FMPA Weekly
A weekly e-newsletter for FMPA members
May 2, 2011
LAST WEEK
Board of Directors
FMPA’s Board of Directors met last Thursday and approved action items including: 1) ratifying the April 7 vote approving Citi’s offer of a discounted sale of St. Lucie and Stanton II project auction rate securities, 2) revisions to the accounting and inteal controls risk management policy, and 3) appointment of a Nominating Committee (see story below). Contact: Nick Guarriello
Nominating Committee
Nominating Committee members were appointed last Thursday by the Board of Directors for the purpose of recommending a slate of officers for 2011-2012. The Board appointed Howard McKinnon from Havana, Gregg Griffin from Green Cove Springs and Matt Brower from Ocala to the Committee. Officer elections will take place at FMPA’s annual meeting in July. Contact: Nick Guarriello
ARP Executive Committee
The All-Requirements Project Executive Committee met last Thursday and approved action items including: 1) a Bank of America Merrill Lynch letter of credit proposal, 2) a feed-in tariff, 3) continuing the FST and hedging program, 4) revisions to the accounting and inteal controls risk management policy, and 5) Florida Gas Utility GSAP 3 letter of intent. The Committee will continue its discussion about FMPA’s operating policy on running generation units out of economics at its next meeting on May 26. Contact: Nick Guarriello
Member Survey
FMPA is exploring the addition of joint contracting services through the Agency’s partnership with Electric Cities of Georgia. Each service combines the contracting needs of multiple members into a single bid. In order to prepare an accurate vendor request for proposal, FMPA is gauging member interest in these services. Please complete this FMPA.comhttp://fmpa.com/index.php/news-releases/395-municipal-electric-utilities-benefit-by-working-together>FMPA.com; to find out more about the ARP’s major accomplishments or the Member Portal to lea about FMPA’s history.
CREAC Telephonic Meeting
FMPA’s Conservation and Renewable Energy Advisory Committee (CREAC) meets Thursday at 10 a.m. via conference call. The committee will approve minutes from the March 22 CREAC meeting and the fiscal year 2012 All-Requirements Project Conservation Program and Budget. Contact: Sharon Smeenk
All-Requirements Monthly Load Statistics
The All-Requirements Project’s peak for April was 1,082 MW, which occurred April 28 between 4 p.m. and 5 p.m. The project’s load factor for April was 63%. 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 month’s peak was 111% of the budgeted peak, and energy was 107% of budget. A graph showing the All-Requirements Project hourly load for April is available on the Member Portal. Contact: Jim Atz
Special Dates
Congratulations to Jamie Noon, who celebrates six years with FMPA on Monday, May 2.
Congratulations to Lindsay Lister, who celebrates five years with FMPA on Sunday, May 8.
COMING UP
Cost Center Teams
As part of the All-Requirements Project’s annual budget review process, the Business Planning and Budget Committee (BPBC) has formed Cost Center Teams to meet via teleconference next week. These teams are assigned to review one of nine major budget areas, such as transmission, capacity, debt and capital leases, fuels, and direct charges. Each team is comprised of FMPA staff, BPBC members and All-Requirements Project participants. Serving on a cost-center team is a great opportunity to lea more about the project’s budget and provide input on how All-Requirements can become the lowest cost wholesale electricity provider in Florida. Contact: Mark Larson
ARP Telephonic Rate Workshop
The ARP Executive Committee meets May 9 via conference call at 2 p.m. for the monthly All-Requirements Project rate workshop. The workshop agenda includes: 1) an update on natural gas markets and liquidity, 2) an overview of April loads, costs and rate calculations, and 3) estimated rates for May through July. Contact: Jim Atz
Executive Committee OATT Workshop
The All-Requirements Project Executive Committee will hold a workshop May 10 in the Board room at 10 a.m. to discuss the open access transmission tariff, member agreements, and cost and revenue stream. Contact: Frank Gaffney
Business Planning and Budget Committee
FMPA’s Business Planning and Budget Committee meets via teleconference May 11 at 9:30 a.m. for a second review of the Agency’s proposed fiscal 2012 budget. The meeting was originally scheduled to meet in FMPA’s board room. Contact: Mark Larson
Protective Relay Seminar
FMPA and Schweitzer Engineering Laboratories will hold a one-day protective relay seminar May 19 at FMPA’s Orlando office. The seminar is a great opportunity for relay protection personnel to discuss protection systems and future projects. There is no cost to attend this seminar, but http://www.fmpa.com/index.php/component/registrationpro/?view=event&did=34>registration; is requested in order to have an accurate count for lunch. Contact: Mike Siefert
Energy Auditors Roundtable
FMPA’s semi-annual Energy Auditors Roundtable will be held May 19 at 10 a.m. in Lake Worth. The roundtable provides a forum to discuss work procedures and policies, industry changes, equipment and other topics of interest. There is no cost to participate in this roundtable, and lunch will be provided. Rhttp://www.fmpa.com/index.php/component/registrationpro/?view=event&did=32>egistration; is requested in order to have an accurate count for lunch. Contact: Sharon Samuels
INDUSTRY NEWS
Generating Capacity Report Show Trend Toward Renewable Energy
Almost 446,000 Megawatts (MW) of new generating capacity are under some degree of development in the United States, according to the fifth annual report on generating capacity released last week by the American Public Power Association (APPA). As in the prior report, there is a growing trend toward renewable forms of generation, particularly wind, solar and hydro-electric. Coal and natural gas continue to be the primary fuels for plants already under construction, accounting for 62% of plants at this stage of development and more than half of the plants at the permitted stage. The most popular form of renewable energy is wind, with 130,000 MW of total potential capacity, although solar is the leading fuel choice at the pending application stage with nearly 30,000 MW of potential capacity. Once again, a significant majority of the non-traditional forms of energy are slated to come on-line much further into the future. The report emphasized that there is uncertainty in the future capacity additions. Political, financial and public pressures shape the direction of America’s electric fuel portfolio, and dramatic shifts can occur quickly, causing entities to change their plans. But even with this uncertainty, there is an overall national trend toward alteative forms of electric generation, the report concluded. Read the full report on http://www.publicpower.org/files/PDFs/Newplantsanalysis2011.pdf>publicpower.org;.
Rating Agencies to Address Outlook for Public Power
Representatives from the three largest credit rating agencies will address current issues affecting public power bond ratings at the American Public Power Association’s 2011 National Conference in Washington, D.C., this June. Dan Aschenbach of Moody’s, Peter Murphy of Standard & Poor’s, and Kathy Masterson of Fitch Ratings will discuss public power’s strengths and weaknesses, as well as steps boards and managers can take to assure the financial strength of their utilities. Masterson will also discuss factors that rating agencies consider when assessing a utility’s generating fuel decisions and the future for natural gas, nuclear and renewable energy. Visit http://www.publicpower.org/NationalConference>publicpower.org; to find registration and program information for the 2011 National Conference.
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 Ryan Dumas 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. (Click here for the Staff Directory).
Have a question, comment or story idea for the newsletter? FMPA welcomes your feedback at any time. Contact: Ryan Dumas.
Florida Municipal Power Agency
8553 Commodity Circle
Orlando, FL 32819-9002
Tel 407 355-7767
Fax 407 355-5794
http://www.fmpa.com
Community Power. Statewide Strength. ®