Electric Competition Moves Forward in Florida

TECO Energy Senior Vice President Richard Lehfeldt said to facilitate electric competition in Florida that the state must move its existing generation out of the existing regulatory scheme to allow it to compete on equal footing with new generation. He said that the building blocks toward deregulation already exist, referencing the formation of a Florida regional transmission organization, the intense merger and acquisition activity in the state, the competing proposals for new gas pipelines to serve the state and in the fierce competition for building new power plants to serve the growing population. But if the move is to create a fairer and more competitive environment, it ought to also: * Enact state legislation to establish a mandate for 100 percent participation in the Florida RTO, once implemented. * Establish a generation reserves floor, a statutory guarantee that the state's capacity needs, including reserve margins, will be met under any circumstances. * Establish an environmental ceiling, or outside limit on Florida's reserve margin to avoid over utilization of Florida's limited land, air and water resources. * Establish provision that municipal and cooperative electric providers be given the opportunity to compete in the wholesale market or opt out of that market--but not both. * Ensure that the state does not suffer a revenue shortfall through restructuring. * Ensure that all competitors in a restructured market are treated equally.