Help us improve in just 2 minutes—share your thoughts in our reader survey.

Florida Changes to Energy Market Initiative (2020)

From Ballotpedia
Jump to: navigation, search
Florida Changes to Energy Market Initiative
Flag of Florida.png
Election date
November 3, 2020
Topic
Energy
Status
Not on the ballot
Type
Constitutional amendment
Origin
Citizens


The Florida Changes to Energy Market Initiative (Initiative #18-10) was not on the ballot in Florida as an initiated constitutional amendment on November 3, 2020. Sponsors of the measure referred to it as the Florida Energy Choice Initiative.[1][2]

Overview

What would the measure have done?

The measure would have amended the state constitution to declare that it is the policy of the state of Florida that "its wholesale and retail electricity markets be fully competitive so that electricity customers are afforded meaningful choices among a wide variety of competing electricity providers."[1]

The initiative itself would not have directly changed the structure of the state’s electric power retail market. Rather, the amendment would have declared that the state’s policy is to establish an open and competitive market for electric power; provide consumers of investor-owned utility companies with the rights to choose providers on a competitive wholesale and retail electric market and to produce electricity for themselves; and require the Florida State Legislature to pass laws to implement the amendment.[1]

The amendment would have required the Florida State Legislature to pass laws by June 1, 2023, to be effective by June 1, 2025, that do the following:[1]

(I) limit the activity of investor-owned electric utilities to the construction, operation, and repair of electrical transmission and distribution systems;
(II) promote competition in the generation and retail sale of electricity through various means, including the limitation of market power;
(III) protect against unwarranted service disconnections, unauthorized changes in electric service, and deceptive or unfair practices;
(IV) prohibit any granting of either monopolies or exclusive franchises for the generation and sale of electricity; and
(V) establish an independent market monitor to ensure the competitiveness of the wholesale and retail electric markets.[3]

The measure also included a provision stating that, if the legislature did not enact the required laws according to the amendment, then any resident of the state would have been able to petition a court to compel the legislature to enact such legislation.[1]

Support and opposition campaigns

Citizens for Energy Choices led the campaign in support of the initiative. Floridians for Affordable Reliable Energy (FARE) led the campaign in opposition to the measure.

Challenge to ballot language

On March 1, 2019, Florida Attorney General Ashley Moody (R) filed a petition with the Florida Supreme Court requesting the court's written opinion regarding whether or not the initiative's ballot title and summary are misleading and whether or not the initiative complies with the state's single-subject rule. On January 9, 2020, the supreme court unanimously found the ballot language to be misleading, blocking the initiative from appearing on the 2020 ballot. The court wrote, "The ballot summary expressly states that the initiative grants the right to sell electricity, and the initiative does not do so." Citizens for Energy Choice chair Alex Patton said, "It's an extreme disappointment that obviously our committee disagrees with, but we respect the rule of law and will govern ourselves accordingly."[4] Click here to read more about the case.

Text of measure

Ballot title

The proposed title was as follows:[2]

Right to Competitive Energy Market for Customers of Investor-Owned Utilities; Allowing Energy Choice.[3]

Ballot summary

The proposed ballot summary was as follows:[2]

Grants customers of investor-owned utilities the right to choose their electricity

provider and to generate and sell electricity. Requires the Legislature to adopt laws providing for competitive wholesale and retail markets for electricity generation and supply, and consumer protections, by June 1, 2025, and repeals inconsistent statutes, regulations, and orders. Limits investor-owned utilities to construction, operation, and repair of electrical transmission and distribution systems. Municipal and cooperative utilities may opt into competitive markets.[3]

Constitutional changes

See also: Article VI, Florida Constitution

The measure would have added a new section to Article X of the Florida Constitution. The following underlined text would have been added:[1]

Note: Hover over the text and scroll to see the full text.

(a) POLICY DECLARATION. It is the policy of the State of Florida that its wholesale and retail electricity markets be fully competitive so that electricity customers are afforded meaningful choices among a wide variety of competing electricity providers.

