Case Background
Rule 25-6.0183,
Florida Administrative Code (F.A.C.), Electric Utility Procedures for
Generating Capacity Shortage Emergencies, informs the Florida Emergency
Operations Center and electric utilities of the Florida Reliability
Coordinating Council, Inc.’s Generating Capacity Shortage Plan. As a result of
several regulatory changes, as well as other developments within the Florida
Reliability Coordinating Council, Inc. (FRCC), the July 2007 FRCC Plan has been updated effective December 15,
2016. These revisions align the 2016 Plan with current terminology and federal
reliability standards that address capacity issues.
The rule
implements Section 366.04(2)(c),(f), and (5) Florida Statutes, (F.S.). Section 366.04(2)(c), F.S., grants the
Commission power over electric utilities for the purpose of requiring electric
power conservation and reliability within a coordinated grid, for operational
as well as emergency purposes. Section
366.04(2)(f), F.S., grants the Commission power to prescribe and require the
filing of periodic reports and other data as may be reasonably available and as
necessary to exercise its jurisdiction.
Section 366.04(5), F.S., grants the Commission jurisdiction over the
planning, development, and maintenance of a coordinated electric power grid to
assure an adequate and reliable source of energy, and avoid further uneconomic
duplication of generation, transmission, and distribution facilities.
Staff initiated
this rulemaking to update the rule so that the FRCC Plan effective December 15,
2016 is referenced in Rule 25-6.0183, F.A.C.
The Commission’s Notice of Development of Rulemaking was published in
the Florida Administrative Register on November 16, 2016, in Volume 42, No. 223. There were no requests for a rule development
workshop, and no workshops were held. No
comments from interested parties were received.
This
recommendation addresses whether the Commission should propose the amendment of
Rule 25-6.0183, F.A.C. The Commission has jurisdiction pursuant to Section
120.54, F.S., and Section 366.05, F.S.
Discussion
of Issues
Issue 1:
Should the Commission propose the amendment of Rule
25-6.0183, F.A.C.?
Recommendation:
Yes. The
Commission should propose the amendment of Rule 25-6.0183, F.A.C. as set forth
in Attachment A.
Staff Analysis:
The Florida Reliability Coordinating Council (FRCC) is a
nonprofit company incorporated in the state of Florida whose mission is to
promote and assure the reliability of the bulk power system in peninsular
Florida east of the Apalachicola River. FRCC also serves as the regional entity
with delegated authority from The North American Electric Reliability
Corporation (NERC) for the purpose of proposing and enforcing reliability
standards within the FRCC Region. The
update of the 2007 FRCC Plan restructures the plan into a new format and aligns
it with the NERC Reliability Standards.
The FRCC Plan establishes guidelines and summarizes
procedures to be used by Florida’s electric utilities and governmental agencies
in response to generating capacity shortages that impact or threaten to impact
significant numbers of customers. The
Commission acts as an informational liaison to all interested parties.
The FRCC Plan addresses energy emergencies caused by a
generating capacity shortage. It is
designed to provide a coordinated response to various communications,
environmental, legal, political and technical concerns which may arise on a state-wide
basis during a generating capacity shortage and to minimize impacts of
shortages on the people of Florida.
Staff recommends the amendment of Rule 25-6.0183, F.A.C., to
incorporate by reference the December 15, 2016 FRCC Plan. Below is a more
detailed explanation of the December 15, 2016 FRCC Plan.
The December 15, 2016 FRCC Plan
The December 15, 2016 FRCC Plan documents and summarizes procedures
to be used by Florida’s electric utilities and governmental agencies in
response to generating capacity shortages which impact or threaten to impact
significant numbers of customers. It reflects
current FRCC committee structures and current staff responsibilities and assigns
primary monitoring and implementation of the plan to the FRCC Reliability
Coordinator function.
