Joe Garcia Documentation Memo 16201 SW 95 Ave Suite 100 Miami, FL, 33157 info@romeroroses2012.com th TO: Interested Parties FROM: Romero Roses for Congress DATE: July 27, 12 Documentation of Joe Garcia's Record Supported Rate Increases on Public Service Commission As a regulator on the Florida Public Service Commission, Joe Garcia voted at least twelve times to approve rate hikes for Florida families. Below is a detailed description of each of the rate hikes Joe Garcia supported. 1. In a Public Service Commission meeting on May 16, 2000, the Commission approved a "mid-course correction to its currently authorized fuel and purchased power cost recovery factors" for Florida Power Corporation, Florida Power & Light Company and Tampa Electric Company. No commissioners dissented in the vote, and Chairman Garcia was present and oversaw the vote. Florida Power & Light estimated that the rate increase would bring in $234.7 million, Tampa Electric estimated the increase would bring in $28.9 million and Florida Power estimated the increase would bring in $62.1 million. [Florida PSC, 5/16/2000, p.57; Palm Beach Post, 5/17/2000; St. Petersburg Times, 5/17/2000] In a Public Service Commission meeting on June 20, 2000, the Commission approved a "petition for approval of a pre-pay residential service experimental rate by Florida Power & Light Company." The program was designed to help low-income customers avoid service charges for their utilities, but participants in the program were expected to see an eight percent hike in their electric utility bills. Commissioner Jaber dissented and Commissioner Garcia participated in the vote. The Fort Pierce News noted that Commission Chairman Joe Garcia supported the pilot program and its rate hike. -?That extra cost needs to be borne by those who are going to use it,' said commission Chairman Joe Garcia, who favors the project. ?It's an 8 percent cost adjustment.'? [Florida PSC, 6/20/2000, p.26; Fort Pierce News, 6/30/2000] In a Public Service Commission meeting on June 24, 1997, Florida Power Corporation petitioned for an expedited approval of a settlement agreement with Lake Cogen, Ltd., a power plant north of Orlando. The Commission made four votes on the deal, all of which Garcia approved. Specifically, Issue 2 in the meeting minutes asked -Should the Settlement Agreement between Florida Power Corporation and Lake Cogen, Ltd. (Lake) be approved for cost recovery?? Garcia voted to approve that item, and it passed with a 3-2 vote. [Florida Public Service Commission, 6/24/1997, p.9-11] In a Public Service Commission meeting on April 1, 1997, Florida Power Corporation petitioned for approval of a negotiated contract with Pasco Cogen, Ltd. Garcia voted with the majority in a 3-2 decision to accept the contract and the subsequent rate hikes. [Florida Public Service Commission, 4/1/1997 (pgs. 5-7)] Then he voted allowed Florida Power to raise rates on its 1.3 million customers to cover the expenses from this $17.3 million lawsuit. The average customer would see a 40-cent increase on each month's utility bill. [The Tampa Tribune, 4/3/1997] In a Public Service Commission meeting on May 4, 1999, the Commission approved a Lindrick Service Corporation application to implement a two-step increase for 2. 3. 4. 5. 2 of 7 wastewater rates in Pasco County. Commission Chairman Garcia voted to allow the rate increase. [Florida Public Service Commission, 5/4/1999 (pgs. 34-35)] Garcia's vote allowed the utility to increase rates by 60 percent, which would increase the average customer's water bill by over $10. [St. Petersburg Times, 5/5/1999] 6. In a Public Service Commission meeting on May 6, 1997, the Commission approved a rate increase application for United Water to raise rates for customers in Duval, Nassau and St. John's counties. Garcia approved the rate hike. [Florida Public Service Commission, 5/6/1997 (pgs. 81-94)] United Water raised $4.7 million off the rate hike. Residents saw their water rates rise by 32.4 percent, and sewer rates rose by 14.6 percent. Richard H. Harlan Jr., an affected resident in Fiddler's Marsh, said: -I'm not sure you could print what I think about [the rate hike.] They're the biggest bunch of highway robbers. ... I think its absolutely outrageous the Public Service Commission would approve any increase.? [Florida Times-Union, 5/10/1997] In a Public Service Commission meeting on July 31, 1996, the Florida Public Service Commission approved a rate increase for Southern States Utilities. The St. Petersburg Times said the hike was -what some have called the most contentious case ever to come before the PSC.? At least 106 votes were taken in the meeting which together were estimated to raise rates by $7.9 million for the utility. Garcia dissented against one of the votes where the PSC's majority opinion was that the SSU's water quality was only -marginally satisfactory.? Deputy Public Counsel Charlie Beck said, "They're taking rates that are already hurting people, and they're going