Review of 2008 Ten-Year Site Plans - Public Service Commission

1. Demand-Side Management (DSM) and Conservation
The first step toward building an energy efficient Florida begins with minimizing the load and
energy requirements which the utilities must serve. Reduced load and energy requirements are
essential in decreasing the burning of fossil fuels and deferring the need for additional generating
capacity. Load and energy requirements are affected by many variables including population growth,
demographics, and weather patterns. Customer choice, however, serves as the foundation for wise
energy use in order to reduce dependence on expensive liquid fuels and reduce greenhouse gas
emissions.
Utilities play an important role in educating consumers to make wise energy choices.
Through DSM programs, Florida’s utilities can have a direct effect on customer energy usage patterns.
Florida’s investor-owned utilities (IOUs) have reported more than $250 million in conservationrelated
expenditures in 2007, marking the highest expenditures since 1999. Expenditures in 2008 are
projected to exceed $285 million. This trend illustrates the commitment of Florida’s utilities to DSM
and energy efficiency. However, per capita energy consumption is projected to increase.
Over the planning period, Florida’s utilities are projecting more than 7,600 MW of summer
peak load reduction from DSM and energy efficiency programs. The demand reductions projected in
the 2008 Ten-Year Site Plans are based on goals which represent a minimum threshold utilities must
meet before building any major power plants. Overall, demand and energy savings from utilitysponsored
DSM and energy efficiency programs are expected to surpass current goals by as much as
60 percent. The utilities’ current goals were set by the Commission in 2004.
In 2008, the Legislature amended Section 366.82, F.S., which expands the Commission’s
process for establishing DSM and energy conservation goals. More specifically, the Commission
must now consider the impact of demand-side renewable energy systems as well as an expanded
scope of potential conservation and efficiency measures. Additional considerations include the need
for incentives and the effect of emission compliance costs. Utilities have launched a technical
potential study to start the goal setting process, and a hearing date is set for August 2009. New goals
will be set in December 2009 and should be reflected in the utilities’ 2010 Ten-Year Site Plans.
2. Renewable Generation
Renewable generation is another key component of building an energy efficient Florida.
Currently, approximately 1,000 MW of renewable generation are available in Florida. Roughly 450
MW are sold to Florida’s utilities as firm capacity; the remaining capacity is either sold on an asavailable
basis or used internally by customers. If all three forms of renewable energy – firm, nonfirm,
and self-service – are combined, data suggests that renewable energy accounted for 3.6 percent
of the IOUs retail energy needs in 2007.
Historically, relatively high capital and operating costs as well as limited physical applications
have hampered the development of renewable energy in the state. The 2008 Ten-Year Site Plans
indicate approximately 500 MW of new renewable capacity are presently planned through the year
2017. Current utility-owned generation is approximately 50,000 MW, so the contribution toward fuel
diversification from renewable energy remains relatively small.
Review of 2008 Ten-Year Site Plans - 2 -