FMPA Weekly
A weekly e-newsletter for FMPA members
June 5, 2017
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LAST WEEK
Bartow Bid
Bartow City Commission announced last Wednesday that it intends to award FMPA a contract to supply about 25 MW of peaking power in 2018-2020 and approximately 65 MW of full-requirements power in 2021-2022. FMPA responded to Bartow’s Invitation to Negotiate Power Supply in March. Final action is expected by Bartow City Commission on Monday. One of the strategic initiatives from FMPA’s planning session held last February was to sell excess power, which helps reduce costs for the All-Requirements Project cities. Bartow residents also will benefit from low rates provided by competition in the wholesale power market. If the city approves the award on Monday, the final contracts are expected to be presented for Executive Committee approval within the next few months. Contact: Frank Gaffney
Distribution Reliability Annual Report
Florida Municipal Utilities Group was second best in four out of five major electricity reliability indices when compared to the state’s investor-owned utilities, according to the Distribution Reliability Report for 2016 published last week by FMPA’s Distribution Reliability Measurement Program. The report compares reliability indices of 24 municipal utilities participating in FMPA’s program to the indices of Florida’s investor-owned utilities filed annually with the Florida Public Service Commission. For more information about the report or to participate in FMPA’s program, contact Sharon Smeenk.
Engineering Services RFQ
Interviews with nine short-listed firms were conducted last week for the Resource Planning Engineering Support service area of FMPA’s Request for Qualifications (RFQ) for engineering services. Staff plans on issuing the list of qualified firms in rank order by June 9. A list of qualified firms in rank order for the Engineer of Record service area was issued May 26 after five short-listed firms were interviewed. Interviews for short-listed firms for the remaining two service areas, Substation, Transmission and Distribution Engineering and Transmission Planning and Electric Power Plant Engineering and Power System Analysis are being scheduled for this week and next. The full RFQ is available for download on FMPA.com. Contact: Michele Jackson or Carl Turner
FMPA Gear
New items were added last week to the FMPA Gear e-store for embroidered shirts and apparel. FMPA members are invited to purchase Lands’ End clothing embroidered with the Agency’s logo. FMPA will reimburse the cost of embroidering FMPA’s logo on two items per person per fiscal year. The reimbursement form is available on the Portal. Contact: Mark McCain
3 Phase Times
FMPA’s Power Resources Division published the April 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 82% of ARP’s total energy sources in April. ARP sold 106,533 MWh to the Florida Municipal Power Pool (FMPP) at an average price of $27.48 per MWh. The FMPP Average Monthly Gas Dispatch Price in April was $3.31 per MMBtu, which was 25 cents more than forecasted. For more information, download 3 Phase Times from the Portal. Contact: Frank Gaffney
All-Requirements Project May Load Statistics
The All-Requirements Project’s non-Contract Rate of Delivery peak for the month of May was 1,168 MW, which occurred May 30 between 4 p.m. and 5 p.m. The project’s load factor for May 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 112% of the budgeted peak, and energy was 110% of the budget. A graph showing the All-Requirements Project monthly load for May is available on the Portal. Contact: Jim Arntz
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THIS WEEK
Member City Visits
Jacob Williams travels to Starke and Green Cove Springs on Tuesday for member city visits.
FGU Annual Meeting
Rich Popp will attend Florida Gas Utility’s Annual Meeting on Wednesday through Friday in Palm Coast, Fla.
Nominating Committee
The Nominating Committee meets Thursday at 9:30 a.m. via teleconference to discuss Board of Directors officers for the coming year. The positions of Chairman, Vice Chairman, Secretary and Treasurer will all be considered. The recommendations will be presented at the Board of Directors annual meeting on July 19. Contact: Jacob Williams
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 May operations, loads, costs and rate calculations, and 3) estimated rates for June and July. Contact: Jim Arntz
Florida Public Power Breakfast
RSVPs are due Friday for the Florida Public Power Breakfast on June 20 during the American Public Power Association’s National Conference in Orlando. The breakfast is being sponsored by Bank of America Merrill Lynch, JP Morgan Chase and Co., and Wells Fargo. An invitation was emailed May 18 from Ryan Dumas to registered Florida attendees, FMPA’s Board of Directors and alteates, and ARP Executive Committee members and alteates. The email contains a link to RSVP online for the breakfast. Please RSVP so the appropriate number of meals can be ordered. Contact: Mark McCain
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 4. Contact: Jim Arntz
Special Dates
Congratulations to Steve Ruppel, who celebrates 19 years with FMPA on Thursday, June 8.
