Florida Public Service Commission native order document 09137-2024

Order No. PSC-2024-0431-FOF-EGFlapubserv

Gesamter Gesetzestext

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Commission review of numeric
conservation goals (Florida Public Utilities
Company).
DOCKET NO. 20240015-EG
ORDER NO. PSC-2024-0431-FOF-EG
ISSUED: September 20, 2024
The following Commissioners participated in the disposition of this matter:
MIKE LA ROSA, Chairman
ART GRAHAM
GARY F. CLARK
ANDREW GILES FAY
GABRIELLA PASSIDOMO
FINAL ORDER APPROVING NUMERIC CONSERVATIONS GOALS
FOR FLORIDA PUBLIC UTILITIES COMPANY
APPEARANCES:
BETH KEATING, ESQUIRE, Gunster, Yoakley & Stewart, P.A., 215 South
Monroe Street, Suite 601, Tallahassee, Florida 32301
On behalf of Florida Public Utilities Company (FPUC).
SEAN T. GARNER, ERIK SAYLER and KELLY WRIGHT, ESQUIRES,
Florida Department of Agriculture & Consumer Service, Office of General
Counsel, The Mayo Building, 407 S. Calhoun Street, Suite 520, Tallahassee,
Florida 32399-0800
On behalf of Florida Department of Agriculture & Consumer Services (FDACS).
STEPHANIE U. EATON, ESQUIRE, Spilman, Thomas & Battle, PLLC, 110
Oakwood Drive, Suite 500, Winston-Salem, North Carolina 27103
STEVEN W. LEE, ESQUIRE, Qualified Representative, Spilman, Thomas &
Battle, PLLC, 1100 Bent Creek Blvd., Suite 101, Mechanicsburg, Pennsylvania
17050
On behalf of Walmart, Inc. (Walmart).
JACOB IMIG, JON RUBOTTOM, and ADRIA HARPER, ESQUIRES, Florida
Public Service Commission, 2540 Shumard Oak Boulevard, Tallahassee, Florida
32399-0850
On behalf of the Florida Public Service Commission (Staff).
ORDER NO. PSC-2024-0431-FOF-EG
DOCKET NO. 20240015-EG
PAGE 2
MARY ANNE HELTON, ESQUIRE, Deputy General Counsel, Florida Public
Service Commission, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-
0850
Advisor to the Florida Public Service Commission.
KEITH C. HETRICK, ESQUIRE, General Counsel, Florida Public Service
Commission, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850
Florida Public Service Commission General Counsel
BY THE COMMISSION:
Background
Enacted in 1980, Sections 366.80 through 366.83, and 403.519, Florida Statutes (F.S.),
are known collectively as the Florida Energy Efficiency and Conservation Act (FEECA).
FEECA requires us to adopt appropriate goals to increase the efficiency of energy consumption
and, pursuant to Section 366.82(6), F.S., we must review the goals of each utility subject to
FEECA at least every five years.
The six electric utilities subject to FEECA, collectively known as the FEECA Utilities,
are Florida Power & Light Company (FPL), Duke Energy Florida, LLC (DEF), Tampa Electric
Company (TECO), Florida Public Utilities Company (FPUC), JEA, and Orlando Utilities
Commission (OUC). Pursuant to Rule 25-17.0021 Florida Administrative Code (F.A.C.),
numeric goals were last established for the FEECA Utilities by Order No. PSC-19-0509-FOF-
EU, issued November 26, 2019. Therefore, new goals must be established by January 2025.
By Order No. PSC-2024-0022-PCO-EG , issued February 28, 2024, the dockets for each
of the FEECA Utilities were consolidated for purposes of hearing and controlling dates and a
tentative list of issues was established.
We acknowledged the intervention of the Florida Department of Agriculture and
Consumer Services (FDACS) on April 24, 2024.1 Walmart Inc. (Walmart) was granted leave to
intervene on April 30, 2024.2
Pursuant to Notice and in accordance with Rule 28-106.209, F.A.C., a hearing was held
on August 8, 2024, in Tallahassee, Florida, before the above commissioners.
