Government

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
Michael DobsonMichael Dobson

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.


Comments (7)

james
7:11AM DEC 10TH 2011
A very nice post, thank you for this article as I learn something interesting
Shri Dhan Laxmi Yantra
Jim Gravel
6:08PM APR 25TH 2011
As a new conservative resident of the state of FL I am shocked at this legislation and refuse to believe that our new governor would sign this legislation. I have personal knowledge of very new green technology that is gaining inroads right now in CT, NJ, and PA and saving huge sums of money to cities and towns.
Mark
7:14PM APR 1ST 2011
I'm 3rd gen Floridian, College educated, Veteran, and the owner of business. From my simple perusing of the proposed staute, I see my business will pay more for energy in the future, but i will pay less if the IOU (FP&L and Progress) are capped at 2% renewable verses the out of staters (Yawkeees) renewable energy developers which want us to pay them 18 cents a kilowatt (50% increase).
We all understand solar is good, and we understand Florida is the sunshine state. But we also understand the owners of FP&L, Progress (soon to be be Duke) and the private energy developers are out of staters (yawkeeees) and we have more levelerage with the IOU's which mean it will cost less over time.

When the out of staters (yawkeeees) can build it for what i pay now i will back them. but until that moment they can perfect their trade out west where energy cost is 18cents per kilowatt.

Florida uses more energy per household that Califorina, because of our Heat (air conditioner). We'll be last on this renewable bandwagon, because we'll have to pay more that the rest of states per house hold.

Could luck on persuading us to pay more that other states (per household) Yawkeeee.
Florida Resident
11:49AM APR 1ST 2011
I don't see how the Tea Party can complain. The utilities bought and paid for the legislature fair and square, and they are entitled to take what they want, which is control of energy policy. The people of Florida have no role in this except to pay the bills. That's the way it works. Get used to it.
LDouglas
6:17AM APR 1ST 2011
Well said Mr. Dobson. SB 7082 sounds like a perfect example of capitalism being stomped out by corporatism. I hope the Legislature (our politicians) come to their senses and don't allow it to pass. If they don't, let's hope Governor Scott vetoes it and the voters remember it.
Dale
6:38AM APR 1ST 2011
This IS capitalism.....Florida Laws...and the people that make then are the BEST YOU CAN BUY !!!!!!!!
LDouglas
12:27PM APR 1ST 2011
I suppose that's ultimately true. The trouble though is that corporations are cannabilistic by nature and sooner or later will have no one to eat but the shareholders.