FMPA Weekly
A weekly e-newsletter for FMPA members
Feb. 1, 2010
LAST WEEK
Meeting with Rep. Troutman
Representatives from FMPA, Florida Municipal Electric Association and the city of Fort Meade met last Monday with state Rep. Baxter Troutman to discuss a draft bill in the Florida House of Representatives that would place FMPA under regulation by the Public Service Commission. The meeting participants agreed on several steps moving forward, including scheduling a workshop between FMPA and the Fort Meade City Commission. While the meeting was productive, Rep. Troutman made it clear that he intends to move forward with his bill. Contact: Nick Guarriello or Mark McCain
Oleander Operating Committee
Tom Reedy, Tim Jackson and David Schumann attended a meeting last Monday of the Operating Committee for Southe Company’s Policy” rel=”nofollow”>http://www.appanet.org/legislative/index.cfm?ItemNumber=17544>Policy Makers Council. She joins fellow Floridians Nancy Gemskie from Kissimmee Utility Authority and Lou Heandez from the Utility Board of the City of Key West in serving on the Council for 2010.
Controller Interviews Finished
Interviews have concluded for FMPA’s open controller position. Management will now review the results to determine which candidate best fits the position. Contact: Mark Larson
THIS WEEK
Cane Island Unit 4 Receives HRSG Components
Zachry Holdings, Inc. will begin a heavy-haul transport Tuesday of HRSG components to the Cane Island Unit 4 construction site. The 10 boiler modules, each weighing 230,000 pounds, were delivered to Tampa last week from Thailand and Korea. They will be lifted off railroad cars approximately three miles from the construction site entrance. The heavy haul from the drop-off spot to the site will take approximately one week. Contact: Jim Hay
APPA Climate Change Task Force
Mark McCain travels to Washington, D.C., on Wednesday to attend a meeting of the American Public Power Association’s (APPA) CEO Climate Change Task Force. Participants will discuss possible energy or climate change legislation.
Economic Stimulus Work Group
Members of the Economic Stimulus Work Group meet Wednesday by conference call to discuss Florida’s Energy Efficiency and Conservation Block Grants. FMPA employees will provide members with assistance in finalizing grant applications. Contact: Sharon Smeenk
Safety Program Steering Committee
Members of the Safety Program Steering Committee will meet Thursday at 10 a.m. in the First Floor Conference room to discuss the future of the lineman’s safety training program. Contact: Tom Reedy
CR3 Outage Update
The Crystal River Unit 3 containment delamination team has begun preliminary repairs to fix cracks in the concrete of the containment building. Welding activities on the steam generator replacement project are complete. Work on the Extended Power Uprate project is complete, and the team is proceeding with component testing to expedite start-up when the unit retus to service. It is expected that all repair work will be completed to support a unit start-up by mid-year. Steve Ruppel and Liyuan Woeer will attend a CR3 Outage Update meeting on Friday. Contact: David Schumann
Audited Financial Statements
FMPA’s Board of Directors and ARP Executive Committee last week approved the Agency’s audited financial statements for fiscal 2009. FMPA’s Finance Department is now finalizing and packaging the statements to submit for reporting. Contact: Janet Davis
Budget Season
Ellen Lindsay is preparing a draft budget calendar for FMPA staff and the Business Planning and Budget Committee that details the events leading up to approval of the fiscal 2011 budget in July. Contact: Mark Larson
Member Portal Spotlight: Weekly Updates
New documents, agenda packages and other resources are posted on a frequent basis to FMPA’s Member Portal. Every Monday, Wednesday and Friday, the site’s homepage provides a news update or spotlights some of the new posts. Remember to check in regularly to see what’s new.
All-Requirements Project Load
The All-Requirements Project’s peak for the month of January was 1,407 megawatts, which occurred Jan 11 between 7 a.m. and 8 a.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 January was 51%. The month’s peak was 118% of the budgeted peak, and energy was 113% of budget which was a result of 10 days of cold weather that blanketed the state early in the month. A graph showing the All-Requirements Project hourly load for the month of January is available on the Member Portal. Contact: Jim Atz
COMING UP
Member Relations FAQ: How are the survey results used?
