FMPA News for the week of January 19

 

Community Power. Statewide Strength.

 

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LAST WEEK

 

The Mercer Report
A copy of The Mercer Group’s Management Review Report was sent to FMPA’s Board of Directors in agenda packages and delivered to staff through a link on InSite. Steve Egan from Mercer will present the report to the Board this Thursday. The full report is located in the Board package, item 6a on pages 122-327. To view the report, visit FMPA’s Member Portal, https://portal.fmpa.com/index.php?option=com_docman&task=doc_download&gid=731&Itemid=366;.

 

Strategic Planning Pre-Workshop Input
Telephone interviews were completed with members last Thursday in preparation for FMPA’s Strategic Planning Workshop. The workshop will be held on Feb. 5 and Feb. 6 at FMPA’s office in Orlando. The interviews were conducted by Jean Freeman, the workshop’s facilitator, with a representative sample of the Board of Directors and ARP Executive Committee. The purpose of the calls was to obtain initial feedback that will be used to gather input from every member. Last Friday, Nick Guarriello sent an e-mail to all Board and Executive Committee members plus alteates inviting them to complete an online survey. The objective of this feedback tool is to obtain input on, among other things, FMPA’s mission, strengths, weaknesses, opportunities and threats. The answers provided will not be viewed as conclusive or used to limit discussion at the strategic planning session. Rather, the purpose is to complete some advance work in order to efficiently use time at the workshop. The online feedback form should only take a few minutes to complete. The deadline for responses is close of business on Monday, Jan. 26. Results will be shared at the planning workshop. Contact: Mark McCain

 

Debt Restructuring Update
The ARP Executive Committee gave approval in December to use proceeds from the All-Requirements Project’s 2008 bond issue to post collateral and pay for natural gas hedging costs. Approximately $31 million will be deposited to the General Reserve Fund for posting at Newedge, FMPA’s brokerage firm. The money that is currently posted at Newedge will be retued to the Operating and Maintenance Fund to repay the project’s line of credit. Contact: Janet Davis

 

Impact of Credit Rating Downgrade
FMPA’s Finance Department, with input from FMPA’s financial advisor, added a memorandum to the ARP Executive Committee’s agenda package explaining the consequences of a hypothetical credit rating downgrade for FMPA’s projects. Due to the impacts of a credit rating downgrade, active risk management involves periodic review of FMPA’s contracts, some of which contain clauses regarding a change in the credit rating of either contract party. For a complete copy of the memorandum, see item 7d on pages 252-256 of the
FMPA Executive Committee agenda package. Contact: Janet Davis

 

HedgeSite
The January issue of HedgeSite has been posted to the Members Portal. HedgeSite is a newsletter produced by FMPA’s Marketing and Fuels staff. This issue features overviews on hedging, storage and physical gas. To read the issue, visit FMPA’s Member Portal, https://portal.fmpa.com/index.php?option=com_content&view=article&id=121:hedgesite-newsletter-posted&catid=42:latest-news&Itemid=491;.

 

Engagement
Congratulations to Tina Garza and her boyfriend of two years, James Allen, who were engaged Jan. 17. The date of the wedding has not been selected yet. Best wishes to the happy couple.

 

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THIS WEEK

 

Audited Financial Statements Workshop
FMPA hosts conference call workshops Tuesday and Wednesday to discuss FMPA’s fiscal 2008 audited financial statements. Workshop times are 9 a.m., 11 a.m., 1 p.m. and 3 p.m. both days. Dial (866) 411-8247 and enter participant code 13272 to access the call. Contact: Jim Atz

 

Human Resources Roundtable
FMPA’s Human Resources Roundtable will be held Wednesday at New Smya Beach Utilities at 10 a.m. Participants will discuss topics such as benefits, recruiting, training and employee retention. For more information, visit FMPA’s Web site,
http://fmpa.com/html/member_services/pdf/calendar/HR_Roundtable_01_2009.pdf” target=_blank>http://fmpa.com/html/member_services/pdf/calendar/HR_Roundtable_01_2009.pdf;. Contact: Mike Siefert

 

Policy Makers Liaisons Committee
FMPA’s Policy Makers Liaisons Committee meets Wednesday in the Board room at 2 p.m. Participants will discuss: 1) APPA’s Legislative Rally, 2) federal economic stimulus package and infrastructure projects, and 3) potential federal and state legislative issues related to electric utilities. Contact: Mark McCain

 

Risk Oversight Committee
FMPA’s Risk Oversight Committee meets Thursday in the Board room at 9 a.m. The Committee will consider action items, including: 1) energy risk policy hedge position variance, 2) FMPA’s Risk Management Policy on natural gas and fuel oil, and 3) the annual risk assessment. To view the agenda package, visit FMPA’s Member Portal,
https://portal.fmpa.com/index.php?option=com_docman&task=cat_view&gid=166&Itemid=366;. Contact: Rich Popp

 

FMPA Board of Directors
FMPA’s Board of Directors meets for a special-called meeting Thursday in the Board room at 10:30 a.m. The Board will consider action items, including: 1) the annual audit report and related auditor communications, and 2) new interest rate swap counterparties. The Board will also hear a presentation on The Mercer Group’s Management Review Report. To view the agenda package, visit FMPA’s Member Portal,
https://portal.fmpa.com/index.php?option=com_docman&task=cat_view&gid=166&Itemid=366;.

