Associated Industries of Florida's Barney Bishop pushing pro-business envelope

Wake up and good morning. Who is Barney Bishop and why is he saying all these things that are not just pro business but are closer to Business Uber Alles -- business above all things?

Bishop is president of Associated Industries of Florida, a business lobbying group that won't disclose its members but still manages to exercise disproportionate influence on the state legislature in Tallahassee and Florida politics in general.

Lately, Barney's been on a roll, taking vocal stands calling for higher insurance rates, bashing a state regulator who happens to be against higher electric rates, and urging quick approval for drilling off the coast of Florida:

* Raise property insurance rates. Florida insurance regulators are failing in their duties if they don't make the state-backed Citizens Property Insurance Corp. raise property insurance rates by 10 percent across the board, he said said Tuesday. Bishop said it's "astonishing" that the state-backed insurer would not increase rates on all policies by 10 percent. ''It is our position that every rate should go up,'' Bishop told the Office of Insurance Regulation. "'The rates haven't been actuarially sound for the last five years," AP reported. More details here.

* Criticize Florida Public Service Commissioner Nancy Argenziano.She was the sole PSC member to vote against Friday's approved rate hike for power companies seeking higher rates on customers to pay for upfront costs associated with building new nuclear power plants in the state. Bishop makes no secret of that Florida Power & Light is a member of its board and the lobbying organization supports its members, even to the point of intervening in support of the company's rate case. Last Thursday, Bishop called a press conference to bash Argenziano for being impartial and unethical but made no mention of the fact that FPL had helped coordinate the event. More details here from the St. Petersburg Times, here from the Sun-Sentinel and here from the Palm Beach Post.

* "There's no evidence anywhere that offshore drilling has hurt tourism in any area where it has been allowed." That Bishop statement, according to factchecker Politifact, is false. The St. Petersburg Times caught up with Bishop in Washington this month, where he elaborated in this video interview on his pro-drilling stance and his claim there's never been an ocean spill attributable specifically to drilling.

-- Robert Trigaux, Times Business Columnist

PSC showdown Friday: Can Progress Energy charge customers upfront for nuke plant costs?

Wake up and good morning. What once seemed a slam dunk deal for Progress Energy -- building a new nuclear power plant complex in rural Levy County north of Tampa Bay -- is now very much up in the air. Tomorrow, Friday (Oct. 16), the Florida Public Service Commission is set to vote on whether to approve Progress Energy and and FPL's request to charge their customers in advance for their plans to build four new nuclear reactors in Florida. (Progress Energy plans two in Levy County (see rendering) and FPL also seeks two in South Florida.)

Estimated (and no doubt still escalating) costs for these plants: $35 billion. Florida is one of a few states that allows utilities to pass the planning costs such as design and engineering costs for nuclear reactors as they’re incurred as an incentive to build the plants years before obtaining the federal licenses required.

But resistance is growing. Critics say investors, not consumers, should bear more of the risk of nuclear power plants. And economic circumstances have stalled some of the initial momentum for new nuclear power. Enough so to ask: will Progress Energy itself ultimately decide the nuke plants are no longer worth the growing controversy in the state?

Customers are not happy with Progress Energy Florida, especially now that electricity rates have soared so rapidly. And the President George Bush era of "let 'er rip" support of new nuclear power is fading. Or at least slowing.

This week, a former federal energy regulator, environmentalists and others asked Florida leaders to delay their pursuit of nuclear power in light of lower electricity demand and the rising costs of building new reactors, the Florida Sun-Sentinel reports. The group, the Southern Alliance for Clean Energy, issued the following statement:

"The Florida PSC should not vote Friday to rubber stamp staff recommendations that would impose a $200 million front-end bite on ratepayers before a single kilowatt of power is produced by new nuclear reactors, particularly since the economic slowdown has already eliminated the need for
four nuclear reactors on the scale that both Progress and FPL are proposing."

I recall the first visit in 2006 to the St. Petersburg Times by Progress Energy Florida chief (at the time) Jeff Lyash to explain its reasons for seeking a new nuclear power plant. Lyash's message? "It's important to have a new nuclear plant in Florida." Here's a story on that visit.

What he meant, of course, is that Florida was a growing state and there will be big energy demands in the future to be met. Building nukes takes a decade or more, so it's time to get going, he said. (Photo: A main intersection in rural Levy County near the proposed Progress Energy nuke plant site. By Keri Wiginton, St. Petersburg Times.)

