Florida Utility Wants Rate Hikes (Partly for Executive Perks); More on the PSC Scandal

Despite these trying economic times, Florida Power & Light (FPL), one of the state's largest utility companies, wants to hike its rates by 31%.   The rate hike requires approval from the Florida Public Service Commission (PSC), a five-member panel that is supposed to protect Florida consumers from utility companies' monopolistic tendencies.

In August, I blogged about a PSC staffer Ryder Rudd, who was partying with an FPL executive -- while FPL's rate-hike case was pending before the PSC.   In June, the St. Pete Times reported that even one of the PSC commissioners (Katrina McMurrian) has repeatedly raised conflict-of-interest issues by attending events sponsored by the very utility folks that she is supposed to regulate.  Another commissioner (Lisa Edgar) was also targeted in an ethics complaint over conflicts of interest, but the probe sort of fizzled.

It gets worse: apparently, some of the commissioners' staffers have been giving out Blackberry PIN codes to utility company employees -- potentially giving utility employees  direct contact with PSC staffers 1)  out of the public view, and 2) without leaving a paper trail. 

This is questionable for two reasons: 1) communications between regulators and utility employees should be in the "sunshine"; and 2) since Blackberries can retrieve emails, there's no need for utility employees to have a different access route to PSC commissioners or staff.

In short, a fox-and-hen-house scenario seems to exist at the PSC.  Another slap in the face to Florida consumers came yesterday, when the Miami Herald reported:

"As FPL pushes for a rate increase, controversy swirls over the planned purchase of a $31 million jet and an investigation into regulators' relations with utilities they oversee." (MH)

Here's the bottom line: every consumer dollar funneled into a utility exec's pocket (or spent on executive perks) is one less dollar for us Florida consumers to spend on our families and ourselves.

The PSC knows this.  In August, the PSC ordered FPL to disclose the salaries of the company's top earners.  FPL refused and is likely to appeal the order to the Florida Supreme Court.

PSC Commissioner Nathan Skop commented: 

"'We should be provided the data as regulators...  We should not allow utilities to regulate the commission or commission staff.'"

A very good point.  PSC Commissioner Nancy Argenziano commented:

"'No matter how you want to cut it, numbers of citizens are captive to the economic demands of [utilities]....  These citizens have every right to know the extent and style of the operational costs for which they are paying."

Another good point, which is not surprising.  Incidentally, the Miami Herald reported that FPL's CEO (who lives in Miami) often takes a helicopter to work in Juno Beach -- presumably paid for, day in and day out, by Florida's consumers.

Bottom line: Florida consumers can find better things to spend their money on than enlarging FPL execs' personal bank accounts or making FPL execs' jobs cushier.

Commissioners Argenziano and Skop are known for striving to protect consumers' interests -- which is a primary purpose of the PSC.

Incidentally, Commissioner Argenziano recently fired one of her top aides after finding out that the had given his Blackberry PIN code to a utility employee.  The fired employee is a 40-year-old lawyer who had been working for the PSC since 2001.

Meanwhile, Ryder Rudd (the one who partied with FPL execs while an FPL case was pending before the PSC) has neither resigned nor been fired.  This is strange, given that a week ago, Commissioner Skop again called for his resignation (Skop had publicly called for it a week or so before that).

State Senator Mike Fasano also publicly called for the firing of Mr. Rudd.  The Bradenton Herald reported:

"This is not the first time Rudd has crossed ethical boundaries, according to Fasano. Rudd broke the rules by lobbying on behalf of a commissioner [Lisa Edgar] seeking Senate confirmation of her reappointment, the senator says.  Rudd later received a retroactive raise along with 18 other PSC staff. Fasano called the pay increase a 'quid pro quo' for Rudd’s help in the reappointment."

Florida Governor Charlie Crist showed exemplary judgment when appointing Argenziano and Skop (the commission's only real consumer advocates) to the PSC. 

Gov. Crist should show similar judgment by doing major house cleaning at the PSC -- starting with refusing to re-appoint the Jeb Bush holdovers on the PSC. 

Other Buck Naked Politics Posts:

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* Wall Street to Make Bundle on Death of Life Insurance Holders?

* Some People Don't Want Accountability for Bush Folks

* Investigative Film Makers Barred from China

* Poll: People Confused About Health Care Reform