IA-01-21

IA-01-21
I. Meeting Packet
Attachment 1
FLORIDA
PUBLIC
SERVICE
COMMISSION
FEECA
Annual Report on
Activities Pursuant to the
Florida Energy Efficiency
& Conservation Act
As Required by Sections 366.82(10), 377.703(2)(f), and 553.975, Florida Statutes
FEBRUARY
2016
DRAFT
Florida Public Service Commission
Annual Report on
Activities
Pursuant
to the
Florida
Energy
Efficiency and
Conservation
Act
As Required
by Sections 366.82(10), 377.703(2)(f),
and 553.975, Florida Statutes
February 2016
DRAFT
DRAFT
Table of Contents
Tables and Figures ........................................................................................................................ v
List of Acronyms ......................................................................................................................... vii
Executive Summary ...................................................................................................................... 1
Section 1. The Florida Energy Efficiency and Conservation Act ............................................ 5
1.1 History of FEECA........................................................................................................ 5
1.2 Conservation Tools and DSM Savings ........................................................................ 6
1.3 Conservation Cost Recovery...................................................................................... 10
1.4 Natural Gas Conservation Cost Recovery ................................................................. 11
Section 2. Analytics for Setting Demand-Side Management Goals ....................................... 13
2.1 Cost-Effectiveness ..................................................................................................... 13
2.2 Commission-Established Goals ................................................................................. 15
2.3 Assessing Goal Achievement .................................................................................... 15
2.4 Summary of Recent DSM and Goal Setting Activities ............................................. 19
Section 3. Overview of Florida’s Electricity Market .............................................................. 23
3.1 Energy Demand in Florida ......................................................................................... 23
3.2 Florida’s Electric Generating Resources ................................................................... 24
Section 4. Educating Florida’s Consumers on Conservation................................................. 27
4.1 Commission Consumer Education Outreach ............................................................. 27
4.2 Related Web Sites ...................................................................................................... 30
Appendix 1. Conservation Activities of FEECA Utilities ....................................................... 33
FEECA Investor-Owned Utilities
A. Duke Energy Florida, Inc (DEF)................................................................................. 33
B. Florida Power & Light Company (FPL) ..................................................................... 36
C. Florida Public Utilities Company (FPUC) .................................................................. 38
D. Gulf Power Company (Gulf)....................................................................................... 40
E. Tampa Electric Company (TECO) .............................................................................. 43
FEECA Municipal Utilities
A. JEA .............................................................................................................................. 47
B. Orlando Utilities Commission (OUC)......................................................................... 48
iii
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Tables and Figures
Tables
1.
Energy Sales by Florida's FEECA Utilities in 2014.................................................................5
2.
Estimated Cumulative DSM Savings since 1980.....................................................................6
3. DOE Federal Appliance Standards with an Upcoming Statutory Deadline.............................9
4.
DSM Expenditures Recovered Through the ECCR Clause...................................................10
5. Residential Energy Conservation Cost Recovery Factors in 2016.........................................11
6. Residential Natural Gas Conservation Cost Recovery Factors in 2016.................................12
7.
Summary of Cost-Effectiveness Methodologies....................................................................14
8.
Commission-Approved DSM Goals (2015-2024)..................................................................15
9. DSM Goals Compared to Annual (2014) Achievements.......................................................18
10. Commission-Approved Annual Expenditures for Solar Pilot Programs...............................20
11. Solar Pilot Program Installations in 2014..............................................................................21
12. Solar Water Heating and Photovoltaic Expenditures in 2014...............................................21
13. Florida’s Electric Customers by Class and Consumption in 2014........................................23
14. Generation Fuel Sources in Florida in 2014..........................................................................25
Figures
1. Typical Florida Daily Electric Load Shapes............................................................................24
v
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List of Acronyms
C/I
DEF
DOE
DR
DSM
ECCR
EE
EPA
F.A.C.
FEECA
FIPUG
FPL
FPUC
FRCC
F.S.
GW
GWh
Gulf
HVAC
IOU
kWh
LDC
Load
MW
MWh
OPC
OUC
O&M
Commission
PV
RIM
SACE
SEER
TECO
TRC
WH
Commercial and Industrial (Customers)
Duke Energy Florida, Inc.
U.S. Department of Energy
Demand Response
Demand-Side Management
Energy Conservation Cost Recovery Clause
Energy Efficiency
U.S. Environmental Protection Agency
Florida Administrative Code
Florida Energy Efficiency and Conservation Act
Florida Industrial Power Users Group
Florida Power & Light Company
Florida Public Utilities Company
Florida Reliability Coordinating Council
Florida Statutes
Gigawatt
Gigawatt-Hour
Gulf Power Company
Heating, Ventilation and Air Conditioning
Investor-owned Utility
Kilowatt-Hour
Natural Gas Local Distribution Company
Demand for Electricity
Megawatt
Megawatt-Hour
Office of Public Counsel
Orlando Utilities Commission
Operations and Maintenance
Florida Public Service Commission
Solar Photovoltaic
Ratepayer Impact Measure Test
Southern Alliance for Clean Energy
Seasonal Energy Efficiency Ratio
Tampa Electric Company
Total Resource Cost Test
Solar Water Heating
vii
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Executive Summary
Purpose
Reducing Florida’s peak electric demand and energy consumption became a statutory objective
in 1980, with the enactment of the Florida Energy Efficiency and Conservation Act (FEECA).
Codified in Sections 366.80 through 366.85 and Section 403.519, Florida Statutes (F.S.), FEECA
emphasizes reducing the growth rates of weather-sensitive peak demand, reducing and
controlling the growth rates of electricity consumption, and reducing the consumption of scarce
resources, such as petroleum fuels.
Section 366.82(2), F.S., requires the Florida Public Service Commission (Commission) to set
appropriate goals at least every five years for the seven electric utilities subject to FEECA. The
Commission sets goals with respect to summer and winter electric peak demand and annual
energy savings over a ten-year period, with a review every five years. Once goals are established,
the utilities must submit for Commission approval, cost-effective demand-side management
(DSM) plans containing the programs intended to meet these goals.
The seven electric utilities currently subject to FEECA are:

Five Florida Investor-owned utilities (IOUs), ranked in order of sales
o
Florida Power & Light Company (FPL)
o
Duke Energy Florida, Inc. (DEF)
o
Tampa Electric Company (TECO)
o
Gulf Power Company (Gulf)
o
Florida Public Utilities Company (FPUC)

Two municipal utilities, ranked in order of sales
o
JEA
o
Orlando Utilities Commission (OUC)
The Commission is required by Section 366.82(10), F.S., to provide an annual report to the
Florida Legislature and the Governor summarizing the adopted goals and progress toward
achieving these goals. Additionally, Section 377.703(2)(f), F.S., requires the Commission to file
information on electricity and natural gas energy conservation programs with the Department of
Agriculture and Consumer Services. Section 553.975, F.S., requires the Commission to submit a
biennial report to the Governor, President of the Senate, and Speaker of the House regarding the
effect of state energy standards on conservation. This report fulfills these Commission statutory
obligations.
Report Layout
This report presents the Commission’s efforts in overseeing the companies’ initiatives
established to achieve the conservation goals and Commission requirements. This report details
these efforts through the following four sections:
1
DRAFT

Section 1 provides a history of FEECA, highlights savings produced by utility programs
since 2000, and provides a description of existing tools for increasing conservation
throughout the state.

Section 2 discusses current goals and achievements of the FEECA utilities.

Section 3 provides an overview of Florida’s electricity market.

Section 4 discusses methods the Commission has used to educate consumers about
conservation and provides a list of related web sites.

Appendix 1 provides a description of the conservation programs offered during 2015 by
the FEECA utilities.
The FEECA report is due to the Governor on March 1, 2016. However, the FEECA utility filings
to the Commission for 2014 were due on March 1, 2015. The 2015 FEECA utility filings are due
on March 1, 2016. Therefore, the most current information regarding utility achievements
available at the time this report pertains to 2014.
Conservation Achievements
Since 1980, the FEECA utilities’ DSM programs in total have reduced winter peak demand by
an estimated 6,595 megawatts (MW). The FEECA utilities’ DSM programs decreased summer
peak demand by an estimated 7,080 MW. The demand savings from these programs have
resulted in the deferral or avoidance of power plant construction in the state. These programs
also reduced total electric energy consumption by an estimated 10,244 gigawatt-hours (GWh).
The Energy Conservation Cost Recovery (ECCR) clause allowing recoverable expenditures on
energy efficiency has been in existence since 1980. In 2015, Florida’s IOUs recovered
approximately $363 million in conservation program expenditures, performed 266,381
residential and commercial audits, and offered approximately 105 conservation programs for
residential and commercial customers. The history of FEECA and the ECCR clause are
discussed in Section 1.
2014 Goal Achievement
TECO, Gulf, FPUC, and JEA met all of the Commission’s total energy and demand savings
goals in total. FPL, DEF, and OUC implemented programs that saved MWs of demand and
GWhs of energy. However, these companies did not fully achieve the Commission’s goals.
Additional detail on each utility’s performance is described in Section 2.
2014 Goal Setting Process
On November 25, 2014, the Commission approved demand and energy saving goals for the
FEECA utilities for 2015 through 2024. The Commission voted to approve goals based on the
Ratepayer Impact Measure (RIM) Test to ensure that all ratepayers benefit from these programs
due to downward pressure on rates.
2
DRAFT
The 2014 approved DSM goals for the FEECA utilities were lower than those approved by the
Commission in 2009. The Commission identified fewer programs as cost-effective due to more
stringent building codes and appliance efficiency standards, as well as lower avoided costs
resulting from lower natural gas prices.
Moreover, the Commission voted to allow the IOUs’ five-year solar pilot programs to end on
December 31, 2015. The Commission based its decision on evidence in the record that the
existing solar pilot programs were not cost-effective. The 2014 goal setting process is discussed
further in Section 2.4.
Conclusion
The potential demand and energy savings from utility-sponsored conservation programs are
affected by consumer education and behavior, building codes, and appliance efficiency
standards. First, consumer actions to implement energy efficiency measures outside of utility
programs reduce the amount of incremental energy savings available from utility programs.
Additionally, utility conservation programs are designed to encourage actions that exceed the
conservation resulting from building codes and minimum efficiency standards.
The level of savings from utility conservation programs is uncertain because it is based on
voluntary participation from customers. However, all customers pay for the utility conservation
programs. Therefore, customer education of, and participation in, utility DSM programs—along
with individual efforts to save electricity—are key in reducing electric demand and energy usage.
Conservation and renewable energy are expected to play an important role in Florida’s energy
future. The Commission will continue its efforts to encourage cost-effective conservation and
renewable energy programs to reduce the use of fossil fuels and defer the need for new
generating capacity. These initiatives should ensure a balanced mix of resources that reliably and
cost-effectively meet the needs of Florida’s ratepayers.
3
DRAFT
Section 1. The Florida Energy Efficiency and Conservation
Act
1.1 History of FEECA
The Florida Energy Efficiency and Conservation Act (FEECA) emphasizes three key areas:
reducing the growth rates of weather-sensitive peak demand, reducing the growth rates of
electricity consumption, and reducing the consumption of limited resources such as petroleum
fuel. The Commission is required to establish conservation goals and the FEECA utilities are
required to develop demand-side management (DSM) programs to meet these goals.
Originally, all electric utilities in Florida were subject to FEECA. In 1989, changes to the law
limited the requirement to electric utilities with more than 500 gigawatt-hours (GWh) of annual
retail sales. During that period, 12 Florida utilities met this threshold requirement and at that time
their combined sales accounted for 94 percent of Florida’s retail electricity sales. An additional
change to the law included language to encourage cogeneration projects.
In 1996, minimum retail sales thresholds for subject utilities were raised by the Legislature to
2,000 GWh. Retail sales for these utilities were measured as of July 1, 1993, and two municipal
utilities met the threshold of the new law: JEA and OUC. In addition to these two utilities, all
five Florida investor-owned utilities must comply with FEECA regardless of sales levels. No
rural electric cooperatives are currently subject to FEECA.
The seven utilities subject to FEECA currently account for approximately 87 percent of all
Florida energy sales. Table 1 reflects 2014 electricity sales and the percentage of total electricity
sales by each FEECA utility, as well as non-FEECA utilities.
Table 1
Energy Sales by Florida's FEECA Utilities in 2014
Florida's FEECA Utilities
Energy Sales GWh
Florida Power & Light Company
Duke Energy Florida
Tampa Electric Company
JEA
Gulf Power Company
Orlando Utilities Commission
Florida Public Utilities Company
FEECA Utilities’ Total
Non-FEECA Utilities’ Total
Total Statewide Energy Sales
104,389
37,240
18,526
12,224
11,391
6,219
648
190,637
28,009
218,646
Percent of Total Energy Sales
48%
17%
8%
6%
5%
3%
0.3%
87%
13%
100%
Source: Commission "Statistics of Florida’s Electric Utilities" and FRCC’s 2015 Load and Resource Plan, S-2,
“Total Sales GWh."
5
DRAFT
1.2 Conservation Tools and DSM Savings
Although utility-sponsored DSM programs are an important means of achieving energy
conservation, consumer choices and mandatory efficiency standards are keys to reducing demand
and energy growth rates in Florida. Consumers respond to price signals by taking such actions as
buying energy efficient homes, installing efficiency upgrades, using more cost-effective demandside renewable systems, and making behavioral changes. The Commission’s actions to educate
Florida’s consumers on conservation opportunities are discussed further in Section 4.
Home and business energy audits serve as the basis for many DSM and conservation programs.
Pursuant to Section 366.82(11), F.S., all FEECA utilities are required to offer energy audits to
residential customers. During 2014, Florida’s IOUs performed more than 249,000 residential
energy audits. Though FEECA does not require commercial energy audits, Florida’s IOUs
performed more than 16,000 commercial energy audits.
Starting with energy audits, the FEECA utilities evaluate conservation opportunities for their
customers through 105 programs for residential, commercial, and industrial customers. Table 2
illustrates that since FEECA’s enactment, DSM programs are estimated to have reduced summer
peak demand by an estimated 7,080 MW and reduced annual energy consumption by an
estimated 10,244 GWh.
Table 2
Estimated Cumulative DSM Savings Since 1980
MW
Savings
Summer Peak Demand MW
Winter Peak Demand MW
Energy Reduction GWh
7,080
6,595
10,244
Source: FRCC Load and Resource Plan 2015.
DSM programs are designed to encourage conservation investment exceeding the minimum
standards in building codes and appliance efficiency. However, the potential demand and energy
savings from utility-sponsored conservation programs are also affected by consumer education
and behavior. The current level of energy efficiency standards and building codes creates a
baseline used in determining the cost-effectiveness of a potential DSM program. The higher the
current efficiency standards and codes, the less opportunity there is for utility-sponsored
programs to be cost-effective.
State and federal minimum efficiency standards for residential appliances and commercial
equipment, along with building construction standards, complement utility-sponsored DSM
programs. The Florida Building Code is updated and adopted with new editions every three years by
the Florida Building Commission. In addition, the Florida Building Code is amended annually to
incorporate interpretations, clarifications, and update standards. The 2014 Florida Building Code
emphasizes thermal envelopes of buildings. Specifically, the energy efficiency section of the code
6
DRAFT
focuses on insulation and ventilation measures for air conditioners, on/off switches for water heaters
and pool heaters, and automatic temperature controls for hot water systems.
At the federal level, the U.S. Department of Energy (DOE) establishes minimum energy
efficiency standards for more than 60 categories of appliances and equipment.1 These products
represent approximately 90 percent of home energy use, 60 percent of commercial building use,
and 30 percent of industrial energy use. From August 2014 to August 2015, DOE proposed 76
rulemaking actions. Of the 76 rulemaking actions, DOE completed 14 final rules on new energy
efficiency standards. DOE’s rulemaking actions include final rules, as well as notices of
proposed rulemaking, preliminary analyses, framework documents, notices of data availability,
proposed determinations, and requests for information.
DOE’s fourteen final rules from August 2014 through August 2015 included the following:

Five appliance standards:
o Commercial clothes washers
o General service fluorescent lamps and incandescent reflector lamps
o Automatic commercial ice makers
o Packaged terminal air conditioners and packaged terminal heat pumps
o Commercial heating, air-conditioning, and water-heating equipment

Eight test procedures:
o Commercial clothes washers
o Residential clothes washers
o Residential direct heating equipment and pool heaters
o Fluorescent lamp ballasts
o Refrigerated beverage vending machines
o Dehumidifiers
o Conventional cooking products
o Packaged terminal air conditioners and packaged terminal heat pumps

One alternative efficiency determination method regulation:
o Commercial heating, ventilation, and air-conditioning (HVAC), water-heating, and
refrigeration
Since August 2015, DOE has announced a final rule for commercial packaged terminal air
conditioners and packaged terminal heat pumps that will become effective in 2018. DOE also
broadcast a final rule for single package vertical air conditioners and vertical heat pumps that
will be effective in 2019. Furthermore, DOE declared efficiency standards for commercial
furnaces that will start in 2023.
1
Pursuant to Section 553.975, F.S., the Commission must report the effectiveness of state energy conservation
standards established by Sections 553.951 – 553.973, F.S. Florida’s appliance efficiency standards are mandatory
efficiency improvements but have not been updated since 1993, and therefore have likely been superseded by more
recent federal efficiency standards.
7
DRAFT
In November 2015, DOE announced a final rule for walk-in coolers and freezers. In December
2015, DOE determined that efficiency standards for high-intensity discharge lamps would not be
economically justified. Also in December 2015, DOE amended the test procedure for ceiling fan
light kits and amended the test procedure for commercial pre-rinse spray valves.
Beginning January 1, 2014, DOE began implementing new lighting standards, which resulted in
the phasing out of various watts of incandescent bulbs. In May 2014, the U.S. Environmental
Protection Agency (EPA) announced the first ENERGY STAR label for clothes dryers.
ENERGY STAR is a government-backed labeling program that helps consumers save energy by
identifying office equipment, home appliances, and electronics featuring superior energy
efficiency. The EPA stated that if all residential clothes dryers in the U.S. meet the requirements,
the utility cost savings could grow to more than $1.5 billion per year. Other household items that
were awarded ENERGY STAR labels in 2015 for the most efficient versions include boilers,
ceiling fans, central air conditioners, clothes washers, computer monitors, dishwashers, ductless
air conditioners and heat pumps, furnaces, refrigerators, ventilating fans, and residential
windows.
Utility programs offer rebates and incentives for appliances that exceed federally established
minimum efficiency standards. Increases in federal efficiency standards, independent
conservation efforts by consumers, and general conservation practices make it more challenging
for utilities to achieve additional demand and energy savings through DSM programs. Moreover,
participation rates in utility programs are driven by the anticipated payback to the participating
customer. While utility incentives will tend to increase the customers’ “take rate” in programs, the
average customer’s participation is driven by utility costs. Thus, low or declining electric prices tend
to reduce the market participation in DSM programs.
Table 3 describes the expected timeframes for changes in standards for those appliances where
federal efficiency rulemaking is pending.
8
DRAFT
Table 3
DOE Appliance Standards with Upcoming Statutory Deadlines
Product Categories
Heating Products Rulemakings
Final Action Date
Direct Heating Equipment and Pool Heaters
Residential Furnaces and Boilers (Active Mode)
Commercial Packaged Boilers
Residential Boilers
Light Commercial Water Heaters
March 2016
July 2016
July 2016
March 2017
May 2019
Space Cooling Rulemakings
Room Air Conditioners
Residential Central Air Conditioners
April 2017
June 2017
Transformers, Motors, and Pumps Rulemakings
Small Electric Motors
February 2016
Lighting Rulemakings
General Service Lamps
Fluorescent Lamp Ballasts
January 2017
November 2017
Home Appliances Rulemakings
Dishwashers
Dehumidifiers
Clothes Dryers
Kitchen Ranges and Ovens
External Power Supplies
December 2016
June 2017
August 2017
June 2017
June 2018
Commercial Appliances Rulemakings
Commercial Pre-rinse Spray Valves
October 2020
Commercial Refrigeration Rulemakings
Beverage Vending Machines
August 2015
Source: DOE's Energy Conservation Standards Activities Report to Congress August 2015.
In the 2013 State of the Union address, President Obama aimed to cut “in half the energy wasted
by our homes and buildings over the next 20 years."2 In addition to the DOE Appliance
Standards listed above, the Obama Administration hopes to improve energy efficiency through
the Better Buildings Initiative.3 Since 2011, more than $10 billion in federal funding has been
invested for greater energy efficiency in buildings.
