Forida Green Program Terminated: Sunshine Energy Program Ends

By: CaraTan   Date: 1 August 2008

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CaraTan

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Cara Tan, editor

 

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August 1, - The Sunshine Energy program of Florida Power & Light (NYSE: FPL) was terminated by Florida Public Service Commission on July 30, after auditors found that the money collected through the program was mostly spent on marketing and administrative costs. The decision to end the program has come at a time when wide-ranging efforts are being made to reduce the reliance on coal and natural gas to fuel power plants and increase the use of renewable energy in Florida.

The program, which started in 2004, required customers to voluntarily pay an extra $9.75 per month to increase the use of renewable energy. The number of FPL consumers contributing to the program had grown to about 39,000, as of May 31. The program promised that for every 10,000 residential customers who signed, Florida Power & Light, along with sub-contractor Green Mountain Energy Co, would develop solar-energy projects providing an extra 150 kilowatts of solar energy.

However, an audit of Florida Power & Light’s renewable-energy program conducted by the Public Service Commission found that the company had spent only 20% of the amount of around $11.4 million collected from customer donations in the development of renewable energy plants and a significant portion of the program’s revenues were spent for marketing and administrative purposes.

Following the results of the audit, the commission has asked the company to shut down the program. The commission staff and company officials said that they will continue to work on the details of how the money was spent. In the meantime, Florida Power & Light will need to notify its customers that the program has ended. In case the company continues to receive additional payments, these will be placed in an escrow account. Neither the commission nor the company gave a hint as to how the escrow money will be utilized.

While acknowledging that Florida Power & Light had used about 75% of the money for marketing, management and administrative costs for the program, the company’s spokesman stated that starting an alternative energy program requires an educational program and marketing.

 

Greentechmedia quoted Local Power CEO Paul Fenn as saying that the news of the debacle of the Sunshine Energy program “might scare potential customers from signing up for other renewable-energy programs and could stop folks who have previously joined green programs from signing up again.”

 


Alternatio Cirqui, EconomyWatch.com Energy Correspondent

 


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