Public Service Commission Staff Recommends Stricter Energy Conservation Goals Than FPL Wants

 Oct 16 - South Florida Sun-Sentinel

If customers of Florida Power & Light use less power, would they
pay less? There is intense debate about that, with environmentalists
saying customers would see a long-term savings because new power
plants wouldn't be needed and utilities saying there could be major
> rate hikes.
>
> On Thursday, the staff of the Public Service Commission weighed
> in with a recommendation saying conserving too much energy would cost
> customers more. The staff recommends that the utility conserve 1,549
> gigawatt- hours of energy by 2019.
>
> Florida Power & Light officials suggest the goal should be only
> 878
> gigawatt-hours. But environmental groups say that is way too low, and
> suggest a target as high as 10,797 gigawatt-hours  slightly higher
> than what's recommended by a consultant hired by the commission.
>
> Last year, state lawmakers required the commission to adopt
> efficiency goals that encourage lowering energy use.
>
> Commission decisions are being watched closely in light of
> criticism in recent months of what some say are its "cozy" ties to
> utilities.
> The
> staff recommendation went through more than 45 drafts before it was
> released.
>
> "This represents business as usual at the Public Service
> Commission,"
> said George Cavros, a consultant for the Natural Resources Defense
> Council.
>
> Utilities meet conservation goals through programs that give
> customers discounts for volunteering to turn their energy off when
> demand is highest and through rebates for energy-efficient appliances.
>
> Utilities often oppose lowering energy use because that means
> less in electricity sales  and profit. FPL officials project a rate
> increase of about $4 billion over the next 10 years if they used
> aggressive goals recommended by environmentalists.
>
> But Cavros said the utility is using scare tactics. He contends
> customers' bills would decrease over the long-term both because they'd
> use less electricity and it would eliminate the need for new FPL power
> plants, which customers pay for through rates.
>
> Cavros said a test unique to Florida makes it hard for consumers
> to get rebates from utilities for popular energy efficiency measures Â
> such as water heater blankets, low-flow shower heads and faucet
> aerators.
>
> The test factors in lost electricity sales to determine which
> energy efficiency measures to use in setting conservation goals.
>
> Villafana said FPL supports the test because "it does not require
> any group of customers to subsidize any other." He said if the test
> weren't used, utility customers who use energy efficiency programs
> might save money while those who can't afford to invest in new
> appliances, would pay more.
>
> Florida utilities don't provide incentives to customers for
> energy efficiency measures that provide customers with quick savings
> such as compact fluorescent light bulbs because they assume customers
> don't need incentives to implement those measures. But commission
> staffers recommend utilities start providing rebates for some of those
> items.
>
> Julie Patel can be reached at 954-356-4667 and
> [email protected] .