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Overview of Floridas DSM Accomplishments and Goal Setting Process Presentation to the: Florida Public Service Commission Workshop on Energy Efficiency.

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Presentation on theme: "Overview of Floridas DSM Accomplishments and Goal Setting Process Presentation to the: Florida Public Service Commission Workshop on Energy Efficiency."— Presentation transcript:

1 Overview of Floridas DSM Accomplishments and Goal Setting Process Presentation to the: Florida Public Service Commission Workshop on Energy Efficiency Initiatives November 29, 2007 Tom Ballinger Division of Economic Regulation Florida Public Service Commission

2 Three Components of Peak Load New customers + Increase in average house size + Increase in appliance saturation - Demand-side management programs = peak load that must be served. –As long as Florida continues to grow, utilities must serve all who arrive. Currently, approximately 1,000 new people each day. –Since 1986, the average house size has increased approximately 30%. –Since 1986, the use of some appliances (i.e. microwave ovens, VCRs, dishwashers, and personal computers) has more than doubled. As growth continues, energy efficiency becomes more important. Utilities should continue to: –educate new customers on the benefits of energy efficiency, –provide input to possible improvements to building code and appliance efficiency standards, and –explore new energy efficiency/DSM measures and programs.

3 Florida Energy Efficiency and Conservation Act (FEECA) Section , Florida Statutes Enacted in 1980 Emphasis on reducing the growth rates of peak demand, reducing and controlling the growth rates of electricity consumption Required the PSC to adopt goals related to the conservation of electric energy Authorized the PSC to require each utility to develop plans and implement cost-effective programs for increasing energy efficiency and conservation within its service area Provides for recovery of program costs

4 Florida Energy Efficiency and Conservation Act (FEECA) Amended in 1989 –Size threshold – only utilities with sales > 500 gWh –12 utilities comprising 94% of sales were subject to FEECA Amended in 1996 –Size threshold for municipals and cooperatives with sales of 2,000 gWh or greater on July 1, 1993 –Utilities subject to FEECA: FPL, PEF, TECO, Gulf, FPUC, JEA, OUC –Comprises 86% of sales

5 PSC Implementation of FEECA Rules requiring numeric goals for each FEECA utility –Annual winter, summer demand and energy reduction goals –Goals revised every five years After goals are approved, DSM plans and programs submitted for review Programs must be cost-effective –Exception – energy audits required by FEECA Energy Conservation Cost Recovery (ECCR) Clause An annual public hearing is conducted to review IOU program costs and set a rate applied to all customer bills

6 DSM Program Achievements Impact of DSM on Winter Peak Demand State of Florida

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8 Floridas Electric Industry Investor-Owned Electric Utility Conservation Expenses

9 Residential DSM Program Bill Impacts 2006 Conservation Cost Recovery Factor (cents per kWh) Typical Residential Monthly Bill Impact (based on 1,000 kWh) Florida Power and Light Company.142$1.42 Gulf Power Company.088$0.88 Progress Energy Florida, Inc..169$1.69 Tampa Electric Company.076$0.76

10 Timelines for Past Goal Setting Proceedings 1995 Goals 2000 Goals 2005 Goals Workshop – 10/ /1997& 1/ /2004 Goals Filed – 02/ / /2004 Hearing – 06/1994 (7days) 08/1999 (Stipulation) Agenda – 04/ /2005 (PAA) Total 19 months 23 months 11 months * Plan to start 2010 Goal proceeding in late spring 2008


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