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March 2014

Executive Summary

Increasingly, the Florida Legislature sets its agenda and policy outcomes based on the needs of
large political donors rather than the public interest. In one recent example, the sitting state
senate president openly explained his position on a public policy issue as supporting whatever
one major campaign donor tells him to support. A large Budweiser distributor contributed
nearly $300,000 to political candidates and committees aligned with Senate President Don Gaetz
and had the edge on its smaller craft beer industry competitors.

A similar pattern exists for the energy sector in Florida where the Florida Legislature maintains a
traditional, regulated monopoly-utility model. This report examines the political influence of
the state’s four largest electric utility companies: Florida Power & Light (FPL), Duke Energy
(formerly Progress Energy), TECO Energy and Gulf Power. See Appendix for an insider’s
perspective from former State Senator Mike Fasano.

These four corporations registered, on average, one lobbyist for every two state legislators each
legislative session between 2007 and 2013. For the last five election cycles, these electric
utilities were among the largest donors to state-level campaigns in Florida. In the same period of
time, the policy wins for the four electric utilities included rate increases for customers, the
defeat of a proposal that would have increased electric bill transparency and the removal of state
regulators who opposed two proposed rate hikes.

Summary of Research Findings

1. Major campaign donations. Electric utilities contributed more than $18 million to
state-level candidates and party organizations between the 2004 and 2012 election cycles.

2. Significant lobbying. Lobbying spending by Florida’s four largest electric utilities was
more than $12 million between 2007 and 2013.

3. Revolving door and cronyism. Electric utilities have made a point of hiring former
state regulators and have employed the firms of several sitting state legislators.

4. Higher electric bills for consumers. Floridians have faced higher electric utility bills
from each of the four corporations examined in this study in recent years.

5. Anti-consumer regulations. The Florida Legislature and the Florida Public Service
Commission routinely side with electric utilities rather than consumers.

Summary of Policy Reform Recommendations

1. Uniform ethics rules for legislators and local officials. If local officials are banned
from legislative lobbying, then apply the same rules to legislators lobbying local officials.

2. Put inspector general reports online. Inspector general investigative reports and audits
should be posted online by the Florida Public Service Commission and all state and local
agencies.

3. Put gift and client disclosures made by all state and local officials online.

4. Require additional disclosure for political donations from government vendors and
companies regulated by the Public Service Commission.

5. Electric bill transparency. Unbundle bills with detailed disclosure of rate components.