Submitted by Rex James
Friends,
If you haven’t read it yet. Please see link to an opinion article in today’s Herald Tribune page 19a. Very misleading as to how FPL embraces the production of Solar electricity in Sarasota. Please see my comments and research below. The more that I understand “decoupling” the more I like it.
Full article link: http://www.heraldtribune.com/article/20100529/COLUMNIST/5291006/2080/OPINION?Title=FPL-We-re-city-s-best-option
Analysis:
2nd paragraph
Contrary to rumors, the proposed franchise agreement does not prohibit customer-installed renewable generation, distributed generation, or providers with new technologies from serving the city, nor does it prevent the city from building its own renewable or generation facility to serve its own facilities. In fact we have met several times with local official to discuss renewable energy opportunities. However the city has not yet determined the next step it would like to take
I am not sure whether the language here is meant to win over the average citizen or whether FPL representatives have not received the desires correctly posed from the City.
The first major clarification which needs to be made is: “ the City”
As in all formal communications, terms to be used regularly in text need to be defined. Sarasota City officials need to help FPL by clarifying “ the City” as:
all properties, property owners, and tenants falling within the geographic borders of The City of Sarasota”
The article appears to consider “the City” as city owned land and properties.
In terms of solar and renewables in Sarasota over the past 2 years:
No one in the local solar and renewable industry, involved citizen groups, task forces, nor the economic development corporation, or city sustainability offices have ever so narrowly approached the desires of the citizens of Sarasota as being the City owned properties.
While FPL has allowed the property owners of Sarasota to install and connect renewables, particularly Solar to the grid, this is mandated by the Public Service commission.
Customer installed renewable generation refers to people putting solar on their own businesses or homes. This leaves out the very important industry growth component of someone or investor
group installing solar on property and selling the power to that user.
Often referred to as a 3rd party provider.
Currently neither of the following Examples would be allowed by FPL franchise:
1. Company X installs solar panels in the adjacent field to company Y, and runs wire to their building, installs a meter and charges for the Kilowatt hours provided.
2. Company X installs solar panels on company Y’s roof and company X maintains ownership of the panels, selling the power, through a meter, to company Y.
3. Company X installs Solar panels on its property specifically to sell to FPL at a fair price. (industry analysis showing the true cost of power put into the grid near its point of use add the transmission losses, pollution reductions, reduction in costly standby production during peak use, and many others to be 50% or more, above the retail rate. In Sarasota that might be $.15 – $.20/kwh)
distributed generation, : Roof top solar is distributed generation, but the traditional utility definition is standby generators owned by large users (hospitals, town buildings etc.) that can be called into operation by a utility during a dramatic peak load period .
It would be great to consider a Solar Farm as distributed generation and appreciate its value with strong kwh reimbursement recognizing that its peak contribution mirrors FPL’s peak demand curve.
Does not prohibit providers with new technologies from serving the city ?
This may be the case of energy efficiency equipment, but certainly not electric generation equipment, other than the previous distributed generation equipment a city or a company purchases solely to offset their own use on their own property. Such as a standby generator or fuel cell.
With the rapid advances in energy production and conservation, it would be in the best interest of the City and Citizens of Sarasota to have an energy future that embraces the reduction of fossil and nuclear produced energy, the reduced dependence on long distance transmission, and a sustainable supply that reflects the often aggressive weather we face.
There are two directions to meet this goal:
- Converting from a for-profit to a Not-for–profit utility provider.
- Creating a “decoupling” agreement with a for-profit utility.
Decoupling breaks the link between the utility’s ability to recover its agreed-upon fixed costs, including the profit margin, from the actual volume of sales that occur through a rate adjustment mechanism. If a utility promotes less energy use, they are rewarded rather than punished. See “How decoupling works”: http://www.progressivestates.org/content/671/utility-decoupling-giving-utilities-incentives-to-promote-energy-efficiency#2
Using untapped efficiency is the single most effective step energy providers and energy market regulators can take to reduce environmental pollution, power costs, and price volatility.
An ideal system supports both supply side and demand side efficiencies.
There is history of decoupling conversations and tests in Florida. We need to investigate what has been , and assess whether this might be a viable Sarasota solution to energy.
