FMPA Weekly | March 26, 2012 | Member Edition

 FMPA Weekly


A weekly e-newsletter for FMPA members


March 26, 2012





Business Model Working Group
The All-Requirements Project’s Business Model Working Group (BMWG) met last Wednesday to discuss an idea for smoothing energy rates called Gas at Nominal Tabs (GANT). The idea was proposed by Kissimmee Utility Authority (KUA) board member Dr. George Gant. KUA staff presented the GANT model to the BMWG. FMPA staff will test the plan’s implementation using several fuel price scenarios. The results will be discussed at the next BMWG meeting scheduled for April 12 at 2 p.m. The full agenda package is available on the Member Portal. Contact: Nick Guarriello


Audit and Risk Oversight Committee

FMPA’s Audit and Risk Oversight Committee met last Thursday and approved retaining Purvis Gray & Company as FMPA’s exteal auditor for fiscal 2012. The Committee also heard informational reports on the annual environmental report for FMPA’s generation, loss control recommendations from FM Global and more. The full agenda package is available on the Member Portal. Contact: Rich Popp


ARP Executive Committee

The ARP Executive Committee met last Thursday and approved two amended and extended Florida Gas Transmission transportation contracts. The Committee also heard informational reports on its travel reimbursement procedure, 2012 load forecast, Ten Year Site plan and more. The full agenda package is available on the Member Portal. Contact: Nick Guarriello


FMPA Goveance Committee

FMPA’s Goveance Committee met last Thursday to discuss alteatives to the current supermajority voting structure. The Committee discussed three options and approved recommending to the Executive Committee that the current 75% supermajority requirement defined in the By-Laws be changed to a simple majority plus one. This would mean that two members of the Executive Committee could still call for a confirming vote on applicable matters, and the second vote would need a simple majority of the quorum present plus one to approve the action. The full agenda package is available on the Member Portal. Contact: Nick Guarriello


St. Lucie, Stanton, Stanton II, and Tri-City Participants

FMPA’s St Lucie, Stanton, Stanton II and Tri-City Project Participants met last Thursday for an initial discussion of future financing options. Additional meetings of the Project Participants will be necessary in the near future to finalize the financing options and recommend final approval to FMPA’s Board of Directors. The full agenda package is available on the Member Portal. Contact: Nick Guarriello


3 Phase Times

FMPA’s Power Resources Division published the February 2012 edition of 3 Phase Times last Thursday. This monthly report provides information about the All-Requirements Project’s (ARP) system peak, hourly loads, resource fuel mix, natural gas usage, natural gas pricing and more performance information. The February report shows that 30 kW of new renewable power generation capacity was added as a result of a tri-party net metering agreement with FMPA, Alteate Energy Technologies and the city of Green Cove Springs. The total renewable generation in ARP cities is now 743 kW. For more information, download 3 Phase Times from the Member Portal. Contact: Tom Reedy


Key West Transmission Line Improvements

Installation of the Dynamic VAR Compensation System is complete at the Big Pine Key Substation. Equipment supplier American Superconductor is currently testing the equipment, connecting the high voltage system and training plant operators. At the Stock Island Substation, the foundation work is complete and all equipment is installed. Final connections are being made and system testing will begin in May. Phase one construction of the VAR system is on schedule to be finished in June. When complete, the system will increase the transmission import capacity from 234 MW to 320 MW along the 120-mile line that spans the length of the Florida Keys. Contact: Frank Gaffney





Member Relations Survey Deadline Extended

FMPA is extending the deadline for its Member Relations Survey to April 2. The survey has been open for more than three weeks and has a response rate of 47%. In such a small group of survey participants, a good response rate is essential to accurately interpret the results of the survey and benchmark performance from survey to survey. FMPA would like every member of the Board, Executive Committee, Audit and Risk Oversight Committee, Business Model Working Group and Policy Makers Liaisons Committee to participate, even if someone else from their city participates too. Whether you are active with FMPA or new to the Agency, FMPA welcomes every member’s perspective. An email from Nick Guarriello to eligible participants contains the link to the survey. Contact: Mark McCain


Member City Visits

Bud Boudreaux and Mark McCain travel to Fort Pierce Utilities Authority and Lake Worth on Monday for member city visits. On Tuesday, Bud and Mark visit Moore Haven and Clewiston. On Thursday, Bud and Fred Bryant travel to Ocala.