Since 2009, the cost-effectiveness of DSM measures has declined due to several factors outside
of the FEECA utilities’ control. Customer load growth has declined, which defers the need for
new generation resources. Second, the new federal appliance efficiency standards and state
building codes are being incorporated into the marketplace. This decreases the amount of cost2
3
https://www.whitehouse.gov/the-press-office/2013/02/12/remarks-president-state-union-address
https://www.whitehouse.gov/blog/2015/05/27/4-years-building-energy-efficiency-across-america
9
DRAFT
effective DSM measures that the electric utilities can offer. Third, the price of natural gas has
declined by approximately 50 percent during the past five years. While reducing customer bills,
the price decrease also reduces the future benefit of additional DSM measures.
1.3 Conservation Cost Recovery
Administrative costs, equipment, and incentive payments are all costs of implementing a DSM
program. IOUs are allowed by Statute to recoup prudent and reasonable expenses for DSM
programs approved by the Commission through the Energy Conservation Cost Recovery
(ECCR) clause. Before attempting to recover costs through the ECCR clause, a utility must
prove its DSM programs are cost-effective and benefit the general body of ratepayers.
Each year, the Commission conducts financial audits of these expenses and a full evidentiary
hearing to determine the conservation cost recovery factors that will be applied to customers’
bills in the following year. Utilities must obtain Commission approval for program modifications
made during the previous year prior to seeking cost recovery. In November 2015, the
Commission set conservation cost recovery factors ranging from $0.68 to $3.25 per month for
residential customers using 1,000 kWh.
As new energy efficiency technologies become available, Florida’s IOUs encourage customer
participation by offering incentives through DSM programs. Florida IOUs’ annual expenditures
on energy efficiency and demand-side management demonstrated general stability from 2005 to
2007, due to DSM programs becoming less cost-effective as a result of the reduced operating
cost of newer generating units.
From 2008 through 2014, there was growth in utility expenditures due to adding and modifying
DSM programs. Table 4 shows the annual DSM expenditures recovered by Florida’s IOUs from
2005 through 2014 as well as the total over the period.
Table 4
DSM Expenditures Recovered Through the ECCR Clause
FPL
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2005-2014
DEF
TECO
$144,192,697 $59,143,255 $15,583,726
$146,204,978 $59,461,107 $14,099,638
$160,749,639 $67,109,815 $13,652,585
$180,016,994 $77,593,960 $16,989,411
$186,051,381 $80,954,071 $32,243,315
$216,568,331 $85,354,924 $43,371,442
$228,293,640 $91,738,039 $43,349,092
$224,033,738 $93,728,110 $46,593,831
$244,443,534 $115,035,455 $47,502,652
$316,311,166 $107,033,335 $46,620,508
Gulf
FPUC
Total
$9,363,182
$9,562,098
$9,107,192
$9,257,740
$10,576,197
$9,859,407
$15,003,596
$22,885,826
$27,431,962
$17,412,618
$473,610
$456,161
$515,022
$534,350
$540,433
$693,331
$954,297
$695,235
$806,698
$772,612
$228,756,470
$229,783,982
$251,134,253
$284,392,455
$310,365,397
$355,847,435
$379,338,664
$387,936,740
$435,220,301
$488,150,239
$3,350,925,936
Source: Docket Nos. 060002-EG through 150002-EG, Schedules CT-2 and CT-3 from May 1 testimony.
10
DRAFT
During the annual ECCR clause proceedings, the Commission determines the energy
conservation cost recovery factor that each utility will assess to customer bills. This includes
reconciliation for any actual conservation cost under- or over-recovery for the previous year. In
November 2015, the Commission set the ECCR factors for the 2016 billing cycle.4 Table 5
illustrates the IOUs’ conservation cost recovery factors for application to residential customer
bills. These factors are applied to a bill based on 1,000 kilowatt-hour (kWh) energy usage to
estimate the impact on a typical residential customer’s monthly bill.
Table 5
Residential Energy Conservation Cost Recovery Factors in 2016
Utility
FPL
DEF
TECO
Gulf
FPUC
ECCR Factor (cents/kWh)
Monthly Bill Impact (based on 1,000 kWh)
0.186
0.325
0.191
0.068
0.135
$1.86
$3.25
$1.91
$0.68
$1.35
Source: Order No. PSC-15-0542-FOF-EG, Docket No. 150002-EG.
1.4 Natural Gas Conservation Cost Recovery
Commission Rule 25-17.015, F.A.C., permits natural gas distribution companies to seek
recovery for conservation programs. Natural gas local distribution companies (LDCs) offer
conservation programs to their customers. However, the Commission does not currently set
conservation goals for LDCs.
Natural gas conservation programs typically include the provision of incentives for the
replacement of less efficient appliances. As a result, LDCs have historically spent the majority of
conservation program costs promoting the use of natural gas to residential home builders and
home owners. This is achieved by providing rebates that support the installation of energy
efficient gas appliances.
In 2013, the natural gas LDCs received approval from the Commission to offer natural gas
programs to their commercial customers.5 These programs allow the LDCs to incentivize
commercial customers to use efficient end-use natural gas appliances in a similar manner as the
residential customers.
4
Order No. PSC-15-0542-FOF-EG, Docket No. 150002-EG, In re: Energy Conservation Cost Recovery clause,
issued November 23, 2015.
5
Order No. 14-0039-PAA-EG, Docket 130167-EG, In re: Petition for approval of natural gas energy conservation
programs for commercial customers, by Associated Gas Distributors of Florida, issued January 14, 2014.
11
DRAFT
In November 2015, the Commission set the natural gas conservation cost recovery factors for the
2016 billing cycle. Table 6 displays the LDC’s conservation cost recovery factors and the impact
on a residential customer’s bill using 20 therms of natural gas per month.
Florida City Gas spent $394,000 on its Commercial/Industrial Conversion programs and
$580,000 on its Commercial Appliance program in 2014. Florida Public Utilities Company spent
$689,000 on its Commercial Small Food Service Program.
Peoples Gas System spent approximately $45,000 on commercial electric replacement and
approximately $92,000 on commercial new construction in 2014, as documented in the hearing
exhibits in Docket 150004-GU.
Table 6
Residential Natural Gas Conservation Cost Recovery Factors in 2016
Utility
Cost Recovery Factor
(cents/therm)
Peoples Gas System
Florida City Gas
Florida Public Utilities
Chesapeake Utilities
Indiantown Gas Company
St. Joe Natural Gas
Sebring Gas System
6.4
15.2
14.8
34.6
13.8
34.5
10.3
Source: Order No. PSC-15-0541-FOF-GU, Docket 150004-GU.
12
Monthly Bill Impact
(based on 20 therms)
$1.28
$3.03
$2.96
$6.93
$2.77
$6.90
$2.07
DRAFT
Section 2. Analytics for Setting Demand-Side Management
Goals
2.1 Cost-Effectiveness
Utility-sponsored DSM programs can benefit the general body of electric ratepayers by offsetting
the need for future power plant construction. These programs can reduce costs to ratepayers by
postponing capital expenditures, improving reliability, and reducing current electrical generation
costs—including fuel and variable operating and maintenance costs. However, the deferral of
new power plants with advanced technology can forgo the benefits of more efficient power
generation and the associated lower emission rates for certain regulated pollutants.
Section 366.82, F.S., requires utility conservation programs to be cost-effective, and this statute
is codified in Rule 25-17.008, F.A.C. This rule requires that utilities provide cost and benefit
information to the Commission when requesting to make changes or additions to a program. The
Commission requires utilities to provide the following three cost-effective tests for its
consideration: the Participants Test, the Ratepayer Impact Measure (RIM) test, and the Total
Resource Cost (TRC) test. The tests are summarized below.
Participants Test
The Participants Test analyzes costs and benefits from a program participant’s point of view and
ignores the impact on the utility and other ratepayers not participating in the program. The
Participants Test includes the costs customers pay for equipment and maintenance. Benefits
considered in the test include the incentives paid to the customers and the reduction in customer
bills. Failure to demonstrate cost-effectiveness under this test would infer that rational customers
would not elect to participate in this program.
Ratepayer Impact Measure Test
The RIM test is designed to ensure that all ratepayers, not just the program’s participants, will
benefit from a proposed DSM program. The RIM test includes the costs associated with
incentive payments to participating customers and decreased revenues to the utility due to lower
KWh sales. The decreased revenues typically must be recovered from the general body of
ratepayers at the time of a rate case. A DSM program that passes the RIM test ensures that all
customer rates are lower than they would be without the DSM program.
Total Resource Cost Test
The TRC test measures the overall economic efficiency of a DSM program from a social
perspective. This test measures the net costs of a DSM program based on its total costs, including
both the participants’ and the utility’s costs. Unlike the RIM test, customer incentives and
decreased revenues are not included as costs in the TRC test; instead, these factors are treated as
transfer payments among ratepayers. Moreover, if appropriate, certain external costs and benefits
such as environmental impacts may be taken into account. Because incentives and foregone
revenues are not treated as “costs,” electric rates for all customers will tend to be higher for
programs that are implemented solely using the TRC test to judge cost-effectiveness.
13
DRAFT
Table 7 illustrates the costs and benefits considered in the three Commission-approved costeffectiveness methodologies.
Table 7
Summary of Cost-Effectiveness Methodologies
Participants
RIM
TRC
X
X
X
X
X
X
X
X
X
X
X
X
Benefits
Bill Reduction
Incentives Received
Avoided Generation (Capital and
O&M)
Avoided Transmission (Capital and
O&M)
Fuel savings
X
X
Costs
Program Costs
System Fuel Cost Increase
Incentives Paid
Lost Revenues
Participant's Costs (Capital and
O&M)
X
X
The Commission requires IOUs to assess their programs on a regular basis. When programs
prove no longer cost-effective, utilities must petition the Commission for modification or
discontinuation of the program. For example, programs may need to be modified if a more
stringent appliance efficiency standard or building code is adopted. In contrast, if new efficiency
measures become available that are cost-effective, the utility may petition the Commission for
approval of a new program.
In 2008, the Legislature amended the FEECA statute, placing upon the Commission additional
responsibilities when adopting conservation goals. These responsibilities include the
consideration of benefits and costs to program participants and ratepayers as a whole, as well as
the need for energy efficiency incentives for customers and utilities. The Commission must also
consider any costs imposed by state and federal regulations on greenhouse gas emissions.
The amended FEECA statute allows the Commission to provide appropriate financial rewards
and penalties to the utilities over which it has rate-setting authority. Additionally, the 2008
legislation authorized the Commission to allow an IOU to receive an additional return on equity
of up to 50 basis points for exceeding 20 percent of its annual load growth through energy
efficiency and conservation measures. To date, the Commission has not awarded financial
awards or assessed penalties for IOUs subject to FEECA.
14
DRAFT
2.2 Commission-Established Goals
After considering the evidence in the 2014 goal-setting proceeding, the Commission voted to
establish goals for the FEECA utilities based on the RIM cost-effectiveness analysis.6 The RIM
test is a cost-effectiveness analysis that ensures that all ratepayers, both participants and nonparticipants, benefit from utility-sponsored conservation programs. Additionally, the RIM test
minimizes cross subsidies between customers.
By setting goals based on the RIM test, the Commission also addressed concerns voiced at the
hearing regarding subsidies between individuals who participate in DSM programs and
individuals who do not participate. The 2014 goal setting process is discussed further in Section
2.4.
Table 8 shows the Commission-approved summer demand, winter demand, and annual energy
reduction goals for the period 2015-2024 for the FEECA utilities established in Order No. PSC14-0696-FOF-EU.
Table 8
Commission-Approved DSM Goals 2015-2024
Utility
FPL
DEF
TECO
Gulf
FPUC
OUC
JEA
Total
Summer Demand
Goals (MW)
526.1
259.1
56.3
68.1
1.3
5.0
10.8
926.7
Winter Demand Goals
(MW)
324.2
419.3
78.3
36.7
0.4
8.4
9.7
877.0
Annual Energy Goals
(GWh)
526.3
195.0
144.3
84.2
2.0
13.0
25.8
990.6
Source: Order No. PSC-14-0696-FOF-EU
Commission Audit Review
In May 2013, the Commission’s Office of Auditing and Performance Analysis published a report
titled Review of Administrative Efficiency of Utility Demand-Side Management Programs. This
audit examined the administrative efficiency of the DSM programs for Florida’s four largest
investor-owned electric utilities. The purpose of the audit was to review each utility’s
administrative processes to efficiently develop, measure, analyze, and improve efficiency of its
DSM programs. A copy of the report is available on the Commission’s website at
6
Order No. PSC-14-0696-FOF-EU, Docket Nos. 130199-EI through 130205-EI, In re: Commission review of
numeric conservation goals, issued December 16, 2014.
15
DRAFT
http://www.psc.state.fl.us/Files/PDF/Publications/Reports/General/Electricgas/DSMReviewRepo
rt.pdf.
2.3 Assessing Goal Achievement
Commission rules require separate goals be set for residential and commercial/industrial (C/I)
customers, assigning context to measuring goal achievement within these two primary customer
categories. Each utility’s achievements in these categories are also combined and compared
against total goals as the value of a system’s demand and energy savings has no relation to the
sector—business or residential—in which the savings occur.
The FEECA utilities file an annual report for the Commission summarizing demand and energy
savings for each approved program compared to the approved DSM goals, pursuant to Rule 2517.0021, F.A.C. The annual reports exist on the Commission’s website at the following link:
http://www.floridapsc.com/ElectricNaturalGas/ARDemandSidePlans.
Monitoring annual goal achievements enables the Commission to understand the effectiveness of
each utility’s programs. In addition to reviewing the annual reports, staff may request additional
information from the FEECA utilities to better understand their demand and energy saving
achievements. These data requests can seek explanations of factors preventing the FEECA
utilities from achieving projected participation levels. For example, staff has requested more
information specific to which programs in the residential and commercial/industrial sectors
contributed to the utilities’ ability to achieve estimated participation levels.
Each utility’s DSM performance in 2014 is discussed below. The 2014 utility achievements have
been compared to the 2014 goals established by the Commission in 2009.
FPL
The Commission allowed variances for both FPL and DEF for complying with the Commission
goals established in 2009. FPL did not meet its annual goals on a system-wide basis. In Order
No. PSC-09-0855-FOF-EG, issued December 30, 2009, in Docket No. 080407-EG, the
Commission established annual numeric goals for FPL. The company’s March 30, 2010 initial
DSM filing to meet the goals was insufficient. As a result, the Commission directed FPL to file
specific program modifications or additions needed for the company’s DSM Plan to comply with
the goals established in the Order.
FPL filed a modified plan on March 25, 2011, that would modify certain programs to comply
with the goals set by the Commission. However, the modified plan, while complying with the
Order, would have caused a significant increase in the rates paid by FPL customers.
Consequently, the Commission directed FPL to continue with approved programs based on its
2004 DSM plan. This modification yielded significant increases in conservation and decreases
in the growth of energy and peak demand, while protecting ratepayers from undue rate increases.
In 2014, FPL achieved 89 percent of its winter MW goals, 77 percent of its summer MW goals,
and 56 percent of its annual GWh goals. FPL justifies not meeting the goals by stating it met
what its DSM plan is designed to accomplish—meeting the goals established in 2004.
16
DRAFT
DEF
Similarly, DEF did not meet its annual goals on a system-wide basis. In Order No. PSC-09-0855FOF-EG, issued December 30, 2009, in Docket No 080408-EG, the Commission established
annual numeric goals for DEF. The company’s March 30, 2010 initial DSM filing to meet the
established goals was insufficient. As a result, the Commission directed DEF to file specific
program modifications or additions needed for the company’s DSM Plan to reduce the consumer
rate impact and meet the original goals set by the Commission.
DEF’s modified plan also failed to meet the goals established by the Commission and would
have caused a significant increase in DEF’s customer rates. Consequently, the Commission
directed DEF to continue with approved programs based on its 2004 DSM plan. This plan
yielded significant increases in conservation and decreases in the growth of energy and peak
demand, while mitigating rate impacts to customers.
In 2014, DEF achieved 66 percent of its winter MW goals, 54 percent of its summer MW goals,
and 30 percent of its annual GWh goals. DEF notes while not achieving the residential goals, it
exceeded its commercial and industrial goals. The company adds “although DEF performed over
33,000 Home Energy Audits, and installed over 63,000 measures through its Home Energy
Improvement Program and Residential New Construction program . . . delivering cost-effective
DSM programs to its [residential] customers . . . [is] challenging . . . due to changes in building
codes and appliance standards.”7
TECO
TECO was able to meet the Commission goals. In 2014, TECO achieved 194 percent of its
winter MW goals, 158 percent of its summer MW goals, and 158 percent of its annual GWh
goals.
Gulf
In 2014, Gulf achieved 196 percent of its winter MW goals, 153 percent of its summer MW
goals, and 105 percent of its annual GWh goals. However, Gulf did not meet its residential GWh
energy goal but did meet its total GWh goal.
FPUC
In 2014, FPUC achieved 250 percent of its winter MW goals, 225 percent of its summer MW
goals, and 162 percent of its annual GWh goals. However, FPUC did not meet its C/I GWh
energy goal but met its total GWh goal.
JEA
For 2014, JEA achieved 180 percent of its winter MW goals, 142 percent of its summer MW
goals, and 110 percent of its annual GWh goals. However, JEA did not meet its C/I GWh energy
goal but did meet its total GWh energy goal.
7
http://www.floridapsc.com/utilities/electricgas/ARdemandside/2014/DEF.pdf
17
DRAFT
OUC
OUC did not meet the goals in total. In 2014, OUC achieved 67 percent of its winter and summer
MW goals and 78 percent of its annual GWh goals. OUC states that it “has been increasingly
emphasizing its DSM and conservation programs . . . not only do these programs help customers
save money by saving energy, the programs help OUC reduce emissions of greenhouse gases.”8
Table 9 shows 2014 annual residential, C/I, and total savings for each utility. Numbers in bold
show when a utility did not achieve its goals in a particular category.
Table 9
DSM Goals Compared to Annual (2014) Achievements
Utility
Winter (MW)
Goals Reduction
Summer (MW)
Goals Reduction
Annual (GWh)
Goals Reduction
FPL
Residential
Commercial/Industrial
Total
60
14
75
51
104
79
184
99
43
142
200
194
394
163
59
222
96
12
108
41
25
61
289
40
329
43
71
88
26
114
100
12
2
14
17
10
27
11
5
16
13
13
26
23
20
42
44
22
66
10
1
11
16
5
21
12
3
14
15
7
22
47
11
58
44
0.1
0.1
0.2
0.4
0.1
0.5
0.2
0.2
0.4
0.7
0.2
0.9
0.5
0.8
1.3
1.4
1
0
2
2
1
3
1
1
2
2
1
3
5
10
16
17
0.5
0.7
1.2
0.6
0.2
0.8
1.8
1.8
3.6
1.0
2.8
16
67
DEF
Residential
Commercial/Industrial
Total
30
36
57
TECO
Residential
Commercial/Industrial
Total
Gulf
Residential
Commercial/Industrial
Total
17
61
FPUC
Residential
Commercial/Industrial
Total
0.7
2.1
JEA
Residential
Commercial/Industrial
Total
10
7
OUC
Residential
Commercial/Industrial
Total
0.2
0.4
0.2
0.7
0.6
0.9
*Bold numbers indicate the utility did not meet its annual goals.
Source: FEECA utility demand-side management annual reports.
8
http://www.psc.state.fl.us/utilities/electricgas/ARdemandside/2014/OUC.pdf
18
1.8
DRAFT
2.4 Summary of Recent DSM and Goal Setting Activities
In mid 2013, the Commission set a schedule to establish goals for the FEECA utilities by
December 2014. This ensured that the Commission met the statutory requirement specifying
goals must be reviewed at least every five years.9 Both FPUC and OUC independently filed
petitions to use proxy methodologies to establish their goals. These utilities stated that costs
associated with updating the 2009 Technical Potential Study, performing the subsequent analyses
required by the Order Establishing Procedure, and testifying in support of the analyses would
represent a hardship to the companies and their ratepayers due to each company’s small size. On
August 4, 2013, the Commission voted to approve the proxy methodologies and excuse FPUC
and OUC from participating in the goals hearing.10
On July 21 and July 22, 2014, the Commission heard evidence from the FEECA utilities and
intervenors regarding the proposed DSM goals. Highlights from the proceeding included
discussions regarding the FEECA utilities’ numerical goals, payback/subsidization, consumer
education, and solar initiatives. When setting the goals, the Commission considers the costs and
benefits of conservation programs to customers who choose to participate in a program, as well
as costs and benefits to customers who do not participate. The Commission considers both
participants and non-participants as costs are recovered from the general body of ratepayers.
