Press Mention PV Mag February 28, 2021
SACE Referenced
Duke solar plan challenged in Florida
In this mention
Duke Energy Florida's Clean Energy Connections program, a 750 MW utility-scale solar initiative, is being challenged at the Florida Supreme Court by a consumer group represented by the League of United Latin American Citizens of Florida, who argue the program unfairly shifts costs to smaller customers. The program was approved by the Public Service Commission in January 2021 and supported by Duke, Vote Solar, the Southern Alliance for Clean Energy, and Walmart Inc. The lawsuit alleges the program's allocation structure disproportionately benefits large commercial and industrial customers while burdening residential customers with limited subscription opportunities.
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Duke solar plan challenged in Florida
Arguing that Duke's Clean Energy Connections program will unfairly shift costs onto smaller customers, a group is challenging the program designed to add roughly 750 MW of utility-scale solar.
March 1, 2021 Tim Sylvia
Duke Energy Florida's Clean Energy Connections program (CEC) is being challenged at the state Supreme Court by a group that claims the program will shift costs and financial risks to Duke customers who likely will not take part.
The group challenging Duke is represented by the League of United Latin American Citizens of Florida. They argue that because the solar projects are being funded by customers' bills, an opt-in requirement as well as not expanding project benefits to all customers is discriminatory.
The Public Service Commission voted 4-1 to approve the CEC program on January 5. The program was supported by Duke, Vote Solar, the Southern Alliance for Clean Energy, and Walmart Inc.
Under the program, Duke Energy Florida will build 10 74.9 MW solar plants, with two coming online in January 2022, four in January 2023, and four in January 2024. The costs of each plant would range from $102 million to $113 million. Customer subscriptions to the energy generated would be available in 1 kW blocks.
The program set a monthly fee for each block at $8.35, and the bill credit that customers receive will be 4 cents-per-kWh for the first 36 months, escalating by 1.5% annually after that. Duke said it expects that by the program's fifth year the annual bill credit will exceed the subscription fee. By year seven, customer credits are expected to exceed the charges paid to-date for the program.
Duke designed the plan so that 65% of the program is allocated to commercial and industrial customers, 25% is allocated to residential and small businesses, and 10% for local governments.
The group that brought the lawsuit alleges that these allotments are unfair, arguing that they disproportionately benefit Walmart, a signatory to the program, and other large customers that would help pay upfront costs and then receive future credits. The consumer group argues that customers that can afford to help with upfront costs will have the most opportunity to subscribe. Meanwhile, residential customers will feel a larger financial burden and have more limited subscription opportunities.