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News
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FMPA
to Expand Cane Island Power Park with Natural Gas-Fueled Generator
Clean-Burning Natural Gas Part of Strategy to Meet Growing
Power Needs
ORLANDO,
Fla., Jan. 9, 2008 – Florida Municipal Power Agency
(FMPA) announced today plans to expand the Cane Island Power
Park in Osceola County, Fla., by constructing a new, high-efficiency
electrical generator that will run on clean-burning natural
gas. The new generator is needed to fulfill customers’
growing electricity needs in an environmentally responsible
manner.
Growing
Communities, Growing Needs
FMPA is a wholesale power agency owned by municipal electric
utilities in Florida. FMPA provides all the wholesale power
needs of 15 cities, including the Central Florida communities
of Kissimmee, Leesburg, Ocala and Bushnell, as well as Clewiston,
Fort Meade, Fort Pierce, Green Cove Springs, Town of Havana,
Jacksonville Beach, Key West, Lake Worth, Newberry, Starke
and Vero Beach.
Florida
is among the fastest growing states in the nation, and as
its communities grow, so does the need for electricity. FMPA’s
long-term power supply plan shows that member cities’
electricity needs are projected to increase almost 30 percent
by 2021. Since power resources can take years to plan, license
and construct, FMPA must take action now to keep the lights
on in the future.
Striking
the Right Balance
While meeting the needs of a growing population, Florida is
also addressing the challenge of global climate change. To
meet the dual challenge of providing reliable, affordable
electricity while achieving our state’s environmental
goals, FMPA is developing a balanced mix of power resources
that includes both proven, reliable technologies, like generators
fueled by clean-burning natural gas, as well as innovative
renewable energy technologies.
FMPA
members currently receive power from two renewable power sources,
and FMPA is actively seeking to increase the role that renewable
resources play in the power mix. For example, FMPA issued
a request on Dec. 5 seeking solar photovoltaic equipment or
a contract to purchase power generated with solar technology.
“Renewable
technologies are an important part of our plans. We must also
balance innovation with reliability,” said FMPA General
Manager and CEO Roger Fontes. “Proven, clean-burning
natural gas generation will serve as a bridge to the future,
meeting today’s energy needs as we develop and deploy
the solutions of tomorrow.”
Natural
Gas—A Reliable, Responsible Choice
FMPA’s proposal is to expand the existing Cane Island
Power Park with a new high-efficiency, natural gas-fueled
combined cycle unit. The generator would be capable of generating
300 megawatts, enough electricity to serve approximately 60,000
homes in Florida.
FMPA’s
long-term power supply plan indicates that additional generating
capacity must be added by 2011 to ensure the supply of electricity
will be adequate to meet the demand. FMPA’s investigations
show that the proposed expansion is the most cost-effective
option to meet that need. The expansion is estimated to cost
FMPA between $300 million and $400 million. A more exact budget
will be set after design engineers and construction contractors
are selected.
As
part of its investigations, FMPA investigated a variety of
alternative power supply options, including renewable energy
generation, to ensure that FMPA’s option to build at
Cane Island was the best choice to ensure cost-effective and
dependable power supply. Additionally, FMPA considered the
role of energy conservation to offset the need for new generating
facilities. FMPA and its member cities currently offer a variety
of energy conservation programs. However, the projected need
for power is too large to be offset by energy conservation
alone. State agencies will review these determinations, as
part of the power plant licensing and permitting process for
the new unit.
The
proposed expansion at Cane Island was also determined to be
the best choice for the public and the environment. The plant
will be fueled by clean-burning natural gas, using proven
generating technology. It will be one of the cleanest and
most efficient plants in Florida. Also, to conserve precious
water resources, the power plant is designed to use treated
wastewater. Sound and visual impacts will be minimal.
The
project will also provide significant value to the local community.
Construction will create up to 300 jobs at peak, and spending
created by the project will benefit the local economy.
The
1,000-acre Cane Island Power Park is located near Intercession
City in Northwest Osceola County, Fla. The site is jointly
owned by FMPA and Kissimmee Utility Authority (KUA), a community-owned
utility providing electric and telecommunications services
to 170,000 residents in five Central Florida counties. The
utilities have been partners at the site since the first unit
began operating in 1995.
Under
the terms of a draft agreement, the proposed new unit would
be wholly owned by FMPA and operated under contract by KUA
personnel. It will be located adjacent to the three existing
units at the site. The agreement that sets forth these terms
remains subject to final approval by KUA’s Board of
Directors and FMPA’s Executive Committee.
“We
are pleased to continue our partnership with KUA. As a power
plant operator, as a business partner and as a part of its
community, KUA excels in every way,” said Fontes. “Also,
our evaluations show that Cane Island is the best location
for new generation, due to strategic considerations including
the site’s location on the state’s electrical
transmission and natural gas transportation networks.”
“Since
its inception in 1995, the Cane Island Power Park has been
a model for efficiency and environmental stewardship,”
said KUA president and general manager Jim Welsh. “We
are proud that FMPA has again chosen to partner with KUA to
help meet the future energy needs of our growing state.”
FMPA
and KUA plan an open and ongoing dialogue with the local community
about the proposed unit. FMPA and KUA will share information
with the public through activities including an open house,
e-newsletters and other community outreach activities.
The
proposed expansion must also pass a rigorous approval process
by public agencies. Many independent experts will examine
FMPA’s proposal, and the process will take more than
a year. To build the plant, FMPA must prove that it is necessary
for the welfare of citizens while protecting the public and
the environment. FMPA is expected to file applications to
begin the licensing process in spring 2008.
More
information about the proposed expansion of Cane Island Power
Park can be found on FMPA’s Web site here.
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Florida
Municipal Power Agency (FMPA) is a wholesale power company
owned by 30 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 2 million Floridians. FMPA’s members are
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.
Media
Contact:
Mark McCain
Assistant General Manager,
Public Relations and Human Resources
(407) 355-7767
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