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State of Florida
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Public Service Commission Capital Circle Office Center ● 2540 Shumard
Oak Boulevard -M-E-M-O-R-A-N-D-U-M- |
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DATE: |
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TO: |
Office of Commission Clerk (Teitzman) |
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FROM: |
Division of Economics (Main, Barrett, Hampson) Office of the General Counsel (Stiller) |
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RE: |
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AGENDA: |
07/11/23 – Regular Agenda –Tariff Suspension – Participation is at the discretion of the Commission |
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COMMISSIONERS ASSIGNED: |
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PREHEARING OFFICER: |
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SPECIAL INSTRUCTIONS: |
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On May 31, 2023, Tampa Electric Company (TECO or utility) filed a petition for approval of changes to the tariffs to its Shared Solar Rider (SSR-1 tariff or tariff). The provisions of the SSR-1 tariff are marketed by TECO as the “Sun Select” program. In its current form, the tariff offers residential and commercial customers the option to purchase all or a portion of their monthly energy consumption from solar generation. Residential and small commercial customers are able to purchase solar energy on a basis of 25, 50, or 100 percent of their monthly energy usage. Large commercial customers are able to purchase energy in 1,000 kilowatt-hour (kWh) blocks. The SSR-1 tariff was approved in June 2019.[1]
The SSR-1 tariff operates based on an allocation of 17.5 megawatts (MWs) from the Company’s Lake Hancock solar facility. Participants in the program pay their normal tariff charges, with the exception of the fuel charge, plus an additional $0.063 per kWh program charge on the percentage of energy subscribed under the SSR-1 tariff. All normal charges apply to the percentage of energy consumed outside of the SSR-1 tariff. TECO launched the program on a first-come, first-served basis, and did not reserve any allocation of energy to particular customer classes. As of the filing of the Petition, the Sun Select program is approximately 35 percent subscribed and has experienced a 44 percent churn rate.
In its petition, TECO seeks approval of several modifications designed to increase participation in the Sun Select program and allow the utility to learn more about customer adoption of community solar programs and customer desire to reach decarbonization goals. First, the utility seeks to increase the participation cap from 17.5 MWs to 30 MWs. Second, the utility proposes a reduction in the program charge from $0.063 per kWh to $0.049 per kWh. The proposed rate change is the result of several changes to TECO’s pricing model for this program as described in the petition. TECO also proposes to use 100 percent of expected annual energy output from the solar facilities for program subscriptions, as opposed to the currently-approved 95 percent of annual energy output. Finally, TECO proposes to change the term “Monthly Rate” to “Rate.”
This recommendation is to suspend the proposed tariff, thus allowing staff sufficient time to review the proposed modifications, and gather all pertinent information in order to present the Commission with an informed recommendation on the tariff proposals
The Commission has jurisdiction over this matter pursuant to Sections 366.03, 366.04, 366.05, and 366.06, Florida Statutes (F.S.).