FPL's voluntary solar fee is approved

Aug 13 - Palm Beach Post (FL)

Despite unanswered questions about Florida Power & Light Co.'s voluntary solar program, the Florida Public Service Commission Tuesday approved the optional $9 -a-month solar fee in a 4-1 vote.

Juno Beach -based FPL's plan calls for customers' voluntary contributions to fund construction of an initial 300 kilowatts of solar arrays to be placed in cities in FPL's territory. The ultimate goal is 2,400 kilowatts (2.4 megawatts) of solar, depending on customer participation.

FPL expects to begin construction on the first solar facility in the three-year pilot program in January, although customers who chose to do so would not begin paying the $9 until May. Residential and commercial customers are eligible.

Commissioner Lisa Edgar cast the lone dissenting vote. Three FPL employees on hand did not give her adequate answers about the program's cost effectiveness, what other voluntary FPL programs the fee is based on, how the program will be marketed and other issues, she said.

"I am quite frankly a little stunned at the lack of answers I have been given today," Edgar said. "I do not have the comfort level I would like as to how the program is going to be marketed and targeted."

Edgar said she supports innovative efforts to bring more solar and other renewable energy to Florida .

Commissioner Eduardo Balbis said his main concern was whether the general body of ratepayers would be subsidizing the solar initiative and also whether the dollars collected would be spent on the construction of the solar facilities.

FPL attorney Maria Moncada said, "We are trying to make solar projects an option for the widest population of customers. We recognize rooftop solar is not a realistic option for customers."

Moncada said the fee amount was selected with affordability in mind.

When the solar facilities are built, they are projected to save $34,000 over three years in fuel costs, and that will benefit all of FPL's customers, even if they are not paying the $9 surcharge, said Sol Stamm , FPL's director of regulatory accounting. The program would need to bring in $1.2 million over the three years to attain that level of fuel savings.

FPL has forecast that by the end of the three years enrollment will range from 7,800 to 13,500 of its 4.7 million customers. The goal is to build solar arrays to produce 2.4 megawatts.

George Cavros , a Fort Lauderdale attorney with the Southern Alliance for Clean Energy , told the commission the program is poorly designed.

"Its biggest flaw is that it does not provide a direct economic benefit to participating customers," Cavros said.

The Orlando Utilities Commission's solar program allows participants to lock into a rate based on how much solar energy they agree to purchase.

Justin Hoystradt, West Palm Beach -based Florida regional manager for Vote Solar, a grassroots non-profit organization, said that FPL's parent company NextEra Energy could develop more solar in Florida as it has in other markets.

NextEra's other subsidiary, NextEra Energy Resources is North America's largest provider of energy from the wind and sun. FPL has 110 megawatts of solar in Florida .

"It is disappointing this proposed program does not reflect their ability," Hoystradt said. "At least 10 states and more than 20 utilities have shared programs underway, programs that make sense and produce tangible benefits to customers."

Edgar also questioned how a $200,000 a year contribution by the NextEra Energy Foundation over the three years would work.

"What's the connection? I am missing it -- allowing certain participants to vote on where FPL puts some of its charitable funds -- what does that have to do with a $9 contribution?" Edgar said.

Moncada said the donation is an incentive for environmentally conscious customers, and a number of environmental groups have been selected. Customers will cast votes for the charities on the list.

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