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Bills would put FGUA under Public Service Commission control

By Staff | Feb 25, 2009

State Sen. Garrett Richter and State Rep.? ?Matt Hudson say they have both filed legislation to bring oversight to? ?utilities in Golden Gate City and Lehigh Acres.

The Florida Governmental Utilities Authority? (?FGUA?) ? was created under the Florida Inter-local Corporation Act of? ?1969.? ?Originally this act was intended to allow for the formation of corporations? ?to acquire failing local utilities.?

The corporation was? ?charged with bringing the failing utility up to a standard that the local municipality or county would then acquire.? ?This period of? ?rebuilding and improvement was accelerated by an exemption of oversight by the Florida Public Service Commission.? ?In many cases around the state the original act worked as intended utilities were acquired,? ?improved and then re-acquired by local government.

However,? ?in the case of Golden Gate City and Lehigh Acres, the local government has yet to re-acquire the utilities as they are not up to their standards, the two state officials said.

  • They said the? result is “less than satisfactory” for the residents as they now have a functioning utility but the rates imposed upon them do not have Public Service Commission oversight.?

The rates for these utilities are in fact some of the highest in the entire state of Florida, they said.? ?The only group that has oversight on the rates is the same group proposing them, they noted.

The Utilities? ?Oversight Bill Filed by Richter and Hudson? ?is relatively simple and straight forward.

They said it is intended to maintain the intent of the original? ?1969? ?legislation,? ?as there is still a need for this? ?in some communities with faltering utilities.

It would provide an exemption from Public service commission oversight for newly acquired utilities for a period of? ?48? ?months after acquisition,? ?allowing the utility to make the improvements necessary to ensure consumers have a utility that is providing basic health and sanitation, they said.

the bills would require public service commission oversight for those utilities not re-acquired by the local municipality? ?/? ?county after the? ?48-month grace period,? ?providing consumers with rate oversight and fairness. It will ensure that the consumers? ?/? ?customers are being treated fairly and equitably by ensuring rates are commensurate with the service provided, the said.?

“These are challenging economic times for my community and I want to ensure that citizens get treated fairly and that they get charged a rate that is fair and that has been objectively reviewed, ?”? Hudson said.? ?”The citizens of these areas have spoken loud and clear and I hope to provide the fairness and equity that they? ?deserve?”? Richter said.

Sen. Garrett Richter (R Naples?) ?represents District? ?37? ?incorporating Collier and Lee county and Rep. Matt Hudson (R Naples?) ?represents District? ?101? ?incorporating Collier and Broward county.?