2012 Florida Lineman Competition

The Florida Municipal Electric Association (FMEA) hosts the 12th Annual Florida Lineman Competition Friday and Saturday in Gainesville. More than 100 lineworkers are expected to compete. Awards will be given to the top three finishers in the apprentice and team categories. For the winner in each category, FMPA will contribute money toward travel expenses so the top apprentice and team can participate in the national competition. Watch FMEA’s” rel=”nofollow”>>FMEA’s website for more information.



Cane Island Unit 4

Warranty repairs to Cane Island Unit 4 continue this week as General Electric (GE) performs repairs to the unit’s steam turbine. The unit was taken offline Feb. 25 for a planned outage and was expected to retu to service March 30. The high pressure section of the steam turbine was removed for inspection and repair. After examination, GE determined that the high pressure section needed to be shipped to Maine for repair. GE’s schedule estimates bringing the unit back online in late 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 March 25. Contact: Jim Atz


Special Dates

Congratulations to Rick Minch, who celebrates two years with FMPA on Thursday, March 29.





Conservation and Renewable Energy Advisory Committee

FMPA’s Conservation and Renewable Energy Advisory Committee meets April 17 at 2 p.m. via conference call to discuss the fiscal 2013 funding allocation for the All-Requirements Project’s Conservation Program and a potential renewable energy opportunity. Contact: Michele Jackson


Policy Makers Liaisons Committee

FMPA’s Policy Makers Liaisons Committee meets April 18 at 2 p.m. at Orlando Utilities Commission’s Dispatch Center to lea about the Florida Municipal Power Pool and to tour the dispatch operation. Contact: Mark McCain


IEEE Transmission and Distribution Conference and Expo

Volunteers are needed for the 2012 Institute of Electrical and Electronics Engineers Power & Energy Society Transmission and Distribution Conference and Expo, which is scheduled for May 7-10 at the Orange County Convention Center. This event provides power and energy professionals with the latest technical information, trends and best practices. Volunteers are needed to greet guests, assist with registration, chaperone plant tours and more. Volunteers will receive free admission to the exhibit hall. Contact Chris Gowder to volunteer and visit register>register; is May 4. Contact: Mike Siefert


Executive Committee Date Change

The date of the Executive Committee meeting in June has been changed to June 14. Originally, the meeting was planned for June 28. The meeting will be held at FMPA’s Orlando office





FPL files $690.4 Million Base Rate Increase for 2013 with PSC

Florida Power & Light (FPL) filed its formal request last Monday with the Florida Public Service Commission for a $690.4 million base rate increase that is projected to increase residential customer bills by about 2.6% in 2013. FPL is requesting a base rate increase of $6.97 per month for customers using 1,000 kWh, offset by an estimated $4.49 a month net decrease in fuel charges and other adjustments. If approved, residential customers’ bills would increase about $2.48 per month beginning Jan. 1. FPL says the base rate increase is needed to pay for increases in the cost of doing business and to begin paying for a new, high-efficiency natural gas power plant in Cape Canaveral after it enters service in June 2013. FPL expects that, even with the change, its customer bills will still be the lowest in the state and well below the national average.



Officials Cut Lakeland Electric Fuel Rate by 13%

Lakeland City Commissioners voted 7-0 last Monday to decrease the fuel rate for Lakeland Electric customers by 13% from $44.20 to $38.60 per 1,000 kWh. Lakeland Electric Finance Director Don Eckert said the mild winter led to low natural gas prices that haven’t been seen in 10 years. Natural gas prices are down 25% since the beginning of 2012. Storage of natural gas is 52% higher than the five-year average. Last December, Commissioners voted to decrease the fuel rate by nearly 11%, from $49.90 to $44.20 per 1,000 kWh. Eckert said the drop keeps Lakeland Electric as the third-lowest residential rate in the state behind Kissimmee Utility Authority and Florida Power & Light.



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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