FMPA Weekly
A weekly e-newsletter for FMPA members
April 3, 2017
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LAST WEEK
Ten-Year Site Plan
FMPA’s Planning Department filed the All-Requirements Project’s (ARP) Ten-Year Site Plan last Friday 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 22 MW in 2024, 40 MW in 2025 and 58 MW in 2026 to be able to meet generation capacity requirements. The 2017 Ten Year Site Plan is available on the Portal. Contact: Michele Jackson
Member Services Advisory Committee
The Member Services Advisory Committee met last Thursday and approved renewing a subscription to Grandfinder.com. At the meeting, FMPA’s Member Services Department also presented an annual report on services. The department coordinated and implemented a range of services to assist members in 2016, including training programs, roundtable events, joint purchasing and other services. Among the highlights, a total of 646 participants attended 24 events in 2016, and services were utilized by 29 of the state’s 34 municipal utilities. FMPA’s Member Services Year in Review for 2016 is available for download on the Portal. Contact: Sharon Smeenk
Conservation and Renewable Energy Advisory Committee
The Conservation and Renewable Energy Advisory Committee met last Thursday and approved funding the All-Requirements Project’s (ARP) Conservation Program at $750,000 for fiscal 2018, an increase of $50,000 over fiscal 2017. The program will be funded out of revenues collected through the ARP energy rate at an approximate rate impact of $0.13 per Megawatt hour. This funding level will be recommended to the ARP Executive Committee for consideration in April. The full agenda package is available on the Portal. Contact: Michele Jackson
Unit Maintenance Outage
Treasure Coast Unit 1 came back online last Saturday after a planned maintenance outage Contact: David Schumann
3 Phase Times
FMPA’s Power Resources Division published the February 2017 edition of 3 Phase Times. This monthly report provides information about the All-Requirements Project’s (ARP) system peak, hourly loads, resource fuel mix, natural gas usage, natural gas pricing and more performance information. The report shows that natural gas represented 87.7% of ARP’s total energy sources in February. ARP sold 121,103 MWh to the Florida Municipal Power Pool (FMPP) at an average price of $23.82 per MWh, which was higher than the estimated short-term forecast of 54,684 MWh. The FMPP Average Monthly Gas Dispatch Price in February was $2.94 per MMBtu, which is 52 cents lower than January’s average. For more information, download 3 Phase Times from the Portal. Contact: Frank Gaffney
All-Requirements Project March Load Statistics
The All-Requirements Project’s non-Contract Rate of Delivery peak for the month of March was 825 MW, which occurred March 29 between 4 p.m. and 5 p.m. The project’s load factor for March was 62%. 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 monthly peak was 114% of the budgeted peak, and energy was 103% of the budget. A graph showing the All-Requirements Project monthly load for March is available on the Portal. Contact: Jim Arntz
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THIS WEEK
Stock Island Visit
David Schumann and Tim Jackson travel to the Stock Island Generating Facility in Key West on Monday for a meeting with the Oversight Committee on the fiscal 2018 budget. While at the site, they will also conduct a maintenance walk-through.
Distribution Reliability Program Roundtable
FMPA’s annual Distribution Reliability Roundtable is Tuesday at 10 a.m. in FMPA’s Orlando office. The roundtable will provide a forum for participants to discuss distribution and reliability topics, including the reporting process, definitions, interpretations and best practices. Contact: Sharon Smeenk
Human Resources Roundtable
FMPA’s Human Resources Roundtable is Thursday at 10 a.m. in FMPA’s Orlando office. Discussion topics will include benefits, recruiting, retention, training, policies and more. Contact: Sharon Smeenk
ARP Telephonic Rate Workshop
The ARP Executive Committee meets Thursday at 2 p.m. via conference call for the monthly All-Requirements Project Rate Workshop. The agenda includes: 1) an update on natural gas markets and liquidity, 2) an overview of March operations, loads, costs and rate calculations, and 3) estimated rates for April and May. Contact: Jim Arntz
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 April 2. Contact: Jim Arntz
Special Dates
Congratulations to Gloria Reyes, who celebrates two years with FMPA on Thursday, April 6.
COMING UP
Policy Makers Liaisons Committee
The Policy Makers Liaisons Committee will meet April 19 at 1 p.m. in FMPA’s Orlando office. Lunch will be provided at noon. Contact: Mark McCain
April Governing Board Meetings
The Board of Directors and ARP Executive Committee will meet April 20 at FMPA’s Orlando office. The Board of Directors will meet at 9 a.m. and the Executive Committee at 9:30 a.m. Contact: Jacob Williams
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INDUSTRY NEWS
President Orders Rewrite of Clean Power Plan
President Donald Trump issued an executive order last Tuesday directing the Environmental Protection Agency (EPA) to start the process of re-evaluating and rewriting the Clean Power Plan. The president’s order itself does not rescind the Clean Power Plan. Instead, EPA will initiate a traditional notice and comment rulemaking process seeking to revoke the regulation in its current form. There is no timeline for the release of a revised plan. The president said he believes this change in regulation will stimulate an economic recovery of the coal industry.
Natural Gas Investment Bill Clears Florida Subcommittee
The Florida House Energy & Utilities Subcommittee voted 9-6 last Tuesday to advance a bill that would allow investor-owned utilities to invest in natural gas drilling projects and recoup the money from customers. The Florida Supreme Court ruled last year that the Florida Public Service Commission exceeded its legal authority in 2014 when it gave approval to Florida Power & Light (FPL) to invest in the drilling and production of natural gas in what is known as the Woodford Gas Reserves Project. The legislation would create a regulatory framework for allowing utilities to invest in natural gas reserves. Provisions of the bill require that this authority would only apply to utilities that rely on natural gas to generate at least 65% of its electricity. FPL and the bill’s supporters say that such investments can lead to long-term savings for customers.
Westinghouse Files for Bankruptcy Protection
Westinghouse Electric Co., LLC filed for Chapter 11 bankruptcy protection from creditors last week. Westinghouse is the nuclear power plant construction arm of Toshiba Corporation and is currently constructing reactors at the Vogtle plant in Georgia and the Summer plant in South Carolina. Company officials said work will continue at those two sites during the initial bankruptcy assessment period. The company says it is still committed to the AP1000 nuclear reactor design and intents to complete the projects in Georgia and South Carolina, as well as projects in China. The two units in Georgia are scheduled to be in service in 2019 and 2020 while the two units in South Carolina are scheduled to be online in 2020. Those schedules are now under review.
PSC Staff Backs Fuel Hedging for Investor-Owned Utilities
The Florida Public Service Commission is scheduled to receive a staff report this Tuesday recommending that investor-owned electric utilities be able to hedge natural-gas prices. The state Office of Public Counsel, which represents consumers, and business groups argued last year that hedging has led to financial losses for consumers. That led the Public Service Commission to approve a moratorium on new hedges through 2017 while the issue could be studied and negotiated.
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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 Jeff Grainger or Sean Murtha in FMPA’s Public Relations Department.
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Have a question, comment or story idea for the newsletter? FMPA welcomes your feedback at any time. Contact: Jeff Grainger or Sean Murtha