CONSUMER ADVOCATES, ENVIROS SPLIT ON PSC APPOINTMENTS

By KEITH LAING
THE NEWS SERVICE OF FLORIDA

www.newsserviceflorida.com

THE CAPITAL, TALLAHASSEE, Sept. 30, 2009………. Two groups that make frequent appearances before the Florida Public Service Commission, consumer advocates and environmentalists, were split Wednesday on whether or not Gov. Charlie Crist should re-appoint PSC chairman Matthew Carter this week when he picks two members of the panel.

A consumer group that lobbies the PSC on electricity rate cases said that fiery Commissioner Nancy Argenziano should assume the chairmanship of the panel next year, but one of the state’s most influential environmental groups thinks Carter is doing a good job.

Tampa-based Florida Consumer Action Network said Gov. Charlie Crist should tap new PSC commissioners this week instead of re-appointing current Carter and Commissioner Katrina McMurrian. If Crist chooses to replace both sitting PSC members, Argenziano will take the panel’s gavel next year.

But Audubon Florida, which was among the groups that successfully persuaded the PSC this year to propose to lawmakers stringent renewable energy standards for power companies, said Carter efficiently ran the commission during those proceedings.

A former state senator, Argenziano is thought to be one of the PSC’s most consumer-friendly members and sometimes appears to irk other commissioners, in addition to the industries the commission regulates. But that would make her the ideal PSC chair, FCAN executive director Bill Newton told the News Service of Florida Wednesday.

“That would put a real consumer advocate in charge and would really change how the PSC does business,” Newton said. He added that he does not know for sure what Crist wants to do with the PSC appointments, which he is expected to make this week, but he “probably wants to do something dramatic and I’m hoping that having backing from a major consumer group will help him feel more comfortable shaking up the PSC.”

Newton said he was not worried about Argenziano’s confrontational past with publicly-regulated utilities, or scrutiny about a North Carolina house she co-owns with a municipal electricity lobbyist. News of that arose as Argenziano forcefully spoke out about conflict-of-interest allegations involving PSC staff recently.

“We need someone who can restore the credibility of the PSC – Argenziano has the reputation to do that,” Newton said. “Yes, it is controversial, but look at the problems. Legislators are rattling swords on PSC reform, so something needs to happen.”

Newton added that dumping Carter and McMurrian could also pay political dividends for Crist, who is running for the U.S. Senate next year.

“He can cement his consumer bona fides with this move and blame (former House speaker Marco) Rubio and the Legislature for the current situation,” Newton said. “It would be a bold move.”

Contacted by the News Service about the possibility of becoming PSC chair Wednesday, Argenziano seemed reluctant, even as she talked about what a shake up it would be.

“It goes in succession,” she said. “I’m not sure I even want to be PSC chair. I’m 55 years old and I’m not impressed by titles. But some people are squirming right now, and trying to smear me as best they can, and they happen to be utility lobbyists.”

Argenziano acknowledged supporters of her possible ascension like Newton, but she said opponents were just as vocal.

“There are some people who’d love for me to be the chair, because I’m just fair,” she said. “There are whole bunch of people who don’t want me to be chair, because they don’t want fair. You have to ask yourself why are so many people frightened about me being chair?”

Not opposed to Argenziano but also not joining the populist fervor to replace Carter and McMurrian, Audubon Florida deputy director Eric Draper said in an interview Wednesday that when the PSC was considering a proposed renewable energy standard for power companies in 2008, Carter showed that he was a good fit at the helm of the commission.

“He’s done a pretty good job as chair of the commission,” Draper said. “The one thing we worked with them on primarily was renewable energy standard and I thought what they did as a committee was commendable. From our point of view, which was trying to get the RPS done, I thought he was open-minded, he ran meetings well and worked with us. He was informed and smart.”

The governor is required by law to pick his PSC appointees by Oct. 3 and the pick will have to be approved by two Senate committees. Carter and McMurrian, both appointed by former Gov. Jeb Bush in 2006, were among the nominees sent to Crist by the PSC’s nominating council earlier this month.

