Florida PSC to consider settlement on FPL purchase of Cedar Bay power plant

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.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.