RPS Compliance and Enforcement

Presentation to the:

FPSC Staff Workshop on a Renewable Portfolio Standard

September 27, 2007

Judy HarlowDivision of Economic Regulation

Florida Public Service Commission

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RPS Compliance

Verification methodologies:

1) Contract path 2) Renewable Energy Credits (RECs)3) Utility ownership of renewable facility

Once a verification methodology is chosen, how do we make it work?

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Common Issues:

Who administers verification of compliance? - state agency or third party

Should there be a weighting system based on objectives?

- multipliers or tiered approach

Should there be a safety valve, such as an alternative compliance payment?

- who administers- use of funds- recovery for IOUs

Should self-service generation be counted toward goals?

RPS Compliance

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Issues that are specific to RECs:

Should out-of-state RECs be counted?- regional limitation- requirement that energy be delivered to Florida- coordination to prevent double counting

What flexibility measures should be allowed?- banking- borrowing- true-up period

RPS Compliance

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How often should utilities be reviewed?- annual or other interim goals

What is the best way to ensure compliance?- penalties versus guidelines

Penalty-specific issues:- How should penalties be applied?- How should funds be used?- Who administers the funds?- Force majeure exceptions?- Should IOUs receive recovery?

RPS Enforcement

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Should we establish a baseline of current renewables?- If so, what counts toward baseline?

What reporting requirements are needed?

Should there be a process to review the RPS?- automatic process such as conservation goals proceedings (review every 5 years)- ongoing review with no automatic process

RPS Enforcement