FMPA Weekly | Jan. 23, 2012 | Member Edition

FMPA Weekly


A weekly e-newsletter for FMPA members


Jan. 23, 2012





Cane Island Power Park Special Protection System

The Special Protection System (SPS) at Cane Island Power Park was brought online last Tuesday. The purpose of the SPS is to restrict generation in the event of an overload on the bulk power transmission system. The SPS measures transmission line fault conditions and automatically opens generator breakers to reduce attached generation capacity within approximately one minute. Contact: Frank Gaffney


Policy Makers Liaisons Committee
FMPA’s Policy Makers Liaisons Committee (PMLC) met last Wednesday and discussed: 1) the meter maintenance service, 2) Dr. Gant’s Inteal Hedging proposal, 3) potential federal legislative issues related to electric utilities, and 4) the most important electric issues in their communities. The Committee approved changing the next PMLC meeting to April 18 at 2 p.m. The meeting will be held at Orlando Utilities Commission’s Dispatch Center, where the policy makers will lea about the Florida Municipal Power Pool and tour the dispatch operation. Contact: Mark McCain


Audit and Risk Oversight Committee

FMPA’s Audit and Risk Oversight Committee met last Thursday and approved: 1) the financial audit report for fiscal 2011, and 2) the risk review and recommendation for FMPA’s Asset Management and Operations Risk Management Policy. The full agenda package is available on the Member Portal. Contact: Rich Popp


Board of Directors

FMPA’s Board of Directors held a special-called meeting last Thursday and approved: 1) the expenditure of development funds with Florida transmission service providers, 2) a policy direction for a possible St. Lucie Project tender offer and refinancing, 3) a policy direction for a possible Stanton II Project tender offer and refinancing, 4) the financial audit report for fiscal 2011, and 5) the amendment agreement to the existing forward sale agreement with Merrill Lynch for the St. Lucie Project. The full agenda package is available on the Member Portal. Contact: Nick Guarriello


ARP Executive Committee

The ARP Executive Committee met last Thursday and approved: 1) Amendment 4 to the Florida Municipal Power Pool agreement and OUC Control Center Services agreement, 2) the financial audit report for fiscal 2011, 3) revisions to the Origination Transaction Risk Management Policy, and 4) revisions to the Asset Management and Operations Risk Management Policy. The full agenda package is available on the Member Portal. Contact: Nick Guarriello


Joint AROC and EC Workshop

FMPA’s Audit and Risk Oversight Committee and the ARP Executive Committee agreed last Thursday on a date for a joint workshop to consider options for smoothing energy rates, such as a physical natural gas purchase structure and the Inteal Hedging proposal. The workshop will be held Feb. 15 at 2 p.m. in the Board room. Contact: Nick Guarriello


Fiscal 2011 Financial Report

The fiscal 2011 independent financial audit of FMPA and its projects was approved last week by the Agency’s audit committee and goveing boards. The report from Purvis Gray and Company provided an unqualified opinion on the Agency’s financial statements for the fiscal year ended Sept. 30, 2011, as well as on inteal controls over financial reporting and tests of compliance with certain provisions of laws, regulations, contracts and other matters. The report’s highlights include: 1) total assets were $2.4 billion, a $27.1 million increase from the prior year, 2) total revenues were $650 million, a decrease from the prior year due to declining fuel prices, and 3) a reduction in purchased power costs as more of the All-Requirements Project’s energy was supplied by owned generating resources. The report shows that the All-Requirements Project’s fiscal 2011 cost per megawatt hour decreased by 11% compared to fiscal 2010 and decrease 20% since fiscal 2009. Lower fuel prices are the main reason for the decline in rates. Contact: Mark Larson


2011 ARP Generation Performance Report

The generating units for FMPA’s All-Requirements Project had an outstanding operating year, as reported in the 2011 Generation Performance Report discussed last Thursday at the Audit and Risk Oversight Committee. FMPA’s generation goals are to exceed 92% equivalent availability factor (EAF) from June through September and to exceed annual industry averages published in the national Generating Availability Data System. Each of the All-Requirements Project’s base/intermediate generation units—which includes Treasure Coast Energy Center Unit 1, and Cane Island Units 2, 3 and 4—met or exceeded the annual industry averages. All of these units also exceeded FMPA’s 92% EAF goal, except Cane Island Unit 4, which began commercial operation in July 2011. All units were operated within environmental permits and within approved operating budgets. Contact: David Schumann


Natural Gas Falls to a Decade-Low Price

The price of natural gas slid 6.1% to $2.32 per 1,000 cubic feet last Thursday after the Energy Department said the nation’s supplies were 21% above the five-year average. This is the lowest natural gas prices have been since February 2002 and the first time ever that natural gas has been priced lower than coal. Low natural gas price are an advantage for FMPA’s largely natural gas-fueled generating fleet. The current price environment recently has made FMPA a net seller in the Florida Municipal Power Pool, which is tuing off coal-fired power plants, when possible, in favor of more economical gas units. Contact: Nick Guarriello


