FMPA Weekly | May 6, 2019 | Member Edition

FMPA Weekly


A weekly e-newsletter for FMPA members


May 6, 2019





Prepaid Natural Gas Contracts

FMPA participated in two natural gas pre-pay contracts that priced last Tuesday. Both deals produced discounts greater than 30 cents per MMBtu. When the deals close in early May, FMPA will have completed four pre-paid deals that are expected to save approximately $2.7 million annually, or 47 cents per MWh. The total volume for the four deals amounts to 23,250 MMBtu per day, or 24% of the All-Requirements Project’s (ARP) base-load gas generation needs. The two deals priced last week include language allowing ARP to exit the deals if gas use falls below contact levels due to the economics of gas generation. The deals will help continue to lower ARP expenses and keep rates low. Savings from two of the deals will be reflected in invoices for April 2019, and the other two deals will be effective July 1 and Nov. 1. Contact: Rich Popp


Treasure Coast Energy Center

Treasure Coast Unit 1 came back online last Monday after being offline for a scheduled maintenance outage. Contact: David Schumann


Greenberg Women of the Boardroom

Congratulations to Linda Howard, who was a guest speaker last Tuesday at the Greenberg Women of the Boardroom discussion. The program provides a forum for networking and exchanging ideas for Central Florida women executives.


Overhead Transformer Bid

Bids for the purchase and delivery of overhead transformers were opened last Wednesday, and responses are being evaluated. Contact: Sharon Samuels


All-Requirements Project April Load Statistics

The All-Requirements Project’s peak for April was 1,011 MW, which occurred April 30 between 4 p.m. and 5 p.m. The project’s load factor for April was 62.86%. 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 5.7% higher than the budgeted peak, and energy was 3.7% higher than the budget. A graph showing the All-Requirements Project hourly load for April is available on the Portal. Contact: Denise Fuentes






CREAC Meeting

FMPA’s Conservation and Renewable Energy Advisory Committee (CREAC) meets Monday at  9:30 a.m. via conference call to hear two information items, including: 1) CREAC program policy, and 2) conservation education material for schools. The full agenda package is available on the Portal. Contact: Chris Gowder


Member City Visits

Jody Finklea and Linda Howard travel to New Smyrna Beach on Monday to meet with Utilities Commission CEO and General Manager Joe Bunch and Director of Finance Efren Chavez. Jacob Williams is attending the Kissimmee City Commission meeting on Tuesday to present on the value of the city’s electric utility. Susan Schumann travels Tuesday to Wauchula and Lakeland. On Wednesday, Cairo Vanegas travels to Clewiston to discuss AMI projects.


Central Florida American Society of Safety Professionals

Mike McCleary is speaking at the Central Florida American Society of Safety Professionals chapter meeting on Monday at FMPA’s Orlando office. Mike will present on how to get critical tasks and maintenance work done quickly and efficiently while still ensuring safety.


UCF Accounting Conference

Several staff from FMPA’s Finance Department are attending the University of Central Florida’s annual Accounting Conference on Wednesday through Friday. Discussion topics will include a federal tax update, next generation of internal auditing, cybersecurity and the dark web, and more. Contact: Linda Howard


FRCC Load Forecast Working Group

Navid Nowakhtar is attending the Florida Reliability Coordinate Council’s Load Forecast Working Group meeting on Wednesday. The working group is a consortium of load forecasters from utilities across the state who meet annually to share best practices in load forecasting and summarize their 10-year site plan forecast results.


Pole Line Hardware Bid

Responses to FMPA’s invitation to bid (ITB) for pole line hardware are due Thursday. This is the first time these products have been jointly bid through FMPA. The ITB includes FEMA-required language and a price-fluctuation mechanism that allows participants to take advantage of market-price reductions during the life of the agreements. Contact: Sharon Samuels


Special Dates  

Happy anniversary to Lindsay Lister, who celebrates 13 years with FMPA on Wednesday, May 8.






