Energy Bill – HB 7117 update
Posted by NCF912Project
In our last newsletter we asked you to call Governor Scott and ask him to veto the “Energy Bill” HB 7117. As of this writing (April 11, 2012), he has not taken any action. Someone suggested calling his office again and suggesting that if he doesn’t want to veto it; to please send it back to the Legislature for an impact study on the impact a hurricane would have on wind and solar operations.
The Governor’s number is 1-850-488-7146, press 2 and leave a voicemail.
You can read through this bill at: www.flsenate.gov/Session/Bill/2012/7117/BillText/er/PDF and a summary is available at: www.flsenate.gov/Committees/BillSummaries/2012/html/77
Energy Bill HB 7117 – Good or Bad?
Posted by NCF912Project
The Tea Party Network is asking that we call Governor Scott’s office 1-850-488-7146, press 2 and leave a voicemail asking him to veto Energy Bill HB 7117. You can read through this bill at: http://www.flsenate.gov/Session/Bill/2012/7117/BillText/er/PDF and a summary is available at: www.flsenate.gov/Committees/BillSummaries/2012/html/77
After reading through this bill it seems to give unprecedented power to the Florida Dept. of Agriculture to decide who should receive Renewable Energy Grants; it authorizes local governments to use discretionary sales surtax proceeds to provide funding to residential property owners who make energy efficiency improvements to their residential property.
Please read through the information yourself and make your own decision. Agriculture Commission Adam Putnam thinks that Tea Parties lack good information in opposing this bill. You can read the article at: http://www.thefloridacurrent.com/article.cfm?id=27230342.
Americans For Prosperity is planning a Joint Press Conference in Tallahassee on Tuesday, April 10th. Here is the information about that and what you can do to become involved.
Subject: Energy Bill update and Press Conference
Dear Patriots and Grassroots Leaders,
As of this moment, more than 1800 emails and nearly 600 calls have been made to Gov. Scott asking him to Veto Florida’s Bad Energy Bill
Next step is a Joint Press Conference (Americans for Prosperity, the Heartland Institute and You) on Tuesday, April 10th at 9:30 AM in Tallahassee.
We’d like to show broad-based grassroots support for Vetoing this bill so we are hoping some of you will be able to make it up and participate in the Press Conference .
Please let me know if you can attend: AFP will pay for your hotel room Monday night so you will be fresh for Tuesday morning, and we would do a run through before heading over to the press building. We will also attempt to schedule a meeting with Gov. Scott as well.
Thanks so much and have a great Easter.
Slade O’Brien
Florida Director, Americans for Prosperity
561-441-5866
www.AFPFlorida.com
www.keepEmHonestFlorida.com
Action Alert : Bill SB2087
Posted by NCF912Project
Intro to Energy Bill | Senate bill could mean $28.80-a-year rate hike for average FPL customer | Florida’s Big Utilities Pushing Higher Rates For Renewable Energy Development | A Renewable Energy Bill That Even the Tea Party Can’t Like | What happened to anti-tax Legislature? | How to Help?
Intro to Energy Bill SB2087
There is a bill SB2087 working its way through the Florida Legislature that will raise your electrical rates significantly. The bill would provide for utilities to build additional generating capacity using alternative energy sources and pass cost plus profits on to the ratepayers. While this seems like a great idea, the monopoly aspect of this proposal is very troublesome
There is little consideration for smaller alternate energy companies to compete and sell back electricity to the grid. One of the core principals of the tea parties is “free markets”.
One aspect of the bill allows the power companies to pass on cost of biomass fuel to the ratepayers without consideration of purchase cost. Considering the current market, this means that power companies could even buy chip-n-saw logs to burn for fuel thereby driving up the market for timber. There are much better uses for this material. Sawmills and paper mills would see a spike in raw material costs that would put them at an extreme disadvantage to compete with companies from other states. If the power companies purchase the waste fuel on a truly free market this is fine but the bill needs to be revised so that they can’t do this on a subsidized basis (fuel adjustment charge). We only need to look what happened with the corn market when we want to make ethanol.