Weather Triggers Which Cause the Issuance of an
Advisory
An important revision in the 2016 FRCC Plan is the redefinition
of the weather triggers that serve as the basis for the FRCC to issue Generating
Capacity Advisories. During the last three years, the FRCC has issued nine
Generating Capacity Advisories due to temperature triggers (six advisories for
summer and three for winter temperatures). There was consistently more than an adequate
generating capacity margin throughout all nine of the advisory periods.
Because of the sufficient capacity margin during these
nine advisory periods, the 2016 FRCC Plan eliminates summer temperature
triggers and reduces the number of winter temperature cities from seven cities
to three. Because of potential system loads during extreme and sustained cold
weather periods, the FRCC does retain the ability to issue Generating Capacity
Advisories based on winter temperature triggers.
Energy Emergency Alerts
The 2016 FRCC Plan redefines the Energy Emergency Alert
levels by clarifying the criteria associated with three types of Energy
Emergency Alerts. Levels one, two and three now contain criteria for increasingly
higher emergency alerts as set forth in Attachment A. The earlier 2007 Plan contained only one
alert level. The revised alerts range in
sequence from Alert 1 for situations in which the FRCC Operating Margin is less
than 1.5 times the current Most Severe Single Contingency, up to an Energy Emergency
Alert-3 during which a utility is planning to or is implementing Firm Load
reductions due to inadequate generating capacity. An Energy Emergency Alert-0
is issued when utility firm load reductions are discontinued and load and
Operating Reserve requirements are being met.
Information to the News Media
The 2016 FRCC Plan establishes that information concerning
generating capacity shortages shall be specifically provided to local news
media by each individual electric utility. This change will promote direct
communication between the electrical utilities and the media and enable the
media to efficiently and correctly disseminate the information provided by the electric
utilities.
Statement of Estimated Regulatory Costs
Pursuant to Section 120.54, F.S., agencies are encouraged
to prepare a statement of estimated regulatory costs (SERC) before the
adoption, amendment, or repeal of any rule.
The SERC is appended as Attachment B to this recommendation. The SERC analysis includes whether the rule
amendment is likely to have an adverse impact on growth, private sector job
creation or employment, or private sector investment in excess of $1 million in
the aggregate within five years after implementation.
The SERC concludes that the rule amendment will not likely
directly or indirectly increase regulatory costs in excess of $200,000 in the
aggregate in Florida within one year after implementation. The SERC states any additional transactional
costs, if any, which potentially may result from staff’s recommended rule
amendment to incorporate the 2016 FRCC Generating Capacity Shortage Plan, are
expected to be de minimis. FRCC
represented that the 2016 plan has been approved for use by utilities within
the FRCC. No regulatory alternatives
were submitted pursuant to paragraph 120.541(1)(a), F.S. None of the impact cost/criteria
established in paragraph 120.541(2)(a), F.S., will be exceeded as a result of
the recommended revisions.
Conclusion
Based on the foregoing, staff recommends the Commission
propose the amendment of Rule 25-6.0183, F.A.C.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. If no
requests for hearing or comments are filed, the rule may be filed with the
Department of State, and this docket should be closed. (Page)
Staff Analysis:
If no requests for hearing or comments are filed,
the rule may be filed with the Department of State, and this docket should be
closed.
25-6.0183 Electric
Utility Procedures for Generating Capacity Shortage Emergencies.
The Commission adopts the Florida Reliability Coordinating
Council’s Generating Capacity Shortage Plan, dated December 15, 2016 July
2007, which is hereby incorporated by reference into this rule and may
be accessed at [Dep’t. of State hyperlink] as the Commission’s plan to
address generating capacity shortage emergencies within Florida. A copy of
the Generating Capacity Shortage Plan may be obtained from the Director,
Division of Engineering, Florida Public Service Commission.
Rulemaking Authority
350.127(2), 366.05 FS. Law Implemented 366.04(2)(c), (f), (5) FS. History–New
2-12-91, Amended 3-19-98, 4-27-03, 5-1-08, ____________.
