florida Retail Federation.
Republican State Senators Mike Fasano and Charlie Dean also spoke in opposition to this rate hike. Both also alluded to the Levy nuclear plant rate hike as not being what was expected or desired in the enabling legislation in 2006. However neither of them offered any hint that they would seek to amend or reform the law as it stands.
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