Here are the highlights of Senate Energy Bill SPB 7082 and House Bill ENUS 11 -01
- Both of these bills, give the investor owned utilities (FPL, Progress, TECO, Gulf Power) the authority to add a surcharge to each electric bill to spend up to $376 million per year on renewable energy. This could amount to over $4 billion dollars over 30 years depending on the life of the projects.
- In 2010 the Public Service Commission reports that little new capacity is needed in Florida for the next 10 years that has not already been approved.(1) The proposed legislation allows the utilities to add renewable capacity even without a need for the power.
- The proposed legislation allows the utilities to fully recover almost any expenditures that are spent on renewable energy including a return on equity invested. This allowed return on equity is essentially guaranteed since it is included in the surcharge and the Florida Commission must allow this recovery. (2)
- Florida’s electricity rates are higher than neighboring states already. Industrial rates are 52% higher than the average of Georgia, South Carolina, Alabama and Mississippi. This bill would increase the spread between Florida’s rates and the rates in the other Southern States and put Florida at a competitive disadvantage in attracting new industry and jobs. (3)
| Electricity Rates — Cents per Kilowatt Retail Revenue | |||
| 2009 | Residential | Commercial | Industrial |
| Georgia | 10.13 | 8.94 | 6.12 |
| South Carolina | 10.44 | 8.74 | 5.79 |
| Alabama | 10.66 | 10.05 | 5.96 |
| Mississippi | 10.22 | 9.50 | 6.61 |
| 4 state average | 10.36 | 9.31 | 6.12 |
| Florida | 12.39 | 10.77 | 9.32 |
| Percent Difference | 20% | 16% | 52% |
Please read the following four articles on the Energy Bill:
Senate bill could mean $28.80-a-year rate hike for average FPL customer
By JOHN KENNEDY
Palm Beach Post Staff Writer
Updated: 8:01 p.m. Monday, April 4, 2011
Posted: 7:58 p.m. Monday, April 4, 2011
Despite vows to shun new taxes or fees, a Senate panel Monday approved giving Florida Power & Light and other investor-owned utilities authority to increase customer rates $377 million over the next five years.
The electric companies, heavy contributors to both political parties, would be allowed to tack on the additional charge — without prior approval by state regulators — to cover their costs of building solar and biomass energy plants or buying renewable energy from producers.
For FPL’s 4 million customers, mostly in South Florida, the Jupiter-based utility’s $206.1 million share could mean an extra $2.40-a-month on average, or $28.80 annually, to encourage the use of alternate sources to oil-, gas-, coal-, or nuclear power.
Supporters said the move will create jobs in the burgeoning renewable industry. Critics said the extra charge is a giveaway, especially to FPL which last year was denied most of a $1.25 billion rate hike by the Florida Public Service Commission.
“It’s a legislative tax on Florida ratepayers,” said Nathan Skop, a former Public Service Commission member who voted against last year’s proposed rate boost. “It’s a corporate handout.”
The Senate’s Communications, Energy and Public Utilities Committee approved the legislation on a 12-1 bipartisan vote. Chair Lizbeth Benacquisto, R-Wellington, dashed from the hearing after the bill (CS/SB 2078) was OK’d, later declining to answer a reporter’s questions about how the proposed rate increase squared with the no-new-taxes pledge by Republican Gov. Rick Scott and GOP legislative leaders.
Lawmakers also are advancing college and university tuition increases, higher insurance rates and a likely 3 percent pay-cut for teachers, police, firefighters and government workers who would have to contribute for the first time in four decades to participate in the state’s retirement system.
The lone lawmaker to vote against the utility rate-hike Monday, Sen. Mike Fasano, R-New Port Richey, clearly saw the move as another charge on Floridians and businesses struggling to make ends meet in a troubled economy.
Fasano appeared stunned when a lobbyist for the Florida Chamber of Commerce, David Hart, stepped forward to defend the measure.
“So the Chamber supports a tax increase of $400 million on every ratepayer and business in Florida?” Fasano asked.
Hart, whose organization includes major utilities, said, “I believe that to be a small amount to pay.”
Florida’s electric utilities contributed $3.7 million in direct contributions to parties and candidates during last year’s elections, according to the National Institute on Money in State Politics.
The legislation approved Monday creates a five-year pilot program in which Florida’s four investor-owned utilities could recover their costs of renewable energy projects such as building new alternate-sources, converting existing fossil-fuel plants and purchasing renewable power.
