EPA Carbon Rule Challenges Clean-Power Utilities

Municipal utilities share Florida’s outlook on pending environmental regulations

ORLANDO, Fla., Jan. 12, 2015 – Meeting proposed U.S. Environmental Protection Agency (EPA) carbon emission reductions for Florida will be challenging even for some of the state’s cleanest electric utilities, said Florida Municipal Power Agency (FMPA) Assistant General Manager, Power Resources Frank Gaffney at a panel discussion today.

Gaffney was a panelist at the American Public Power Association’s Joint Action Workshop held in Key West, Fla., this week. The panel invited Gaffney, Orlando Utilities Commission’s Chip Merriam and JEA’s Bud Para to discuss how their utilities are preparing for EPA’s proposed carbon regulations.

“FMPA is the third cleanest generating utility in Florida, and EPA’s rule is still a challenge,” said Gaffney. Clean-burning natural gas already makes up the largest part of FMPA’s fuel mix, but to help meet the EPA rule, FMPA could increase that percentage to approximately 90%. The rule will also encourage utilities to add new zero-emission resources, which could increase costs to consumers by approximately 10% to 30%.

“As Florida’s municipal utilities prepare for the new regulations, we are keeping affordability and reliability for our customers as top priorities,” said Gaffney.

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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.

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