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FPL raising rates at least 16 percent by January

PSC approves 2-stage increase to offset $746 million in unexpected fuel costs

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Kara Heaslip, like many other Southwest Florida residents, is tired of paying increasing prices for everyday needs.

When she heard that Florida Power & Light Co. bills will go up by at least 16 percent — 8 percent next month and 8 percent or more in January — she said she will train her 5-year-old daughter, Isabella, to cut back on electricity use to save money.

“I think the best way to do it is to teach the younger generation, you have to start conserving,” she said.

FPL will increase customers’ bills by 8 percent in August offset $746 million in unexpected fuel costs.

The Florida Public Service Commission approved the move Tuesday, which will allow half of the requested 16 percent increase to take effect in August. An additional increase of at least 8 percent will show up on bills beginning in January.

“We hate to do this,” FPL spokesman Mayco Villafana said.

“Passing this on to our customers in the middle of the summer is not something that we would have wanted to do, but the world condition as it pertains to fuel is affecting every segment of our economy and utilities are not immune to this.”

The increase will take effect Aug. 4 and will continue through December. A bill for 1,000 kilowatt-hours of energy will increase about 8 percent from $102.63 to $110.77. After the next increase in January, based on current projections, the same bill would increase to about $122. The company plans to recover half of the fuel costs during the rest of 2008 and the other half throughout 2009.

Villafana said FPL wanted to implement the entire 16 percent increase for the rest of 2008 and not carry it over to 2009 because of the uncertainty of fuel trends next year.

“There’s more uncertainty as to the cost of fuel and other events that may affect the bill, and that may lead to rate shock,” he said.

Heaslip said she thinks an 8 percent increase is a bit much.

“In today’s economy every little dollar counts,” she said. “Whether it’s eight dollars or 80 dollars, I think we’re all feeling the pain right now.”

Naples resident Mary Jo Pohl said she’s not happy about the increase but she’s not surprised.

“They have to do it to go along with the oil prices and everything,” she said. “I don’t like it, and I would hope that if the oil prices go down, which, who knows if they are, that it’s not a permanent thing.”

Under state law, FPL is not allowed to profit from fuel charges. The purpose of the increase is to make up for money that the company would lose otherwise. If oil prices drop, that will be reflected in customers’ bills as well.

“It’s tough on people because there’s a lot of people now who don’t have jobs,” Pohl said.

Residents aren’t the only ones feeling a pinch.

Bob Spencer, executive director of financial services for the Collier County School District, projected a 23 percent increase in electricity above what the district initially budgeted for in the 2008-09 school year. That adds up to an additional $2.3 million, he told the district at the June Committee of the Whole meeting.

Some area businesses are “going green” and looking for ways to use less energy.

Hunter Hansen, managing director of the Naples Grande Beach Resort, said the resort is constantly taking measures to conserve energy.

“Every day we talk about conserving energy at the resort,” he said. “It’s a high topic of conversation for us here.”

The resort is recognized by the Florida Green Lodging Certification Program as a “green hotel” for its conservation efforts. Hansen said the resort saves by using energy-efficient light bulbs, consolidating refrigerators and freezers and turning off lights whenever possible. He said the resort has eliminated one of its boilers to reduce gas consumption.

Hansen said the resort plans to continue finding ways to save energy.

“We are not comfortable with resting with what we are doing,” he said. “Every day we are looking for opportunities to conserve.”

Fran Lewis of Naples said she has already tried to reduce costs. She said she recently installed an energy-efficient air conditioner and has cut back on luxuries, such as eating out and buying Starbucks coffee.

She said she doesn’t like the FPL increase but she thinks it could be much worse.

“I actually feel that electricity is one of our best buys as it is, even with an increase, far better than water, which is outrageous. So just take it with the gas and everything else,” she said.

“It’s just too bad that because of the gas prices nowadays it’s trickling down to the electric and everything now,” Heaslip said. “Everything’s going up.”

---

Tips for reducing electricity use

-- While at home, turn the thermostat to 78 degrees and put the fan switch on auto. While away, raise the thermostat to 82 degrees or warmer.

-- Install a programmable thermostat that adjusts the temperature automatically.

-- Clean or replace air conditioner’s filter monthly.

-- Turn off ceiling fans when not in a room.

-- Avoid pre-rinsing dishes before putting in dishwasher.

-- Limit the use of pool pump to six hours a day in summer and four hours a day in winter.

-- Adjust the water level on washing machines to match load sizes. Always use a cold rinse.

-- Clean the lint filter in your dryer before every load.

