Recent Happenings in the Electric Utility Industry
Despite California’s proposal on retail wheeling, as of May 1994, the Florida Public Service Commission was not considering implementing the policy. Although FPL is the largest electric utility in the state, retail wheeling would greatly increase the amount of competitors in the market. The industry faces a challenging future full of change, and shareholders would benefit from understanding the potential risks and rewards of their investment. The Standard & Poor’s Ratings Group declared a revision to their guidelines for evaluating utilities in October of 1993. This revision included the utilities’ competitive position as part of its financial rating. FPL’s positions rose based on the new criteria, placing them in the top 10% of publicly owned utilities.
Major Issues Confronting FPL in 1994