Over the past few weeks, a lot of the dialogue has been about my comments about utilities joining SEIA in some fashion. And this article summarizes my primary opposition to ANY utility involvement in our trade association and the trend continues in today’s news stories. I want you all to know that I am not sitting here throwing stones to stir things up, I am sincerely hoping for the industry to go into the direction that I believe is in all of our best interests. I want every solar company and trade group to be successful and thrive.
Why Utilities Matter. Here are the talking points from the Duke Energy President in South Carolina. “Duke has invested $6billion in renewables.” “Duke is anti-subsidy.” “Net metering is a subsidy.” All three comments are either outright false, misleading or intellectually dishonest. Taking an oped and trying to drive a wedge into public support by misleading the reader bothers me. Duke may have invested $6billion into renewables but did so mostly through its deregulated subsidiaries because they were allowed to compete. Duke is not anti-subsidy, because if they were they would not saddle their ratepayers with power plant risks, early cost recovery for unbuilt plants and fuel cost risk. Is this a company that you believe would have a voice in your trade groups that advances your business?
The Florida Solar Swamp. First the good news. Frank speaks with Sunnova’s CEO about their announcement to enter the Florida market. This comes on the heels of Sunrun taking the leap of faith and asking the PSC for a declaratory statement. More competition on residential solar will be good for a State like Florida where almost every homeowner wants solar. Keep your eyes on the adoption rate, it will surprise you. On the other hand, we have the start of a giant shady deal in Central Florida. The Florida municipal power companies have contracted in a PPA with NextEra on a 225MW transaction, made up of three 75MW solar farms. We will be looking into this in much greater deal but here is what we know already. Only 7 developers were invited to bid, this was not an open RFP. Of those 7, only two were invited to negotiate and they were not the lowest bidders according to sources. It may also be true that NextEra used FPL’s solar farms, which are paid for using rate base, as a statement of qualifications to win this deal. That raises all sorts of monopoly/deregulation firewall alarm bells. It is also very likely that NextEra has a PPA rate for FMPA lower than the cost of solar to FPL customers in the monopoly rate based solar. This makes my point for me that rate based solar should be put out for bid because the private market because competition is good for everyone. More on this soon, but it’s shady thus far.
Who Cares About NEM? The CT net metering fight worries me. From a press perspective, the media coverage of it has been slim to none. If my inbox is an indication, it almost appears that some groups have given up on the net metering fight in a State that sends an all blue congressional delegation to Washington DC. We can’t just worry about legislation that fixes a state solar market, we have to attack the markets and stop them from taking away the number 1 core value for any solar advocate, full retail rate net metering. Net metering is the rising tide in solar, without it, forget getting the support for interconnection processes that enable large scale RPS or PURPA markets.
Deep Energy State. I indulge in some tv watching and Madam Secretary is one of those Sunday night DVR specials. Normally I pay half attention as I type this newsletter but last week, I sat in awe as the natural gas CEO was in the Secretary of State’s office arguing against renewables and nuclear. Put aside the renewables piece, this was a lobbied influence campaign between natural gas and nuclear as they both argued to be the transition plan. Imagine playing the public influence campaign so thoroughly that you are pitching tv writers on your talking points.
NY ISO ‘Loves’ Solar. First, it’s the lightbulbs. Second, blaming solar for demand reduction is exactly why people consider net metering a subsidy. Demand reduction reduces the cost of infrastructure to ratepayers and therefore is a network benefit.
- The State: Why should the rest of us pay to subsidize people who choose rooftop solar power?
- SolarWakeup: SolarWakeup Podcast – Sunnova Makes Its Move Into Florida – Here’s Why
- Florida Politics: Florida’s municipal utilities go solar in big way
- Tampa Bay Times: Regulators to consider cost recovery for Tampa Electric solar project
- CT Mirror: Energy bill still embroiled in controversy but probably heading to the floor
- SolarWakeup: Madam Secretary – Don’t Just Spout Pro-Nuclear Talking Points
- Utility Dive: New York ISO – Distributed solar largely to blame for declining load
- E&E News: Suniva started a trade war. Now it’s being auctioned off
Opinion
Have a great day!
Yann