FMPA Weekly | Dec. 19, 2016 | Member Edition

FMPA Weekly


A weekly e-newsletter for FMPA members


Dec. 19, 2016






Award of Appreciation

Joe Hostetler of Kissimmee Utility Authority (KUA) received an award of appreciation last Thursday for his service to FMPA. Joe is retiring from KUA in January after 29 years with the utility. For the past 13 years, Joe has been involved with FMPA, including serving since 2008 as chairman of FMPA’s Audit and Risk Oversight Committee (AROC). Executive Committee Chairman Howard McKinnon presented a plaque to Joe saying he helped guide FMPA through a number of important financial and risk topics at the AROC during the eight years he was chair.


Audit and Risk Oversight Committee

FMPA’s Audit and Risk Oversight Committee met last Thursday to hear several information items. The full agenda package is available on the Portal. At the meeting, Howard McKinnon announced changes in the committee’s representation. Larry Matte of Kissimmee Utility Authority was appointed to replace Joe Hostetler when he retires. In addition, Karen Nelson from Jacksonville Beach was appointed to replace Allen Putnam on AROC. Howard appointed Karen to serve as chairperson of AROC, succeeding Joe when he retires.


Board of Directors

FMPA’s Board of Directors met last Thursday and approved the FPL St. Lucie Project Transmission Service Agreement. The full agenda package is available on the Portal. Contact: Jacob Williams


ARP Executive Committee

The ARP Executive Committee met last Thursday and approved its 2017 meeting schedule. A decision on moving certain costs categorized as fixed to variable for the ARP’s rate making purposes was tabled until after a workshop on the subject. The workshop was scheduled for Jan. 18 at 10 a.m. in FMPA’s Orlando office. The full agenda package for last week’s meeting is available on the Portal. Contact: Jacob Williams


Legislative Meeting

Jacob Williams met last week with state Representative Erin Grall, who was recently elected to represent parts of Indian River and St. Lucie counties, including Vero Beach. They discussed priorities for the upcoming legislative session that starts in March.


IRS Mileage Rate

The Inteal Revenue Service (IRS) has decreased the standard mileage rate used to calculate the deductible costs of operating an automobile for business effective Jan. 1, 2017. The rate decreased from 54 cents to 53.5 cents. The change will be updated on FMPA’s Travel Expense Report Form on the Portal. Members should use the updated IRS rate for travel after Jan. 1. Contact: Mark Larson






AROC Special Called Telephonic Meeting

The Audit and Risk Oversight Committee will hold a special called telephonic meeting on Tuesday at 2 p.m. The purpose of the meeting is to hold an exit conference with FMPA’s exteal auditors Purvis, Gray and Co. Contact: Rich Popp


FM Global

Representatives from FMPA’s insurance provider, FM Global, will meet with senior management on Tuesday to discuss protection needs for FMPA’s power generation fleet. Contact: Rich Popp


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 Dec. 18. Contact: Jim Arntz






Holiday Office Closure

FMPA’s offices will be closed Monday, Dec. 26 in observance of the Christmas holiday. Best wishes to all for a safe and happy holiday.


Distribution Services and Lineworker Staffing Roundtable

Several municipal utilities have reported challenges in recruiting and retaining lineworkers, as well as retaining other key distribution staff members. If your utility faces this issue or has dealt with it, consider attending a Distribution Services and Lineworker Staffing Roundtable to share your needs and experience. The roundtable, organized by FMPA and the Florida Municipal Electric Association, is scheduled for Jan. 25 at 10 a.m. in FMPA’s Orlando office. Attendance is free, and lunch will be provided. Anyone interested in the topic is welcome to attend, including city managers, utility directors, T&D supervisors, lead lineworkers, human resources professionals and others. Registration is available online until Wednesday, Jan. 18.






FMEA Appoints Zubaly as Interim Executive Director

The Florida Municipal Electric Association’s (FMEA) Board of Directors appointed Amy Zubaly to serve as interim executive director effective Jan. 1. She will replace Barry Moline, who submitted his resignation last month to become the executive director of the Califoia Municipal Utilities Association. Amy currently serves as FMEA’s deputy executive director of public affairs and strategic communications. She has been with the association for 17 years.


Trump Expresses Support for Tax-Exempt Municipal Bonds

President-elect Donald Trump expressed his support for tax-exempt municipal bonds at a meeting last Thursday with the U.S. Conference of Mayors in New York City. “His support for the tax exemption was there. That was wonderful news, said Mayor Steve Benjamin of Columbia, S.C., after the meeting with Mr. Trump. The Conference of Mayors was meeting with the president-elect to discuss its top priorities, including the need for greater infrastructure investment and the need to leave intact the tax exemption for municipal bonds. Mayor Benjamin leads a non-partisan coalition of municipal bond issuers and municipal market professional known as the Municipal Bonds for America Coalition. The tax-exemption on municipal bonds has been rumored for elimination by Congress as a way to pay for the cost of individual and corporate tax cuts. The Treasury Department estimates that eliminating that exemption could raise $420 billion in revenue for the federal govement between 2017 and 2026, which is far more than other exemptions, such as deductions for employee health insurance costs or mortgage interest. Supporters of municipal bonds argue that preserving the tax exemption is the cheapest way to finance the trillions of dollars of new infrastructure that is needed in the U.S.


Trump Selects Perry as Energy Secretary

Rick Perry was selected last week by President-elect Donald Trump to head the Department of Energy. While serving as goveor of Texas, Perry was an advocate for fossil fuels in the oil-rich state and also oversaw a major expansion of wind capacity in Texas. Perry is currently on the board of Energy Transfer Partners, a pipeline company building the Dakota Access Pipeline project, which has been protested by the Standing Rock Sioux and other Native Americans. In addition, Trump named Oklahoma Attoey General Scott Pruitt to head the Environmental Protection Agency.


Damage from Hurricanes Hermine, Matthew Estimated at $1.6 Billion

Hurricane damage in Florida has reached at least $1.6 billion from the two storms that hit parts of North Florida and the East Coast this year, according to the latest numbers from the insurance industry and the state. According to a report from the News Service of Florida, the numbers do not include agricultural losses and some damages that local govements are handling without state assistance. The director of the state’s Division of Emergency Management said the numbers remain preliminary and depend in part on future state funding. The costs tied to Hurricane Hermine and Hurricane Matthew, for which the state expects to receive substantial reimbursements from the Federal Highway Administration and the Federal Emergency Management Agency, are the highest for disasters since the much more expensive 2004 and 2005 hurricane seasons, Division of Emergency Management Director Bryan Koon told members of the Senate Appropriations Committee last Thursday. Damages from Hurricane Hermine, which made landfall in the sparsely populated Big Bend area and swept through Tallahassee in early September, stand around $213.6 million. The more powerful Hurricane Matthew, which stayed offshore but caused damage Oct. 6 and Oct. 7 in Northeast Florida, cost an estimated $1.4 billion. By comparison, the University of Florida’s Bureau of Economic and Business Research has placed damages from the 2004 hurricane season, when four hurricanes hit the state, at $45 billion. Hermine is expected to directly cost the state about $9.6 million for emergency protective actions and debris removal, while expenses for local govement are estimated at more than $5 million.




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 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.


Have a question, comment or story idea for the newsletter? FMPA welcomes your feedback at any time. Contact: Jeff Grainger




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