Based on evidence from the DSM goals setting proceeding, on November 25, 2014, the
Commission voted to approve goals based on a RIM cost-effectiveness analysis. The
Commission noted that FPL’s approved goals would be based on the unconstrained RIM test. By
approving goals based on the RIM test, the Commission ensured that rates would remain the
same or lower than rates would otherwise have been, and that cross subsidies among ratepayer
groups would be minimized. In addition, the Commission directed each utility to demonstrate in
its DSM plan how it would make all customers, in particular low-income customers, aware of
energy efficiency opportunities and utility programs.
The Commission also voted to allow the IOUs’ five-year solar pilot programs to end on
December 31, 2015. The Commission based its decision on evidence in the record that the
existing solar pilot programs were not cost-effective and represented a subsidy between the
general body of ratepayers and the limited participants in the programs. The Commission also
ordered the IOUs to educate low-income customers on energy conservation opportunities.
The Commission issued the DSM Final Order, Order No. PSC-14-0696-FOF-EU, on December
16, 2014. The utilities subsequently filed DSM plans designed to meet the newly established
goals. The Commission approved the utilities’ DSM plans in August 2015.
Afterward, the IOUs submitted program standards providing detailed descriptions on the
administrative approach for each DSM program. The Commission approved the program
standards in October 2015. As of January 2016, the utilities are implementing the programs
based on the latest DSM goals, plans and program standards approved by the Commission.
9
Docket Nos. 130199-EI through 130205-EI.
Order No. PSC-13-0645-PAA-EU, Docket Nos. 130204-EM and 130205-EI, issued December 4, 2013.
10
19
DRAFT
Through monitoring of the utilities’ conservation annual achievements, the Commission is able
to better understand which utility programs are effective and which may need additional
modification. Staff monitoring includes requesting information and supporting documentation
from the utilities to validate the results of their DSM programs.
Solar Programs
In 2009, the Commission instructed the IOUs to spend 10 percent of each company’s energy
conservation cost recovery expenditures as an annual cap for solar water heating and solar
photovoltaic (PV) pilot programs.11 As part of its proposed DSM plan, each IOU proposed solar
programs and the Commission approved these programs in 2010 and 2011. To comport with the
FEECA revision encouraging demand-side renewables, the Commission approved solar pilot
programs even though these programs were determined not to be cost-effective. The
Commission’s intent was to evaluate the results of the pilot programs in a subsequent goals
proceeding. Table 10 represents the Commission-approved annual expenditure cap for the IOUs’
solar pilot programs through 2015.
Table 10
Approved Annual Expenditures for Solar Pilot
Programs
Utility
Commission-Approved Annual Solar Expenditures
FPL
DEF
TECO
GULF
FPUC
Total
$15,536,870
$6,467,592
$1,531,018
$900,338
$47,233
$24,483,051
Source: Order No. PSC-09-0855-FOF-GU.
During 2014, the FEECA IOU utilities provided rebates for 2,456 solar photovoltaic and water
heating facilities for both the residential and commercial sectors. For many utilities, these
programs reached capacity just hours after approval, demonstrating a high customer demand for
solar photovoltaic rebates.
The FEECA IOUs also funded solar thermal (water heating) pilots for low-income customers as
well as other residential and commercial customers. In addition, FPL, DEF, and Gulf offered
solar pilot programs to fund photovoltaic panels for select schools until the end of 2015.
Table 11 reflects the quantity of photovoltaic and solar water heating installations funded by the
five IOUs for the residential and commercial sectors.
11
Order No. PSC-09-855-FOF-EG, Docket Nos. 080407-EG through 080413-EG, In re: Conservation review of
numeric conservation goals, issued December 30, 2009.
20
DRAFT
Table 11
Solar Pilot Program Installations in 2014
Installations
FPL
DEF TECO Gulf FPUC
Total
Residential Solar Water Heating
Commercial Solar Water Heating
Residential PV
Commercial PV
1,384
3
257
114
337
112
27
58
60
2
43
50
-
9
-
1,822
3
488
143
Total Solar Water Heating and PV
1,758
476
120
93
9
2,456
Sources: FPL: Docket 150000-OT, Undocketed Filing, FPL, DEF, TECO, Gulf, and FPUC; Staff's first Data
Request.
Table 12 reflects the five IOUs’ photovoltaic and solar water heating installation expenditures.
Table 12
Solar Water Heating and Photovoltaic Expenditures in 2014
Installations
Solar Water Heating
Expenditures
FPL
$2,598,694
DEF
TECO
$322,245
Gulf
FPUC
$97,190 $100,352 $45,015
Total
$3,163,496
PV Expenditures
$10,442,994 $4,800,473 $1,357,661 $490,000
$652 $17,091,780
Total Solar Water
Heating and PV
Expenditures
$13,041,688 $5,122,718 $1,454,851 $590,352 $45,667 $20,255,276
Sources: FPL: Docket 150000-OT, Undocketed Filing, FPL, DEF, TECO, Gulf and FPUC; Staff's first Data
Request.
In the 2014 DSM goals docket, Order PSC-14-0696-FOF-EU, the Commission voted to
terminate these programs by the end of 2015. Analysis of the pilot programs’ results showed that
the programs were not cost-effective, indicating that there were cross subsidies between
participants and non-participants. In addition, the costs of solar photovoltaic systems had
decreased significantly since the pilot programs were initiated.
ECCR Opt-Out
On September 5, 2014, in Docket 140002-EG, Wal-Mart and the Florida Industrial Power Users
Group (FIPUG) requested that industrial customers be allowed to separate their ECCR charges
into energy efficiency (EE) and demand response (DR) related costs. Wal-Mart and FIPUG
further requested that industrial and large commercial customers be allowed to opt out of paying
for the EE portion of their bill, stating that each could implement EE improvements into their
businesses in the most cost-effective manner.
21
DRAFT
The Commission addressed Wal-Mart’s and FIPUG’s request for an opt-out provision into a new
docket, Docket 140226-EI. The other parties in the docket—FPL, Duke, TECO, Gulf, FPUC, the
Southern Alliance for Clean Energy (SACE), and the Office of Public Counsel (OPC)—opposed
the opt-out request. The opposing parties stated that the proposed opt-out provision was
unnecessary, complex, costly to implement, and could result in subsidization by residential
customers of large commercial and industrial customers.
On December 3, 2015, the Commission denied the opt-out provision as proposed by Wal-Mart
and FIPUG. The Commission closed the record, but invited the petitioners—Wal-Mart and
FIPUG—to submit additional information on a potential pilot opt-out program and the impacts
on non-participating ratepayers.
22
DRAFT
Section 3. Overview of Florida’s Electricity Market
3.1 Energy Demand in Florida
Florida’s total electric consumption ranks among the highest in the country due to its sizeable
population and climate-induced high demand for cooling. Florida’s load patterns include high
air-conditioning loads in the summer and greater reliance on electricity, rather than natural gas,
for heating in the winter. These patterns result in large swings in peak demand. Understanding
these patterns and why they occur is imperative to appreciating the importance of conservation in
Florida.
Table 13 shows residential customers comprise approximately 89 percent of Florida’s electricity
customers, while purchasing approximately 53 percent of its electrical energy. Florida’s
commercial customers comprise approximately 11 percent of the number of customers and
purchase approximately 39 percent of its electrical energy. Industrial customers purchase the
remaining 8 percent of electricity in Florida.
Table 13
Florida's Electric Customers by Class and Consumption in 2014
Customer
Class
Residential
Commercial
Industrial
Total
Number of
Customers
% of
Customers
8,518,308
1,067,302
21,705
9,607,315
88.7%
11.1%
0.2%
100.0%
Energy Sales
(GWh)
111,826
83,326
17,223
212,375
% of
Sales
52.7%
39.2%
8.1%
100.0%
Source: Florida Reliability Coordinating Council Load and Resource Plan.
Florida’s high temperatures and humidity creates fluctuation in residential customers’ electrical
usage throughout the day. In the summer, residential energy use peaks in early evening, while in
the winter, residential energy usage peaks mid-morning and late evening.
Small and medium commercial loads are highest during the workday from 8am to 6pm. Large
commercial and industrial loads demonstrate more consistency throughout the day. Other states
with a larger industrial presence benefit from flatter large commercial and industrial loads, while
Florida faces more rapidly shifting peak load. The Commission-approved utility demand
response programs are designed to address the reduction or shifting of peak demand in order to
reduce the need for new generation.
Figure 1 shows the daily load curves for a typical Florida summer and winter day. In the
summer, air-conditioning demand starts to increase in the morning and peaks in the early
evening; a pattern which aligns with the sun’s heating of buildings. In comparison, the winter
load curve has two peaks—the largest in mid-morning, followed by a smaller peak in the late
evening—both of which correspond to heating loads.
23
DRAFT
Figure 1
Typical Florida Daily Electric Load Shapes
Source: Ten Year Site Plan responses provided to the Commission by the IOUs in the 2015 first Data Request.
Florida is typically a summer-peaking state, which means summer peak demand generally
controls the amount of required generation. As the 2015 FRCC Load and Resource Plan notes,
Florida’s 2014 summer peak demand was 48,825 MW, while the winter peak demand was
45,789 MW.
3.2 Florida’s Electric Generating Resources
Florida’s electric utilities’ resource-planning process aims to guarantee enough installed capacity
is available to meet projected customer demand and provide a contingency reserve in the event
of planned outages, forced outages, or spikes in load. At the point in the planning process that the
timing of capacity additions is known, the appropriate generating technology and fuel type is
determined to provide the needed energy and maintain reliability.
Electric generating units typically are categorized as baseload, intermediate, or peaking. Aside
from planned and forced outages, baseload units are scheduled to operate continuously.
Intermediate units generate power to follow load for periods of time, but are not planned to
operate nonstop. Peaking units supplement baseload and intermediate power, operating less
frequently during high-demand periods. Utility-sponsored conservation programs help to reduce
peak demand and energy consumption, offsetting the need for new generating capacity.
Florida’s mix of electric utilities is made up of five IOUs, 35 municipally-owned electric utilities
and 18 rural electric cooperatives. In total, these utilities currently have 54,533 MW of summer
electric generating capacity and 58,446 MW of winter generating capacity.
24
DRAFT
Non-utility generators in the state provide an additional 4,355 MW of summer electric generating
capacity and 4,652 MW of winter generating capacity. Supplementary capacity is purchased
from out-of-state utilities over the Florida-Georgia transmission interconnections.
The most prominent fuel source for generation in Florida is natural gas. Table 14 below provides
a breakdown of the fuel sources used to generate power in Florida.
Table 14
Generation Sources in Florida in 2014
Generation Source
Percent of Generation
Gas
Coal
Nuclear
Other
Interchange
Non-Utility Generation, Primarily Gas
Municipal Solid Waste
Biomass
Other Renewables (Landfill Gas, Solar, Hydro)
Residual
Distillate
58.8%
23.2%
11.6%
2.1%
1.9%
0.8%
0.6%
0.5%
0.3%
0.1%
0.1%
Source: 2014 Actual Data from the 2015 Florida Reliability Coordinating Council Load and Resource Plan
The relatively low price of natural gas, along with the EPA’s Clean Power Plan, are expected to
result in Florida substituting additional gas generation or renewables for coal generation.
Therefore, it is possible that Florida’s reliance on natural gas may increase beyond 59 percent.
Approximately 1,638 MW of Florida’s generating capacity is comprised of renewables,
according to the Commission’s Ten Year Site Plan Review. Municipal solid waste and biomass
represent the majority of Florida’s renewable generation. Other major types of renewable
generation in Florida include waste heat, hydroelectric, landfill gas, and solar.
Nuclear generation has steadily decreased since 2010 due to the decommissioning of DEF’s
Crystal River Unit 3. However, uprates consisting of approximately 520 MW of capacity were
completed on Florida’s four remaining nuclear units in 2013. In addition, Florida is scheduled to
add new nuclear generation in 2027 and 2028, when FPL’s Turkey Point Units 6 and 7 are
planned to come on-line. This will add an additional combined capacity of 2,200 MW.
25
DRAFT
Section 4. Educating Florida’s Consumers on Conservation
4.1 Commission Consumer Education Outreach
While the Commission has statutory authority to require conservation efforts by regulated
utilities, as part of the agency’s outreach program, the Commission complements utility efforts
with its own conservation related activities. To effectively reach as many consumers as possible,
the Commission’s consumer education program uses a variety of tools to share conservation
information, including the Commission website, public events, brochures, press releases,
Consumer Connection E-newsletter, and Twitter. Conservation information is also available
through other governmental and utility websites. Section 4.2 lists related websites for state and
federal agencies, investor-owned electric utilities, and local gas distribution companies to further
assist consumers. Most of the data in this section covers January through September 2015, due to
the report’s publication date.
Triple E Award
For the second year, the Commission is recognizing small businesses for implementing
Commission-approved, cost-effective conservation programs. Covering the state’s five major
geographic areas, each month the Commission gives its Triple E Award–for Energy Efficiency
Efforts–to a local business that has accomplished superior energy efficiency by working with its
local utility to help reduce its energy footprint. The Commission’s Triple E Award recipients
receive an award plaque, are highlighted through a press release issued statewide, and are
featured under Hot Topics on the Commission’s homepage, www.Floridapsc.com.
Electronic Outreach
An assortment of information is available on the Commission website to help consumers save
energy. According to data from Google Analytics, website page views for January through
October 2015 totaled 1,102,945. Of these, consumer assistance pages received 67,866 views.
One of the more popular website destinations is the Commission’s Conservation House. The
interactive graphic provides informative “point and click” conservation tips, helping consumers
discover ways to reduce their monthly utility bills. The Conservation House is located at:
http://www.psc.state.fl.us/ConsumerAssistance/EnergyConservationHouse?lang=E.
The Commission also features several energy conservation brochures online and in print to help
consumers save energy. Brochures may be viewed and printed directly from the website,
http://www.floridaPSC.com/publications/, ordered free online, or requested by mail or phone.
From January through September 2015, 44,318 brochures were mailed by request.
With its interactive design, the Commission’s quarterly Consumer Connection E-Newsletter
features current energy and water conservation topics, consumer tips, and general Commission
information. In text and on video, consumer tips highlighted in 2015 include Proper Tree
Planting Near Utility Lines, Florida Telecommunications Relay, and Florida Friendly
Landscaping. The Consumer Connection E-Newsletter is tweeted and sent to consumers, who, at
http://www.floridapsc.com/ConsumerAssistance/ConnectionNewsletter can subscribe to receive
the free newsletter. Commission news releases, including those on conservation, are distributed
27
DRAFT
electronically to legislators, local government officials, and Florida Cabinet members monthly in
the FPSC Update. The Update is also featured and archived on the Commission’s homepage.
National Consumer Protection Week
National Consumer Protection Week, highlighting consumer protection and education efforts,
was important to the Commission’s 2015 conservation education efforts. For the 17th Annual
National Consumer Protection Week (March 1-7, 2015), Commission Chairman Art Graham
teamed up with the Jacksonville Jaguars to remind consumers to “Suit Up and Stay Protected!”
to tackle energy related fraud schemes and high energy usage.
Also during National Consumer Protection Week, the Commission made presentations in North
Lauderdale, Hallandale Beach, Miramar, LaBelle, Punta Gorda, and Arcadia, showing
consumers how to save money through energy and water conservation and how to avoid scams.
Older Americans Month
For the fourth year, the Commission participated in Older Americans Month, a national project
celebrated each May to honor and recognize older Americans for their contributions to families,
communities, and society. Get into the Act was this year’s theme, and the Commission held ten
education sessions on ways to conserve energy and water, and strategies to prevent becoming a
victim of fraud at senior communities in the Fort Myers area. The Commission also distributed
brochures and publications at the Jacksonville Expo, where over 5,500 seniors attended in May.
Energy Awareness Month
Each October, the U.S. Department of Energy (DOE) sponsors National Energy Awareness
Month to promote smart energy choices and highlight economic and job growth, environmental
protection, and increased energy independence.
Highlighting the 2014 Energy Awareness Month, Chairman Art Graham joined Beaches Energy
Services representatives to perform a residential energy audit. A Neptune Beach homeowner
learned how to implement easy home energy efficiency measures during the audit. By checking
and making minor improvements to insulation, water heating, HVAC system, lighting, windows,
and doors, the home’s overall energy efficiency improved, making it more comfortable and more
affordable.
Community Events
The Commission continuously seeks existing and new community events, venues, and
opportunities where conservation materials can be distributed and discussed with citizens. This
year, the Commission participated in consumer programs and distributed energy and water
conservation materials through partnerships with governmental entities, consumer groups, and
many other service organizations.
Examples of events where conservation information was shared during 2015 include:
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Senior Day at the Capitol
Active Living Expo
Earth Day at Cascades Park
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Wiegel Senior Center
Players Community Center
Cherry Tree Apartments
Barry Manor Apartments
St. Johns River Apartments
The Villas at Hampton Park
The Villas at Carver Park
Joseph Meyerhoff Senior Center
Austin Hepburn Senior Center
L.J. Nobles Senior Center
Rebecca Neal Owens Center
Miramar Senior Center
Friendship Centers of DeSoto County
Southside Senior Day at Jake Gaither Community Center
Green Cove Springs Center
Weigel Senior Center
Players Community Center
The Reverend Dr. Martin Luther King, Jr., Empowering Senior Day
6th Annual Southside Community Health & Fitness Fair at Maranatha Seventh Day
Adventist Church
Edgar Johnson Senior Center
Sunshine Villas Apartments
Renaissance Preserve Apartments
Dr. Piper Memorial Center
Lake Kennedy Senior Center
Bonair Tower Apartments
Sandpiper Run Apartments
Hatton B. Rogers Apartments
Goodwill Industries - Daytona, Orlando, Naples, Ft. Myers, Lehigh, and Port
Charlotte
Jacksonville Senior Expo
Hearings and Customer Meetings
As an ongoing outreach initiative, the Commission supplies conservation brochures to consumers
at Commission hearings and customer meetings across the state. From January through
September 2015, Commission staff distributed information and addressed consumer questions at
15 public hearings and meetings. Consumers who file a complaint with the Commission about
high electric or natural gas bills also receive conservation information.
Library Outreach Program
Each year the Commission provides educational packets, including publications and Lifeline
brochures and applications in English, Spanish, and Creole, to Florida public libraries across the
state for consumer distribution. The Commission’s Library Outreach Campaign reached 583
state public libraries and branches in 2015. This year, the Commission sent the materials via a
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CD that included a print-ready copy of brochures for easy reproduction. Following the
Campaign, many libraries’ requests for additional publications have been filled.
Media Outreach
News releases are distributed to the media on major Commission decisions, meetings, and public
events. The Office of Consumer Assistance & Outreach also issues news releases urging
conservation. For instance, in a March news release, the Commission highlighted the federal
government’s Fix a Leak Week and shared several water conservation strategies. In May, the
Commission issued a release for Older Americans Month outlining the importance of learning to
conserve resources and save money, and a release on National Drinking Water Week that
included conservation techniques and water-saving tips.
Youth Education
The Commission emphasizes conservation education for Florida’s young consumers. During
2015, the Commission continued to produce its student resource booklet--Get Wise and
Conserve Florida!--to teach children about energy and water conservation. The booklet has been
distributed to all public libraries through the Library Outreach Program and is available at all
Commission outreach events. The student resource book continues to be a favorite during senior
events.
On March 5, 2015, the Commission and the City of Tallahassee teamed up to encourage young
people to conserve water in observance of the 1st Annual North Florida Water Festival. Leon
High School drama students performed Water Wiser, a Commission conservation play, at the
educational event in Cascades Park.
Water Wiser and another conservation play, Turn It On, Turn It Off, were developed by the
Commission to be performed by teen drama groups or young school children for their
classmates, thereby increasing the students’ interest in learning about conservation. Both plays
are included in the Arts in Education Directory, produced by the Tallahassee-Leon County
Council on Culture and Arts that serves as a resource guide for teachers seeking information
about educational programs available in the area.
