Florida Power & Light Company’s (FPL) proposal to purchase and eventually shut down the 250 megawatt (MW) Cedar Bay Coal Power Plant — as a means of getting out of a costly power-purchase-agreement (PPA) signed back in 1988 — has been approved (with some modifications) by the Florida Public Service Commission (PSC) and the Office of Public Counsel, according to recent reports.
The plan is expected to save FPL customers over $70 million dollars altogether — due to the fact that FPL can generate electricity at far lower rates than what it is forced to pay for electricity from the Cedar Bay facility (located in Jacksonville). The shutdown is also expected to curtail the release of nearly 1 million tons of carbon dioxide emissions annually, according to the company.
If this strategy hadn’t been pursued, then FPL would have been required to continue purchasing electricity (at high rates) from the Cedar Bay project through the year 2024. Under the new plan FPL will immediately terminate the PPA agreement, and lower facility operations by around 90% — before eventually phasing the facility out completely.
“As we continue to look for ways to improve the efficiency of our system and keep costs down for our customers, this plan is another smart step forward to serve our customers with affordable clean energy now and in the future,” stated Eric Silagy, president and CEO of FPL. “Phasing this plant out of service is expected to save FPL customers more than $70 million and avoid nearly 1 million tons of carbon dioxide emissions every year.”
FPL submitted an initial proposal to PSC back in March, before then redoing this proposal by working with the Office of Public Counsel.
“We appreciate Public Counsel’s willingness to work together with us on this. This is important recognition that smart investments can and do generate significant benefits for customers and for our state.”
Image Credit: FPL
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