-- Use the auto sensor function on dryer

Source: Florida Power and Light

Comments

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Excellent.
I was hoping they would finally do this.
:(

#1 Posted by naplestrek on July 2, 2008 at 9:14 p.m. (Suggest removal)

Meanwhile when is FPL going to cut back the trees and bury lines like was promised after Hurricane Charlie?

#2 Posted by Illiar on July 2, 2008 at 9:26 p.m. (Suggest removal)

Do what ? Raise the bill to cover feul cost or is it because you own FPL stocks.?

#3 Posted by chincieone on July 2, 2008 at 9:39 p.m. (Suggest removal)

Just when I hear that the price of a gallon of milk is supposed to decrease... :(

#4 Posted by Avon_Lady on July 2, 2008 at 10:21 p.m. (Suggest removal)

I already do all of that stuff on the "ways to conserve" list, but dang -- have you ever actually tried to run your dishes through the typical GE Profile dishwasher without pre-rinsing them? Might as well not waste the water running the dishwasher at all -- they all come out dirty. I can only assume that GE dishwashers are crap.

#5 Posted by Pontiaction on July 2, 2008 at 10:32 p.m. (Suggest removal)

No surprise here. Stock up on deodorant.
Which, by the way, will cost you more...

#6 Posted by leftubehind on July 2, 2008 at 11:01 p.m. (Suggest removal)

We are getting the shaft from all sides now- failed "energy policy", speculators and the overseas contries. Are you ready skeedaddy for the $4.50 gas coming to a station near you?

#7 Posted by The_Brooks on July 2, 2008 at 11:38 p.m. (Suggest removal)

This monoply needs to raise prices in order to keep shareholders happy.

Imagine if the power utiliies were deregulated and the Floridian consumer could shop for the lowest rates

#8 Posted by bicoastal on July 3, 2008 at 5:04 a.m. (Suggest removal)

After the second increase, the rates will have raised closer to twenty per cent. The miracle of compounding interest. Do the math, change the headline.

#9 Posted by HandromeColl on July 3, 2008 at 7:14 a.m. (Suggest removal)

FPL is a bunch of crooks!

#10 Posted by techie on July 3, 2008 at 7:42 a.m. (Suggest removal)

16% is absurd!!!
8% is ridiculous. If you read newspapers from other parts of the country, you see electric companies asking for four to five percent increases. And most won't get that.
This is just another classic example of the bloated, fat cat public monopoly that we can do nothing about.
Go buy some KY and bend over, here it comes!

#11 Posted by Optipess on July 3, 2008 at 7:46 a.m. (Suggest removal)

Solar

#12 Posted by PHINFAN on July 3, 2008 at 7:46 a.m. (Suggest removal)

I went all green on the light bulbs, pool pump every other day for 6 hours, no heat dry on dishwasher, cloths washed in cold water, ceiling fans off when no one in the room, AC at 80 when home and 82 when not, i even have the energy device on call on my house and the bill went up from the past month. NOW A INCREASE, JUST GREAT!!

#13 Posted by dwyatt08 on July 3, 2008 at 7:46 a.m. (Suggest removal)

Where's the decrease from the hurricane fees they temporarily put on.
And the trees in my neighborhood haven't been done in years also. Guess i'll call them today and ask when

#14 Posted by grouper25 on July 3, 2008 at 8:11 a.m. (Suggest removal)

Thats great, because a 16% increase is a sure fire way to jumpstart the states economy.

#15 Posted by Naples_zen on July 3, 2008 at 9:29 a.m. (Suggest removal)

With this being the "sunshine state" why aren't there more solar panels on buildings, homes, condos, etc.? Makes no sense to me.

#16 Posted by lydiagirl on July 3, 2008 at 9:48 a.m. (Suggest removal)

The solar industry should get the same investment in dollars and tax breaks that the oil industry does. If only 10% of money spent in Iraq had gone to solar research and development we would be well on our way towards cheap solar power. Maybe then we SW Floridans could declare our energy independance from FPL !! It makes no sense for President Bush (US Bureau of Land Management) to place a moratorium on federal solar projects for two years while we are held hostage by the price of oil and the price of electricity. What a waste that we in Florida can't easily use all the sunshine we have to reduce our electric bills with solar.

#17 Posted by antiquepaper on July 3, 2008 at 11:14 a.m. (Suggest removal)

This "Lifestyle Alert" brought to you via mother nature,(hurricanes in 04/05)and a failed national energy policy from our government.
Do you really think the White House is concerned with $4.00 a gallon gas?...their spending 12 billion a month in the middle east litterbox to import this "cheap" fuel and Americans have become spoiled.
$4.00 will be a bargain when we reach where this country's headed.

