Florida Power and Light spent more for coal in 2014, but burned less of it

Florida Power and Light, which owns shares in the coal-fired Scherer and St. Johns River Power Park facilities, reported March 3 that its average coal costs in 2014 were higher than expected.

Terry J. Keith, the utility’s Director, Cost Recovery Clauses, in the Regulatory & State Governmental Affairs Department, supplied March 3 “true-up” testimony to the Florida Public Service Commission. This came in an annual fuel cost proceeding. At this point each year the utility needs to match up the fuel figures it had expected early in any given year, to what actually happened by the end of that year.

FPL’s coal cost averaged $2.92 per MMBtu in 2014, which was $0.14 per MMBtu or 5.1% higher than projected during the period. However, FPL consumed 8,292,018 less MMBtus (14.7%) of coal than projected during the period. Of the total $16.3 million decrease for coal, $23.1 million was due to lower than projected consumption, partially offset by a $6.8 million increase due to higher than projected unit costs.

FPL’s natural gas cost in 2014 averaged $5.29 per MMBtu, which was $0.13 per MMBtu or 2.49% lower than projected during the period. However, FPL consumed 12,046,706 more MMBtus (2.11%) than projected during the period. Of the total $13.3 million decrease for natural gas, $78.7 million was due to lower than projected unit costs, partially offset by a $65.3 million increase due to higher than projected consumption. 

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.