Case Background
On October 2,
2017, Florida Power & Light Company (FPL) filed a petition for a one-year
extension of its Voluntary Solar Partnership (VSP) program and associated
tariff. The VSP program was first approved in Order No. PSC-14-0468-TRF-EI as a
pilot program that would terminate on December 31, 2017. The VSP program offers all FPL customers
an opportunity, for $9 per month, to participate voluntarily in a program
designed to contribute to the construction and operation of solar photovoltaic
generation facilities located in communities throughout FPL’s service
territory. Customers may enroll or cancel their enrollment at any time. FPL’s
proposed tariff revision, as shown in Attachment A to the recommendation,
changes the termination date for service under the VSP program from December
31, 2017 to December 31, 2018. The Commission approved similar community solar
tariffs for Gulf Power Company and Duke Energy Florida.
FPL waived the
60-day file and suspended provision of Section 366.06(3), Florida Statutes, (F.S.).
During the evaluation of the petition, staff issued a data request to FPL for
which a response was received on October 23, 2017. On November 27, 2017, FPL
filed an amended response to staff’s first data request No. 2 to correct
certain errors in the calculation. The Commission has jurisdiction in the
matter pursuant to Sections 366.05, 366.06, and 366.075, F.S.
Discussion
of Issues
Issue 1:
Should the Commission approve the one-year extension
of the VSP program?
Recommendation:
Yes. The Commission should approve the one-year
extension of the VSP program. (Doherty)
Staff Analysis:
The VSP program was approved as a voluntary pilot program
with customer enrollment beginning in January 2015. However, due to the time
needed for FPL to complete billing system modifications, the billing of VSP
program participants for the monthly $9 charge did not start until May 2015. A
one-year extension of the VSP program tariff will allow FPL to gather
additional data regarding the durability of customer interest over a more
substantial period of time.
FPL showed, in response to staff’s data request, that the
first 12 months of the VSP program experienced moderate participation growth,
with 2,734 participants (residential and commercial) enrolled by April 2016. In
July 2016, FPL implemented adjustments to improve the online enrollment process
which resulted in an increase in participants to 11,994 by the end of 2016. As
of August 31, 2017, 22,705 participants were enrolled in the VSP program. FPL
stated that, on average, the monthly new enrollments have more than offset the
number of participants who have elected to unsubscribe.
The VSP program was designed for FPL to use the voluntary
contributions to support the revenue requirement associated with constructing
and operating the solar facilities so that non-participants are not required to
subsidize the solar facilities. As shown in FPL’s amended response to staff’s
first data request No. 2, the voluntary contributions did not cover the revenue
requirement in 2015; however; for 2016 and 2017 FPL showed that the revenues
received under the VSP program are greater than the revenue requirement of the
solar facilities; thus, the net impact to all customers has been positive for
2016 and 2017.
As discussed in the order approving the VSP program, FPL
is sizing the solar projects based on the level of participation. FPL currently
has seven projects completed, 15 projects are under construction, and 20 projects
are ready for construction. FPL stated that the completed and planned solar
projects comprise a diverse set of assets, including ground-mount structures,
rooftop installations, covered walkways, parking canopies, and interactive
tree-like structures.
Conclusion
Staff agrees with FPL that a one-year extension of the
tariff will allow FPL to gather additional data regarding customer interest and
the long-term viability of the VSP program. At the end of pilot program, FPL
will petition the Commission regarding the future of the VSP program. FPL also
stated that it is currently developing, for Commission approval within the next
year, a new large scale solar program which would provide participants with
direct credits on their electric bill associated with the blocks of
solar-generated capacity purchased.
Issue 2:
Should this docket be closed?
Recommendation:
If Issue 1 is approved and a protest is filed within
21 days of the issuance or the order, the tariff should remain in effect, with
any revenues held subject to refund, pending resolution of the protest. If no
timely protest is filed, this docket should be closed upon the issuance of a
consummating order. (Mapp)
Staff Analysis:
If Issue 1 is approved and a protest is filed within
21 days of the issuance of the order, the tariff should remain in effect, with
any revenues held subject to refund, pending resolution of the protest. If no
timely protest is filed, this docket should be closed upon the issuance of a
consummating order.
VOLUNTARY SOLAR PARTNERSHIP
RIDER
(OPTIONAL PILOT PROGRAM)
RATE
SCHEDULE:
VSP
AVAILABLE:
In
all territory served by FPL (“the Company”) to customers receiving service
under any FPL metered rate schedule. This
voluntary solar partnership pilot program (“VSP Program”, “the Pilot”) provides
customers an opportunity to participate in a program designed to construct and
operate commercial-scale, distributed solar photovoltaic facilities located in communities throughout
FPL’s service territory. Service under this rider shall terminate December 31, 20178,
unless extended by order of the Florida Public Service Commission (“FPSC”), or
terminated earlier by the Company upon notice to the FPSC.
APPLICATION:
Available upon request to all customers in conjunction with the
otherwise applicable metered rate schedule.
LIMITATION
OF SERVICE:
Any
customer under a metered rate schedule who has no delinquent balances with the
Company is eligible to elect the VSP Program. A customer may terminate
participation in the VSP Program at any time and may be terminated from the
Pilot by the Company if the customer becomes subject to collection action on
the customer’s service account.
CHARGES:
Each
voluntary participant shall agree to make a monthly contribution of $9.00, in addition
to charges applied under the otherwise applicable metered rate schedule.
Customer billing will start on the next scheduled billing date upon
notification of service request. The VSP Program contribution will not be
prorated if the billing period is for less than a full month.
Upon
participant’s notice of termination, no VSP Program contribution will be
assessed in the billing period in which participation is terminated.
TERM
OF SERVICE:
Not
less than one (1) billing period.
SPECIAL
PROVISIONS:
Upon
customer request, program participation may continue at a new service address
if the customer moves within FPL’s service territory.
RULES
AND REGULATIONS:
Service
under this rider is subject to orders of governmental bodies having
jurisdiction and to the currently effective “General Rules and Regulations for
Electric Service” on file with the Florida Public Service Commission. In case of conflict between any provisions of
this schedule and said “General Rules and Regulations for Electric Service” the
provisions of this rider shall apply.
