Energy Initiatives

One potential policy choice for meeting the Governor's carbon dioxide emissions limits will likely be a cap-and-trade emissions trading mechanism. A cap-and-trade scheme caps the aggregate level of emissions (as has already been done in the Governor's Executive Order), allocates the rights to pollute in some manner to pollution sources, and then allows those sources to trade their emissions rights if they choose to do so. (The primer below is available through the research papers search engine.)

Sotkiewicz, Paul M. 2007. "Emissions Trading." In Encyclopedia of Energy Engineering and Technology Vol.1, ed. Barney Capehart, 430-37. New York: CRC Press, Taylor and Francis.

There are lessons to be learned from existing cap-and-trade programs such as the Sulfur Dioxide Trading Program. In particular, electric utilities are regulated by state public utility commissions (PUCs), and PUCs dictate cost recovery rules for compliance options. How PUCs allow for cost recovery can affect the costs of achieving compliance with the cap-and-trade program. The two papers below outline the potential additional costs PUC regulation might add to the sulfur dioxide cap-and-trade emissions program. (They are available through the research papers search engine.)

Sotkiewicz, Paul M. 2003. "The Impact of State-Level Public Utility Commission Regulation on the Market for Sulfur Dioxide Allowances, Compliance Costs, and the Distribution of Emissions." PhD dissertation, University of Minnesota.

Sotkiewicz, Paul M. and Lynne Holt. 2005. "Public Utility Commission Regulation and Cost Effectiveness of Title IV: Lessons for CAIR." The Electricity Journal, 18(8): 68-80.

Distributed generation is generally defined as generation resources that are small and are connected on-site or close to the point where the electricity is used. The main purpose of distributed generation (DG) is to reduce line losses and/or to serve as a source of back-up power for reliability purposes. DG does not necessarily have to be a renewable energy resource, but can also include diesel generators, fuel cells, and combined heat and power (CHP) applications. (The primer below is available through the research papers search engine.)

Sotkiewicz, Paul M., and Jesus Mario Vignolo. 2007. "Distributed Generation." In Encyclopedia of Energy Engineering and Technology Vol. 1, ed. Barney Capehart, 296-302. New York: CRC Press, Taylor and Francis.

Dr. Sotkiewicz and Mr. Vignolo have written a series of papers looking at the role of distribution rate design and cost recovery on the revenues of DG resources. These papers examine the nodal pricing of losses, mw-mile methods for the recovery of fixed network costs, and the effects of the prices paid by consumers of these rate designs and the use of DG resources. (They are available through the research papers search engine.)

Sotkiewicz, Paul M., and Jesus Mario Vignolo. 2006. "Nodal Pricing for Distribution Networks: Efficient Pricing for Efficiency Enhancing Distributed Generation." IEEE Transactions on Power Systems, 21(2): 1013-14.

Sotkiewicz, Paul M., and Jesus Mario Vignolo. 2004. "Allocation of Fixed Costs in Distribution Networks with Distributed Generation." IEEE Transactions on Power Systems, 21(2): 639-652.

Sotkiewicz, Paul M., and Jesus Mario Vignolo. 2007. "Towards a Cost Causation-Based Tariff for Distribution Networks with DG." IEEE Transactions on Power Systems, 22(3): 1051-1060.

Sotkiewicz, Paul M., and Jesus Mario Vignolo. 2006. "The Value of Intermittent Wind DG under Nodal Prices and Amp-mile Tariffs." University of Florida, Department of Economics, PURC Working Paper.

PURC Research Associate Joshua Kneifel has written about state level policies designed to encourage utility scale renewable energy deployment. He finds that renewable portfolio standards (RPS), public benefits funds (PBF), and a requirement that utilities offer their consumers the option to purchase so-called green power are the biggest drivers behind utility scale renewable energy deployment. (His paper is available through the research papers search engine.)

Kneifel, Joshua. 2007. "Effects of State Government Policies on Electricity Capacity from Non-Hydropower Renewable Sources." University of Florida, Department of Economics, PURC Working Paper. Submitted for Publication.

Another possible way in which carbon dioxide emissions can be reduced is through energy efficiency. One problem that has been cited by environmental groups has been rate designs and regulatory schemes in electricity that encourage utilities to sell more power in order to ensure the recovery of fixed infrastructure costs and to increase profitability. One potential answer to this dilemma is revenue decoupling which separates utility profits and infrastructure cost recovery from sales. Of course, there are many possible ways to implement revenue decoupling, and the idea is not without controversy.

Workshop for Research in Electricity Infrastructure Hardening

June 9, 2006

The University of Florida's hurricane simulator was featured on ABC's Good Morning America June 3, 2008.

UF Hurricane Simulator on the CNN network
The University of Florida's hurricane simulator was featured May 30, 2007 on the CNN network. The device, which is the world's largest portable hurricane wind and rain simulator, is being used to test the durability of structures in the face of hurricane force wind and rain. An earlier version of the hurricane simulator was featured at the June 9, 2006, workshop on hurricane hardening research. Additional information on the hurricane simulator, which is part of a larger hurricane research effort in the Florida Coastal Monitoring Program, can be found on the UF News web site. The hurricane simulator was also featured in an article in the Gainesville Sun.