R7J-Strongly Oppose Proposed 16 Percent Base Rate Increase By FPL -Wolfson-OFFICE OF THE CITY ATTORNEY
JOSE CITY ATTORNEY
TO: MAYOR MATTI HERRERA BOWER,
MEMBERS OF THE CITY COMMISSION
KATHIE BROOKS, INTERIM CITY AGER
FROM: JOSE SMITH
CITY ATTORN~
L-" DATE: October 24,2012 '
SUBJECT: A RESOlUTION STRONGlY OPPOSING THE PROPOSED 16%
BASE RATE INCREASE BY FlORIDA POWER AND LIGHT
COMPANY ("FPl'*)
Pursuant to the request of Commissioner Jonah Wolfson, the attached Resolution strongly
opposing the proposed 16°/o base rate increase by FPL has been drafted and is submitted for
consideration by the Mayor and City Commission at the October 24, 2012 City Commission
meeting.
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RESOLUTION NO. ______ _
A RESOLUTION OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, STRONGLY OPPOSING THE PROPOSED
16°/o BASE RATE INCREASE BY FLORIDA POWER
AND LIGHT COMPANY ("FPL").
WHEREAS, FPL provides electricity within the City of Miami Beach
and its residents have no alternative but purchase services from and
the
WHEREAS, businesses in the City of Miami Beach must also purchase electric
service from FPL; and
WHEREAS, the City of Miami Beach and its residents and businesses continue to a
depressed economy with limited resources wherein jobs are being lost, incomes and revenues
are static or declining, and home mortgages are being foreclosed, requiring the City, its
residents, and businesses to budget accordingly; and
WHEREAS, in March 2, FPL proposed a 16% base rate increase in order to,
other ensure up to a 12,5°/o return on equity for its shareholders; and
WHEREAS, FPL benefits from more pass-through cost recovery mechanisms any
regulated utility in the United States, including the Storm Recovery Surcharge,
Fuel Cost Recovery pass-through, the Environmental Cost Recovery Clause pass-
through, the Capacity Cost Recovery Clause pass-through, the Conservation Cost Recovery
pass-through, and the Nuclear Cost Recovery Clause pass-through, which mechanisms
increase FPL's current flow without the scrutiny employed in a traditional rate case; and
WHEREAS, a significant percentage of rates paid by FPL customers are
pursuant to these cost recovery mechanisms, instead of through base and
WHEREAS, during these difficult economic times, a 16% increase in
present significant challenges individuals, small businesses, schools, and local "",.."·'"" .. "
further exacerbate the current economic downturn and necessitate greater budget cuts;
WHEREAS, the Mayor and City Commission of the City of Miami Beach strongly oppose
the proposed 16% base rate increase by FPL
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that
Section i . The foregoing facts and recitations contained in the preamble this
Resolution are hereby adopted and incorporated by reference as if fully set forth herein,
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;::,e.cucm 2. The Mayor and the City Commission of the City of Miami beach, Florida
strongly oppose the proposed 16% base increase by Florida Power and light Company.
PASSED AND ADOPTED this_ day of October, 2012.
ATTEST:
······················•······-··---------
Rafael Granado
City Clerk
Matti Herrera Bower
Mayor
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