AARP: Yes. However, the residential customer charge should not be increased in order to expand the portion of fixed distribution costs recovered therein. Important public policy reasons dictate no change to fixed monthly customer charges, including maintaining control over monthly bills, increasing the customers’ affordability of services to low-usage customers, encouragement of conservation habits and improved financial payback on energy efficiency investments that are made by residential customers. FPL’s No position. FEA: FIPUG: Adopt position of SFHHA FRF: No, proposal to shift $2.00 from energy charges to customer charges is not FPL’s appropriate and should not be approved. Larsons: No. SFHHA: No position. Sierra Club: No position. Walmart takes no position. Walmart: Staff: Staff has no position pending evidence adduced at the hearing. ISSUE should the change in revenue requirement be allocated to the customer classes? FPL: The increase should be allocated as shown in MFR E-8. FPL followed Commission guidance and limited revenue increases to each class to no more than 150% of the system average in total including clauses. The result is all classes are moved closer to parity to the greatest extent practical. (Cohen) The revenue requirement approved by the Commission should be applied in OPC: accordance with the long-standing practice that in designing new Commission’s rates: (1) to the extent possible, consistent with other parameters, the revenue increase should be allocated so as to bring all rate classes as close to parity as practicable; (2) no class should receive an increase greater than 1.5 times the system average increase in total; and (3) no class should receive a decrease. See, Order No. PSC-09-0283-FOF-EI at pp. 86-87. AARP: AARP supports position on this issue. FPL’s FEA: If the Commission orders an overall revenue increase, proposed gradualism FPL’s constraints of no more than 1.5 times the system average increase and no less than 0.5 times the system average increase is appropriate, but should be calculated on the basis of total class revenue, including all surcharges except for the fuel
AARP: Yes. However, the residential customer charge should not be increased in order to expand the portion of fixed distribution costs recovered therein. Important public policy reasons dictate no change to fixed monthly customer charges, including maintaining customers’ control over monthly bills, increasing the affordability of services to low-usage customers, encouragement of conservation habits and improved financial payback on energy efficiency investments that are made by FPL’s residential customers. FEA: No position. FIPUG: Adopt position of SFHHA FRF: No, FPL’s proposal to shift $2.00 from energy charges to customer charges is not appropriate and should not be approved. Larsons: No. SFHHA: No position. Sierra Club: No position. Walmart: Walmart takes no position. Staff: Staff has no position pending evidence adduced at the hearing. ISSUE should the change in revenue requirement be allocated to the customer classes? FPL: The increase should be allocated as shown in MFR E-8. FPL followed Commission guidance and limited revenue increases to each class to no more than 150% of the system average in total including clauses. The result is all classes are moved closer to parity to the greatest extent practical. (Cohen) OPC: The revenue requirement approved by the Commission should be applied in accordance with the Commission’s long-standing practice that in designing new rates: (1) to the extent possible, consistent with other parameters, the revenue increase should be allocated so as to bring all rate classes as close to parity as practicable; (2) no class should receive an increase greater than 1.5 times the system average increase in total; and (3) no class should receive a decrease. See, Order No. PSC-09-0283-FOF-EI at pp. 86-87. AARP: AARP supports FPL’s position on this issue. FEA: If the Commission orders an overall revenue increase, FPL’s proposed gradualism constraints of no more than 1.5 times the system average increase and no less than 0.5 times the system average increase is appropriate, but should be calculated on the basis of total class revenue, including all surcharges except for the fuel
06885-2016_16-0341.ord.docx