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Politics

PSC Chairman Urges Caution on Expensive Renewable-Fuel Programs

September 19, 2011 - 6:00pm

Pointing to tough economic times for consumers, the chairman of the Florida Public Service Commission cautioned Tuesday about being "overly aggressive" in adding renewable energy.

Art Graham told a House panel he thinks the state needs to move forward with renewable energy, which could include sources such as solar power and biomass, but that people do not want to pay higher utility bills now.

"It's a great thing,'' Graham said. "Florida needs to get there.But it's costly.''

But some lawmakers questioned the utility regulator, pointing in part to extra costs that residents and businesses already pay for new nuclear-power plants that are not expected to start operating for another decade.

"We're way behind other states (in renewable energy),'' said Rep. Jeff Clemens, D-Lake Worth.

Pensacola Republican Clay Ingram, however, backed Graham's position. "I thought your comments were very common-sense,'' he said.

The back-and-forth about renewable energy came as the House Energy and Utilities Subcommittee held its first meeting in advance of the 2012 legislative session.

Lawmakers in recent years have repeatedly considered ideas about encouraging the use of renewable energy as an alternative to burning coal and natural gas in power plants. Advocates say more renewable energy would help reduce the state's dependence on fossil fuels, add jobs and also limit emissions that many argue are responsible for climate change.

But solar power, for example, has higher costs than natural gas or coal, when the electric-generating capacity is considered. Ultimately, consumers pay the costs of power projects.

Rep. Scott Plakon, a Longwood Republican who was recently named chairman of the subcommittee, did not offer an opinion about the renewable-energy issue.

Plakon, however, is openly skeptical about one of the arguments involved in the issue -- that humans are causing climate change. Plakon is seeking to repeal a law that could lead to what is known as a "cap-and-trade" system, which would place new limits on power-plant emissions.

The chairman pointed to what he called "questionable science,'' but Susan Glickman, a lobbyist for the Southern Alliance for Clean Energy, said the overwhelming scientific consensus is that man-made emissions are causing climate change.

"There is not great scientific disagreement,'' Glickman said.

As the 2012 session nears, the PSC faces a number of issues that could include large costs for consumers. Those issues include a proposed base-rate increase for Gulf Power, proposals by Florida Power & Light and Progress Energy Florida to pass along about $335 million in costs next year for the planned nuclear plants and a likely major repair job at Progress's Crystal River nuclear plant.

While Graham did not comment about the pending nuclear cases, he made clear he supports nuclear power. He said nuclear plants are cheaper to run than other types of plants --- though nuclear plants have large upfront costs.

Also, Graham urged greater efforts at energy conservation. He said that could involve such steps as people moving to energy-efficient LED light bulbs.

"Conservation is the low-hanging fruit,'' he said. "That's where I think you're going to get the biggest bang for your buck currently.''

While Graham urged caution about renewable energy, the PSC later Tuesday approved a plan by Progress Energy Florida to buy electricity from a proposed biomass plant that will use wood as a fuel. The plant is expected to supply energy for about 10,000 homes, the PSC said.

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