FMPA Weekly | Feb. 6, 2012 | Member Edition

FMPA Weekly


A weekly e-newsletter for FMPA members


Feb. 6, 2012





Finance Meetings

Mark Larson and Janet Davis met last Monday with representatives from Barclays to discuss current market conditions and opportunities for future financial transactions. The Finance and Treasury departments also met last Friday with Craig Dunlap, FMPA’s financial advisor, to discuss banking assignments for potential bond transactions for Stanton, Stanton II, St. Lucie and Tri-City projects. The banks and underwriters assigned include Bank of America, PNC Bank, Wells Fargo and J.P. Morgan.


Environmental Risk Update

Amy Deese, Rich Popp and Susan Schumann met last Friday with Orlando Utilities Commission’s environmental staff for a semi-annual environmental risk update on jointly owned assets.


Member Services Visit

Mike Siefert traveled to Newberry last Friday for a member services visit with Utilities Director Blaine Suggs.


Board Room Audio RFP

FMPA issued a request for proposals (RFP) to three companies last Friday to improve the Board room audio quality. After an investigation of audio-visual options, a decision was made by the RFP team to limit the project scope to audio only. Video options will be considered in the future as the technology evolves. The deadline for proposals is Feb. 17. Contact: Mark Larson


All-Requirements Project January Load Statistics

The All-Requirements Project’s peak for January was 1,100 MW, which occurred Jan. 4 between 7 a.m. and 8 a.m. The project’s load factor for January was 54%. 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 92% of the budgeted peak, and energy was 99% of the budget. A graph showing the All-Requirements Project hourly load for the month of January is available on the Member Portal. Contact: Jim Atz





GE Software Research

Jim Hay, Tim Jackson, Tom Reedy, David Schumann and Cane Island Power Park personnel meet Tuesday with representatives from a design consultancy firm called frog that is helping General Electric improve its approach to software development. The company is visiting power plants to develop generalized profiles of plant personnel, ranging from control room operators to executives. During the meeting, they will discuss each individual’s role, tasks they perform, data they monitor and tools they use. This information is intended to create profiles that will help GE develop software that best meets the needs of users.


ARP Telephonic Rate Workshop

The ARP Executive Committee meets Wednesday 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, FST and liquidity, 2) an overview of January operations, loads, costs and rate calculations, and 3) estimated rates for February through April. Contact: Jim Atz


Member City Visit

Bud Boudreaux travels to Vero Beach on Wednesday to meet with Customer Service Manager John Lee. Bud also travels to Bushnell on Thursday to meet with Mayor Bil Spaude and City Manager Vince Ruano.


Treasure Coast Energy Center Site Security

Tim Jackson, Carter Manucy, Rich Popp and David Schumann travel to Treasure Coast Energy Center on Wednesday to meet with Fort Pierce Utilities Authority personnel and representatives from Presidio to evaluate improvements to the plant’s access control and monitoring system. FM Global, the property insurance provider for the All-Requirements Project’s power generating units, recently conducted a site safety audit and recommended improvements to the plant’s security.


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 Feb. 5. Contact: Jim Atz





Joint AROC and ARP Executive Committee Workshop

FMPA’s Audit and Risk Oversight Committee and the ARP Executive Committee will hold a joint workshop Feb. 15 at 2 p.m. in the Board room. Contact: Nick Guarriello


Board of Directors

FMPA’s Board of Directors will hold a special-called meeting Feb. 16 at 9 a.m. in the Board room. Contact: Nick Guarriello


ARP Executive Committee

The ARP Executive Committee meets Feb. 16 in the Board room at 9:30 a.m. or immediately following the Board of Directors meeting. Contact: Nick Guarriello





FERC Considers Advising EPA on Reliability Impacts of MACT Rule
The Federal Energy Regulatory Commission (FERC) is seeking comment on a staff proposal to advise the Environmental Protection Agency (EPA) on requests for extensions of time to comply with EPA’s Mercury and Air Toxics Standards rule. EPA has made it clear that it will have the final say on extension requests based on reliability impacts, the Commission noted in a Jan. 30 staff white paper. FERC’s reviews of such requests would be limited to whether, based on the circumstances presented, there might be a violation of a Commission-approved reliability standard. However, the Commission seeks comments on whether and how it should review issues arising outside of a potential violation of a reliability standard and on whether it should afford some level of deference to planning authorities’ analyses of such requests or conduct its own analysis. Commissioners would vote on written comments to be submitted to EPA. Outside parties would not be allowed to intervene in the preparation of written comments, and requests for rehearing or appeals would not be allowed because FERC’s comments would not constitute a final agency action since EPA will have the final say, the Commission said.


Power Plant Fuel Mix at Issue in Florida Energy Bills

The Florida Senate and House committees on energy both released energy bills last week that will be voted on in committees this week. The Senate Communications, Energy and Public Utilities Committee voted unanimously last Monday to introduce a bill that raises the possibility of cutting the state’s reliance on natural gas to fuel power plants and also includes tax incentives for renewable-energy companies. The Senate bill includes problematic language to reduce the state’s dependence on natural gas that might limit or prohibit the siting of natural gas-fired plants in the future. The bill (SB 2094) will be voted on in the Senate Energy Committee this Monday, but an amendment has been filed that, if approved, would remove the problematic fuel diversity language. The House released its proposed energy bill last Thursday. Many aspects of it are similar to the Senate bill, but the problematic fuel diversity language was not included. The House’s proposed committee bill (PCB ENUS 12-02) will be heard in the House Energy and Utilities Subcommittee on Monday.


OUC to Reduce Fuel Charge in March

The Orlando Utilities Commission Board voted last Wednesday to reduce its fuel charge by 11% thanks to low natural gas costs. The base rate portion of the total electricity bill, which includes non-fuel expenses, will remain the same. The average residential customer using 1,000 kWh per month will see a saving of $4.82, which is approximately 4% of the total bill. The new rates will take effect March 1, pending review by the Florida Public Service Commission.



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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