25-17.001. General Information

(1) The terms system and electric utility, as used in this Rule, shall be synonymous and have the same definition as “electric utility” as defined in Section 366.82(1), F.S.

(2) The Florida Energy Efficiency and Conservation Act requires increasing the efficiency of the electric systems of Florida, increasing the conservation of expensive resources, such as petroleum fuels, reducing the growth rate of weather sensitive peak demand, and reducing and controlling the growth rate of kilowatt hour consumption to the extent cost effective.

(3) Reducing the growth rate of weather sensitive peak demand on the electric system to the extent cost effective is a priority. Reducing the growth rate of weather sensitive peak demand benefits not only the individual customer who reduces his demand, but also all other customers on the system, both of whom realize the immediate benefits of reducing the fuel costs of the most expensive form of generation and the longer term benefits of deferring the need for or construction of additional generating capacity.

(4) Another priority is increasing the efficiency of the end-use consumption of electricity to the extent cost-effective.

(5) In addition to specific demand-side goals, general goals and methods for increasing the overall efficiency of the bulk electric power system of Florida are broadly stated since these methods are an ongoing part of the practice of every well-managed electric utility’s programs and shall be continued.

These methods are to:

Generating Electric Utilities

(a) Review and revise utility operating practices such as maintenance scheduling, daily and longer term unit commitment practices through the power broker system to facilitate economic dispatch on both a daily and extended basis and to increase conservation of expensive fuel resources, such as petroleum fuels, to the extent cost effective.

(b) Plan development of the bulk power system over time so that the most cost effective combination of generating units, associated facilities and other technologies is developed for meeting generation requirements.

(c) Increase the efficiency of each generating unit and associated operating practices to the extent cost effective.

All Electric Utilities

(d) Aggressively integrate nontraditional sources of power generation including cogenerators with high thermal efficiency and small power producers using renewable fuels into the various utility service areas near utility load centers to the extent cost effective and reliable.

(e) Increase the efficiency of transmission and distribution systems to the extent cost effective.

(f) Aggressively pursue research, development and demonstration projects jointly with others as well as individual projects in individual service areas. In this context, the Commission anticipates that an aggressive research program would include both technological research, research on load behavior and related problems and market-related research.

(6) The Commission shall continuously review the relationship between demand and energy, both present and anticipated. In making its determinations of need pursuant to the Florida Electrical Power Plant Siting Act, the Commission shall take these relationships into account so that sufficient capacity will be authorized to meet anticipated needs. These goals represent a starting point for establishing demand-side management programs for all electric utilities. While there is no absolute assurance that these goals will be fully achieved within the expected time frames, the best efforts by the electric utilities to achieve them shall be required. In any proceeding for determining whether new capacity is needed, the length and nature of experience under the goals will be considered. The goals will not be used exclusively because the Commission recognizes that they may not be achieved and that the estimates on which they are based may prove to be incorrect. To increase the accuracy of these estimates the Commission anticipates that research will be required, including both technological research and studies of the market penetration potentials of various demand-side management measures and their effectiveness in reducing the growth rate of weather sensitive peak KW demand and reducing and controlling the growth rate of KWH consumption as well as studies of consumer behavior.

(7) Rules 25-17.001 through 25-17.005, F.A.C., shall not be construed to restrict growth in the supply of electric power or natural gas necessary to support economic development by industrial or commercial enterprises. Rather, these rules should be construed so as to enhance job-producing economic growth by lowering energy costs from what they otherwise would be if these goals were not achieved.

Rulemaking Authority 366.05(1), 366.82(1)-(4) FS. Law Implemented 366.04(2)(c), (5), 366.05, 366.051, 366.82(1)-(4), 403.519 FS. History–New 12-2-80, Amended 12-30-82, Formerly 25-7.01, Amended 5-10-93.