Michael Mayo: FPL executive pay jolts the outrage meter

Sun-Sentinel columnist Michael Mayo has been doing some further reading into executive pay levels at FPL ... and he's outraged.

In the face of a 30% base-rate hike request, he's outraged at FPL executives' shameless "country club memberships, home security systems, leased vehicles and gasoline, even flights and lodging for an annual physical."

FPL's response? Spokesperson Jackie Anderson resonded to a query from Mayo that given record profits last year the executives' perquisites were "reasonable, appropriate and in line with the needs of the business."

Huh?!?!?!?

Want to read more? Take your blood-pressure medicine first, then sit down at your computer screen to read Michael Mayo's full column online, here.

Palm Beach Post readers weigh in on FPL base rate hike

Palm Beach Post readers weigh in on FPL base rate hike:

Reality check for FPL; fuel prices won't be dropping ...

When oil goes back up, so will bills ...

Public counsel should block increase ...

Read the letters to the editor of the Palm Beach Post, here.

Competing FL Senate bills signal battle over "clean" vs "renewable energy"

The Tampa Tribune reports today on the battle lines being drawn in the State Legislature over the definition of "clean" energy versus truly "renewable" energy sources.

Sen. Lee Constantine (R-Altamonte Springs) has introduced "Senate Bill 2490, a measure requiring that 20 percent of the power provided by Florida electric utilities be made with renewable resources such as wind and solar," the paper reports.

That bill is now up against "SB 2328, that would require utilities to get 20 percent of their power from 'clean' energy sources, including nuclear, by 2020," introduced by Sen. Charlie Dean (R-Inverness).

Dean's bill supports the efforts of FPL and others to have "nuclear" defined as clean energy within the parameters set by Gov. Christ for taking Florida "green" by 2020. The Florida Public Service Commission (PSC) has already rejected that definition, but it appears that nuclear-friendly lawmakers are now trying to legislate the definition in Tallahassee.

According to the Trib, "nuclear power accounts for 18 percent of the electricity produced by Progress Energy. FPL produces about 19 percent of its power from nuclear plants."

The Tampa Tribune story can be read online, here.

Another Brilliant FPL Cartoon: Courtesy of Jim Morin, The Miami Herald

Another brilliant FPL cartoon in today's Miami Herald, courtesy of Jim Morin, showing two FPL "suits" and their out of work victim. In clear reference to the requested FPL base rate hike, the caption on the cartoon reads:

THERE GOES ANOTHER VICTIM OF THE ECONOMIC MELTDOWN... 'TASE HIM, BRO!!!

Reject FPL hike, says Bradenton Herald: "Rate request excessive in recession"

The Bradenton Herald today joined in the call to reject FPL's outrageous request for a base-rate hike, publishing an editorial that calls the rate request "excessive," particularly in the midst of an economic recession:

We’ve got to admire the chutzpah radiated by Florida Power & Light.

Their creative-writing division came up with a classic snow job in an appeal to our environmental sensibilities. The key subject of the press release concerned rates, but not until deep in this writing exercise did that reality set in.

The editorial goes on to explain why the rate request is beyond the pale, saying in conclusion that:

We’re not falling for FPL’s smooth line. The utility will get a hearing before the commission in a few months, with a decision by the end of the year. New rates would hit in January.

We don’t mind paying a fair rate of return, but FPL should not ask for $1 billion next year alone — not during a severe recession. Everybody’s feeling the pain, and corporate giants should, too. The company’s creative writers must be aware of that as well.

The Public Service Commission should reject this request.

Read the full Bradenton Herald editorial online, here.

Chan Lowe's Lowe-Down on the FPL rate hike request

Courtesy of Chan Lowe's Lowe-Down at the Sun-Sentinel ...

FPL rate hike request

It's too bad they can't figure out a way to generate electricity from chutzpah, because if they could, we FPL customers would be paying the lowest rates in the nation.

After a rainstorm--that's right, a rainstorm---causes tens of thousands to lose their power, FPL wants to squeeze an additional $1 billion out of us, claiming that they haven't raised base rates in kilowatt decades. If that's so, what's been causing our bills to go up over the years? Could it be those fuel charges they wanted to raise, even though prices have dropped precipitously since last summer?

Maybe they just took a cue from AIG. Since massive incompetence appears to be richly rewarded these days, why not belly up to the trough with the rest of the hogs? After all, FPL can stack its ineptitude up with the best of them.

Strike while the socket is hot, as they say at FPL headquarters.

FPL's misinformation campaign: Sowing the seeds of confusion by calling a rate hike a rate cut

Writes the Sun-Sentinel's Julie Patel: Florida consumer advocate concerned, customers confused by FPL rate increase request ...

And columnist Mike Mayo: After the shock: FPL’s rate hike request just a starting point ...