The launch of FMPA’s 2010 Member Relations Survey is coming soon. To prepare members to participate in the survey, which is a strategic plan action item, FMPA Weekly is answering some of the most frequently asked questions (FAQ) about the survey. This week’s question is, “How are the survey results used? Responses to the anonymous online survey are compiled and analyzed by the Public Relations Department. A report on the survey’s results will be shared with FMPA’s members and staff. The survey results serve several key purposes: 1) measuring current opinions and comparing them to previous survey results, 2) soliciting members’ suggestions for enhancing member relations, and 3) providing a basis for future public relations activities and future staff training and development. Don’t miss this opportunity to influence the future of FMPA. Watch for a survey invitation in your e-mail sometime soon. Contact: Diane Nelson
ARP Rate Workshop
The ARP Executive Committee meets Feb. 9 via conference call at 11 a.m. for the monthly All-Requirements Project rate workshop. The workshop agenda includes: 1) an update on natural gas markets and liquidity, 2) an overview of January loads, costs and rate calculations, and 3) estimated rates for March through April. Contact: Jim Atz
FMEA-FMPA Federal Legislative Briefing Webinar
FMPA and FMEA will host a Webinar Feb. 12 at 1 p.m. for attendees to this year’s APPA Legislative Rally. The session will brief participants on legislative issues that will be discussed at the Rally. The Webinar will cover issues including climate change legislation, the possibility of a renewable portfolio standard and EPA action on regulating carbon dioxide and more. There will also be an opportunity for participants to ask questions and provide input on the issues. FMPA encourages all those who are attending this year’s Rally to participate. Anyone who wishes to attend must register online before Feb. 12. Contact: Skye Guthrie
EECBG Applications Due
Applications for Florida’s Energy Efficiency and Conservation Block Grants are due Feb. 12. Members who need assistance preparing their applications should contact Mike Siefert or Sharon Smeenk.
ARP Business Model Working Group
FMPA’s ARP Business Model Working Group will meet Feb. 17 at 1 p.m. in the Board room. The Group will continue its discussion of FMPA’s rate-setting process. Contact: Nick Guarriello
Climate Change Workshop
FMPA will host a Climate Change workshop March 10 from 10 a.m. to 3 p.m. in the Board room. The workshop will help participants understand the issues surrounding proposed climate change legislation, as well as the operational and financial impacts for utilities. Robert Kappelmann, energy and environmental policy consultant with RLK Associates, will lead the course. http://fmpa.com/index.php/component/registrationpro/?view=event&did=16>Registration; is $250 for FMPA members. Contact: Mike Siefert
INDUSTRY NEWS
PSC Chooses Director
The Florida Public Service Commission (PSC) last Monday named Tim Devlin, 58, to be its new executive director and steer the agency into an era of reform. Devlin, an accountant, has been with the PSC since 1976. Since 2000, he has been director of the Division of Economic Regulation, which monitors utilities’ finances. Devlin replaces Mary Andrews Bane, who retired in December. The Commission handed Devlin his first assignment: Make sure that staffers “insulate themselves from discussing pending cases with utilities unless the discussion is open and on the record. The Commission was rocked last fall by charges that staffers were too close to utility officials. Devlin said he does not believe that the regulatory staff has been influenced by utility officials, but that he frowns on PSC staff socializing with utility representatives.
FPL Pressed to Explain Project-Suspension Statement
The day after the PSC rejected its request to raise rates by $1.3 billion, Florida Power and Light (FPL) said in a press release that it would suspend projects to retire old plants and build new ones in Riviera Beach and Cape Canaveral. But the PSC now says that does not mesh with what it approved when it agreed to give the company $44.9 million to complete the projects. The Commission rejected FPL’s request to raise rates by $1.3 billion and approved, instead, a $75 million-a-year increase in the base rate, equal to approximately 75 cents for every 1,000 kilowatt hours. FPL testified that it was committed to retiring the old plants by 2014 and building new ones, and that it needed $44.9 million to recover costs from the old plants before they are demolished. If the company does not meet those dates, the PSC could reduce its base rates. The head of FPL’s parent company, Lew Hay, told Wall Street analysts last Tuesday that the projects are not dead. “These are significant projects that we hope to build and operate, but the decision to suspend them was made in response to the negative impact of the rate decision on FPL’s creditworthiness and the ability to attract capital at attractive rates. FPL’s attoey said Tuesday that, despite the suspension, it is still possible the projects will be completed on schedule.
Keys Energy Services Switches to Higher Grade Bio-Diesel