Florida PSC sets schedule to review Cedar Bay coal plant buyout deal

The Florida Public Service Commission on March 26 issued a procedural order setting the schedule for its review of March 6 application by Florida Power & Light to buy the coal-fired Cedar Bay power plant, then phase it out over the next couple of years.

The approved schedule includes:

  • Intervenor’s Direct Testimony and Exhibits, filed by June 8;
  • Staff’s direct testimony and exhibits, June 8;
  • Rebuttal testimony and exhibits, June 17;
  • Prehearing Statements, June 23;
  • Prehearing Conference, July 6;
  • Discovery deadline, July 10;
  • Hearing, July 28-29; and
  • Briefs, Aug. 11.

FPL applied March 6 at the commission for approval to buy out its contract to take power from Cedar Bay and to buy the plant itself, under a deal valued at $520.5 million. The Cedar Bay facility is a 250-MW, coal-fired, qualifying cogeneration facility located in Jacksonville, Florida, that uses three circulating fluidized bed boilers and a single steam turbine. It is indirectly and wholly owned by CBAS Power Inc. and its operations are managed by Cedar Bay Operating Services LLC. Cedar Bay Genco, also wholly owned by CBAS, sells the electricity produced by the facility to FPL and sells steam to an adjacent linerboard facility.

FPL’s payments to Cedar Bay Genco are made pursuant to a long-term power purchase agreement (PPA), which the parties originally executed and the FPSC approved under its Qualifying Facility rules in 1988. The current PPA expires in December 2024. Under the existing PPA, FPL’s annual capacity payments to Cedar Bay Genco increase each year until the contract terminates.

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.