Proponents said the cash provides an incentive for FPL, Tampa Electric, Gulf Power and the Progress Energy to advance their own projects or contract with waste-to-energy producers, solar companies and other smaller scale firms, presumably creating jobs and nurturing a still-developing industry.
For its part, Progress Energy, which serves mostly Central Florida, is steering clear of the legislation, saying its wary of the potential impact on customers.
At least one quarter of the renewable energy obtained would have to come from sources other than solar — encouraging bio-fuel producers.
“You are setting a standard and a bar…it’s about jobs, and about green technology,” said Elaine Brown, whose Jacksonville company installs solar panels and other energy-efficient devices.
But the Senate committee beat back an attempt by Sen. Thad Altman, R-Viera, to further enhance the role of smaller producers seeking to sell their energy to the big utilities.
Altman wanted to include standards requiring that energy companies selling power be located in Florida, with prices set by an independent auction.
Rick Roth, of Belle Glade’s Roth Farms, was among several small producers urging lawmakers to support Altman’s approach, saying it would help “build a market,” for companies like his, which converts vegetable waste to energy.
Currently, Roth said the big utilities aren’t interested in contracting with him, instead wanting to maintain control of the energy market. Roth said he feared FPL and others would still go their own way and produce their own renewable energy – retaining control of all revenue produced.
FPL, for example, is building a solar energy plant in Martin County.
“We need someone else other than the big IOUs to be able to produce electricity,” Roth said.
Terry Deason, a former state utility regulator now representing Florida’s big-four utilities, ridiculed Altman’s proposal as creating set-asides.
The PSC, Deason said, needed “flexibility” in evaluating the renewable plans utilities were deploying.
Jon Moyle, lobbying for Florida Industrial Power Users, said giving FPL and other utilities the go-ahead to raise rates could be devastating to hospitals, nursing homes and other big energy users, already facing state budget cuts.
“This is not the right time to be raising rates on consumers,” Moyle said. “It’s not needed.
Florida’s Big Utilities Pushing Higher Rates For Renewable Energy Development
Consumer advocates, some small businesses oppose rate-hike plan.
By ZAC ANDERSON
NYT REGIONAL MEDIA GROUP
Published: Monday, April 4, 2011 at 10:08 p.m.
TALLAHASSEE | Florida’s large electric companies have spent three years pushing a plan in the state Legislature to expand renewable energy development by increasing customer rates, but widespread disagreement remains over the proposal.
A billthat passed the Senate energy committee Monday would allow Florida’s four large investor-owned electric companies to increase rates by $2.64 per month for the average customer and to build $376 million worth of solar, biomass and other renewable projects over five years.
A coalition of groups ranging from Audubon of Florida to the Chamber of Commerce supports the legislation, but consumer advocates and some business leaders continue to bash the rate hike as a financial burden during a down economy. Such concerns doomed the bill the past two years.
Critics also accuse the large electric companies of trying to corner the market on renewables to the detriment of smaller companies, and of using lawmakers’ desire to promote clean energy to sidestep the regular rate approval process.
Under the legislation, which cleared a House committee last week, the electric companies would not have to show state regulators there is a need for the additional energy.
The inability of electric companies to meet this “need determination” helped sink a series of rate hikes before the Public Service Commission in 2009 and 2010.
Florida Power & Light and the other utilities are now trying to get their rate increases through the back door, said Nathan Skop, a former PSC commissioner who was ousted by lawmakers after aggressively defending consumers during the rate cases.
“It’s a legislative tax on Florida ratepayers,” Skop said.
But chamber lobbyist David Hart called the rate increase “a pretty small amount to pay” to help diversify the state’s energy portfolio.
Part of the debate centers around a fight between small solar companies and the large utilities. Smaller companies want a provision that would require some of the $375 million to be spent on rooftop solar projects.
An amendment to the energy bill filed by Sen. Thad Altman, R-Rockledge, that mandated 20 percent for small-scale projects failed Monday, but a 5 percent threshold eventually passed.
The House bill currently has no provisions for small-scale projects, which allow “homeowners and small business owners to play a part in renewable energy,” said Bill Gallagher, president of the Florida Solar Energy Industries Association.
