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Question
In recent years the Florida legislature has considered a number of proposals that would alter the regulation of public utilities and benefit service providers at the expense of service consumers. How would you protect Florida consumers from unnecessary increases in their electric and basic phone bills?
AARP Response
The 2002 legislature passed legislation that would have increased consumer’s basic phone rates by as much as $8 per month. This legislation was vetoed by the Governor at the urging on AARP and other consumer groups.
Supporters of this legislation claimed it would stimulate competition in the local phone services and ultimately benefit consumers. The claim was based on the faulty idea that local phone rates are being subsidized by other services offered by local phone service companies. The bill was supposed to correct this subsidy problem.
AARP disputes that local service is subsidized and offers evidence to prove the point. (see AARP publication -- Current Issues in the Pricing of Telecommunications Services). AARP further challenged supposed consumer protections that were added to the bill. There was no consumer protection in the bill that would have offset the massive phone rate increases it would have led to.
Electricity: In the hope of encouraging lower prices, higher service quality and greater innovation, lawmakers across the country are considering whether and how to restructure the electric industry to allow consumers to purchase electricity from competing suppliers rather than from the traditional regulated monopoly structure. The Governor’s 2020 Energy Commission is considering restructuring in Florida.
The extent to which implementation of retail competition benefits residential consumers is unclear. Benefits in the form of lower rates are not guaranteed to residential ratepayers, who are at a disadvantage since they do not purchase enough electricity to be as attractive to competitors as industrial customers. If the outcome of restructuring is left entirely to the marketplace, residential consumers are likely to be the last class of customers to benefit if they receive any benefits at all.
If the electric industry in Florida is restructured, safeguards should be adopted that ensure just, reasonable and affordable rates and high-quality service for residential customers under retail competition. The legislature should ensure that residential ratepayers receive equitable and simultaneous benefits, including rate reductions, equal access and better service, from retail competition.
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| Supports electric deregulation that specifically benefits the consumer. |
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| Opposes an increase in basic consumer phone rates. |
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Candidate Response: Patrick Howell
More competition in this area will bring down utility rates. Monopolies must be broken up, and phone companies should be competing for the right to provide local service to the residents of any given community. However, in the provision of electrical utilities, we must be very careful to assure that what has happened in California will not be repeated here. Therefore, we must take a very cautious approach when dealing with the provision of necessary utilities like electricity, oil and gas.
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| Supports electric deregulation that specifically benefits the consumer. |
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| Opposes an increase in basic consumer phone rates. |
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Candidate Response: Sheri McInvale
I do not support the deregulation of utility industry. One only has to look at what happened in California after deregulation. I am pro consumer and certainly have concerns about the lasting effects of our economy and the financial increases for certain necessary services. The mission of SENIORS FIRST, Inc. in Orange County is to enhance the quality of life of our older adults and help them to remain independent and living in their own homes for as long as possible. This is so critical for healthy communities. In that vain, I refer to the previous answer and say that we must increase funding for these types of programs that have as their mission to assist seniors in need.
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| Supports electric deregulation that specifically benefits the consumer. |
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| Opposes an increase in basic consumer phone rates. |
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