The Florida Public Service Commission Tuesday reached a settlement with Florida Power & Light Co. that will allow the electric company to charge its ratepayers more -- though not as much as the company originally had sought. The increase will bring in an additional $75.5 million, but FPL's base rates will be frozen for the next two years.
The settlement was agreed upon by both parties in August. It was delayed, however, because of a pending court case in which FPL has asked Commissioner Nathan Skop to recuse himself from all matters involving the electric company. Skop, FPL claims, is biased against the company.
The 1st District Court of Appeals has stayed all matters involving FPL until the case is settled, but it released jurisdiction back to the PSC last week for the sole issue of agreeing to the settlement.
Attorney General Bill McCollum believes everybody has won.
McCollum issued this statement Tuesday on the settlement: I commend the Public Service Commission and FPL for adopting this important settlement today. We have worked for many months with the Office of Public Counsel, the Retail Federation, the Florida Industrial Power Users Group, the Federal Executive Agencies, the South Florida Hospital and Healthcare Association, and the Associated Industries of Florida to reach this settlement which will provide rate stability for the FPL customers by freezing basic rates through 2012. This settlement benefits all parties, and I am pleased to see it approved."
FPL originally sought an increase of $1.2 billion, but reached a settlement agreement with Florida in August for the lower rate hike for its 4.5 million customers in the state. The lawsuit, however, prevented the PSC from officially sanctioning the deal.
Last month, commissioners petitioned the court to allow them to discuss the settlement, and although FPL representatives didnt assert their position at the time, the company ultimately did not object. The PSC has been waiting to address the issue since August.
Im pleased that it went through. Had I known this would take three months I wouldve petitioned the court three months ago, said PSC Chairman Art Graham.
FPL officials confirmed Monday they did not oppose the PSCs petition.
Myriad other items involving FPL, however, will be delayed again, having been deferred from last months meeting. A plan to develop energy efficiency goals for FPL, a petition by the company to sell securities in 2011, and a review of FPLs earnings must wait.
Because the matter is still pending in the courts, Skop has declined to discuss the matter or related issues.
In September, Gov. Charlie Crist, then in the middle of an independent U.S. Senate bid that ultimately failed, named Tampa attorney Julie Brown as Skops replacement. Crist also appointed Eduardo Balbis to replace Nancy Argenziano, who along with Skop did not make the list of finalists for the position. Argenziano resigned in October to campaign for Democrat Alex Sink in her bid for governor, allowing Balbis to assume her place on the PSC.
The Republican-controlled Legislature directs the nominating process, and although both of Crists nominees are Republicans, Gov.-elect Rick Scott has the option of striking those appointments and naming his own nominees. Crist did as much to the appointments of his predecessor, former Gov. Jeb Bush, undoing numerous appointments to various state boards and agencies.
PSC officials insist the shakeup among commissioners, the transition between gubernatorial administrations and the lawsuit isnt hindering their ability to conduct business.
Reach Gray Rohrer at grohrer@sunshinestatenews.com or at (850) 727-0859.
