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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: Bob Henriquez
I supported and opposed various attempts to address the issue of creating competition in our local phone markets. I think it is a very complex issue that requires an open mind from both business interests and consumer groups. I believe the best way to protect consumers is to bring them into the legislative process on this and other issues. The ground rules should be that any piece of legislation that is passed does not increase consumer’s phone bills. Any increase in phone rates must be offset by a lowering of some other portion of the bill. In addition, there must be some assurance that the phone companies will not utilize a short window of good will to then raise rates at will in the future.
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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: Hector Vila
At this time I would not consider going into deregulation. I think that there is a track record that shows us to be one of the lowest energy cost states. If in the future the utility company wants to increase either electric or telephones they would have to show reasons and proof documents to make the increase a fair and necessary step. I oppose an increase in basic consumer phone rates, especially for the seniors.
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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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