A weekly e-newsletter for FMPA members
April 4, 2016
General Manager and Chief Executive Officer Job Posting
Resumes are now being accepted for the General Manager and Chief Executive Officer position at FMPA. The job description was posted last week on FMPA’s careers website and advertised on other job services. The deadline to submit resumes is May 2. Contact: Sharon Adams
Ten-Year Site Plan
FMPA’s Planning Department filed the All-Requirements Project’s (ARP) Ten-Year Site Plan last Tuesday with the Florida Public Service Commission. The plan describes the ARP’s estimated power generating needs for the next 10 years and identifies the location and type of proposed long-term generation capacity and transmission additions. Based on recent load projections, the ARP is expected to meet its generation capacity requirements with existing resources through 2023. FMPA will need an additional 36 MW in 2024 to be able to meet generation capacity requirements with an 18% reserve margin. The 2016 Ten Year Site Plan is available on the Member Portal. Contact: Michele Jackson
Cane Island Unit 2
An agreement was finalized Thursday between FMPA and General Electric (GE) to complete repairs on Cane Island Unit 2. The agreement also includes a new Multi-Year Maintenance Program (MMP). The unit was taken off line last October for an unscheduled maintenance outage to repair the compressor and combustion turbine. As part of the negotiated agreement, FMPA will pay GE $4.15 million to replace damaged hot-gas parts with new, upgraded parts. After repairs are complete, the unit will be more efficient and require less maintenance. The savings in maintenance costs is estimated to be $3 million. The MMP expires in 2019, giving FMPA more flexibility in decisions affecting the unit’s operation. Contact: Frank Gaffney
Self-Supplying Transmission Losses
The All-Requirements Project (ARP) expects to save $2.5 million per year since it began supplying its own transmission losses last Friday on the jointly owned transmission system of Florida Keys Electric Cooperative (FKEC) and Keys Energy Services. ARP had been purchasing losses from FKEC since 1998 at the rate for capacity and energy charged by Florida Power & Light (FPL) under the FPL/FKEC Partial Requirements Agreement and then since May 2011 the FPL/FKEC Full Requirements Agreement. By self-supplying losses from ARP’s own generating resources, ARP will avoid paying FKEC for the capacity component of the losses and save money. To make the switch to self-supply, FMPA staff worked with FPL on changes to FPL’s billing and accounting systems that support the ARP’s Network Integration Transmission Service with FPL and developed new loss projection and scheduling procedures for staff at Florida Energy Marketing, the marketing arm of the Florida Municipal Power Pool. Contact: Michele Jackson
Property Insurance Visit
Representatives from FMPA’s property insurance provider, FM Global, visited the Orlando headquarters on Thursday to inspect the building’s structure and safety systems. While their report has not yet been issued, no significant findings are expected. FM Global also will review bid specifications for a new roof on the building, a project that is planned in the coming months. Contact: Rich Popp
Water Conservation Team
FMPA’s Trent Lewis is participating on a team focused on water conservation. The Central Florida Water Initiative recently expanded its scope to include the power generation and industrial sectors in Orange, Osceola, Polk and Seminole counties. Previously, they focused on just public water supply and agricultural sectors. One of the team’s goals will be to develop a strategy to save 270,000 gallons per day from water currently used for power generation in the region. The team held their first meeting last week.
ARP Bond Refinancing
FMPA’s finance team will close Tuesday on a refinancing for a portion of the All-Requirements Project (ARP) Refunding Revenue Bonds, Series 2008A and Series 2009A. The refinancing will net $63.7 million in gross savings, which exceeded original projections when the ARP Executive Committee approved the refinancing on Jan. 21. The savings will reduce future costs for the 13 cities in ARP. The savings are approximately $1.7 million in 2016 increasing to $4.6 million in 2020 and for the most part, thereafter, until maturity. The bonds are underwritten by Bank of America Merrill Lynch and Wells Fargo Securities in a negotiated sale. Contact: Mark Larson
ARP Conservation Program Quarterly Reports
All-Requirements Project participants are reminded to submit by April 15 their utilities’ quarterly reports documenting energy conservation efforts between January and March 2016. The quarterly report form is available on the Member Portal. If you have no activity to report, please contact Sharon Smeenk and let her know.
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 April 3. Contact: Jim Arntz
Congratulations to Gloria Reyes, who celebrates one year with FMPA on Wednesday, April 6.
Policy Makers Liaisons Committee
The Policy Makers Liaisons Committee will meet April 20 at 1 p.m. in the first-floor conference room at FMPA’s Orlando office. Lunch will be served at noon. Contact: Mark McCain
Audit and Risk Oversight Committee
The Audit and Risk Oversight Committee will meet April 21 at 8:30 a.m. in the Board room at FMPA’s Orlando office. Contact: Rich Popp
Board of Directors
The Board of Directors will meet April 21 in the Board room at FMPA’s Orlando office. The meeting starts at 9:30 a.m. or immediately following the Audit and Risk Oversight Committee meeting. Contact: Nick Guarriello
ARP Executive Committee
The ARP Executive Committee will meet April 21 in the Board room at FMPA’s Orlando office. The meeting starts at 10 a.m. or immediately following the Board of Directors meeting. Contact: Nick Guarriello
Business Planning and Budget Committee
The Business Planning and Budget Committee will meet April 25 at 9 a.m. in the Board room of FMPA’s Orlando office. Contact: Mark Larson
Distribution Reliability Roundtable
FMPA will host a Distribution Reliability Roundtable on April 28 at 10 a.m. at FMPA’s Orlando office. The roundtable provides a forum for participants to discuss topics such as reporting procedures, definitions, interpretations, best practices and more. is requested by April 22. Contact: Sharon Smeenk
Supreme Court Approves Wording for Solar Constitutional Amendment
The Florida Supreme Court approved the wording of a solar ballot proposal last Thursday that, if approved by voters, would add solar energy regulations to the state Constitution. In a 4-3 ruling, the court found that the wording of the ballot initiative backed by major utilities meets the legal standards to go before voters in November. The court did not rule on the merits of the proposed amendment, which is sponsored by Consumers for Smart Solar. Instead, the court found that the measure meets wording requirements, such as being limited to a single subject and being unambiguous. Justice Barbara Pariente wrote a sharply worded dissenting opinion, backed by justices Peggy Quince and James E.C. Perry, saying, “Let the pro-solar energy consumers beware. Masquerading as a pro-solar energy initiative, this proposed constitutional amendment, supported by some of Florida’s major investor-owned electric utility companies, actually seeks to constitutionalize the status quo.
APPA: Natural Gas to be Top Fuel Source
Natural gas will continue to be the top fuel source for utilities in the U.S., according to a report from the American Public Power Association. Nearly half of all new capacity in the next year will be fueled by natural gas, followed by wind and solar, the report said. The country has just over 1.17 million MW of generating capacity, but retirements outpaced capacity additions in 2015. Most retirements planned for 2016 are expected to be replaced by natural gas. The role of wind and solar supplying new generation capacity is expected to continue in 2016 due to a five-year extension on wind and solar federal tax credits and continuing economic and regulatory pressure to close coal plants.
States Ask Supreme Court to Stop MATS Rule
Michigan and 19 other states are asking the U.S. Supreme Court to stop the Environmental Protection Agency (EPA) from enforcing its Mercury and Air Toxic Standards (MATS). The filing says EPA should have considered the costs of implementing the rule when it was devised. Last year, when considering the separate Clean Air Act, the court ruled that cost should have been a factor in determining emissions standards. The MATS rule is designed to reduce emissions of pollutants from power plants, including mercury.
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 Jeff Grainger 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.)
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