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Industry News

Tallahassee Electric Utility Joins in Development of Coal-fired Power Plant (Revised)

LCG, July 20, 2005--Tallahassee Electric Utility is joining JEA, Florida Municipal Power Agency and the Reedy Creek Improvement District in the development of a new, $1.4 billion coal plant in northern Florida. JEA announced yesterday that Tallahassee Electric Utility has agreed to join the other partners in the planned construction of an 800-MW electric generating station that is to be operational in 2012.

JEA will serve as the project developer and will receive 236 MW of the station generation. Project sites under consideration include locations in Taylor, Madison and Hamilton counties. JEA stated that it is pursuing new electric supplies to meet growing load requirements.

Earlier this year, similar plans to construct more coal-fired generation in Florida were announced. In March, Seminole Electric Cooperative, Inc. (Seminole) announced plans to add a third, 750-MW coal-fired unit at its existing 1,300 MW Seminole Generating Station. Like the JEA project, the target date for operations is in 2012. Seminole states that the new capacity is needed to provide reliable, economical energy supplies to its ten member systems in Florida. In addition, Florida Power & Light (FPL) announced in February plans to build a new, coal-fired station in St. Lucie County. FPL's proposal includes two, 850-MW units that employ a supercritical pulverized coal design. The first unit is planned to begin operations in 2012, with the second unit generating power in 2013.

Last year, Orlando Utilities Commission (OUC) and Southern Power, the unregulated subsidiary of Southern Company, announced plans to develop a 285-MW, advanced coal plant to be built at OUC's existing Stanton Energy Center near Orlando, Florida. The operational date for this project is 2010. Gainesville Regional Utilities (GRU) also plans to build a 220-MW, coal-fired plant, with operations planned for 2011.

If these projects - generally backed by public power entities and local utilities to meet local requirements - all proceed as scheduled, Florida will host roughly 3,750 MW of new, efficient, coal-fired generating capacity in 2013. Given a current generating base that is relatively short on coal and long on natural gas and oil-fired capacity, Florida's electricity market is poised to undergo a significant change.

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