South Daytona challenges FPL to show them the money!

The city of South Daytona is challenging FPL to show it the money!

The city's challenge to drop FPL as its local electricity distributor, reported earlier at Stop FPL, have expanded to a demand that the power giant justify its recent request for a base-rate increase to electricity customers.

South Daytona has demanded that FPL open it's books to show why the base-rate increase is necessary and are meeting with stone silence from the publicly trade energy utility.

The ongoing saga is getting some real press coverage up in Volusia County at the News-Journal online and at the websites of WTFV-9 and CFNews-13.

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.

One rainstorm and ... 11,000 FPL Customers Without Power

Unbelievable that one rainstorm would knock out power to 11,000 FPL customers in South Florida. Not a tropical storm, not a hurricane ... just rain and wind!!!

Whatever do we pay them so much for??

Red all about it here and here and here and here ...

Asplundh: FPL's $2.37 billion partner in 'Distribution Vegetation Management'

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Actually, our favorite section in the story we ran across in Transmission & Distribution World magazine, titled FPL Invests in Infrastructure Resistant to Hurricanes, is the part subheaded "Distribution Vegetation Management." That, of course, is an industry euphamism for the hat-racking that Florida homeowners are so accustomed to witnessing when an Asplundh truck chances into their neighborhood.

According to the article:

In 2008, FPL continued its three-year cycle for clearing vegetation from distribution main lines and completed the second year of its six-year cycle for neighborhood lines. Overall, FPL trimmed trees and cleared vegetation from more than 11,000 miles throughout the state. Total costs in 2008 were $57.9 million, with 2009 costs expected to be $68.3 million.

That means that FPL paid out nearly $60 million in '08 and will top that amount by nearly $10 million in '09 to pay companies like Asplundh to keep the lines clean. OK, so we know the cost to the customers.

But, at what brutal cost to the trees? And, at what profit to Asplundh?

Ah, well ... we had no idea that Asplundh, with its 28,606 employees nationwide does so very well at the hat-racking business, thank you! And, by well, we mean they pulled in $2.37 billion in revenues for 2008.

That's "B" as in "BILLION," folks, earning them a coveted spot in the Top 200 rankings by Forbes Magazine of "America's Largest Private Companies." Who knew?

Biscayne Park citizens want to Stop FPL franchise agreement; Commission vote set for March 3rd

Citizens of the tiny Village of Biscayne Park will have one last chance to stop the approval by their local commission of a 30-year agreement with FPL that villagers say will unnecessarily lock them into a deal with FPL over the use of the electric power distribution grid.

Writing in to the Miami Herald's Soapbox today, villagers voiced concern that the 3-2 majority of the Biscayne Park Commission that already has passed a resolution approving the agreement on first reading, will give in to FPL's demands and approve the agreement on second reading Tuesday night, March 3rd.

Biscayne Park resident L. Bryan Cooper wrote:

Across Florida, municipalities are re-signing 30-year contracts with the energy giant FPL. As written, this franchise agreement ties the hands of cities, towns and villages with respect to their use of the power distribution grid -- at the very moment in our history when a new energy paradigm is unfolding. Groundbreaking solar energy storage models just developed at MIT (http://web.mit.edu/newsoffice/2008/oxygen-0731.html) will allow local governments across the Sunbelt to take charge of energy production within their borders. Yet without cooperative distribution capabilities, and the development of future small-scale competitive energy markets, citizens stand to lose.

The Commission meeting is set for Tues., March 3rd at 7 pm at the Ed Burke Recreation Center – 11400 NE 9th Court, Biscayne Park.

The full text of the Soapbox letters are available online, here.

South Daytona effort to Stop FPL electricity monopoly hits resistance

South Daytona providing electric power directly to its citizens? Without the help of FPL?

That's something that City Manager Joe Yarborough and City Attorney Scott Simpson have been looking at for the past three years. Now they're hitting resistance from the giant private electricity provider, according to an article in today's East Volusia News-Journal.

FPL is now fighting hard in current contract renewal negotiations to remove an option that would give the city the right to distribute electricity itself, if it so chooses. And, playing hardball ... threatening a lawsuit to be able to remove the city's option to go it alone.

Councilwoman Nancy Long said she did not appreciate that stance, nor did she understand why FPL did not want to leave the purchase option in the franchise agreement.

Read the full story online, here.