Utilities Regulation: Governor Charlie Crist Appoints Two New Members to Public Service Commission, Declining Opportunity to Reappoint Two Current Commissioners
On October 1, 2009, Gov. Crist appointed two new members to the Florida Public Service Commission (PSC), effective January 1, 2010.
Gov. Crist selected David Klement of Bradenton and Benjamin “Steve” Stevens of Pensacola from the list of six nominated by the PSC Nominating Council. By appointing Mr. Klement and Mr. Stevens, the governor also was declining to reappoint current PSC Chair Matthew Carter and current Commissioner Katrina McMurrian, both of whom were on the nominating council’s list.
Mr. Klement is affiliated with the Institute for Public Policy and Leadership at the Sarasota-Manatee campus of the University of South Florida. He spent most of his career in various editorial positions with The Bradenton Herald. He told reporters that he emphasized his lack of connections with utilities or the regulatory process when Gov. Crist interviewed him for the job.
Mr. Stevens is an accountant who previously served as budget director of the Escambia County Sheriff’s Office.
Then-Gov. Jeb Bush appointed Commissioners Carter and McMurrian to the PSC in 2006 for terms that expire on January 1, 2010. On October 5, 2009, Commissioner McMurrian announced that she was resigning from the PSC, effective immediately.
In recent months, the PSC has been the focus of controversies surrounding contact between PSC members and staff and companies that had rate cases pending before the PSC. According to observers, Gov. Crist’s refusal two reappoint two sitting commissioners and his decision to replace them with newcomers to the utility regulation process may simply be an effort to address the ethical issues or it may signal his desire to push the commission in what he considers a more consumer-friendly direction. He stated that he did not expect the new commissioners to be popular with regulated companies. When making the appointments, Gov. Crist said, “The entire utility establishment is not happy with your governor today. That’s OK. I don’t work for them.”
These changes to the PSC are occurring while two major rate cases are pending. Both Florida Power & Light Company and Progress Energy Florida, Inc. are seeking PSC approval for rate increases of approximately 30 percent. The day after announcing his commission appointments, Gov. Crist urged the PSC to postpone a final decision on the rate increases until after the two new commissioners take office.
State Legislature: Senate President Revises Committee Membership
On October 2, 2009, Senate President Jeff Atwater revised the membership of several Senate committees. Some changes in committee assignments were necessary after the resignation of Sen. Ken Pruitt (R-Port St. Lucie) and the death of Sen. James E. “Jim” King, Jr. earlier in the year. The Senate committee changes were not as dramatic as the changes in House committees announced by Speaker Larry Cretul (R-Ocala) in September 2009.
Newly elected Sen. Joe Negron (R-Stuart), who was elected to replace Sen. Pruitt in a special election on August 4, 2009, will chair the Senate Committee on the Judiciary, replacing Sen. Lee Constantine (R-Altamonte Springs). Sen. Alex Diaz de la Portilla (R-Miami) will chair the Communications, Energy, and Public Utilities Committee, succeeding the late Sen. King. Sen. Diaz de la Portilla is the Senate Majority Leader, but did not chair any committees in 2009.
In his memo announcing the committee changes, Sen. Atwater also noted that further changes will be required when the special election to fill Sen. King’s seat is certified. Former House Speaker John Thrasher (R-St. Augustine) won the special primary election on September 15, 2009 and faces only write-in opposition in the October 6, 2009 special general election.
Economy: Mixed Signals on Florida’s Economic Recovery
A survey released by the University of Florida Bureau of Economic and Business Research on September 29, 2009 showed a slight improvement in consumer confidence but also pointed to weak retail activity during the holiday season.
Consumer confidence rose in September to a 74 rating, reflecting a total increase of seven points during August and September. According to the bureau’s director Chris McCarty, “there’s optimism in the index.”
Despite increases in confidence about the overall economy, Florida consumers apparently remain troubled by their personal finances. The rating for perception of personal finances was at 44 points in September, unchanged from August, and only five points higher than the December 2008 all-time low of 39 points. According to Mr. McCarty, “People still don’t feel good about their bank accounts,” which may indicate weak holiday retail performance.
State sales tax collections continue to exceed revenue forecasts, but state economists caution that the tax collections do not by themselves indicate an improving economy. On September 29, 2009, Amy Baker, Director of the State of Florida’s Office of Economic & Demographic Research, announced that August sales tax collections were $32.6 million higher than expected, but the increase was largely attributable to the “Cash-for-Clunkers” program.
State revenue totals have exceeded forecasts for the last five months, but Ms. Baker noted that many revenue sources came in below their forecasts. She described the revenue results as good news, but added, “We can’t draw too many conclusions from it about the recession or the state economy.
Marnie George of The George Group assists Foley on a variety of government and public policy matters as a consultant.
Public Policy News Alert is part of our ongoing commitment to providing up-to-the-minute information about pressing concerns or industry issues affecting our clients and our colleagues. If you have any questions about this alert or would like to discuss these topics further, please contact your Foley attorney or any of the following individuals:
Marnie George
Tallahassee, Florida
850.513.3398
[email protected]
Michael P. Harrell
Tallahassee, Florida
850.513.3373
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Robert H. Hosay
Tallahassee, Florida
850.513.3382
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Jonathan P. Kilman
Orlando, Florida
407.244.3256
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Thomas J. Maida
Tallahassee, Florida
850.513.3377
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Leonard E. Schulte
Tallahassee, Florida
850.513.3380
[email protected]