Guest Author
It’s good when a Florida business can partner with a huge corporation on a project that will revive a struggling community. So, it’s particularly distressing when the corporation acts like a bully, pushing aside the interests of its smaller partner — and the entire community — so it can grab a bigger profit for itself.
Unfortunately, that’s what’s happening right now in the small Central Florida town of Fort Meade, which has been struggling to recover from the closure of phosphate mines that once drove the economy of Polk County. The decision by Duke Energy to abandon its partner, U.S. EcoGen, could cost the local community hundreds of jobs and millions of dollars.
As a director of the Florida Alliance for Consumers and Taxpayers (FACT), an organization that weighs in on consumer issues, and a longtime advocate for local communities, I have seen far too many instances where big corporations run over those who place their trust in them. In this case, Duke Energy’s cash grab has caught the attention of some important state legislators.
A little background: Duke Energy partnered with U.S. EcoGen in 2011 to build a $400 million plant to produce biomass renewable energy, which would provide Duke with enough electricity to power approximately 10,000 homes. Relying on this agreement, U.S. EcoGen has already spent more than $40 million developing the project and bought more than 1,300 acres in Polk County for the new facility. The project was delayed by everything from the discovery of gopher tortoises to the new federal tax reform law — things beyond the control of the smaller company. U.S. EcoGen asked Duke Energy for a one-year extension, meaning it would start delivering power in 2020, but the mega-corporation said no.
This refusal is both baffling and harmful to consumers, since the state Public Service Commission has said the project would save ratepayers almost $60 million. Baffling, that is, unless you consider that it looks like Duke Energy has taken an interest in operating its own renewable energy business. In a PSC document from last year, Duke Energy asked permission to enter the renewable energy field, which would make it a direct competitor with U.S. EcoGen — not a partner. Unless, of course, it found a way to stop U.S. EcoGen’s plant from ever opening.
Unsurprisingly, the project has wide support from the local community who sees this as a unique opportunity to diversify their economic future. Additionally, State Sen. Aaron Bean and Rep. Jay Trumbull, who chair legislative panels that oversee energy and utilities’ issues, have written letters encouraging Duke Energy to move forward with this project. They cite the financial implications for the community, the potential loss of hundreds of high-paying jobs, and the impact on consumers.
Duke Energy has a real chance to do something good for its ratepayers, good for this community, and good for the public. It’s not too late for the corporation to change its mind, so for the sake of this community and Florida, let’s hope that Duke does the right thing.
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John Thomas is a director with the Florida Alliance for Consumers and Taxpayers. He has decades of experience working with local governments and elected officials.
