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AARP Members Say FPL Rate Hike Jeopardizes Florida Elders on Fixed Incomes

As PSC Technical Hearings Start, 50-plus Floridians Underscore

Rising Costs of Medication, Housing, Food Have Them Already Struggling

FOR IMMEDIATE RELEASE: Aug. 22, 2016
Media Contact:
Dave Bruns o: 850-577-5161; m: 850-228-2759; e: dbruns@aarp.org

TALLAHASSEE, Fla. — AARP Florida members and leaders said Florida Power & Light’s (FPL) proposed $1.34 billion base rate increase jeopardizes the finances of Floridians 50+, as the state Public Service Commission (PSC) begins two week of technical hearings to determine if the 23-percent hike is needed.

“Each day, our senior and elderly neighbors struggle to pay for food, medicine and housing,” said Ken Thomas, AARP member and regional volunteer leader. “With cutbacks in state and federal services and no cost of living increase from Social Security, any increase, no matter how small or large, in daily living necessities will harm our most vulnerable residents.”

The median household income for residents age 85 and older living in FPL service areas is $24,902, according to Nielsen Population Facts. For households with ages ranging 79-84, the median income is $31,715 and ages 65-74 the median income is $46,584.

(View stats: FPL service zips median income fpl service zip codes, FPL service zips median income median incomeFPL service zips median income household age)

AARP Florida claims the base rate increase is unjustified since $960 million of the requested monies will be returned to investors and, according to the company’s own filings with the PSC, it’s on target to make $1.6 billion in 2017. FPL has told the commission it wants to increase their investors’ return on equity to 12.5 percent; utility industry standard is 9 percent.

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.

“We must do whatever we can to protect our elders from unwarranted fees,” Thomas said. “Florida residents of all ages should not have to pay more just to line the pockets of FPL investors.”

Today, the PSC began its technical hearing where those who are opposing the rate hike (AARP, Walmart, the Sierra Club, the Florida Retail Federation) will get to provide expert testimony that refutes FPL’s case.

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; the AARP Bulletin, our monthly newspaper; 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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