FMPA Weekly
A weekly e-newsletter for FMPA members
September 28, 2009
LAST WEEK
Nick Guarriello Becomes Official CEO
Nick Guarriello officially became FMPA’s General Manager and CEO on Sept. 16. Nick has more than 30 years of experience in the utility industry, including serving as R.W. Beck’s President and CEO. He had served as FMPA’s Interim General Manager since September 2008.
Business Model Working Group
The ARP Business Model Working Group met last Wednesday to discuss the Florida Municipal Power Pool and fuel hedging. The meeting was a productive exchange of ideas and opinions. Larry Matte, the group’s Chair, will submit an interim report of the Working Group’s initial findings and recommendations, to be included in the agenda package for a future ARP Executive Committee meeting. The Working Group will meet again Oct. 9 at FMPA from 10 a.m. to 2 p.m.
Member Services Advisory Committee
FMPA’s Member Services Advisory Committee met last Wednesday for an annual joint planning session with the Florida Municipal Electric Association (FMEA). Coordination of FMPA’s and FMEA’s member services is part of FMPA’s strategic plan.
Audit & Risk Oversight Committee
FMPA’s Audit and Risk Oversight Committee met last Thursday and approved action items, including: 1) the 2007-2008 St. Lucie Audit Report, and 2) the Protiviti IT General Controls Assessment. Nick Guarriello presented an update on the status of the TEA Hedging Contract and FGU Gas Storage Contract, both of which will come before the ARP Executive Committee for approval at future meetings.
Board of Directors
FMPA’s Board of Directors met last Thursday and approved action items, including: 1) refinancing a pooled loan for FMPA’s headquarters building, 2) a budget for the Pooled Loan Fund in fiscal 2010, 3) substitution of a broker dealer for some of FMPA’s auction-rate securities, and 4) the 2007-2008 St. Lucie Audit Report.
Resolution for Jim Welsh
FMPA’s Board of Directors adopted a resolution of appreciation last Thursday for Jim Welsh of Kissimmee Utility Authority (KUA). The resolution recognizes Jim for significant accomplishments during his three-year tenure as FMPA Chairman, including guiding the Agency through a change in leadership, overseeing the modeization of the Agency’s goveance structure and assisting in the development of FMPA’s 2009 strategic plan. Jim was not present at the meeting, so Chairman Vince Ruano and Nick Guarriello will present the resolution to him at a future meeting of KUA’s Board of Directors.
ARP Executive Committee
The ARP Executive Committee met last Thursday and approved action items, including: 1) amendments to the All-Requirements Project fiscal 2009 budget, 2) carrying forward specific unexpended Agency and All-Requirements Project 2009 budget amounts, 3) the Florida Gas Utility line of credit, and 4) capacity and energy credits for fiscal 2010. The Committee did not have to consider Resolution EC6, authorization for FMPA to issue taxable bonds. (For more information on the resolution, see the “Liquidity Funding story in this issue.) Agenda items requested by the city of Fort Meade were not added to the agenda, by vote of the Committee. An addition to the action items was approved to enhance the Contractual Service Agreement with General Electric for Treasure Coast Energy Center. The Committee requested additional consideration and a recommendation from FMPA staff regarding gas transportation payments for the city of Lake Worth. This issue will be revisited at a future meeting.
Liquidity Funding
Resolution EC6 to issue taxable bonds did not have to be acted on at last Thursday’s ARP Executive Committee meeting because Wachovia submitted an offer to renew FMPA’s line of credit. The bank has agreed to renew and increase the line to $150 million. The Executive Committee approved a motion to have FMPA’s finance team review the offer compared to issuing taxable bonds and submit a recommendation to the Committee in a special called telephonic meeting, if necessary. Contact: Mark Larson
Vero Beach’s Contract Rate of Delivery
An information item at the ARP Executive Committee meeting last Thursday showed that the city of Vero Beach may not have to purchase any capacity and energy from FMPA’s All-Requirements Project when the city switches power suppliers effective Jan. 1, 2010. Due to increased capacity from the city’s generating units compared to the city’s peak demand, the estimated Contract Rate of Delivery is currently projected to be zero. The calculation will be updated before the end of 2009. Contact: Joe McKinney
GSAP 2 Refunds
Nick Guarriello reported last Thursday that nearly every All-Requirements Project member has notified FMPA of its preferred distribution methods for its share of an $8.8 million refund from a terminated prepaid natural gas transaction. Six members elected to take their credit during the month of August. Two members chose to spread the credit over the months of August and September. Four members opted to receive direct payments earmarked for their utility’s rate stabilization fund. Two members asked FMPA to hold the funds in its rate stabilization fund. And one member has yet to inform FMPA of its decision. Contact: Jim Atz
Board Evaluation Committee
FMPA’s Board Evaluation Committee met last Thursday to complete the general counsel’s performance review, which will be submitted to the Board of Directors for final approval.