ARP Telephonic Rate Workshop

The ARP Executive Committee meets May 14 at 2 p.m. via conference call for the monthly All-Requirements Project Rate Workshop. The agenda includes an overview of the April 2019 ARP rates and operations. Contact: Jason Wolfe


Hurricane and Emergency Preparedness Forum

The Florida Municipal Electric Association and FMPA will co-host a hurricane and emergency preparedness forum May 21 from 9:30 a.m. to 4 p.m. at the Florida Hotel and Conference Center in Orlando. The registration deadline is May 13. The cost to attend is $100 per person, which includes continental breakfast and lunch. The forum will provide a recap of the 2018 hurricane season including best practices, mutual aid operations and the FEMA public assistance process.


Distribution Reliability Roundtable

FMPA will host a Distribution Reliability Roundtable on June 5 at 10 a.m. at FMPA’s Orlando office. The roundtable is an opportunity to review details of FMPA’s Distribution Reliability Measurement Program and discuss best practices for enhancing electric system reliability. Registration is free, and lunch will be provided. A webcast will be available for those not able to attend in person. Contact: Cairo Vanegas


FMEA Annual Conference

The Florida Municipal Electric Association (FMEA) will host its Annual Conference on July 16-18 at Hyatt Coconut Point in Bonita Springs. The conference will include FMPA’s annual Board of Directors luncheon and FMPA governing board meetings. Conference registration is available on FMEA’s website.






Florida Legislature Passes Bill Seeking to Reduce Post-Hurricane Outages

The Florida Legislature approved a bill last Thursday that is expected to increase the number of underground power lines. The Senate voted 39-1 to pass the measure a day after the House approved it by a vote of 110-3. The bill (SB 796) now goes to Gov. Ron DeSantis. A key part of the measure would change the way underground projects are financed. Investor-owned utilities generally incorporate storm-hardening costs into base rates. The bill would set up a separate Public Service Commission process allowing utilities each year to seek cost recovery from customers for storm-protection projects, such as underground power lines. The cost to harden systems would be a separate line item on electric bills, rather than a general rate increase.


Florida Lawmakers Pass Bill with New Requirements for Ballot Initiatives

The Florida Legislature approved a bill last Friday that was amended to include new requirements for constitutional ballot initiatives. The bill is heading to Gov. Ron DeSantis for his consideration. The House added petition-gathering restrictions to a bill focused on local sales taxes (HB 5) and sent it to the Senate on Friday evening, which quickly approved it. A stand-alone bill with petition-gathering restrictions did not make it through the Senate committee process during the session. The approved bill would make a series of changes in laws dealing with initiatives, such as making it illegal to pay petition gatherers based on the number of petitions they collect. Also, it would require submission of information about petition gatherers. The bill would require petitions to be turned in no more than 30 days after being signed by voters and includes financial penalties for late submissions. Petition signatures already collected for the 2020 initiatives would not be affected, but the changes would go into effect 30 days after the bill becomes law, if DeSantis signs it or allows it to become law without his signature. The bill came after Florida voters in November approved 11 constitutional amendments on a range of issues. A series of high-profile ballot initiatives also have been proposed for the 2020 ballot, including a proposal to deregulate investor-owned electric utilities. Supporters of the bill that passed Friday contend the Florida Constitution has become bloated with issues that do not belong in the foundation of state government.


Duke Seeks to Use Tax Savings to Cover Hurricane Michael Expenses

Duke Energy Florida submitted a request last Tuesday to the Florida Public Service Commission seeking approval to use savings from the 2017 federal tax reform to pay for $221 million in damages from Hurricane Michael. Utilities typically charge customers for recovery efforts. In the case of Hurricane Michael, recovering those expenses would amount to an extra $6.95 per month for a typical residential customer who uses 1,000 kWh per month. Federal tax reform in 2017 reduced the corporate-income tax rate from 35% to 21%, created savings. While Duke would ordinarily need to pass along tax savings to customers, the utility proposes to use that money in place of a new hurricane-recovery charge. The Public Service Commission last year approved a similar plan to cover Duke’s restoration costs after Hurricane Irma.





FMPA Weekly is published by FMPA for employees and governing boards of FMPA member utilities. Questions or comments about this newsletter may be directed to Melisa Inanc 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 learn more.


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




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Tel 407 355-7767
Fax 407 355-5794

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