FMPA Weekly | July 13, 2009 | Member Edition

FMPA Weekly

A weekly e-newsletter for FMPA members

July 13, 2009




St. Lucie, Stanton, Tri-City and Stanton II Projects

Participants in the St. Lucie, Stanton, Tri-City and Stanton II projects met last Friday by conference call and voted to recommend bond issues for the projects to the Board of Directors for approval.


Cane Island Unit 4 Approvals

Cane Island Unit 4 received two key approvals last week. KUA’s Board of Directors approved construction contracts for transmission and substation upgrades related to the project. The Florida Department of Environmental Protection approved a hydrostatic test water discharge plan, which will allow testing of the new unit’s water piping by pumping pressurized water into the pipes.


Levy Nuclear Plant

FMPA submitted another round of comments to Progress Energy last week on draft joint ownership and operation and maintenance agreements for potential participation in the proposed Levy County Nuclear Plant.


Local Contracting and Spending for Cane Island Unit 4

FMPA and its partners at KUA and Zachry are working to maximize the positive impacts Cane Island Unit 4’s construction will have on the community and the region. This means working with Florida contractors, especially local businesses, whenever possible. The project recently contracted with more than a dozen different Central Florida companies, including: ABB Inc., Airgas South, CMC Steel Fabricators, Crane Rental Inc., Hertz Equipment Rental, H&E Equipment Services, Kirk’s Ice Service, Neff Rental, Palmer Feed Store, RSC Equipment Rental, Sherwin Williams, Siles and Sons Inc., Terracon Consultants Inc., Tri-Tech, and United Rentals. Altogether, the project has spent more than $12 million at more than two dozen Florida businesses.


Information Systems Audit

Auditors from Protiviti completed their on-site work last week for FMPA’s information systems audit, and the audit will be completed later this month. The audit focuses on the security and change controls on all of FMPA’s network segments and software applications, as well as the security of each of FMPA’s locations. Contact: Carter Manucy



A new issue of “HedgeSite has been posted on 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.





Cane Island Unit 4 Monthly Meeting

Representatives from FMPA, KUA, Zachry and Black & Veatch meet Tuesday at the Cane Island Power Park for the Cane Island Unit 4 project’s monthly meeting. Contact: Steve Carroll


Natural Gas Webinar

Members of FMPA’s Audit and Risk Department and Marketing and Fuels Department will attend a webinar on natural gas pricing and markets Tuesday in the Board Room at 2:30 p.m. Topics of discussion will include natural gas’ role in the U.S. energy supply, demand for natural gas, price drivers in the market, transmission and distribution infrastructure, the future of natural gas supply, the role of LNG, implications of U.S. energy policy on the fuel market, and future outlook. Any other interested staff are welcome to participate. Contact: Steve Ruppel


FMEA-FMPA Annual Conference

The 2009;


Smart Grid Funding Workshop

Members jointly applying for Smart Grid project funding will hold a workshop Tuesday at the FMEA-FMPA Annual Conference in Palm Beach Gardens from 10 a.m. to 4 p.m. Participants will work on beginning the application process with assistance from R.W. Beck. Contact: Mike Siefert


Policy Makers Liaisons Committee

FMPA’s Policy Makers Liaisons Committee meets Thursday at the FMEA-FMPA Annual Conference in Palm Beach Gardens at 3 p.m. The Committee will elect officers and approve a meeting schedule for 2009-2010. Participants will also hear an informational briefing on FMPA’s rate-setting methodology and conduct a roundtable discussion of current events in their cities.


Audit & Risk Oversight Committee

FMPA’s Audit and Risk Oversight Committee meets Friday at the FMEA-FMPA Annual Conference in Palm Beach Gardens at 8 a.m. The Committee will consider action items including: 1) short listing bidders for natural gas risk management and natural gas storage, 2) restructuring the 2011 hedge position, and 3) obtaining firm natural gas transportation capacity from Transco Station 85 South.