And Charlie Beck, of the Office of Public Council, was astounded by the news, according to John Dorschner at the Herald ... http://tinyurl.com/dcxxv2.

And the confused Orlando Sentinel, followed the FPL "spin" on the story here ... http://tinyurl.com/cvz3j7.

And the "spin" is clearly what lead to the confusion. Here's the FPL headline on their press release, obviously designed to mask the bad news of the rate hike inside messaging about "clean, reliable energy solutions" ...

FPL rate proposal would support investment in fuel efficiency, cleaner energy and system reliability while keeping customer bills low

So, is the spin deliberate and designed to create confusion or what? And, really, what kind of fools do they take us for?

More on the proposed FPL "billion dollar" base rate increase

More on the proposed FPL "billion dollar" base rate increase from Julie Patel, blogging at the Sun-Sentinel here http://tinyurl.com/ddu5m7 and main story here ... http://tinyurl.com/dl4qqx

And, from John Dorschner of the Miami Herald here ... http://tinyurl.com/dcxxv2.

Even the public utility watchers are astounded by this one, as Dorschner's story points out:

''Wow,'' said Charlie Beck of the Office of Public Counsel, which represents utility customers, when he heard the numbers. ``Wow. This is the biggest rate increase I have ever seen requested by a utility in Florida. This is really something.''

Reporting from SoFlo Business Journal, here http://tinyurl.com/cwj9vj ... and Palm Beach Post, here ... http://tinyurl.com/ck4hdo ... and Orlando Sentinel, swallowing the FPL "spin" on the story and getting it wrong here ... http://tinyurl.com/cvz3j7.

Of all the papers, the Sun-Sentinel's site is most social media-friendly, and love the comments we're seeing on Julie Patel's main story, here, especially this one from "Powerball":

I have an idea for the new FP&L logo. How about they just have a ski mask and a gun. Simple, to the point, an honest.

FPL seeks $800-million-plus base rate increase, for 4.5% avg monthly bill hike

In a press release out of its Juno, FL headquarters today, FPL requested that anticipated monthly base rate increase previously set at a total of between $850-$900 million dollars that will go in part toward paying for another two new nuclear reactors at the Turkey Point power station in Miami-Dade County.

Released on the same day as FPL revealed that 11,000 customers had lost power in South Florida as a result of a rainstorm, the news announcement says that if approved by the Florida Public Service Commission:

Under the company’s proposal, the typical 1,000 kilowatt-hour residential customer bill would decrease by an estimated $4.92 monthly, or 4.5 percent, from $109.55 to $104.63 on Jan. 1, 2010.

The release also said that the base rate will principally go toward increasing capital investment (that is, expansion of power generation, transmission and distribution facilities), including "strengthening the transmission and distribution system" as well as "existing fossil fuel power generation facilities" and "existing nuclear power generation facilities."

In a previously released 10-K SEC filing by Florida Power & Light Co, the company said that:

In November 2008, FPL notified the FPSC that it intends to initiate a base rate proceeding in March 2009. In the notification, FPL stated that it expects to request an $800 million to $950 million annual increase in base rates beginning on January 1, 2010 and an additional annual base rate increase beginning on January 1, 2011. These amounts exclude the effects of depreciation, which depend in part on the results of a detailed depreciation study that FPL is currently finalizing. Further, FPL expects to request that the FPSC continue to allow FPL to use the mechanism for recovery of the revenue requirements of any new power plant approved pursuant to the Siting Act that was established in FPL's 2005 rate agreement. Hearings on the base rate proceeding are expected during the third quarter of 2009 and a final decision is expected by the end of 2009. The final decision may approve rates that are different from those that FPL will request. (yellow-highlighted emphasis is ours)

In other words, any power plant approved by the Florida Public Services Commission under the terms of the 2005 base rate agreement -- including Turkey Point 6 & 7 nuclear reactors that are yet to be built -- are going to be funded by slapping another $4.92 monthly onto the average consumer's electricity bill!

Read the full FPL news release online, here.

St. Lucie nuclear plant cuts back output, more evidence FPL over capacity

In yet another sign that with the ongoing economic recession FPL is now over-capacity in its Florida power plants, particulary its nuclear power plants in St. Lucie and at Turkey Point, Reuters news agency has reported that the St. Lucie nuclear power plant has slipped to 62 percent of power as of today.

In a story datelined out of New York, Reuters said that the 38% cut to power was detailed in the daily status report issued to the U.S. Nuclear Regulatory Commission by the St. Lucie plant, which is located on Hutchinson Island in St. Lucie County, about 120 miles north of Miami.

No reason was given for the cutback in power production at the St. Lucie plant. But, FPL's CEO Lewis Hay recently indicated that the utility giant was over capacity, saying that many of FPL's "customers are cutting back, and they're not paying their bills, either."

