FMPA Weekly | Dec. 5, 2011 | Member Edition

FMPA Weekly


A weekly e-newsletter for FMPA members


Dec. 5, 2011





SPS Training

Chris Gowder visited Kissimmee Utility Authority’s energy control center at Cane Island Power Park last Tuesday and Wednesday to conduct training for plant and transmission operators on the new Special Protection System (SPS). Topics at the sessions included the purpose, design and scope of the SPS. Contact: Joe McKinney


Communication Tool for End of Hurricane Season

The Atlantic hurricane season ended last Wednesday. This time of year is a great opportunity to remind customers of municipal utilities’ commitment to service reliability and quick power restoration year-round. FMPA and FMEA distributed a brief opinion article last week that utilities can publish as a guest column in their local newspaper or as a letter from the utility director in a city newsletter. A copy of the column can be downloaded from FMPA’s Member Portal. Contact: Mark McCain


FERC and NAESB Training

FMPA’s Compliance, System Planning, and Operations departments traveled to Orlando Utilities Commission last Thursday to provide and receive training on Federal Energy Regulatory Commission (FERC) and North American Energy Standards Board (NAESB) regulations conceing commercial aspects of buying and selling electric power and transmission. Other topics included the Florida Municipal Power Pool operations, pool transmission service, revisions to FMPA’s Open Access Transmission Tariff (OATT), and a review of Florida transmission provider OATTs. Contact: Frank Gaffney





Finance Meeting

Mark Larson and Janet Davis meet Tuesday with representatives of Morgan Stanley Bank to begin exploring a potential buy-back of several auction-rate securities.


ARP Telephonic Rate Workshop

The ARP Executive Committee meets Wednesday at 2 p.m. via conference call for the monthly All-Requirements Project Rate Workshop. The agenda includes: 1) an update on natural gas markets and liquidity, 2) an update on FST, 3) an overview of November operations, loads, costs and rate calculations, and 3) estimated rates for December through February. Contact: Jim Atz


Audit and Risk Oversight Committee

FMPA’s Audit and Risk Oversight Committee meets Thursday at 8:30 a.m. in the Board room to discuss action items including: 1) a risk review and recommendation to the Executive Committee of a revision to FMPA’s Origination Transaction Risk Management Policy, and 2) a risk review and recommendation to the Executive Committee of physical gas purchase structures for decreasing purchase price volatility. The full agenda package is available on the Member Portal Contact: Rich Popp


ARP Executive Committee

The ARP Executive Committee meets Thursday in the Board room at 9:30 a.m. or immediately following the Audit and Risk Oversight Committee meeting to discuss the Executive Committee’s 2012 meeting schedule. The full agenda package is available on the Member Portal. Contact: Nick Guarriello


FMPA Goveance Committee

FMPA’s Goveance Committee meets in the Board room Thursday at 11:30 a.m. or immediately following the ARP Executive Committee meeting to discuss weighted voting. The public notice is available on the Member Portal. Contact: Nick Guarriello


All-Requirements Project November Load Statistics

The All-Requirements Project’s peak for November was 862 MW, which occurred Nov. 16 between 3 p.m. and 4 p.m. The project’s load factor for November was 64%. Load factor is a ratio of actual energy (MWh) used during the 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 and results in lower average costs. The month’s peak was 95% of the budgeted peak, and energy was 97% of the budget. A graph showing the All-Requirements Project hourly load for the month of November is available on the Member Portal. 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 Dec. 4. Contact: Jim Atz





Purchasing Roundtable

FMPA’s annual Purchasing Roundtable is Dec. 15 at 10 a.m. in the Board Room. The roundtable provides a forum for purchasing personnel to discuss work procedures and policies, industry changes, equipment and other topics of interest. The roundtable is free and lunch will provided. The deadline to>register; is Dec. 8. Contact: Sharon Samuels


Excellence as a Supervisor

FMPA will host the first module of the Excellence as a Supervisor training Jan. 31, 2012, through Feb. 2, 2012, in the Board room. The program offered by Electric Cities of Georgia includes a total of six, two-day training modules. The modules are divided into two series with three modules in each series. Participants can register for Series I, Series II or both. The remaining modules will be held throughout 2012. More information is available on the Member Portal. Contact: Mike Siefert





KUA to Host 2013 National Lineworkers Rodeo

The American Public Power Association announced last Tuesday the selection of Kissimmee, Fla., as the location for its 2013 Public Power Lineworkers Rodeo. The 13th annual competition will be hosted by Kissimmee Utility Authority (KUA) on April 6, 2013. The purpose of the rodeo is to recognize the profession of line work as well as demonstrate the safety, skill and education of electric linemen. “This event will be a great opportunity for Kissimmee to showcase its city to a national audience, said Jim Welsh, KUA’s president and general manager. “KUA will ensure that the lineman’s competition is a memorable event both for the city and the participants.


NERC: Reserve Margins Down in Some Areas; Regulations Affect Planning

A decrease in projected generation resources has led to declining planning reserve margins in some places, but most areas appear to have adequate resource plans to meet projected peak demands over the next 10 years, the North American Electric Reliability Corp. (NERC) concluded in its 2011 Long-Term Reliability Assessment. Environmental regulations are among the key issues and risks to bulk power system reliability identified in the long-term assessment. A section of the report updates NERC’s 2010 Special Reliability Assessment: Resource Adequacy Impacts of Potential U.S. Environmental Regulations. The Environmental Protection Agency is developing four significant regulations that effect electric utilities: 1) Coal Combustion Residuals rule, 2) Mercury and Air Toxics Standards, 3) Cooling Water Intake Structures rule, and 4) Cross-State Air Pollution rule. Since the regulations are not final, their effects cannot be completely measured and material changes have occurred to them since NERC’s 2010 assessment, NERC said.  “While many factors affect an owner’s decision to retire or retrofit a facility, NERC’s analysis of the integrated impact of these regulations on planning decisions shows a projected 36 GW of accelerated retirements and derates in the 2018 moderate case, reported NERC. “More importantly, industry information continues to show that significant retrofits will be needed over the next four years in order to comply with proposed utility air toxics regulations. Compliance deadlines will challenge the electric industry’s planning horizons, processes and schedules. The fuel mix differs greatly across the country, and each area will face different dynamics, NERC said. “States’ decisions on rule implementation could greatly influence cumulative impacts.



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 Henderscheid 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 Henderscheid



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