A weekly e-newsletter for FMPA members
Oct. 23, 2017
Policy Makers Liaisons Committee
FMPA’s Policy Makers Liaisons Committee met last Wednesday at the Treasure Coast Energy Center and heard a report from FMPA’s General Manager and three information items: 1) state legislative update, 2) FMPA solar project update, and 3) round table discussion by policy makers on the most important electric issue in their communities. A tour of the plant followed the committee meeting. The full agenda package is available on the Portal. Contact: Mark McCain
Board of Directors
FMPA’s Board of Directors met last Thursday and approved: 1) revisions to the Accounting Risk Management Policy, 2) revisions to the Debt Risk Management Policy, and 3) Stanton II bond transaction. The full agenda package is available on the Portal. Contact: Jacob Williams
Management Goals Fiscal 2018
Jacob Williams presented proposed management goals for fiscal year 2018 at the Board of Directors meeting last Thursday. The goals include: 1) no lost time accidents for employees or operating agent employees, 2) zero compliance violations that are not self-reported, 3) saving $9 million on the controllable-cost budget, 4) achieving an availability factor of greater than or equal to 88% on base-load units, 5) selling 35 MW of capacity to achieve cost reductions for ARP, 6) completing 90 member visits by the leadership team, 7) completing FMPA documents for the Vero Beach transaction, 8) developing three new Member Services, 9) helping members quantify the value of a municipal electric utility, 10) enhancing FMPA’s brand and value to Florida energy stakeholders, 11) improving the cost competitiveness of smaller, high-cost ARP members, and 12) update Human Resources policies and procedures to ensure retention and recruitment of talent.
The Executive Committee met last Thursday and approved: 1) rate schedule B-1 for fiscal 2018, 2) revisions to the Accounting Risk Management Policy, and 3) revisions to the Debt Risk Management Policy. The full agenda package is available on the Portal. Contact: Jacob Williams
Solar PV Project
The attractive pricing of FMPA’s proposed joint-action solar project has resulted in increased megawatt nominations from municipal utilities, as reported last Thursday at FMPA’s Board of Directors meeting. The project is closing in on its goal of fully subscribing two 74.5 MW solar projects. Final nominations are due as soon as possible. Contact Frank Gaffney or Michele Jackson with any inquiries related to nominations.
Hurricane Irma Sticker
Florida’s municipal electric utilities and more than 2,000 lineworkers from 170 public power utilities in 24 states were recognized last Thursday for their efforts to help restore power after Hurricane Irma. FMPA and the Florida Municipal Electric Association created a special sticker thanking lineworkers for their non-stop work to restore power to more than 800,000 public power customers. The stickers were distributed to municipals crews—both in-state and out-of-state—who helped with the restoration effort. Requests for stickers can be emailed to Ryan Dumas. Contact: Mark McCain
Cane Island Unit 4
Cane Island Unit 4 retued to service last Friday after a planned maintenance outage. Contact: David Schumann
Bryant Retirement Dinner
Invitations were emailed last Friday for Fred Bryant’s retirement dinner. The event will be held Wednesday, Dec. 13, at 6 p.m., the evening before FMPA’s monthly goveing board meetings. Come celebrate Fred’s decades of service to municipal utilities with an evening of southe charm at the Highland Manor in Apopka, Florida. The email includes a link to RSVP. Contact: Mark McCain
3 Phase Times
FMPA’s Power Resources Division published the September 2017 edition of 3 Phase Times last week. 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 86% of ARP’s total energy sources in September. ARP sold 15% of its generation to the Florida Municipal Power Pool (FMPP). Pool sales helped offset ARP costs by $1.27 per MWh. The FMPP Average Monthly Gas Dispatch Price in September was $3.03 per MMBtu, which was eight cents above the budget. The equivalent availability factor of FMPA’s base-load units in September was 99%, which is higher than the annual projection. For more information, download 3 Phase Times from the Portal. Contact: Frank Gaffney
Member City Visits
FMPA staff will visit member cities this week to give presentations on the proposed sale of Vero Beach’s electric utility. Jacob Williams travels to Newberry on Monday and St. Cloud on Thursday. Jody Finklea will join Jacob in Newberry.
Mike McCleary travels to Clewiston and Lake Worth this week to continue his introductory meetings with FMPA member cities. Members who have not scheduled meetings with Mike are encouraged to do so by sending him an email.
Cane Island Unit 2
Cane Island Unit 2 will be taken offline Monday for a planned maintenance outage. The outage is scheduled for 14 days. Contact: David Schumann
Stanton II Project Bond Refunding
FMPA is scheduled to close Wednesday on approximately $72 million in refunding bonds for the Stanton II Project’s Series 2000 and 2004 bonds. The transaction is designed to reduce the risk of variable interest rates, terminate swaps and eliminate auction rate securities. Contact: Mark Larson
FMPA’s Linemen’s Roundtable will be held Thursday at 10 a.m. in Jacksonville Beach. The roundtable provides a forum for line crews to exchange ideas on operating practices, safety, training, tools, equipment and more. Contact Sharon Smeenk if you want to attend but have not yet registered.
