ENVIRONMENTALISTS DECRY PSC STAFF RECS FOR ENERGY STANDARDS

By KEITH LAING, THE NEWS SERVICE OF FLORIDA

www.newsserviceflorida.com

THE CAPITAL, TALLAHASSEE, Sept. 29, 2008…….Staff recommendations of renewable energy standards the Florida Public Service Commission could enact next year have green economy proponents red with anger.

The recommendations, which were developed after Gov. Charlie Crist’s push to reduce Florida’s greenhouse gas emissions from 1990 levels and first floated earlier this month, will be formally presented to the PSC on Thursday.

Among the staff “straw man” proposals – so labeled because they have yet to be fleshed out by PSC commissioners – are reducing the state’s greenhouse gas emissions by 20 percent by 2050.

But 2050 is not soon enough to some, including the Environmental Defense Fund’s Florida Climate Project director Gerald Karnas. Karnas said he would like to see the 20 percent reduction take place by 2020.

“We hope that what comes out this week on (Oct. 2) will be dramatically different than the straw man,” Karnas said. “What was issued as a draft would be the weakest (renewable energy standard) in the nation and the longest time line for reduction.”

Karnas voiced displeasure not only with the time line for greenhouse gas emissions, but also with the requirement that state investment in renewable energy be cut if consumers’ energy rates rise by more than one percent.

“(We want) to let the market work for itself,” he said. “There’s no price cap on oil. I’m sure the people of Florida would love it if we put a price cap on oil, but that’s not the way markets work. Nobody likes paying $120 a barrel for oil.”

Karnas said that if the PSC enacted standards similar to what was recommended by its staff, Florida would be behind the green economy curve and Florida’s energy consumers would feel the pain in their wallets.

“The practical impact (of the staff recommendations) would be to keep renewable energy unnecessarily expensive for an unnecessarily long period of time,” he said. “Because the targets are so weak, we would not be sending a message that Florida is taking renewable energy seriously. It sends a signal to markets that Florida wants to remain a renewable energy backwater.”

“Whether you are coming at this from the T. Boone Pickens side of things, worrying about energy security, or from the Al Gore side of things, worrying about climate change, this thing fails,” Karnas continued. “It’s very disappointing.”

So much so, in fact, that Karnas said he would rather not have renewable energy standards at all than have the staff recommended standards.

“It gives the false impression that Florida is taking climate change serious,” he said. “If you read the (proposed) rule, you come away with the impression that the PSC is hostile to renewable energy and doesn’t think Florida has an energy problem.”

Karnas’ frustration is shared by those looking at the renewable energy standard through economic lenses, too. Susan Glickman, southern regional director of The Climate Group, an international non-governmental organization that champions renewable energy investment, said the proposed standards would not attract financial investment in green technology.

“(The purpose of) setting a strong target for renewable energy is to create certainty in the market,” she said. “That’s key because as you move into a low-carbon economy, that (certainty) is what it would take to create not only the innovation, but volume.”

“It’s going to require strong targets for renewable energy to jump start the market,” Glickman continued. “That’s what government is being called on to do (but) it’s not something that government is normally called on to do.”

That said, Glickman expressed optimism that the PSC would eventually adopt stronger standards that what its staff has recommended for commissioners to consider Thursday. She lauded Crist’s leadership on the renewable energy issue, citing his influence as one reason she was still hopeful.

“The governor set a goal that was what the scientists are telling us we need to do to avoid the worst implications of climate change,” she said.

PSC spokeswoman Cindy Muir said she too thought the standards eventually adopted by the PSC would differ from the first draft proposed by staffers, though she did not say they would necessarily be stronger. She said Thursday’s staff proposal was the first step in a lengthy adoption process that will include public hearings in December and January. She said the commission will likely receive the staff recommendation at Thursday’s meeting, but may not actually begin discussing it until next month.

Muir added that the staff recommendations were intended to generate discussion among environmentalist and businesspeople, which they clearly have.

“There’s been a lot of flack that the percentages are too low, so the straw man rule accomplished its intended purpose, which was to generate discussion among all interested stakeholders,” she said. “What happens (from here) remains to be seen.”

