October 27, 2020
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HB 1371

A bill to be entitled
2An act relating to renewable energy; amending s. 366.91,
3F.S.; requiring that a purchase contract offered to
4producers of renewable energy contain payment provisions
5for energy and capacity based upon a public utility's
6equivalent cost-recovery rate for certain clean energy
7projects rather than the utility's full avoided costs;
8providing an effective date.
10Be It Enacted by the Legislature of the State of Florida:
12     Section 1.  Subsection (3) of section 366.91, Florida
13Statutes, is amended to read:
14     366.91  Renewable energy.-
15     (3)  On or before January 1, 2006, each public utility must
16continuously offer a purchase contract to producers of renewable
17energy. The commission shall establish requirements relating to
18the purchase of capacity and energy by public utilities from
19renewable energy producers and may adopt rules to administer
20this section. The contract shall contain payment provisions for
21energy and capacity which are based upon the utility's
22equivalent cost-recovery rate for projects constructed pursuant
23to s. 366.92(4) full avoided costs, as defined in s. 366.051;
24however, capacity payments are not required if, due to the
25operational characteristics of the renewable energy generator or
26the anticipated peak and off-peak availability and capacity
27factor of the utility's avoided unit, the producer is unlikely
28to provide any capacity value to the utility or the electric
29grid during the contract term. Each contract must provide a
30contract term of at least 10 years. Prudent and reasonable costs
31associated with a renewable energy contract shall be recovered
32from the ratepayers of the contracting utility, without
33differentiation among customer classes, through the appropriate
34cost-recovery clause mechanism administered by the commission.
35     Section 2.  This act shall take effect July 1, 2010.

CODING: Words stricken are deletions; words underlined are additions.
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