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