(b) RIGHTS OF ELECTRICITY CUSTOMERS. Effective upon the dates and subject to the conditions and exceptions set forth in subsections (c), (d), and (e), every person or entity that receives electricity service from an investor-owned electric utility (referred to in this section as “electricity customers”) has the right to choose their electricity provider, including, but not limited to, selecting from multiple providers in competitive wholesale and retail electricity markets, or by producing electricity themselves or in association with others, and shall not be forced to purchase electricity from one provider. Except as specifically provided for below, nothing in this section shall be construed to limit the right of electricity customers to buy, sell, trade, or dispose of electricity.

(c) IMPLEMENTATION. By June 1, 2023, the Legislature shall adopt complete and comprehensive legislation to implement this section in a manner fully consistent with its broad purposes and stated terms, which shall take effect no later than June 1, 2025, and which shall:

(1) implement language that entitles electricity customers to purchase competitively priced electricity, including but not limited to provisions that are designed to
(i) limit the activity of investor-owned electric utilities to the construction, operation, and repair of electrical transmission and distribution systems,
(ii) promote competition in the generation and retail sale of electricity through various means, including the limitation of market power,
(iii) protect against unwarranted service disconnections, unauthorized changes in electric service, and deceptive or unfair practices,
(iv) prohibit any granting of either monopolies or exclusive franchises for the generation and sale of electricity, and
(v) establish an independent market monitor to ensure the competitiveness of the wholesale and retail electric markets.

(2) Upon enactment of any law by the Legislature pursuant to this section, all statutes, regulations, or orders which conflict with this section shall be void. (d) EXCEPTIONS. Nothing in this section shall be construed to affect the existing rights or duties of electric cooperatives, municipally-owned electric utilities, or their customers and owners in any way, except that electric cooperatives and municipally-owned electric utilities may freely participate in the competitive wholesale electricity market and may choose, at their discretion, to participate in the competitive retail electricity market. Nothing in this section shall be construed to invalidate this State's public policies on renewable energy, energy efficiency, and environmental protection, or to limit the Legislature's ability to impose such policies on participants in competitive electricity markets. Nothing in this section shall be construed to limit or expand the existing authority of this State or any of its political subdivisions to levy and collect taxes, assessments, charges, or fees related to electricity service.

(e) EXECUTION. If the Legislature does not adopt complete and comprehensive legislation to implement this section in a manner fully consistent with its broad purposes and stated terms by June 1, 2023, then any Florida citizen shall have standing to seek judicial relief to compel the Legislature to comply with its constitutional duty to enact such legislation under this section.[3]

Support

Florida Energy Choice Logo.JPG

Citizens for Energy Choices (Florida Energy Choice) led the campaign in support of the initiative.[2][5]

Arguments

On its website, Citizens for Energy Choices argued, "Florida has the second-highest electricity usage in the country, so it can be a major expense for homes and businesses alike. But of America’s seven largest states, Florida is the only one that doesn’t allow consumers to choose their own electricity providers. With choice, Florida can save more than $5 billion every year. This economic advantage would help keep Florida a leader among the country’s most populous states. Enacting energy choice in Florida will lower energy bills for all Floridians, expand clean energy options, and improve the reliability of infrastructure."[6]

Opposition

FARELOGO.JPG

Floridians for Affordable Reliable Energy (FARE) led the campaign in opposition to the measure.[7]

Opponents

Officials

Organizations and businesses

Arguments

  • Former Democratic state Representative Robert Asencio, chair of FARE, said, "We cannot allow Florida’s stable energy market to be disrupted by special interests who are only looking out for their bottom line, and not the public interest. Deregulation allows third party providers to come between ratepayers and the power company and charge whatever they want. It also allows them to engage in market schemes that unfairly target our most vulnerable citizens, particularly our seniors, leading to spikes in costs."[7]
  • President and chief executive officer of the Florida Chamber of Commerce Mark Wilson said, "This proposal is a false promise wrapped in a too-good-to-be-true wrapper that has no place in our state's Constitution. Despite claiming to promote choice, it would prohibit Floridians from choosing the very Florida companies that currently serve them."[9]
  • Florida Power and Light spokesman Chris McGrath said, "Deregulation is a historically failed idea that will be harmful for consumers, bad for Florida’s economy and damaging to our state’s clean energy progress. We intend to fight this measure because it’s a disastrous idea pushed and funded by special interests that will hurt Florida’s economic stability and, most of all, our customers.”[10]
  • The Nature Conservancy deputy executive director Greg Knecht said his group opposes the initiative because "passage would likely result in years of delay in solar energy development."[11]

Polls

See also: Ballotpedia's approach to covering polls

In a 2019 poll by St. Pete Polls, voters were asked the following question:[13]

Would you support a state Constitutional Amendment that would deregulate electrical utilities in Florida and allow customers to choose their electricity provider?[3]

Poll results are detailed below.

