Florida's largest utility -- Florida Power & Light -- said Monday it is urging the state to developed a rate-based state plan for complying with the US Environmental Protection Agency's Clean Power Plan for reducing carbon-dioxide emissions.
FPL's "CO2 emission rate is already cleaner today than the target rate that the [EPA] has set for Florida to meet by 2030," said FPL spokeswoman Sarah Gatewood.
"Because we are in a growth state and we are a growth utility, FPL supports Florida implementing a rate-based program" for CPP compliance, Gatewood said.
"However, if the state decides to choose a mass-based program, our clean generation portfolio and plans to build more zero-emissions solar and nuclear generation along with clean combined-cycle natural gas generation in the future has FPL well-positioned to meet either option," she added.
Under a rate-based plan for CPP compliance, utilities and independent power producers in a state will be required to meet an emission rate goal either individually or on average. Under a mass-based plan, utilities and IPPs will have to meet a mass-based or statewide goal by holding an allowance for every ton of CO2 emitted.
Given that FPL already meets the CPP CO2 emissions mandate for 2030, the utility may well be in a position to trade surplus emission rate credits with utilities or other pollution sources outside its home state.
However, EPA plans to allow trading only between states that implement rate-based plans or between states that put in place mass-based plans, and not between a rate-based state and a mass-based state.
FPL is currently building a 1,277-MW, gas-fired, combined-cycle plant at Port Everglades, and is seeking state regulatory approval to build a 1,622-MW, gas-fired, combined-cycle plant in Okeechobee County, as well as three 74-MW solar facilities. The utility also is considering a plan to build two 1,134-MW nuclear units.
DUKE ENERGY FLORIDA, TAMPA ELECTRIC UNDECIDED ON FAVORED CPP APPROACH
Meanwhile, Duke Energy Florida spokeswoman Dawn Santoianni said Monday the utility is "evaluating potential strategies to reduce [its CO2] emissions" and "working constructively with the state of Florida" as it considers different approaches to CPP compliance.
Santoianni noted that DEF, Florida's second-largest utility, "has already invested more than $3 billion to modernize our generation fleet, retiring older, less efficient generation and investing in new generation, including renewables. As a result of these efforts, we've reduced carbon dioxide emissions by 15% since 2005."
She said DEF also has announced plans to build "up to 500 MW of new solar in Florida by 2024 as part of a 10-year plan, a proposal that would more than triple solar capacity in the state."
DEF is also building 1,640 MW of gas-fired, combined-cycle capacity in Citrus County.
Cherie Jacobs, spokeswoman for Tampa Electric, the third-largest utility in Florida, said: "Tampa Electric is actively evaluating our compliance strategy" and "supports developing a state plan for CPP compliance. At this point, it's too early for us to recommend a specific statewide approach."