4.2 Related Web Sites
State Agencies and Organizations
Florida Public Service Commission – http://www.floridapsc.com/
Florida Department of Environmental Protection –http://www.dep.state.fl.us
The Office of Energy – http://www.freshfromflorida.com/Divisions-Offices/Energy
Florida Solar Energy Center – http://www.fsec.ucf.edu/
Florida Weatherization Assistance - http://floridajobs.org/community-planning-anddevelopment/community-services/weatherization-assistance-program
Florida’s Local Weatherization Agencies List – http://floridajobs.org/community-planning-anddevelopment/community-services/weatherization-assistance-program/contact-your-localweatherization-office-for-help
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U.S. Agencies and National Organizations
U.S. ENERGY STAR Program –http://www.energystar.gov/
U.S. Department of Energy – Energy Efficiency and Renewable Energy Information http://www.eere.energy.gov/
National Energy Foundation –https://nef1.org/
Florida’s Electric Utilities Subject to FEECA
Florida Power & Light Company –http://www.fpl.com/
Duke Energy Florida, Inc. –http://www.duke-energy.com/
Tampa Electric Company – http://www.tampaelectric.com/
Gulf Power Company – http://www.gulfpower.com/
Florida Public Utilities Company –http://www.fpuc.com/
JEA –http://www.jea.com/
Orlando Utilities Commission –http://www.ouc.com/
Florida’s Investor-Owned Natural Gas Utilities
Peoples Gas System –http://www.peoplesgas.com/
Florida City Gas –http://www.floridacitygas.com/
Florida Public Utilities Company – http://www.fpuc.com/
St. Joe Natural Gas Company –http://www.stjoenaturalgas.com/
Sebring Gas System http://www.sebringgas.com/
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Appendix 1. Conservation Activities of FEECA Utilities for
2015
FEECA IOUs
A. Duke Energy Florida, Inc.
Residential Programs
Home Energy Check
This program is a requirement for participation in other residential programs and provides DEF
customers with an analysis of energy consumption and recommendations on energy efficiency
improvements. Seven types of energy audits are available: the free walk-through, the paid walkthrough ($15 charge), the energy rating (Energy Gauge), the mail-in audit, an Internet option, a
phone-assisted audit, and a student audit.
Home Energy Improvement
This efficiency program provides existing residential customers incentives for energy efficient
heating, AC, insulation upgrades, duct leakage repair, reflective roofing products, high
performance windows, window film, and solar screens.
Residential New Construction (Home Advantage)
The Home Advantage Program promotes energy efficient construction which exceeds the Florida
Energy Code. Information, education, and consultation are provided to homebuilders,
contractors, realtors, and home buyers on energy related issues and efficiency measures.
Neighborhood Energy Saver
This program assists low-income families with escalating energy costs by implementing a
comprehensive package of electric conservation measures at no cost to eligible customers. In
addition to installing these measures, DEF seeks to achieve three important goals: educate
participating families on proper energy efficiency techniques and best practices, change their
energy use behavior, and manage their energy usage.
Low-Income Weatherization Assistance Program
This program’s goal is to integrate DEF’s DSM program measures with the Department of
Community Affairs and local weatherization providers to deliver energy efficiency measures to
low-income families. Through this partnership, DEF assists local weatherization agencies by
providing energy education materials and financial incentives to weatherize the homes of lowincome families.
Energy Management (Residential and Commercial)
This load management program incorporates direct radio control of selected customer equipment
to reduce system demand during peak capacity periods and/or emergency conditions by
temporarily interrupting selected consumer appliances for special periods of time. Customers
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have a choice of options and receive a credit on their monthly electric bills depending on the
options selected and their monthly kWh usage.
Commercial/Industrial Programs
Business Energy Check
This free audit for non-residential customers can be completed at the facility by an auditor or
online by the business customer. A paid audit provides a more thorough energy analysis for nonresidential facilities. The program acts as a motivational tool to identify, evaluate, and inform
consumers on cost-effective energy saving measures for their facilities. The Business Energy
Check is the foundation of the Better Business Program and a requirement for participation.
Better Business
This efficiency program provides incentives to existing commercial and industrial customers for
heating, AC, motors, water heaters, roof installation upgrade, direct leakage and repair, window
film, cool roof, and lighting.
Commercial/Industrial New Construction
This efficiency program provides incentives for the design and construction of energy efficient
commercial and industrial facilities, including energy efficient heating, AC, motors, water
heating, window film, insulation, leak free ducts, cool roof, and lighting.
Florida Customer Incentive Program
This program encourages conservation efforts that are not supported by DEF’s other programs.
DEF evaluates major equipment replacement or other actions that substantially reduce DEF’s
peak demand requirements to determine their impact on DEF’s system. If cost-effective, these
actions may qualify for an incentive to shorten the payback time of the project.
Standby Generation
This program provides an incentive for customers to voluntarily operate their on-site generation
during times of system peak.
Interruptible Service Program
This program is a rate tariff which allows DEF to switch off electrical service to customers
during times of capacity shortages. The signal to operate the automatic switch is operated by the
Energy Control Center. In return for this interruption, the customers receive a monthly rebate on
their kW demand charge.
Curtailable Service Program
This program is a dispatchable DSM program in which customers contract to curtail or shut
down a portion of their load during times of capacity shortages. The curtailment is done
voluntarily by the customer when notified by DEF. In return for this cooperation, the customer
receives a monthly rebate for the curtailable portion of their load.
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Research and Development and Pilot Programs
Solar Water Heater for Low Income Residential Customers Pilot
This program was a customer renewable energy measure designed to assist low-income families
with energy costs by incorporating a solar thermal water heating system in their residence while
it is under construction. This pilot expired at the end of 2015.
Solar Water Heater with Energy Management
This pilot program encouraged residential customers to install a solar thermal water heating
system. The pilot requires customers to complete a Home Energy Check before the solar thermal
system is installed. This pilot expired at the end of 2015.
Residential Solar Photovoltaic Pilot
This pilot program encouraged residential customers to install new PV systems on their home.
The program design included an annual reservation process for pre-approval. This pilot expired
at the end of 2015.
Commercial Solar Photovoltaic Pilot
This pilot program encouraged commercial customers to install new PV systems on their
facilities. The pilot design included an annual reservation process for pre-approval. This pilot
expired at the end of 2015.
Photovoltaic for Schools Pilot
This pilot program was designed to promote energy education and provide participating public
schools with new PV systems at no cost to the school. The pilot program was limited to an
annual target of one system. 32 schools received solar since 2011. This pilot expired at the end of
2015.
Research and Demonstration Pilot
This program’s purpose was to research technology and establish R&D initiatives to support the
development of renewable energy pilot programs. This pilot expired at the end of 2015.
Technology Development
This program allows DEF to undertake certain development and demonstration projects which
have promise to become cost-effective energy efficiency programs.
Qualifying Facility
This program supports the costs to administer and facilitate the purchase of as-available energy
and firm energy and capacity from qualifying facilities including those that utilize renewable
energy sources.
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B. Florida Power & Light Company
Residential Programs
Residential Home Energy Survey Program (HES)
This program educates customers on energy efficiency and encourages implementation of
recommended practices and measures, even if these are not included in FPL’s DSM programs.
The HES is also used to identify potential candidates for other FPL DSM programs.
Residential Building Envelope Program
This program encourages qualified customers to install energy efficient building envelope
measures that cost-effectively reduce FPL’s coincident peak air-conditioning load and customer
energy consumption.
Residential Duct System Testing and Repair Program
This program identifies AC duct system leaks and has qualified contractors repair those leaks.
Residential Air Conditioning Program
This program provides financial incentives for residential customers to purchase a more efficient
unit when replacing an existing AC system.
Residential New Construction Program (BuildSmart)
This program’s objective is to encourage the design and construction of energy efficient homes
that cost-effectively reduce FPL’s coincident peak load and customer energy consumption.
Residential Low-Income Weatherization Program
This program employs a combination of energy audits and incentives to encourage low-income
housing administrators to perform tune-ups of HVAC systems and install reduced air infiltration
energy efficiency measures.
Residential Load Management Program (On Call Program)
This program offers voluntary load control to residential customers.
Commercial/Industrial Programs
Business Energy Evaluation Program
This program provides evaluations of business customers’ existing and proposed facilities and
encourages energy efficiency by identifying DSM opportunities and providing recommendations
to the customer.
Business Efficient Lighting Program
This program encourages the installation of energy efficient lighting measures in business
facilities.
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Business Heating, Ventilating, and Air Conditioning Program
This program reduces the current and future growth of coincident peak demand and energy
consumption of business customers by increasing the use of high efficiency HVAC systems.
Business Custom Incentive Program
This program assists FPL’s business customers achieve electric demand and energy savings that
are cost-efficient to all FPL customers. FPL provides incentives to qualifying customers who
purchase, install, and successfully operate cost-effective energy efficiency measures not covered
by other FPL programs.
Business Building Envelope Program
This program encourages eligible business customers to increase the efficiency of the qualifying
portion of their building’s envelope to reduce HVAC energy consumption and demand.
Business Water Heating Program
This program encourages business customers to install qualifying Heat Recovery Units or Heat
Pump Water Heater equipment.
Business Refrigeration Program
This program encourages eligible business customers to install energy saving equipment to
reduce or eliminate the use of electric heating elements needed to prevent condensation on
display case doors and to defrost freezer doors.
Business On Call Program
This program offers voluntary load control of central AC to General Service and General Service
Demand customers.
Commercial/Industrial Load Control Program
This program reduces coincident peak demand by controlling customer loads of 200 kW or
greater during periods of extreme demand or capacity shortages.
Commercial/Industrial Demand Reduction Program
This program reduces coincident peak demand by controlling customer loads of 200 kW or
greater during periods of extreme demand or capacity shortages.
Cogeneration and Small Power Production
This program facilitates the installation of cogeneration and small power production facilities.
Research and Development and Pilot Programs
Conservation Research and Development Program
This program evaluates emerging conservation technologies to determine which are worthy of
further evaluation as candidates for program development.
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Renewable Research and Demonstration Project
In this project, FPL conducted demonstrations and renewable technology research projects to
increase awareness of solar and to quantify the effectiveness of emerging renewable
technologies. This pilot expired at the end of 2015.
Residential Solar Water Heating Pilot
This pilot encouraged residential customers to install solar water heating systems. This pilot
expired at the end of 2015.
Residential Solar Water Heating (Low Income New Construction) Pilot
This pilot was a partnership with non-profit organizations to provide solar water heating systems
to selected low income housing developments. This pilot expired at the end of 2015.
Residential Photovoltaic (PV) Pilot
This pilot encouraged residential customers to install PV systems. The program design included
an annual reservation process. This pilot expired at the end of 2015.
Business Solar Water Heating Pilot
This pilot encouraged business customers to install solar water heating systems. The pilot
expired at the end of 2015.
Business Photovoltaic (PV) Pilot
This pilot encouraged business customers to install PV systems. The program design included an
annual reservation process. This pilot expired at the end of 2015.
Business Photovoltaic (PV) for Schools Pilot
In this pilot, FPL installed PV systems and provided supporting educational training and
materials for selected schools in most public school districts in FPL’s territory to demonstrate
and educate students on PV. This pilot expired at the end of 2015.
C. Florida Public Utilities Company
Residential Programs
Residential Energy Survey Program
This program is provided at no cost to the customer and provides participating customers with
information they need to determine which energy saving measures are best suited to their
individual needs and requirements. The objective of this type of survey is to provide FPUC’s
residential customers with energy conservation advice that encourages the implementation of
efficiency measures resulting in energy savings for the customer.
Residential Heating & Cooling Efficiency Upgrade Program
This program is directed at reducing the rate of growth in peak demand and energy throughout
the company’s electricity service territories. The program does this by increasing the saturation
of high-efficiency heat pumps and central air-conditioning systems.
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Solar Water Heating Program
This program is directed at reducing the consumption of electric energy and fossil fuels in
FPUC’s service territories. The company provides a rebate of $200 for eligible solar water
heating installations. All FPUC customers are eligible to participate in this program, but each
customer can only receive one incentive payment of $200, regardless of the amount of
installations. Though the Commission did not specifically mention FPUC, in its 2014 DSM goals
order, the Commission ordered that the existing solar pilot programs should end due to not being
cost-effective. It therefore appears that 2015 will be the last year of the FPUC solar water heating
program.
Solar Photovoltaic Program
The primary purpose of this program is to encourage the installation of solar photovoltaic
systems and reduce the consumption of fossil fuels used to generate electricity. FPUC provides
an incentive of $2.00 per watt of dc solar PV installed, up to a maximum of $5,000. Excess
generation from the solar PV installation is purchased by FPUC. Though the Commission did not
specifically mention FPUC, in its 2014 DSM goals order, the Commission ordered that the
existing solar pilot programs should end due to not being cost-effective. It therefore appears that
2015 will be the last year of the FPUC solar photovoltaic program.
Commercial Programs
Commercial Energy Survey Program
This program provides participating customers with a free energy audit that provides customized
information to meet the individual needs of small and large customers. The survey process
consists of an on-site review of the customer’s facility operation, equipment, and energy usage
pattern by a FPUC Energy Conservation Representative. The Energy Conservation
Representative identifies areas of potential reduction in kW demand and kWh consumption.
Commercial Heating & Cooling Efficiency Upgrade Program
This program is directed at reducing the rate of growth in peak demand as well as reducing
energy consumption throughout FPUC’s commercial sector. The program will do this by
increasing the saturation of high-efficiency heat pumps and central AC systems.
Commercial Indoor Efficient Lighting Rebate Program
This program is directed at reducing peak demand and energy consumption by decreasing the
load presented by commercial lighting equipment. To serve this purpose, this program requires
that commercial customers achieve at least 1,000 watts of lighting reduction by either replacing
ballasts and lamps, qualifying for a $.010 per watt reduced incentive, or by replacing lamps only
for an incentive of $0.025 per watt reduced (maximum $100 rebate)
Commercial Window Film Installation Program
This program is directed at reducing peak demand and energy by decreasing the load on
commercial AC equipment. To serve this purpose, FPUC will provide rebates of $0.50 per
square foot of covered area (at a maximum of $100 per customer) for solar window film
installations with a shading coefficient of 0.45 or less.
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Commercial Chiller Upgrade Program
This program is directed at reducing the rate of growth in peak demand and energy through
FPUC’s commercial sector. To serve this purpose, this program requires that commercial
customers replace existing chillers with a more efficient system. By doing so, they will qualify
for an incentive of up to $100 per kW of additional savings above the minimum efficiency
levels.
Educational and Research Programs
Educational/Low Income Program
FPUC presently has energy education programs that identify low-cost and no-cost energy
conservation measures. To better assist low-income customers in managing their energy
purchases, the presentations and formats of these energy education programs are tailored to the
audience.
Conservation Demonstration and Development Program
The primary purpose of this program is to pursue research, development, and demonstration
projects that are designed to promote energy efficiency and conservation. This program will
supplement and complement the other demand-side management programs offered by FPUC.
The program is meant to be an umbrella program for identification of new technologies.
Affordable Housing Builders and Providers Program
In this program, FPUC will identify the affordable housing builders within the service area and
will encourage them to attend educational seminars and workshops related to energy efficient
construction, retrofit programs, and financing programs. FPUC will work with the Florida
Energy Extension Service and other seminar sponsors to offer to facilitate a minimum of two
seminars and/or workshops per year.
D. Gulf Power Company
Residential Programs
Residential Energy Audit and Education
This program is the primary educational program to help customers improve the energy
efficiency of their new or existing home through energy conservation advice and information
that encourages the implementation of efficiency measures and behaviors resulting in utility bill
savings.
Community Energy Saver Program
This program assists low-income families with managing their energy costs. Through this
program, qualifying customers receive the direct installation of conservation measures at no cost
to them. The program also educates families on energy conservation techniques.
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Landlord/Renter Custom Incentive Program
This program is designed to increase energy efficiency in the residential rental property sector.
This program promotes the installation of various energy efficiency measures available through
other programs, such as HVAC, insulation, windows, water heating, lighting, and appliances.
HVAC Efficiency Improvement Program
This program is designed to increase energy efficiency and improve HVAC cooling system
performance for new and existing homes. These efficiencies are realized through:
 HVAC maintenance
 HVAC early retirement (for inefficient systems)
 Duct repair and other means
Heat Pump Water Heater Program
This program provides incentives directly to the customer for the installation of high-efficiency
Heat Pump Water Heating equipment for domestic hot water production.
Ceiling Insulation Program
This program provides incentives to encourage customers to install high efficiency insulation or
increase insulation in existing residential single-family and multi-family homes. The objective of
this program is to reduce heat loss and heat gain from both conductive and convective means by
increased insulation.
High Performance Window Program
This program provides incentives to install high-efficiency windows or window film in existing
or new residential applications. The objective of the program is to reduce solar heat gain into a
home which, in turn, leads to reduced HVAC loads and operating costs.
Reflective Roof Program
This program provides incentives to install ENERGY STAR qualified cool/reflective roofing
products when constructing a new home or replacing the roof on an existing residence. The
objective of this program is to significantly decrease the amount of heat that is transferred
through roof assemblies and into vented attic spaces.
Variable Speed/Flow Pool Pump Program
This program provides an incentive to encourage the installation of high-efficiency variable
speed or variable flow pool pumping and control equipment in both new and existing residential
applications. The objective of this program is to reduce the energy, demand, and cost associated
with swimming pool operation.
Energy Select / Energy Select Lite
The program is designed to provide customers with a means of controlling their energy
purchases by conveniently programming their heating and cooling systems and major appliances,
such as electric water heaters and pool pumps, to automatically respond to prices that vary during
the day and by season. The Energy Select Lite subset of the program was originally intended to
provide a separate means to expand price responsive load management program participation to
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include residential customers who did not meet certain participation standards for the Energy
Select Program.
Self-Install Energy Efficiency Program
This program promotes the purchase and installation of ENERGY STAR rated appliances for
residential customers. The program focuses on increasing customer awareness of the benefits of
energy efficient technologies and products through customer education and retail partnerships.
Refrigerator Recycling Program
This program is intended to eliminate inefficient or secondary refrigerators in an environmentally
safe manner and produce cost-effective long-term energy and peak demand savings in the
residential sector. The objective of the program is to increase customer awareness of the
economic and environmental costs associated with running inefficient, older appliances in a
household, and to provide eligible customers with free refrigerator and freezer pick-up services
in addition to a small financial incentive.
Commercial Programs
Commercial/Industrial Audit
This program is designed to provide professional advice to existing commercial and industrial
customers on how to reduce, and make efficient use of, energy. This program covers from the
smallest commercial customer, requiring only a walk-through survey, to the use of computer
programs which will simulate several design options for very large energy intensive customers.
Commercial HVAC Retrocommissioning Program
This program offers basic retrocommissioning at a reduced cost for qualifying installations of
existing commercial and industrial customers. It is designed to diagnose the performance of the
HVAC cooling unit(s) operating in commercial buildings with the support of an independent
computerized quality control process.
Commercial Building Efficiency Program
This program is designed as an umbrella efficiency program for existing commercial and
industrial customers to encourage the installation of eligible high-efficiency equipment as a
means of reducing energy and demand. The goal of the program is to increase awareness and
customer demand for high-efficiency, energy saving equipment.
HVAC Occupancy Sensor
This program is intended to help manage energy consumption and reduce energy waste in hotel
rooms by providing hotel owners in Gulf’s service area the opportunity to automatically control
temperature settings in hotel rooms when the rooms are unoccupied.
High Efficiency Motor Program
This program is designed to encourage commercial and industrial customers to install premiumefficiency motors in new or existing facilities. The objective is to reduce demand and energy
associated with electric motors by encouraging the replacement of worn out, inefficient motors
with high efficiency motors.
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Food Service Efficiency Program
This program encourages the installation of ENERGY STAR qualified or equivalent energy
efficient commercial and industrial food service equipment. The objective of the program is to
reduce energy consumption and demand as well as operating costs for the customer.
Commercial/Industrial Custom Incentive
This program is designed to establish the capability and process to offer advanced energy
services and energy efficient end-user equipment to C/I customers. These energy services
include comprehensive audits, design, and construction of energy conservation projects.
Energy Select Electric Vehicle Pilot Program
The Energy Select Electric Vehicle Pilot Program provides residential customers with an
incentive to encourage electric vehicle transportation and off-peak charging through the Energy
Select Program. The objective of this pilot program is to measure customer acceptance of electric
vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) as well as customer response to
charging these electric vehicles using Gulf’s existing Energy Select program.
Research and Development Programs
Renewable Energy
The Renewable Energy Program promotes the deployment of demand-side renewable
technologies through a portfolio of four programs—solar for schools, solar PV, solar thermal,
and solar thermal water heater for low income. This program expired in 2015.
Conservation Demonstration and Development
A package of conservation programs was approved by the Commission in Order No. 23561 for
Gulf to explore and to pursue research, development, and demonstration projects designed to
promote energy efficiency and conservation. This program serves as an umbrella program for the
identification, development, demonstration, and evaluation of new or emerging end-use
technologies.