Since then, issues have become muddy. The 2006 boom times quickly fizzled into a deep recession which raised questions about the overall electricity needs for the state. Progress Energy, like many other utilities seeking new nukes, quoted an initial price tag for the nuke plants that quickly escalated and eventually tripled, punching some big holes in the company's credibility in selling the idea.

Then it became clear that much of the plant's extensive upfront costs would be paid for via higher rates charged customers who would not see the payback (if ever, for older customers) until 2017 or perhaps later. And finally, the alternative energy industry gained ground -- backed by both Florida Gov. Charlie Crist and President Barack Obama -- reviving debates on what forms of energy and conservation will prove most cost effective and environmentally friendly.

And it all lands in the Florida PSC's lap in 24 hours.

-- Robert Trigaux, Times Business Columnist

 

Light rail? High-speed rail? Tampa Bay debates pros and cons for the area

Tampa Bay needs to make some big decisions about whether to start supporting, or not, a light-rail system of trolleys and improved bus service, as well as a separate high-speed rail linebeing potentially waved in front of the Orlando-Tampa corridor by the Obama administration. Neither rail system is a shoo-in by any means, and neither one necessarily depends on the other to happen. (Photo: Light rail in Dallas, courtesy of Dallas Area Rapid Transit.)

I wrote a Sunday column in the St. Petersburg Times exploring both light and high-speed rail topics. The feedback so far has been strong on both sides.

James Klapper of Oldsmar,in an email, said any type of rail was an "absurdity" in a state like Florida. "The only people benefiting from this would be a few rail fans and a lot of real estate interests," he wrote. "The developers get the chance at dense developments around rail stops, making huge profits."

Klapper also sent me a link to today's Washington Post column by Robert Samuelson which strongly condemns the Obama administration's support for high-speed rail and its failure to look at high-speed's poor history on delivering on what it promised.

In Tampa, Ron Thuemler writes that a full multi-modal (as in rail plus bus) will be key in the future for this area.

 "A vastly improved and reliable bus system is the vital link to making rail really work. On it’s own, buses are still the life-blood of how many people get around, and we must invest more in them to provide more frequent stops in more areas. In this case I really believe if we build it, they will come-especially when gas prices start to go crazy again, and they will."

A better bus service is seconded by former Tampa Mayor Sandy Freedman. (Photo: HART line bus in Tampa by Thomas Goethe, St. Petersburg Times.) Freedman writes:

"Sure, rail would take our area to the next level. But it won't work without a coordinated and comprehensive area investment NOW in buses as a prelude. The step we must take first is to educate our leaders and community that we must find the resources and build such a system today while we develop and plan the rail system of tomorrow."

Meanwhile, Tampa resident P.J. Jaccoi wonders:

"I moved to Tampa 17 years ago from NYC and know something about the subject.  Let me say up front that the idea has merit. Unfortunately, it is far too late in the game to lay train tracks and install passenger stations in this town.
 
"Where will the tracks run?  Will we rip up Kennedy Blvd and Dale Mabry Hwy?  Probably not.   If you put a commuter line on Dale Mabry, where will the stations be?   Perhaps at Waters Avenue, Fletcher Avenue or Bearss Avenue.  Great, but, where would you build the station?  Will you knock down existing businesses to build the station?  Will there by public parking?   Probably not, as all of the prime real-estate has long since been gobbled up by private industry."

All good insights on all sides. I'll share more of them. Keep them coming to trigaux@sptimes.com. We're just in the opening innings of this regional transportation debate. Learn more about the Tampa Bay Area Regional Transportation Authority's "master plan" here.

-- Robert Trigaux, Times Business Columnist

In Florida's tougher tourism times, saved by the Greek house dressing

Wake up and good morning. So, way down at the bottom of a Wall Street Journal story this weekend about Florida's dragging tourism economy, is Chris Constantinou, owner of the Farmer Boy Greek restaurant in Clearwater.

Constantinou offers a compelling anecdote. In recent years, he began selling his homemade salad dressing through such supermarkets as Publix, Sweetbay, Hannaford and Giant. While business at the restaurant has fallen by 30 percent this year, the Journal reports, the dressing has emerged as a linchpin to his business -- D&C Brothers Corp. -- during the recession.

The Farmer Boy Greek house dressing "is now a matter of survival," says Constantinou. "It's supporting the restaurant."