Board of Directors

FMPA’s Board of Directors meets Friday at the FMEA-FMPA Annual Conference in Palm Beach Gardens at 9 a.m. or immediately after the Audit and Risk Oversight Committee. The Board will consider action items including: 1) evaluation of the General Manager, 2) selection of grant-writing firms to assist member cities, 3) fiscal year 2010 budgets for the St. Lucie, Stanton, Tri-City and Stanton II projects and fiscal 2010 Agency budget allocations for those projects, 4) bond issues for the St. Lucie, Stanton, Tri-City and Stanton II projects, 5) a safety training agreement with Electric Cities of Georgia, 6) engagement letters with Swap Financial and National City/PNC, and 7) action items to implement the Strategic Plan. The Board is also scheduled to elect officers for 2009-2010.


ARP Executive Committee

The ARP Executive Committee meets Friday at the FMEA-FMPA Annual Conference in Palm Beach Gardens at 10:30 a.m. or immediately after the Board of Directors. The Committee will consider action items including: 1) Agency and All-Requirements Project budgets for fiscal year 2010, 2) updates to the All-Requirements Project’s conservation program and renewal of the program for fiscal year 2010, 3) restructuring the 2011 hedge position, 4) action items to implement the Strategic Plan. The Committee is also scheduled to elect officers for 2009-2010.


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 July 12. Contact: Jim Atz


Service Anniversaries

Congratulations to Sharon Samuels, who celebrates 11 years with FMPA on Monday, July 13.


Congratulations to Mike Siefert, who celebrates one year with FMPA on Tuesday, July 14.





New Newsletter: Risk Link

FMPA’s Risk Management Department has introduced a new bi-monthly newsletter, known as Risk Link. Developing risk awareness within an organization is an integral part of enterprise risk management, so FMPA created Risk Link. The newsletter will communicate risk management concepts to members and staff and provide updates on FMPA’s risk management activities. Read Risk Link on the Members Portal now.


FGU Audit

FMPA’s Audit and Risk Department is working with Florida Gas Utility (FGU) to develop a scope for the first-ever audit of FGU’s billings to All-Requirements. The audit is scheduled for this fall. Contact: Rich Popp


All-Requirements 101

Mark your calendars; FMPA’s popular All-Requirements 101 seminar will be presented Sept. 15 and Sept. 16 for FMPA members. All-Requirements 101 is a one and one-half day free seminar designed to give participants a thorough understanding of FMPA’s largest wholesale power supply project, All-Requirements. Wholesale power supply costs account for approximately 50% to 75% of the monthly bill to retail electric customers, so it is important for people in FMPA’s member cities to understand this important role of the Agency. This program is ideal for local elected officials or utility goveing boards. It is also recommended for municipal utility staff, particularly non-engineers, and FMPA Board members who are new to the Agency. As an added benefit, Certified Public Accountants may ea eight hours of continuing professional education, and registered Professional Engineers may ea eight professional development hours. (FMPA is provider #238, and the seminar will be course #2009-006.)





NRC Board Raises Issues, Allows Challenge of Levy Nuclear Plant

The Nuclear Regulatory Commission’s Atomic Licensing Board issued a ruling last week on Progress Energy’s proposed Levy County Nuclear Plant that raises issues about the plant and allows environmental groups to challenge the plant’s federal permit. The Board’s ruling states that the Green Party of Florida and other opponents of the project have raised issues about the plant’s environmental impact that deserve a hearing with oral arguments. Environmental issues noted in the Board’s ruling include: 1) storage of the plant’s radioactive waste, 2) the impact of building the plant in a floodplain, and 3) the impact of “salt drift on surrounding wetlands. Progress Energy has not yet announced whether it plans to file an appeal.


R.W. Beck Signs Agreement to Join SAIC

R.W. Beck Group, Inc. announced last week it signed an agreement to be acquired by Science Applications Inteational Corporation (SAIC), pending shareholder approval. SAIC is a Fortune 500 company, serving customers in national security, energy and the environment, critical infrastructure and health markets. For more information,