RFQ for Facility Rating Services

FMPA issued a Request for Qualifications (RFQ) last Wednesday for a professional surveyor and mapper to verify field conditions of transmission lines owned by participating FMPA members. FMPA developed the RFQ on behalf of five members and one non-member who are required to comply with a facility rating methodology established by the North American Electric Reliability Corporation. Statements of qualifications are due at FMPA by Feb. 28. Contact: Mike Siefert


Vero Beach Appoints FMPA Representative

The Vero Beach City Council appointed Mayor Pilar Tuer last Tuesday as the city’s representative on FMPA’s Board of Directors. Contact: Nick Guarriello





Member Relations Survey

FMPA’s Public Relations Department holds a planning session Monday for the 2012 Member Relations Survey. The biennial survey measures specific qualities of FMPA’s relationship with members and requests suggestions for how FMPA can have a positive impact on member relations. FMPA has conducted the survey every two years since 2000. The survey is scheduled to launch in mid-February. Contact: Mark McCain


EECBG Solar PV Installations

Newberry unveils a new solar photovoltaic system on Monday that is installed on the roof of the Easton-Newberry Sports Complex. The system consists of 42 solar panels that will produce an average of 15,000 kWh per year. Newberry—as well as the cities of Green Coves Springs, Mount Dora, Starke and St. Cloud—received funds for the project from an Energy Efficiency and Conservation Block Grant program. The solar generators will serve municipal facilities and provide an educational component about solar power. Contact: Sharon Smeenk or Mike Siefert


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 Jan. 22. Contact: Jim Atz


Special Dates

Congratulations to Susan Schumann, who celebrates 14 years with FMPA on Thursday, Jan. 26.


Congratulations to Frank Gaffney, who celebrates three years with FMPA on Saturday, Jan. 28.


Congratulations to Jim Atz, who celebrates five years with FMPA on Sunday, Jan. 29.





FMEA Legislative Rally

The Florida Municipal Electric Association (FMEA) will hold its annual Legislative Rally on Jan. 30 and Jan. 31 in Tallahassee. The rally gives participants an opportunity to discuss important electric industry issues with state legislators. For more information, visit APPA’s” rel=”nofollow”>>APPA’s website for more information.





Florida Power & Light to Seek Base Rate Increase

Florida Power & Light notified state regulators last Tuesday that it will request a 7.2% increase its base rate, equal to $695 million annually or $6.80 a month for a residential customer using 1,000 kWh. If approved by the Public Service Commission (PSC), the new rates would be effective in January 2013. In a letter to the PSC, FPL said the increase is needed to pay for the rising cost of doing business and to begin paying for a new natural gas power plant in Cape Canaveral after it enters service in June 2013. Currently, an FPL residential customer using 1,000 kWh per month pays $94.62. The rate increase is expected to raise that to $101.42, unless there is a change in the fuel charge. If fuel charges drop as currently predicted, the monthly charge could be $97.62, FPL said. FPL plans to file its formal rate request by the end of March.


Progress Energy Announces Rate Settlement

Progress Energy Florida filed a settlement agreement last Friday with the Florida Public Service Commission (PSC) covering base rates and nuclear power replacement charges that includes a 4% increase in base rates, equal to $150 million annually or $4.93 a month for a residential customer using 1,000 kWh.  If approved by the PSC, the new rates would be effective in January 2013. The deal with the state’s Office of Public Counsel and other consumer advocates also includes: 1) a $288 million refund to customers for replacement power costs associated with the ongoing outage at Crystal River Unit 3, 2) removes CR3 from the rate base while the company continues to analyze options for the plant, and 3) limits charges for the proposed Levy County nuclear project through 2017. The net effect of the rate increase, refund and other settlement provisions would be to add $4.93 to Progress Energy’s current rate of $116.36 per 1,000 kWh. That figure, though, is subject to change if the Commission approves modifications to fuel adjustment and other rates not covered by the settlement during the coming year.


JEA CEO to Retire in Early 2013

The chief executive officer of JEA, Jim Dickenson, announced plans last Tuesday to retire in early 2013. Dickenson’s contract runs through Aug. 3, 2012, but he has agreed to stay on an additional six months at the request of JEA’s Board of Directors. Dickenson was named chief executive officer in 2004. He has held many positions throughout his 39-year career with JEA, which began in 1973 as an engineer in the Transmission Design Group. Prior to his appointment as managing director and chief executive officer, he served as chief operating officer. JEA’s Board of Directors plans to hire a national search firm to help find a replacement and will consider both inteal and exteal applicants.



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 Carina Miles 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 Carina Miles



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