E. Tampa Electric Company
Residential Programs
Residential Energy Audits
On-site audits of premises, online audits, and telephone surveys instruct customers how to use
conservation measures and practices to reduce their energy usage.
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Duct Repair
This program reduces weather-sensitive peaks by offering incentives to encourage the repair of
the air distribution system in a residence.
Heating and Cooling Program
This program reduces weather-sensitive peaks of residential customers by providing incentives
for the installation of high efficiency HVAC equipment at existing residences.
Residential Building Envelope Improvement
This program reduces demand and saves energy by decreasing the load on residential HVAC
equipment. Eligible customers can receive incentives to add ceiling insulation exterior walls,
window replacements and window film.
Prime Time Program
This load management program directly controls the larger loads in residential customers’ homes
such as AC, water heating, electric space heating, and pool pumps. Participating customers
receive monthly credits on their electric bills. The program is currently closed to new
participants.
Renewable Energy Initiative
This program assists in the delivery of renewable energy for TECO’s Renewable Energy
Program by providing funding for program administration, evaluation, and market research.
Renewable Energy Systems Initiative (Pilot)
This is a five year renewable energy pilot program that uses rebates and incentives to encourage
the installation of solar photovoltaic and solar hot water heating technologies. This pilot program
expired in 2015.
Price Responsive Load Management
This program reduces weather sensitive peak loads by offering a multi-tiered rate structure as an
incentive for participating customers to reduce their electric demand during high cost or critical
periods of generation.
Residential Low-Income Weatherization
This program saves demand and energy by decreasing the energy consumption at a residence.
The program is aimed at low-income customers and provides, at no cost to qualified customers,
the following: eight compact fluorescent lamps, one water heater wrap, three low-flow faucet
aerators, two showerheads, an HVAC window, a weather-stripping kit, wall plate thermometers,
HVAC filters, weather-stripping, caulking, and ceiling insulation (up to R-19).
Educational Energy Awareness – Pilot
This program saves demand and energy by increasing customer awareness of available
conservation measures and practices that can reduce the individual’s energy use. Tampa Electric
partners with schools within its service area at the eighth grade level to teach students the
benefits of energy efficiency.
44
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Energy Plus Homes
This program encourages new home construction to be above the minimum energy efficiency
levels required by the State of Florida Energy Efficiency Code for New Construction through the
installation of high efficiency equipment and building envelope options.
Commercial Programs
Cogeneration
This program encourages the development of cost-effective commercial and industrial
cogeneration facilities through the evaluation and administration of standard offers and the
negotiation of contracts for the purchase of firm capacity and energy.
Commercial Cooling
The purpose of this program is to encourage the installation of high efficiency direct expansion
commercial AC equipment.
Commercial Lighting
This program reduces weather-sensitive peaks by encouraging investment in more efficient
lighting technology in commercial facilities.
Commercial Load Management
This load management program’s purpose is to achieve weather-sensitive demand reductions
through load control of equipment at the facilities of firm commercial customers.
Standby Generator
This program uses the emergency generation capacity at firm commercial and industrial facilities
to reduce weather-sensitive peak demand.
Conservation Value
This incentive program for firm commercial and industrial customers encourages additional
investments in substantial demand shifting or demand reduction measures.
Industrial Load Management
This program is for large industrial customers with interruptible loads of 500 kW or greater.
Commercial Duct Repair
This program reduces weather-sensitive peaks by offering incentives to encourage the repair of
the air distribution system in a facility.
Commercial Building Envelope Improvement
This program saves demand and energy by decreasing the load on HVAC equipment. Eligible
customers can receive incentives to add ceiling insulation, exterior wall insulation, and window
film.
45
DRAFT
Commercial Efficient Motors
This program encourages commercial/industrial customers to install premium-efficiency motors
in new or existing facilities through incentives. The program aims to reduce the growth of peak
demand and energy by encouraging customers to replace worn out, inefficient equipment with
high efficiency equipment that exceeds minimum product manufacturing standards.
Research and Development
DSM Research and Development
A five-year Research and Development program is directed at end-use technologies (both
residential and commercial) not yet commercially available, where insufficient data exists for
measure evaluations specific to Central Florida climate.
46
DRAFT
Non-IOU FEECA Utilities
A. JEA
Residential Programs
Residential Energy Audit Program
This program uses auditors to examine homes, educate customers and make recommendations on
low-cost or no-cost energy saving practices and measures.
Residential Energy Efficient Products
This program promotes the use of energy efficient lighting and other energy efficient products in
homes by offering a financial incentive. JEA includes messaging concerning the proper disposal
of bulbs containing mercury.
Green Built Homes of Florida
This program encourages the application of energy efficient construction and products in new
homes by offering a financial incentive to builders and developers.
Residential Solar Water Heating
This program offers a financial incentive to customers to encourage the use of solar water
heating technology.
Residential Solar Net Metering
This program promotes the use of solar photovoltaic systems by purchasing excess power from
residential customers implementing these systems.
Neighborhood Efficiency Program
This program offers education concerning the efficient use of energy and water as well as the
direct installation of an array of energy and water efficient measures at no cost to income
qualified customers.
Commercial Programs
Commercial Energy Audit Program
This program uses auditors to examine businesses, educate customers, and make
recommendations on low-cost or no-cost energy saving practices and measures.
Commercial Energy Efficient Products
This program promotes the use of energy efficient lighting and other energy efficient products in
businesses by offering a financial incentive. JEA includes messaging concerning the proper
disposal of bulbs containing mercury.
47
DRAFT
District Chilled Water Program
This program utilizes district chilled water to reduce energy costs, other operating costs, and
capital costs.
Commercial Solar Net Metering
This program promotes the use of solar photovoltaic systems by purchasing excess power from
commercial customers implementing these systems.
B. Orlando Utilities Commission (OUC)
Residential Programs
Residential Energy Survey Program
This program provides residential customers with recommended energy efficiency practices. The
program consists of three measures: the Residential Energy Walk-Through Survey, the
Residential Energy Survey DVD, and an interactive Online Energy Survey.
Residential Duct Repair Rebate Program
The purpose of this program is to encourage customers to repair leaking ducts on existing
systems. Customers will receive up to a $160 rebate for duct repairs on their homes.
Residential Ceiling Insulation Rebate Program
This program is offered to residential customers to encourage them to upgrade their attic
insulation. Customers receive $0.05 per square foot for upgrading their attic insulation up to R30. If OUC inspects the property and verifies that existing insulation is R-11 or less, the rebate
rises to $0.14 per square foot.
Residential Window Film/Solar Screen Rebate Program
This program is designed to encourage customers to install solar shading on their windows.
Customers will receive a rebate of $1 per square foot for installation of solar shading film with a
solar heat gain coefficient of 0.44 or shading coefficient of 0.5 or less on east, west, and south
facing windows.
Residential High Performance Windows Rebate Program
This program is designed to help minimize heating, cooling, and lighting costs. The high
performance windows rebate program encourages customers to install windows that will
improve energy efficiency in their homes. Customers will receive a $2.00 rebate per square foot
for the purchase of ENERGY STAR rated energy efficient windows.
Residential Block Wall Insulation Rebate Program
This program is designed to encourage customers to insulate the walls of their homes. Customers
will receive a rebate of $0.66 per square foot of wall insulation added, with the requirement that
the initial insulation R-value must be increased by a minimum of R-10.
48
DRAFT
Residential Cool/Reflective Roof Rebate Program
This program is designed to encourage customers to install new roofing to help insulate their
homes. Customers will receive a rebate of $0.14 per square foot for ENERGY STAR
cool/reflective roofing that has an initial solar reflectance greater than or equal to $0.70.
Residential Heat Pump Rebate Program
This program provides rebates to qualifying customers in existing homes who install heat pumps
having a SEER of 14.0 or higher. Customers will obtain a rebate in the form of a credit on their
bill ranging from $20 to $1,275, depending on the SEER rating and capacity (tons) of the new
heat pump.
Residential Efficiency Delivered Program
This program, previously called the Home Energy Fix-Up Program, is available to residential
customers and provides up to $2,000 of energy and water efficiency upgrades based on the needs
of the customer’s home. A Conservation Specialist from OUC performs a survey at the home and
determines which home improvements have the potential of saving the customer the most
money.
Residential New Home Rebate Program
This program offers rebates for the builder or home buyer, such as $0.04/sqft for Cool/Reflective
Roof, $0.16/sqft for Block Wall Insulation, and $0.04/sqft for Ceiling Insulation Upgrade to R38.
Residential Compact Fluorescent Lighting Program
OUC will give away at least one compact fluorescent lamp to customers who participate in
OUC’s in-home energy audit program. This practice may be eliminated as incandescent lamps
are curtailed from the marketplace due to legislation over the next few years.
Residential AC Proper Sizing with R-30 Attic Insulation Program
OUC offers this program to assist customers in properly sizing their air conditioning (AC) units.
The program combines proper sizing of AC systems along with installation of R-30 insulation
with the intent of reducing the size required by a half ton or more.
Commercial Programs
Commercial Energy Audit Program
The purpose of this program is to focus on increasing energy efficiency and energy conservation
in commercial buildings. OUC includes a free survey consisting of a physical walk-through
inspection of the commercial facility performed by experienced energy experts.
Commercial Indoor Lighting Retrofit Program
The program reduces energy consumption for the commercial customer through the replacement
of older fluorescent and incandescent lighting with newer, more efficient lighting technologies.
49
DRAFT
Commercial Heat Pump Rebate Program
This program provides rebates to qualifying customers in existing buildings who install heat
pumps having a SEER of 14.0 or higher. Customers will obtain a rebate in the form of a credit on
their bill ranging from $20 to $1,275, depending on the SEER rating and capacity (tons) of the
heat pump.
Commercial Duct Repair Rebate Program
In this program, OUC rebates 100 percent of the cost, up to $160, when qualifying customers
seal existing central AC systems of 5.5 tons or less with mastic and fabric tape or Underwriters
Laboratory approved duct tape.
Commercial Window Film/Solar Screen Rebate Program
This program is designed to help reflect the heat during hot summer days and retain heat on cool
winter days. OUC will rebate customers $1/sqft for window tinting and solar screening with a
solar heat gain coefficient (SHGC) of 0.44 or shading coefficient of 0.5 or less.
Commercial Ceiling Insulation Rebate Program
This program was designed to increase a building’s resistance to heat loss and gain. Participating
customers receive $0.05/sqft for upgrading their attic insulation up to R-30. If OUC inspects the
property and verifies that the existing insulation is R-11 or less, OUC will pay a rebate of
$0.14/sqft.
Commercial Cool/Reflective Roof Rebate Program
This program is designed to reflect the sun’s rays and lower roof surface temperature while
increasing the lifespan of the roof. OUC will rebate customers $0.14/sqft of ENERGY STAR
cool/reflective roofing that has an initial solar reflectance greater than or equal to 0.70.
Additional Conservation Measures
Residential Energy Conservation Rate Structure
Residential customers using more than 1,000 kWh per month pay a higher rate for additional
energy usage. The purpose of this rate structure is to make OUC customers more energy
conscientious and to encourage conservation of energy resources.
Commercial OUConsumption Online
OUConsumption enables businesses to check their energy usage and demand from a computer
and manage their energy load. Customers are able to analyze the metered interval load data for
multiple locations, compare usage among facilities, and measure the effectiveness of various
energy efficiency efforts.
Commercial OUConvenient Lighting
OUConvenient Lighting offers complete outdoor lighting services for commercial applications,
including industrial parks, sports complexes, and residential developments. Lighting packages
are customized for each participant, allowing the customer to choose light fixtures and poles.
50
DRAFT
OUCooling
This program allows Orlando Utilities to fund, install and maintain a central chiller plant for each
business district participating under the program. Benefits to the businesses are lower energy
consumption, increased reliability, no environmental risks associated with the handling of
chemicals, avoided initial capital cost, lower maintenance costs, a smaller mechanical room, no
insurance requirements, improved property resale value, and availability of maintenance
personnel for other duties.
Small Business Efficiency Pilot Program
This program shows small business owners how to reduce energy and water consumption and
improve overall business operations. The pilot focuses on providing essential services to
entrepreneurial and small businesses.
Residential Floor Insulation Upgrade Rebate Program
This program provides a rebate to incent customers to insulate wood floors over unconditioned
spaces. This incentive is mostly geared towards older homes that were not built to today’s more
energy efficient standards. The $0.07/sqft incentive is for a minimum of R-11 floor insulation.
Energy Star Washing Machine Rebate Program
OUC added a $50 incentive for the purchase of Energy Star washing machines to bring
customers’ attention to the benefit of these new machines.
Solar Water Heating Rebate Program
OUC offers a one time upfront rebate of $1,000 to residential customers to purchase a Solar
Water Heater. Commercial customers receive a monthly credit on their OUC bill of $0.03/kWh
and a one time $250 credit towards the installation of the BTU meter on the OUC bill.
Heat Pump Water Heaters Rebate Program
OUC added an incentive of $650 for the purchase of a Heat Pump Water Heater. The technology
has become more affordable, and this program may change in the future.
Commercial Custom Incentive Program
OUC developed a program to accommodate the various other efficiency improvements possible
in a commercial application that were not covered by an existing standard conservation program.
With the Custom Incentive Program, OUC can accommodate practically any measure that can
reduce electric demand above code requirements that a commercial customer wants to
implement.
Community Solar Farm
In 2013, OUC built the first Community Solar Farm in Central Florida. This innovative project
allowed customers to “buy a piece of the sun” and receive the benefits of solar without having to
install it on their roof. The program sold out in six days.
51
DRAFT
Commercial Energy Star Windows Rebate Program
This rebate is designed to minimize customers’ heating, cooling, and lighting costs. OUC will
rebate customers at $2/sqft for ENERGY STAR Window, $1/sqft for Solar Screen, and $1/sqft
for Window Film.
Commercial Block Wall Insulation Rebate Program
This program is designed to encourage customers to insulate the walls of their businesses.
Customers will receive a rebate of $0.66/sqft of insulation added, with the requirement that the
initial insulation R-value must be increased by a minimum of R-10.
Commercial AC Proper Sizing with R-30 Attic Insulation Rebate Program
This program helps customers with properly sizing their AC units for their businesses. The
program combines the proper sizing of AC systems along with installation of R-30 insulation
with the intent of reducing the size required by a half ton or more.
Commercial Energy Star Washing Machine Rebate Program
This program is designed to encourage customers to purchase an Energy Star rated clothes
washer. Upon receiving certified documentation, OUC will provide the customer with a $50
rebate per machine.
Commercial Energy Star Pump Water Heater Rebate Program
This program is designed to encourage customers to purchase an Energy Star rated pump water
heater. OUC will provide the customer with 100 percent of cost, up to $650, when given certified
documentation.
52
II. Outside Persons Who
Wish to Address the
Commission at
Internal Affairs
Note: The records reflect that no outside persons
addressed the Commission at this Internal Affairs
meeting.
III. Supplemental
Materials for
Internal Affairs
A: Material pertaining to Item 2 of this agenda.
B: Material pertaining to Item 5 of this agenda.
A: The following material pertains to
Item 2 of this agenda.
2016 BILLS OF INTEREST - EXECUTIVE REPORT - UPDATED 01/15/16
HOUSE
SB 534
Water and Wastewater
(Sen. Hays)
FINAL
Enrolled (C);
SIMILAR BILLS
RE: (sponsors)
SENATE
Dead (D)
HB491
SUMMARY:
ACTIONS;
•
01/07/16
SENATE
On Committee agenda - Communications, Energy,
and Public Utilities, 01/12/16, 2:00 pm, 301 S
01/12/16
SENATE
Favorable with CS by Communications, Energy,
and Public Utilities; 8 Yeas, 0 Nays
01/13/16
SENATE
Committee Substitute Text (C2) Filed
Now in Appropriations
•
•
Directs the Division of Bond Finance to review the allocation of private
activity bonds for investor-owned water and wastewater infrastructure
projects:
Exempts investor-owned water and wastewater utilities from sales tax for
purchases related to construction, maintenance or operation of a water or
wastewater facility if the goods or services are used in the state;
Water resellers currently exempt from regulation may charge for the actual
SENATE
cost of meter reading and billing services, not to exceed nine percent of
the actual cost of water service.
•
This would not affect a water reseller's
exempt status;
Upon its own motion or upon request of a utility, the FPSC may create a
"utility reserve fund" and promulgate rules to govern the fund, set forth
expenses for which the fund may be used, establish requirements for a
capital
improvement
plan,
and
establish
requirements
for
FPSC
authorization before disbursements from the fund;
•
•
•
Expands expense categories a water or wastewater utility may include to
increase or decrease rates without a hearing on 45 days notice, and
authorizes the FPSC to adopt rules to include additional pass-through
expenses not enumerated in the legislation;
Establishes criteria that the Commission must consider in determining the
reasonable level of rate case expense;
Prohibits recovery of rate case expenses in FPSC staff-assisted rate
cases from the time the case is filed until the FPSC staff issues its report,
•
except in the case of intervention by the OPC or other parties; requires the
FPSC to promulgate rules by December 31, 2016;
Prohibits recovery of rate case expense from more than one rate case at a
time; and
•
•
•
Authorizes the FPSC, on its own motion, to review secondary drinking
water quality standards of a water utility subject to its jurisdiction, and
review issues of odor, noise, aerosol drift or lighting as it pertains to a
wastewater utility subject to its jurisdiction.
Expands authorized use of the Drinking Water State Revolving Loan Fund
to include for-profit, privately-owned, or investor-owned water systems.
Effective date: July 1, 2016
Handout
fitemal
Agenda
/2 1/16?
Item No.
2016 BILLS OF INTEREST - EXECUTIVE REPORT - UPDATED 0I/I5/I6
HOUSE
SENATE
FINAL
Enrolled (E);
SIMILARBILLS
RE: (sponsors)
Dead CD)
Water and Wastewater
HB491
(Rep. Smith)
SB 534
ACTIONS:
SUMMARY:
HB 491 is similar to SB 534 (above) with the following exceptions:
•
The requirement limiting a utility from recovering more than 50 percent of
•
•
reasonable rate case expense has been removed;
Entities receiving tax exemptions must be Florida corporations; and
Requires the FPSC, upon petition by the utility, to create a utility reserve
fund. (SB 534 leaves creation of the reserve fund to FPSC discretion.)
HB395
SB 1478
Utility Advanced Cost
Recovery
(Reps. Murphy, Latvala, Burgess)
11/17/15
HOUSE
Favorable with OS by Energy & Utilities
Subcommittee; 12 Yeas, 1 Nay
11/18/15
HOUSE
Committee Substitute Text (C1) Filed
11/19/15
HOUSE
Now in Finance & Tax Committee
HB4057
(Sen. Sobel)
SUMMARY:
HB 395 ACTIONS:
•
10/30/15
•
•
•
Provides for expiration of advanced cost recovery for nuclear & integrated
gasification combined cycle power plants on July 1, 2016;
Requires all funds collected be returned to ratepayers by June 30, 2017;
Prohibits utilities from imposing charges to offset loss of utility revenues as
result of refunding moneys from collection of advanced cost recovery fees.
Effective date: Upon becoming law
HOUSE
HOUSE
Referred to Energy & Utilities Subcommittee;
Government Operations Appropriations
Subcommittee; Regulatory Affairs Committee
Now in Energy & Utilities Subcommittee
SB 1478 ACTIONS:
01/14/16
SENATE
Pending withdrawal
01/15/16
SENATE
Withdrawn from Communications, Energy, and
Public Utilities; Appropriations Subcommittee on
SENATE
Withdrawn from further consideration
•
General Government; Appropriations
HB 4057
Repeal of Advanced Nuclear
Cost Recovery
(Rep. Rehwinkel-Vasilinda)
HB 395, SB 1478
SUMMARY:
ACTIONS:
•
01/11/16
HOUSE
Filed
01/15/16
HOUSE
Referred to Energy & Utilities Subcommittee;
Government Operations Appropriations
Subcommittee; Regulatory Affairs Committee
Now in Energy & Utilities Subcommittee
Repeals provisions for cost recovery mechanisms for siting, design,
licensing, & construction of nuclear & integrated gasification combined
•
cycle power plants,
includes mechanisms that promote utility investment in, & allow for
•
recovery in electric utility rates of certain costs of such plants;
Repeals provisions relating to financing for certain nuclear generating
•
asset retirement or abandonment costs.
