The Florida Public Service Commission (PSC) is expected to take action Aug. 27 on a proposed settlement between the state Office of Public Counsel and NextEra Energy (NYSE:NEE) utility Florida Power & Light (FPL) on the company’s proposed purchase of the Cedar Bay power plant.
The Florida PSC has scheduled a special commission conference on Thursday Aug. 27 at 9:30 a.m. ET in Tallahassee. The settlement agreement was filed with the PSC on July 24.
The settlement and stipulation agreement is intended to relieve FPL customers of the high cost of purchasing power from the coal-fired Cedar Bay plant. PSC Commissioners questioned and heard testimony from witnesses and parties to the case during a hearing in late July.
FPL is seeking to buy from CBAS Power Holdings LLC all of the outstanding ownership interests in CBAS Power Inc., which is the upstream owner of the 250-MW facility located in Jacksonville, Florida. FPL states that it currently buys all the capacity and electric power from the facility pursuant to a long-term power purchase agreement.
Due to the expected availability of a new interstate natural gas pipeline system to fuel its natural gas-fired units, FPL expects that it will retire the Cedar Bay facility in early 2017.