FMPA Weekly | March 23, 2009 | Member Edition

FMPA Weekly

A weekly e-newsletter for FMPA members

March 23, 2009





Budget Committee

FMPA’s Budget Committee met last Friday and approved the budget development schedule for the fiscal year 2010 budget.


Joint Transmission Operations

FMPA hosted a meeting last Wednesday to discuss a potential joint transmission operation program. Representatives of Beaches Energy Services, Homestead, Kissimmee Utility Authority, New Smya Beach and Vero Beach participated. The participants expressed great interest in the program. FMPA staff will investigate costs and develop potential agreements for the program. Contact: Tom Reedy


Florida Gas Utility

Fred Bryant, Mark Larson and Richard Montgomery met with Florida Gas Utility (FGU) last Thursday via conference call to discuss the possibility of FMPA becoming an all-requirements member of FGU, as well as the evaluation process for becoming a member. This could be a solution to several issues including liquidity needs.


Risk Management Meeting

A risk management meeting was held last Tuesday to plan a disaster recovery drill that would focus on communications availability specifically with telephones and e-mail. Communication availability is the focus due to the importance of getting employees back to work quickly and efficiently. It is also being highlighted because the Information Systems Department recently backed up FMPA’s servers, making it an opportune time to test the systems. Contact: Mark Larson


PGP Workshop

Members of the Finance Department and Richard Montgomery met last Tuesday to plan for an inteal workshop on Public Gas Partners (PGP). The workshop would increase familiarity with PGP by explaining its assets and activities. The tentative dates for the two half-day workshops are March 30 and March 31. More information will be available soon. Contact: Mark Larson


Florida Renewables Group

The Florida Renewables Group, which includes FMPA, Gainesville Regional Utilities, Lakeland Electric, the city of Tallahassee, JEA and Orlando Utilities Commission, met last Tuesday. Participants discussed opportunities to collaborate on renewable projects.


Finance Visit

Janet Davis, Mark Larson and Ed Nunez met with representatives from BB&T last Tuesday to discuss possible opportunities regarding loans and lines of credit for FMPA. Contact: Mark Larson



The March issue of “HedgeSite has been posted to the FMPA Member 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 the Energy Supply and Fuels section on the FMPA Member Portal.





Net Metering Reporting Requirement

Today is the deadline to tu in net metering reports to FMPA. Florida municipal electric utilities are required to adopt a net metering policy and standard interconnection agreement by July 1. Despite confusion regarding the initial April 1 reporting date, FMPA members are encouraged to report the required information to the Florida Public Service Commission (PSC) by April 1. FMPA will submit the reports to the PSC on their behalf. Contact: Ann Beckwith or Dan O’Hagan.


Levy County Nuclear Plant

Nick Guarriello and Jody Finklea meet with the Ocala City Council on Tuesday to discuss the Levy County nuclear project.


Energy Spending in the Obama Administration

Ann Beckwith, Chris Gowder, Michele Jackson and Sharon Smeenk will attend the Energy Spending in the Obama Administration webinar on Tuesday at 11 a.m. Participants will lea what federal funding and incentives are available for innovative clean energy projects under the Obama administration and how best to pursue that financial aid.


Paper Work Management Training

The Accounting Department and the Audit and Risk Department will attend training on paper work management on Tuesday and Wednesday. Paper work management will help the two departments with a complete and consistent work paper process that enhances transparency and accountability. With paper work management, information is automatically copied to work paper templates, which will greatly reduce human error enhancing accuracy and efficiency. The training covers all the necessary functions to setup and begin work on accounting and audit projects, as well as suggestions and recommendations for solutions on how to set up and prepare electronic binders and work papers. Contact: Liyuan Woeer


FMEA Legislative Rally

Mark McCain travels to Tallahassee on Tuesday and Wednesday for the annual FMEA Legislative Rally. The rally is an annual opportunity for Florida’s municipal electric utilities to communicate with state legislators. For more information, contact FMEA’s Amy Zubaly.


Policy Makers Liaisons Committee

FMPA’s Policy Makers Liaisons Committee meets Wednesday at the Florida Municipal Electric Association (FMEA) office in Tallahassee at 10 a.m. The meeting coincides with the annual Legislative Rally in Tallahassee, organized by FMEA, and the Florida League of Cities’ Legislative Action Day. Agenda topics include: 1) FMPA’s 2009 Strategic Plan, 2) fuel hedging and transmission costs, 3) current events in individual cities, and 4) FMPA’s Member Portal. 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) language changes to the natural gas and fuel oil risk policy, 2) an additional authorized trader, 3) the auditor selection process and time schedule, and 4) an Information Systems audit. To view the agenda package, visit the 2009 agenda packages section on the Members Portal.


