PSC chills prospects in Florida

The climate for cogeneration in Florida is growing progressively worse from the standpoint of PURPA implementation. This is due in large measure to the regulatory contraints, uncertainty, and unfavorable policy imposed by the Florida Public Service Commission (FPSC). The future of cogeneration in Florida is, by default, entirely in the hands of the FPSC. The Florida Legislature has avoided dealing with the issue in a meaningful way. In fact, the only time cogeneration or small power production are even mentioned in the Florida statutes is in the single sentence vesting the FPSC with authority to set rates at which utilities are to purchase electricity from cogenerators. It appears that unless the Legislature takes an active role in directing the activities of the FPSC, the prospects for cogeneration in Florida will become increasingly poor. The author says, this conclusion is based on a number of recent decisions issued by the FPSC on cogeneration matters, and the general FPSC approach, which appears to include a presumption that ratepayers and the utility industry must be protected from this creation of Federal law - the cogeneration industry. Further, the FPSC simply has not acknowledged the true potential cogeneration nor has it recognized cogeneration asmore » a true alterative to electric-utility generation and conventional generating plant construction.« less