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News
Releases
All-Requirements Members Complete Long-Term Power
Supply Plan
ORLANDO,
Fla., July 20, 2006 – Members of the Florida
Municipal Power Agency’s All-Requirements Project approved
a long-term plan to meet the wholesale power supply needs
of their communities.
This plan, known as the 2006 Integrated Resource Plan, is
the end result of a year-long study. The study was assisted
by detailed computer modeling to select the mix of power
resources that can provide reliable electric power at the
lowest cost over the long-term. Results included a schedule
of recommended power resource additions and retirements over
the next 15 years, as well as other general strategies for
further consideration.
“The 2006 Integrated Resource plan goes to the heart
of FMPA’s mission,” said Rebecca Mattey, All-Requirements
Project Chairwoman and Ocala Electric Utility Director. “It
is a clear blueprint we can follow to maintain a reliable,
affordable wholesale power supply.”
FMPA’s All-Requirements Project provides all the wholesale
power needs of 15 Florida cities, including Bushnell, Clewiston,
Fort Meade, Fort Pierce, Green Cove Springs, Town of Havana,
Jacksonville Beach, Key West, Kissimmee, Lake Worth, Leesburg,
Newberry, Ocala, Starke and Vero Beach. Like much of Florida,
FMPA’s member communities are growing, and they must
proactively plan to meet their customers’ future power
needs.
“This plan is the culmination of a year-long process
that brought together a diverse group of participants,” said
Roger Fontes, FMPA’s general manager and CEO. “Representatives
from FMPA’s member cities participated in a series
of in-depth workshops, providing significant input on the
study’s assumptions, methods and conclusions.”
The
study’s
major conclusions are:
- Meeting Growing Power Needs: All-Requirements
Project participants’ total power needs are projected
to increase by almost 30% within the next 15 years. Several
existing wholesale power purchase contracts will expire
during the same time period. FMPA anticipates needing additional
summer peaking power in 2007 and every year between 2010
and 2014. The 2006 Integrated Resource Plan is a first
step in determining how to meet these needs.
- Diversifying the Fuel Mix: The
2006 Integrated Resource Plan shows that adding new coal-fired
power resources would clearly provide cost savings to consumers,
as compared to relying more heavily on plants fueled by
natural gas. An ownership interest in the proposed Taylor
Energy Center, an 800 MW coal plant in Taylor County, Fla.,
is expected to benefit customers of FMPA’s members
by more than $150 million (net present value). The plan
recommends pursuing additional coal generation, if available,
to provide further economic benefits.
- Seeking Economies of Scale: FMPA’s
members have long understood that significant cost savings
can be realized by working together to build larger, more
efficient power plants. Persistently high fuel costs make
this principle more important than ever, and the study
report recommends maximizing economies of scale, whenever
possible, by partnering with other like-minded utilities.
The
2006 Integrated Resource Plan provides direction for all
of FMPA’s upcoming power supply activities. Next
steps will include: 1) successfully completing generation
projects currently under development, 2) reviewing sites
for potential new power plants, 3) negotiating generation
equipment purchase agreements, and 4) investigating power
purchase opportunities. The plan is a living document, so
FMPA will also continue to review and update it as new information
becomes available.
“FMPA’s members have a blueprint for the future,” said
Fontes. “Now it’s time to bring those plans from
the drawing board into reality.”
# # #
Florida
Municipal Power Agency (FMPA) is a wholesale power company
owned by municipal electric utilities. FMPA provides economies
of scale in power generation and related services to support
community-owned electric utilities. The members of FMPA
serve approximately 1.9 million Floridians. FMPA’s
members include Alachua, Bartow, Blountstown, Bushnell, Chattahoochee,
Clewiston, Fort Meade, Fort Pierce, Gainesville, Green Cove
Springs, Havana, Homestead, Jacksonville Beach, Key West,
Kissimmee, Lake Worth, Lakeland, Leesburg, Moore Haven, Mount
Dora, New Smyrna Beach, Newberry, Ocala, Orlando, Quincy,
St. Cloud, Starke, Vero Beach, Wauchula and Williston. Additional
information is available on the Internet at www.fmpa.com.
FMPA Contact:
Mark McCain
Assistant General Manager,
Public Relations and Human Resources
(407) 355-7767
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