Frequently Asked Questions
March 2009
Why is an expansion at Cane Island Power Park necessary?
Additional generation is necessary to ensure adequate electric supply is available to serve FMPA’s member communities. The new generating unit will also modernize FMPA’s fleet of generators to increase efficiency. Enhancements in generating efficiency lower wholesale power costs for FMPA members and enhance environmental performance. FMPA conducted investigations to ensure that the proposed expansion is the most cost-effective option. The expansion of Cane Island Power Park is a cost-effective solution to enhance the reliability and efficiency of FMPA’s power generating system.
Why was natural gas selected?
Natural gas generation provides needed electricity at the lowest cost. FMPA undertook a detailed study of its long-term power generation needs. The results identified the best combination of power generation resources to provide reliable power at the lowest cost for FMPA’s member cities. Study results showed that FMPA’s cities will have a need for new power generation and recommended filling the need with a high-efficiency 300 megawatt natural gas-fueled generating unit.
In addition, FMPA investigated a variety of alternative power supply options, including renewable energy generation and energy conservation, to ensure that a natural gas unit was the best option for FMPA’s system to ensure cost-effective and dependable power supply. Also, FMPA issued a request for proposals seeking to purchase power from another entity rather than build a new unit. The proposals received were evaluated based on power cost and other factors including reliability and risk. All investigations showed that building a new natural gas-fueled unit is the best, most economical option to serve the identified need. Through the rigorous approval process, we demonstrated that this plant is the best option for consumers.
Could conservation offset the need for this expansion?
Conservation has a role in our power supply plans, but it cannot eliminate the need for this power plant. In 2008, FMPA’s members created a $1 million energy conservation fund to sponsor a variety of conservation programs throughout the state. However, the need for power was determined to be too great to be offset through voluntary conservation alone. State agencies reviewed this determination as part of the licensing and permitting process.
Could the need be met with renewable resources?
FMPA’s power needs could be met in part but not entirely by renewables. FMPA members currently receive power from two renewable power sources, and renewable power is likely to play an even greater role in the future. For example, FMPA is exploring opportunities for developing solar photovoltaic generation.
To balance the need for affordable, reliable power with our environmental goals, FMPA must develop 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 technologies. To ensure that adequate power is available when it is needed in 2011, proven technology is the prudent choice, but we will continue to explore and implement renewable technologies in appropriate situations.
How much will the expansion cost?
The expansion is estimated to cost FMPA $479 million.
Why was Cane Island Power Park selected as a location for additional generation?
FMPA’s evaluations show that Cane Island Power Park 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.
What was the approval process for the plant?
The project passed a rigorous approval process by regulatory agencies. That process is defined by Florida’s Power Plant Siting Act, which directs a number of state, federal and local government agencies to review a proposed new power generator. All agencies reviewing the project agreed that there was no opposition to the proposal, enabling the project to receive final approval from the Florida Department of Environmental Protection on Dec. 19, 2008.
Who will own and operate Cane Island Unit 4?
Cane Island Power Park is jointly owned by Florida Municipal Power Agency (FMPA) and Kissimmee Utility Authority (KUA). The utilities have been partners at the site since the first unit began operating in 1995. The proposed new generator will be wholly owned by FMPA and operated under contract by KUA.
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.
Founded in 1901, KUA is Florida's sixth largest community-owned utility providing electric and telecommunication services to 170,000 residents in five Central Florida counties.
Will residents in Osceola County receive electricity from the plant?
Some Osceola County residents will receive electricity from the plant. FMPA is a wholesale power provider serving municipal utilities. Power from the expansion at Cane Island will serve the customers of fourteen municipal utilities in locations throughout Florida. One of the utilities served is Kissimmee Utility Authority, which serves customers in some areas of Osceola County. For customers of other utilities that serve portions of Osceola County, those utilities are responsible for supplying their own customers’ power needs.
How will the expansion impact the local economy?
The project is expected to create up to approximately 300 temporary construction jobs at peak employment, with wages projected to total more than $42 million. Spending on construction will also benefit the local and regional economies and is projected to indirectly create additional jobs.
Will local traffic be impacted during the construction phase?
To build the new generator, FMPA was required to prove to public agencies that the project is in the public’s interest and that it protects the public and the environment. One of many factors reviewed in that process was the impacts on public traffic safety.
A mild, temporary increase in traffic near the plant site will be experienced during construction due primarily to the construction workforce. Once the plant begins operating, it will not have a significant impact on daily traffic.
How can citizens in the area learn more about the plant or share any questions and concerns?
FMPA and KUA continue communicating with the community to share information about the project and respond to local residents’ questions and suggestions.
To ask a question about the project or sign-up to receive the e-newsletter, send an e-mail to This e-mail address is being protected from spambots. You need JavaScript enabled to view it , visit us online at caneisland.fmpa.com or call the project’s telephone hotline at (321) 239-1034.
Who is constructing the expansion?
Engineering, procurement and construction of Cane Island Unit 4 will be completed under contract by Zachry Industrial Incorporated. Zachry brings to the project experience spanning 80 years and more than 5,500 construction projects throughout the world. The company also shares the Cane Island Power Park’s commitment to caring for the environment and contributing to the community. Construction hiring and subcontracting for the project will be conducted by Zachry, beginning later in 2009.