FMPA Weekly | May 31, 2011 | Member Edition

FMPA Weekly

A weekly e-newsletter for FMPA members


May 31, 2011





Business Planning and Budget Committee

FMPA’s Business Planning and Budget Committee met last Wednesday and finalized its work on the proposed fiscal 2012 budgets. The Committee approved and recommended the Agency and All-Requirements Project budgets to the Executive Committee for final approval. The Committee also approved and recommended the other power supply project budgets and the Agency allocation to the Board of Directors for final approval. Since last week’s meeting completed the Committee’s work on budgets, the Committee’s June 10 meeting has been canceled. Contact: Mark Larson


Audit and Risk Oversight Committee

FMPA’s Audit and Risk Oversight Committee (AROC) met last Wednesday. The Committee approved a risk inventory update and reviewed the AROC charter. Contact: Rich Popp


Board of Directors

FMPA’s Board of Directors met last Thursday and approved financing plans for the purchase of St. Lucie and Stanton II project auction-rate securities tendered by Citi. FMPA plans to finalize the transactions by June 30. The Board’s next meeting will be July 22 during the FMEA-FMPA annual conference. Contact: Nick Guarriello


ARP Executive Committee

The ARP Executive Committee met last Thursday and approved the following action items: 1) fiscal 2012 funding level for the Conservation Program , 2) a policy on running generation units out of economics, 3) amending the Florida Gas Utility interlocal agreement, 4) increasing the import limit into the Florida Keys, 5) ARP property insurance, 6) R.W. Beck, an SAIC Company, additional service request regarding FPL transmission rate compliance filing, 7) the initial budget for Duke-Progress Energy merger outside legal counsel and consultant efforts, and 8) a settlement with the engineering and construction contractors for Treasure Coast Energy Center Unit 1. The Executive Committee will hold its next meeting on June 16, which is one week earlier than its normal monthly meeting. Contact: Nick Guarriello


Energy Audit Program Audit

Mike Siefert and Sharon Smeenk observed an audit last Friday of the city of Starke’s Energy Audit Program, which is funded by an Energy Efficiency and Conservation Block Grant (EECBG). Starke is one of four FMPA members that received an EECBG grant to develop an energy audit program for commercial and industrial customers. The program reviews customers’ operations and develops recommendations to help reduce energy consumption. Mike and Sharon were on hand to observe the audit so that they can assist other FMPA members during future program audits.


Backgrounder on Lake Worth Lawsuit

The city of Lake Worth recently filed a lawsuit against FMPA over a disagreement about who should pay for certain natural gas transportation for the city’s Smith Plant. At members’ request, FMPA created a one-page document that briefly describes what led to the situation. The backgrounder can be downloaded from FMPA’s Member Portal.





Business Model Working Group

The All-Requirements Project’s Business Model Working Group meets Wednesday at 10 a.m. in the Board room to recap the Public Gas Partners presentation from April 19 and to consider new options for stabilizing wholesale electric rates. The full agenda package is available on the Member Portal. Contact: Nick Guarriello


FEMA Workshop

FMPA hosts a workshop on the Federal Emergency Management Agency’s (FEMA) Public Assistance Grant Program this Friday from 9 a.m. to 11 a.m. in the Board room. Dan Niederman, training officer with the Florida Division of Emergency Management, will discuss the federal grant program and guide participants through the reimbursement process. FMPA staff and members with responsibility for FEMA reimbursement following a natural disaster are encouraged to attend. There is no cost to attend the workshop, but>registration; is requested. The workshop will be available via>webcast; for those unable to attend. Contact: Mike Siefert


Treasure Coast Energy Center Marks Three Years of Commercial Operation

The Treasure Coast Energy Center Unit 1 in Fort Pierce completes its third year of commercial operation this Tuesday with another solid year of performance. Since beginning operations in 2008, the unit has produced 4.9 million megawatt hours and has operated 93% of the time when available. The unit has been forced off-line for repairs for only 123 hours of the 26,280 hours it has been available. Unit 1 generates enough electricity to serve approximately 60,000 homes in 14 cities served by FMPA’s All-Requirements Project. It is wholly owned by the All-Requirements Project and is operated under contract by Fort Pierce Utilities Authority. Contact: David Schumann


Cane Island Unit 4

Cane Island Unit 4 is expected to resume testing later this week after being taken off-line for scheduled inspections and maintenance last week. The unit will continue to undergo operational tests in preparation for commercial operation in June. Contact: David Schumann