Likewise, in early February Reuters reported that Nuclear Unit 4 at the Turkey Point power plant 20 miles south of Miami had dipped to 60 percent power, again citing a plant report to the Nuclear Regulatory Commission.

Despite the cutback in power usage in the State, Reuters said in today's story that FPL continues on track with plans "to spend about $1.5 billion to add about 400 MW of capacity to the company's St Lucie and Turkey Point reactors by 2012."

FPL also plans to request the Florida Public Services Commission this Spring for nearly a billion dollars in base rate hikes to pay for the construction of two unbuilt nuclear reactors at Turkey Point, with those rate hikes to be absorbed by FPL customers in their monthly electricity bills.

Your FPL dollars at work: the FPL Pavilion at the 17th Green

Ever wonder what the money you pay to FPL every month goes toward? Electricity, right? Wrong! It also goes for a lot of other things, including marketing spend ...

FPL, like most big private corporations, has a huge marketing budget that serves not only to print up masses of glossy brochures touting things like how clean nuclear energy is, but also to ... fund the 2,322 square-foot public hospitality area with covered stadium seating known as the "FPL Pavilion at the 17th Green" during the PGA Honda Classic this week !!!

First spotted this online at the Sun-Sentinel. But, check out the online pitch for what to do while you're enjoying the The Honda Classic at the PGA National Resort and Spa's Champion Course in Palm Beach Gardens this week:

The FPL Pavilion overlooking the 17th green is another great place to hang out. For starters, you have a signature par-three hole bordered by water. The Pavilion also treats general admission fans to theatre-style seats, flat-screen televisions, and unobstructed sight lines to the hole. Just outside the FPL Pavilion is the FPL Village where you'll find lunch and a cold drink, interactive expos from FPL and you and the kids can cool off in the FPL Cool Mist Zone.

Nothing against golf ... after all, golf courses are where all the big deals are sealed in the private sector and where lobbyists get to talk privately to politicians ... and all the big deals are sealed!

Still, you would think FPL would have learned from the banking sector's excorciation over throwing bailout money around for obscene parties and spa retreats. Like, maybe it's not such a great idea to sponsor a PGA golf tournament at a spa venue and then expect not to run into opposition when asking the FPSC for nearly a billion dollars in base rate hikes later this Spring.

On the other hand, maybe FPL's marketing department has been hanging out in the FPL Cool Mist Zone for way too long ... maybe it's time for the public and their customers to start turning up the heat on 'em!

Gov. Crist wants diversified energy supply, FPL continues to push nuclear

The FPL PR campaign against choosing renewables that actually offset carbon emissions and in favor of gas-fired and nuclear-powered generation doesn't miss a beat.

While Florida Gov. Charlie Crist was telling the State legislature in Tallahassee that his "administration is committed to a diverse energy supply that balances solar, wind and nuclear," FPL spokespersons were continuing to push their two-part messaging built around zero-carbon emissions to the media.

First, goes the messaging, if John and Jane Q. Public want cleaner energy, then they should be be prepared to pay higher prices for it on their monthly electricity. Witness a perfect example of the messaging as picked up and localized in today's story in Florida Today titled "Want cleaner energy? Get ready to pay."

That's customers who should pay ... with no shouldering of the cost or responsibility for clean energy accruing to "good corporate citizen" FPL's investors, who in February saw their shareholder dividend payouts increased by 6 percent to 47.25 cents per share hot on the heels of FPL Group's announced 4Q-08 increase in profits of 82%, even as fuel costs to the energy giant were falling like a rock.

Second part of the messaging? Note FPL spokesperson Randy Clerihue's comment to Florida Today:

... that 70 percent of FPL's fuel for powering electricity-producing turbines comes from natural gas and nuclear power. Natural gas has about half the carbon emissions of coal while nuclear power has zero carbon emissions.

The clear subtext of that statement is that nuclear is clean and green, with zero carbon emissions, so if Floridans want clean energy and zero carbon emissions, they should be prepared to put up with FPL's ongoing expansion of nuclear energy.

Or, if you have a problem with nuclear -- maybe that pesky little detail, that nobody has yet figured out how to safely dispose of the radioactive waste generated by nuclear plants that tends to hang around the planet for millions of years -- then why not try gas-fired plants as the next best thing! Just witness the wonders that the West County Energy Center is doing for the environment in Barley Barber swamp ...

No emphasis on conversion to true renewables like solar here in the Sunshine State, no real dedication to harnessing the winds that blow almost constantly across the Florida peninsula.

Just take what's on offer from FPL and the PSC and the politicians whose campaign coffers are filled with FPL-linked donations funnelled by the legions of FPL lobbyists deployed around the state. True competition will be blocked, communities from South Daytona to Biscayne Park who want to renegotiate their FPL franchise agreements in order to switch to providers who can help them convert to alternative renewable energy will be bullied ....