Effective Date: July 1, 2016
HOUSE
2016 BILLS OF INTEREST - EXECUTIVE REPORT - UPDATED 01/15/16
FINAL
HOUSE
RE; (sponsors)
SENATE
Municipal Power Regulation
(Rep. Maj^eld, Ferry,
KB 579
SIMILAR BILLS
Enrolled (E);
Dead (D)
SB 840
Van Zant)
SUMMARY:
HB 579 ACTIONS:
•
01/04/16
HOUSE
On Committee agenda - Energy & Utilities
Subcommittee, 01/11/16,4:00 pm, 212 K
01/11/16
HOUSE
Favorable with CS by Energy & Utilities
Subcommittee; 6 Yeas, 5 Nays
01/14/16
HOUSE
Committee Substitute Text (C1) Filed
•
•
An entity created under the Interlocal Cooperation Act of 1969 (FMPA)
must annually submit an independently prepared financial statement to
the FPSC and member municipalities: and
Requires members of the FMPA governing board be elected officials from
one of the member municipalities.
Effective date: July 1, 2016
•
SB 840
Municipal Power Regulation
(Sen. Simpson)
HE 579
SUMMARY:
SB 840 ACTIONS:
•
11/13/15
SENATE
Filed
11/19/15
SENATE
Referred to Communications, Energy, and Public
Utilities; Appropriations Subcommittee on General
Government; Appropriations
•
•
•
An entity created under the Interlocal Cooperation Act of 1969 (FMPA)
must annually submit an independently prepared financial statement to
the FPSC, OPC, and member municipalities;
Expands the duties of the Public Counsel to include proceedings involving
the Florida Municipal Power Agency;
Revises the definition of the term "public utility" to include the Florida
Municipal Power Agency;
Exempts FMPA from regulation by the FPSC for purposes of rates and
service.
•
Effective date: July 1, 2016
2016 BILLS OF INTEREST - EXECUTIVE REPORT - UPDATED 01/15/16
HOUSE
HE 687
RE: (sponsors)
SENATE
SB 1328
Energy Policy
(Rep. Costello) (Sen. Altman)
FINAL
Enrolled (E);
SIMILAR BILLS
Dead (D)
(similar bills)
SUMMARY:
HB 687 ACTIONS:
•
11/17/15
HOUSE
Filed
11/23/15
HOUSE
Referred to Energy & Utilities Subcommittee;
Government Operations Appropriations
Subcommittee; Regulatory Affairs Committee
Now in Energy & Utilities Subcommittee
•
•
A county shall not regulate renewable energy devices in a manner more
stringent than the Florida Building Code;
Exempts local renewable energy supplier from PSC regulation;
Authorizes local renewable energy suppliers to sell local renewable
energy to certain end users;
•
•
Specifies conditions under which certain end users may interconnect with
local renewable energy suppliers or local electric utilities;
Provides conditions under which local renewable energy suppliers may
interconnect with utilities;
•
•
•
•
•
Provides conditions under which net metering provisions apply;
The FPSC & FDEP are not required to enforce a law, rule, policy, or plan
enacted pursuant to a federal regulation concerning the emission of
carbon from electrical power plants;
Architectural control covenants may not restrict, regulate, or require a
parcel owner to meet standards more stringent than required by the
Florida Building Code for renewable energy devices.
Note: These similar bills are substantively the same. SB 1328 corrects
the wording to a FDEP reference.
Effective date: July 1, 2016
HOUSE
SB 1328 ACTIONS:
01/05/16
SENATE
Filed
01/11/16
SENATE
Referred to Communications, Energy, and Public
Utilities; Community Affairs; Fiscal Policy
B: The following material pertains to
Item 5 of this agenda.
State of Florida
Capital Circle OfficeCenter
Julie I.Brown
2540 ShumardOak Boulevard
Chairman
f
l
Tallahassee. FL 32399-0850
(850)413-6042
Public Service Commission
January 21, 2016
-nRAFT-
Handout
(^tnteniarAffflirsMpenda
on i / '2-1 /
Item
No 5
Administrator Gina McCarthy
Air and Radiation Docket and Information Center
t^
'
Environmental Protection Agency
Mailcode28221T
1200 Pennsylvania Ave., NW
Washington, DC 20460
Re: Federal Plan and Model Rules for the Clean Power Flan; Docket ID; EPA-HQ-QAR2015-0199
Dear Administrator McCarthy:
The Florida Public Service Commission (FPSC or Commission) respectfully requests the
consideration of comments as provided herein on the proposed Federal Plan and Draft Model
Rules for the Clean Power Plan. The FPSC recognizes the necessity and role of the EPA in
addressing public health and environmental issues. The FPSC submitted comments on December
1, 2014, regarding the proposed Clean Power Plan.' Aportion ofthose comments expressed the
FPSC's concems regarding the Clean Power Plan's effects on Florida's generating fuel diversity
and the impacts that implementation of the Clean Power Plan may have on reliability and cost to
customers. The comments previously filed are pertinent to the proposed Federal Plan and Model
Rules, and have been incorporated in these comments below.
Electricity usage in Florida is impacted by the state's unique weather, customer base, and high
reliance on electricity for cooling and heating. Florida has the highest number of cooling degree
days ofany state in the continental U.S., indicating the greatest need for air conditioning in the
summer months. Compared to other states, Florida's customers rely more heavily on electricity
to meet their energy needs, rather than the direct use of natural gas or other fuels, for cooling and
heating. Residential consumers make up almost 89 percent of Florida's electricity customers.
Approximately 85 percent of Florida's residential customers' energy requirements are met with
electricity, which makes Florida's customers particularly sensitive to electric rate increases.
This, combined with Florida's geography and climate, requires the FPSC to carefully examine all
faetors related to electricity generation to ensure cost-effective, reliable electricity for all
Floridians.
' httD://www.floridaDsc.com/Files/PDF/Dockets/Federal/CoiTiments EPA 12 1 2014.pdf
An Affirmative Action / Equal Opportunity Employer
PSC Website: http://www.noridapsc.com
Commissioner.Brown(S)psc.state.n.us
Administrator Gina McCarthy
Page 2
January 15,2016
-DRAFT—
In 2013, Florida utilities had a net summer generating capacity of57,999 MW.^ Transmission
capability to import energy into peninsular Florida from other states is approximately 3,600 MW,
some of which is already committed to the import of out-of-state generation to meet the state's
current and future power needs. The Florida Legislature has enacted policies that establish
electric generation fuel diversity as a consideration in the review of utility resource plans and in
the approval of new generation, and has emphasized fuel diversity in policies that address
renewable resources.^ Currently, approximately 60 percent of the electric power in Florida is
generated from natural gas.
Florida law requires the FPSC to determine the need for new generating facilities and
specifically to consider the need for electric system reliability and integrity, adequate electricity
at a reasonable cost, and the need for fuel diversity and supply reliability.'* It is important for
Florida to maintain a diversified generation fuel source mix when seeking to comply with
relevant CO2 standards because a diversified fuel supply can enhance system reliability and
significantly mitigate the effects of volatile fuel price fluctuations, extreme weather events and
unplanned plant outages. Additional pipeline capacity would have to be built to accommodate a
further reliance on natural gas as a generating fuel. One of Florida's primary pipelines crosses
the Gulf of Mexico and is subject to some risk of hurricanes, which adds to the concern of
diminished fuel diversity.
The FPSC is also concerned about the impact of additional intermittent resources on service
reliability requirements. Because of the state's unique characteristics described earlier, Florida
requires a robust, diverse, and dispatchable baseload generating fleet. However, many low- or
zero-carbon technologies are intermittent, non-dispatchable, non-baseload technologies. For
example, in 2013, the monthly capacity factor for solar photovoltaics inthe U.S. ranged from 13
to 22 percent.^ Due to operational constraints from the availability of sunshine, there is no
currently demonstrated baseload solar option. The low capacity factors of many low- or zerocarbon technologies (excluding nuclear and possibly co-firing with biomass) combined with
Florida's need for dispatchable baseload generation means that Florida would likely need to
build additional natural gas-fired facilities and related infrastructure for use as stand-by units for
reliability purposes.^ A recent report assessing Germany's efforts to increase renewable
generation resources noted an expected cost increase associated with re-dispatch, curtailment,
and other remediation actions necessary to maintain reliability.^
^Florida Public Service Commission, Facts and Figuresofthe FloridaUtility Industry (Mar. 2015) p. 1.
http://www.floridapsc.com/Files/PDF/Publications/Reports/General/Factsandfigures/March%202015.pdf
^ Sections 186.801, 366.91,and 403.519,Florida Statutes.
" Section 403.519(3), FloridaStatutes.
' U.S. Energy Information Agency, Electric Power Monthly (February 2014), Table 6.7.B. available at
http://www.eia.gov/electricitv/monthlv/current year/februarv2014.pdf
^http://www.brattle.eom/svstem/publications/pdfs/000/005/060/original/Solar Energy Support in Germanv
A Closer Look.pdf?1406753962.
' Id, pp. 28-37.
Administrator Gina McCarthy
Page 3
January 15, 2016
-DRAFT—
Additionally, the FPSC submitted comments regarding considerations that should be made in the
design ofa program to reduce carbon pollution from existing power plants dated December 13,
2013.^ Although the proposed Federal Plan and Draft Model Rules for the Clean Power Plan
were not contemplated, there are certain portions ofthose comments that remain relevant, which
are provided herein.
The FPSC continues to support the general principles for federal environmental regulations as
established in the National Association of Regulatory Utility Commissioners' (NARUC)
resolution, entitled "Resolution on Increased Flexibility with Regard to the EPA s Regulation of
Greenhouse Gas Emissions from Existing Power Plants." The resolution was approved by the
Board of Directors of NARUC at its 2013 Annual Meeting in November 2013. NARUC
resolved that "the guidelines should provide sufficiently flexible compliance pathways or
mechanisms that recognize State and regional variations..." NARUC also resolved that the
guidelines should be flexible enough to allow states individually or regionally to take into
account, when establishing standards of performance, the different makeup of existing power
generation in each State and region."
The FPSC continues to take no position on certain aspects of the form and specificity of the
EPA's guidelines, such as using a "rate based" or "mass-based" compliance pathway. The FPSC,
however, asserts that EPA guidelines should recognize the varying characteristics of specific
states and regions of the U.S. Recognizing that the Florida Department of Environmental
Protection is the agency responsible for implementing Clean Air Act regulations, the FPSC
respectfully submits that EPA guidelines, including a Federal Plan, must allow states the
opportunity to provide electric utilities the flexibility to choose the most efficient, least-cost
compliance option to meet public health and environmental requirements.
There remains considerable uncertainty about the ability of states to comply with Clean Power
Plan performance requirements while maintaining the fuel diversity essential to reliability. Such
uncertainty calls for some type of off-ramp or safety valve for those states that —despite their
best efforts - cannot fully comply with the performance requirements. Safety valve
®http://www.floridaDsc.com/Files/PDF/Dockets/Federal/EPA-carbon-12-2013.pdf
9
http://www.naruc.org/Resolutions/Resolution%20on%20Increased%20Flexibilitv%20with%20Regard%20to%20the
%20EPAs%20Regulation%20of%20Greenhouse%20Gas%20Emissions%20from%20Existing%20Power%20Plants.
pdf
Administrator Gina McCarthy
Page 4
January 15,2016
-DRAFT—
modifications could take the form of a relaxation of the performance requirements, exemptions
for must run or critically needed units, or extension of time to meet the 2030 requirement. The
Federal Plan should include such provisions to guard against unforeseen impacts on reliability
and cost. It is imperative that any plan EPA adopts contain such flexibility.
Sincerely,
Julie I. Brown, Chairman
Florida Public Service Commission
JB:chb
cc: Commissioner Edgar
Commissioner Graham
Commissioner Brise
Commissioner Patronis
IV. Transcript
000001
1
BEFORE THE
FLORIDA PUBLIC SERVICE COMMISSION
2
3
4
PROCEEDINGS:
5
COMMISSIONERS
PARTICIPATING:
6
7
8
9
10
11
14
15
CHAIRMAN JULIE I. BROWN
COMMISSIONER LISA POLAK EDGAR
COMMISSIONER ART GRAHAM
COMMISSIONER RONALD A. BRISÉ
COMMISSIONER JIMMY PATRONIS
DATE:
Thursday, January 21, 2016
TIME:
Commenced at 9:30 a.m.
Concluded at 10:17 a.m.
PLACE:
Gerald L. Gunter Building
Room 105
2540 Shumard Oak Boulevard
Tallahassee, Florida
REPORTED BY:
LINDA BOLES, CRR, RPR
Official FPSC Reporter
(850) 413-6734
12
13
INTERNAL AFFAIRS
16
17
18
19
20
21
22
23
24
25
FLORIDA PUBLIC SERVICE COMMISSION
000002
1
P R O C E E D I N G S
Good morning.
2
CHAIRMAN BROWN:
3
COMMISSIONER PATRONIS:
4
CHAIRMAN BROWN:
Good morning.
This will call the Internal
5
Affairs meeting, January 21st, 2016, on Thursday.
6
Welcome, everybody.
7
on here, but we also have several other matters.
8
we'll kick this off with the report on the activities
9
for FEECA.
It looks like we have a few items
10
Good morning, gentlemen.
11
MR. COSTON:
Good morning.
So
Good morning,
12
Commissioners.
Tripp Coston with Commission staff.
13
would like to take this opportunity this morning to
14
first introduce Robert Margolis.
15
the Commission for around 18 months, and this morning
16
he will present --
17
COMMISSIONER EDGAR:
18
(Laughter.)
19
MR. COSTON:
Robert has been with
Where have you been?
And he has the pleasure of
20
presenting for your consideration this year's draft
21
FEECA report.
22
23
I
MR. MARGOLIS:
Thank you.
Good morning,
Commissioners.
24
CHAIRMAN BROWN:
25
MR. MARGOLIS:
And welcome.
Thank you.
Thank you.
FLORIDA PUBLIC SERVICE COMMISSION
Good
000003
1
morning, Commissioners.
The item before you is the
2
draft report on activities pursuant to the Florida
3
Energy Efficiency and Conservation Act.
4
366.82(10) requires the Commission to submit this
5
report annually to the Governor and the legislature by
6
March 1st.
Section
This report summarizes each utility's
7
8
achievements toward meeting goals that this Commission
9
sets.
Additional highlights include updates on federal
10
appliance standards, a summary of the FEECA utilities'
11
expenditures recovered through the Energy Conservation
12
Cost Recovery clause, and a summary of the recent
13
goal-setting activities.
Staff requests approval of changes to the
14
15
report.
16
adding TECO's DSM programs.
17
changes individually, if that is the Commission's
18
preference.
19
20
Changes generally relate to a correction in
CHAIRMAN BROWN:
Staff can go through the
Yes, please go through the
changes.
Staff would like to make oral
21
MR. MARGOLIS:
22
modifications starting on page 2.
23
requests to change the number of conservation programs
24
that the FEECA utilities offer from 105 to 117 due to
25
identification of additional DSM programs.
On page 2, staff
FLORIDA PUBLIC SERVICE COMMISSION
000004
Similarly on page 6, staff also requests to
1
2
change the number of DSM programs from 105 to 117.
3
CHAIRMAN BROWN:
4
MR. MARGOLIS:
Uh-huh.
On -- now on page 12,
5
paragraph 2, staff requests to add, delete, and phrase
6
as examples of commercial programs and costs and to add
7
the word "approximately" for reader clarity.
8
On the next paragraph on page 3 --
9
CHAIRMAN BROWN:
10
the substantive changes.
11
12
If you could just highlight
MR. MARGOLIS:
Okay.
On page 3, right below
that, from 92,000 to 93,000 for rounding.
13
CHAIRMAN BROWN:
14
MR. MARGOLIS:
Uh-huh.
And on page 33, next, staff
15
requests to change the reference year to 2014, which is
16
the year for which we have the most current reported
17
data.
Finally, on page 44, staff requests --
18
19
44 through 47, staff requests to change the names of
20
programs and to add programs that were identified --
21
TECO, the remainder of TECO's DSM programs that were
22
identified.
23
CHAIRMAN BROWN:
Thanks, Robert.
24
appreciate that presentation.
25
report.
I
And this is a great
It has a lot of very good information that we
FLORIDA PUBLIC SERVICE COMMISSION
000005
1
need and we can utilize, and the legislature and the
2
Governor and the Commissioner of Agriculture will
3
benefit from, too.
So I appreciate you compiling that.
4
It's an ongoing report, and I know my fellow
5
colleagues probably have some questions on it, so -- I
6
do have some, but I'll open up the floor to the other
7
Commissioners for questions at this time.
8
Commissioners.
Commissioner Graham.
9
COMMISSIONER GRAHAM:
My first question is,
10
and I probably bring this up all the time, is why do we
11
still do the two munis, both Jacksonville and Orlando?
12
I mean, because I noticed, looking through the history
13
of this thing, back in 1980 when it all got started, we
14
used to do -- did we do actually everybody in the
15
entire state, everybody that generated, and then from
16
there it went down to 12?
17
MS. HELTON:
The statute was changed.
At one
18
point we had jurisdiction over all the munis and co-ops
19
for DSM purposes, but now it's just JEA and I think --
20
is it OUC?
Yes.
21
MR. BALLINGER:
22
COMMISSIONER GRAHAM:
23
24
25
Now when you said we
had control over them, because -MS. HELTON:
Well, not control.
I mean,
jurisdiction to set goals for more munis and co-ops
FLORIDA PUBLIC SERVICE COMMISSION
000006
1
than we do now.
2
COMMISSIONER GRAHAM:
But what we do now, I
3
mean, we can set -- we set the goals for the munis,
4
well, for JEA and for Orlando, but with the IOUs, we
5
have both the club and the carrot to incentivize them
6
or to discipline them, and we don't have that for the
7
munis.
8
than --
9
So basically what control do we have other
MR. BALLINGER:
The only -- this is Tom
10
Ballinger with staff.
11
is when a need determination -- if JEA or Orlando were
12
to file a need determination, we would look at are they
13
meeting their goals as you approved in conservation as
14
a way to mitigate the plan.
15
The other stick you would have
COMMISSIONER GRAHAM:
Yeah.
But if they're
16
not meeting the goals, it's still not a reasonable
17
standard for us to turn down a need determination, is
18
it?
19
MR. BALLINGER:
It could be.
It could be
20
that they haven't done enough conservation to mitigate
21
the need for that plant.
22
23
COMMISSIONER GRAHAM:
That's got to be pretty
significant.
I agree.
24
MR. BALLINGER:
25
COMMISSIONER GRAHAM:
It's probably very
FLORIDA PUBLIC SERVICE COMMISSION
000007
1
unlikely, but -Yes.
2
MR. BALLINGER:
3
COMMISSIONER GRAHAM:
I mean, because, you
4
know, I could tell you, and I wish my -- I guess the
5
swiftness of my office, I have my notes in my first
6
version, but since everything changed, I have now the
7
new version without my notes in them.
8
9
But, anyway, as I was going through this
thing, you know, as I'm going through, it's jumping
10
back and forth from all seven, you know, the five IOUs
11
and the two munis, to just five of them, and it's
12
just -- there's really no -- I mean, it's almost like
13
there's a pronoun problem.
14
just which they are you talking about, and sometimes it
15
starts getting kind of confusing.
16
When you say "they," it's
I mean, some of the charts actually has --
17
actually has everything listed in there and some of
18
them you just -- you're trying to figure it out.
19
it's just -- that's the only thing that I think is a
20
little confusing between this.
21
we can say, you know, every time we talked about the
22
chart, every time we, you know, open a new section,
23
we're talking specifically about just the IOUs or we're
24
talking about the IOUs and the two munis.
25
CHAIRMAN BROWN:
And
If it -- you know, if
Uh-huh.
Uh-huh.
FLORIDA PUBLIC SERVICE COMMISSION
I think
000008
1
that's a good point.
2
3
COMMISSIONER GRAHAM:
And then if we can get
rid of the munis.
4
(Laughter.)
5
I mean, I guess I still just don't see the
6
purpose of it all because, you know -- I understand --
7
I understand the progression of it all where it went
8
from everybody, you know, in 1980 to, I want to say it
9
was in '89 we went to 12, and then in '96 I think we
10
went down to seven of them.
11
you know, in 2016 or '17 let's go to just the five
12
IOUs.
13
14
MR. BALLINGER:
17
18
That would require a statute
change.
15
16
And, you know, let's just,
CHAIRMAN BROWN:
Yes.
Thank you for that
point.
COMMISSIONER GRAHAM:
Okay.
So maybe --
maybe 2017.
19
(Laughter.)
20
CHAIRMAN BROWN:
And it does read, the report
21
does read, it highlights the IOUs and it doesn't
22
reference the other two munis, so it is a little
23
confusing in that regard since the two IOUs are
24
statutorily required to report.
