Florida Cities Save Money Thanks to Utility Rate Settlement
Working together through FMPA allowed cities to lower transmission costs
ORLANDO, Fla., Aug. 5, 2015 – Municipal electric utilities in 24 Florida cities will save money thanks to a settlement negotiated by the Florida Municipal Power Agency (FMPA).
The cities will now pay less to receive electricity through the high-voltage transmission system, and they will receive approximately $3 million in refunds for past charges.
The settlement resolves complaints filed by FMPA, Seminole Electric Cooperative and Reedy Creek Improvement District at the Federal Energy Regulatory Commission (FERC) about Duke Energy Florida’s transmission formula rate. Under the settlement, utilities that purchase electric transmission service from Duke will receive refunds, and Duke will reduce the return on equity it charges in its future transmission rates. The settlement will become final and refunds will be issued after FERC approves the settlement, which hopefully will occur later this year.
Cities represented by FMPA in the settlement include, Alachua, Bartow, Bushnell, Clewiston, Fort Meade, Fort Pierce, Gainesville, Green Cove Springs, Havana, Homestead, Jacksonville Beach, Key West, Kissimmee, Leesburg, Mount Dora, New Smyrna Beach, Newberry, Ocala, Orlando, Quincy, Starke, Wauchula, Williston and Winter Park.
“Florida’s municipal electric utilities have a stronger voice when they work together through FMPA and coordinate with other consumer-owned utilities in our region,” said FMPA General Manager and CEO Nicholas P. Guarriello. “We are pleased with the results of the settlement and the savings our member cities will enjoy because of it.”
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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.