All-Requirements Project Weekly Load Statistics

The weekly update of the All-Requirements Project historical load graph has been posted on the Member Portal. The graph is updated through May 30. Contact: Jim Atz





FMPA Compliance Workshop
FMPA will hold a two-day Compliance Workshop June 14 and June 15 in the Board room. The workshop is intended for compliance staff, as well as subject-matter experts in facility ratings, planning and protection. Participants will discuss cyber security, FMPA’s Inteal Compliance Program and North American Electric Reliability Corporation standards. Contact: Frank Gaffney


ECG Engineering & Operations Conference

Electric Cities of Georgia will hold an Engineering & Operations (E&O) Conference June 15 through June 17 in Savannah, Ga. The conference features a variety of E&O topics, including pole attachments, reliability, safety, liability, electric vehicle charging stations and more. To register or read more about the conference, visit>;.


2011 FMEA-FMPA Annual Conference

The 2011 FMEA-FMPA Annual Conference will be held July 19-21 at The Breakers in Palm Beach. The conference begins with two pre-conference seminars on July 19: 1) electric utility 101, and 2) crisis communications. The following days feature general sessions and breakout sessions on a variety of important and timely topics. Rocky Bleier, former running back for the Pittsburgh Steelers pro football team, will speak on how not to avoid life’s twists and tus, but condition yourself to lean into them. The hotel reservation deadline is June 27. Registration>Registration; is required. Visit>; for more information. Contact: Mike Siefert





Gulf Power Seeks Base-Rate Increase

Gulf Power notified the Florida Public Service Commission (PSC) this month that it intends to seek a base-rate increase of $95 million per year. If granted, the proposal would translate to a 21.5% increase over Gulf Power’s 2010 base-rate revenues of $442 million. The company likely will file a detailed proposal with the PSC in July, starting a months-long review process and hearings. A Gulf Power spokesperson said the company hopes new rates will take effect in April 2012, though it also wants an interim rate increase later this year that would involve a smaller amount. State Public Counsel J.R. Kelly, whose office represents consumers in utility cases, said it is premature to know whether Gulf Power can justify the increase. Gulf Power is likely the first of three electric utilities that will take base-rate cases to the PSC during the next year. Florida Power & Light and Progress Energy Florida are operating under rate plans that end Dec. 31, 2012, and Kelly said he expects them to file new proposals late this year or in early 2012.


PSC Executive Director Resigns

Florida’s Public Service Commission (PSC) last week unanimously accepted the resignation of Executive Director Timothy Devlin, who says he was asked to leave by PSC Chairman Art Graham. Devlin’s resignation is the most recent in a series of personnel changes at the regulatory agency. Devlin was with the Commission for more than 35 years, serving since the beginning of 2010 as executive director. Devlin did not appear at last week’s regularly scheduled meeting, and Graham refused to disclose the reasons for Devlin’s resignation, saying, “Out of respect for the executive director, I think that’s a private matter. Graham has designated Commissioner Julie Brown to oversee the process of searching for a new executive director. In the meantime, Graham has decided not to appoint an interim executive director, rather Counsel Curt Kiser will oversee the Commission’s public information office, and Deputy Executive Director Charles Hill will manage the PSC’s inteal issues.


PSC Approves Progress Energy Biomass Contract

Florida’s Public Service Commission (PSC) last Tuesday approved Progress Energy Florida’s purchase of firm capacity and energy from Trans World Energy, LLC, a biomass generating facility to be constructed in Citrus County. Trans World expects to sell 40 MW of capacity and energy to Progress for 20 years beginning July 1, 2013. The facility is expected to save between $28.5 million to $61.6 million in energy production costs.


Gant Confirmed to KUA Board

The Kissimmee City Commission confirmed the appointment of Dr. George Gant to the Kissimmee Utility Authority (KUA) Board of Directors last week. Gant will serve a five-year term effective Oct. 1. Currently, Gant is serving the remainder of a term left vacant by the death of Director William C. Hart. Gant is the former medical director of the Osceola County Health Department, and he also served as mayor of Kissimmee.



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 Ryan Dumas or Ashley Tinstman in FMPA’s Public Relations Department.


Want more background on the names and terms used in this newsletter? Check out FMPA’s 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: Ryan Dumas or Ashley Tinstman



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