FMPA Weekly
A weekly e-newsletter for FMPA members
May 26, 2009
LAST WEEK
Board of Directors
FMPA’s Board of Directors met for a special-called meeting last Thursday and approved action items, including: 1) selection of Swap Financial Group as FMPA’s swap advisor, 2) selecting Purvis Gray and Company as FMPA’s independent auditor, 3) distribution engineering services contracts with PowerServices, Jones Edmunds and Fred Wilson and Associates, and 4) a contract with Nick Guarriello.
Nick Guarriello Selected to Become FMPA General Manager and CEO
The FMPA Board of Directors selected Nick Guarriello to become FMPA’s General Manager and CEO. Nick has more than 30 years of experience in the utility industry, including serving as R.W. Beck’s President and CEO. He currently serves as FMPA’s Interim General Manager, a position he has held since September 2008.
ARP Executive Committee
The ARP Executive Committee met last Thursday and approved action items, including: 1) use of current excess bond proceeds, 2) selecting Purvis Gray and Company as FMPA’s independent auditor, 3) proceeding with negotiations for biomass capacity, and 4) responding to suggestions by the city of Fort Meade.
ARP Business Model Work Group
The ARP Executive Committee responded last Thursday to suggestions made by the city of Fort Meade at the Committee’s previous meeting. Committee members voted to reconsider motions that were tabled at the previous meeting. They instead voted to form a subgroup to look at the All-Requirements Project’s business model as part of FMPA’s strategic plan implementation. The new group, known as the ARP Business Model Work Group, will include Fred Hilliard of Fort Meade, Tom Richards of Fort Pierce, Gregg Griffin of Green Cove Springs, Lynne Tejeda of Key West, Larry Matte of Kissimmee, Rebecca Mattey of Lake Worth, Matt Brower of Ocala and Ricky Thompson of Starke. The Work Group-which is open to other All-Requirements participants who want to volunteer now or in the future-will have its first organizational meeting on June 25, immediately following the ARP Executive Committee meeting.
Biomass Power Purchase Agreements
The ARP Executive Committee last Thursday authorized FMPA staff to negotiate two biomass power purchase agreements. The first agreement is with SI Energy Group for 5.5 megawatts from an existing facility in Monticello, Fla. The second agreement is with Ocala Equine Energy, LLC for 10 megawatts from a proposed facility in Ocala. The agreements will be presented to the Executive Committee at a future meeting for consideration. Contact: Michele Jackson
Business Planning and Budget Committee
The Business Planning and Budget Committee met last Friday and voted to recommend to the Board of Directors amended fiscal year 2010 budgets for the St. Lucie, Stanton, Tri-City and Stanton II projects, as well as fiscal 2010 Agency budget allocations for those projects. The Committee will meet again June 8 at 10 a.m. to consider amended Agency and All-Requirements Project budgets.
New Appointment to Business Planning and Budget Committee
Tom Richards, chairman of the ARP Executive Committee, appointed Larry Matte of Kissimmee Utility Authority (KUA) to replace Joe Hostetler of KUA on the Business Planning and Budget Committee effective immediately. Joe has ably served on the Committee for years but will be unable to continue due to other demands for his time. He will continue to chair the Audit and Risk Oversight Committee.
Audit and Risk Oversight Committee
The Audit and Risk Oversight Committee met last Thursday and approved McNeary to provide insurance consulting services for a rolling one-year term, beginning Oct. 1, 2009. The Committee also welcomed two new members: Barbara Quinones of Homestead and Claston Sunanon of OUC. This was the first time the Committee met under its new charter, which now includes expanded responsibilities for the audit function. Also at the meeting, Committee Chair Joe Hostetler complimented the recent issue of FMPA’s HedgeSite newsletter, saying it was very informative.
Nominating Committee
The Board of Directors’ Nominating Committee met last Thursday and discussed the process to develop a short-list of candidates for officers of the Board of Directors. The Committee is scheduled to meet again June 1 by telephone at 8:30 a.m.
Wachovia Expands Line of Credit
FMPA received verbal confirmation last week that Wachovia bank has agreed to increase FMPA’s line of credit from $125 million to $175 million for a temporary period to help the Agency as it works through its natural gas hedge positions. Contact: Mark Larson
Member Services Survey Deadline Extended
FMPA extended the deadline for its Member Services Survey and launched a convenient online version of the survey. The survey allows members to rate current services and provide feedback for improvement. Surveys are now due on June 12. FMPA members can complete the survey online at http://tinyurl.com/FMPAMemberServices09>http://tinyurl.com/FMPAMemberServices09; or retu the hard copy that was mailed a few weeks ago. Contact: Mike Siefert or Sharon Samuels
FMEA, FMPA Partner on Hurricane Season Communication Tools
FMEA and FMPA are working together again this year to help members communicate with customers and the media about the upcoming hurricane season. Over the next several months, FMEA and FMPA members will receive e-mails from both organizations with communication tools and suggestions. These e-mails will be jointly sent by both organizations, so some members may receive the same e-mail twice. Last week, FMEA and FMPA sent a press release with hurricane readiness tips. The next tool will be sent in late-June. Contact: Diane Nelson
Executive Committee Appointment
Newberry has appointed Commissioner Bill Conrad to serve as the city’s representative on the ARP Executive Committee. Keith Ashby will be the city’s alteate on the Committee.
