Renewable-Energy Rules: PSC Turns Mostly Cloudy

Renewable-Energy Rules: PSC Turns Mostly Cloudy

Published: Sunday, October 12, 2008 at 2:10 a.m.
Last Modified: Sunday, October 12, 2008 at 2:39 a.m.

The Florida Public Service Commission just doesn't seem to realize where it is located. A check of any Florida license plate should remind the members: "The Sunshine State."

Therein is the irony of the commission's pending new rules for alternative sources for renewable energy.

Last week, critics said the proposed renewable-energy rule would be one of the weakest in the nation.

Other states have already adopted ambitious goals, saying that they want to generate as much as 20 percent of the electricity used from sources such as wind, solar and biomass - and some states want to do it as early as 2010.

Florida, on the other hand, has offered to be at the 20 percent mark by 2041, according to the PSC staff proposal set to be presented to the commission Tuesday.

A public hearing on the proposal will probably be held before the end of the year. After a vote by the PSC, the recommendations would be sent to the Legislature in time for its annual spring session in Tallahassee.

"The [PSC] targets aren't ambitious enough to drive any kind of investment in renewable-energy technology in Florida," said George Cavros, of the Southern Alliance for Clean Energy, to the St. Petersburg Times. The targets are "the weakest in the nation. Dead last. Gov. Crist would be 94 before his proposed 20 percent target [for energy produced by renewable resources] is realized."

As pitiful as the proposed targets are, they're actually a bit stronger than a proposal put forth in August. It said the 20 percent target should be reached by 2050 - 30 years later than Crist's goal. It also said the impact of the renewable-energy programs on electric bills should be no more than 1 percent. The latest proposal raises that to 2 percent.

Even that small amount is far below average for the 19 states that limit the cost of renewable-power development on customers' bills. The average cap is 4 percent on annual revenue. That's twice what the PSC staff recommendation has proposed.

At least Lakeland is more enthusiastic about solar's promise. Last week, the city's Utility Committee, made up of citizens and the seven commissioners, voted 13-0 to embark on a solar program in a big way with Maryland-based SunEdison.

Solar panels will be installed on the roofs of private buildings and on city property. SunEdison makes the investment, the city buys the power and sells it to its customers. For businesses that opt to provide a sunny rooftop, the incentive is a reduced electricity rate. SunEdison gets a federal tax credit.

Founded in 2003, SunEdison has become the nation's largest producer of solar power. Among its customers: Whole Foods, Wal-Mart, Staples and Kohl's.

And Lakeland Electric gets ahead of the curve when it comes to providing electricity produced with renewable-energy sources. "There are hundreds of utilities that have solar programs nationwide," said Jeff Curry, Lakeland Electric's manager of alternative energy. "With this contract, Lakeland Electric will be the largest solar utility in the country on a per-customer basis."

The deal was made possible partly by the passage of the $700 billion bailout by Congress this month. Federal tax credits for solar producers were scheduled to expire at the end of this year.

While the House and Senate had refused to approve an extension for the incentives by themselves, an eight-year extension was included in the bailout bill. The breaks will cost about $18 billion in lost revenues over that period.

SunEdison spokeswoman Martha Duggan told The Washington Post that, with the extended tax credits of about 30 percent on its investment, SunEdison can offer rates for electricity that compete with other utility companies.

Duggan said the incentives were critical in order for a young industry to reach maturity: "We are a nascent industry, and we are building and creating, and growing. The payoffs for efficiency come later in development."

PSC members will have a chance at Tuesday's meeting to at least bring Florida in line with other states when it comes to placing emphasis on moving toward renewable resources for energy production.

Or maybe they want a new state motto: Florida, "The Sort of Solar State."