A weekly e-newsletter for FMPA members
Oct. 5, 2009
Nick Guarriello and Tom Reedy traveled to the headquarters of Florida Power and Light (FPL) in Juno Beach last Wednesday. They visited with Armando Olivera, FPL’s president, and Sam Forrest, vice president of energy marketing and trading, to discuss power supply and the electric utility industry.
Advocating for Members
Mark McCain traveled to Washington, D.C., last Tuesday through Thursday with Barry Moline from the Florida Municipal Electric Association (FMEA) and Ron Brower, a lobbyist for FMEA and FMPA. The purpose of the visit was to meet with Florida’s congressional delegation to discuss climate change legislation, as part of FMPA’s strategic plan to advocate on behalf of members. The timing of the visit was fortunate because Senate leaders unveiled on Wednesday their proposed climate change bill (see related story in Industry News). Barry, Ron and Mark presented an analysis of the possible effects of the House-passed climate change bill on Florida’s municipal utilities and their customers. They also discussed recommendations for improving climate change legislation as it moves through the Senate. FMPA and FMEA hosted a light reception Wednesday night that was well-attended by members of Congress.
Janet Davis, Mark Larson and Ed Nunez met with FMPA’s financial advisor, Craig Dunlap, last Wednesday to plan the debt issuances authorized at FMPA’s annual meeting last July. The Treasury Department anticipates three bond issues will be completed from December through January. The proceeds will refinance FMPA’s pooled loans and fund capital expenditures for the fiscal 2009 and fiscal 2010 budgets. The issuances also will assist with refinancing the Stanton II and St. Lucie projects’ auction-rate securities, depending on the results of bond tender offers. Contact: Mark Larson
Nick Guarriello distributed a memo to FMPA staff and members last Thursday outlining organizational changes effective Oct. 1. The changes were implemented after careful consideration of the Mercer Group’s Management Review recommendations, Nick’s conversations with FMPA staff and his observations while serving as Interim General Manager during the past year.
ARP Executive Committee
The ARP Executive Committee held a special called telephonic meeting last Friday to discuss liquidity funding. The Committee voted to accept Wachovia’s offer to extend and increase FMPA’s line of credit to $150 million for the next year. Contact: Mark Larson
Economic Stimulus Work Group
The Economic Stimulus Work Group met last Friday via conference call to discuss Energy Efficiency and Conservation Block Grants from the Florida Energy & Climate Commission. The Work Group reviewed a memo issued by FMPA and FMEA detailing project options for grant proposals. Members should retu the attached survey, indicating the projects in which they are interested, to FMEA’s Barry Moline by this Wednesday. The survey results will be used to gauge interest in each project but will not indicate a final commitment by members. FMPA and FMEA will be available to assist members with completing grant applications when the funding opportunity is officially announced by the state.
Crystal River Unit 3 came off line for a planned outage at midnight on Sept. 25. The outage was scheduled to complete refueling and rebuild the generator. The unit is scheduled to be back on line in mid-December. Contact: David Schumann
Stanton Unit 2 Outage
Stanton Unit 2 began a planned outage last Friday. The unit will be off line until Nov. 9. Contact: David Schumann
Public Power Week
All across the nation, municipal electric utilities are celebrating Public Power Week from Oct. 4 through Oct. 10. What is your utility doing to celebrate? FMPA and FMEA distributed a variety of free and easy-to-use communication tools last week to help members communicate the value of public power. Public power has a great story to tell, and communicating that story during this time is an important way to build and maintain relationships with our communities. Contact: Diane Nelson
ARP Rate Workshop
The ARP Executive Committee meets Wednesday at 2 p.m. for the monthly All-Requirements rate workshop. The workshop agenda includes: 1) an update on natural gas markets and liquidity, 2) a review of loads, costs and rate calculations for September, and 3) estimated rates for October through December. Contact: Jim Atz
Bud Boudreaux travels to the panhandle Wednesday for member visits in Blountstown, Chattahoochee and Havana.
IT Horizons Plan
FMPA’s Information Technology Department kicked off its IT Horizons Plan initiative last Thursday. The Department is developing a planning document to ensure that all technology is aligned with the Agency’s mission and goals. FMPA has engaged the consulting firm KPMG to assist in preparing the plan. Representatives from KPMG will visit the Agency this Wednesday through Friday to conduct interviews with managers for the purpose of identifying IT issues that make it difficult for employees to accomplish their goals. Solutions recommended by KPMG will be evaluated inteally, and any that the Department selects to pursue will move forward through the budget process. Contact: Mark Larson
Business Model Working Group
The ARP Business Model Working Group meets Friday in the Board room at 10 a.m. to continue its discussion of fuel hedging. Contact: Nick Guarriello
Solar Kiosk Conference Call
Bree Balchunas, Diane Nelson and Sharon Smeenk meet by conference call this Friday with representatives from Keys Energy Services and the Eco Discovery Center in Key West, Fla. The group will discuss plans for an educational kiosk to accompany the solar demonstration project at the Center.
