Plan too costly for Florida

Plan too costly for Florida

By Jeff Lyash, Special to the Times
In Print: Tuesday, March 31, 2009

Even the Florida Public Service
Commission's staff, after careful review
of Navigant Consulting's independent
analysis of renewable energy capability
for the state, concluded that it would be
difficult to meet an aggressive 20
percent renewable energy target, such
as those found in proposals in Congress.
Navigant Consulting found that only
under the most favorable circumstances
would 20 percent be achievable in
Florida. That's why the PSC provided for
the rate cap and suggested the
expansion of the portfolio standard to
include clean energy resources such as
energy efficiency and nuclear generation
— both reasonable approaches based on
facts.

Now, a national requirement with a
one-size-fits-all approach is under
consideration by our elected officials in
Washington. These proposals would
require that 20 to 25 percent of the
energy we provide to our customers
come from renewable energy sources
without any consideration of available
resources on the state level and
arbitrarily excluding some of Florida's
most important renewable energy
alternatives, such as municipal solid
waste and waste heat.

Under these federal proposals, Progress
Energy Florida customers would be
forced to pay higher rates to subsidize
renewable energy generated in other
regions or to fund alternative
compliance payments to the federal government for renewable energy requirements that can't
be met here.

For our Florida customers, electricity prices would rise almost 10 percent by 2025 — about
$250 per year for the average household — to comply with the federal renewable energy laws
being considered. Costs would increase even more with climate change legislation. Yet, these
higher electric bills would do little to reduce local carbon emissions or produce jobs in Florida,
because our customers' dollars would be sent out of state for renewable energy or to the
federal government.

Many who support a federal renewable energy standard claim it will create jobs, reduce CO2
and improve our energy security. These are all laudable objectives that Progress Energy fully
supports. But a one-size-fits-all federal standard is not the most cost-effective or fair way to
achieve a clean energy future and stimulate the economy.

Instead, we should focus on establishing a greenhouse-gas emissions cap and giving states
and utilities greater flexibility to meet the cap in a manner that reflects regional differences
and makes the most sense for citizens and our customers.

This type of approach, rather than a national renewable mandate, would reduce carbon
emissions at a lower cost while promoting a more reliable energy supply and more vigorous
job creation. That's something we can all get behind, and it's the goal Congress should be
working toward.

Jeff Lyash is president and CEO of Progress Energy Florida, which provides electric service to
more than 1.6 million customers in Florida.