Electric Utility Regulation, Energy Needs and Emerging Issues. Florida Energy Systems Consortium Summit

Transcription

1 Electric Utility Regulation, Energy Needs and Emerging Issues Presentation to the: Florida Energy Systems Consortium Summit Mark Futrell Office of Strategic Analysis and Governmental Affairs Florida Public Service Commission September 29, 2009

2 Outline Background on Electric Utility Regulation in Florida Current Forecast of Energy Needs Current & Emerging Issues 2

3 Background on Electric Utility Regulation in Florida 3

4 Utility Regulation in Florida or What does the PSC do? Implements Florida Statutes to ensure that consumers receive electric, natural gas, telephone, water, and wastewater services in a safe, affordable, and reliable manner Exercises regulatory authority over utilities in: rate base/economic regulation competitive market oversight monitoring of safety, reliability, and service issues Handles complaints and inquiries related to: service reliability billing accuracy service requests compliance with safety standards 4

5 Electric Industry Authority Economic regulation over rates and quality of service of investor-owned electric utilities More limited rate structure authority over municipal and rural co-opop utilities Authority over grid reliability If inadequacies exist, the FPSC may order the installation or repair of generating plants or transmission line, with the costs to be distributed in proportion to the benefits received Determines need for new steam power plants greater than 75 MWs and transmission lines greater than 240 kv that cross county lines, and > 15 miles Annual review of Ten-Year Site Plans 5

6 Electric Industry Authority Authority to determine energy efficiency goals for IOUs and two municipal electric utilities Determines the buy back rates for eligible non-utility generators and distributed generators such as biomass and solar Resolution of service area agreements and disputes Safety inspections of transmission and distribution facilities Handles complaints and inquiries related to: service reliability billing accuracy service requests compliance with safety standards 6

7 Current Forecast of Energy Needs 7

8 Forecast of Future Energy Needs Approximately 4,000 megawatts of planned generating additions were removed from the 2009 Ten-Year Site Plans due to declining load forecasts Over the next 10 years, utilities expect 8,000 megawatts of energy efficiency i and demand-side management from customers. Despite these efforts utilities plan to add approximately 10,000 megawatts of generation to meet customer growth in electric demand. These additions will be met by natural gas-fired units with nuclear making up the bl balance in the long-term. Dependency on natural gas will increase from approximately 40% in 2008 to 47% in

9 Historical Summer Peak Demand Forecasts ,000 59,000 57,000 55,000 53,000 51,000 49,000 47,000 45,

10 Delivered Cost of Coal, Natural Gas and Petroleum to Florida Electric Utilities Dollars pe er Million Bt tu $15.00 $14.00 $13.00 $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 Coal Gas Petroleum Source: U.S. DOE/EIA, Electric Power Monthly; Cost and Quality of Fuels for Electric Plants. 10

11 Average Residential Electric Bill $/1,000 kwh Residential Bill Nominal Real 11

12 Electric Generating Capacity Existing and Planned ,000 10,000 15,000 20,000 25,000 30,000 Combined Cycle 16,915 25,776 NG Combustion Turbine 4,193 6,323 Steam 1, Coal Steam IGCC ,824 11,313 Oil Combustion Turbine Steam 2,607 2,466 5,835 8,332 Nuc Steam 3,915 7,753 r Purchased Power IPP Interchange Non-Utility Generator Renewables 1,858 1, ,964 2, ,852 Existing Planned 12

13 Electric Generation by Fuel Type % 28.7% % 11.6% 13.7% 34.8% 13.3% 16.8% 16.9% 40.4% Natural Gas Nuclear Coal Oil Other 3.4% 0.6% % 26.4% 21.8% 13

14 Current & Emerging Issues 14

15 Current & Emerging Issues Renewable Portfolio Standard Draft PSC rule subject to ratification by the Legislature Federal Renewable Electricity Standard/Energy Efficiency Standard Energy Efficiency & Demand-Side Management Goals Commission decision scheduled for October 27, 2009 Growth in Distributed Resources Smart Grid Greenhouse Gas Emission Regulations 15