After utility commission purge, is it time for consumer uprising?
Message seems clear: Kowtow to FPL, or else

Article Courtesy of The Sun Sentinel

By Michael Mayo

Published July 3, 2010

 

Maybe you missed it, but something truly outrageous happened last week.
Two more members of the state regulatory board that sets utility rates were given the boot. That means four of five Public Service Commission members have been purged since they had the spine to reject nearly all of FPL's rate-hike request in January.

 
As bloodless coups go, this has been pretty swift and ruthless.

 
And it could cost us all dearly in the long run, as the state's major electric companies are sure to come back for hefty rate hikes with a more compliant PSC seated.
"The whole thing is so bogus, it makes me want to vomit," said Nancy Argenziano, one of the ousted commissioners.

 
The Brooklyn-born Argenziano, a former Republican legislator, has never been known to mince words. She had some choice ones in an interview on Friday, lambasting the "corrupted" legislative leadership for "cowardice" and continuously siding with utilities over constituents.

  
"Now I understand why some people say that sometimes revolutions are necessary," said Argenziano. "What this should tell people is that things have gotten so tilted, and so blatant, and the leadership doesn't think anyone cares. The arrogance is stunning, because they own the process."
Argenziano and Nathan Skop didn't even get the courtesy of interviews with the legislative-controlled PSC nominating council to keep their seats. Instead, a slate of fresh finalists, many with ties to utilities, will be sent to Gov. Charlie Crist for appointment.

  
Argenziano said Crist should make a statement by refusing to select anyone from the list. Crist originally appointed Argenziano and Skop, an engineer, for terms that started in 2007.

  
"If he picks from the list, it's a slap in his own face," Argenziano said. "He should ask the Legislature to start again and revamp the nominating council."

  
The latest upheaval comes after the state Senate rejected the confirmation of Crist appointees David Klement and Ben Stevens in April. During their brief stints, they voted against rate hikes for FPL and Progress Energy, the state's two biggest power companies.

  
Klement, a former journalist, and Stevens, an accountant, were outsiders appointed late last year, following revelations about cozy relations between utilities and PSC commissioners and staffers.
"It's pretty clear which way the wind is blowing," Klement told me in April. "The Senate leadership doesn't want people who are objective and fair. They want commissioners who favor the utilities."
At the time, Klement also issued a warning to consumers: "Hang onto your wallets."

  
Argenziano also predicts rate hikes as early as next year.

 
She lamented that fair-minded commissioners who simply want to keep a balance between the needs of ratepayers and utilities are seen as "pro-consumer."

  
"This is what happens when you have utilities who have gotten their way for 30 damn years," Argenziano said. "They weren't used to hearing the word 'No.'"

  
Argenziano said it's time to revamp the PSC selection and retention process by removing legislators, who are too willing to act as henchmen for the utilities.

 
"It's impossible for the PSC to be independent when it's under the control of the Legislature," Argenziano said. She told how legislators with pet projects or favored utilities would call asking for certain outcomes in her first year.

 
She doesn't know if an elected PSC is the answer, because big utility money could simply steamroll the process by bankrolling certain candidates.

 
"That scares me, but it might be better than the system we have now," Argenziano said.
What she proposes is a blended appointment/retention system, similar to what Florida has for high-level judges. An independent nominating commission could vet candidates and send a list of finalists to the governor for appointment.

 
Then, voters would decide whether to retain sitting commissioners for future terms.
Legislative leaders will never go for a dilution in power. That means any changes will have to go the constitutional amendment route, with a citizen petition drive.

 
We already have the Florida Hometown Democracy movement and its growth-curbing Amendment 4 on this year's statewide ballot in response to the unholy alliance between developers and local politicians.

 
Given the latest PSC massacre, it might be just a matter of time until we see a new grassroots movement against the utilities and legislators. Hometown Power Play has a nice ring.


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