1970–1989 OUC Develops Programs to Encourage Customer Conservation As a result of the energy crisis and drought of the previous decade, conservation played a prominent role in the 1980s. To help reduce
As a result of the new structure, high energy users were charged a higher rate. In 1984, OUC began its Home Energy Audit
Florida’s dependency on foreign oil, the state
program — and it was a resounding success.
ordered utilities to conduct programs to
On the first day, more than 300 customers
lower power consumption. In response, OUC
swamped OUC with requests for audits
developed numerous conservation initiatives,
(Orlando Sentinel, May 3, 1984). In addition to
which served as the foundation of OUC’s
waiving the usual $15 fee, the program paid
energy and water conservation efforts. Most
$5 to customers who had audits. OUC also
have been expanded over the years and are
gave participants a one-time $10 credit for
still in place today.
buying energy-efficient appliances and a free
During this period, OUC revamped its rate structure for energy use to encourage
water-heater jacket, which saved them about $2 a month off their electric bill.
conservation as part of a state-mandated plan.
In 1985, OUC introduced a Low Income
Prior to this time, high energy users received
Home Energy Fix-up Program for homeowners
a discounted rate because it cost OUC less
who could not afford to make the minor repairs
to generate large amounts of electricity.
and improvements needed to save energy.
Harry Luff: “Architect of OUC Financial Systems” General Manager (1983–1986)
H
arry Luff had a distinguished 40-year career at Orlando Utilities Commission. With an engineering degree from Brown University, Luff began his tenure at OUC in 1946 at the bottom — chipping slag off the boilers. He worked numerous positions in the plant where his familiarity with the operation of complex steam power plants and his ability to effectively analyze problems caused management to take notice. His attention to detail and ability to develop systems, processes and programs to solve problems catapulted him through the ranks — first as head of the electric operations department, then as Assistant
General Manager in 1967 and finally as General Manager in 1983. However, it was Luff’s financial acumen that enabled OUC to fund rapid expansion and investment in new technology. Curt Stanton remembers meeting Luff: “First time I ever saw him, he was crawling out of the boiler with an old sailor hat on, and I tell you he looked like . . . he was just covered with coal.“ Stanton soon learned that Luff’s willingness to roll up his sleeves and get into the nitty-gritty details would become a tremendous asset to OUC.
“In July 1967, Curt Stanton asked me to be his assistant general manager,” Luff recalled. “I wasn’t sure what my duties would be, but Curt assured me he had a lot of special assignments in mind. As it turned out, there were more assignments than I could handle alone. I assembled a strong team that developed the first cashflow diagrams ever used at OUC and a new depreciation system. We established formulas for fair payments to the City and County, as well as an electric and water ratemaking system. As an outgrowth of
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these activities, we established a basis for using corporate financial modeling for long-range financial planning to study the impact of major system expansion on rates. Curt assigned us to work with bond issues and underwriters handling the finances for major plant additions. We found out the real issues that impact rates. It was a shock for a past plant engineer who thought that plant efficiency was everything in holding down rates to find out how many millions of dollars could be saved through sharp management of financing. In a highly capital-intensive business like electric utilities, the amount that can be saved is awesome.”