1 Order No. PSC-2024-0128-PCO-EG.
2 Order No. PSC-2024-0138-PCO-EG.
ORDER NO. PSC-2024-0431-FOF-EG
DOCKET NO. 20240015-EG
PAGE 3
Decision
Legal Background
FEECA directs us to promote four key priorities: (1) reducing and controlling the growth
rates of weather-sensitive peak demand and electricity usage, (2) increasing the efficiency and
cost-effectiveness 	of 	the 	production 	and 	consumption 	of 	electricity 	and 	natural 	gas, 	(3)
encouraging demand-side renewable energy systems, and (4) conserving expensive resources,
particularly petroleum fuel.3 The Legislature emphasized that it is critical to utilize “efficient and
cost-effective” conservation systems.4 Section 366.82, F.S., bifurcates our responsibility under
FEECA into two separately docketed proceedings. First, in the goalsetting dockets, we must
establish appropriate goals for increasing the efficiency of energy consumption and increasing
the development of demand-side renewable energy systems. Following the adoption of goals, in
the plan approval dockets, each FEECA Utility must file plans and programs to meet the goals
within its service area. The present docket was opened to address the first, goalsetting portion of
our FEECA proceedings for FPUC.
FEECA requires that we establish goals designed to increase the conservation of
expensive resources, such as petroleum fuels; reduce and control the growth rates of electric
consumption; reduce the growth rates of weather-sensitive peak demand; and encourage
development of demand-side renewable energy resources.5 Section 366.82(3), F.S., prescribes
the following criteria for our evaluation of the conservation goals:
In developing the goals, the commission shall evaluate the full technical potential
of 	all 	available 	demand-side 	and 	supply-side 	conservation 	and 	efficiency
measures, including demand-side renewable energy systems. In establishing the
goals, the commission shall take into consideration:
(a) 	The costs and benefits to customers participating in the measure.
(b) 	The costs and benefits to the general body of ratepayers as a whole,
including utility incentives and participant contributions.
(c) 	The need for incentives to promote both customer-owned and utility-owned
energy efficiency and demand-side renewable energy systems.
(d) 	The costs imposed by state and federal regulations on the emission of
greenhouse gases.
We implement FEECA for electric utilities through Rule 25-17.0021, F.A.C. Pursuant to
that rule, for each FEECA Utility, we establish annual kilowatt (KW) and kilowatt-hour (KWh)
goals for Residential and Commercial/Industrial customer classes.6 The goals are based on (1) an
assessment of the technical potential of available conservation and efficiency measures, and (2)
an estimate of the total cost-effective KW and KWh savings reasonably achievable through
3 See Sections 366.81-366.82, F.S.
4 Section 366.81, F.S.
5 Section 366.82(2), F.S.
6 Rule 25-17.0021(1), F.A.C.
ORDER NO. PSC-2024-0431-FOF-EG
DOCKET NO. 20240015-EG
PAGE 4
demand-side management (DSM) programs in each utility’s service area over a ten-year period.7
The goals we establish are annual targets for conservation, with KW goals relating to seasonal—
summer and winter—demand savings, and annual KWh goals relating to annual energy savings.
Following the last goalsetting proceedings in 2019, after receiving feedback from the
utilities, intervenors, and interested persons, we amended Rule 25-17.0021, F.A.C., to streamline
our FEECA process by requiring utilities to file potential conservation programs along with their
proposed goals. This allows us to analyze the utilities’ proposed goals based upon energy
(KWH) and demand (KW) savings from customer participation in potential programs it plans to
implement, thus giving us better information as to the appropriateness of the goals. Thus,
although utility conservation plans and the underlying programs and measures to implement
those plans are not approved at this time, each utility must include sufficient information related
to the cost-effectiveness of its potential DSM programs to support the appropriateness of its
proposed goals.8
Analysis
Pursuant to Section 366.82, F.S., we must evaluate whether the goals requested by FPUC
are appropriate. Pursuant to the Prehearing Order, Order No. PSC-2024-0293-PHO-EG, issued
August 2, 2024, a final list of issues was established for the consolidated hearing. Issues 1-7
address whether each utility, in developing its proposed goals, adequately addressed the
considerations prescribed by statute and Commission rule. Issue 8 addresses, for the purpose of
establishing goals for rate-regulated utilities, whether we should consider changing credit levels
for demand response programs in the FEECA goalsetting proceedings or in their base rate
proceedings. Because FPUC has no such demand response programs, Issue 8 was moot for
FPUC. Issues 9-11 were specific only to FPL’s docket and thus not at issue for FPUC. Issues 12
and 13 are the ultimate issues addressing, in light of the preceding issues, what conservation
goals we should establish for FPUC as required by Section 366.82, F.S.
