UTILITY continued from 33 rate. But the worst emitters pay more on an absolute basis and those who have already made improvements pay less. Companies will win or lose based on their ability to innovatively invest to reduce carbon emissions—not on how successful they are in lobbying Congress for free allowances.
Our proposed fee is also fair to consumers, as we propose recycling most of the gross receipts back to consumers (e.g., a carbon allowance). This will benefit low-income consumers, who typically do not use much energy, and it will increase the costs to higher income consumers, who typically consume much more energy. So, unlike cap-and-trade, which is highly regressive, our carbon fee is progressive.
Turkey Point nuclear plant, Biscayne Bay, Fla. Most of the property remains in its natural state, home to more than 60 species of birds and animals, 17 of which are endangered -- including the American crocodile.
million to upgrade its system to withstand higher winds, strengthen critical infrastructure projects like hospitals and ports and improved pole inspections and vegetation management. We call the program Storm Secure. Going forward, we plan on spending about $50 million per year on O&M and making $100 million to $150 million a year in capital expenditures for Storm Secure. FPL is also encouraging the conversion of overhead lines to underground.
Another big challenge, of course, is growth. Florida has one of the nation’s fastest-growing populations and is expected to replace New York as the third largest state by 2030. FPL is adding about 85,000 new customers each year and its existing customers are using more electricity than in the past.
To meet part of this demand, FPL is building two state-of-the-
This is not to say that a cap-and-trade system cannot be made to work effectively. If a carbon fee turns out to be politically unfeasible, the next best alternative would be cap-and-trade with a majority of allowances fully auctioned and with the remainder being allocated on the basis of energy output rather than input. In addition, a “safety valve” should be included to protect against severe market disruptions, with a floor and ceiling for prices.
You’re right, we face some tough challenges in Florida. Florida Power & Light is better prepared today for hurricanes than ever before. Since 2006, our utility has invested more than $100
art, natural gas-fired combined-cycle generating units in Palm Beach County. Other natural gas generating plants are on the drawing boards. And, as I mentioned earlier, FPL is planning a major expansion in nuclear generating capacity.
In addition, we’re pushing ahead aggressively with energy efficiency and energy conservation programs, which we expect will meet about 26 percent of future demand growth. In recent years, these programs have allowed us to fully meet our customers’ energy requirements while avoiding the need to build 11 power plants.
What new technology holds the greatest promise for
our industry?
At the top of my list would be new technology for
economically capturing and sequestering carbon
dioxide. Of course, at FPL Group we’re always on the
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