–END–
9/29/2008

CRIST ANGRY THAT SOME GAS SELLERS ARE ‘SO DAMN GREEDY’

By KEITH LAING, THE NEWS SERVICE OF FLORIDA

www.newsserviceflorida.com

THE CAPITAL, TALLAHASSEE…Gov. Charlie Crist strongly backed price gouging investigations launched by the Attorney General and Agriculture Commissioner’s offices Monday in the wake of Hurricane Ike-induced gas price spikes and expressed outrage at presumed culprits.

Appearing Tuesday with Attorney General Bill McCollum and Agriculture Commissioner Charles Bronson at the Capitol, Crist sought to reassure Floridians that the state’s gas supply was not in dire straits and that the state was aggressively pursuing potential gougers.

“We just have had a massive hurricane in Texas and the notion that some in the markets would try to take advantage of people at a time like this is simply unconscionable,” Crist said during a news conference at the Capitol. “Thank goodness for the Attorney General and the Agriculture Commissioner for pursuing these complaints.”

Crist said the state was doing everything it could to prevent gouging at the pump, and expressed anger at such efforts being necessary at all.

“The way to stop it is to do exactly what these two gentlemen are doing,” he said. “That is to aggressively pursue people who violate the law, do a proper investigation initially to determine who those individuals or those entities are and pursue them them to the fullest extent of the law and to fight for the people.”

“This cannot be tolerated,” he continued. “When you’re dealing with a situation where people’s lives are at risk in Texas…and some people are so damn greedy that they want to take financial advantage of that, it’s outrageous. Especially after we see what’s (happening) on Wall Street, enough is enough. We’re not going to take it anymore.”

With many North Florida gas stations still out out of gas, Crist again sought to discourage Floridians from making runs on the pumps that are still in operation. Similar calls have been made by AAA and the Florida Petroleum Council since Hurricane Ike’s presence in the Gulf Coast shut down most Gulf Coast oil production last week.

“We need not panic buy,” Crist said. “That begins a self-fulfilling prophecy if you run out and everybody fills up.”

Crist said Floridians ordinarily buy 25 million gallons of gas each day, but purchased 100 million gallons Friday when panic hit the state.

“We had a sufficient supply of fuel, but if everybody goes out and fills up their tank on the same day, guess what, it’s going to drop,” Crist said.

Secretary of Environmental Protection Michael Sole said the state’s gas supply was in good shape. He said the state currently has four to five days of gasoline and diesel – at normal usage levels – with another 80 million gallons on the way this week.

That notwithstanding, Attorney General McCollum said his office and the Office of Agriculture and Consumer Services were working together to make sure Florida drivers are only paying for necessary price increases. McCollum said his office, which subpoenaed the gasoline purchase records of four companies on Monday, was focusing on gasoline retailers, while Agriculture Commissioner Bronson was going after suppliers.

McCollum said his office has received 4,000 complaints of price gouging since Friday and considered almost 1,500 serious enough to investigate. It did, however, clear one Tallahassee station – McKenzie’s Market on North Monroe St. – of gouging, despite charging $5.49 per gallon over the weekend. He said other investigations were ongoing.

“We want to find out whether or not there was any kind of predisposition on the part of any of these major independent corporate entities on the retail side without having any kind of a reason to do that,” he said. “If you just are passing on price increases you are getting, you are not price gouging.”

McCollum said the majority of the complaints his office has received have come from Hillsborough, Leon and Pasco counties.

Bronson said the Department of Agriculture and Consumer Services has subpoenaed 16 major supplies in the state.

“We want to know how much fuel did they have in their holding tanks at the time of this emergency, how much fuel was being distributed and at what price,” he said. “If they bought at a certain level and that fuel was in those tanks, and they jacked the price up above and beyond their normal operating procedures under the past 30 day period, they’re going to get a fine from us. We’re serious about this.”

Bronson said that normally his office allows 21 days to respond to its subpoenas, but in gas gouging cases, it is requiring a response within a week.

“We felt like this was so serious in North Florida that we wanted to do this in a 7-day period to get a better picture,” he said.

Bronson said he was confident the gas companies would be able to provide the requested information in that shortened time frame.

Both McCollum and Bronson’s investigations are based on a Florida law prohibiting charging exorbitantly high prices on essential goods and services during declared states of emergency. The law defines gouging by comparing the price during the emergency to the price 30 days prior, allowing only increases that can be justified by higher purchase prices. Crist declared a state of emergency for Ike on Sept. 5. Violators face fines of up to $1,000 per violation up to $25,000 a day.

