Orlando Utilities Commission sees no capacity needs this decade

The Orlando Utilities Commission (OUC) is projected to have adequate generating capacity to maintain its 15% reserve margin requirements throughout both the summer and winter seasons through 2023.

However, said the municipal utility in a Ten Year Site Plan filed April 1 at the Florida Public Service Commission, the potential expiration of the Southern Co. Florida LLC (SCF) power purchase agreement (PPA) as of September 2023 is projected to result in the need for additional capacity to meet reserve margin requirements OUC has not made any commitments to extend or terminate the PPA with SCF at this time. Given the magnitude and timing of OUC’s projected need for capacity, it has been assumed for purposes of this Ten-Year Site Plan that OUC will add combined cycle capacity to meet the projected capacity requirements should the SCF PPA not be extended. OUC will continue to evaluate alternatives as part of its planning processes.

OUC has a purchase power agreement with SCF for 80% of SCF’s ownership share of Stanton A, a combined cycle unit at the Stanton Energy Center that began commercial operation in 2003. Amendments to the original PPA continue OUC’s capacity purchase through the 20th year of the PPA. Beginning with the 16th contract year and ending with the 20th contract year, OUC will maintain the irrevocable right to reduce the amount of capacity purchased by either 20 MW or 40 MW per year, as long as the total reduction in purchased capacity does not exceed 160 MW. Additionally, OUC has the option of terminating the PPA after the 20th contract year, which ends September 2023. Rather than terminating the PPA, OUC may elect to continue the PPA for an additional five years under the Extended Term option beginning October 2023, and ending September 2028. OUC may subsequently continue the PPA for an additional five years under the Further Extension option beginning October 2028, and ending September 2033.

Given the magnitude and timing of OUC’s projected need for capacity, it has been assumed for purposes of this Ten-Year Site Plan that OUC will add combined cycle capacity to meet the projected capacity requirements should the SCF PPA not be extended. OUC has not made any commitments to extend or terminate the PPA with SCF at this time. OUC said it will continue to evaluate alternatives as part of its planning processes.

OUC noted that its existing Stanton Energy Center and Indian River sites may accommodate future generating unit additions. OUC will continue to evaluate its power supply requirements and alternatives as part of its planning processes.

New SCR being evaluated for the coal-fired Stanton Unit 1

OUC noted that it has chosen to operate its generating units with emission levels below those required by permits and licenses by equipping its power plants with the best available environmental protection systems. As a result, even with a second unit in operation, the Stanton Energy Center is one of the cleanest coal-fired generating stations in the nation. Unit 2 is the first of its size and kind in the nation to use selective catalytic reduction (SCR) to remove NOx. Using SCR and low-NOx burner technology, Stanton 2 successfully meets the stringent air quality requirements imposed upon it.

OUC said it is considering adding SCR to Stanton Unit 1, as well as taking measures to increase the efficiency of the Stanton Unit 1 and Unit 2 steam turbine generators. Stanton A incorporates environmentally advanced technology and enables OUC to diversify its fuel mix while adding more flexibility to OUC’s portfolio of owned generation and purchased power. As its newest generating asset, Stanton B further contributes to OUC’s environmentally responsible portfolio of generating resources.

Stanton Unit 1 was placed in commercial operation in 1987, followed by Stanton Unit 2 in 1996. Both units are fueled by pulverized coal and operate at emission levels that are within the Environmental Protection Agency (EPA) and the Florida Department of Environmental Protection (FDEP) requirement standards for SO2, NOx and particulates. Stanton Unit 1 is a 441-MW (net) facility. OUC has a 68.6% ownership share of this unit. Stanton Unit 2 is a 453-MW (net) facility. OUC maintains a 71.6% (324 MW) ownership share of this unit. 

This Ten-Year Site Plan integrates the power sales, purchases, and loads for the City of St. Cloud, the power sale to the City of Vero Beach, the power sale to the City of Bartow, the power sale to the City of Lake Worth, and the power sale to the City of Winter Park into the analyses, as OUC has power supply agreements with these counterparties. OUC has assumed responsibility for supplying all of St. Cloud’s loads through calendar year 2032 and supplementing Vero Beach’s loads through calendar year 2027. OUC has a contract to provide power to Bartow through calendar year 2017, a contract to sell power to Lake Worth through calendar year 2017 (with provisions for future extension; such extensions have not been assumed for purposes of this Ten-Year Site Plan), and a contract to sell power to Winter Park through calendar year 2019.

OUC is a member of the Florida Municipal Power Pool (FMPP), which consists of OUC, Lakeland Electric and the Florida Municipal Power Agency (FMPA) All-Requirements Project. Power for OUC is supplied by units owned entirely by OUC, as well as units in which OUC maintains joint ownership and power purchases. OUC’s available capacity as of January 2014 including capacity from units owned by OUC, St. Cloud’s entitlement to Stanton Energy Center Unit 2, and OUC’s current power purchases, provides total net summer capacity of approximately 1,850 MW and total net winter capacity of approximately 1,937 MW.

Presently, OUC has ownership interests in five generating plants, which include:

  • Stanton Energy Center Units 1 and 2, Stanton A and Stanton B.
  • Indian River Plant Combustion Turbine Units A, B, C, and D. OUC recently purchased the steam units at the Indian River site, however, given the current condition of the units, OUC is not assigning a capacity value for purposes of capacity planning. The purchase of the units provides OUC with full control over the Indian River site and additional alternatives for future generation, including possible repowering.
  • Duke Energy Florida (formerly Florida Progress Energy Florida) Crystal River Unit 3 nuclear. Crystal River 3 has been out of service since 2009 and is now retired.
  • Lakeland Electric’s coal-fired McIntosh Unit 3.
  • Florida Power & Light (FPL) St. Lucie Unit 2 nuclear.
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.