THIS WEEK
GenOps Meeting
A GenOps meeting is scheduled for Tuesday in the Board room at 10 a.m. The GenOps group meets bi-monthly to discuss topics related to operations. Contact: David Schumann
Good Guys
The Good Guys, a group of CEOs from some of the region’s largest consumer-owned electric utilities, meet Wednesday in the Board room at 10 a.m. Contact: Sue Utley
Member Visits
Bud Boudreaux travels to the city of Williston and to Gainesville Regional Utilities on Thursday for member city visits.
Disaster Recovery Drill
FMPA will hold a disaster recovery drill on Friday from 7 a.m. to 9:30 a.m. The purpose of the drill is to determine what happens when technology systems are fully utilized by staff working remotely, and to determine where communication and work-flow breakdowns might occur. Business will be conducted as usual during the drill. Contact: Rich Popp
Economic Stimulus Workgroup
The Economic Stimulus Workgroup meets Friday via conference call at 9 a.m. For more information on the Economic Stimulus Workgroup, visit the FMPA Member Portal. Contact: Michele Jackson
All-Requirements Project Load
The weekly update of the All-Requirements Project historical load graph has been posted on the Member Portal. The graph is updated through May 24. Contact: Jim Atz
COMING UP
Solar PV
A solar review team, comprised of representatives from Black & Veatch, Florida Solar Energy Center and FMPA, will meet June 1 to recommend a vendor for solar photovoltaic installations in FMPA member cities. The recommendation will be reviewed by the Conservation and Renewable Energy Advisory Committee on June 9 prior to consideration by the ARP Executive Committee on June 25. Contact: Sharon Smeenk
Conservation DVD
Shooting for the energy conservation DVD project for the All-Requirements’ Conservation Fund is scheduled for June 3 and June 4 in Jacksonville. KUA’s Vice President of Corporate Communications Chris Gent will provide production guidance and oversight, and Beaches Energy Services energy auditor Rik Amato will provide technical oversight. Member cities interested in purchasing copies of the DVD should remember to allocate funds from their conservation account. Contact: Sharon Smeenk
INDUSTRY NEWS
PSC Approves Progress Energy Rates
The Florida Public Service Commission (PSC) approved Tuesday interim rates for Progress Energy Florida and cost recovery charges for unit upgrades. The interim rate will increase customer bills by 41 cents per 1,000 kilowatt hours, taking effect in July. Cost recovery charges to upgrade four generating units from oil to natural gas at Progress Energy’s Bartow facility will increase customer bills by $4.11 per 1,000 kilowatt hours, also taking effect in July.
Climate Bill Approved by House Committee, Other Committee Stops Remain
The House Energy and Commerce Committee voted, largely along party lines, to endorse a mandatory cap on greenhouse gases that would cut emissions 17% by 2020. Democrats largely held together in support of the nearly 1,000-page bill. Only one Republican supported the bill, as GOP opponents unified against the measure, insisting it was a costly and unattainable measure to be pushing in a down economy. During the week-long markup, Democrats defeated a number of GOP amendments that would have scuttled the cap-and-trade program if it prompted job losses or energy price increases. Democratic sponsors hailed the bill’s historic passage, the first time a House committee has endorsed a mandatory cap on greenhouse gases that scientists have linked to global warming. Before the bill moves to the full House, several other House committees will have a chance to assert jurisdiction over the legislation, with the Democratic leaders of the Agriculture and Ways and Means committees threatening to hold up the bill for their own reasons. House Speaker Nancy Pelosi (D-Calif.) is expected to play a key role in shepherding the legislation onto the floor, perhaps before the August recess. Senate action remains a work in progress, particularly on the cap-and-trade provisions that remain well short of the 60 votes needed to defeat a filibuster. President Obama backs the climate and energy bill but has largely stayed away from the details of the legislation.
Senate Committee Issues Draft Energy Bill Provisions
The Senate Energy and Natural Resources Committee released a majority draft renewable electricity standard (RES) last week. The RES proposal calls for all utilities-investor-owned, municipals and cooperatives-to produce 15% of generation from renewables by 2021, though energy efficiency could be used to meet part of the standard. The mandate would only apply to retail utilities that sell more than four million megawatt hours per calendar year, which at this time excludes all Florida municipals, except JEA and OUC. The Committee is currently developing energy legislation, but unlike the House, the Senate is concentrating only on producing an energy bill, choosing not to deal with climate change at this time. Over the last several weeks, the Senate panel has drafted several titles, but members have serious conces about key issues, including transmission, cyber security and RES. The Senate Committee hopes to approve its bill in June.
Carbon Capture and Storage Demonstration Planned by Southe Company
Southe Company announced plans last week to demonstrate carbon capture and storage (CCS) technology at a coal-fired power plant near Mobile, Ala. CCS technology separates carbon dioxide (CO2) from the flue gas released by a coal plant, then compresses and stores the CO2 underground. The demonstration project would pipe CO2 captured at Alabama Power’s Plant Barry to underground storage about 10 miles away at the Citronelle Oil Field. The demonstration, scheduled to begin in 2011, would capture between 100,000 and 150,000 tons of CO2 per year, which is equivalent to the emissions from 25 megawatts of the plant’s capacity.
NERC reports lower demand, more resources in US
The North American Electric Reliability Corporation (NERC) reported last Tuesday in its annual summer outlook that the peak demand for electrical power for summer 2009 is expected to be 1.8% lower than last year. The August peak is expected to be 850,433 megawatts. NERC cites the recession as the reason for lower demand. The outlook also noted coal and natural gas supplies appear adequate, and wind capacity has increased 45% to 30,000 megawatts from this time last year.
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.