Florida governor expected to sign broad energy legislation

Florida governor expected to sign broad energy legislation

Birmingham, Alabama (Platts)--9May2006

Florida Governor Jeb Bush is expected to sign a sweeping energy bill that
would, among other things, make it easier for the state's utilities to build
new nuclear plants and establish a nine-member commission to develop both an
energy plan and climate action plan.

The bill, which was approved by the state Senate late Friday after
winning passage in the state House earlier last week, was sent to the
governor's desk Monday. A Bush spokesman said the governor will sign the
measure once a final version of the bill is presented to him.

Among its many provisions, the bill includes language that would allow
utilities to recovery the preconstruction and licensing costs of nuclear power
plants as they are incurred.

The provision is expected to save utilities such as Progress Energy
Florida, which intends license application for a new nuclear plant to the US
Nuclear Regulatory Commission, billions of dollars over the life of the plant,
a Progress spokesman said.

The bill also would exclude nuclear plants from the Florida Public
Service Commission bid rules, which require utilities to seek bids for new
power resources before they can elect to build their own generation.

The energy bill has so many provisions that Progress and Florida Power
and Light have yet to evaluate them all and FPL said it would be later this
week before it could comment on the legislation.

The bill would create a nine-member Florida Energy Commission, whose
members would be chosen by the Senate president and House speaker.

The commission will develop recommendations for legislation on a state
energy policy and a state climate action plan.

The bill also would direct the Florida Public Service Commission to
consider fuel diversity and reliability in determining the need for a proposed
electric power plant. It also would revise current siting laws for power
plants and transmission lines to streamline and shorten timelines.

Further, the bill would require the PSC to study the state's electric
transmission grid.

In addition, the legislation would provide financial incentives for
renewable energy technologies, energy efficient appliances, solar energy,
biomass and biodiesel and ethanol in the bill.

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