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       Florida Senate - 2010                                    SB 1086
       By Senator Detert
       23-00628-10                                           20101086__
    1                        A bill to be entitled                      
    2         An act relating to renewable energy; amending s.
    3         366.91, F.S.; requiring that a purchase contract
    4         offered to producers of renewable energy contain
    5         payment provisions for energy and capacity based upon
    6         a public utility’s equivalent cost-recovery rate for
    7         certain clean energy projects rather than the
    8         utility’s full avoided costs; providing an effective
    9         date.
   11  Be It Enacted by the Legislature of the State of Florida:
   13         Section 1. Subsection (3) of section 366.91, Florida
   14  Statutes, is amended to read:
   15         366.91 Renewable energy.—
   16         (3) On or before January 1, 2006, each public utility must
   17  continuously offer a purchase contract to producers of renewable
   18  energy. The commission shall establish requirements relating to
   19  the purchase of capacity and energy by public utilities from
   20  renewable energy producers and may adopt rules to administer
   21  this section. The contract shall contain payment provisions for
   22  energy and capacity which are based upon the utility’s
   23  equivalent cost-recovery rate for projects constructed pursuant
   24  to s. 366.92(4) full avoided costs, as defined in s. 366.051;
   25  however, capacity payments are not required if, due to the
   26  operational characteristics of the renewable energy generator or
   27  the anticipated peak and off-peak availability and capacity
   28  factor of the utility’s avoided unit, the producer is unlikely
   29  to provide any capacity value to the utility or the electric
   30  grid during the contract term. Each contract must provide a
   31  contract term of at least 10 years. Prudent and reasonable costs
   32  associated with a renewable energy contract shall be recovered
   33  from the ratepayers of the contracting utility, without
   34  differentiation among customer classes, through the appropriate
   35  cost-recovery clause mechanism administered by the commission.
   36         Section 2. This act shall take effect July 1, 2010.

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