• Posted on Tuesday, July 29, 2008
  • Bookmark and Share
  • email
  • |
  • print
  • |
  • rss

tool name

close
tool goes here

Florida shuts down utility's 'green' program as a fraud

Sign up for email newsletters now!

Sign up for email newsletters now!

Never miss a McClatchy story

State regulators Tuesday terminated a Florida Power & Light voluntary green energy program because three-fourths of the money customers were donating went to marketing and administrative costs, not to the purchase of energy from renewable sources.

By a unanimous vote, the Public Service Commission ended FPL's Sunshine Energy Program in which 39,000 customers have voluntarily added $9.75 to their monthly electric bill so that FPL could purchase renewable energy.

FPL in turn contracted with a Texas company, Green Mountain Energy, to carry out the program. PSC staff have been trying for months to find out where the money went, but all it could learn was that only 24 percent was going to purchase renewable energy.

Commissioner Nathan Skop, who once worked for an FPL sister company promoting renewables, said about $9 million in customers' money had gone "into a black hole where there is no transparency. . . . Clearly this is not right.''

Skop said the program was "a lot of marketing hype but very little of substance.''

FPL Vice President Wade Litchfield said the utility and Green Mountain were eager to work with the commission to explain where the money went. He said the Texas company had met the obligations of its contract with FPL.

Robert Thomas, chief legal officer of Green Mountain, said the company would continue to provide information about its expenses to regulators. "We have provided that cooperation in the past, and we will continue to work with the staff. . . . The money was spent for legitimate marketing expenses and other legitimate expenses.''

Commissioner Skop said that ''no reasonable person would have contributed to this program knowing that 80 percent'' of their money "was not going to renewables.''

Read the full story at MiamiHerald.com.

JOIN THE DISCUSSION

We welcome comments. To post one, you must sign in using either your McClatchyDC login or your login for Facebook, Twitter or Disqus. Just click the appropriate box below.

Please keep your comment civil, short and to the point. Obscene, profane, abusive and off topic comments will be deleted. Repeat offenders will be blocked. If you find a comment abusive or inappropriate, please flag it for the moderator by placing your cursor on the comment, then clicking the "flag" link that appears. Thanks for your participation.

ECONOMY IN TURMOIL

economy in turmoil

Read McClatchy coverage of the economic pain Americans around the country are feeling, from Florida to California to Alaska.

ECONOMY QUESTIONS & ANSWERS

 hall & pugh

McClatchy correspondents Kevin G. Hall (left) and Tony Pugh are available to answer your questions about the economic meltdown at home and abroad, and what's in store for ordinary Americans.

Q&A: THE HOUSING CRISIS

Mark Zandi, the chief economist for Moody's Economy.com, is took questions from McClatchy readers about the nation's deep housing crisis. His book, "Financial Shock," offers a 360-degree look at what caused the crisis, what mistakes were made and who made them. It offers a way forward to prevent future crises.

Q&A: TERMINAL CHAOS

U.S. air travel these days is about as fun as a trip to the dentist. Departure delays are rampant, bags often miss the flight you've caught and rising jet fuel prices have major airlines charging to check a bag. In his new book "Terminal Chaos," George Donohue, a professor and former high-level Federal Aviation Administration official, explains why our system of air travel is broken and what can be done to fix it. Read the responses.

Q&A: THE THREE TRILLION DOLLAR WAR

For two weeks, Nobel Prize-winning economist Joseph Stiglitz and Harvard professor Linda Bilmes, authors of "The Three Trillion Dollar War," fielded questions about the cost of the Iraq war and its impact on the U.S. economy. They're not taking new questions, but they're still posting answers to ones they've already received. Read their responses.