Fla. regulators reapprove Duke solar program after legal challenge

Florida regulators on Sept. 8 approved an amended decision supporting a Duke Energy Florida LLC solar program remanded by the state Supreme Court.

The Florida Public Service Commission approved the Duke Energy Corp. utility's "Clean Energy Connection" program in 2021, which included construction of 74.9-MW solar power plants that are scheduled to come online in the next few years (Docket No. 20200176-EI).

That decision was challenged by the League of United Latin American Citizens of Florida, represented by nonprofit Earthjustice. The league appealed to the Florida Supreme Court to review the solar subscription program, saying it unfairly requires nonparticipating customers to subsidize participating customers and thus violates the requirements that the utility's rates be "fair and reasonable," according to court filings.

The Florida Supreme Court issued an order in May requiring regulators to revise their initial approval of the program, which allows customers to voluntarily subscribe to purchase solar power from Duke to help subsidize construction of the 10 solar farms in exchange for credits on monthly bills.

Vote Solar, the Southern Alliance for Clean Energy and Walmart Inc. supported the stipulation agreement to create the program. The League of United Latin American Citizens of Florida petitioned to intervene in July 2020, saying the solar program provides the majority of benefits to large commercial and industrial users at the expense of general ratepayers.

Commission staff recommended that the PSC not accept the characterization of the Clean Energy Connection bill credit feature as a subsidy and that the commission find the program's rates "fair, reasonable and not unduly preferential." Commissioners unanimously approved the staff recommendations and entered a revised final order that included its findings and reasoning.

"The mere existence of disparate treatment of participants and nonparticipants (whether or not labeled or characterized as a subsidy) is not itself dispositive of the lawfulness of the program," the commission said in its revised order.

The docket will remain open pending resolution of the appeal by the Florida Supreme Court, commission staff said.

Earlier in September, Duke Energy Florida completed the last of the 10 solar projects.

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