Oh, and by the way, you'll also have to pay for it -- and in 2010, FPL customers will have to pay for two new reactors at Turkey Point to the tune of nearly a billion dollars more -- whether you like it or not!

So, thanks Guv ... glad you're committed to energy diversity, but we'd like to see a bit more real "balance" in the equation, so that solar- and wind-generated power can come close to the nuclear-powered and coal-fired electricity that FPL keeps sending us through the grid and that required to subsidize, like it or not!

South Miami Mayor links to FPL questioned

Things may be heating up for Mayor Horace Feliu of South Miami, who apparently was caught off-guard last night during a packed hearing on FPL Turkey Point 6 & 7 Transmission line routes up US-1 and through South Miami.

A reader writes in to tell Stop FPL that Feliu stuttered, stammered and momentarily lost his cool when one member of the audience questioned the link between Turkey Point 6 & 7 transmission lines coming through South Miami and his voluntary January 2008 testimony in favor of Turkey Point at a Florida Public Service Commission meeting at Miami-Dade College.

But, that may not be the half of it ... a coy "Anonymous" comment appeared at Eye on Miami late yesterday linking FPL to campaign contributions to Feliu's 2008 re-election campaign, which was ongoing right at the the time of his pro-Turkey Point testimony to the FPSC at Miami-Dade College. According to the Eye on Miami tipster:

Turns out that South Miami Mayor Feliu's 2008 Campaign Finance Report is a rather interesting read. Other than being chock full of Baptist Health/South Miami Hospital officers and directors who felt compelled to pony up huge campaign contributions to His Honor, there are an unusually large number of folks whose listed addresses are within a stone's throw of FPL's north Palm Beach headquarters (courtesy of MS Virtual Earth) who had the overwhelming urge to send large campaign contributions 90 miles south into the Mayor's bulging campaign coffers.

Feliu apparently took it upon himself to testify at the January 2008 MDC hearing on Turkey Point 6 & 7, where he told commissioners that the two additional nuclear reactors are ""right in line with exactly what we had in mind. We know it's a clearn energy source. FP&L has been an environmentally-friendly corporate neighbor to all of us, and I'm here just to speak on that and just basically let you know how we feel about it ... I'm in favor of this project."

When asked directly if his stance was backed by his constituents, Feliu said that lack of any vocal opposition to Turkey Point from the citizens of South Miami (20 miles to the north of Turkey Point), he told the FPSC that "we've always had public discussions at the commission meetings, and no one has ever spoken against this project. And we're very close to that Turkey Point location. We're in South Miami."

Just two months later (as detailed in a Miami Herald report, here) in March 2008, the FPSC approved the Turkey Point 6 & 7 reactors project.

Credit to Eye on Miami for having noted Feliu's presence at the MDC hearing back in Jan. '08.

The full Feliu testimony is contained in minutes of the FPSC hearing at MDC, online here.

And, we've also excerpted the Feliu testimony below, for those who don't care for the sometimes slow PDF download of the full minutes:

CHAIRMAN CARTER: Next we'll ask Horace Feliu, the Mayor of South Miami. And please forgive me if I mispronounce your name. It wasn't my pronouncing. It as the writing that I saw before.

MR. FELIU: You were very close. It's Feliu. Thank you, Mr. Chair and esteemed Commissioners. Thank you for coming down here and taking time from your busy schedules to listen to the public.

About two years ago I sponsored a Resolution in the City of South Miami, which basically is the Freedom From Fossil Fuels Acts. We requested from our county officials, our state legislators and our federal government to do their part in freeing ourselves from the use of fossil fuels and at the same time create a type of situation or incentives whereby we eliminate the greenhouse effects and carbon-based products that contaminate our environment. So this is right in line with exactly what we had in mind. We know it's a clean energy source. FP&L has been an environmentally-friendly corporate neighbor to all of us, and I'm here just to speak on that and just basically let you know how we feel about it.

We realize that there's issues regarding the use of water and everything else, but that is being addressed. FP&L has done their homework. I've listened carefully to their presentation at the county level, which was passed pretty much unanimously, and I'm in favor of this product -- of this project. Thank you.

CHAIRMAN CARTER: Thank you. One moment, please. Commissioner Argenziano.

COMMISSIONER ARGENZIANO: Same question, have you heard from the citizens of your city of South Miami?

MR. FELIU: Basically when I found out about it it was in the paper. And we always have public discussions at the commission meetings, and no one has ever spoken against this project. And we're very close to that Turkey Point location. We're in South Miami.

COMMISSIONER ARGENZIANO: Thank you.

MR. FELIU: You're welcome.

UPDATE: Residents want to stop FPL high-voltage lines along US 1, Florida East Coast Railroad