Aug. 22, 2022
July All-Requirements Project Costs
The average billed demand and energy cost for the All-Requirements Project in July was $96.36 per megawatt hour, down nearly 10% from June and the first time under $100 since April. Despite a drop in future prices, the average cost of natural gas was 203% above budget. Energy sales to participants were nearly 2% above budget, bringing the year-to-date total to nearly 1% above budget. More information from the ARP Rate Workshop is available on the Portal. Contact: Jason Wolfe
General Fund Transfer Survey
FMPA recently conducted a survey of general fund transfers among its members. Twenty-three members responded to the survey, providing retail sales, total operating electric revenues and electric fund transfers. The full report is available on the Portal. Contact: Linda Howard
FMPA’s Finance Committee met last Wednesday and approved a recommendation to the Board of Directors to increase the fiscal 2022 Stanton II budget spending authority. The committee also heard five information items. The full agenda package is available on the Portal. Contact: Linda Howard
Board of Directors
FMPA’s Board of Directors met last Thursday and approved an increase to the fiscal 2022 Stanton II budget spending authority. The Board also rejected final pricing from Florida Renewable Partners for an alternative site to the Poinsett Solar Energy Center and approved a motion to execute a letter of intent with Origis to move forward with activities specified in the principal terms. The Board also heard six information items, including the annual disclosure training. The full agenda package is available on the Portal. Contact: Jacob Williams
The ARP Executive Committee met last Thursday and agreed to: 1) update the natural gas price risk management strategy, 2) increase the spending authority for the containment and remediation of the discharge at the Stock Island Generating Facility, 3) reject final pricing from Florida Renewable Partners for an alternate site to the Poinsett Solar Energy Center and execute a letter of intent with Origis to move forward with activities specified in the principal terms, and 4) use $85 million from the 2021B bond proceeds for the natural gas risk management strategy and prepare a formal request for a $15 million pooled loan for the All-Requirements Project. The full agenda package is available on the Portal. Contact: Jacob Williams
Natural Gas Risk Management Strategy
FMPA’s Executive Committee updated its natural gas price risk strategy through March 2024 to provide more stability and better predictability in power costs for customers. Beginning in September 2022 through February 2023, FMPA will purchase up to 15% of its expected volume of natural gas at $8.25 per MMBtu or lower. If the price of natural gas falls to $8 per MMBtu, FMPA will purchase an additional 15%. If the price decreases to $7.75 per MMBtu, FMPA will purchase another 25%. If natural gas prices for March 2023 reach $7 per MMBtu, FMPA will purchase up to 25% of its expected volume. If the price falls to $6 per MMBtu, FMPA will purchase an additional 20%. If the price decreases to $5.50, FMPA will purchase an additional 15%. If the price of natural gas reaches $5.75 for April 2023 through March 2024, FMPA will purchase up to 25% of its expected volume. The Executive Committee gave FMPA authorization to execute these transactions within a 10 cent-margin of the guidelines, which would produce power costs of approximately $100 per megawatt hour. Contact: Jacob Williams
Municipal Disclosure Training
FMPA held a municipal disclosure training last Thursday for its Board of Directors and Executive Committee. All members of the Board and Executive Committee are required to participate each year. Members who missed the training should contact Linda Howard for a recording.
Welcome, Chelsea Dixon, Maya Garcia-Hector and Alissa Novoa
Please welcome Chelsea Dixon, Maya Garcia-Hector and Alissa Novoa, who join FMPA this week. Chelsea and Alissa are the new Human Resources Specialists. Chelsea has more than five years of HR experience and a bachelor’s degree in communication studies from the University of Central Florida (UCF). Alissa has more than six years of HR experience and a bachelor’s degree in hospitality management from UCF. She also is a Certified Professional by the Society for Human Resource Management (SHRM). Maya is a Public Relations Assistant and recently graduated from UCF with a bachelor’s degree in advertising and public relations and a minor in philosophy.
Foreman Academy Certification Series
FMPA hosts the second track of the three-part Foreman Academy at its Orlando office on Monday through Thursday. Track two of the series focuses on team building, performance appraisals, generations at work, the Occupational Safety and Health Administration (OSHA), and safety management. Contact: Sharon Samuels
Florida Lineman Appreciation Day
FMPA and the Florida Municipal Electric Association (FMEA) conclude a month-long social media campaign on Friday to celebrate Florida Lineworker Appreciation Day. Friday marks 10 years since the Florida House of Representatives created the resolution, designated in memory of Marc Moore, a lineworker for Lakeland Electric who died while on the job in 2002. Social media followers are encouraged to like, comment on and share the posts on Facebook, LinkedIn and Twitter, as well as send messages of appreciation using the hashtags #ThankALineman and #LineLife.
Human Resources Roundtable
FMPA and the Florida Municipal Electric Association (FMEA) host a Human Resources Roundtable on Sept. 22 at FMPA’s Orlando office. The roundtable provides a forum for participants to discuss HR topics, including benefits, recruiting, employee retention, training, policies and more. Participants can register on FMEA’s website and are encouraged to email discussion topics to Elizabeth Bendele.
Utility Finance Roundtable
Aug. 31 | 10 a.m. | FMPA Orlando Office
Energy Auditors Roundtable
Oct. 12 | 10 a.m. | Lakeland Electric
Key Accounts Roundtable
Oct. 13 | 10 a.m. | Lakeland Electric
TOP INDUSTRY NEWS
President Biden Signs Inflation Reduction Act
FMPA Weekly is published by FMPA’s Public Relations Department for staff and members. Questions about this newsletter may be directed to Rachel Ilardi or Ryan Dumas. Check out FMPA’s Glossary, for frequently mentioned terms.