FMPA Weekly | June 13, 2016 | Member Edition

FMPA Weekly


A weekly e-newsletter for FMPA members


June 13, 2016






Executive Search Committee

The Executive Search Committee completed 10 candidate interviews last week for FMPA’s General Manager and CEO position. The committee will conduct two additional interviews for the position on June 23. Contact: Sharon Adams


Solar Survey

FMPA’s Board of Directors has approved the use of the Agency’s Development Fund for the investigation of a joint-action solar photovoltaic (PV) project. The first development activity is to survey retail electric customer to gauge their support for a solar PV project. The survey results are intended to help FMPA’s members decide whether or not to participate in the project. Mark McCain and Sharon Smeenk have held discussions recently with two market research firms and one municipal electric utility that have conducted similar surveys on solar. An update will be presented to the Board of Directors at its meeting on June 23, and staff will seek feedback related to the survey process, procurement and cost allocation.






APPA National Conference

Nick Guarriello and Mark McCain are in Phoenix, Ariz., Monday through Wednesday attending the American Public Power Association’s National Conference. Presentation topics will include: 1) geopolitical security threats, 2) leadership and preparedness for our times, 3) countdown to election day, and 4) public power forward: our changing customers. The conference will also include breakout sessions discussing public power topics.


Management Development Program

The second module of Series II of the Management Development Program will be held Tuesday and Wednesday at FMPA’s Orlando office. Discussion topics will include building effective teams and teamwork and leading positive change. These dates were originally scheduled for the third module, but the schedule was pushed back last month. Module III is now scheduled for June 29 and June 30. Contact: Sharon Smeenk


FMEA Annual Conference

Friday is the hotel registration deadline for the 2016 FMEA Annual Conference, which will be held July 19-22 at the Omni Orlando Resort at Champions Gate. The conference begins July 19 with preconference seminars and a welcome reception. The following days include general sessions and breakout sessions on a variety of industry topics, including: 1) Florida politics and the media, 2) the 7 drivers of change for the future of electric utilities, 3) the upcoming election, and more. Hotel and registration information is available on FMEA’s website.


All-Requirements Project Weekly Load Statistics

The weekly update of the All-Requirements Project historical load graph has been posted on the Portal. The graph is updated through June 12. Contact: Jim Arntz


Special Dates

Congratulations to Richard Montgomery, who celebrates nine years with FMPA on Saturday, June 18.






Hurricane and Emergency Preparedness Roundtable

FMPA and the Florida Municipal Electric Association will hold a Hurricane and Emergency Preparedness Roundtable on June 21 at 10 a.m. in the Board room at FMPA’s Orlando office. This roundtable will provide an opportunity to review procedures and network with utility peers. The focus will be on mutual aid programs. Contact: Sharon Smeenk


Audit and Risk Oversight Committee

The Audit and Risk Oversight Committee will meet June 23 at 8:30 a.m. in the Board room of FMPA’s Orlando office. Contact: Rich Popp


Board of Directors

The Board of Directors will meet June 23 in the Board room of FMPA’s Orlando office at 9:30 a.m. or immediately following the Audit and Risk Oversight Committee. Contact: Nick Guarriello


ARP Executive Committee

The ARP Executive Committee will meet June 23 in the Board room of FMPA’s Orlando office at 10 a.m. or immediately following the Board of Directors meeting. Contact: Nick Guarriello






Investor-Owned Utilities Reduce Fuel Hedging Program

The Florida Public Service Commission (PSC) decided last week to accept a proposal from the state’s investor-owned utilities to reduce their fuel hedging programs by 25%. Last year, the PSC directed Florida Power & Light, Duke Energy Florida, Gulf Power and Tampa Electric to explore changes to their hedging programs in order to minimize losses for consumers. Hedging activities of the four utilities have cost consumers $6.6 billion since 2002. Commission Chairwoman Julie Brown and Commissioners Art Graham and Ronald Brisé asked whether a 50% hedging reduction might work. FPL attoey John Butler said, “I am not in a position to agree to 50% sitting here at counsel’s table. We are hedging now for 2017, and we are already pretty deeply into it. Current estimates are that the utilities could lose another $560 million in 2016.


PSC Staff Discusses Possible Refund from FPL Drilling Project

How much credit Florida Power & Light’s (FPL) electric customers might receive, if any, for the company’s investment in a controversial Oklahoma drilling project will depend, in part, on an analysis of the daily cost of natural gas from the project compared to the market price. The Florida Supreme Court on May 19 ruled that the Florida Public Service Commission (PSC) did not have legal authority in 2014 to approve FPL’s request to invest in the Woodford Gas Reserves drilling and production project. Representative from FPL and the PSC staff met last Friday to discuss how to handle $78.4 million that FPL has invested in the project from March 2015 through May 19. PSC staff appeared to agree that before any refund can be set, auditors will have to determine the cost of natural gas FPL received from the Woodford project during that time, calculating daily volumes of gas sold with daily fluctuations in the market price for the gas. Details of the proposal are expected to be presented Aug. 4 to the PSC. The investment cost has been estimated at less than $1 a month on a typical customer’s bill. FPL had argued that by passing along the costs of production, the project would help shield the utility’s customers from future price swings in natural gas. But the state Office of Public Counsel, which represents consumers, and the Florida Industrial Power Users Group led a successful legal challenge that invalidated the regulators’ approval of the project.


Solar Installations Up Nationwide

New solar installations are expected to nearly double by the end of 2016, according to the Solar Energy Industries Association. The solar industry trade group projects that 14,500 MW of new solar capacity will be installed this year. In the first quarter of the year, new installations are up 27% from the year before, with 1,665 MW. The first quarter installations included 721 MW of utility-scale projects and 619 MW in the residential market.




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 Holly Fuller 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: Jeff Grainger or Holly Fuller.




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