Regulation
Power to the People
As two new PSC members change the tone, will Bush holdovers starting changing too?
Rate jolt
In an interview, Edgar took exception to the idea that there is a “turn” in the PSC attitude toward consumers. “I think I am very consumer-friendly and consumer-oriented,” she said.
But in the past two years, power rates have gone up about 20%, driven largely by rising fuel prices but also by storm-repair charges. In 2005, consumer advocates cut a deal with FPL and Progress Energy to freeze basic rates until 2009, but annual “cost adjustments” have increased dramatically. A small commercial customer of Progress pays $929.87 a month vs. $768.97 in mid-2005 for 10,000 kilowatt-hours.
Florida’s PSC has been viewed by Wall Street as accommodating to utilities. A former commissioner says a financially strong utility will benefit consumers in the long run, “like an individual who has a favorable credit rating gets a better interest rate on a loan.” Able to finance expansion as the state grows, Florida utilities have also avoided blackouts, he noted.
In May, the bond-rating agency noted that recent PSC appointments have produced “some regulatory uncertainty.”
Some people hope it’s just the beginning.
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