to increase them. There's going to be a substantial rate increase.? [Florida Public Service Commission, 7/31/1996; St. Petersburg Times, 8/3/1996] In a Public Service Commission meeting on August 15, 1996, the Commission voted to take steps to put in place a uniform rate structure for Southern States Utilities, described in PSC minutes as -a combination capped and banded rate structure (capband).? Garcia was present and Commissioner Deason dissented. Public Council Jack Shreve said, "I think they still gave them too much of a rate increase... There's a lot in there we still don't understand.? [Florida PSC, 8/15/1996, p.49; St. Petersburg Times, 8/16/1996; Orlando Sentinel, 8/16/1996] In a Public Service Commission meeting on January 4, 1996, the Commission voted against a motion to cap Southern States Utilities maximum interim rates, allowing further rate hikes to go into effect. Garcia voted with the majority. [Florida Public Service Commission, 1/4/1996, p.1-4] The vote allowed Southern States Utilities to implement a temporary $5.9 million rate increase for its customers. [St. Petersburg Times, 1/5/1996] 7. 8. 9. 10. In a Public Service Commission meeting on August 1, 1995, Joe Garcia voted to allow Southern States Utilities to include three additional Florida counties in their statewide rate hike. [Florida Public Service Commission, 8/1/1995, p.46] Customers in the three included counties -- Hernando, Hillsborough and Polk, were due to be hit with a 40 percent rate increase from the Commission's inclusion. [St. Petersburg Times, 8/4/1995] 11. In a Public Service Commission meeting on June 19, 1995, the Commission investigated their jurisdiction over Southern States Utilities and found that the Commission alone could set rates for the utility company. Garcia voted to give the Commission -exclusive jurisdiction over all SSU systems in the State of Florida.? [Florida Public Service Commission, 6/19/1995] The Commission's decision affected about 50,000 customers in Spring Hill, Florida. As a result, the Tampa Tribune estimated that these customers would continue to overpay their utility bills by a combined $1 million per year. [The Tampa Tribune, 6/21/1995] 3 of 7 12. In a Public Service Commission meeting on October 29, 1996, the Commission approved a rate increase application from City Gas Company of Florida. Garcia voted in favor of the rate hike. [Florida Public Service Commission, 10/29/1996, p.19-30] The vote allowed City Gas to raise gas rates by $3.75 million -- the average customer would see a 5.8 percent increase in their monthly gas bill. The increase was expected to take effect December 1996. City Gas Company serves Miami-Dade and Brevard counties. [Miami Herald, 11/1/1996] 13. In a Public Service Commission meeting on August 13,1996, the Commission approved an interim rate increase application by City Gas Company of Florida to go into effect September 1996. Garcia voted in favor of the rate hike. [Florida Public Service Commission, 8/13/1996, p.5] The interim rate increase raised $2.15 million for City Gas, and the average resident saw their gas rates increase by 4.8 percent. [Business Wire, 8/13/1996] Campaign Contributions From Utilities After Garcia left the Public Service Commission, he ran for U.S. Congress in 2008 and 2010. Attorneys and lobbyists who represented the utility companies that benefited from his rate hikes gave Garcia a total of $19,655 in campaign contributions. Each contribution is detailed below. o In 2000, Garcia voted to raise rates on Florida Power and Light Company customers by six at least percent. Florida Power and Light estimated that the six percent rate hike for all users would raise $234.7 million. Lobbyists with three firms that represent Florida Power and Light (Akin Gump, Hogan Lovells and SNR Denton) have donated $3,100 to Garcia. [U.S. Senate, Lobbying Disclosure Act Database, Tampa Electric, link; Florida Power & Light, link] Palm Beach Post, 5/17/2000] Contributor Timothy Ashby Company and Title Location Date 6/30/2010 Amount $500 $300 $2,300 SNR Denton US LLP -- Attorney (Flor- Miami, FL ida Power and Light Co.) Martin Michaelson Hogan Lovells - Attorney (Florida Pow- Washington, 6/29/2010 er and Light Co.) DC Jose H. Villarreal Akin Gump -- Attorney (Florida Power San Antonio, 10/10/2008 and Light Co.) TX $3,100 TOTAL [Federal Election Commission, Individual Contributions, 2008, 2010] o In 2000, while Garcia was chairman of the Public Service Commission, he voted for a 3.2 percent rate hike for Tampa Electric customers, raising $28.9 million for the utility company. The staff of Tampa Electric's lobbying firm, Holland & Knight, LLP, have given Garcia $16,555. [St. Petersburg Times, 5/17/2000; U.S. Senate, Lobbying Disclosure Act Database, Tampa Electric, link] Contributor Company and Title Jorge L. Hernandez- Holland & Knight LLP -- Attorney Torano (Tampa Electric) Location Miami, FL Date 9/13/2010 Amount $300 Daniel Maldonado Holland & Knight LLP -- Senior Policy