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PSC Asserts Jurisdiction to Recover Tax Savings for Customers

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The Florida Public Service Commission (PSC) today declared immediate jurisdiction to determine whether the federal tax savings Florida utilities are reaping as a result of the Tax Cuts and Jobs Act of 2017 (Act) must be returned to customers.

The Act took effect January 1, 2018 and reduces the federal corporate income tax rate from 35 to 21 percent.

The PSC action preserves its authority to flow back any savings to customers, and applies to all investor-owned utilities (IOUs)—electric, water/wastewater, and natural gas—that do not already have rate case settlements giving tax reform benefits to ratepayers. Actual amounts will be determined after a hearing.

Today’s vote came in response to a January 9 petition by Office of Public Counsel, and is effective immediately.

“Today we drove a stake in the ground,” said PSC Chairman Art Graham. “The urgent need was to assert our jurisdiction to determine who should rightly benefit from any tax savings. Now we can embark on a deliberative process to make sure customers are treated fairly.”

Previous rate case settlements for Duke Energy Florida, LLC; Tampa Electric Company; Gulf Power Company; and Florida Public Utilities Company contain provisions for flowing tax cut benefits back to customers, and that process will go forward in accordance with each settlement’s terms.

Power Restored to 99 Percent of Public Power Customers Statewide

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The Florida Municipal Electric Association (FMEA) today reported that 99 percent of the state’s municipal electric utility customers have had their power restored following the devastation of Hurricane Irma. Approximately 18,500 municipal electric customers remain without power in Alachua, Duval, Marion, Monroe and Polk Counties.
With Hurricane Irma coming onshore in the Florida Keys as a Category 4 storm, Monroe County was the hardest hit and will take the longest to fully restore. Crews continue to work tirelessly to bring all Monroe County public power customers back online as soon as possible. Additional crews and resources have been sent to assist Keys Energy Services with their restoration efforts.
Municipal electric utilities with customers who remain without power are also assessing individual situations in their areas. Some customers without power may have sustained damage to their homes and businesses preventing power restoration. Any homes or businesses with damage to their weatherheads must first have those repaired or replaced by an electrician before power can be restored.
As of 12 p.m., FMEA reported the following county-by-county power outage information for its municipal utility members:

The Florida Municipal Electric Association (FMEA) represents the unified interests of 34 public power communities across the state, which provide electricity to more than 3 million of Florida’s residential and business consumers.

Gulf Power customers face unprecedented fee increase

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Advocates urge Florida’s PSC to reject proposed rate hike

Gulf Power, the power utility for Northwest Florida, is requesting that the Florida Public Utilities Commission approve a $107 million rate hike.

As part of the rate hike request, Gulf Power wants to increase its fixed charge on residential customers from $18 a month to $48 a month, meaning that customers will owe the utility a hefty sum before consuming any electricity. Such a large spike in the fixed charge would severely limit customer options to reduce their own energy use and save money on their bills. 

Gulf Power’s fixed charge is already higher than any other investor owned utilities’ in Florida. The attempt by Gulf Power to restructure rates and increase the fixed charge by 155 percent on families in its service territory is unprecedented in Florida. 

“Gulf Power’s proposed increase to its monthly fixed charge is unprecedented in Florida and a regressive energy tax that unfairly targets lower income and fixed income customers,” said Dr. Stephen A. Smith, executive director of Southern Alliance for Clean Energy. “By charging customers nearly $50 before they even flip a light switch, this increase would mean that customers who are thrifty with how much power they use, or even investing in renewable energy for their homes are penalized, while the monopoly utility is allowed to increase its own profits on the backs of their customers.”   

“Gulf Power’s utility rate proposal is unfair to consumers.  It’s especially unfair to families that are making efforts to be more energy efficient, and to low-income households. Consumers should not be penalized for being conscientious with their energy use or by choosing to invest in energy efficient appliances,” said Shannon Baker-Branstetter, energy policy counsel for Consumers Union, the policy and mobilization arm of Consumer Reports. “This proposal takes away control from consumers to reduce their energy bill by reducing energy use. We strongly oppose this proposal to dramatically increase fixed electricity charges for customers.  It is inequitable, inefficient and unfair.”  