Vero Beach Meeting
Jacob Williams, Jody Finklea and Mark Larson will meet Thursday with Wells Fargo to bring the bank up to date on the proposed sale of Vero Beach’s electric utility and discuss its role in the approval process. PNC Bank has also been invited to participate.
Stock Island Inventory
Rich Popp and David Schumann will be in Key West on Thursday to conduct inventory on Stock Island and attend an operations committee meeting. Inventory was completed at Treasure Coast at the end of September.
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 Oct. 22. Contact: Jim Atz
Congratulations to Ed Nunez, who celebrates 10 years with FMPA on Sunday, Oct. 29
Member Services Advisory Committee
FMPA’s Member Services Advisory Committee will meet Nov. 1 at 10 a.m. via conference call. Contact: Mark McCain
Utility Communicators’ Roundtable
FMPA’s Utility Communicators’ Roundtable will be held Nov. 2 at 10 a.m. in FMPA’s Orlando office. The roundtable provides a forum for utility communicators to discuss issues common to communications and marketing departments at public power utilities. The roundtable is free, and lunch will be provided. https://fmpa.com/event/utility-communicators-roundtable-november-2017/> style=color: windowtext;>Registration is available on FMPA’s website. Participants are encouraged to suggest discussion topics. Contact: Sharon Smeenk
Energy Auditors Roundtable
FMPA’s Energy Auditors Roundtable will be held Nov. 30 at Beaches Energy Services in Jacksonville Beach. The roundtable provides a forum for participants to discuss work procedures, policies and practices, industry changes, equipment and materials, site specific issues, and other topics of interest. https://fmpa.com/event/energy-auditors-roundtable-4/> style=color: windowtext;>Registration is free and lunch will be provided. Contact: Sharon Smeenk
http://www.tcpalm.com/story/news/2017/10/18/florida-power-light-co-sends-vero-beach-contract-185-million-electric-sale/775408001/> style=color: windowtext; text-decoration: underline;>FPL Sends Vero Beach Contract to Purchase City’s Electric Utility for $185 Million
Florida Power & Light (FPL) and Vero Beach completed work last week on a proposed purchase and sale agreement for the investor-owned utility to purchase Vero Electric for $185 million. FPL delivered the definitive agreement on Wednesday to the city. The Vero Beach City Council is expected to take action on the contract at a special meeting this Tuesday at 9:30 a.m. If approved, the closing could occur by October 2018. Approval is also required by many third parties, including 19 Florida cities that are participants with Vero Beach in FMPA power projects, Orlando Utilities Commission, state and federal regulatory agencies and others.
The Public Service Commission (PSC) last Tuesday denied Florida Power and Light’s (FPL) request to charge an additional $49 million to customers for the development of two new nuclear reactors at its Turkey Point Nuclear Generating Station near Homestead. The 4-1 vote came after PSC staff members recommended a feasibility study be conducted before granting FPL the option to defer costs on a project that may never be completed. Regulators did approve FPL’s efforts to obtain a combined operating license on the reactors but said the company must retu $7.3 million to customers in 2018 for over recovery of costs in 2015 and 2016.
http://www.palmbeachpost.com/business/fpl-asks-psc-agree-new-dania-beach-plant-needed/1dmRKTC8KFZoFKVmfd2WwJ/> style=color: windowtext; text-decoration: underline;>FPL Files Determination of Need for Dania Beach Repowering Project
Florida Power & Light (FPL) filed last Friday for a determination of need from the Florida Public Service Commission for previously announced plans to retire and rebuild generation at FPL’s Dania Beach power plant near Fort Lauderdale. The current plant was last updated 25 years ago, and some major plant components date back to the 1950s, FPL said. In its place, FPL is proposing to build a 1,163 MW natural gas combined cycle unit at a cost of $888 million. The estimated in-service date is June 2022. The commission is expected to hold a hearing on the request in early-2018 and to rule by the end of March.
https://www.publicpower.org/periodical/article/progress-continues-restoring-power-customers-puerto-rico-virgin-islands> style=color: windowtext; text-decoration: underline;>Restoration Efforts Continue in Puerto Rico, Virgin Islands
The Department of Energy (DOE) last Wednesday reported that approximately 19% of normal peak load had been restored in Puerto Rico in the aftermath of Hurricane Maria. About 81% of customers on the island still remain without power. Kissimmee Utility Authority and JEA have crews in Puerto Rico to assist with restoration efforts, working under contract with Whitefish Energy Holdings. In the U.S. Virgin Islands, DOE reported approximately 85% of customers remain without power. The U.S. Virgin Islands Water and Power Authority hopes to have 90% of power restored by late December.
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.
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.
Florida Municipal Power Agency
8553 Commodity Circle
Orlando, FL 32819-9002
Tel 407 355-7767
Fax 407 355-5794
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