For the second consecutive year, a bill in the Florida Legislature aimed at reducing the growing cost of electricity for residents has failed, a result its sponsor says reflects the strong influence of the utility industry.
State Sen. Don Gaetz, a powerful Republican and former president of the Florida Senate whose Panhandle district is among the most conservative in the state, sponsored the measure. However, Gaetz said even his influence could not compete with the political power of utility companies — particularly Florida Power & Light (FP&L), the state’s largest electricity provider.
“FP&L was very active,” Gaetz told the Tampa Bay Times. “The bill was smothered in its legislative cradle.”
Senate Bill 126 would have required regulators at the Florida Public Service Commission to consider affordability when reviewing proposed electricity rate increases. The measure also would have required regulators to evaluate requests for higher shareholder profits using widely accepted financial modeling methods used outside the utility industry.
Additionally, the bill proposed an annual report detailing executive compensation at utility companies and analyzing whether “excess” profits have negatively impacted Florida residents. Despite these provisions, the bill advanced through only one of its three assigned legislative committees.
During a December hearing, no representatives from Florida’s utility companies publicly spoke against the proposal. Gaetz, however, said FP&L worked behind the scenes to stop the bill. State records show the company registered six lobbyists to work on the House version of the legislation.
“All they had to do was indicate that FP&L opposed the bill,” Gaetz said. “Given FP&L’s power in the Florida Legislature, that was enough. Lobbyists didn’t need to appear in committees or distribute fact sheets to senators.”
A spokesperson for Florida Power & Light declined to comment.
FP&L and its parent company, NextEra Energy, are major contributors to Florida political campaigns. Since January 2017, the company has donated more than $33 million to state-level politicians, according to a report released earlier this month by the CLEO Institute, an environmental group that advocates for clean energy.
The company’s influence extends beyond current officeholders. Records show NextEra recently donated $500,000 to U.S. Rep. Byron Donalds, who is currently polling as a leading candidate to become Florida’s next governor. Donalds’ campaign did not respond to requests for comment about the donation.
Late last year, state utility regulators — all appointed by the governor — approved a nearly $7 billion rate increase for Florida Power & Light customers over four years. The agreement was negotiated privately between the utility and several business groups representing retailers, industrial companies, and Walmart.
According to Walt Trierweiler, the public counsel appointed by the Legislature to represent utility customers, the deal grants FP&L the highest shareholder profit margin among utilities in the lower 48 states. Trierweiler strongly opposed the increase, calling the profit margin “unconscionable” and accusing FP&L of double-charging customers to increase earnings. He and other critics have challenged the decision, and the dispute could ultimately be decided by the Florida Supreme Court.
Gaetz said Senate Bill 126 was partly inspired by that case and intended to prevent similar situations in the future. One provision would have required that rate-hike settlements be negotiated “in good faith” with the public counsel before regulators could approve them.
In addition to FP&L’s six registered lobbyists, 15 lobbyists representing Tampa Electric Co. were also registered on the bill. However, both Gaetz and the House sponsor, Rep. Alex Andrade, said they had little direct communication with the company.
“Registering lobbyists on legislation affecting utilities is routine and does not necessarily signal support or opposition,” said Cherie Jacobs, a spokesperson for Tampa Electric. “When legislation could affect the communities we serve, we work to provide elected officials with information about potential benefits, risks, and vulnerabilities. That way they fully understand the possible implications for customers and the energy system.”
Source: Miami Herald