The statewide average price per gallon last Friday morning was $3.68, but by that afternoon, Panhandle drivers saw prices above $4. Tuesday morning many capital area gas stations were still completely out of gas and AAA put the statewide average for regular at stations still pumping at $3.87.

–END–
9/16/2008

GAS HARD TO FIND IN PLACES; MCCOLLUM, BRONSON INVESTIGATE GOUGING COMPLAINTS

By KEITH LAING, THE NEWS SERVICE OF FLORIDA

www.newsserviceflorida.com

THE CAPITAL, TALLAHASSEE…Despite Gov. Charlie Crist’s weekend reassurances that Florida’s gas supply was not on empty after Hurricane Ike struck the Gulf Coast last week, several gas stations in the state – particularly in North Florida – spiked their prices anyway in anticipation of runs on their supply from nervous drivers. Still more stations simply ran out of gas completely.

Attorney General Bill McCollum launched price gouging investigations on four Florida gas companies Sunday – Flying J, Dodge’s Gas Stores, Valero and Pilot Travel Centers. McCollum subpoenaed the companies for proof of the purchase prices of the gas they bought and then sold to customers over the weekend at unusually high prices. The investigations began after McCollum’s office received 350 complaints of price gouging since Ike made landfall Friday.

“Price gouging is strictly prohibited in Florida during a declared state of emergency and my investigators have been working throughout the weekend to determine whether Floridians are being taken advantage of,” McCollum said in a statement released Monday. “Passing along a justifiable increase in cost to consumers is legal, but we will not tolerate gouging for greed.”

Commissioner of Agriculture and Consumer Services Charles Bronson said Monday that his office had also received more than 2,000 phone calls about gouging and more than 800 official complaints.

McCollum’s investigation is based on a Florida law prohibiting charging exorbitantly high prices on essential goods and services during declared states of emergency. The law defines gouging by comparing the price during the emergency to the price 30 days prior, allowing only increases that can be justified by higher purchase prices. Crist declared a state of emergency for Ike on Sept. 5. Violators face fines of up to $1,000 per violation up to $25,000 a day.

Late last week, when spikes were first reported, Crist urged Floridians to remain calm about the amount of gasoline and promised the state would vigorously crack down on price gouging. The statewide average price per gallon Friday morning was $3.68, but by Friday afternoon, Panhandle drivers saw prices above $4. In one extreme case, a Tallahassee station was charging customers $5.49 per gallon. By Monday morning, many capital area gas stations had no more gas to sell and AAA put the statewide average for regular at $3.85.

“Parts of the Panhandle seemed to have been hit the hardest,” said AAA South spokesman Randy Bly. “We went through a run that emptied out a lot of stations, so we’re seeing a lot of bagged handles (Monday).”

Bly cautioned that increased prices do not necessarily suggest illegal gouging. He said stations typically add 60 cents to their wholesale price to ensure a profit and some wholesale prices have neared or topped $5 per gallon.

“Even if you are seeing $5 a gallon, it’s not necessarily gouging,” Bly said.

However, he said, justified increases have their limits. “If you see $6 or $7 a gallon, then that’s suspicious,” Bly said.

Bly said some Midwestern stations were said to be charging $8 per gallon, according to reports received by AAA from Arkansas. Bly added that the entire Southeast has been effected, in some cases, worse than Florida.

“Gas went up everywhere in the southeast, particularly where pipelines directly supply (states),” he said. “Florida is in better shape than its neighboring states.”

For instance, Georgia’s statewide average jumped from $3.86 Friday to $4.16 Monday, Bly said. He added that local stations running out of gas may actually be an effort to avoid the gouging label.

“Stations had literally no alternative (but to raise prices), so some stations opted to run dry out of fear of being considering gouging and having bad customer service,” he said. “Some may opt not to receive their next shipments of gas.”

Bly said gas shipments are on the way to Florida, but cautioned it may take a few days for prices to stabilize.

“We’re still going to see some spot outages and runs on gas,” he said. “Motorists are going to be inconvenienced. It’s going to be annoying to look for gas in Florida, but we’re not at emergency level.”

That’s why Bly said AAA is discouraging drivers from stockpiling gasoline.

“We’re encouraging people to not top off their tank and fill up multiple containers,” he said. “That would create a customer-induced shortage.”

Bly added that transporting that much gasoline in private vehicles is both illegal and dangerous.

–END–
9/15/2008