The group of names sent to Crist for consideration also includes former PSC inspector general John Grayson, University of South Florida Institute for Public Policy & Leadership director David Klement, Escambia County Sheriff’s Department Chief Financial Officer Benjamin “Steve” Stevens III and former PSC staff attorney Felicia West.

Other than Carter and McMurrian, few of the candidates who applied for PSC posts this summer had extensive direct experience in fields regulated by the PSC, making predicting the impact of the new members on the panel difficult.

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9/30/09

SENATE PSC CRITICS EYE CRIST’S UPCOMING APPOINTMENTS

By KEITH LAING
THE NEWS SERVICE OF FLORIDA

www.newsserviceflorida.com

THE CAPITAL, TALLAHASSEE, Sept. 30, 2009……….Two senators who want lawmakers to change the way Florida Public Service Commissioners are appointed say Gov. Charlie Crist, who this week will pick two members of the panel, should look for someone who will put consumers first.

And one, ardent PSC critic Sen. Mike Fasano, R-New Port Richey, said that would rule out sitting PSC Chairman Matthew Carter and Commissioner Katrina McMurrian, who are both serving terms that expire in January and hoping to be reappointed by Crist.

“My comment is anybody but those two,” Fasano told the News Service of Florida Wednesday. “I don’t think the governor needs to call me to ask my opinion on this. Those two commissioners need to go. The PSC needs a fresh new start and a message needs to be sent to consumers that the governor’s office hears them, loud and clear.”

State law calls for the governor to make his choices by Oct. 3. His picks would then have to be approved by two Senate committees. Carter and McMurrian, both appointed by former Gov. Jeb Bush in 2006, survived the first step toward returning to the panel early next year when they were among the nominees sent to Crist by the PSC’s nominating council earlier this month.

As the PSC has considered a record $1.3 billion rate increase request from Florida Power & Light, the state’s largest power company, Crist came out against the hike and said that he would watch how Carter and McMurrian voted on it as he considered their fates. But the PSC, which was pummeled by conflict-of-interest questions during the proceedings, put off a final decision until after the commissioners Crist taps would be begin their terms in January. That leaves Crist with the possibility of selecting members who will have to make a decision on the FPL case next year who have not sat in on the panel’s lengthy hearings on the proposal.

Having already appointed Commissioners Nancy Argenziano and Nathan Skop, arguably the most outspoken PSC members about the possibilities for conflicts of interest among PSC staff, the two choices this week will give Crist a chance to put his populist stamp on the panel for several years. However, Crist also earlier this year re-appointed Commissioner Lisa Edgar, who critics assailed during her contentious confirmation hearings as being not consumer-friendly enough.

Despite the potential disadvantages of switching commissioners in the middle of a rate case, Fasano still said he favored any of the other candidates for the $130,036 per year job that the nominating council sent Crist to choose from. The group includes former PSC inspector general John Grayson, University of South Florida Institute for Public Policy & Leadership director David Klement, Escambia County Sheriff’s Department Chief Financial Officer Benjamin “Steve” Stevens III and former PSC staff attorney Felicia West.

Crist has been interviewing applicants, chosen this summer from a group that originally included a retired detective, a longtime disc jockey, a Border Patrol agent, and a former newspaper editorial page editor. He met Tuesday evening with Klement in Sarasota and Monday with Stevens near Destin.

During the FPL hearings, Fasano said that he would file a bill that would end PSC appointments to the panel in favor of statewide elections, which was how members were picked until the late 1970s. He told the News Service Wednesday that while he is only vaguely familiar with the slate of candidates, any of them would be better than the status quo.

“I don’t know any of the candidates personally – I’ve only read about them – but it can’t get any worse at the PSC than it is up there now,” he said.

It’s a message Fasano says he has heard repeatedly from his constituents, some of whom are customers of the second largest power company in the state, Progress Energy, which has requested a separate $500 million rate increase that the PSC is also considering this fall.

