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AARP AARP States Florida Press

AARP Florida Says FPL Rate Increase is Not Sufficiently Justified, Files Petitions from 7,000 Ratepayers

For Immediate Release
June 29, 2016

Media Contact:
Jessyca Sosa, 954.646.4584, jsosa@aarp.org

Miami, Fla. — AARP Florida today said that Florida Power & Light’s request of up to 12.5 percent return on investment is more about increasing the company’s profitability than FPL providing ratepayers with safe, adequate and reliable service.

“AARP believes Florida Power & Light (FPL) is already making a large corporate profit,” said Zayne Smith, AARP Florida Associate State Director for Advocacy. “The facts don’t justify asking consumers to add even more profit for FPL.”

Smith also asked the Florida Public Service Commission (PSC) to accept some 7,000 petitions from Florida ratepayers, many of whom are members of AARP, and include the petitions in the official record of the rate case.

Smith’s comments came as the PSC is completing nine public hearings across the state. AARP members and other older consumers have appeared throughout the state, asking the commission not to approve the rate increase. If state regulators approve the rate increase that FPL requests, the utility company would earn a “return on equity,” or corporate profit, of up to 12.5 percent.

“At a time when ordinary Floridians can only dream about earning a return of 2 percent on their certificates of deposit, FPL is asking too much from ratepayers,” said Monica Stynchula, AARP Florida’s acting volunteer state president. “Veterans and Social Security recipients have not seen an increase in benefits for the past two years. Increasing a customer’s base utility bill adds insult to injury at a time when FPL is already making plenty of money.”

The PSC offers complete transcripts of the public hearings.

FPL’s requested rate increase is one part of a complex and multi-layered proposal. Over three years, the utility company wants to increase a typical ratepayer’s monthly bill by $13.28, which equals a 23-percent increase in the “base rate,” or the basic electricity charge. Part of the proposal is a $2 fixed charge per household that is unrelated to electric usage--a charge that would applied before a customer even turns on a light switch.

In addition to the base rate increase, FPL is seeking to increase the storm cost recovery rider that would be on top of other monthly fees.

Hearings in South Florida constitute the last chance for FPL customers to have their voices heard on the proposed rate increase. The PSC will hold a formal hearing beginning Aug. 22 in Tallahassee, considering public testimony from the public hearings as well as technical information from staff, the utility company’s experts and opponents’ expert witnesses, including AARP’s. The PSC will make its final decision before year’s end. Should FPL’s request be granted, the new rates would take effect Jan. 1, 2017.

AARP
AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, published bimonthly: AARP Bulletin, our monthly newspaper; AARP Segunda Juventud, our bimonthly magazine in Spanish and English; NRTA Live & Learn, our quarterly newsletter for 50 + educators; and our website, www.aarp.org . AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

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