Review of 2008 Ten-Year Site Plans - Public Service Commission
Review of 2008 Ten-Year Site Plans - Public Service Commission
Review of 2008 Ten-Year Site Plans - Public Service Commission
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Overall, demand and energy savings from utility-sponsored conservation programs are<br />
expected to surpass current goals by as much as 60 percent. Although total demand is slated to outgrow<br />
DSM and energy efficiency efforts, as summarized in Table 4 below, current projections<br />
indicate that savings from DSM and energy efficiency efforts will increase at a rate greater than total<br />
demand. Furthermore, the projected average annual growth rate <strong>of</strong> DSM program savings has<br />
increased annually since goals were set in 2004, reflecting the effectiveness and success <strong>of</strong> current<br />
programs.<br />
Table 4. DSM and Energy Efficiency Growth Rate<br />
DSM and Energy efficiency Total Demand<br />
Summer 3.14% 2.24%<br />
Winter 2.51% 2.12%<br />
Energy Conservation Cost Recovery<br />
IOUs have the opportunity to recover prudently incurred expenditures associated with<br />
<strong>Commission</strong>-approved DSM programs through the Energy Conservation Cost Recovery Clause<br />
(ECCR). Since 1981, Florida’s IOUs have collected more than $4.5 billion through the ECCR clause,<br />
with more than $2.4 billion <strong>of</strong> that amount recovered in the last 10 years. As illustrated in Figure 8,<br />
annual ECCR expenditures for 2004 through 2006 stabilized at just under $230 million per year for<br />
two primary reasons: certain DSM programs have reached saturation in participation levels, and DSM<br />
program cost-effectiveness declined due to the relatively lower cost <strong>of</strong> new generating units.<br />
However, expenditures in 2007 exceeded $250 million, and <strong>2008</strong> expenditures are projected to exceed<br />
$285 million. This trend may be evidence <strong>of</strong> the implementation <strong>of</strong> new programs approved by the<br />
<strong>Commission</strong> in 2006 and 2007.<br />
Conservation Expenses ($ Millions)<br />
300<br />
200<br />
100<br />
0<br />
Figure 8. Conservation Expenses for IOUs<br />
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 <strong>2008</strong><br />
Projected<br />
<strong>Review</strong> <strong>of</strong> <strong>2008</strong> <strong>Ten</strong>-<strong>Year</strong> <strong>Site</strong> <strong>Plans</strong> - 14 -