The state’s utilities regulator signed-off on a plan that allows FPL to charge its customers for a $190 million investment into a fracking project in Oklahoma. FPL’s representatives said this will save Floridians money in the long-run, but others have warned this decision sets a bad precedent.
In a 4-1 vote, the Public Service Commission allowed Florida Power and Light to make an investment with its customers as the sole backer.
J.R. Kelly, the Public Counsel for the state of Florida, acts as legal representation for FPL’s costumers. He said there are a lot of problems with this decision.
First, he said, FPL does not have the legal authority to charge its customers for something other than FPL’s core activities. Kelly said this means the company can only charge for generating, transmitting and distributing electricity.
But, Kelly also points out the way FPL is going about paying for this investment is all wrong.
“All of the risks of these investments—100 percent of the risks—is placed on the backs of Florida Power and Light’s ratepayers,” he explained. “They go on and say ‘oh, this is going to save all kinds of money and is going to save our ratepayers a lot of money.’ Well, if that’s the case and they really believe that, then let them assume the risk.”
Kelly said he applauds FPL for thinking outside the box, but he doesn’t think it’s a good idea to let the company go ahead with this plan. Kelly said this could set a precedent for allowing utility companies to pass the cost of their risky investments on to their customers.
Also the commission can’t revisit it decision after the fact. If the investment turns out to be a bad one, the PSC can’t reverse its approval.
Kelly said the Office of Public Counsel is taking a look at possibly appealing the Commission’s decision.
