All-Requirements Members Complete Long-Term Power Supply Plan
ORLANDO, Fla., July 20, 2006 – Members of the Florida Municipal Power Agency’s All-Requirements Project approved a long-term plan to meet the wholesale power supply needs of their communities.
This plan, known as the 2006 Integrated Resource Plan, is the end result of a year-long study. The study was assisted by detailed computer modeling to select the mix of power resources that can provide reliable electric power at the lowest cost over the long-term. Results included a schedule of recommended power resource additions and retirements over the next 15 years, as well as other general strategies for further consideration.
“The 2006 Integrated Resource plan goes to the heart of FMPA’s mission,” said Rebecca Mattey, All-Requirements Project Chairwoman and Ocala Electric Utility Director. “It is a clear blueprint we can follow to maintain a reliable, affordable wholesale power supply.”
FMPA’s All-Requirements Project provides all the wholesale power needs of 15 Florida cities, including Bushnell, Clewiston, Fort Meade, Fort Pierce, Green Cove Springs, Town of Havana, Jacksonville Beach, Key West, Kissimmee, Lake Worth, Leesburg, Newberry, Ocala, Starke and Vero Beach. Like much of Florida, FMPA’s member communities are growing, and they must proactively plan to meet their customers’ future power needs.
“This plan is the culmination of a year-long process that brought together a diverse group of participants,” said Roger Fontes, FMPA’s general manager and CEO. “Representatives from FMPA’s member cities participated in a series of in-depth workshops, providing significant input on the study’s assumptions, methods and conclusions.”
The study’s major conclusions are:
- Meeting Growing Power Needs: All-Requirements Project participants’ total power needs are projected to increase by almost 30% within the next 15 years. Several existing wholesale power purchase contracts will expire during the same time period. FMPA anticipates needing additional summer peaking power in 2007 and every year between 2010 and 2014. The 2006 Integrated Resource Plan is a first step in determining how to meet these needs.
- Diversifying the Fuel Mix: The 2006 Integrated Resource Plan shows that adding new coal-fired power resources would clearly provide cost savings to consumers, as compared to relying more heavily on plants fueled by natural gas. An ownership interest in the proposed Taylor Energy Center, an 800 MW coal plant in Taylor County, Fla., is expected to benefit customers of FMPA’s members by more than $150 million (net present value). The plan recommends pursuing additional coal generation, if available, to provide further economic benefits.
- Seeking Economies of Scale: FMPA’s members have long understood that significant cost savings can be realized by working together to build larger, more efficient power plants. Persistently high fuel costs make this principle more important than ever, and the study report recommends maximizing economies of scale, whenever possible, by partnering with other like-minded utilities.
The 2006 Integrated Resource Plan provides direction for all of FMPA’s upcoming power supply activities. Next steps will include: 1) successfully completing generation projects currently under development, 2) reviewing sites for potential new power plants, 3) negotiating generation equipment purchase agreements, and 4) investigating power purchase opportunities. The plan is a living document, so FMPA will also continue to review and update it as new information becomes available.
“FMPA’s members have a blueprint for the future,” said Fontes. “Now it’s time to bring those plans from the drawing board into reality.”
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Florida Municipal Power Agency (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. The members of FMPA serve approximately 1.9 million Floridians. FMPA’s members include 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. Additional information is available on the Internet at www.fmpa.com.