Florida Discusses Renewable Energy Targets
Last week the Florida Public Service Commission recommended that 20 percent of Florida’s energy should come from solar and wind power and other renewable power sources by 2020.
Renewable energy requirements for utilities have already been passed in more that half the states. In an all encompassing energy law passed last year, the Florida Legislature asked the commission to develop recommendations by February for quotas on how much of the power generated must be from alternative energy.
During the annual session that starts in March, lawmakers will be responsible for striking a balance between reducing greenhouse gas emissions for environmental, health and fossil fuel depletion reasons and protecting Florida’s utility customers, who may pay more for the renewable energy plan if it is not implemented well.
Renewable energy requirements would encourage investment in Florida’s renewable energy industry because demand would be guaranteed so there would be little risk. While higher demand could drive up renewable energy prices in the short-term, it is expected to stimulate technology improvements that would help decrease prices in the long-run.
A state study recommends spending up to 5 percent would be required to meet the recommendations, which would work out to about $563 million for FPL, adding an estimated $6.41 to a residential bill for 1,200 kilowatt hours. Under the panel’s recommendation, the utilities’ stockholders would be responsible for paying penalties for missed deadlines, and the commission would review the cap annually, increasing it if needed. This is at odds with the commission recommendation of spending up to 2 percent of the annual revenues of each of Florida’s five major utilities to comply with the requirements. The commission says that would work out to about $225 million for Florida Power & Light, adding an estimated $3.08 to an FPL residential customer’s monthly bill for 1,200 kilowatt hours of electricity.
Consumer advocates say various forms of renewable energy should compete freely under market conditions to achieve the best pricing. They also suggest using some of the money to give rebates to customers who buy solar panels, solar water heaters or energy-efficient devices and better home insulation to conserve energy.
FPL’s proposal of including new nuclear energy in “clean” energy requirements was not ruled out by commission. Officials from FPL, the state’s largest utility, say nuclear energy would help them reduce greenhouse gas emissions in a cost-effective way and lessen the volatility of fuel costs to customers.
Nuclear energy opponents say there is no effective plan to dispose of the radioactive waste from nuclear plants and they are worried about the costs.
Two new nuclear generators proposed for FPL’s Turkey Point plant near Miami are projected to cost $12 billion to $24 billion.



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