Citizens of Florida v Florida Public Services Commn Florida Court Up
Citizens of Florida v. Florida Public Services Commn, Florida Court Up... Legal Advocacy
OPC sued, arguing that the FPSC cannot approve this settlement, which was opposed by OPC and sets rates that are not fair, just and reasonable. .
AARP’s friend-of-the-court brief in the case supported OPC’s claims and argued that this case sets a dangerous precedent that puts older people at risk of paying unaffordable utility rates. Utility costs typically consume a significant share of older people’s household budget. The brief also argued that the settlement violates due process because the public notice about the rate increase did not include the additional cost recovery and rate increases that the commercial and residential customers agreed to, a greater share of which will be shifted onto the residential ratepayers.
The state’s top court disagreed. It found that Florida law allows the FPSC to approve settlements that the OPC claims are unfair to residential ratepayers and that were not contemplated in the public notice of the rate increase. The court also deferred to the commission’s findings, which it held were supported by the evidence presented at the hearing.
Florida Supreme Court Upholds Anti-Consumer Utility Rate Setting Action
Read AARP's (PDF) AARP’s brief supported overturning a settlement in a rate paying case because it fails to safeguard consumers. The Supreme Court of Florida disagreed.Background
The Florida Public Utility Commission (FPSC) is required to set utility rates that are fair, just, and reasonable. When a utility petitions for a rate increase, the utility must publish a public notice to inform interested parties what increases will be considered and how the rates will be divided among commercial, residential, consumer, and other classes of ratepayers. The Commission holds public hearings and considers evidence and arguments about the need for the rate increase. The Office of the Public Counsel (OPC) is a taxpayer funded consumer advocate that represents the interests of citizens before the FPSC. In this case, Florida Power and Light sought a rate increase that was initially opposed by OPC and commercial and retail ratepayers. Just before the required hearing was held, Florida Power and Light and the commercial and retail rate payers announced a settlement that increases rates by millions of dollars more than Florida Power and Light initially sought. It also shifts a greater share of the costs onto the residential ratepayers. The FPSC approved the settlement over the strong objections of the OPC.OPC sued, arguing that the FPSC cannot approve this settlement, which was opposed by OPC and sets rates that are not fair, just and reasonable. .
AARP’s friend-of-the-court brief in the case supported OPC’s claims and argued that this case sets a dangerous precedent that puts older people at risk of paying unaffordable utility rates. Utility costs typically consume a significant share of older people’s household budget. The brief also argued that the settlement violates due process because the public notice about the rate increase did not include the additional cost recovery and rate increases that the commercial and residential customers agreed to, a greater share of which will be shifted onto the residential ratepayers.
The state’s top court disagreed. It found that Florida law allows the FPSC to approve settlements that the OPC claims are unfair to residential ratepayers and that were not contemplated in the public notice of the rate increase. The court also deferred to the commission’s findings, which it held were supported by the evidence presented at the hearing.