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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: Jeffrey Atwater
There is a tremendous need to establish additional energy generating capacity in Florida. Likewise, we need to ensure that all Floridians have the lowest phone service charges possible by creating a good competitive environment for service providers to fight for our trust and our business.
The time is now to get moving on new energy generating capabilities and stop focusing on how we protect those who wish to limit generating capacity to keep utility rates high. By allowing for competition within the energy generation industry in Florida (while keeping a eye on environmental safety standards) we can ensure that Floridians will have clean, safe, abundant and much more affordable utility services for years to come!
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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 Butterworth
During my past 16 years as attorney general I led the charge to protect the citizens of the State of Florida from consumer fraud. Within that time, my offices have sued such companies as BellSouth and MCI over their billing practices. These lawsuits led to multi-million dollar settlements in favor of the citizens of this state. While Attorney General, I was named the “most feared consumer crusader” by a national magazine, and as State Senator, I will continue to fight to protect consumers from unfair and deceptive trade practice. As such, I oppose increases in phone rates and would consider electric deregulation only if it would benefit Florida consumers.
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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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