Jacob Ogles
Gov. Ron DeSantis just cut the power on legislation allowing an experimental change to utility rates.
The Governor vetoed the bill (SB 1574), citing objections about language regarding green energy credits in Florida.
The bill “requires the Public Service Commission (PSC) to create a new experimental rate mechanism to permit utilities to bill ratepayers for capital investments in renewable natural gas,” DeSantis wrote in a veto message.
“The bill also includes a provision requiring the PSC to consider green energy credits when establishing and reviewing utility rate requests that are inconsistent with state energy policy.”
The bill won unanimous approval in both the House and Senate. The goal of the legislation was to diversify the state’s energy sources, including using renewable natural gas, according to Sen. Nick DiCeglie, a Pinellas Republican. But it also had the potential to pass on costs to customers.
“As Florida’s economy, energy demands and population continue to grow, we need to recognize energy solutions that are diverse, secure, affordable and reliable,” DiCeglie told the Senate Fiscal Policy Committee in April. “Florida currently uses seven times more energy than it actually produces, causing us to rely heavily on other states to fill the gaps.”
The legislation would have authorized the PSC to establish an experimental mechanism for energy infrastructure investments in gas, specifically renewable natural gas.
“The bill’s intention is to encourage utilities to invest in and advance Florida’s energy resources to be more resilient, while also providing a waste solution that is an economic benefit to its communities,” DiCeglie said.
The bill included requirements for the PSC to develop rules on the allocation to customers of tradable energy credits and tax savings associated with gas infrastructure investments. The rules would have needed to address the treatment of revenues from sales of gas from green energy investments for transportation purposes.
The U.S. Energy Information Administration’s most recent data shows that Florida is the second-largest producer of electricity in the nation after Texas. In 2024, 75% of Florida’s electricity was generated by natural gas.
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Andrew Powell of Florida Politics contributed to this report.