25
IOUs and the -- and JEA and OUC maybe because it's a
So maybe just say the
FLORIDA PUBLIC SERVICE COMMISSION
000009
1
2
little confusing.
COMMISSIONER GRAHAM:
I mean, because, you
3
know, you have, like, you know, when you start talking
4
about the cost stuff, because we don't have that for
5
the munis and we only have it for the IOUs.
Okay.
6
MR. MARGOLIS:
7
COMMISSIONER GRAHAM:
8
CHAIRMAN BROWN:
9
10
Sorry.
Other Commissioners,
comments, questions, feedback?
I do have some questions, so I'll just jump
11
right into them.
12
about the sunsetting of the five-year solar pilot
13
program, and it sun setted in December 31st, 2015.
14
Part of those solar programs, part of the programs
15
contained a research component.
16
least have some input or get some input or information
17
about those in my recollection about the research
18
component of the solar pilot program.
19
You reference in various sections
We were supposed to at
Do we have any information at this time,
20
since they concluded at the end of last year, about the
21
solar pilot programs with the focus on the research
22
components on some of these programs?
23
24
25
MR. MARGOLIS:
I would -- we would -- staff
would like to get back to you on that.
CHAIRMAN BROWN:
Okay.
I think that's an
FLORIDA PUBLIC SERVICE COMMISSION
000010
1
integral part of the whole five-year process, and I
2
know I'm interested in hearing some of that information
3
and encourage the utilities to provide that information
4
timely, so.
5
MR. COSTON:
If I may, they do file March 1st
6
their FEECA filings, and we certainly will look at that
7
through that process.
8
CHAIRMAN BROWN:
9
MR. COSTON:
10
It would be the most updated
information through the end of last year.
11
CHAIRMAN BROWN:
12
MR. COSTON:
13
CHAIRMAN BROWN:
14
Great.
Thank you.
Of course, not
in this report -Right.
MR. COSTON:
16
CHAIRMAN BROWN:
18
Okay.
Yes.
15
17
Thank you.
-- but as long as we're
informed.
On page 6 you talk about the federal -- thank
19
you -- the updated increase in federal energy
20
efficiency laws.
21
finalized and things like that, and then you reference
22
some of the state building codes.
23
uptick and an increase in standards in the building
24
codes since the last year of reporting?
25
There's about 14 that have been
MR. MARGOLIS:
Are we seeing an
Definitely the Department of
FLORIDA PUBLIC SERVICE COMMISSION
000011
1
Energy's Office of Energy Efficiency and Renewable
2
Energy has been quite active.
3
appliance standards, eight test procedures.
4
definitely been very active.
5
6
CHAIRMAN BROWN:
As I've said here, five
So they've
I'm talking about the
Florida -- the building code.
Oh.
7
MR. MARGOLIS:
8
CHAIRMAN BROWN:
9
MR. MARGOLIS:
Pardon me.
Our state code.
With the Florida Building
10
Code, staff would like to get back to you on that.
11
Generally, the U.S. federal standards have superseded
12
the Florida standards for most appliances.
13
14
CHAIRMAN BROWN:
All right.
Focus on
building.
15
MR. COSTON:
Yeah, we'll definitely look at
16
the building code.
17
by -- by the oversight board for the building code in
18
Florida, and we will look at and get back to you on
19
specifically how they have made improvements this
20
particular year.
21
Those are updated and are reviewed
CHAIRMAN BROWN:
Great.
Thank you.
And I
22
think that's very relevant to our overall FEECA review
23
process.
24
so it's something that we definitely need to be aware
25
of and the report needs to reflect --
It's an important fact in our consideration,
FLORIDA PUBLIC SERVICE COMMISSION
000012
Okay.
1
MR. COSTON:
2
CHAIRMAN BROWN:
3
4
-- as it does with the
federal laws and regulations.
So on page 19 you have a summary of the
5
recent DSM and goal-setting procedures and activities
6
that have gone on.
7
at the last goal-setting proceeding was we directed the
8
IOUs to educate low income customers on education
9
conservation opportunities, and it was something that
And one of the things that we did
10
was reflected in our order.
11
about how the IOUs are educating customers right now on
12
conservation opportunities?
13
MR. MARGOLIS:
Do we have information
I would say those programs are
14
listed in the back, yeah, low income programs.
15
they file by March 1st, they say what they've done in
16
their updates for the low income customers.
17
look to their filings on March 1st.
18
year, staff would have to get back to you with the full
19
details of everything that's --
20
CHAIRMAN BROWN:
When
So I would
From this past
I think it's -- thank you.
21
I appreciate that, and I know they're -- the programs
22
are listed as an appendix, but I think it's important
23
to highlight them in the summary because it was a
24
directive of the Commission's order to have that
25
information, and I think that's something that should
FLORIDA PUBLIC SERVICE COMMISSION
000013
1
2
3
4
be highlighted in the overall FEECA report.
MR. MARGOLIS:
Okay.
Staff can highlight the
low income programs and the changes to utilities.
CHAIRMAN BROWN:
Thank you so much.
And
5
finally, I know we're doing a lot under Section 4 on
6
educating customers on conservation, and our PIO office
7
is very engaged and have come up with a lot of
8
different programs and opportunities to educate
9
customers, and that's important for the overall intent
10
and purpose of FEECA, and I think it's great.
11
know that they're going to be working on enhancing that
12
a little bit further over the next year or two, and I'm
13
very open and engaged on that aspect.
14
And I
But there are things that Commissioners are
15
doing in that regard to educate customers, and so it
16
may be beneficial to put an additional paragraph of
17
other activities that Commissioners are doing, whether
18
it's through education at schools or whether it's
19
through conferences or public speaking engagements.
20
There's a lot of customer -- Commissioner activity
21
going on on this front, and I think it's important to
22
highlight that in the report.
23
24
25
MR. MARGOLIS:
Sure.
Sure.
Staff would be
All right.
Commissioners,
happy to do that.
CHAIRMAN BROWN:
FLORIDA PUBLIC SERVICE COMMISSION
000014
1
any other questions, comments on -- okay.
2
entertain a motion to approve with these suggested
3
modifications at this time.
So moved.
4
COMMISSIONER EDGAR:
5
COMMISSIONER PATRONIS:
6
CHAIRMAN BROWN:
7
(Vote taken.)
8
Opposed?
9
MR. COSTON:
10
11
I will
Second.
All in favor, say aye.
All right.
Thank you, guys.
Thank you very much.
CHAIRMAN BROWN:
I appreciate the
presentation.
Madam Chairman?
12
MR. BAEZ:
13
CHAIRMAN BROWN:
14
MR. BAEZ:
Yes, Braulio.
A question for clarification.
We
15
-- these are to be filed March 1st.
16
to bring it back so that you can take a final look at
17
the modification --
18
19
CHAIRMAN BROWN:
I think they've got
enough information to go ahead.
20
21
No.
Would you like us
MR. BAEZ:
to be clear.
No need to do that.
I just wanted
Thank you.
Thank you.
22
CHAIRMAN BROWN:
23
Mark, thank you for coming.
Legislative
24
update.
I know you're busy, and you've been providing
25
us a lot of emails and information about activities,
FLORIDA PUBLIC SERVICE COMMISSION
000015
1
and you all seem very active.
2
anything for us?
3
MR. FUTRELL:
Do you have a handout or
Yes, Commissioners.
I've
4
placed our current version of our Executive Bill
5
Report.
6
I'd like to kind of update you on some activities since
7
the last Internal Affairs meeting as to some of these
8
critical bills that we're -- we're following.
9
It's got the green header.
And if you'd like,
Senate Bill 534 was heard in the
10
Communications, Energy, and Public Utilities Committee
11
on January 12th.
12
favorably.
13
The bill was amended and reported
And just to highlight one particular
14
amendment that was of note is it removed the cap of
15
50 percent on the amount of reasonable rate case
16
expense that can be recovered by a utility, and it
17
replaced that provision with criteria, about
18
eight criteria that the Commission is to consider in
19
determining the reasonable level of rate case expense.
20
Those criteria -- the provision required the
21
Commission to make a finding of fact on each criteria
22
and that the findings be based upon competent
23
substantial evidence.
24
25
And then there's also language added that
allows the Commission to allocate accordingly the
FLORIDA PUBLIC SERVICE COMMISSION
000016
1
benefits of the rate case expense between customers,
2
shareholders, owners, or affiliates.
3
provision of note in that bill.
So that's a
The bill is now in the Appropriations
4
5
Committee.
6
this week, so we're going to continue to monitor
7
activity on Senator Hay's water bill.
House Bill 491, the companion water and
8
9
That committee, however, is not meeting
wastewater bill sponsored by Representative Smith, is
10
on the agenda for today's Finance and Tax Committee
11
meeting at 3:00.
12
yesterday afternoon.
13
sales tax exemption provision.
14
would remove the rate case expense pancaking provision
15
that precludes recovery of the four-year amortized rate
16
case expense for more than one rate case at any given
17
time.
18
up this afternoon.
19
didn't see any other amendments filed as of this
20
morning.
21
Two amendments were filed late
One of them would remove the
The second amendment
So those are two amendments that will be taken
And I checked this morning, and I
Moving on, the -- Senate Bill 1478, the
22
Utility Advanced Cost Recovery bill, was withdrawn from
23
further consideration.
24
still -- still active.
25
The House companions are
House Bill 579, the municipal power regulation
FLORIDA PUBLIC SERVICE COMMISSION
000017
1
bill by Representative Mayfield, was heard in the Energy
2
and Utilities Subcommittee on January 11th.
3
subcommittee amended the bill and reported it favorably.
The
The amendment essentially removed provisions
4
5
that required the Office of Public Counsel to
6
participate in Florida Municipal Power Agency rate
7
setting proceedings and also removed provisions that
8
defined FMPA as a public utility in Chapter 366.
9
bill retains the requirement that a financial statement
The
10
be provided annually to the Commission and to member
11
utilities.
The bill is now in the Government Operations
12
13
Appropriations Subcommittee.
We do not have any
14
indication as to when -- when or if that bill will be
15
taken up.
Finally, a bill we're following is House Bill
16
17
639 on carbon dioxide emissions from existing power
18
plants.
19
Rodriguez.
20
-- we're going to be moving that into the bill report.
21
Some things -- so we're still -- this is going to be a
22
--
23
24
25
That's sponsored by Representatives Diaz and
That came up also in the Energy and Utility
COMMISSIONER EDGAR:
I was just going to ask
you about that.
MR. FUTRELL:
Yes, ma'am.
This is going to
FLORIDA PUBLIC SERVICE COMMISSION
000018
1
be -- that document is about five or six days old.
2
will be updating that and circulating a revised version
3
for you this afternoon is our goal.
4
COMMISSIONER EDGAR:
5
MR. FUTRELL:
We
Okay.
But that's a bill that got some
6
attention particularly in the House Energy and
7
Utilities Subcommittee meeting last week.
8
any state agency from implementing rules or regulations
9
or submitting a state or multistate implementation plan
It prohibits
10
to EPA regarding carbon dioxide emissions from power
11
plants.
12
The amendment added that -- provided that DEP
13
could submit to EPA a status report or a request for an
14
extension for submission to the state's plan.
15
provision was approved.
16
and Natural Resources Subcommittee.
17
18
So that
It's now in the Agriculture
COMMISSIONER EDGAR:
Is there a Senate
companion, Mark?
There is.
It is 838.
19
MR. FUTRELL:
20
CHAIRMAN BROWN:
21
on the report or any other matters?
22
Yes, Commissioner Graham.
23
COMMISSIONER GRAHAM:
Commissioners, any questions
Back to Senate Bill
24
534, you said that there -- excuse me.
You said that
25
this bill would require for them to define where the
FLORIDA PUBLIC SERVICE COMMISSION
000019
1
benefits go or define benefits.
2
MR. FUTRELL:
Right.
Explain that again.
The language is that
3
the Commission may allocate benefits between the
4
customers and the shareholders, owners, or affiliates
5
accordingly regarding rate case expense, and it's part
6
of the findings on those criteria, part of the findings
7
to determine the extent to which the criterion benefits
8
the customer.
9
COMMISSIONER GRAHAM:
Just the customer?
Yes, sir.
10
MR. FUTRELL:
11
COMMISSIONER GRAHAM:
Or is it breaking it
12
down how much goes to the customer, how much goes to
13
the owner, how much goes to --
14
MR. FUTRELL:
I think that's the next step is
15
to identify the benefits, the extent to which those
16
criteria benefit the customers, the rate case expense
17
for those provisions, and then allocate those benefits
18
out.
19
Commissioner, as far as understanding exactly how that
20
gets implemented.
21
understand that language better.
22
23
So the language is -- I had the same reaction,
So we're working to try to
COMMISSIONER GRAHAM:
Okay.
So my confusion
is -- I'm not the only one.
No, sir.
24
MR. FUTRELL:
25
COMMISSIONER GRAHAM:
Thank you.
FLORIDA PUBLIC SERVICE COMMISSION
000020
1
2
CHAIRMAN BROWN:
report?
Thanks, Mark.
3
4
I know you guys have been very
engaged with this session.
Thank you very much.
5
MR. FUTURELL:
6
CHAIRMAN BROWN:
7
All right.
I appreciate it.
On to General Counsel's report,
8
Mr. Baez.
9
jumped over and both --
I mean, sorry, Mary Anne Helton.
I just
I'm not General Counsel yet.
10
MR. BAEZ:
11
CHAIRMAN BROWN:
12
Any other questions on the
the General Counsel.
That's why -- Mr. Baez is
Just joking.
13
(Laughter.)
14
MR. BAEZ:
15
CHAIRMAN BROWN:
16
MS. HELTON:
I left my brushes and my hat.
Mary Anne.
Well, you get me instead, today
17
anyway.
I just wanted to mention that starting last
18
summer we had a series of three workshops with
19
practitioners before the Commission, both utilities and
20
Intervenors, who -- and we talked about Commission
21
processes.
22
think we had some really good, healthy discussion about
23
the process that we use here.
24
some hopefully better understanding on the part of
25
everyone, staff included, with respect to where people
We had our last one yesterday.
The -- I
I think we have maybe
FLORIDA PUBLIC SERVICE COMMISSION
000021
1
come from when they come here for our proceedings.
2
We've talked about some changes that the
3
parties have asked for.
Some staff agrees with, some
4
tweaks that staff agrees with, some that staff does not
5
agree with.
6
having had a healthy discussion, everybody understands
7
better where we're coming from.
And I think having had the discussion and
8
We are in the process of making some changes
9
to our order establishing procedure and our prehearing
10
order, which we will be distributing to you so that you
11
can see the outcome of the discussions and provide your
12
input at that time.
13
14
15
CHAIRMAN BROWN:
Thanks, Mary Anne.
Do any
of these changes need Commission approval?
MS. HELTON:
Well, in the sense that you all
16
have the ability to sign or you all are the ones that
17
sign the orders establishing procedure and the
18
prehearing order, yes.
19
They don't -- and none of them require
20
Commission rule changes.
Many of our procedural rules
21
that may have addressed some of these subjects we
22
repealed or follow the uniform rules now back in the
23
mid -- from the mid '90s when we had to repeal our
24
rules and start following the uniform rules.
25
more tweaks in process that are reflected in the
FLORIDA PUBLIC SERVICE COMMISSION
So it's
000022
1
procedural orders which you sign.
Which can be modified by any
2
CHAIRMAN BROWN:
3
Prehearing Officer or Commissioner.
Yes.
4
MS. HELTON:
5
CHAIRMAN BROWN:
6
Yes.
Okay.
Commissioners, any
questions?
7
Commissioner Edgar.
8
COMMISSIONER EDGAR:
Thank you.
Mary Anne,
9
just so I'm clear, are you telling us that for
10
basically the kind of standard language that is
11
proposed in a draft OEP or prehearing order by staff,
12
that that's going to be tweaked somewhat per the
13
discussion?
14
MS. HELTON:
Some of -- for instance, we've
15
been following a procedure now for confidential
16
information, what we expect parties to bring to the
17
hearing room and what staff will provide.
18
had it in our mind what we were doing, I don't think
19
that was fully vetted in the order.
20
actually have already made that change.
21
We had a request --
22
COMMISSIONER EDGAR:
23
24
25
And while we
So we -- we
Again, I'm sorry, Mary
Anne, but when you say "made that change," again -MS. HELTON:
Made it -- that's already been
reflected.
FLORIDA PUBLIC SERVICE COMMISSION
000023
1
2
COMMISSIONER EDGAR:
So it would be kind of
standard draft language that would -Yes.
Yes.
3
MS. HELTON:
4
COMMISSIONER EDGAR:
5
MS. HELTON:
6
COMMISSIONER EDGAR:
7
MS. HELTON:
Yes.
Okay.
I'm sorry.
That's okay.
One of the other changes that we
8
have already -- is reflected is there was a request to
9
no longer require objections to discovery to be filed
10
within, I think, ten days of issuing discovery.
11
think that just creates more bureaucracy and it doesn't
12
really provide anything.
13
remove that, and we've actually already stricken that.
14
I
So we've had a request to
We met yesterday to talk about expert
15
witnesses and have had a request to change the order
16
with respect to how we deal with expert witnesses in
17
Commission proceedings.
18
going to recommend to you.
19
going to meet about that on Monday to talk about the
20
discussion.
I'm not sure yet what we're
The lawyers are actually
21
COMMISSIONER EDGAR:
22
MS. HELTON:
23
24
25
Okay.
Thank you.
So those are some of the
suggestions.
One other thing that I can think of right now
off the top of my head, the composite exhibit list,
FLORIDA PUBLIC SERVICE COMMISSION
000024
1
we've had a request that staff start identifying the
2
issues associated with each exhibit that staff would
3
like to have stipulated.
4
will be seeing.
5
we've discussed.
So that's a change that you
So those are the types of things that
Thank you.
6
CHAIRMAN BROWN:
7
Commissioner Graham.
8
COMMISSIONER GRAHAM:
So you said that this
9
is, what, like your third or fourth meeting you've had?
10
Is this kind of where the whole voir dire process came
11
out of?
12
MS. HELTON:
Well, voir dire has always -- I
13
mean, that is something that is a right under Florida
14
law.
15
I'm not sure that I would say it's something that --
16
where it came out of, but --
I think it's probably law all over the country.
17
18
COMMISSIONER GRAHAM:
I mean, it's something
we never did before.
19
MS. HELTON:
We have -- you may -- you may
20
not have seen it, but voir dire is not a new experience
21
for the Commission.
22
COMMISSIONER GRAHAM:
But I know when we --
23
last hearing we went through that and it was kind of
24
convoluted.
25
that out?
Have you guys worked on trying to iron
FLORIDA PUBLIC SERVICE COMMISSION
000025
1
2
MS. HELTON:
We are working on that.
That
was part of the discussion from yesterday.
3
COMMISSIONER GRAHAM:
4
CHAIRMAN BROWN:
5
other updates, Mary Anne?
Thank you.
Commissioners?
Okay.
Any
No.
6
MS. HELTON:
7
CHAIRMAN BROWN:
8
Braulio.
9
MR. BAEZ:
Thank you so much.
Thank you, Madam Chairman.
For my
10
report, we've got -- executive management has been
11
making some changes on the IT front, and I wanted to
12
turn it over to Apryl Lynn to walk you through some of
13
the changes to our systems and what we've -- what we've
14
been able to accomplish.
15
CHAIRMAN BROWN:
Thank you.
And I appreciate
16
you guys bringing this to everybody's attention and
17
highlighting it at this meeting.
18
MS. LYNN:
Okay.
Well, good morning,
19
everyone.
Like Braulio said, we'll talk a little bit
20
about IT.
About two weeks ago we updated our platform
21
for our website, so it moved to a different platform, a
22
newer platform.
23
address hardware and software obsolescence concerns,
24
system reliability, and functionality for the future.
25
The new website was implemented to
The PSC's website is hosted by the Shared
FLORIDA PUBLIC SERVICE COMMISSION
000026
1
Resource Center and managed by the Agency of State
2
Technology, so it's not managed here.
3
was running on outdated software and becoming
4
unreliable and was no longer under warranty.
5
website, about ten years old actually, would have lost
6
technical support in April of 2016, so we had to do,
7
you know, make these changes now.
8
9
The old website
The old
Prior to implementation, IT developed a user
group, you know, a test group to kind of test the
10
changes before going live.
11
efforts we did realize that there may have been some
12
glitches or concerns following the cutover.
13
Even with those testing
So, first, I want to thank you for your
14
patience, everyone for your patience, and appreciation
15
in the comments that you've given us thus far as we've
16
made those changes.
17
anything, please let us know.
18
website with a form so that you can inform us.