#18 Posted by outsidethebox240 on July 3, 2008 at 11:29 a.m. (Suggest removal)

I agree with the solar idea. I also think wind generators.

But think about it.....how are they going to able to tax the sun???
That's why they drag their feet.

#19 Posted by Optipess on July 3, 2008 at 11:56 a.m. (Suggest removal)

Solar and wind are great as supplemental energy systems, but neither one on their own can generate sufficient amounts of electricity to completely replace coal- or oil-fired generating plants.

Despite this being "The Sunshine State", Florida would still have trouble with solar energy because of the sheer size of the solar collector arrays that would be necessary to replace our current supply sources.

The same thing with wind. Florida doesn't have enough consistent winds to make wind generators practical or cost-effective. Most of the states that attempt to use wind-generated power to supplement their other sources are either very hilly or mountainous. (Florida is very flat, is case you hadn't noticed.)

And, you tax energy generated these ways the same you that you tax energy generated with coal or oil...with a meter, based upon usage. Because it would have to be generated on a large scale to be practical. Most homes use more energy than private homeowners can afford to generate on their own, that's why these systems (despite having been around for almost 30 years, in practical terms) are still largely supplemental in nature.

The best and most viable "alternative" energy source is still nuclear power.

#20 Posted by GatorHater07 on July 3, 2008 at 12:28 p.m. (Suggest removal)

Florida Power & Light does NOT have a monopoly on energy in Florida.

A significant portion of Lee County has their electricity supplied by Lee County Electric Co-Op (LCEC), which has generating plants in several locations throughout eastern Lee County.

Despite being known primarily for natural gas service, Tampa Electric Company (TECO) also supplies electric energy to all of Hillsborough County and significant portions of Polk, Pasco, and Pinellas Counties in the Tampa Bay area.

Monroe County (which is the Florida City area and The Keys) has their energy supplied by Keys Energy Service (KES), which is based in Key West. While they do have their own generating plant in Key West, most of the electricity that KES supplies they actually purchase from a nuclear power plant in New England and then re-sell to their customers. (Yes, that's legal, in case you're wondering. And, it happens more often than you think it does, even with FP&L.)

Because most of what you are paying for with KES is "transmission fees" from New England to The Keys, a "typical" monthly electric bill for a 2,000 square foot house in The Keys is between $475 and $525. (The 900 square foot house I rent for work in Big Pine - WITHOUT air conditioning - runs me about $350 per month.)

This isn't that bad an increase. Just like everything else, this is simply a reflection of fuel prices.

#21 Posted by GatorHater07 on July 3, 2008 at 12:45 p.m. (Suggest removal)

But your thinking public solar panels, I'm thinking private.
And there is enough wind for the generators.Actually, in some of the more windy states, they have to shut down the turbines because the wind is too strong.
I always enjoy the comments that alternative won't work because it can't supply 100% of the electricity needed.
It's that kind of tunnel vision that has us in this mess. With that kind of thinking it's amazing we ever moved out of caves. Why not try multiple methods. What exactly do we have to lose.

#22 Posted by Optipess on July 3, 2008 at 12:52 p.m. (Suggest removal)

We don't have anything to lose. But, states already supplement the nation's energy supply with "alternative" methods using solar, wind, and nuclear. And, the combined total of this effort totals less than 10% of the entire energy consumption of the United States.

With more than 300,000,000 households in the U.S. using electrical power, it will take more than just "random" use of "personal" power-generating equipment to affect a significant reduction in the use of fossil-fuel-based power sources.

And, isn't the ultimate goal to divest ourselves of using fossil fules to generate energy altogether? That's what the envirocons are pushing for - 100% of the electricity needed in the U.S. to be generated by "alternative" sources. That's also tunnel vision, beacuse none of the "alternative" sources (except nuclear power) have yet to demonstrate the consistent, cost-effective, high-output capability necessary to make enough impact to warrant more permanent and more widespread changes to our power grid.

I don't know about you, but I don't have the kind of money necessary to generate enough power to completely disconnect my house from "The Grid". Or, for that matter, enough land. It would take almost two acres of solar panels or almost seven acres of wind generators to completely replace the energy that the average 2,000 square foot home consumes in a month. Can you afford to do that?

#23 Posted by GatorHater07 on July 3, 2008 at 1:13 p.m. (Suggest removal)

Gatorhater: "Most homes use more energy than private homeowners can afford to generate on their own, that's why these systems (despite having been around for almost 30 years, in practical terms) are still largely supplemental in nature. The best and most viable "alternative" energy source is still nuclear power."

