Tampa Electric Plans to $800 Million Investment in New Solar Power Generation

LCG, February 24, 2020--Tampa Electric recently announced plans to expand its use of solar power to meet customer needs in Florida. The company plans to invest approximately $800 million to add 600 MW of solar electric generating capacity by the end of 2023, when the total solar capacity would exceed 1,250 MW. Solar power will then account for about 14 percent of the utility's energy.

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AWEA Issues Fourth Quarter 2019 Market Report

LCG, February 7, 2020--The American Wind Energy Association (AWEA) recently released its new U.S. Wind Industry Fourth Quarter 2019 Market Report. AWEA reports new wind turbine installations have added 5,476 MW of electric generating capacity during the fourth quarter, which results in 2019 installations totaling 9,143 MW. The total installations represent an increase over 2018, but the total for 2019 falls short of total annual installations for 2015 and 2016. In addition to new capacity additions, developers completed 2,500 MW of turbine repowerings for the year.

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Industry News

California Hopes to Renegotiate Power ContractsAs Large Users Sign Their Own Supply Deals

LCG, Oct. 22, 2001--Energy advisors to California Gov. Gray Davis said on Friday that the state intended to press ahead in its attempts to renegotiate some of the power purchase agreements entered into by the state Department of Water Resources.

The water agency signed more than 50 contracts with independent power producers for some $43 billion worth of electricity to be delivered mostly over the next ten years, but with one contract extending 20 years into the future.

The cost of power under those contracts averages about $69 per megawatt-hour, more than twice the current market rate.

State records show that many large power customers aren't waiting around to see what the state will pay for power and are arranging their own deals with power suppliers. That move could leave householders and small commercial customers on the hook for the high-priced power.

"This stampede could shift over $8 billion in costs to these consumers in coming years," said state Treasurer Phil Angelides, who added "It isn't fair and it isn't right."

State officials say that not all of the power contracts will be renegotiated, but decline to say which.

"Certainly we're not targeting every contract," said Barry Goode, Davis' legal affairs secretary. "Long-term contracts have been extremely valuable in keeping the market stable."

Separately, the California Department of Water Resources, which also makes spot market power purchases to serve the day-to-day needs of the state's cash-strapped investor-owned utilities, said it expects its total electricity costs for the three utilities to be $17.2 billion by December of next year, a sharp drop from its earlier estimate of $21.4 billion.

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