Florida Changes to Energy Market Initiative
Poll Support OpposeUnsureMargin of errorSample size
St. Pete Polls
5/6/19 - 6/1/19
66.2%20.6%13.2%+/-1.63,790
Note: The polls above may not reflect all polls that have been conducted in this race. Those displayed are a random sampling chosen by Ballotpedia staff. If you would like to nominate another poll for inclusion in the table, send an email to editor@ballotpedia.org.


Background

Market structures by state

As of 2019, 18 states and Washington, D.C. had electric power retail markets that permitted at least some consumers to purchase electricity from competitive retail suppliers. Most of the states (11 of 18) that allowed competitive retail markets were located in the Mid-Atlantic and New England. West of the Mississippi River, California, Oregon, and Texas allowed competitive retail markets for at least some consumers.[14][15]

Nevada Question 3 of 2018

This Florida amendment contains similar provisions to Nevada Question 3, the Changes to Energy Market and Prohibit State-Sanctioned Electric-Generation Monopolies Amendment. Nevada Question 3 was on the ballot in Nevada as an initiated constitutional amendment on November 6, 2018. It was defeated. In Nevada, initiated constitutional amendments need to be approved in two successive general elections. Question 3 was on the ballot in 2016, when voters approved the ballot initiative. Because Question 3 was not approved again on November 6, 2018, the measure did not become part of the Nevada Constitution.

Path to the ballot

See also: Laws governing the initiative process in Florida

The state process

In Florida, the number of signatures required for an initiated constitutional amendment is equal to 8% of the votes cast in the preceding presidential election. Florida also has a signature distribution requirement, which requires that signatures equaling at least 8% of the district-wide vote in the last presidential election be collected from at least half (14) of the state's 28 congressional districts. Signatures remain valid until February 1 of an even-numbered year.[16] Signatures must be verified by February 1 of the general election year the initiative aims to appear on the ballot.

Proposed measures are reviewed by the state attorney general and state supreme court after proponents collect 25% of the required signatures across the state in each of one-half of the state's congressional districts (222,898 signatures for 2024 ballot measures). After these preliminary signatures have been collected, the secretary of state must submit the proposal to the Florida Attorney General and the Financial Impact Estimating Conference (FIEC). The attorney general is required to petition the Florida Supreme Court for an advisory opinion on the measure's compliance with the single-subject rule, the appropriateness of the title and summary, and whether or not the measure "is facially invalid under the United States Constitution."[17]

The requirements to get an initiative certified for the 2020 ballot:

  • Signatures: 766,200 valid signatures
  • Deadline: The deadline for signature verification was February 1, 2020. As election officials have 30 days to check signatures, petitions should be submitted at least one month before the verification deadline.

In Florida, proponents of an initiative file signatures with local elections supervisors, who are responsible for verifying signatures. Supervisors are permitted to use random sampling if the process can estimate the number of valid signatures with 99.5% accuracy. Enough signatures are considered valid if the random sample estimates that at least 115% of the required number of signatures are valid.

Details about the initiative

  • The initiative was approved for circulation on October 5, 2018.[2]
  • As of December 9, 2019, the Division of Elections reported that proponents had submitted 577,861 valid signatures.[2]

Attorney General challenge to ballot language

On March 1, 2019, Florida Attorney General Ashley Moody (R) filed a petition with the Florida Supreme Court requesting the court's written opinion regarding whether or not the initiative's ballot language is misleading and whether or not the initiative complies with the state's single-subject rule. Moody argued that the ballot language "gives the misleading impression that investor-owned utilities would still be able to sell electricity to customers, competing with additional, new providers. But the actual text of the amendment forbids such activity" and that "voters simply will not be able to understand the true meaning and ramifications of the proposed amendment."[18]