The reason solar systems haven't become more efficient and more prevailent in the past 30 years has a lot more to do with lack of federal incentives and tax breaks for the industry and consumers alike (tax breaks like the oil and nuclear industries get). Given a chance with significant investment, solar and wind industries can do just as well if not better than nuclear or coal, and be safer and cleaner too. Lack of funding for 30 years due to oil and nuclear lobbyists is no reason not to invest in solar and wind now.

#24 Posted by antiquepaper on July 3, 2008 at 3:15 p.m. (Suggest removal)

For those of you who have been here awhile......remember all the orange Asplundh trucks that used to be tree trimming along all the power lines years ago.......and they've seemed to have just disappeared.......I asked a buddy at FPL what happened, he said FPL is reimbursed from FEMA for any storm damage done by trees, so they cut all the tree trimming money from their budget, since FEMA pays for the damage. Our govt lets them get away with it.

#25 Posted by swamp4u2 on July 3, 2008 at 3:34 p.m. (Suggest removal)

So, if we (the U.S. collectively) start to significantly invest in developing "alternative" energy sources such as solar and wind, and, at the same time, open up drilling for oil in ANWR and the Gulf of Mexico (because, let's face it, we are NEVER going to get 100% away from fossil fuels), which products will be developed to their full potential and reach the market in a useable state first?

I'm all for exploring "alternative" energy sources. I'm not naive enough to think that we will be forever chained to JUST oil. But, most of the components that will need to be manufactured to fully develop solar and wind power are either polymer- or carbon-based (and polymers and carbon are both petroleum derivatives), and they will be manufactured in factories operated by electricity, coal, and oil (and all of those take petroleum to produce).

So, while we might find ways to be use less energy individually (or even as a society), the means by which we become more "energy efficient" will still require vast quantities of petroleum.

So, we find ourselves in a vicious circle: Truly viable alternative energy will be hard to develop and bring to market until it can receive the same tax breaks and incentives given to oil, coal, and nuclear power...BUT, the government will not offer those tax breaks and incentives to alternative energy until it is truly viable.

#26 Posted by GatorHater07 on July 3, 2008 at 3:47 p.m. (Suggest removal)

Thanks Gov. Crist. The few bucks we saved on your property tax "reform" will now be burned in additional energy costs while you and algore save the planet. Solar and wind aren't cheap or cost effective. Instead of 1000 megawatts of cheap energy in Desoto county we must now finance Don Quiotes windmills.

#27 Posted by swampbuggy on July 3, 2008 at 9:39 p.m. (Suggest removal)

Interesting point gatorhater about the polymer and carbon based components. Will these components really require "vast" quantities of petroluem to produce? I don't understand why you single out the solar and wind industries. Doesn't the construction of a nuclear facility require alot of energy to produce its components? Isn't that true of anything manufactured? Even if it does require alot of petroleum inititally to produce the components, I would suspect that solar and wind would save energy over the life span of the components produced. And the goal here is not only to save oil, but also to reduce overall energy costs--which solar and wind would do. I realize these factors are inter-related, but it seems to me your arguement about "vast" quantities of oil may be over-stated.

#28 Posted by antiquepaper on July 3, 2008 at 9:50 p.m. (Suggest removal)

Where I live we just got a 22% increase and its the 3rd one in the past year! Sooo we're up over 50% now! My electric bill with no AC runs $275.00 to $300.00 month. We use gas dryer, gas Stove and must have ceiling fans!!! wish we were only hit with 8% raise!!

#29 Posted by Islandgirl on July 4, 2008 at 7:54 a.m. (Suggest removal)

Hey swamp4u2,
What happens if you call fpl and tell them there's trees in the neighborhood that are dangerously messing with the power lines?
I have one thats lifting the power lines to my house

#30 Posted by grouper25 on July 4, 2008 at 7:57 a.m. (Suggest removal)

I have to agree with swamp4u2. FPL no longer trims trees on a regular basis as preventative maintenance. The only time they will have the trees trimmed is after a storm or if there has been multiple power outages in an area caused by trees.

In my neighborhood we have had five count em' five power outages in the past 3 weeks. This past week FPL finally sent out Asplundh to trim the trees on the entire street. That took over four hours, mean while we had no power (for the safety of the tree trimmers) while they completed the task that should have been taken care of a long time ago as a routine item.

Now what I really would like know is why the power was out again this morning for over two hours. No explanation from our friends at Florida Flicker and Flash.

#31 Posted by swfl_ff on July 4, 2008 at 11:14 a.m. (Suggest removal)



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