Following a robust discovery process, we were presented with a series of proposed Type
II stipulations,9 set forth below in Attachment A, that fully resolved all issues in this docket.
FPUC supported the stipulations, Walmart and FDACS took no position on all issues, and
Commission staff recommended approval of the proposed stipulations. We approved the
proposed stipulations by a bench vote at the August 8, 2024, hearing.
We find that each of the stipulations are supported by evidence in the record. We also
find that the testimony and exhibits in the record adequately address the statutory considerations
required by Section 366.82(3), F.S., and demonstrate that the goals stipulated for Issues 12 and
7 Id.
8 Section 366.82 (7) F.S., addresses how we must evaluate and approve the utilities’ plans to implement the
Commission-established goals during the subsequent plan approval proceeding.
9 A Type II stipulation is one in which the utility and Commission staff, or the utility and at least one party
adversarial to the utility, agree on the resolution of an issue, and the remaining parties (including staff if they do not
join in the agreement) do not object to the Commission relying on the agreed language to resolve that issue in a final
order.
ORDER NO. PSC-2024-0431-FOF-EG
DOCKET NO. 20240015-EG
PAGE 5
13, as set forth in Attachments A and B, will increase the conservation of expensive resources,
such as petroleum fuels; reduce and control the growth rates of electric consumption; reduce the
growth rates of weather-sensitive peak demand; and encourage development of demand-side
renewable energy resources. In particular, we found the testimony and exhibits of FPUC
witnesses Jim Herndon and Derrick Craig, as well as the discovery responses provided by FPUC,
support our finding that the stipulated goals are reasonable and consistent with the requirements
of Section 366.82, F.S., and Rule 25-17.0021, F.A.C. For these reasons, we find the stipulated
goals to be appropriate.
Conclusion
The 	stipulations 	listed in 	Attachment 	A 	address 	all 	the 	requirements 	of 	FEECA
enumerated in Section 366.82, F.S., and satisfy the requirements of Rule 25-17.0021, F.A.C.
Further, the conservation goals stipulated in Issues 12 and 13 are appropriate to advance the
priorities of FEECA. Therefore, the goals stipulated in Issues 12 and 13 are adopted for FPUC
for the period 2025-2034.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that the stipulations, findings, and
rulings herein are hereby approved. 	It is further
ORDERED that Florida Public Utilities Company shall abide by the stipulations,
findings, and rulings herein. 	It is further
ORDERED that Florida Public Utilities Company’s residential and commercial/industrial
summer and winter MW and annual gigawatt-hour (GWh) goals are adopted as set forth in
Tables 1-3 of Attachment B. 	It is further
ORDERED that Florida Public Utilities Company should continue to implement the
provisions of Rule 25-6.065, F.A.C., Interconnection and Net Metering of Customer-Owned
Renewable Generation, as an appropriate means to encourage the development of demand-side
renewable energy. It is further
ORDERED that this docket shall be closed after the time for filing an appeal has run.
ORDER NO . PSC-2024-0431-FOF- EG
DOCKET NO. 202400 15- EG
PAGE6
By ORDER of the Florida Public Serv ice Commission this 20th day of September, 2024.
JDl/j hr
Flor id a Public Service Comm ission
2540 Shumard Oak Bo ul evard
Tal lahassee, Florida 32399
(850) 4 13-6770
www.flo rid apsc.com
Copies furn ished: 	A copy of t hi s docume nt is
provided to the pa rt ies of record at the t im e of
issuance and, if app li cable, interested perso ns.
ORDER NO. PSC-2024-0431-FOF-EG
DOCKET NO. 20240015-EG
PAGE 7
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW
The Florida Public Service Commission is required by Section 120.569(1), Florida
Statutes, to notify parties of any administrative hearing or judicial review of Commission orders
that is available under Sections 120.57 or 120.68, Florida Statutes, as well as the procedures and
time limits that apply. 	This notice should not be construed to mean all requests for an
administrative hearing or judicial review will be granted or result in the relief sought.