Strategic Plan Linked to Individual Performance
FMPA’s Human Resource Department has added the ability for managers to link objectives in the strategic plan to individual performance goals in Halogen, the Agency’s online performance evaluation software. Once managers complete this process, employees will be able to track their progress toward helping FMPA realize its strategic plan. Contact: Sharon Adams
Debt Policy Update
FMPA’s Finance Division is reviewing a revised debt policy proposed by the Risk Management Department. The new policy will be presented at upcoming meetings of the Board of Directors and the Audit and Risk Oversight Committee. Contact: Mark Larson
FMPA’s Risk Management Department is working with managers to score the severity and likelihood of Agency-wide risk events as part of a new risk management initiative. This addresses an action item in FMPA’s Strategic Plan to identify, understand and manage risk responsibly. Contact: Rich Popp
2010 Load Forecast
FMPA’s Planning Department is meeting with All-Requirements Project members this month to discuss the 2010 load forecast. The department has already met with five members and will schedule meetings with the rest soon. Contact: Michele Jackson
All-Requirements Project Load
The All-Requirements Project’s peak for the month of September was 1,299 megawatts, which occurred Sept. 25 between 3 p.m. and 4 p.m. Load factor is a measurement that compares the ratio of actual energy (MWh) used during a particular time period versus what would have been consumed if demand was at peak for the entire period. A higher load factor indicates more effective system utilization. The load factor for the All-Requirements Project for the month of September was 69%. The month’s peak was 93% of the budgeted peak, and energy was 94% of budget. A graph showing the All-Requirements Project hourly load for the month of September is available on the Member Portal. Contact: Jim Atz
Congratulations to Jody Finklea, who celebrates eight years with FMPA on Thursday, Oct. 8.
Florida Municipal Power Pool (FMPP) will hold its annual seminar Oct. 19 and Oct. 20 at Orlando Utilities Commission’s (OUC) Camp Down. Employees from all FMPP members, including FMPA, are invited to attend. Registration is limited to the first 150 people to sign up. Contact Ed Seddon of OUC to register.
Human Resources Roundtable
FMPA hosts a Human Resources Roundtable Oct. 20 at 10 a.m. Participants will discuss topics such as benefits, recruiting, employee retention, training and policies. To register, visit FMPA’s” rel=”nofollow”>http://fmpa.com/index.php?option=com_registrationpro&Itemid=66&view=event&did=11>FMPA’s Web site to register. Contact: Sharon Samuels
Participants in FMPA’s annual Purchasing Roundtable will meet Nov. 19 at 10 a.m. at Kissimmee Utility Authority. The roundtable will provide a forum for purchasing personnel to meet with their peers from other member utilities to discuss work procedures, policies and practices, industry changes and other topics of interest. Visit American” rel=”nofollow”>http://www.appanet.org/newsletters/ppdailyarchivedetail.cfm?ItemNumber=25522>American Public Power Association’s Web site.
Crist Appoints New PSC Members
Goveor Charlie Crist announced Oct. 1 his appointments of two new members to the Florida Public Service Commission rather than reappointing two incumbents. Crist selected David Klement, a 69-year-old former joualist, and Steve Stevens, a 44-year-old financial officer, to replace Commissioners Matthew Carter and Katrina McMurrian, who were seeking new four-year terms. Klement and Stevens’ terms will begin Jan. 2, 2010. Crist said his appointments will ensure that consumers get every protection they deserve on utility bills.
FPL to Implement Rate Hike before PSC Vote
Florida Power and Light Co. (FPL) plans to raise rates beginning Jan. 4 without waiting for the Public Service Commission’s (PSC) decision on whether to grant the requested increase. Florida law allows the utility to implement the rate hike without the regulatory panel’s approval, but FPL will have to refund the difference to customers if the PSC authorizes a smaller increase. FPL’s proposal would allow it to charge customers an extra $900 million a year beginning in 2010 and another $400 million a year beginning in 2011. The regulatory board’s final decision is now scheduled for Jan. 11.
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.
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).