Roundtable: Powering the

®oundtable:

Powering the community

From solar to natural gas, energy generation is evolving. Tampa Bay utility leaders discuss the challenges and changes in the industry.

Archie Collins

President & CEO Tampa Electric

What is the government’s role in developing solar energy? The way I look at renewable investment, which is a central element of TECO’s strategy, is that customers want us to do this, provided that it is done at a pace they can afford. Socially, it is the right thing to do, and it falls upon private companies like Tampa Electric to determine how to make these projects cost-effective. The investments we have made – and will continue to make over the next three years – are cost-effective because they are done at scale. Having said that, the federal government can play a role in helping support innovative new technologies, including energy storage, which can further improve the economics and efficiency of renewable investments. And at the state level, a stable regulatory environment is always important to the overall health of the electricity sector.

What are some of the biggest challenges facing Tampa Electric and what is your outlook for the energy industry? Climate change is certainly a worry, and as a result we are working hard to strengthen and modernize our system. Fuel supply is another concern because it all comes from out of state, and pricing can be unpredictable. This is one of the many benefits of investing in solar energy. I also think we need to improve the diversity of our workforce at all levels, so that we do a better job of reflecting the community we serve.

That said, I am very optimistic about the future. This community remains a destination of choice, it is growing quickly, and the employees at Tampa Electric are proud to do their part to support and enable that growth.

Anddrikk Frazier

President & CEO Integral Energy

How will the Biden administration impact your business? We know this administration has a keen awareness of climate change and sustainability. From the energy standpoint, that plays to our advantage. I think we’ll see some regulations put in place and diversification of energy systems. Investment in technology, whether by subsidy or by grant, will be important to make us more self-sustaining and create jobs. There is the notion that getting rid of fossil fuels will destroy jobs and the reality is the opposite. The biggest challenge to renewable energy is cost, especially now with the pandemic’s influence. There will be price increases for all utilities and this will impact people’s pockets. People are also resistant to change. Generationally, there is a large proportion of the workforce that is still resistant to new developments. This is why it’s so important to have a smooth energy transition as well as diversification of energy sources.

How well positioned is Tampa’s energy infrastructure to handle population growth? The infrastructure definitely needs some hardening, from transportation to energy and water. As we get further from the city, natural gas is not as readily available. I think there will be a bigger focus on that. There has been a lot of emphasis placed on solar from the utilities in Florida but one of the problems is the location scouting for a solar plant. Micro grids and distributed generation may start to come into play. Pasco County is very well positioned for growth, as is the I-4 Corridor between Orlando and Tampa. We have opportunities to be a smarter version of Atlanta and if we don’t take the opportunity, this could be a mess in the coming years. What is Duke Energy’s approach to clean energy and sustainability? One of our priorities is generating greener energy. Between 2018 and 2022, we are adding 700 megawatts (MW) of solar to our Florida generating capacity, which brings us to 900 MW of solar in service or under construction right now. A megawatt serves about 1,000 residential homes. Additionally, we are committed to building another 750 MW, that’s another 10 sites between 2022 through 2024. We have strong momentum, and our goal is to ensure that we’re delivering on sustainability and a greener future.

How do you prepare for extreme weather? The cold snap in Texas this year put a lot of attention on the generation and delivery of power. Users don’t usually think about the technical operational pieces that happen behind it but, like a lot of other utilities, we spend 365 days a year focusing on extreme preparation. For us, it’s usually not cold, it’s more about hurricanes and tropical storms, so we must plan for all of it. We do that through a diverse generation mix. We also have a demand-side management program in which customers can voluntarily participate. The program allows us to interrupt service to a pool pump, air conditioning or heat, to decrease the demand and allow us to continue to provide service without any type of major interruption, like blackouts. The case of Texas was more of a generation challenge than it was the recovery from damaged poles, wires and similar equipment. We are also part of a nationwide interconnected power network that enables power to be exchanged between utilities.

Melissa Seixas

President – Florida Duke Energy

( ) and interest rate floors. As well, lenders asked that borrowers enter into Pre-Negotiation Agreements, or set limits to construction dollars on in-process deals, as a way for them to shore up reserves. In return to putting these burdens on borrowers, lenders considered waiving fees to exit.

As normalcy returns and the economy booms, as expected, so too should construction lending return to previous levels.

Residential In Tampa Bay, as with the rest of Florida, there is a persistent seller’s market, which has been driving up home prices in the region. This is due mainly to the inflow of new residents snapping up single-family homes. While prices are still low, comparatively, they are expected to continue rising, which brings hope of strong appreciation in the next few years, a plus for investors. In fact, Tampa is in the Top 10% percent for home appreciation value, and since 2012, the median home price has appreciated about 124%, from $112,000 to 251,387.

In the entire Tampa Bay region, there is less than two months of available inventory, down by 21% from last year (5.5 months inventory is the benchmark for a balanced market, anything lower indicates a seller’s market). Of the homes available, one and two-bedroom detached single-family homes are the most popular in the region, though apartments, duplexes and townhouses are also popular.

While in the long term, Tampa is predicted to remain a safe bet for homeowners, there are some who predict a market correction. In a Forbes report, real estate billionaire Jeff Greene said that the high prices are

One of the greatest challenges to the construction industry is the current state of the global supply chain.