Florida Public Service Commission Approves IOUs' Standard Offer Contracts

“Renewable energy plays an important role in achieving a more diverse fuel generation mix within the state,” said PSC Chairman Matthew M. Carter II. “Standard offer contracts make it easier for businesses that generate renewable energy to sell that energy to the investor-owned utilities and further diversify Florida’s energy portfolio.”

Since January 1, 2006, each investor-owned electric utility (IOU), as well as each municipal electric utility subject to the Florida Energy Efficiency and Conservation Act (FEECA), is required to offer to purchase capacity and energy from specific types of renewable sources. The contracts establish price, terms, and conditions that renewable generating facilities can accept without further negotiation. The contract must provide a term of at least ten years.

The Commission continues to develop policies to encourage renewable generation within the state. In addition to standard offer contracts, the Commission has approved negotiated power contracts for new renewable generators, conducted renewable portfolio standard workshops, and approved an expanded net metering and interconnection rule to include all renewable energy technologies. Currently, Florida has over 1,100 MW of renewable generation facilities that are fueled by biomass, hydroelectric sources, waste heat, landfill gas, and municipal solid waste.

The PSC is committed to making sure that Florida's consumers receive their electric, natural gas, telephone, water, and wastewater services in a safe, affordable, and reliable manner. The PSC exercises regulatory authority over utilities in the areas of rate base/economic regulation; competitive market oversight; and the monitoring of safety, reliability, and service.

For additional information, visit www.floridapsc.com.