FMPA Weekly
A weekly e-newsletter for FMPA members
Feb. 1, 2016
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LAST WEEK
Mayfield Bill
The House Govement Operations Appropriations Subcommittee unanimously approved a bill last Thursday proposed by Rep. Debbie Mayfield (R-Vero Beach) that would subject FMPA to several new regulatory requirements. House Bill 579 would require: 1) additional financial reporting for each individual generating asset of FMPA, including an annual “fair market value of each asset as determined by a “willing buyer and willing seller, and 2) that members of FMPA’s goveing body be elected officials. Mark Larson and Town of Havana Councilman Matt Thro testified against the bill. The next stop for the bill is the House Regulatory Affairs Committee. No hearing date has been scheduled. Also, no hearing date has been scheduled for a companion bill, Senate Bill 840, proposed by Sen. Wilton Simpson (R-New Port Richey). Contact: Mark McCain
Utility Rates
FMPA’s All-Requirements Project (ARP) serves the five lowest-cost utilities in Florida, according to data released last Tuesday by the Florida Municipal Electric Association (FMEA). The retail electricity rates of Florida’s municipal electric utilities in December 2015 were 11% less than the average for the state’s investor-owned utilities. The average cost for the 13 cities served by ARP was $111 per 1,000 kWh, or 14% below the average investor-owned utilities’ cost of $129 per 1,000 kWh. Of Florida’s 33 municipal electric utilities listed in the FMEA comparison, 32 were below the investor-owned utilities’ average cost. Municipals were the lowest cost provider in 15 different rate comparison categories. The City of Quincy reported the lowest bills in eight categories, while the Town of Havana was lowest in seven categories.
ARP Bond Refinancing
FMPA’s Finance Department continued work last week on the planned refinancing of a portion of All-Requirements Project Series 2008A and 2009A revenue bonds. Finance completed its initial draft of the Preliminary Official Statement and submitted it to both Moody’s Investors Service and Fitch Ratings for review. FMPA is scheduled to meet with Moody’s on Monday and Fitch on Feb. 10 to discuss the project’s credit rating. After receiving the updated credit reviews, the new bonds, Series 2016A, will be priced. Pricing is scheduled for Feb. 17 and Feb. 18. FMPA plans to close the refinancing April 5. Contact: Mark Larson
Chris Gowder Appointed to NERC and NAESB Committees
Congratulations to Chris Gowder, who was recently elected to the North American Electric Reliability Corporation Standards Committee for a two-year term beginning January 2016. Chris also was appointed to the North American Energy Standards Board Executive Committee for a two-year team.
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THIS WEEK
FMEA Legislative Rally
Fred Bryant, Jody Finklea, Mark McCain, Dan O’Hagan and Amanda Swindle attend the Florida Legislative Rally on Monday and Tuesday in Tallahassee. Participants will meet with state legislators to discuss the most important electric issues in their communities.
Compliance Workshop
The Compliance Department hosts a two-day Compliance Workshop on Monday and Tuesday at FMPA’s Orlando office. Discussion topics will include new North American Electric Reliability Corporation standards, including cybersecurity standards that are effective April 1. Contact: Carol Chinn
All-Requirements Project January Load Statistics
The All-Requirements Project’s non-Contract Rate of Delivery peak for January was 993 MW, which occurred Jan. 25 between 7 a.m. and 8 a.m. The project’s load factor for January was 59%. 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 93% of the budgeted peak, and energy was 99% of the budget. A graph showing the All-Requirements Project hourly load for January is available on the Member Portal. Contact: Jim Arntz
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COMING UP
ARP Telephonic Rate Workshop
The ARP Executive Committee will meet Feb. 9 at 2 p.m. via conference call for the monthly All-Requirements Project Rate Workshop. Contact: Jim Arntz
Distributed Generation and Other Rate Design Course
The American Public Power Association’s (APPA) Winter Education Institute is scheduled for Feb. 8 through Feb. 12 in Kissimmee. The Institute features basic, intermediate and advanced courses on cost of service and retail rate design, as well as rate design for distributed generation. Participants can focus on a single topic or take multiple courses. There is a $100 discount for people who attend more than one course or who attend with a colleague. Visit APPA’s website for registration information.
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INDUSTRY NEWS
States Ask Supreme Court to Put Hold on Clean Power Plan
A coalition of 25 states petitioned the U.S. Supreme Court last Monday to halt the Environmental Protection Agency’s (EPA) Clean Power Plan because the Court of Appeals for the District of Columbia Circuit declined to stay the rule. EPA’s rule aims to reduce carbon dioxide emissions from existing power plants by 32% below 2005 levels by 2030. The coalition described the Clean Power Plan as the most far reaching and burdensome rule EPA has ever forced onto the states. The Chief Justice has requested a response from EPA by Thursday at 3 p.m. A group of 60 utility companies and energy industry trade groups also filed a second request to the Chief Justice for a stay of the plan.
FPL’s Profits Increase in 2015
Florida Power & Light (FPL) last Thursday reported higher profits for the fourth quarter of 2015 and the year overall. FPL said it had fourth quarter net income of $365 million, compared to $286 million during the same period in 2014. For all of 2015, FPL reported net income of $1.65 billion, compared to $1.52 billion in 2014. FPL has requested a base-rate increase beginning in 2017. The rate increase is subject to approval by the Florida Public Service Commission.
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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 Joscelyn Bivins 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 Joscelyn Bivins
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Florida Municipal Power Agency
8553 Commodity Circle
Orlando, FL 32819-9002
Tel 407 355-7767
Fax 407 355-5794
Community Power. Statewide Strength. ®