FMPA Weekly | April 2, 2012 | Member Edition

FMPA Weekly


A weekly e-newsletter for FMPA members


April 2, 2012







2012 ARP Load Forecast
FMPA recently published the 2012 ARP Load Forecast. This report forecasts the peak load and net energy for load (NEL) of the All-Requirements Project (ARP). The 2012 Load Forecast has been prepared for a 20-year period, beginning 2012 through 2031. The results of the forecast reflect that the total NEL of current ARP members is expected to grow at an average annual rate of 1.7% from fiscal 2012 to fiscal 2021 and 1.6% from fiscal 2022 to fiscal 2031. This is slightly lower than last year’s forecast, which projected an annual growth rate of 1.9% through fiscal 2020 and the same growth rate as last year’s forecast in the longer term. The lower projected load is due to a slower than normal economic recovery in Florida, which lags behind the rest of the nation. The ARP’s coincident peak demand for fiscal 2012 is projected to be 1,265 MW, or 0.6% higher than the actual peak demand for fiscal 2011 of 1,258 MW. The forecasted annual peak demand is 3% to 4% lower than the 2011 Load Forecast. Contact: Michele Jackson


Ten Year Site Plan

FMPA’s Power Supply and Planning Department filed the Agency’s Ten Year Site Plan last Friday with the Florida Public Service Commission. The Plan describes FMPA’s estimated power generating needs for the next 10 years and identifies the location and type of proposed near-term generation capacity and transmission additions. Based on recent All-Requirements Project load projections, there is no need for additional resources until 2022, which is beyond the 2012 Ten Year Site Plan study period. At this time, FMPA is not planning to add any power generation or power purchases in the 10-year period. The 2012 Ten Year Site Plan is available on the Member Portal. Contact: Michele Jackson







APPA CEO Roundtable

Nick Guarriello is attending the American Public Power Association’s (APPA);jsessionid=DztbJfGSn7p4d7cnyBQz9mlmMSn9LqfJm0hr1rBnLr8hXGhSgtbG%21403453629> the NNOG website. FMPA’s Steve Ruppel chairs the NNOG Steering Committee.


Lineman’s Roundtable

FMPA’s semi-annual Lineman’s Roundtable is May 3 at 10 a.m. at Gainesville Regional Utilities. The roundtable provides line crews a forum to exchange ideas on operating practices, safety, training, tools, equipment and other common issues. Lunch will be provided. The deadline to>register; is April 20. Contact: Sharon Samuels


CAA Update Workshop

FMPA is hosting a Clean Air Act Workshop May 9 at 10 a.m. in the Board room. Bob Kappelmann of RLK Associates will discuss topics including: 1) Clean Air Act basics, 2) understanding the National Ambient Air Quality Standards revision process, 3) understanding the relationship between New Source Review and New Source Performance Standards, 4) EPA’s New Source Review enforcement policy, and 5) emerging Clean Air Act issues. Plant staff, utility managers, utility directors and city managers are encouraged to attend. The cost is $250 for FMPA members and $300 for non-FMPA members. Lunch will be provided. Members who are unable to attend in person can register to attend via webcast. The deadline to>register; is May 4. Contact: Mike Siefert







EPA to Reduce Carbon Emissions from New Power Plants
The Environmental Protection Agency (EPA) issued a New Source Performance Standard last Tuesday that would require any new fossil-fuel power plant to emit no more than 1,000 pounds of carbon dioxide per MWh of electricity produced, calculated over a rolling 12-month period. This compares to average coal plant emissions of about 1,800 pounds of carbon dioxide per MWh and average natural gas plant emissions of 850 pounds per MWh. The proposed rule does not apply to existing plants or units that start construction over the next 12 months. EPA said that because the standard is in line with current industry investment pattes, it is not expected to have notable costs and is not projected to impact electricity prices or reliability. For purposes of the rule, fossil-fuel-fired generating units include fossil-fuel-fired boilers, integrated gasification combined-cycle units and stationary combined-cycle turbine units that generate electricity for sale and are larger than 25 MW, EPA said. The proposed rule does not apply to simple-cycle combustion turbines or units subject to emission requirements under the Clean Air Act’s solid waste combustion provisions. Asked if the rule would apply to modifications to existing plants, EPA Administrator Lisa Jackson said pollution control projects needed to meet other rules would be exempt. The American Public Power Association (APPA) said it was “extremely disappointed with the proposed rule. Mark Crisson, president and CEO of APPA, said in a statement, “In our view, this proposed rule effectively kills coal going forward as a resource for electricity generation and contradicts the Obama Administration’s claim that it will pursue an ‘all of the above’ fuel strategy for meeting the nation’s energy needs.



Duke, Progress File New Market Power Mitigation Plan with FERC

Duke Energy and Progress Energy said last Monday that they would build seven transmission upgrades in the Carolinas in the next three years to alleviate most market power mitigation conces posed by their proposed merger. In a filing at the Federal Energy Regulatory Commission, the companies said the $110 million in upgrades, coupled with a new transmission project already in development, would increase their transmission systems’ power-import capabilities into the Progress Energy Carolinas and Duke Energy Carolinas service area to provide access to alteative supplies that is significantly greater than the amount of competition that would be lost due to the merger. Until the transmission improvements are complete, Duke and Progress plan to sell 800 MW during summer off-peak hours, 475 MW during summer peak hours, 225 MW during winter off-peak hours and 25 MW during winter peak hours to the marketers. To date, Duke and Progress have received merger-related approvals from, or met the requirements of the Nuclear Regulatory Commission, Kentucky Public Service Commission, and the shareholders of both companies. Additionally, they have met their obligations with the U.S. Department of Justice under the Hart-Scott-Rodino Act (HSR). However, because the merger will not close by April 26, new HSR filings are required. Duke and Progress made new filings on March 22.



State Regulators Approve FPL Port Everglades Plant

The Florida Public Service Commission unanimously approved Florida Power & Light’s (FPL) proposal last Tuesday to replace its Port Everglades power plant in Brevard County. FPL first proposed the 1,277 MW combined-cycle natural gas plant last November. FPL says the new plant would save customers $469 million, when compared to its existing gas- and oil-buing facility that dates back to the 1960s. FPL plans to begin construction in 2014 with hopes to bring the plant online in June 2016. Customers will begin paying for the new Port Everglades Next Generation Energy Center after it goes into service.





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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