Legislature to pick new utility watchdog as Florida Power & Light seeks rate hike
As Florida’s largest electric utility company positions itself for a $2 billion increase in its base rates, a legislative committee on Thursday interviewed a single candidate to serve as the watchdog to protect residential customers from being overcharged by the monopoly utility companies.
Richard Gentry, a 70year-old veteran lobbyist who last year represented a utility-backed nonprofit, was questioned for 30 minutes by the Legislature’s Joint Committee on Public Counsel Oversight to fill a vacancy created in January when legislative leaders pushed out the longtime consumer advocate, J.R.
Kelly.
Gentry, whose clients last year included the utilitybacked nonprofit called Floridians for Government Accountability, is the lone candidate after three other applicants withdrew their names. Despite the noshows, the committee had no discussion about reopening the application process and instead moved ahead with its scheduled vote on Tuesday, when it is expected to give the job to Gentry.
“I would aggressively push both water and electric utilities to justify their rates and would take a fine-tooth comb to any rate increase requests, and how they would affect Floridians,’’ Gentry told the committee.
He added that he is qualified because of serving as general counsel of the Florida
Home Builders Association for 24 years and helping to create the state’s affordable-housing trust fund. He said he would “keep a constant eye towards protecting those who might be the least able to afford an increase” but did not mention that his job is to represent all ratepayers.
The job of public counsel is one of the most important but least appreciated in state government. Under state law, the Office of Public Counsel serves as the voice of consumers in electric, water and natural-gas cases that relate to consumer finances.
While the utilities have a team of lawyers and experts to make their case on behalf of their investors, the OPC has a smaller group of statepaid lawyers working on behalf of customers. Unlike many states where the consumer advocate is independent, Florida’s OPC works for the Legislature, which in the last election cycle received more than $4 million in campaign contributions from the utility industry.
Kelly, who was paid $127,000, resigned after 14 years as the lead attorney for the Office of Public Counsel after legislative leaders required him to reapply for his job as director of the office in March of this year. That same month, Florida Power & Light is expected to begin its rate case in which it is asking for about a $2 billion increase in base-rate revenues over the next four years. In 2022, FPL is asking for $1.1 billion, which would be followed by a $615 million increase in 2023, a $140 million increase
in 2024 and a $140 million increase in 2025 to pay for solar-energy projects, the News Service of Florida reported in January.
Kelly, who has been a thorn in the side of the utility companies for years and effectively fought against FPL requests, decided that instead of going through the motions to appease legislators he would resign effective Jan.
14 and allow the legislative committee to appoint his successor. He did not comment for this story but told the South Florida Sun Sentinel that “it was clear that the Legislature’s preference was that someone not serve more than 12 years.”
Four people applied to replace Kelly, but three withdrew their applications. On Thursday, Michael Barry, a staff lawyer in the Florida House of Representatives, was the last to withdraw. He had been recommended by PSC Commissioner Michael La Rosa, a former legislator appointed to the PSC by Gov. Ron DeSantis with the backing of the utility industry.
La Rosa’s relationship with Barry, and a letter that he wrote criticizing the Office of Public Counsel last year has raised questions about whether La Rosa supports the independent analysis of the OPC and its staff.
Now, consumer advocates and legislators are raising questions about whether the office will remain independent enough to push for lower rates in the face of industry pressure.
“This is a result of the direct relationship to the political power of the investor-owned utilities in Florida,’’ said Layne Smith, associate state director of AARP Florida, which has represented customers before the PSC.
In the last election cycle, FPL was among the largest contributors to legislative campaigns with $3.1 million in donations, according to reports filed with the Florida Division of Elections. Included in the 2020 contributions was $1.5 million to the Florida Republican Senatorial Leadership Committee, headed by Senate President Wilton Simpson, R-Trilby, who was tasked with securing the Republican majority in the Senate.