Florida waste plant to wheel for better buyback. [Bay County]

A large municipal user is planning to improve the economics of an expensive new waste-to-energy plant by selling its electricity to a non-local utility that offers 30% higher buy-back rates. Bay County, Florida will be taking advantage of a Florida Public Service Commission (PSC) rule that orders utilities to wheel cogenerated power to other service areas. To date, few cogenerators have tried to wheel power under the rule because until recently the wheeling tariffs were in question. In July, Florida utilities challenged the rule before the Federal Energy Regulatory Commission, saying the PSC did not have the authority to set wheeling rates. In October 1984, FERC resolved the issue, ruling that cogenerators who wish to wheel must negotiate rates with utilities and that these rates are subject to FERC approval. Bay County will pay approximately 0.125 to 0.147 cents per kilowatt-hour to have its electricity wheeled.