“My constituents, who are ratepayers, are making clear that they want a complete overhaul of the PSC, including the commissioners,” Fasano said. “They’re tired of reading articles about how unethical the commissioners and some of the staffers have been.”

Another state senator who has said that he would file a bill to change the way members of the PSC are selected, Sen. Dan Gelber, D-Miami Beach, would not go as far as Fasano in suggesting that Crist ditch Carter and McMurrian later this week. But Gelber, who said he will introduce legislation that would allow the members of the Cabinet to appoint one PSC member each and the governor to pick two commissioners, a change from the current all-gubernatorial appointment set-up, also said Crist should pick the most consumer-friendly applicants.

“It’s really the governor’s call in the current system, but I think he should appoint whoever he thinks will best look out for consumers,” said Gelber, who is running for attorney general. “(The new commissioners) should be thoughtful and look out for ratepayers.”

Other than Carter and McMurrian, few of the candidates who applied for PSC posts this summer had extensive direct experience in a field regulated by the PSC, making predicting the impact of the new members on the panel difficult.

However, if Crist chooses to replace both sitting PSC members, Commissioner Argenziano will assume the role of chairman of the panel next year. A former state senator herself, Argenziano is thought to be one of the PSC’s most consumer-friendly members and sometimes appears to rankle other commissioners, in addition to the industries the commission regulates.

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9/30/09

SOBEL SLIDES INTO SNAKE PIT, PROPOSES BAN ON SOME PETS

By KEITH LAING
THE NEWS SERVICE OF FLORIDA

www.newsserviceflorida.com

THE CAPITAL, TALLAHASSEE, Sept. 23, 2009……….Sen. Eleanor Sobel said Wednesday that she will file a bill that would take the fangs out of the Burmese python pet market by making it illegal to own the type of snake blamed this summer for suffocating a 2-year-old girl in her bedroom.

U.S. Sen. Bill Nelson has already introduced a similar federal measure and the Florida Fish and Wildlife Commissioner held a hunt for the slippery suspects, but Sobel, D-Hollywood, told the News Service of Florida that the hunting effort was off the mark.

“I think it’s a baby step in what needs to be done,” Sobel said. “These species can multiply quickly and they are out there in our neighborhoods. Expanding the number of bounty hunters and season is a good step, but I don’t think it’s enough.”

The Fish and Wildlife Conservation Commission has reported that the 13 python experts permitted by the state to capture and kill the snakes on state land in South Florida captured 17 as of the beginning of this month. The program is slated to continue until at least Oct. 31, at which time officials will consider expanding it.

But while state officials consider extending their bounty, Sobel is proposing to outlaw altogether importing for personal use or sale the Burmese or Indian Python (python molurus), Reticulated Python (python reticulatus), African Rock Python (python sebae), Amethystine or Scrub python (Morelia amethystinus), Anaconda (Eunectes) and Nile monitor (Varanus niloticus).

“These non-native, invasive species are coming into Florida,” Sobel said. “This bill’s intent is to be proactive and forward-looking to save our fragile environment as well as the people of Florida. Our legislation will turn off the spigot, stopping the flow of dangerous reptiles into the state by prohibiting their import for personal use.”

However, Sobel said she did not expect the grass to be clear for her plan, acknowledging the presence in the weeds of both a strong pet lobby and a Republican majority in the Legislature who are usually reticent to reduce personal freedoms.

“The other side will probably oppose it and so will the people who have a vested interest in selling and trading these snakes,” she said. “The industry is sure not going to be real happy and they are probably going to do everything they can to stop it. There seems to be a fascination with reptiles in Florida,” adding that the same can be said of the nation and the world.

Wildlife Foundation of Florida Executive Director Brett Boston agreed that something needed to be done about exotic pets and plants in the state, though he said he did not endorse or oppose Sobel’s legislation.

“We have a climate where everything that’s brought in, whether it’s a plant or animal, survives pretty well because it’s pretty forgiving,” Boston said. “If we were in Alaska, they’d be dead. You get a hard freeze and they die.”

Boston said that non-native species like the Burmese python impact the Florida environment far beyond the headlines generated by the summer’s tragedy.

