Florida PSC approves FPL plan to buy Cedar Bay coal plant

The Florida Public Service Commission (PSC) today approved a settlement agreement between Florida Power & Light Company (FPL) and the Office of Public Counsel, modifying FPL’s proposed plan to acquire and phase out a coal-fired power plant. The plan approved today is projected to save FPL customers more than $70 million and avoid nearly 1 million tons of carbon dioxide emissions annually.

FPL is currently obligated to buy power through 2024 from the Cedar Bay Generating Plant, a 250-megawatt coal-fired facility located in Jacksonville, Fla., under a long-term contract that was initiated in 1988. The contract was based on the cost of power at the time; however, today FPL can generate electricity at a much lower cost. Upon taking ownership of the Cedar Bay plant, FPL plans to immediately terminate the purchased-power contract and reduce the plant’s operations by 90 percent with the intention of eventually phasing the plant out of service.

In March, FPL petitioned the PSC with an initial proposal and then worked with the Office of Public Counsel to refine it. In July, FPL and Public Counsel jointly filed a revised proposal in the form of a settlement agreement, which the PSC approved Aug. 27.

http://finance.yahoo.com/news/psc-approves-fpl-plan-save-174100283.html