Talk about the tail wagging the dog. Thank goodness the restaurant has a tail to wag. The Journal article paints a pretty rough picture of the Florida tourism market with visits by non-Floridians expected to have dropped by as much as 9 percent during the fiscal year ended June 30. And tax receipts from tourism and recreation-related activities in the state's current fiscal year are expected to fall by more than $235 million, or 6 percent.

The Journal quotes Carol Dover, chief executive of the Florida Restaurant & Lodging Association: "It's terrible. You've got the engine of the Florida economy getting to a real breaking point."

The Journal's conclusion? Florida tourism won't recover until well after the national economy rebounds... I think they may be on to something.

(Photos courtesy of Farmer Boy and Florida Restaurant & Lodging Association.)

-- Robert Trigaux, Times Business Columnist
 

Tampa Bay Chevy sales bode well for "new" GM, but the fridge may have to wait

Wake up and good morning. What's the difference between a refrigerator and a new GM car? Jim Gurley knows. More on that in a moment. (Gurley photo courtesy of GM.)

Tampa Bay area Chevy dealers closed July’s books with their best sales figures of the year, and their highest numbers since last September, thanks in part to the federal "Cash For Clunkers" or CARS program. "We’ve seen a significant increase in vehicle sales and dealer traffic since the launch of the program," says Gurley, General Motors zone manager for the Tampa Bay area. "And we’ve had especially good numbers in Tampa Bay."

Not bad for a company than went into bankruptcy in June and out of it in July.

Indeed, the "clunkers" program is generating more than 245,000 vehicle sales nationwide in two weeks, prompting car dealers to increase the pressure on auto makers to ramp up production, the Wall Street Journal reports.

Overall, in GM's market area that includes Tampa Bay, dealers’ numbers were up 13 percent compared to last year, which is well above the national 2 percent increase. Month-over-month sales figures also continued trending upward, with Chevy’s July vs. June 2009 sales up 26 percent in Tampa Bay, surpassing the national Chevy July vs. June increase of 21 percent.

In an interview, Gurley says most of his GM dealers tell him there's plenty of interest in the clunkers program but many more customers' vehicles do not qualify for the rebate. Still, that extra volume lets dealers show off Chevy's current "big 3" models: the Malibu, the Traverse crossover SUV and the Equinox (shown in photo).

"It seems people are more creditworthy than usual," Gurley says of recent visitors to dealer lots. "So people who are smart with their money see opportunities with the government rebate to really capitalize on it, along with manufacturer's rebates."

In fact, Gurley sounds downright bullish. "We think we've made the turn and through the rest of 2009 we think things will get better and better. By 2010, things will rebound back," Gurley says. "Dealers are looking for light at the end of the tunnel. We think we can see it now."

Wow. Good news from Gurley the business guy. But what about Gurley the consumer? Things get a bit more complex. Remember the refrigerator at the top of this posting? Gurley says he plans to buy one but he's holding off for now. He explains:

"I am putting off a refrigerator purchase to see if my kids will be okay and keep their jobs. I want to wait, but I think people are feeling a bit better."

-- Robert Trigaux, Times Business Columnist

One year after hitting record prices, gas a relative bargain

Here's a Tampa Bay anniversary worth celebrating. It's been ONE YEAR since the Tampa-St. Petersburg-Clearwater area hit all-time highs for average gasoline prices.

A year ago Thursday (July 16, 2008), regular unleaded hit a record $4.009. It's now $2.479. That's $1.53 saved per gallon. So if you use 20 gallons a week, you're spending $1,591.20 less annually based on that price difference.

A year ago today (July 17, 2008), diesel hit a record $4.819. It's now $2.553.  That's even better, a $2.226 saved per gallon. So if you use 20 gallons a week, you're spending $2,356.64 less annually based on that price difference.

More details here.

Real savings! Cheers!

(Photo: Joe Raedle, Getty Images)

-- Robert Trigaux, Times Business Columnist

In Tampa, GM plays underdog role well amid cutthroat competition

 Wake up and good morning. General Motors landed in force in Tampa this week by showing off its 2010 line of Camaros as part of the "new" reincarnation of GM and to celebrate the debut of the Camaro-laden Transformers sequel movie opening today. Here's the column I wrote in the St. Petersburg Times on Tuesday's splashy moves in Tampa by GM. And here's the St. Pete Times movie critic's review -- but don't click here if you want to see the movie. It's not a pretty review.

