|
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.
|
|
|
|
|
| Supports electric deregulation that specifically benefits the consumer. |
|
 |
|
|
| Opposes an increase in basic consumer phone rates. |
|
 |
|
|
Candidate Response: Lee Cannon
As we saw from the events that unfolded recently in California, deregulation of public utilities can lead to huge rate increases, rather than rate reductions. We must ensure that any effort to deregulate utilities includes a mechanism to protect consumers from astronomical rate hikes and service interruptions. In those instances where deregulation directly benefited the consumer, I would be inclined to support those measures.
|
|
|
|
|
| Supports electric deregulation that specifically benefits the consumer. |
|
|
|
|
| Opposes an increase in basic consumer phone rates. |
|
|
|
|
Candidate Response: Mike Fasano
During the nearly eight years I have been a state legislator I have fought Aloha Utilities which has attempted to impose enormous water rate increases onto its customers, most of which are retirees. In addition to numerous appearances before the Florida Public Service Commission on behalf of my constituents I have sponsored legislation that has taken away what until that time had been the legal right of utilities to forever collect legal costs associated with rate cases, even after the costs of those rate cases have been recovered. During the 2002 session of the Florida Legislature I publicly opposed and voted against the proposed increase in local telephone rate (HB 1683). On March 26, 2002 I sent a letter to Governor Jeb Bush urging him to veto this legislation, which he ultimately did.
|
|
|
|
|
| Supports electric deregulation that specifically benefits the consumer. |
|
|
|
|
| Opposes an increase in basic consumer phone rates. |
|
|
|
|
|