Review of 2006 Ten-Year Site Plans - Public Service Commission

Outlook
Florida’s utilities must continue to explore alternatives to natural gas energy generation.
Greater emphasis must be placed on increasing public knowledge and awareness of energy
conservation. Utilities must continue to develop and employ all cost-effective DSM measures. Ongoing
efforts to further develop and employ renewable energy generation by both utilities and
customers should provide Florida’s utilities with added non-traditional energy generation. The
construction of new nuclear generation will not only increase fuel diversity but provide energy
without the emission of greenhouse gases. Advancements toward “clean coal” technology and the
resolution of greenhouse gas emission standards are needed to address the uncertainties currently
associated with the addition of coal generated energy.
Forecasts of the state’s growing total energy demand continue to surpass current conservation,
DSM, and renewable energy programs offered by Florida’s utilities. Meeting this increasing demand
will require the addition of traditional generation capacity to satisfy reliability requirements. The
recent denial and withdrawal of several coal-fired units from the utilities’ plans may result in the
addition of natural gas-fired generation over the next several years. Therefore, utilities should
continue to evaluate all options of natural gas supply and delivery, such as liquefied natural gas
(LNG), natural gas storage, and possibly additional pipelines, to meet the increasing demand for
natural gas.
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