Washington, 6/28/2010 Advisor (Tampa Electric) DC $500 4 of 7 Contributor Ines MarreroPreigues Tracy Nichols Jose Casal Company and Title Holland & Knight LLP -- Attorney (Tampa Electric) Holland & Knight LLP -- Attorney (Tampa Electric) Holland & Knight LLP -- Attorney (Tampa Electric) (Tampa Electric) Location Miami, FL Date 6/25/2010 Amount $500 $250 $250 $1,105 $1,000 $1,000 $1,000 $300 Miami Beach, 6/25/2010 FL Palmetto Bay, 6/25/2010 FL Miami Beach, 6/24/2010 FL Miami Beach, 6/24/2010 FL Miami Beach, 6/24/2010 FL Plantation, FL 6/24/2010 Miami, FL 6/24/2010 Adolfo E. Jimenez Holland & Knight LLP -- Attorney John M. Hogan Holland & Knight LLP -- Attorney (Tampa Electric) Adolfo E. Jimenez Holland & Knight LLP -- Attorney (Tampa Electric) Joseph G.G. Gold- Holland & Knight LLP -- Attorney stein (Tampa Electric) Jorge L. Hernandez- Holland & Knight LLP -- Attorney Torano (Tampa Electric) Holland & Knight LLP -- Attorney (Tampa Electric) Holland & Knight LLP -- Non-Equity Partner (Tampa Electric) Jose Sirven James O. Davis Miami, FL Tampa, FL 6/24/2010 6/21/2010 $250 $500 $500 $250 $250 $500 $500 $250 Adolfo E. Jimenez Holland & Knight LLP -- Attorney (Tampa Electric) Marilyn Holifield John Halula Holland & Knight LLP -- Attorney (Tampa Electric) Holland & Knight LLP -- Attorney (Tampa Electric) Miami Beach, 9/26/2008 FL Coral Gables, 9/4/2008 FL Key Biscayne, 8/6/2008 FL Miami Beach, 6/30/2008 FL Miami Beach, 6/30/2008 FL Miami, FL 6/30/2008 Adolfo E. Jimenez Holland & Knight LLP -- Attorney (Tampa Electric) Tracy Nichols Holland & Knight LLP -- Attorney (Tampa Electric) Jorge L. Hernandez- Holland & Knight LLP -- Attorney Torano (Tampa Electric) Holland & Knight LLP -- Attorney (Tampa Electric) Braulio Baez Coral Gables, 6/29/2008 FL Coral Gables, 3/31/2008 FL Miami Beach, 3/20/2008 FL $300 $500 $1,000 Eugenio Hernandez Holland & Knight LLP -- Attorney (Tampa Electric) John M. Hogan Holland & Knight LLP -- Attorney (Tampa Electric) 5 of 7 Contributor Company and Title Location Date Amount $2,300 $250 Adolfo E. Jimenez Holland & Knight LLP -- Attorney (Tampa Electric) Jorge L. Hernandez- Holland & Knight LLP -- Attorney Torano (Tampa Electric) Joseph G. G. Gold- Holland & Knight LLP -- Attorney stein (Tampa Electric) Ines Marrero Priegues Braulio Baez Holland & Knight LLP -- Attorney (Tampa Electric) Holland & Knight LLP -- Attorney (Tampa Electric) $16,555 Miami Beach, 3/20/2008 FL Miami, FL 3/20/2008 Plantation, FL 3/19/2008 Miami, FL 3/19/2008 $500 $500 $2,000 Coral Gables, 2/21/2008 FL TOTAL [Federal Election Commission, Individual Contributions, 2008, 2010] 70,000 in Contributions to Republicans Joe Garcia was the CANF executive director from 2000 to 2004. During that period, the political action committee associated with the organization donated $72,330 to Republican candidates. These included donations to prominent Republicans like George W. Bush, John Cornyn, Jon Kyl and Ted Stevens. [Federal Election Commission, 2000, 2002, 2004] Garcia also personally donated a total of $1,500 to two Republican U.S. Senate candidates, Mel Martinez and Johnnie Byrd. [Federal Election Commission, 2000, 2002, 2004] Enron & Ken Lay In February 2001, an internal Enron memorandum was circulated that cited Joe Garcia as a potential candidate to receive an Enron endorsement for a position on the Federal Energy Regulatory Commission (FERC). All other candidates Enron considered were Republicans; Garcia--a former county Democratic Party chair--was cited as an independent. According to the memorandum, Garcia argued that he should take an existing Republican FERC seat. Garcia's rationale was that he would not count toward the threefrom-one-party limit on the board, implying that he would function as a de facto Republican and thereby flip a Democratic seat. An excerpt: One argument Mr. Garcia has made is that the Bush Administration and Enron are better off putting him in one of the existing open Republicans seats because this move would free up an additional Republican slot because Mr. Garcia is an Independent. His thinking is that once the Breathitt seat opens in 6/02 a Republican could be appointed because, as an Independent, he does not count against the -no more than three? from one party rule. He further argues that this gambit has a better chance of success if he is appointed now for a Republican seat rather than later for the Breathitt Democratic seat, which in theory Senator Daschle should have a say in appointing. [-Enron Memorandum,? U.S. Senate Hearing 107-854, Vol. III, p.564, link] In a March 2001 interview, Enron CEO Ken Lay said that he had spoken to Garcia about being nominated for one of the Federal Energy Regulatory Commission seats in the incoming Bush Administration. Lay had given the White House a list of candidates that the company had recommended for the position, and he recalled in the interview that -Joe 6 of 7 Garcia was on our short list of people that we would be quite comfortable with.? [Frontline, 3/27/2001] 7 of 7