“It appears Gulf Power is attempting to create a new class system for utility users in their territory,” stated Tory Perfetti, chair of Floridians for Solar Choice and Florida Director of Conservatives for Energy Freedom. “Requesting a monthly increase resulting in a $48 per customer charge, whether you use any power or not, while specifically asking for food stamp users to be given a discount, though no other discounts for struggling citizens are being proposed, signals a ridiculous first in the World of Energy for Florida.”  

“This change will discourage solar because it raises fixed costs and disincentivizes solar investment,” said Ellen Roston, co-president of the Pensacola Bay Area League of Women Voters. “It makes it harder and slower for solar to show a return.”

“The proposed increase to Gulf Power’s monthly fixed charge is poor rate design, designed to penalize customers who use less electricity, including solar customers,” said Patrick Altier, president of Florida Solar Energy Industries Association. “As proven by numerous studies, solar energy provides many benefits to utilities and consumers alike, and those who chose to invest their hard earned money into renewable energy for their own homes should not be unfairly punished by outrageous monthly fees. In addition to providing a net benefit to both Gulf Power and its consumers, solar also creates local economic investment and jobs. Jobs that will not be there if solar customers are penalized as this proposal would do.” 

Gulf Power customers will have an opportunity to speak directly to the Florida Public Service Commission during two public hearings. Hearing locations and times:

Thursday, January 26, 2017, 6:00 pm CST
Pensacola State College
Hagler Auditorium
1000 College Blvd.
Pensacola, FL 32504 (Auditorium is at the corner of Underwood Ave. and 9th Ave.)

Friday, January 27, 2017, 10:00 am CST
FSU Panama City Campus
Holley Lecture Hall
4750 Collegiate Drive
Panama City, FL 32405

FMEA assists with resources necessary to restore power to public power customers

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FMEA Assists with Resources Necessary to Restore Power to
Public Power Customers Affected by Severe Storms in Florida

As severe thunderstorms brought high winds, hail and significant rainfall to parts of Florida Saturday and Sunday, the Florida Municipal Electric Association (FMEA) assembled mutual aid crews from across the state to assist with power restoration in impacted areas.
Hardest hit was the City of Tallahassee, which experienced a peak outage of 30,000 municipal electric utility customers. Crews and service trucks from public power partners Kissimmee Utility Authority (KUA), Ocala Electric Utility, Beaches Energy Services (Jacksonville Beach) and JEA were immediately sent to Tallahassee to assist with power restoration efforts. As of 1 p.m. today, approximately 6,300 City of Tallahassee electric utility consumers remain without power and power restoration efforts continue.
Other Florida municipal electric utilities affected by the weekend’s severe weather include:

  • Ocala Electric Utility
  • Gainesville Regional Utilities (GRU)
  • City of Leesburg
  • City of New Smyrna Beach
  • Town of Havana
  • Orlando Utilities Commission (OUC)
  • JEA
  • Lakeland Electric
  • City of Starke
  • Keys Energy Services
  • City of Blountstown
  • City of Lake Worth

Overall, approximately 50,600 municipal electric utility customers experienced a power outage at some point over the weekend. All have been restored with the exception of the remaining 6,300 City of Tallahassee electric utility customers (as of 1 p.m. on Monday, January 23).
As crews continue to quickly and safely restore power, it is important for residents to remember that there is still danger even after a storm has moved out of the area. Downed power lines and trees pose the most significant threats. The FMEA reminds residents of these important safety precautions:

  • Never, ever touch a downed power line or go near one. Always assume the power line is live.
  • Do not touch anything or anyone in contact with a fallen power line or other equipment.
  • If a power line falls on your car, stay inside the vehicle and call for help.
  • Do not pull tree limbs off power lines. Leave those for utility crews to safely handle.
  • Avoid areas with debris and downed trees. There could be live power lines hidden inside.
  • Also avoid chain link fences and puddles that could have become electrified by downed power lines.

During emergency situations, members of FMEA partner through a Mutual Aid Agreement that enables member utilities to call on each other for emergency workers and supplies. Florida’s public power utilities benefit from this strong network of partners within Florida and across the country through the American Public Power Association. These dependable connections have created a reliable system where member utilities both request and offer assistance.
The Florida Municipal Electric Association (FMEA) represents the unified interests of 34 public power communities across the state, which provide electricity to more than 3 million of Florida’s residential and business consumers.