77-V VA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BOYNTON
BEACH, FLORIDA, TO THE FLORIDA PUBLIC SERVICE COMMISSION
PROTESTING THE INVERTED RATE STRUCTURE ESTABLISHED BY THE
COMMISSION IN REGARD TO THE RATES OF FLORIDA POWER AND
LIGHT COMPANY.
WHEREAS, Florida Power and Light Company applied to the
Florida Public Service Commission for rate relief 'October 8, 1976
and
WHEREAS, the Florida Public Service Commission by order
dated June 16, 1977, awarded Florida Power and Light Company an
overall rate increase of approximately 16%; and
WHEREAS, In implementing the approximate 16% average rate
increase, the Florida Public Service Commission ordered Florida
Power and L~ght Company to use an inverted rate structure rather
than the traditional declining block method; and
WHEREAS, the inverted rate structure established a uniform
charge per kilowatt hour up to 750 kilowatt hours per month (the
so called life-line rate) and a higher rate for kilowatt hours
used in excess of 750 kilowatts per month; and
WHEREAS, the effect of this inverted rate structure places
a disportionate burden on some users to bear a greater percentage
of the rate increase than other; and
WHEREAS, the apparent purposes of the inverted rate
structure are:
(1) to subsidize low-income families on the assumption
that they use less energy than others and therefore will pay a
lesser percentage of this rate increase awarded; and
(2) to create an incentive to conserve energy by raising
the kilowatt hour charge when consumption exceeds 750 kilowatts
per month. This based on the assumption that 750 kilowatts per
month is the appropriate amount of monthly residential use while
consumption in excess of this amount is wasteful and should be
discouraged by higher rates; and
WHEREAS, the City Council of the City of Boynton Beach
objects to the inverted rate structure as established because as
to objective:
(1) No dat~ was submitted to the commission indicating fha
low income families use less energy than other families; and
2) no data was'submitted to the commission which would
justify the conclusion %hat the "necessary" amount of monthly
residential consumption in excess of this amount is wasteful; and
WHEREAS, the inverted rate structure has a substantial
adverse impact on many of the citizens of the City of Boynton
Beach, FLorida.
NOW~ THEREFORE~ BE IT ~SOLVED BY THE CITY COUNCIL OF THE
CITY OF BOYNTON BEACH, FLORIDA, AS FOLLOWS:
Section 1: That Florida Public Service Commission is here-
by requested to reevaluate and study the advisability of implement
an inverted rate structure after competent substantial evidence
has been presented indicating the real economic and energy impacts
of such a rate structure.
Section 2: That while this matter is under study that the
Florida Public Service Commission order Florida Power and Light
ComPany to implement its recently granted rate increase by the
traditional declining block rate structure.
~~1977
PASSED AND ADOPTED this ~- day of ~3~, .
CITY OF BOYNTON BEACH, FLORIDA
ATTEST:
(Corp. Seal)
C~
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