Agency plans to take action to address preliminary audit findings

ORLANDO, Fla., Feb. 20, 2015 – The Florida Municipal Power Agency (FMPA) filed today a response to the Florida Auditor General’s preliminary and tentative operational audit report.

The Auditor General’s report included five findings that relate to FMPA’s All-Requirements Project. These findings relate to fuel hedging, natural gas supply agency participation, interest rate swaps, peak shaving and All-Requirements Project termination provisions. Due to the complex nature of these topics, FMPA’s response states that Executive Committee members will begin a process to retain an independent management consulting firm to advise the Executive Committee concerning these findings.

For the remaining 10 findings, FMPA’s response states, action to address the recommendations will require public discussion and a vote by FMPA’s Board of Directors or Executive Committee, or both. FMPA’s governing boards will address these matters as soon as practical. In the meantime, some responsive actions have already been taken by FMPA.

“The Board of Directors, Executive Committee and FMPA staff appreciate the professionalism and independence of the Auditor General’s staff in conducting its audit of the Agency, and we welcome the opportunity to improve efficiency and control costs for the member city owners of the Agency,” said FMPA Board Chairman Bill Conrad. “In fact, FMPA’s All-Requirements Project has already reduced wholesale power costs 23% from its all-time peak in 2009, and today, rates are close to the average wholesale rates for Florida’s investor-owned utilities, as the Project has been for most of its existence.”

FMPA Executive Committee Chairman Howard McKinnon said, “FMPA takes seriously its responsibility to meet its members’ needs and expectations. This audit will further FMPA’s ability to do that. On behalf of the Board of Directors and Executive Committee, we thank the Auditor General for handling this important task with professionalism. We are certain that FMPA will become a better organization as a result.”

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Florida Municipal Power Agency (FMPA) is a wholesale power company owned by 31 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 two million Floridians.