This morning I received an anonymous comment on my article about FPL’s franchise agreement with the City of Sarasota. It accused me of “mischaracterizing” Senator Bennett’s bill – SB 1186. The reader stated:
1. The bill did not remove PSC oversight of the Cost of Renewable Energy- PSC oversight was completely retained what the bill did do was give clear guidance to the PSC that Renewable Energy was in the state’s interest and that no determination of need was necessary.
2. The Bill did not remove the Governor’s RPS goals- The Governor’s RPS goals are not in Statute they are in an Excutive Order. What the bill did do was remove from statute language directing the PSC to craft a RPS rule- this was clean up- as the PSC already went thru the RPS rulemaking process.
3. The Bill did not allow for early cost recovery- it retained normal cost recovery processes. in other words costs would not have been recovered until the project was built.
First, let me state that I am the first one to promote fair representation of all sides of an argument. Whether, I agree or disagree with the points made by the individual is irrelevant to my commitment to providing honest representation on this blog. My motive is to put the power into the hands of the reader.
Second, let me state that I also have no problem correcting anything I print if it is proven that the information that I stated is inaccurate.
Third, I must also state that when someone posts anonymously on my blog it is hard for me to verify the information that is given and therefore I have to do my own research to support the claims being made by that individual.
So in my response to the accusations that we made by this anonymous reader I will address their concerns.
In my post about the renewable energy bills that were introduced this past session, it was not only Senator Bennett’s bill that I was commenting on, but also HB 1471. This was my statement that the reader took issue with:
“This year their efforts centered around getting Senator Bennett’s (R- Sarasota) bill SB 1186 passed. In it’s final form – the bill ( and it’s companion bill HB 1471) would have gotten rid of the Renewable Portfolio Standard (RPS) goals set by Governor Crist, removed the Public Service Commission (PSC) from regulating the cost, and allowed for early cost recovery for renewable energy production controlled by the utilities. “
This is the explanation of HB 1471 which states:
“Renewable Energy: Revises legislative intent regarding state’s renewable energy policy; deletes provisions requiring PSC to adopt rules for renewable portfolio standard; requires PSC to provide full cost recovery including return on equity for certain renewable energy projects; provides exemptions from determination of need requirements; provides that legislative determination fulfills certain requirements; redefines term “electrical power plant” for purposes of Florida Electrical Power Plant Siting Act to exclude solar electrical generating facilities.”
What I said about the RPS, I still feel, is accurate. What I need to make clear is that the RPS goals set by the Governor was an executive order, not a law. The bill does not undo the executive order, but it does delete the mandate and if the bill would have passed, the PSC would no longer be required to meet those goals.
I stand corrected – it is “full” cost recovery not “early” cost recovery.
And as far as my statement about the PSC not being able to regulate the costs, I need to further explain. What the bill would have done is to require the PSC to approve the rate increase as long as the Utility’s cost are considered “normal and reasonable costs” for the project. The PSC could challenge the cost if they found the rates unreasonable.
I hope this clears it up for the reader. My apologies if I mislead anyone.
