State Legislators Plan Crackdown on Duke Energy, Other Utilities

A repeat of Duke Energy’s recent overcharging of customers following a change in its meter-reading routes won’t happen again if two Republican legislators have their way.

State Sen. Jack Latvala, R-Clearwater, and Rep. Kathleen Peters, R-South Pasadena, have announced plans to introduce legislation next year that’s meant to put tougher regulations in place for electric companies that operate in Florida.

“I think it is important that consumers are protected by ensuring that all billing charges are transparent with strict accountability,” Peters was quoted in a media release as saying.

The bill, which is in draft form at this time, addresses four points, according to the media release:

• “Prohibit any utility company from charging customers a higher rate because of an increase in usage attributable to an extended billing period;
• Clarify how much a utility company can receive regarding deposits and how the amount must be calculated;

• Require anyone who lobbies any member of the Public Service Commission Nominating Council, whether a legislator or a non-legislator, to be registered in accordance with section 11.045, Florida Statutes; and
• Require any money received by a utility company for implementation of demand-side renewable energy resources, to be used solely for those purposes.”

Recent events, including the overcharging that resulted from Duke Energy’s recent route changes, prompted the crafting of the legislation.

“Utility companies should never have more power than the consumers they are supposed to serve,” Latvala was quoted in the release as saying. “This bill will address many of the issues faced by electric consumers in Florida. It will also go a long way to curbing the ‘back-door’ lobbying efforts of those who represent clients before the Public Service Commission and try to influence the selection of the new Public Service Commission members.”

Earlier this summer it was discovered that some Duke Energy customers might be charged at a higher rate for electricity use through no fault of their own. A longer billing cycle on a one-time-basis was created for some customers affected by the route changes. As a result, some customers saw their cycle increase by 12 additional days.

The problem with Duke’s plan, Latvala said at the time, was that those who saw additional days on their bill were also likely to see higher per-kilowatt-hour electric costs. The utility charges $11.34 per 100 kilowatt hours for the first 1,000 kilowatt hours used. That rate goes up to $13.70 for each additional 100 kilowatt hours over 1,000.

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See Also:

• Duke Energy Says it Will Issue Credits
• Duke Energy is Putting the ‘Squeeze’ on Customers Senator Says
• Duke Energy Has to Answer for Rate Charges