Congratulations to Jim Hay, who celebrates 15 years with FMPA on Saturday, June 10.
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COMING UP
Governing Board Meetings
FMPA’s goveing board meetings for June have been moved to June 21 to coincide with the conclusion of the APPA National Conference. The St. Lucie, Stanton and Stanton II participants meeting will be held at 9 a.m., followed by the Board of Directors at 10 a.m. and the Executive Committee at 10:30 a.m. Contact: Jacob Williams
FMEA Annual Conference
The Florida Municipal Electric Association’s (FMEA) Annual Conference will be held July 18-20 at the Sawgrass Marriott in Ponte Vedra Beach. A preconference session to discuss Operational Support and Distribution Services will be held July 18 from 2 p.m. to 4 p.m. FMPA members are encouraged to attend and be part of setting a direction for a significant expansion of FMPA’s services for its members. The annual FMPA luncheon titled “FMPA’s State of the State will be held Thursday during the conference. Registration for the conference is available on FMEA’s website.
Safety Compliance for Electric Utilities Course
FMPA will offer a Safety Compliance for Electric Utilities course June 28-29 at FMPA’s Orlando office. This two-day course is for managers, engineers, superintendents, crew leaders and line workers who want a better understanding of OSHA and NESC working rules. The cost to attend is $400 and includes lunch both days. Florida Professional Engineers can ea 10 professional development hours for the completion of this course. The deadline for registration is June 19. Registration and more information is available on FMPA.com. Contact: Sharon Smeenk
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INDUSTRY NEWS
Sabal Trail Pipeline Partially Operational
The Sabal Trail Project, a 515-mile interstate natural gas pipeline, is expected to be partially operational this week. Sabal Trail is a joint venture of Spectra Energy Partners, NextEra Energy and Duke Energy. The initial connection will provide natural gas to Florida Power & Light’s facilities in south Florida. A spokesperson for Sabal Trail says the pipeline should be fully operational by the end of June. The underground pipeline runs from Alabama to central Florida. The pipeline will have the capacity to deliver 1.1 billion cubic feet of natural gas per day by 2021.
Duke Files for Mid-Year Rate Increase
The Florida Public Service Commission (PSC) will consider on Monday a request by Duke Energy Florida for a mid-year energy rate increase to recover higher-than-expected fuel costs in 2016 and 2017. The PSC also will consider Duke’s request for an increase related to the financing of bonds to close the Crystal River Unit 3 nuclear plant. If both increases are approved, the changes would add $5.99 to the bills of residential customers who use 1,000 kWh per month, increasing the average bill from $117.24 to $123.23 effective in July. Duke’s request states that higher-than-expected fuel costs caused it to under-recovered $182 million in expenses. Duke is seeking to recover fuel costs over 12-months. The commission staff recommendation states that such a request is unusual because utilities typically recoup money in the same calendar year, but spreading the costs over 12 months means Duke’s customers would see smaller increases spread over a longer period. “Staff believes implementing the mid-course correction as proposed by DEF (Duke) is reasonable in this instance, the recommendation said. “DEF’s proposed methodology provides for a lower bill to customers in the near term compared to recovering the costs over a shorter period.
Proposed Federal Budget Cuts Energy Programs
President Donald Trump’s budget proposal for fiscal 2018 includes a $3 billion cut to the Department of Energy, a $1.4 billion cut to the Office of Energy Efficiency and a $389 million cut to the Office of Electricity Delivery and Energy Reliability. The budget also proposes eliminating funding for the Low Income Home Energy Assistance Program (LIHEAP). The budget cites a 2010 Govement Accountability Office report that found LIHEAP needed greater controls to prevent fraud.
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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 Holly Cammisa in FMPA’s Public Relations Department.
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