City Tries To Block FPL Rate Hike Request
Posted: 6:21 pm EDT April 15, 2009
VOLUSIA COUNTY, Fla. -- One of Volusia County's smallest cities is challenging the giant Florida Power and Light Company. The City of South Daytona is trying to block FPL's request for a rate hike and drop the utility as its power providerCity leaders say FPL wants the rate hike to guarantee a profit of 12.5 percent for its shareholders.The city says in tough times like these, that is too high. So they will try to stop any increase in power rates.Rob Sarricchio says he is the kind of guy who will do things to cut expenses. He tries to save money wherever he can. But he's frustrated by things that are out of his control."Anything that is costing more money when it really shouldn't b, definitely doesn't sit too well," he said.Sarricchio is among a growing number of people in the city of South Daytona frustrated with the Florida Power and Light Company."How can you justify a rate increase, particularly during these times?" asked WFTV reporter Berndt Petersen."They must be insulated not to know what the people of Florida are experiencing right now," responded City Manager Joe Yarbrough.Yarbrough opposes FPL's push for a 20 percent rate hike and the city has officially intervened in the utility's request for the increase to the Florida Public Service Commission. The city is also suing FPL to learn the value of the utility's power lines and substations scattered around the town.South Daytona wants out of its franchise agreement with the power company to form its own utility."There's no magic in electric distribution. There are a lot of municipalities doing it. New Smyrna, Jacksonville, Jacksonville Beach, Orlando," he said.Yarbrough says it's time to take the profit out of electric bills. Sarricchio says if the city can do it, he's in."If somebody can come in and do a better job than FPL, I'd be all for it. That's for sure," he said.An FPL spokesman could not be reached for comment. The Public Service Commission is expected to rule on FPL's request for the rate hike by the end of the year.
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