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News
Releases
FMPA Seeks Public Service Commission Approval of Cane
Island Power Park Expansion
FMPA files for a determination of need from the
Florida Public Service Commission;
Proposed generating unit is least-cost alternative to meet
growing power needs
ORLANDO,
Fla., May 7, 2008 – Florida Municipal Power Agency (FMPA),
a co-owner of the Cane Island Power Park in Osceola County,
is asking the Florida Public Service Commission for approval
to add a new power generator, known as Cane Island Unit 4.
The filing
made today seeks a determination of need for a natural gas-fueled
generating unit with a projected in-service date of 2011.
The proposed combined cycle unit would be capable of generating
300 megawatts, enough electricity to serve approximately 60,000
homes in Florida. Information was submitted to demonstrate
the need for the proposed electrical power plant in the proposed
time frame as the most cost-effective alternative available.
“Additional
electrical generation is needed to provide adequate electrical
power in our communities, and we are confident the proposed
expansion of the Cane Island Power Park is the best option
for our customers and the environment,” said Roger Fontes,
General Manager and CEO of FMPA.
Determination
of Need
The Public Service Commission is one of several state, federal
and local agencies that must review a new electrical power
plant during a multi-step approval process required by Florida
law. The Commission’s role is to determine whether the
proposed plant is needed to reliably meet customers’
needs and whether it is the most cost-effective option. The
Commission also considers conservation measures reasonably
available that might mitigate the need for the plant and looks
at whether renewable energy sources and technologies are utilized
to the extent reasonably available.
The proposed
Cane Island Unit 4 began the state’s licensing process
on April 1 by filing a site certification application at the
Department of Environmental Protection (DEP). DEP will coordinate
other agencies’ review of the proposed plant, including
the environmental review process. The entire licensing and
permitting process is expected to take more than a year.
Growing
Power Needs
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 of the
cities it serves. FMPA provides all the wholesale electric
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.
FMPA member
communities’ power needs are growing rapidly. Load forecasts
project FMPA customers’ demand for power will increase
more than 38% in the next 20 years. In addition, FMPA members
have received power under several power purchase contracts
that have recently expired or are nearing the end of their
term. Together, these factors mean that by summer 2011 new
generating capacity will be necessary to reliably serve FMPA’s
member cities.
Evaluating
the Alternatives
FMPA conducted a thorough analysis of alternatives to meet
consumers’ projected need for electricity, and Cane
Island Unit 4 was determined to be the most cost-effective
alternative.
FMPA requested
competitive bids for power purchase options, as well as renewable
and solar energy resources and demand-side management programs.
Evaluations showed that the proposed Cane Island Unit 4 is
the most cost-effective option. In addition to Cane Island
Unit 4, FMPA is pursuing the potential purchase of additional
renewable capacity, as well as potential load control measures.
Renewable power resources and conservation are important elements
of FMPA’s future power supply plans, but they do not
eliminate FMPA’s need for the proposed Cane Island Unit
4.
The Public
Service Commission will review FMPA’s analysis.
Carbon
Reduction Activities
The issue of global climate change was considered in FMPA’s
evaluations. Although a specific regulatory framework has
not yet been developed to regulate greenhouse gas emissions
in the state of Florida, FMPA is committed to being part of
a statewide effort to responsibly reduce emissions.
Cane Island
Unit 4 will be fueled by clean-burning natural gas, and it
will be one of the cleanest and most efficient plants in Florida.
It is expected to displace generation from less efficient
units, thereby reducing CO2 emissions and positioning FMPA
to achieve near-term greenhouse gas reduction goals proposed
by the governor.
The potential
for future carbon regulations was considered in the economic
analysis of FMPA’s power alternatives. These analyses
demonstrate that Cane Island Unit 4 is the most cost-effective
alternative, even in a carbon-regulated environment.
“Our
detailed evaluations give us confidence Cane Island Unit 4
is the best choice to meet our customers’ power needs
in an environmentally responsible way,” said Fontes.
“We look forward to sharing our analysis with state
authorities and the public as we continue with the licensing
process.”
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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