Full disclosure. I have very mixed emotions about writing about the debut of the Camaro and GM's new underdog persona as a Chapter 11 bankrupt company desperately seeking a strategy to survive and prosper. As a columnist, I wrote a piece way back in 2001 defending GM's decision at the time to stop making the Camaro and the Pontiac Firebird as sports cars that had seen their day in the sun. That column generated well in excess of 1,000 protest (that's a polite way to describe it) e-mails. Funny how the response was all about me and my foolishness and not about GM's actual decision to stop making the vehicles after 2002. (Ieven got a "Dear Moron" e-mail last month about the '01 column. I guess someone out there was late to the Internet.) It was a great lesson for me in the depth of muscle car loyalty out there in the country, even as Camaro sales back then were plummeting. Go figure. 

And obviously GM, too, got the message by opting to bring back the Camaro, even as the company decided to call it quits on the entire Pontiac brand.

 I've added these two photos from Tuesday's Camaro-palooza in Tampa (both photos shot by Kathleen Flynn of the St. Petersburg Times) because they personalize GM's plight. The top shot shows two GM designers who helped bring back the Camaro. Jeff Perkins (leaning on the yellow Camaro fender, and in second photo in blue shirt) re-energized the Camaro interior with a simplified dashboard and touches like "Inferno Orange" (see second photo) colors on the seats. Jeff's Dad also was a GM designer.

The other designer (top picture, yellow Camaro, in background) is Humberto Ortiz, a whiz kid GM found in its Mexico business and brought to Michigan to spearhead the Camaro restyling. Humberto spoke Monday evening to the Latin Chamber of Commerce in Tampa where a surprising number attendees brought their children (apparently all Transformer movie fans). Humberto is a design-sketching maniac, so a long line of kids with parents formed after he spoke to have Humberto quick-draw some cars on any available scrap of paper. Pretty cool.

So what's the point of all this hoopla? Chrysler is becoming an arm of Italy's Fiat. GM's selling its Saturn line to auto baron Roger Penske who plans a revival big on electric vehicles. The feds are lending billions to Ford, Nissan (a Japan auto maker, go figure) and Tesla Motorsto goose fuel efficient car manufacturing in America. Exxon Mobil just teamed up with a Canadian battery maker to produce battery-driven cars called Maya 300s. GM, now 24 days into bankruptcy, absolutely must keep waving its Hey Look At Me flag to consumers just to get their attention. After that, it's up to the company to (1) make attractive, fuel-sipping vehicles people actually want, (2) produce quality vehicles priced with a sense of real value and (3) stop resting on yesteryear models. I'm cheering for GM's Great Rebound but it's gonna get bloody out there in the auto wars of the coming years.

-- Robert Trigaux, Times Business Columnist

As Tampa Bay gas prices head to $2.50, how high will they go?

Wake up and good morning. How high and how fast will gas prices go?

After hitting a 52-week low late last year, the AAA graph shows national and Florida gas prices have been in lockstep, rising from the $1.70's per gallon of regular to more than $2.50. Compared to other states, Florida prices are in the middle of the pack.

Statewide, the price of regular is $2.528 per gallon, says AAA. That's up from $2.089 just a month ago, but still well below the $3.962 one year ago.

Prices in the Tampa Bay area are slightly cheaper. Gas currently is at an average $2.472 a gallon, up from $2.030 a month ago. A year ago it was $3.893.

The (sort of) good news? According to a report by AAA Auto Club South, gas prices will continue to climb higher, but the rate of acceleration should decline. That's because the price of gas has been pushed up by refinery reductions and crude and wholesale price increases, but not by consumer demand, said Gregg Laskoski, a spokesman for AAA Auto Club South, the Orlando Sentinel reports.

The bad news? Rising U.S. gas prices are about the last thing the country needs right now amid government attempts to bring the country -- not to mention Chapter 11 bankrupt GM and Chrysler -- out of recession. Tom Kloza, the Oil Price Information Service's chief oil analyst, told CNN/Money that said with gas prices rising steadily nationwide, struggling Americans may limit their summer vacations and therefore limit the country's economic recovery.

U.S. residents potentially limiting their summer travels amid higher gas prices, states such as Arizona, California and Florida will be among those hurt the most. Added Kloza:

"People are crazy when it comes to the price of gasoline. Nothing has quite the emotional component than gas prices do."

-- Robert Trigaux, Times Business Columnist