Duke Energy Florida sees depreciation rates on two in-construction solar projects

Duke Energy Florida LLC on Jan 11 petitioned the Florida Public Service Commission for approval to begin depreciating new solar photovoltaic generating units and associated equipment over a 30-year period effective with the in-service dates of the units.

DEF, which is a subsidiary of Duke Energy (NYSE: DUK), is seeking depreciation rates that will apply to solar photovoltaic generating units and associated equipment at solar facilities that it is constructing in Taylor County, Florida (Perry Solar Facility) and Osceola County, Florida (Osceola Solar Facility) and to such other solar photovoltaic generating units that may be constructed in the future. Performance warranties from vendors of the equipment being utilized for the facilities, as well as information from industry groups, generate an estimated design life of 30 years.

  • The Perry Solar Facility involves construction of a 5.1-MW photovoltaic system located on company-owned land in the DEF territory.
  • The Osceola Solar Facility involves construction of a 3.8-MW photovoltaic system located on company-owned land in the DEF territory.

For both facilities, DEF will own all equipment associated with the facility and the energy output. Other solar photovoltaic projects may be considered and constructed in the future, Duke noted.

Duke Energy Florida had announced in October 2015 plans for the Perry project. Perry is one of many steps Duke Energy Florida is taking to provide customers greater access to renewable energy. It is the second solar facility in a strategic, long-range plan to install 35 MW of solar by 2018 and up to 500 MW of solar in the state by 2024. The first solar facility, a 3.8-MW project announced on Sept. 30, 2015, will be located in Osceola County.

This comes on the heels of Duke’s announced construction of a 5-MW solar facility that will serve the Reedy Creek Improvement District, the power provider to Walt Disney World, and a rooftop solar and battery storage project developed in conjunction with the University of South Florida St. Petersburg.

The Perry Solar Facility is being built on land that the company acquired adjacent to the utility’s Perry substation, across the street from the Taylor County Elementary School. The facility will connect directly to the distribution system near the existing 230-kV substation without additional easements or extensive line construction.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.