“You run the risk of the critter getting out and choking out native species,” he said. “So many of our native species are in trouble anyway, and then you put the non-native species in there to compete for food and space. I understand people have the freedom to have pets, but we have to stop and say ‘that’s not really worked.’”

Any ban on pythons or other exotic species will only go so far toward fixing the problem though, Boston added, because they are too prevalent now.

“From the 50,000 foot view, we need to look closely at exotic pet imports,” he said. “We have so many that we’re never going to get rid of them, but can we at least learn our lesson?”

One of the opponents Sobel said was likely to want to strike at her plan told the News Service Wednesday that a pet ban was unnecessary because there are already strict rules for owning them.

“Florida has the comprehensive regulation of what are called the ‘big 5′ constrictors, requiring permits, record keeping and microchips, so I question why we need to fully ban them,” said Marshall Meyers, CEO of Pet Industry Joint Advisory Council, which opposed a similar proposal by U.S. Sen. Nelson and U.S. Rep. Kendrick Meek.

Meyers said a better course would be to strengthen enforcement of existing rules and increase sanctions. He added that there could be unexpected consequences of banning snakes like the Burmese python altogether.

“A ban would drive these animals underground,” Meyers said. “People will abandon them and turn them loose because they don’t want to turn them over to the authorities and have them killed.”

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9/23/09

PROGRESS ENERGY TAKES TURN BEFORE THE PSC

By KEITH LAING
THE NEWS SERVICE OF FLORIDA

www.newsserviceflorida.com

THE CAPITAL, TALLAHASSEE, Sept. 21, 2009……….Under a glaring spotlight sparked by a myriad of conflict-of-interest charges which marred its last set of hearings, the Florida Public Service Commission on Monday powered into deliberations on higher rates from the state’s second largest power company.

The PSC’s recent consideration of a $1.3 billion rate increase proposal from Florida Power & Light was obscured by accusations of improper communication between staffers and company employees and questions about the travel habits of FPL executives. But the panel nonetheless moved forward with the next item on its lengthy fall agenda: a separate $500 million increase requested by Progress Energy.

Progress, which has more than 1.6 million customers in 35 Florida counties, began Monday trying to convince the PSC to approve the remainder of a $13.83 per 1,000 kilowatt hours rate hike beginning in January that the panel temporarily approved in July. Then, the PSC authorized the company to charge customers an extra $4.52 immediately, with the caveat that it would have to be reimbursed if the plan were not ultimately approved in this proceeding (Docket No. 090079-EI).

Progress, which last had a base rate increase in 1993, argued during opening statements Monday that it needed the new revenue to maintain service and continue to build and operate infrastructure like an existing power plant in Polk County and a proposed new nuclear plant in Levy County.

“We are here today because Progress Energy Florida has real and substantial capital investments and real and significant decreases in sales,” attorney Alexander Glenn told the PSC. “We also have real … needs to run our business the way you and our customers expect it will be run. Progress Energy is also embarking on one of the largest capital expenditure programs in the company’s history, which includes the licensing and construction of its Levy nuclear project.

“These investments are key to secure the state’s energy future and to implementing the energy polices set forth by the governor, the Legislature, the Cabinet and this commission,” Glenn continued.

Glenn also argued that Progress Energy has made smart financial decisions with the money it already has.

“We’re a good company, we’re a well-run company,” he said. “I don’t think you’re going to hear any interveners say that we’re not. As you’ll hear from our witnesses…we run our power plants efficiently, our nuclear power plant is one of the best-performing … over the last decade and our storm response is really second-to-none.”

The usual cadre of consumer groups ceded Glenn’s point that Progress Energy is well-operated, but they still stood opposed to the rate increase request Monday, as they did earlier this month against FPL’s proposal. Charles Rehwinkel, of the Office of Public Counsel, which represents customers’ interests before the PSC, said Floridians could not bear to give Progress Energy $500 million more.

