Burying the Distribution Wires
(A Modest Proposal To Encourage Investment in Underground Distribution Lines)
Presented at
The Florida PSC’s
Electric Utility Infrastructure Staff Workshop
by
Charles A. Falcone
Commissioner, Town of Jupiter Island
Tallahassee, Florida January 23, 2006
Town of Jupiter Island
A Small Town of Some 600 Homes on a Barrier Island in Martin County We’ve Pressed FPL For Underground Conversion Since Year 2000 Our Power Supply Reliability Has Been Poor We Love Our Trees! We’re Willing
to Pay the Cost of Conversion, but…….
We don’t want to Overpay!
I Used To Be An 800 Pound Gorilla Too!
Obstacles To Conversion
High Cost
FPL’s Policies—
Easements vs. ROWs
Overheads Duration of Construction Project Ownership
We’re Now Collaborating With FPL!
History of Jupiter Island’s Efforts To Bury Distribution Lines
Year s 2000-2002: High Cost Discouraged Us Years 2003-2004 : On The Back Burner September 2004 Hurricanes: On The Front Burner! Early 2005: FPL Develops Engineering Estimate
October 2005: Wilma! FPL’s Epiphany
Epiph-a-ny (Webster): an
intuitive grasp of reality through something (as an event) usually simple and striking
Hurricane Wilma Caused A Sea Change!
We’re Now Working Collaboratively With FPL!
The Project Cost may be Lower! FPL is evaluating a cost incentive Agreement on Using the ROW, Where Feasible, for Underground Facilities! Town Collaboration on the Layout Good Understanding on Hardening the Feeders Coming Into Town Evaluation of Waterproof Switchgear
Is Underground Distribution More Reliable?
You Bet!
We’re convinced; but you may not be yet
There’s an ―Understanding‖ Among Utilities….
Underground is no more reliable than overhead Avoid publishing any data that would contradict this
Reliability of Underground vs. Overhead Distribution
Florida and Nationwide
I’ve read 12 Recent Reports on UG Distribution Scant Data on Reliability! NO Data at all in Florida Reports! FPL Ignored Several Requests We’re Collecting Data Ourselves!
Utilities Have Discouraged Conversions!
Why?
It would be a lot of trouble to carry out extensive conversions This work would not increase ROE— in fact, it would lower ROE! For the existing customers and the same rates, the utility must contribute capital New customers are different. The utility must connect them to do business
Underground Distribution is Especially Desirable in Florida
Salt Spray Contaminates Insulators Fast Vegetation Growth Interferes With Overhead Lines Highest Lightning Frequency in the USA! Hurricanes Happen Here!
Distribution Has Been A ―Stepchild‖
Most facilities are old Maintenance and capital additions are ―as needed‖ Book values are a fraction of original cost, and a smaller fraction of today’s cost This is great business for the utilities! It’s a ―Cash Cow‖ New neighborhoods are mostly going underground
Needed: A Customer-friendly Underground Conversion Policy In Florida
Good Public Policy--Encourage Towns and Communities to Convert Towns Must Pay Conversion Costs But-- Provide a Cost Incentive Facilitate Administrative Processes
Example: Municipal Utilities Have Carried Out Some Conversions
Generally they have encouraged neighborhoods to convert with a modest cost sharing– around 25%
Examples: Town of Pawley’s Island, SC (Served By Santee Cooper) also --Vero Beach, Fort Pierce
Questions?