A weekly e-newsletter for FMPA members
June 6, 2011
Business Model Working Group
The All-Requirements Project’s Business Model Working Group (BMWG) met last Wednesday to discuss Public Gas Partners (PGP) and All-Requirements’ rates. The BMWG agreed that it is satisfied with its participation in PGP and will continue to evaluate future opportunities with PGP. The BMWG also requested that FMPA staff create a semi-annual summary-at-a-glance report on the overall performance of FMPA’s risk mitigation strategies for natural gas. Regarding All-Requirements rates, the BMWG discussed the issue of rate volatility and the desire of some project members to have more stability in rates. A motion was approved directing the BMWG Chair to ask the ARP Executive Committee whether it wants the BMWG to investigate other options for reducing rate volatility. A date for the BMWG’s next meeting will be scheduled once the Executive Committee provides direction regarding stabilizing rates. Contact: Nick Guarriello
Electric Balancing Authority Area and Planning Area Report
The Planning Department submitted the Annual Electric Balancing Authority Area and Planning Area Report (Form 714) to the Federal Energy Regulatory Commission (FERC) the last week of May. The report contains the historical load statistics from 2010 and the projected loads for 2011 through 2020 for All-Requirements Project members. As an electric transmitting utility operating balancing authority areas and planning areas with peak demand over 200 MW, FMPA is required to submit the form to FERC. Contact: Michele Jackson
Member City Visits
Bud Boudreaux and Fred Bryant travel to Gainesville Regional Utilities on Tuesday to meet with General Manager Bob Hunzinger and Assistant General Managers David Beaulieu and Kathy Viehe. They will also visit the city of Alachua to meet with City Manager Traci Cain and Public Services Director Mike New.
ARP Telephonic Rate Workshop
The ARP Executive Committee meets Thursday via conference call at 2 p.m. for the monthly All-Requirements Project rate workshop. The agenda includes: 1) an update on natural gas markets and liquidity, 2) an overview of May loads, costs and rate calculations, and 3) estimated rates for July through August. Contact: Jim Atz
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 June 5. Contact: Jim Atz
Congratulations to Steve Ruppel, who celebrates 13 years with FMPA on Wednesday, June 8.
Congratulations to Jim Hay, who celebrates nine years with FMPA on Friday, June 10.
Congratulations to Shirleen Bell, who celebrates four years with FMPA on Saturday, June 11.
Congratulations to Tom Washbu, who celebrates five years with FMPA on Sunday, June 12.
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. The workshop will be available via https://fmpa.webex.com/mw0306ld/mywebex/default.do?siteurl=fmpa>webcast; for those unable to attend. Contact: Frank Gaffney
ARP Executive Committee Meeting
The ARP Executive Committee will meet June 16 at 9 a.m. in the Board room. This is one week earlier than the normal monthly schedule. Contact: Nick Guarriello
Utility Safety Leadership Review Course
The Utility Safety & Ops Leadership Network (USOLN) will hold a two-day Utility Safety Leadership Review Course Sept. 22 and Sept. 23 at FMPA’s Orlando office. The course will cover utility safety regulations and is recommended for anyone planning to take the Certified Utility Safety Professional exam. Topics will include leadership, human performance, standards, hazard identification and incident prevention. USOLN member and non-member rates are available, and http://www.regonline.com/Register/Checkin.aspx?EventID=974697>registration; is required. Visit http://www.usoln.org/>www.usoln.org; for more information. Contact: Mike Siefert
EPA Rules Could Close Coal Plants, Raise Rates
New regulations from the Environmental Protection Agency (EPA) could result in the closing of many coal-fired power plants, leading to higher rates and possible reliability issues, according to a Department of Energy official speaking May 24 at the Easte Coal Council’s annual conference. EPA has estimated that nationwide 10 gigawatts of coal-fired generating capacity could be shuttered because of the new limits on mercury, heavy metals and acid gases that were proposed last month. Factoring in the upcoming Clean Air Transport Rule, which limits emissions that cross state lines, the Agency predicts 25 gigawatts of retirements, or 8% of U.S. coal plants. According to a report last fall by the North American Electric Reliability Corporation, those rules and two others could lead to as much as 78 gigawatts of coal-plant retirements.
Adequate Generating Capacity Available to Meet Summer Demand
North America will have sufficient generating capacity to meet anticipated electricity demand this summer, according to the North American Electric Reliability Corporation’s (NERC) 2011 Summer Reliability Assessment. NERC’s analysis predicts that load will rise by less than 1% from last year and on-peak capacity is expected to rise by 3%. The report also highlights that reserve margins are sufficient, even though demand is projected to increase by 10,000 MW to approximately 851,000 MW in August. NERC has been monitoring the recent extreme weather conditions in some parts of the country, which can stress the bulk power system during peaking periods. Preliminary reports do not find any indication of generation issues impacting reliability, but restoration efforts are still underway, in order to ensure that affected areas meet summer electricity demands.
FPL Requests Rate Discounts for Businesses Creating New Jobs
Florida Power & Light (FPL) filed a petition with the Florida Public Service Commission last week requesting to modify its electric service offerings to grant discounts to businesses that expand their energy use by 500 kilowatts and create 10 or 25 new jobs. FPL has a similar program in place for businesses that expand their energy use by 5,000 kilowatts and create 375 new jobs. However, the utility said no businesses are currently enrolled in that program because the requirements are too high. FPL said its new proposal is aligned with Gov. Rick Scott’s efforts to help Florida’s economy. Scott has said he hopes to bring businesses to Florida in part by saving them money on their electric bills. Under FPL’s new proposal, the discounts would start at 20% the first year, 15% the second, 10% the third and 5% the fourth. In order to qualify for the discount, businesses must create 10 new jobs before June 1, 2013, and 25 jobs after that.
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.)
Florida Municipal Power Agency
8553 Commodity Circle
Orlando, FL 32819-9002
Tel 407 355-7767
Fax 407 355-5794
Community Power. Statewide Strength. ®