Any party adversely affected by the Commission's final action in this matter may request:
1) reconsideration of the decision by filing a motion for reconsideration with the Office of
Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, within
fifteen (15) days of the issuance of this order in the form prescribed by Rule 25-22.060, Florida
Administrative Code; or 2) judicial review by the Florida Supreme Court in the case of an
electric, gas or telephone utility or the First District Court of Appeal in the case of a water and/or
wastewater utility by filing a notice of appeal with the Office of Commission Clerk, and filing a
copy of the notice of appeal and the filing fee with the appropriate court. 	This filing must be
completed within thirty (30) days after the issuance of this order, pursuant to Rule 9.110, Florida
Rules of Appellate Procedure. 	The notice of appeal must be in the form specified in Rule
9.900(a), Florida Rules of Appellate Procedure.
ORDER NO. PSC-2024-0431-FOF-EG
DOCKET NO. 20240015-EG 	ATTACHMENT A
PAGE 8
FPUC – Docket 20240015-EG
The parties have agreed to Type II stipulations for all issues as follows:
ISSUE 1: 	Are the utility’s proposed goals based on an adequate assessment of the full
technical potential of all available demand-side and supply-side conservation
and efficiency measures, including demand-side renewable energy systems?
Yes. The utility’s proposed goals are based on an assessment of the full technical potential of all
available demand-side and supply-side conservation and efficiency measures as required by
Section 366.82(3), F.S.
ISSUE 2: 	Are the utility’s proposed goals based on savings reasonably achievable
through demand-side management programs over a ten year period?
Yes. The utility’s proposed goals are based on savings reasonably achievable through demand-
side management programs over the period 2025-2034 as required by Rule 25-17.0021(1)(b),
F.A.C.
ISSUE 3: 	Do the utility’s proposed goals adequately reflect the costs and benefits to
customers participating?
Yes. The utility’s proposed goals reflect the costs and benefits to customers of the proposed
programs as required by Section 366.82(3)(a), F.S.
ISSUE 4: 	Do the utility’s proposed goals adequately reflect the costs and benefits to the
general body of rate payers as a whole, including utility incentives and
participant contributions?
Yes. The utility’s proposed goals reflect the costs and benefits of the proposed programs to the
general body of ratepayer as a whole as required by Section 366.82(3)(b), F.S.
ISSUE 5: 	Do the utility’s proposed goals adequately reflect the need for incentives to
promote 	both 	customer-owned 	and 	utility-owned 	energy 	efficiency 	and
demand-side renewable energy systems?
Yes. The proposed goals reflect the need for incentives as required by Section 366.82(3)(c), F.S.
ISSUE 6: 	Do the utility’s proposed goals adequately reflect the costs imposed by state
and federal regulations on the emissions of greenhouse gases?
Yes. There are no current costs imposed by state and federal regulations on the emission of
greenhouse gases to consider as required by Section 366.82(3)(d), F.S.
ORDER NO. PSC-2024-0431-FOF-EG
DOCKET NO. 20240015-EG 	ATTACHMENT A
PAGE 9
ISSUE 7: 	Do the utility’s proposed goals appropriately reflect consideration of free
riders?
Yes. The utility’s proposed goals reflect consideration of free riders in their program design as
required by Rule 25-17.0021(3), F.A.C.
ISSUE 8: 	Should demand credit rates for interruptible service, curtailable service,
stand-by generation, or similar potential demand response programs be
addressed in this proceeding or in the base rate proceedings for the rate
regulated FEECA Utilities? If this proceeding, what demand credit rates are
appropriate for purposes of establishing the utilities’ goals?
Demand credits are not included in FPUC’s proposed goals, and therefore this issue is moot.
ISSUE 12: 	What residential and commercial/industrial summer and winter megawatt
(MW) and annual Gigawatt-hour (GWh) goals should be established for the
period 2025-2034?
The Commission should adopt the goals based on the studies by witness Herndon, and the
annual 	summer 	demand, 	winter 	demand, 	and 	annual 	energy 	savings 	should 	reflect 	the
residential and commercial/industrial subtotals reflected on pages 3 and 4 of Exhibit JH-14.
ISSUE 13: 	What goals are appropriate for increasing the development of demand-side
renewable energy systems?
The utility should continue to implement the provisions of Rule 25-6.065, F.A.C., Interconnection
and Net Metering of Customer-Owned Renewable Generation. The rule is an appropriate means
to encourage the development of demand-side renewable energy.
ORDER NO. PSC-2024-0431-FOF-EG
DOCKET NO. 20240015-EG 	ATTACHMENT B
PAGE 10
Source: Exhibit 57 [Exh. JH-14]

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