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News
Releases
Florida Public Service Commission Approves Cane Island
Power Park Expansion
Proposed natural gas-fueled generating unit needed to
reliably meet customers’ electrical demand in the most
cost-effective manner possible
ORLANDO,
Fla., Aug. 4, 2008 – The Florida Public Service Commission
(PSC) today approved a request by the Florida Municipal Power
Agency (FMPA) for a determination of need for a new natural
gas-fueled electrical generating unit in Osceola County, Fla.
The
Commission approved the need for FMPA to construct a new unit
at the Cane Island Power Park, an existing power plant site
near Intercession City. The proposed unit, known as Cane Island
Unit 4, is projected to begin commercial operation in 2011
and generate 300 megawatts, enough electricity to serve approximately
60,000 homes in Florida.
“Additional
electrical generation is needed to provide adequate electrical
power in our communities, and the Public Service Commission’s
decision today affirms that the proposed expansion of Cane
Island is the best option to supply reliable, affordable power
to our communities,” 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 any 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
Commission’s determination of need today is a major
milestone in the licensing process,” said Fontes. “I
would like to thank the Kissimmee Utility Authority, our co-owners
at the Cane Island Power Park, for their invaluable assistance
with reaching this important goal.”
“The
entire licensing and permitting process takes more than a
year, so we still have more steps ahead of us. We will continue
to share information with our neighbors, as we move forward
through the process,” said Fontes.
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 energy conservation
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 conservation
and renewable projects. For example, FMPA signed a letter
of intent to purchase 10 megawatts of solar power at locations
throughout the state, and the Agency also created a new program
to fund conservation programs in FMPA member cities. Renewable
power resources and conservation are important, but they do
not eliminate FMPA’s need for the proposed Cane Island
Unit 4.
Carbon
Reduction Activities
The important public policy issue of global climate change
was also 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 reduce
emissions. Cane Island Unit 4 is part of FMPA’s long-term
power supply plan, known as the 2008 Integrated Resource Plan.
The plan describes how FMPA will provide reliable, affordable
wholesale power, while achieving the state of Florida’s
proposed goals for increasing the use of renewable energy,
increasing energy conservation and reducing greenhouse gas
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 allowing
FMPA to achieve near-term greenhouse gas reduction goals proposed
by Florida Gov. Charlie Crist.
“We
are committed to reducing greenhouse gas emissions to meet
state goals,” said Fontes. “Cane Island Unit 4
is an important part of our plan to meet the governor’s
first goal for greenhouse gas emission reductions. Based on
our projections, we will reach the required reductions in
CO2 emissions to 2000 levels by the year 2017.”
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 that Cane Island Unit
4 is the best choice to meet our customers’ power needs
in an environmentally responsible way,” said Fontes.
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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