FMPA Weekly | May 19, 2014 | Member Edition

FMPA Weekly


A weekly e-newsletter for FMPA members


May 19, 2014





2014 Ten-Year Site Plan Data Request

FMPA responded last Tuesday to a supplemental data request from the Florida Public Service Commission (PSC) asking for more information on the All-Requirements Project’s 2014 Ten-Year Site Plan, which was filed April 1. FMPA responded to 54 questions from the PSC, which asked the Agency to: 1) assess the impacts of proposed and new Environmental Protection Agency regulations, 2) project nitrogen oxide, carbon dioxide, sulfur oxide, mercury and particulate matter emissions for the 10-year period, 3) project the impact of electric vehicles on the load forecast, and 4) discuss FMPA’s fuels sources and transportation. Contact: Michele Jackson


Business Planning and Budget Committee

FMPA’s Business Planning and Budget Committee met last Wednesday for its second review of the Agency’s proposed fiscal 2015 budget. The Committee will meet June 5 for its first review of the project budgets and to consider approval and recommendation of the Agency budget to the ARP Executive Committee for final approval. The full agenda package is available on the Member Portal. Contact: Mark Larson


Audit and Risk Oversight Committee

The Audit and Risk Oversight Committee met last Thursday and discussed information items, including: 1) annual environmental report, 2) capital appreciation bonds research, 3) fuels market update, and 4) risk management policy reviews. 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: 1) amendments to KEYS TARP agreements, 2) modification to the FST Plus implementation parameters, and 3) alteative fixed cost allocators. The full agenda package is available on the Member Portal. Contact: Nick Guarriello


Stock Island Generating Facility

The power generating units at Stock Island Generating Facility operated last week as expected during a scheduled transmission line outage. The units operated for approximately eight hours as the Florida Keys Electric Cooperative performed scheduled maintenance on the 120-mile transmission line that connect the Keys to mainland Florida. This week, plant personnel will reconfigure pipes on the fuel tanks to supply ultra-low sulfur diesel to Medium Speed Diesel Units 1 and 2 and Emergency Power Unit 2. Contact: David Schumann





Keys Import Upgrade Project

Phase two of the project to increase the import capacity of the 120-mile transmission line that runs to the Florida Keys from the mainland is on schedule and under budget. This phase includes the installation of a 17 ohm series capacitor and a special protection system to protect the transmission line from the mainland to the Islamorada substation from overloads by shedding load to assist post-transient voltage recovery and reducing imports to within ratings following a contingency. The project is scheduled to be completed in late-August. When complete, the import capacity of the line will be increased to 320 MW from 277 MW, allowing more economic imports and the retirement of the static condenser at the Stock Island Generating Facility. FMPA, Keys Energy Services and Florida Keys Electric Cooperative are partners in the project. Contact: Frank Gaffney


Member City Visits

Fred Bryant and Bud Boudreaux travel to Green Cove Springs on Tuesday for a member city visit with City Manager Danielle Judd, City Attoey Jim Aold, City Councilman Ray Braly and Electric Utility Director Mark Schultz. On Thursday, Bud and Fred travel to Ocala to meet with City Manager Matt Brower, Assistance City Manager Larry Novak and City Councilman Jim Hilty.


ARP Budget Cost Center Teams

FMPA’s Cost Center Teams meet Tuesday and Wednesday via conference call to review the All-Requirements Project’s (ARP) proposed fiscal 2015 budget. The Contract Capacity and Transmission team meets Tuesday at 8:30 a.m. The Gas Transportation and Fuels team meets Tuesday at 9:15 a.m. The Member Capacity, ARP-Owned Capacity and Purchased Power team meets Wednesday at 8:45 a.m. The Debt and Capital Leases, Direct Charges & Other team meets Wednesday at 10:15 a.m. The complete agenda package is available on the Member Portal. Contact: Mark Larson


Energy Auditor Roundtable

FMPA will hold an Energy Auditor Roundtable at JEA on Thursday at 10 a.m. This semi-annual roundtable provides a forum for participants to discuss topics such as work procedures, policies and practices, industry changes, equipment and materials, and other topics of interest. The roundtable is open to any utility staff member who has an interest in energy audit related topics. Contact: Sharon Samuels Redesign

As FMPA prepares to redesign>;, the Agency has launched a brief registration>registration; is requested. Visit FMEA’s>website; for more information. Contact: Sharon Smeenk





Duke to Spend $1.9 Billion on New Natural Gas Units and Upgrades

Duke Energy told the Florida Public Service Commission last Tuesday it plans to spend nearly $1.9 billion to build and upgrade several natural gas units in Florida. If approved, the projects are expected to increase electric rates by nearly 7%. Duke said it plans to build a 1,640 MW natural gas-fired plant in Citrus County and two natural gas-fired units at its Suwannee Plant in Live Oak that would generate up to 320 MW during periods of peak power demand. Duke also plans a 320 MW uprate project at its Hines Energy Complex near Bartow. The new units and uprate project would replace the generating capacity lost by the closing of Crystal River Unit 3 and the proposed retirement of two coal-fired units at Duke’s Crystal River Energy Complex due to changing federal environmental regulations. Duke plans to formally submit its plans for approval on May 27.


Florida Goveor and Cabinet Approve Proposed Nuclear Units for FPL

Florida Gov. Rick Scott and the his Cabinet approved a request last Tuesday from Florida Power & Light (FPL) to certify two new nuclear reactors at the company’s Turkey Point Plant, located approximately 25 miles south of Miami. The project also includes nearly 90 miles of transmission lines in Miami-Dade County. The approval is an important step to provide FPL the option to construct the units. FPL currently estimates the costs for Turkey Point Units 6 and 7 at between $12.8 billion to $18.7 billion. FPL continues to seek approval for the construction and operation of the units from the Nuclear Regulatory Commission (NRC). FPL submitted its application to the NRC for a combined construction and operating license for two Westinghouse AP1000 pressurized water reactors in June 2009. FPL has not made a final decision to construct the two, 1,100-MW reactors, and the operational dates for the reactors would likely not be until approximately 2022 and 2023.


DOE Suspends $750 Million Annual Nuclear Waste Fee

The U.S. Department of Energy (DOE) agreed to stop collecting effective last Friday a small fee on nuclear energy customers’ bill that was supposed to pay for a nuclear waste site that was never built. DOE has agreed to stop the one cent per kilowatt hour surcharge, which added up to about $750 million a year. The U.S. Court of Appeals for the District of Columbia Circuit ruled in November that DOE could not continue to collect these fees since it abandoned the Yucca Mountain waste repository project three years ago and has no plans for an alteative site. The court decision prohibits future collection of the fee until DOE complies with the Nuclear Waste Policy Act or Congress enacts an alteative used fuel management plan.



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 Christin Senior 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 Christin Senior



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