- 6 -
1990 83
1991 85
1992 76
1993 63
1994 62
Each FEECA program was initially designed by People's to
meet goals established by the PSC. The PSC had the final say as
to whether a particular program was approved and implemented.
In deciding whether to approve a particular program, the PSC
calculated the present dollar value of cost savings to be
realized by the people of Florida. These cost savings related to
factors such as reduced consumption of kilowatt hours of electric
energy. Other benefits taken into account were the value of
incentive payments paid to, or on behalf of, Florida public
utility customers. The value of these benefits was then divided
into the projected costs of the program. Under this formula, a
proposed program had to have a cost effectiveness ratio greater
than 1 to be approved. In deciding which of People's program
proposals to approve, the PSC did not consider the benefit to
People's.
Funds to pay for the FEECA programs were generated by
building an extra factor into the rate People's charged most of
its customers.3 People's had to identify the portion of its
3 Beginning in 1990, certain commercial and industrial
customers who agreed to have their gas service interrupted when
People's experienced unusually high demand did not have FEECA
costs built into their rates.
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Last modified: May 25, 2011