Source: http://www.sunshinestatenews.com/story/renewable-energy-bill-even-tea-party-cant-like
A Renewable Energy Bill That Even the Tea Party Can’t Like
Florida’s largest utilities close to controlling everything, squelching competition
BY: MICHAEL DOBSON | POSTED: APRIL 1, 2011 3:55 AM
The Florida Legislature came a step closer to passing a renewable energy bill that rips apart all that the tea party stands for. The bill would forever assign renewable energy development and deployment solely to Florida’s regulated electric monopolies under the guise of supporting a green future.
The bill allows Florida Power & Light Co. and the rest of Florida ’s largest utilities to single-handedly control all aspects of renewable energy in this state, effectively deciding what gets built, when, and by whom. Instead of opening up markets, it closes them, squelching competition. This bill isn’t about the government working for the people to create more jobs and prosperity. And, it does not allow free markets to do what they do best.
Instead of allowing the industry to create jobs, SPB 7082 eliminates jobs by denying independent renewable-energy developers access to the electric grids. Many of these companies are homegrown businesses that have been serving Floridians for 30 years or more. Then, there are the independent, larger biomass, wind and seasoned utility scale solar developers hoping for a competitive renewable-energy market in Florida .
Leaving renewable energy development solely in the hands of monopolies is a colossal mistake. Additionally, SPB 7082 systematizes rate increases under a renewable-energy cost recovery formula. It gives utilities the ability to raise rates every year at the flip of a switch — to the tune of hundreds of millions.
The bill also does a variety of other mind-boggling things that shows the Legislature’s real intent. It eliminates the Florida Energy Office and Climate Change Commission to form a nebulous governmental entity that operates as a power unto itself, with very few requirements for transparency or public disclosure. It eliminates any reference to pursuing a Renewable Energy Portfolio Standards policy.
It allows investor-owned utilities to get an unprecedented rate increase siphoned directly from ratepayers without the need for regulatory review, public input or approval. It flies in the face of everything this conservative writer knows and understands about free markets and open competition. It is the worst of government during the worst of times. It is government picking winners and losers. It is government choosing regulated monopolies over free and open competition.
This is downright weird, given that our legislative leaders are self-identified fiscal conservatives and free marketeers. While they have committed to reducing regulations, somehow they argue that reducing regulations which allow for a free-market and competitive renewable-energy industry is ”deregulation.”Nowhere else does the Florida Legislature say that. It even has a “deregulation” bill that will be the centerpiece of this session’s accomplishments, worthy of bragging rights.
They further argue that creating a Renewable Energy Portfolio Standard is a government mandate, while stipulating that monopoly control over what is currently a free market is not. The suggestion is that codifying future rate increases and appropriating all money to the utilities is somehow not a mandate, either. I hate to be the bearer of the truth but, the emperor has no clothes and is surely naked.
As someone who always saw renewable-energy policy as being at its best when we get government out of the way, this direction is dismaying. The tea party warned against this type of government, and they were right. Last year, this same bill was presented and eventually died (or was pulled back). The reason? It was an election year. This time around, the bill’s supporters feel they could get it passed and YOU (the voter) will not remember in November 2012. It was a calculated decision to put it off for that very reason. It could have been passed last year, but the political consequences were not worth the risk.
The supporters are wrong. The tea party of Florida will not forget how this bill goes against everything we believe in. Government should not be in the business of setting up monopolies and discouraging open markets. Government should not use its awesome power to tax citizens and then earmark the money for private interests.
In other states, independent renewable-energy developers are building biomass plants, solar arrays and renewable projects using windmills. In this state, political leaders (with a straight face) have said independent developers are not capable of doing that. In other states, investment dollars are being spent and venture capital dollars are sowing the fertile renewable-energy fields, spurring innovative start-ups and entrepreneurial activity. In Florida, what we are saying is stay away, don’t try to do business here, and if you try you will spend a lot of money, go broke and die young.
The Legislature needs to go back to the drawing board and adopt policies that build new industries (like renewable energy) through open and competitive markets. Our governor said he would create jobs and open up markets. Is this what he meant? It’s surely not open and free markets, and it’s surely not getting government out of the way.
