Floridians in Martin County should expect to pay 6% or more each month on their Florida Power and Light bills next year. The County Commission has passed a franchise fee hike on electric bills to collect revenue to pay for maintenance of roads, buildings, parks, drainage and other infrastructure. The fee implementation is a consumption based fee, in other words, an additional tax on energy usage -- a basic human need that most cannot avoid. Higher users will pay a higher dollar amount; lower users will contribute less.
While Martin County may earn an additional $9.1 million annually because of the increase in the fee, studies show that it will be doing so on the backs of lower income customers electric bills. Across the board, studies show that lower income households consume more energy while contributing a much higher percentage, as much as 4 times the average household, of their monthly household income to energy bills.
Despite the obvious problem of not having enough expendable income, low income customers typically do not have adequate access to incentive programs that make their homes more efficient. Low income renters have no financial incentive, or even permission, to improve the property they rent even if the income was there to support them. Recall in November 2014, the Florida Public Service Commission (FPSC), eliminated 90% of the programs designed to help ratepayers increase energy efficiency and eliminated the solar rebate program.
The result of the elimination of the programs, in Florida Power & Lights territory, a slight decrease in energy bills for all consumers and a request to build a $1.4 Billion natural gas power plant in Okeechobee.
If Martin County is going to use its franchising rights to cross subsidize infrastructure improvements on the backs of energy customers it should also look to help improve the energy profile of the County at the same time. The County has equal rights to request of their power provider to collect and distribute a fee to help low income rate payers get quality access to energy efficient appliances, NEST thermostats, HVAC Duct repair, insulation and perhaps even install solar panels.
The additional fee could add as much as $6 to the average 1,200 kWh utility bill. Just under the cost of a Big Mac meal from McDonalds. For many Floridians that might mean one less Venti White Mocha from Starbucks, but for a low income Floridian that is likely a single meal.
To be clear, we do not support the County Commissions decision to fill a hole in their budget through electricity rates.
