Summary The Legislature, by the adoption of Florida Statute 366.91, mandated interconnection/net metering of customer owned renewable energy systems by all Florida electric utilities. The City of Alachua, on Oct. 24, 2011, adopted Section 38-178 of the Code of Ordinances to establish the process to implement the program.
The interconnection of customer owned energy generation systems available prior to and through 2011 caused concern by operators of electric utilities that a private system failure could cause a feedback to the public system that could cause personal injury or property damage. Many utilities, including the City of Alachua, therefore, included mandatory customer insurance to protect the system and the public against any such loss. Section 38-178 (i) was included in the City Code for that purpose. Gainesville Regional Utilities operates with the same requirement.
Three things have happened to cause City staff to revisit the customer insurance requirement: first, residential customers are the largest users of systems generating 10 kW or less and GL insurance of the type required is not available; second, systems must meet UL standards and are deemed safe; third, the Public Service Commission (PSC), by Rule 25-6.065 (5)(e),F.A.C., has prohibited such a customer insurance coverage requirement by investor owned utilities.
The PSC Rule does not bind the City, but staff, after a complete review of the matter, has found the existing customer insurance requirement for systems of 10kW or less effectively prohibits residential installation of customer solar generation systems. Commercial customers are not similarly affected because coverage is available as a part of standard commercial insurance. Therefore, staff recommends the language of Section 38-178 (i) be amended to be consistent with the language and intent of the PSC rule for Investor Owned Utilities in order to make customer owned solar generated energy systems more available to residential and small City of Alachua commercial electric system utility customers.
| | |