Bank Visits
Mark Larson and Janet Davis met last Thursday with representatives from Morgan Keegan and Morgan Stanley to discuss financing for four of FMPA’s projects.
Public Gas Partners
Public Gas Partners (PGP) members met by conference call last Friday to discuss the renewal of a management service agreement with Municipal Gas Authority of Georgia (MGAG). A final counter-offer was approved for presentation to MGAG. PGP also completed a successful bond issue last Tuesday to pay off its line of credit. FMPA was not involved in this financing, as the Agency has already issued bonds to repay its portion of the debt. Contact: Mark Larson
HR Request for Proposals
FMPA received 10 bids in response to its request for proposals (RFP) for human resources consulting services. A review team met this week to short-list the proposals. The top three choices in order are Hay Group, Alvarez & Marsal and Evergreen Solutions. Negotiations will begin this week with the top-ranked firm. FMPA hopes to award the contract in early October. The contracted firm will evaluate FMPA’s compensation plan, benefits plan and employee handbook. The scope of work is expected to take three months. These projects are action items from FMPA’s Strategic Plan. To view the RFP, visit Take” rel=”nofollow”>http://www.hostedsurvey.com/takesurvey.asp?c=MemberServices09-Fall>Take the survey now. Contact: Mike Siefert
Leesburg Pays Off Loan
The city of Leesburg is scheduled to pay off its Pooled Loan with FMPA this Thursday.
Economic Stimulus Work Group
The Economic Stimulus Work Group meets Friday via conference call at 9 a.m. to discuss an Energy Efficiency and Conservation Block Grants from the Florida Energy & Climate Commission.
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 Sept. 27, 2009 Contact: Jim Atz
Service Anniversaries
Congratulations to Michele Jackson, who celebrates one year with FMPA on Wednesday, Sept. 30.
Congratulations to Fred Bryant, who celebrates 11 years with FMPA on Thursday, Oct. 1, although he has been FMPA’s general counsel since the Agency’s inception in 1978.
Congratulations to Manny Santos, who celebrates two years with FMPA on Sunday, Oct. 4.
COMING UP
Lineman’s Roundtable
Wednesday is the deadline to register for FMPA’s semi-annual Lineman’s Roundtable. The workshop will be held Oct. 14 in Mount Dora at 10 a.m. Roundtable participants will exchange ideas on operating practices, safety training, tools and equipment. Register on FMPA’s” rel=”nofollow”>http://fmpa.com/index.php?option=com_registrationpro&view=event&Itemid=66&did=8>FMPA’s Web site. Contact: Mike Siefert
INDUSTRY NEWS
FPL Rates Expected to Decrease in 2010
Florida Power and Light announced last week that it expects to reduce its residential customer bills in 2010 to approximately $100 per 1,000 kWh. This is the utility’s lowest rate since 2005. The updated rate estimate include the impact of the utility’s proposed base rate increase, plus the impact of lower projected fuel prices and improvements in fuel efficiency at the company’s power plants.
EPA Finalizes GHG Reporting Rule
The U.S. Environmental Protection Agency issued a final rule Sept. 22 requiring facilities that emit more than 25,000 tons of carbon dioxide or other greenhouse gases per year to file annual emissions reports. The program, which takes effect in 2010, will apply to roughly 10,000 facilities, covering about 85% of the nation’s greenhouse gas emissions.
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 Skye Guthrie or Diane Nelson in FMPA’s Public Relations Department.
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