Michael Dobson is president/CEO of Florida Renewable-Energy Producers Association, chairman of Florida Green Energy Initiative and managing member of Dobson Craig and Associates. He is a Tallahassee-based columnist, renewable-energy policy expert and government relations consultant.
What happened to anti-tax Legislature?
April 01, 2011|By Beth Kassab, Business Columnist
We’re almost halfway through the 60-day legislative session and the Republican-dominated Legislature is blazing through its tax-cutting, fee-slashing agenda, right?
After all, this is the most conservative Legislature we’ve seen in years, and the Governor’s Mansion is occupied by former big-business CEO and new Chamber of Commerce darling Rick Scott, who wants to eliminate corporate income taxes among other cuts.
Yet, lawmakers have a decidedly poor record so far this year when it comes to keeping down taxes and fees. Everything from college tuition to property insurance and phone bills are all likely to rise.
If consumers and businesses were expecting a year of no new taxes or fees, that is most certainly not what they’re going to get.
Universities are being forced into big tuition increases to make up for cutting lawmakers will do to help balance the state’s more than $3.6 billion budget deficit. Proposals call for property insurance rates to go up by as much as 30 percent. And for people who still have landlines, deregulation of phone service could cause some of those bills to soar, as well.
And here are a couple more tax-related issues that turn the Legislature’s anti-tax policy on its head:
Utility bills may go up again. One proposal met with open arms by lawmakers allows big utility companies such as Florida Power & Light and Progress Energy to charge customers a fee each month that would cover the utilities’ costs of building or purchasing new renewable energy sources. The bill would also allow the investor-owned utilities to control the solar power market in Florida, much to the chagrin of smaller solar outfits that will be cut out as a result.
Funny enough, though, what’s good for one big utility isn’t necessarily good for another. FPL is hugely supportive of the bills that won support this week from House and Senate committees and the company spent a lot of lobbying time and money to make that happen.
But Progress Energy, Central Florida’s largest provider, isn’t so enthusiastic. “We are not supporting the bill at this time because we’re unsure of the impact on our customers,” said Progress spokeswoman Cherie Jacobs.
Progress Energy knows its bills are already higher than other utilities and isn’t thrilled by the prospect of adding an additional $3.32 per 1,200 kilowatt hours for residential customers to as much as an extra $420 each month for large commercial customers.
How to Help?
Please contact the committee members and express your concerns with this leglisation. Tell them you will only support this bill if it allows for truly free markets.
Senate
Chair: Senator Lizbeth Benacquisto (R)
Vice Chair: Senator Christopher L. “Chris” Smith (D)
- Senator Thad Altman (R)
- Senator Ellyn Setnor Bogdanoff (R)
- Senator Oscar Braynon, II (D)
- Senator Miguel Diaz de la Portilla (R)
- Senator Greg Evers (R)
- Senator Mike Fasano (R)
- Senator Anitere Flores (R)
- Senator Arthenia L. Joyner (D)
- Senator Evelyn J. Lynn (R)
- Senator Gwen Margolis (D)
- Senator Joe Negron (R)
- Senator Maria Lorts Sachs (D)
House
- Ford, Clay (R) (R) Chair
- Nehr, Peter (R) Vice Chair
- Williams, Alan B. (D) Democratic Ranking Member
- Albritton, Ben (R)
- Chestnut IV, Charles S. (D)
- Clemens, Jeff (D)
- Cruz, Janet (D)
- Davis, Daniel (R)
- Harrison, Shawn (R)
- Ingram, Clay (R)
- Moraitis, Jr., George R. (R)
- Passidomo, Kathleen C. (R)
- Porter, Elizabeth W. (R)
- Rehwinkel Vasilinda, Michelle (D)
- Steube, W. Gregory (R)
Nehr, Peter (R) Vice Chair
Williams, Alan B. (D) Democratic Ranking Member
Albritton, Ben (R)
Chestnut IV, Charles S. (D)
Clemens, Jeff (D)
Cruz, Janet (D)
Davis, Daniel (R)
Harrison, Shawn (R)
Ingram, Clay (R)
Moraitis, Jr., George R. (R)
Passidomo, Kathleen C. (R)
Porter, Elizabeth W. (R)
Rehwinkel Vasilinda, Michelle (D)
Steube, W. Gregory (R)