 

ARP Executive Committee
The ARP Executive Committee meets Thursday in the Board room at 11:30 a.m. or immediately following the Board of Director’s meeting. The Committee will consider action items, including: 1) the annual audit report and related auditor communications, 2) appealing the Federal Energy Regulatory Commission’s Dec. 22 order in a transmission case, 3) new interest rate swap counterparties, 4) storm water pond modifications at Treasure Coast Energy Center, 5) an amendment to the Cane Island Unit 4 engineering, procurement and construction contract that provides an agreement and an allocation of savings related to constructability improvements, and 5) a casual part-time Member Services Engineer position. To view the agenda package, visit FMPA’s Member Portal,
https://portal.fmpa.com/index.php?option=com_docman&task=cat_view&gid=166&Itemid=366;.

 

Goveance Committee
FMPA’s Goveance Committee meets Thursday at 2:30 p.m. in the Board room. Members will discuss: 1) FMPA’s Interlocal Agreement for the Board of Directors quorum and voting change, 2) the Committee Reporting Policy statement, 3) the Audit and Risk Oversight Committee charter, 4) the Business Planning and Budget Committee charter, and 5) the evaluation process for the General Manager and General Counsel.

 

Climate Change Workshop
FMPA’s Understanding Climate Change workshop is scheduled for Feb. 12 at 10 a.m. in the Board room. This workshop will provide an overview of the climate science debate, proposed state and national legislative solutions, and the impact on electric utilities. The course also reviews CO2 control technologies, the Department of Energy 1605(b) program and how to develop a greenhouse gas inventory for your utility. Professional Engineers can ea four Professional Development Hours for completion of the course. To register, visit FMPA’s Web site at
http://fmpa.com/html/member_services/pdf/calendar/Understanding_Climate_Change_Workshop.pdf” target=_blank>http://fmpa.com/html/member_services/pdf/calendar/Understanding_Climate_Change_Workshop.pdf;. Contact: Mike Siefert

 

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IN THE INDUSTRY

 

FDEP Approves Progress Energy’s Proposed Nuclear Plant
The Florida Department of Environmental Protection issued a “conditions of certification report last Monday that approved plans for Progress Energy’s proposed nuclear plant in Levy County. The approval conditions included: 1) any direct environmental impacts to wetlands must be offset through mitigation, 2) monitoring wells must be maintained, and 3) Progress Energy’s two Crystal River coal-fired units must be retired once the nuclear plant is complete in 2017. For a complete copy of the report, visit
ftp://ftp.dep.state.fl.us/pub/siting/Outgoing/PEF%20Levy/PEF%20LNP%20SAR/PEF%20LNP%20Final%20Plant%20SAR%20w-attachm.pdf” target=_blank>ftp://ftp.dep.state.fl.us/pub/siting/Outgoing/PEF%20Levy/PEF%20LNP%20SAR/PEF%20LNP%20Final%20Plant%20SAR%20w-attachm.pdf;.

 

KEYS’ Heandez Appointed to APPA Council
The American Public Power Association appointed Keys Energy Services Board Chairman Lou Heandez to the Association’s Policy Makers Council. The 40-member Council promotes the federal legislative interests of public power systems. Heandez has served on the KEYS Utility Board since 1997 and is the Executive Director of HELPLINE, Inc., a crisis intervention and information referral telephone hotline in Monroe County.

 

KUA Begins Demolition of Storage Tanks
Kissimmee Utility Authority began demolition last Tuesday of two 500,000-gallon, above ground diesel storage tanks at its Roy E. Hansel Generating Station. The station began operating solely on natural gas as of Jan. 1, 2008, eliminating the need for the tanks. The three-acre site passed extensive soil and water contamination testing prior to demolition and will be tued over to the city of Kissimmee to be included in the expansion of Lakefront Park.

 

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SPECIAL DATES

 

Congratulations to Hector Mesa, who celebrates one year with FMPA on Wednesday, Jan. 21.

 

Happy birthday to Doug Smith, who celebrates on Sunday, Jan. 25.

 

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