Critics: Florida ‘cost-effectiveness’ metric not cost-effective in setting energy goals

(The Center Square) – Rather than update an "antiquated" cost-screening practice manipulated by utilities for decades to dodge Florida energy savings laws, critics say state regulators appear to be doubling down on it – again.

"After nearly 30 years, Florida has a once-in-a-generation opportunity to modernize its energy efficiency rules," Southern Alliance for Clean Energy (SACE) Energy Efficiency Director Forest Bradley-Wright said, but instead it appears to be perpetuating the practices that make Florida "almost dead last in state rankings for capturing energy savings" through efficiency measures.

The Florida Public Service Commission (FPSC) released a draft rule this week that calls for changing the process in how utilities set and meet energy-saving goals in compliance with state law.

The FPSC, which regulates utilities in the state, will hear public comments on the draft rule at a workshop scheduled for Jan. 14.

Per state law, utilities must present the FPSC with energy-saving goals at least every five years for a 10-year period.

Also per state law, policy decisions must undergo "cost-effectiveness" analyses that is a good process, critics say, but the FPSC has allowed utilities to make it complex and restrictive.

"Cost-effectiveness" analyses of energy-saving goals provided by utilities to the FPSC include such metrics as rate impact measure (RIM) tests and two-year payback screens that make zero energy-use efficiency gain their most cost-effective goal.

"Florida is the only state to use these antiquated policies. And that hurts hard-working families, especially low-income customers, and small businesses by limiting or eliminating efficiency programs that help customers cut waste and save money on bills," SACE argues.

Advocates maintain inefficient use of electricity drives up utility bills and contributes to pollution and climate change.

In November 2019, after receiving more than 5,000 comments and dozens of municipal resolutions calling on it to do so, the FPSC rejected its staff recommendation to approve utilities' proposed energy savings goals of zero, or near zero.

Instead, the PSC voted, 4-1, to maintain energy savings goals regarded as "anemic" by critics but better than zero through 2025.

Over the summer, state utilities, including Florida Power & Light, Duke Energy Florida, Tampa Electric Co., Gulf Power Co. and Florida Public Utilities Co., filed requests to scale back energy efficiency programs and to change the energy saving goal-setting process.

Both requests were endorsed by FPSC staff. The FPSC rejected the staff recommendation to scale back utility energy efficiency programs in July, but approved its request to review the goal-setting process and propose new rules.

Those changes are outlined across seven pages of the Dec. 15 rule-making notice for the Jan. 14 workshop before the FPSC.

SACE, a multistate nonprofit advocacy group that promotes energy efficiency and nonpolluting energy sources, and nonprofit environmental law organization Earthjustice are spearheading a coalition that will lobby the FPSC to reject the rule, calling it "stunningly short-sighted."

"It is ridiculous for Florida's utility regulators to propose energy efficiency standards that are three decades old," Earthjustice attorney Bradley Marshall said. "We live in a state that is already feeling the effects of flooding from rising seas and global warming. We should be a leader in energy efficiency goals."

Other coalition members include the Environmental Confederation of Southwest Florida (ECOSWF) and the League of United Latin American Citizens (LULAC) of Florida.

"We need strong, modern energy efficiency standards in Florida, not more excuses for utilities to do even less for customers," said David Sinclair, chairperson of environment and climate issues with LULAC Florida.