“This is a case about bad timing,” Rehwinkel said in his opening statement. “It’d be easy for me to sit here and say the standard things about the company: that the company is greedy. I’m not going to say that. Progress Energy has come in here and asked you for $500 million at a time when the state is suffering immensely. You’ve heard that a million times…. But it is what it is. The problem with this filing is there is not enough sharing of the pain that’s going on in the state right now.”

OPC was joined in opposition to the rate increase by organizations such as the Florida Retail Federation, the Attorney General’s office and the Florida Industrial Power Users’ Group and White Springs Agricultural Chemicals, one Progress’ largest individual users. The groups tried unsuccessfully Monday to persuade the PSC not to begin deliberations on the plan until February 2010 because they argued an updated sales forecast filed last month by Progress Energy increased the request by more than $93 million.

Progress disputed the contention, arguing the update was a response to a question from PSC staff, not a revised rate request.

With the PSC proceeding with the case anyway, the Retail Federation, represented by lawyer Robert Scheffel Wright, argued that Progress should not only be denied a rate increase, but said the company should be lowering its current rates because its proposal was largely based on a nuclear plant that has not yet been fully approved.

“Commissioners, there are many issues in this case, but at bottom the decision you are called to make is whether Progress Energy Florida needs any rate increases at all in order to provide adequate and reliable service at the lowest possible cost,” Wright said. “The evidence will show they do not.”

Jon Moyle, a lawyer for the Florida Industrial Power Users Group, also echoed the concerns raised by the OPC and the Retail Federation in his organization’s opening statement. Moyle said the PSC should err on the side of returning money to the customers in the tough economic climate in the state and argued that the nuclear plants should not be a determining factor in the rate hearings.

“Don’t let (the Levy nuclear plant) capture you in terms of making decisions,” Moyle said. “You will hear Progress say ‘Levy,’ but we haven’t decided whether to move forward with it. We’re taking steps in that direction, but it’s not a done deal. Surely, you should not make rate case decision about something that is uncertain as to whether its going to take place at all.”

Aware of such criticism from opponents, particularly the knock about the current economy, Progress sought to pre-empt the insensitivity charges in their statement, arguing that the economy was hurting the company too. Attorney Glenn said the company laid off 150 employees last year and eliminated another 150 open positions to tighten its own belt before coming to the PSC to ask for more money.

“We would not be here today if did not absolutely have to be,” Glenn told the PSC. “We reduced our workforce by 7-and-a-half percent. We have been and are a fiscally sound company. We’re mindful of the impact of any rate increase on customers, so why are we here? It’s pretty simple and I think not in dispute: we have identifiable costs and less sales.”

Glenn also framed the competing arguments presented Monday at the PSC as a choice between expertise and opinions.

“You’ll hear from our witnesses, who actually run power plants, who actually build things, who actually maintain our electric grid, who actually develop budgets and are held accountable to them,” he said. “In contrast, what are you going to hear from the interveners? An accountant. You be the judge of who’s more credible about what our companies need to run its business.”

Similar to the FPL hearings that proceeded it, the PSC’s Progress Energy case is taking place against a backdrop of conflict-of-interest questions that sprung from allegations that the commission was too close to the companies it regulates. Progress was not linked to the questions, which mounted as three PSC commissioners fired or placed on administrative leave aides after newspaper reports that they had given their BlackBerry messaging information to an FPL attorney, which could allow the company official to text message the staffer during meetings without creating a public record.

In addition to the Progress Energy and FPL base rate cases, the PSC is scheduled to determine this fall whether or not the costs of new nuclear power plants planned by the companies at Turkey Point and in Levy County respectively should be passed on to their customers. FPL wants to add 67 cents a month per 1,000 kilowatt hours to generate $62.7 million and Progress Energy proposes adding $2.38 per 1,000 kilowatt hours to bring in $236.4 million. The commission will also consider a $1.6 billion proposed FPL underground natural gas pipeline.

The PSC has four more days of evidentiary hearings for Progress Energy’s request scheduled this week and the panel added three more days of FPL hearings, Oct. 21-23.

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9/21/09