Companies and groups that have filed or signed onto briefs arguing against the initiative include Florida Power and Light, Duke Energy, Tampa Electric, Gulf Power, the Florida Electric Cooperatives Association, the Florida Municipal Electric Association and the Florida Public Service Commission.[19]

Citizens for Energy Choice Chair Alex Patton said, "We are confident in our legal position. Clearly, energy choice meets all the requirements of Florida’s statutes, and the court has an established history of reluctance to interfere with citizens’ self-determination. The juggernaut of opposition filings by the [Attorney General], the Senate, the House and the [Public Service Commission] suggests the enormous clout of the IOU state-nurtured monopolies, which in 2014 and 2016 alone gave $43 million in contributions to Florida state level candidates, political parties and PACs, including large amounts to opponents AIF and the Chamber."[7]

The state supreme court heard arguments regarding the ballot language on August 28, 2019. The court did not state when a ruling would come.[20]

On January 9, 2020, the supreme court unanimously found the ballot language to be misleading, blocking the initiative from appearing on the 2020 ballot. The court wrote, "The ballot summary expressly states that the initiative grants the right to sell electricity, and the initiative does not do so." Citizens for Energy Choice chair Alex Patton said, "It's an extreme disappointment that obviously our committee disagrees with, but we respect the rule of law and will govern ourselves accordingly."[21]

See also

External links

Support

Opposition

Footnotes

  1. 1.0 1.1 1.2 1.3 1.4 1.5 Florida Department of Elections, "Initiative 18-10 text," accessed November 14, 2018
  2. 2.0 2.1 2.2 2.3 2.4 2.5 Florida Department of Elections, "Right to Competitive Energy Market for Customers of Investor-Owned Utilities; Allowing Energy Choice 18-10," accessed November 14, 2018
  3. 3.0 3.1 3.2 3.3 3.4 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid <ref> tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid <ref> tag; name "quotedisclaimer" defined multiple times with different content
  4. Tallahassee Democrat, "Florida Supreme Court pulls the plug on 'energy choice' ballot initiative," accessed January 10, 2020
  5. Florida Energy Choice, "Home," accessed November 14, 2018
  6. Florida Energy Choice, "The Issue," accessed November 14, 2018
  7. 7.0 7.1 7.2 7.3 7.4 7.5 Florida Politics, "Group launches effort to oppose 2020 energy deregulation amendment," accessed February 26, 2019 Cite error: Invalid <ref> tag; name "oppo" defined multiple times with different content
  8. Florida Politics, "Florida congressional members latest to oppose ‘energy choice’ amendment," accessed July 29, 2019
  9. 9.0 9.1 9.2 News 4 Jax, "Business groups fight utility ballot measure," accessed January 29, 2019
  10. 10.0 10.1 Miami Herald, "Shop for electricity? Florida voters could decide in 2020" accessed January 29, 2019
  11. 11.0 11.1 Florida Phoenix, "Proposed constitutional amendment on Florida consumer “energy choice” gets fire from all sides," accessed June 20, 2019
  12. Florida Politics, "Florida AFL-CIO passes resolution opposing Energy Choice Amendment," accessed September 26, 2019
  13. St. Pete Polls, "Subject: Florida Statewide survey conducted for StPetePolls.org," accessed June 13, 2019
  14. American Coalition of Competitive Energy Suppliers, "State-by-State Information," accessed September 24, 2018
  15. U.S. Energy Information Administration, "State electric retail choice programs are popular with commercial and industrial customers," May 14, 2012
  16. Before the passage of Florida Senate Bill 1794 of 2020, signatures remained valid for a period of two years
  17. Florida State Senate, "Florida Senate Bill 1794," accessed April 13, 2020
  18. Florida Courts, "Filing # 85753880 E-Filed 03/01/2019 03:48:07 PM," accessed March 26, 2019
  19. CBS Miami, "Utility Ballot Measure Sparks Battle In Florida," accessed June 25, 2019
  20. Florida Politics, "Supreme Court dubious on so-called ‘utility choice’ amendment," accessed September 4, 2019
  21. Tallahassee Democrat, "Florida Supreme Court pulls the plug on 'energy choice' ballot initiative," accessed January 10, 2020