19
If you continue to notice
We've updated our
If you don't know what I'm talking about at
20
all, that's great.
21
great job, so we appreciate that too.
22
you notice anything, use that form, let us know, and
23
we'll, you know, immediately address those.
24
25
That means that we have done a
But, really, if
We haven't heard any concerns this week, so I
think we've kind of knocked out a lot of concerns.
FLORIDA PUBLIC SERVICE COMMISSION
But
000027
1
if you notice anything, no matter how small, please let
2
us know.
3
COMMISSIONER GRAHAM:
4
MR. BAEZ:
5
CHAIRMAN BROWN:
No concerns this week.
A good week.
Thank you.
If you guys, if
6
you pull up the website on your iPhone, it completely
7
cuts off Ron.
8
the home page is -- and they're working on those to
9
shift it and make it more central.
It, like, stops at a certain point.
So
But the fonts are
10
smaller, it's more -- it just needs a little cleaning
11
up.
So sorry about that.
12
MR. BAEZ:
Just to be clear, Commissioner
13
Brisé's office did not -- was not the one that alerted
14
us.
15
CHAIRMAN BROWN:
It was not.
I noticed it.
16
You know, I was, "Where's Ron?"
17
(Laughter.)
18
So thank you, Commissioner Brisé.
And thank
19
you, everybody, for being patient.
And they're working
20
on kind of updating it.
21
There's going to be more enhancements, and it's going
22
to be very accessible to consumers, to the parties, and
23
folks.
It's going to be better.
So they're really getting modernized.
24
Thank you, Apryl.
25
COMMISSIONER BRISÉ:
Question.
FLORIDA PUBLIC SERVICE COMMISSION
000028
Sure.
1
CHAIRMAN BROWN:
2
COMMISSIONER BRISÉ:
Commissioner Brisé.
Thank you.
So is the
3
new updated website going to be linked with, say, our
4
Twitter feed, and is it going to be mobile friendly?
5
know that we had discussions in the past about making
6
it much more mobile friendly.
7
people to track -- like, if I'm a Miami resident or an
8
Orlando resident or whatever and I want to track
9
certain activities and get -- not pop ups -- but
Is it going to allow for
10
updates that are following actions here at the
11
Commission, are those things that are included in our
12
package with respect to our website and so forth?
13
MS. LYNN:
I
I'm going to -- if I -- Lee is in
14
here, so if I start going too far, Lee is going to jump
15
up and scream at me.
16
to be -- we're going to be -- have more capability to
17
do those things.
18
progresses, but with this functionality we can do more,
19
more than we were doing before.
20
devices, as in times of old, were not as current
21
either, so a lot of our website features now will work
22
on mobile devices better than they did before.
But absolutely, there are going
So we'll evaluate those as time
23
CHAIRMAN BROWN:
24
MS. LYNN:
25
MR. KISSELL:
And some of the mobile
Thank you.
Did that sound good, Lee?
That sounds great.
FLORIDA PUBLIC SERVICE COMMISSION
000029
1
MR. BAEZ:
And just to give you reassurances,
2
this obviously is an evolving process, and we're always
3
looking for ways to make, you know, not just the site
4
but our process more mobile friendly, et cetera.
5
know, Commissioner Brisé, that you've been mentioning
6
and bringing these things up for some time, and while
7
the timing may not have been right, it continues to get
8
better for things like the suggestions that -- that
9
you've made.
10
And I
So we're always on the lookout for those
opportunities.
11
CHAIRMAN BROWN:
Thank you.
And,
12
Commissioners, anybody that has additional suggestions,
13
please direct them to Apryl or Lee Kissell, and their
14
door is open for this, making it a better experience.
15
Mr. Baez, anymore updates?
16
MR. BAEZ:
17
CHAIRMAN BROWN:
18
matters.
19
us.
20
That's it on the updates.
Okay.
Moving on to other
We actually have a few other matters before
Starting -- I mentioned during the last
21
Commission Agenda Conference at the beginning of the
22
year that we -- I was going to be appointing one of us
23
as a liaison to the Department of Environmental
24
Protection with regard -- for communication with regard
25
to economic and reliability issues associated with the
FLORIDA PUBLIC SERVICE COMMISSION
000030
1
Clean Power Plan.
We are so fortunate that we have a
2
Commissioner among us that has really worked key --
3
really hard on these issues on the national stage for
4
about two years or more, and she's agreed to serve in
5
that capacity.
And we've got the -- who is it?
6
(Laughter.)
7
We are fortunate to have Commissioner Edgar,
8
who came from DEP and served as NARUC president and has
9
a wealth of information and resources, to serve and
10
she's agreed to serve as that liaison.
And I
11
appreciate it immensely, so thank you for that.
12
know we will benefit as a Commission having her at the
13
table in the discussions with DEP along with our staff.
14
So thank you, Commissioner Edgar.
And I
To that -- in that regard, we have a draft
15
16
letter that staff has prepared -- Mr. Futrell, if you
17
could come up here, I'd appreciate it -- on comments on
18
the federal plan, the model rules for the Clean Power
19
Plan.
20
I apologize for the late delivery on this.
21
going to turn it over to Commissioner Edgar to have her
22
address it, provide some input on our comments to the
23
proposed plan.
24
delivery to those of you, but I know Commissioner Edgar
25
is very interested in this too.
And it was disseminated to us late yesterday, so
And I'm
And, again, I apologize for the late
FLORIDA PUBLIC SERVICE COMMISSION
000031
1
COMMISSIONER EDGAR:
Thank you, Madam Chair.
2
And first of all, thank you for the -- thank you for
3
the honor and the opportunity to work more closely on
4
these issues.
5
I was appointed as a Commissioner, I did work as a
6
Deputy Secretary at the Florida Department of
7
Environmental Protection for almost five years, and I
8
often say that it is my second favorite state agency.
9
So the opportunity to engage with the dedicated,
And I think many of you know, but before
10
professional staff over at DEP and with our staff on
11
these issues that are near and dear to me is very
12
exciting.
13
opportunity and your trust.
So thank you, thank you for the additional
14
Commissioners, I'm sure you know, but today
15
is, I believe, Mark, the deadline for the request for
16
comments that EPA issued on their draft federal --
17
federal plan.
18
but the deadline is today.
19
to the holidays for one of my just routine briefings
20
that I've asked them to do with me on these issues and
21
other EPA-related issues and had asked them to take a
22
close look at what EPA had issued and consider whether
23
it would be appropriate for us to make comments.
24
also talked with DEP staff, and my understanding is that
25
they will be issuing some technical comments later today
I'm not sure where all of that will go,
I did meet with staff prior
FLORIDA PUBLIC SERVICE COMMISSION
I've
000032
1
2
as well.
The comments that staff has drafted that are
3
before you are very much in keeping, if not exactly, to
4
comments that we have made in the past to the draft rule
5
and then as that process was moving forward.
6
certainly would want Mark to correct me or if you see
7
anything, but there really is honestly really nothing
8
new, different.
9
procedure and process for EPA, and so for us to provide
I
But this is a separate technical
10
comments and participate in this process as it moves
11
forward I believe is appropriate.
12
It -- the comments that are before you are
13
very high level general policy issues that we have
14
stated as policies for the state and on behalf of the
15
Commission many, many times, primarily flexibility for
16
states to implement federal requirements, states and
17
regions, concern about potential reliability impacts,
18
and concern about potential affordability impacts as it
19
moves forward.
20
I have asked -- or as I've looked at this a
21
little more closely, there is one sentence that I would
22
suggest we add to the first paragraph, which is a
23
sentence that we have used in comments to federal
24
agencies many times in the past.
25
But it basically -- it would say, "Section 366.015,
Again, nothing new.
FLORIDA PUBLIC SERVICE COMMISSION
000033
1
Florida Statutes," encourage -- "encourages the Florida
2
Public Service Commission to participate in federal
3
proceedings that impact the utilities we regulate."
4
Again, a sentence that we use many times.
5
from the statutes.
6
back and forth on this, it was not included, but I would
7
suggest that that be included in the first paragraph.
8
Mark, my suggestion would be after the second sentence.
9
But if, Commissioners, you are agreeable, I think that's
10
It's directly
And just as we were kind of going
an appropriate addition.
And then also just one very minor technical
11
12
catch to the draft that you have before you, in the
13
next-to-last paragraph we refer to EPA's guidelines.
14
Again, that's language that we have used before.
15
the more appropriate for this particular request for
16
comment would be to refer to it as the federal draft
17
plan.
Really
So, Commissioners, I think it's important that
18
19
we continue to reiterate, as EPA has different stages
20
and processes, what the concerns are on behalf of
21
Florida and that we continue to work with DEP and other
22
state entities as it moves forward.
23
CHAIRMAN BROWN:
24
25
Thank you, Commissioner
Edgar.
Commissioners, before I turn it over to staff
FLORIDA PUBLIC SERVICE COMMISSION
000034
1
and Mr. Baez --
2
COMMISSIONER PATRONIS:
3
CHAIRMAN BROWN:
4
Sure.
Just a comment.
Commissioner
Patronis.
5
COMMISSIONER PATRONIS:
So this is the first
6
time I've ever read a letter of this nature where it's
7
actually coming from us.
8
about an eighth grade level, and that's good for people
9
like me.
And I just -- it's written on
Because, I mean, I read it for the first time
10
just now, and I understood every single word in it and
11
every point you're trying to make.
12
appreciate it being that clear.
13
14
CHAIRMAN BROWN:
very humble.
Commissioner Patronis is
Okay?
15
(Laughter.)
16
COMMISSIONER PATRONIS:
17
And I just -- I
I'm just very low
level.
Commissioner Brisé.
18
CHAIRMAN BROWN:
19
COMMISSIONER BRISÉ:
Yes, thank you, and
20
thank you, Commissioner -- or Chairman Brown and
21
Commissioner Edgar for taking on this task.
22
think this goes in line with our discussions at SEARUC
23
with the fact that Commissioner Edgar is our point on
24
this very topic, so not only for Florida but
25
coordinating our efforts in the southeast region so
FLORIDA PUBLIC SERVICE COMMISSION
And I
000035
1
that where we have areas of shared interest, we can
2
express that.
3
differences, everyone can do what they need to do with
4
respect -- with respect to that.
5
work on this, and staff.
6
And, you know, where there are some
CHAIRMAN BROWN:
So thank you for your
And thank you, Commissioner
7
Brisé, for highlighting that.
8
for us.
9
in that capacity.
I think it's important
I mean, we have -- we've got the right person
So we're going to benefit
10
tremendously, not just for our state but for the whole
11
region.
12
So, Commissioner Graham.
13
COMMISSIONER GRAHAM:
14
Are we going to add
another category here for CPP update?
15
CHAIRMAN BROWN:
You know, I think that's a
16
very smart idea.
17
Lisa Harvey, and I think that's great.
18
the comment, and we'll have it.
19
has those updates, we'll --
20
It's something I've discussed with
COMMISSIONER EDGAR:
I appreciate
If Commissioner Edgar
Certainly.
I would be
21
pleased for staff to do that if it's agreeable with the
22
Chairman, with the Chairman and with the Executive
23
Director.
24
nothing new, but there are a lot of moving parts and
25
moving pieces.
And, of course, some meetings it may be
And I know you're all interested and I
FLORIDA PUBLIC SERVICE COMMISSION
000036
1
am, so thank you.
2
3
MR. BAEZ:
standing item, if that's your pleasure.
4
5
We'll make sure that there's a
CHAIRMAN BROWN:
I think
it --
6
(Laughter.)
7
MR. BAEZ:
8
Unless there's not.
We will check every -- prior to
make sure if we have to have a standing item.
9
CHAIRMAN BROWN:
Thank you.
10
Commissioner Graham.
11
COMMISSIONER GRAHAM:
I was going to say, I
12
know we get those updates all the time from EPA,
13
specifically Ken Mitchell out of Atlanta all the time,
14
and, you know, you're always sifting through it to see
15
what has changed or is it the same information all the
16
time.
17
legislative update, that, you know, if you can bring us
18
up to date each time, say, well, you got this letter,
19
this letter, or this letter.
20
know, what they're trying to do, which direction
21
they're going.
So it would be helpful, I mean, just like the
Let me tell what, you
Thanks.
Thank you.
Good input.
22
CHAIRMAN BROWN:
23
Commissioners, any other questions before we
24
turn it over to staff?
Or, Mr. Baez, do you have
25
anything to add to this?
FLORIDA PUBLIC SERVICE COMMISSION
000037
1
MR. BAEZ:
Nothing to add.
I mean, I agree
2
with the good points that Commissioner Edgar made.
And
3
this is just one more opportunity, as I see it anyway,
4
to remind them.
5
what Florida has to say, then Florida should say it as
6
often as possible.
And if they are looking to listen to
Absolutely.
7
CHAIRMAN BROWN:
8
I have a few grammatical, minor grammatical
9
adjustments, but with that, I would entertain a motion
10
to approve with the comments and suggestions made by
11
Commissioner Edgar.
So moved.
12
COMMISSIONER BRISÉ:
13
COMMISSIONER PATRONIS:
14
CHAIRMAN BROWN:
15
(Vote taken.)
16
All right.
Second.
All those in favor, say aye.
Thank you.
Thank you, Mark, for
17
your timely work on this.
I appreciate it.
18
Commissioner Edgar, again, thank you.
And,
Another matter, I'd like to highlight to
19
20
everybody here that I want to congratulate Commissioner
21
Brisé.
22
which is huge.
23
24
25
He was just reappointed to the USAC board,
And we are --
COMMISSIONER EDGAR:
But who -- who
reappointed him?
CHAIRMAN BROWN:
Who?
Who?
FLORIDA PUBLIC SERVICE COMMISSION
000038
1
(Laughter.)
2
Do you want to speak on that?
3
COMMISSIONER BRISÉ:
Who reappointed me?
4
COMMISSIONER EDGAR:
Actually I was thinking
5
joint board, but there we go.
6
COMMISSIONER BRISÉ:
7
Yeah.
So the joint
board, Commissioner Edgar appointed me to that, and --
8
COMMISSIONER EDGAR:
And reappointed.
9
COMMISSIONER BRISÉ:
And reappointed me.
10
For
this one I think it's --
11
COMMISSIONER EDGAR:
Was it Travis?
12
COMMISSIONER BRISÉ:
-- Travis, President
13
Kavulla, and so the formal appointment came by Chairman
14
Wheeler of the --
15
COMMISSIONER EDGAR:
FCC.
16
COMMISSIONER BRISÉ:
-- of the FCC, so.
17
COMMISSIONER EDGAR:
Congratulations.
18
COMMISSIONER BRISÉ:
Thank you.
19
CHAIRMAN BROWN:
We are so delighted, and
20
we're lucky to have you a part of our team.
21
such a great group here, and we're fortunate to have
22
his expertise in that area too.
23
24
25
COMMISSIONER BRISÉ:
So congratulations.
Thank you.
And on that
note, can I say something?
CHAIRMAN BROWN:
We've got
Absolutely.
FLORIDA PUBLIC SERVICE COMMISSION
000039
1
COMMISSIONER BRISÉ:
So this week -- was it
2
this week or last week -- I drafted a letter in support
3
of the Lifeline modernization effort, which to a
4
certain degree reflects ensuring that the Lifeline
5
program is sustainable even with whatever changes they
6
want to make with the modernization moving towards
7
broadband, but ensuring that the process ensures that
8
we deal with the waste, fraud, and abuse concerns, and
9
that those who need the service receive the service and
10
11
receive a service that they can actually use today.
And so we penned a letter to support that,
12
and we are working on with -- through the joint board
13
and other entities to ensure that that program is
14
sustainable and does what it's supposed to do.
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CHAIRMAN BROWN:
Thank you.
Thank you for
the update.
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Commissioner Edgar.
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COMMISSIONER EDGAR:
Thank you, Commissioner
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Brisé, for your work on that issue.
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something this Commission has been very involved in for
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many, many years and appropriately so.
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say as a donor state, I know we have a strong interest
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in those dollars going to where they are intended to go
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to do good things.
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As you know,
So I would just
So thank you for that.
CHAIRMAN BROWN:
Thank you.
Any --
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Commissioners, I have another matter that I'm pretty
2
excited about and I'd like to share with you guys.
As you all know, we've instituted an Employee
3
4
of the Month program, and thank you for those of you
5
who have supported it.
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feedback, a lot of reception, and so much participation
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on the outside in this month of January.
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thrilled to announce somebody who has gone above and
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beyond, we all know.
It's gotten a lot of positive
And I'm
We're very fortunate to have
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Allison Orange, who actually started her career with
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the Public Service Commission.
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up here for a second with your husband, Chip, too?
13
Thank you so much.
14
be great.
15
Allison, could you come
If you guys could sit, that would
I'd like to share some really great things
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about Allison.
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she's gotten among the employees -- this is a program
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that's going to rotate from divisions and it's going to
19
continue, and it's a great program because for me,
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quite frankly, I get to know the employees a little bit
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and get some of their ideas, and some of these
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employees have great ideas.
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And, again, the positive reception that
And as I said, Allison started her career
24
with the PSC.
It was her first job.
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her last job.
(Laughter.)
She says it'll be
It's kind of amazing, she
FLORIDA PUBLIC SERVICE COMMISSION
000041
1
started here in 1982 as a computer programmer.
2
colleagues in the agency have picked her specifically,
3
unanimously because of her exceptional information
4
technology support to the agency.
5
almost every single one of us and, you know, she has
6
that advantage because she gets to see all of us.
7
Her
Allison touches
The other thing about Allison is she believes
8
that the administrative staff is the Public Service
9
Commission's key weapon, and she knows and she really
10
encourages that and stresses that to folks, and I think
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that's very important for us.
12
She met her husband -- Chip and her have been
13
together since 1980.
14
long time.
15
met in Florida State in a computer science class.
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I know Allison told me that he was so smart, she was
17
just blown away by him.
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have this great matrimony and they get to work together
19
and enjoy their career paths together.
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They've been married for a very
Congratulations, both of you.
And you guys
And
And they're lucky that they
And a few other things about her.
They
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married in 1981.
They have a spoiled cat named Sen-Sen
22
(phonetic).
23
enjoy your colleagues.
24
at the Public Service Commission.
25
like to present to you the award for the Employee of
You read a lot, you bake a lot, and you
And we're blessed to have you
And with that, I'd
FLORIDA PUBLIC SERVICE COMMISSION
000042
1
the Month.
And we're going to continue this program,
2
but to highlight your wonderful contributions of
3
service here.
Thank you so much.
4
(Applause.)
5
Commissioners, any other -- we're not going to
6
put her on the spot.
7
I won't do that to her.
You're welcome.
But, Commissioners, any comments or --
8
9
She claims to be an introvert, so
Commissioner Brisé.
10
COMMISSIONER BRISÉ:
Yeah.
I just want to
11
say thank you for your service to the state and to us
12
here at the Commission.
13
colleagues choose you as someone who is dependable,
14
reliable, likeable, and greatly appreciated.
15
you.
16
It's awesome when your
So thank
And I also want to commend Commissioner -- or
17
Chairman Brown for instituting this program.
18
again, I think it's important for us to recognize each
19
other when we do well.
20
21
22
Once
So thank you.
CHAIRMAN BROWN:
And I appreciate that,
Commissioner Brisé.
Other Commissioners?
And it's a good program
23
because we all get to know, and I encourage you all
24
to -- once we get the Employee of the Month and meet
25
with them and take an opportunity to pick their brain
FLORIDA PUBLIC SERVICE COMMISSION
000043
1
for some ideas, and please, please go, go with that.
2
And with that, if we have no other matters, the meeting
3
is adjourned.
4
(Internal Affairs adjourned at 10:17 a.m.)
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FLORIDA PUBLIC SERVICE COMMISSION
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STATE OF FLORIDA
2
COUNTY OF LEON
)
:
)
CERTIFICATE OF REPORTER
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I, LINDA BOLES, CRR, RPR, Official Commission
Reporter, do hereby certify that the foregoing
proceeding was heard at the time and place herein
stated.
IT IS FURTHER CERTIFIED that I
stenographically reported the said proceedings; that the
same has been transcribed under my direct supervision;
and that this transcript constitutes a true
transcription of my notes of said proceedings.
I FURTHER CERTIFY that I am not a relative,
employee, attorney or counsel of any of the parties, nor
am I a relative or employee of any of the parties'
attorney or counsel connected with the action, nor am I
financially interested in the action.
DATED THIS 27th day of January, 2016.
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__________________________________
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LINDA BOLES, CRR, RPR
FPSC Official Hearings Reporter
(850) 413-6734
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FLORIDA PUBLIC SERVICE COMMISSION
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