Thursday, December 1, 2016

Amendment 1: The Big Utility Showdown

** Reposted with permission from Occupy My Soapbox **

The largest utilities in Florida bankrolled Consumers for Smart Solar and Amendment 1. They want to maintain their monopoly control over energy in the State. Amendment 1 was looking to suppress competition from rooftop solar via constitutional ballot amendment. Thankfully, those in Sarasota and Manatee Counties as well as the rest of Florida saw through the ruse and voted it down on Election Day 2016. However, the story of Amendment 1 is a bit more complicated and Machiavellian, pitting the corporate and financial power of Big Utilities against the Power of the People.

As it stands now in Florida, only utilities can sell power to retail customers. Due to this restriction, landlords cannot sell power from solar panels to their tenants. It also effectively shuts down solar leasing. With leases, an outside company pays the high upfront cost of solar panels, and their customers sign long-term contracts to buy the power. Such leasing has made residential solar the fastest-growing part of the U.S. solar market. But it is simply not legal in Florida. Each utility has monopoly control of the sales and distribution of electricity. 

For many years, both citizens and politicians have wanted to open up the utility monopolies to competition from solar companies. The Florida Center for Investigative Reporting interviewed Paige Kreegel, who was a State Representative back in 2009. He was chair of the state House’s Committee on Energy. He considered himself a free-market Republican and he wanted to get government out of the way of the growing solar industry. But the rest of the Committee Members wouldn’t touch solar energy and he found himself an outsider on the Energy Committee he chaired. It turns out that Florida’s utility companies have heavily funded Florida political campaigns - to the tune of $12 million between 2010 and 2015. Those donations included contributions to every member of the Florida Senate and House leadership and a whopping $1.1 million to Governor Rick Scott's 2014 reelection campaign. According to State Sen. Jeff Brandes, “Here’s how the power companies control the Legislature: they ask the chairman of committees to never meet on the issue.”

To circumvent the lack of action in the Florida legislature, Floridians for Solar Choice attempted to place a constitutional amendment on the Florida ballot.