FMPA Board of Directors

FMPA’s Board of Directors meets Thursday in the Board room at 10 a.m. The Board will consider action items including: 1) a Resolution of Appreciation for Bob Williams, 2) options for filling the General Manager and CEO position, 3) evaluation of the Interim General Manager, 4) the 2009 Strategic Plan, 5) an amendment to Article III, section 3 to the Interlocal Agreement creating FMPA, 6) a charter for the Audit and Risk Oversight Committee, 7) a charter for the Business and Budget Committee, 8) the Committee Policy Reporting Statement, and 9) the selection of an independent auditor. To view the agenda package, visit the 2009 agenda packages section on the Members Portal.


ARP Executive Committee

The ARP Executive Committee meets Thursday in the Board room at 11:30 a.m. The Committee will consider action items including: 1) the 2009 Strategic Plan, 2) a charter for the Audit and Risk Oversight Committee, 3) a charter for the Business and Budget Committee, 4) the Committee Policy Reporting Statement, 5) foundation recommendations for Cane Island Unit 4, 6) FMPA’s property and builders’ all risk insurance, 7) language changes to the natural gas and fuel oil risk policy, and 8) a request by the city of Starke. To view the agenda package, visit the 2009 agenda packages section on the Members Portal.


Cane Island Unit 4

A groundbreaking ceremony for Cane Island Unit 4 will be held at the plant site Friday at 8:30 a.m. Speakers will include Nick Guarriello, KUA Board Chairman Fred Cumbie, KUA President and General Manager Jim Welsh and Zachry Engineering Corporation President Gerald Burke. Contact: Diane Nelson


FMPA Logo Apparel

Friday is the deadline to submit orders for FMPA logo apparel. Complimentary logo embroidery is available for two items per employee or Board member each fiscal year. For additional details and order forms, please visit the FMPA’s” rel=”nofollow”>>FMPA’s Web site. Contact: Mike Siefert





FPL Proposes Overall Rate Decrease in 2010

Florida Power and Light filed a proposal with the Florida Public Service Commission last Wednesday that would decrease rates 4.5 percent, an estimated $4.92 per 1,000 kilowatt hours. The rate proposal requests a 32% increase in the base rate, which FPL said would be offset by reductions in fuel costs based on Feb. 9, 2009, fuel price projections for 2010 as well as improvements in fuel efficiency. According to FPL, the proposal would support investment in improving fuel efficiency, generating cleaner energy and enhancing system reliability while keeping customer bills low.


PSC Approves Request to Lower Progress Energy Rates

The Florida Public Service Commission last Tuesday unanimously approved an 11% decrease in Progress Energy’s electric rates beginning in April. The decrease is about $15 per 1,000 kilowatt hours. Progress Energy increased bills by 24% in January to pay for its $17 billion nuclear plant and higher fuel costs. Since then, public outrage prompted the utility to decrease the nuclear charge.


Georgia Regulators Approve Two Georgia Power Plants

The Georgia Public Service Commission (PSC) last Tuesday approved Georgia Power’s application for a certificate to build two Westinghouse AP1000 nuclear units at Vogtle Electric Generating Plant. Additionally, the PSC approved the utility’s request to recover its financing costs beginning in 2011 for its share of the nuclear project through rates. The PSC also unanimously approved Georgia Power’s plan to convert its 155 megawatt coal-fired Michell unit into a 96 megawatt biomass plant. According to the utility, the biomass plant will have lower fuel and operating costs than the existing plant and will generate fewer sulfur-dioxide and nitrogen-oxide emissions. The plant is scheduled to be converted by June 2012.


Natural Gas Storage Plant on Hold

Floridian Natural Gas announced last Wednesday that plans for a natural gas storage plant near Indiantown, Fla., are on hold because large state utilities, such as Florida Power and Light, have decided not to join the project. Floridian claims the project would reduce customer bills by purchasing natural gas when it is cheap, then store it for peak-demand use. The giant storage tanks would also cut greenhouse gas emissions because power plants would not have to bu fuel oil at high-demand periods when natural gas pipelines are full. The plant was slated to begin construction early this year and be completed in 2012.



FMPA Weekly is published by FMPA for employees and goveing boards of FMPA member utilities. Questions or comments about this newsletter may be directed to Diane Nelson or Beth Pangbo in FMPA’s Public Relations Department.


Want more background on the names and terms used in this newsletter? Check out FMPA’s new Glossary, which features some of the most frequently mentioned committees, companies, places and terms, or contact the person named in each FMPA story to lea more. (Click here for the Staff Directory).


Have a question, comment or story idea for the newsletter? FMPA welcomes your feedback at any time. Contact Diane Nelson.