ERCOT 2019 Summer Quarter Outlook

LCG, May 29, 2019-- LCG released a new summer (June – September 2019) report that looks at how the ERCOT grid copes with strained network conditions. Resource adequacy analysis for the region is especially important during extreme summer loading conditions. This summer the network is under particular scrutiny as the reserves have tightened because of recent retirements.

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South Field Energy Breaks Ground for 1,182-MW Power Plant

LCG, May 16, 2019--South Field Energy LLC announced yesterday its groundbreaking for an 1,182-MW, combined-cycle electric generating facility in Columbiana County, Ohio. The natural gas-fired facility is scheduled to commence operations in mid-2021 and represents a $1.3 billion investment.

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Industry News

FPL Announces Plan to Acquire and Retire the Coal-fired Facility in Florida

LCG, March 10, 2015-Florida Power & Light Company (FPL) Friday filed a petition with the Florida Public Service Commission (PSC) to request approval to acquire a coal-fired energy facility that it has had under a long-term purchase power agreement (PPA) since 1988. FPL plans to immediately terminate the contract and reduce the plant's operations by 90 percent, with the intention of eventually phasing the plant out of service. FPL is requesting that the PSC approve the purchase by July 31, 2015 to maximize customer savings.

The targeted facility is the 250-MW Cedar Bay Generating Plant, a circulating fluidized bed (CFB) boiler power generation facility located in Jacksonville, Florida.

FPL's president and CEO stated, "Although years ago it made sense to buy this plant's power to serve our customers, times have changed. We have invested billions of dollars to improve the efficiency of our system, reduce our fuel consumption, prevent emissions and cut costs for our customers. Now we're in a position to take ownership of the facility and effectively buy out an outmoded contract with the goal of ultimately phasing the plant out of service, which will mean reduced carbon emissions and millions of dollars in savings for our customers. This proposal is another smart step forward in our ongoing effort to serve our customers with affordable clean energy now and in the future."

FPL estimates that the plan will save FPL customers an estimated $70 million and prevent nearly one million tons of carbon dioxide emissions annually. Under the existing PPA, fixed payments for capacity and operating and maintenance currently total more than $120 million a year, with annual increases until the contract's expiration in 2024. Like other PPA's, the fixed payments are paid for by customers through their rates, in addition to the cost of energy when the plant is operating.

In its filing with the PSC, FPL proposes to purchase CBAS Power Inc., the indirect owner of the plant, from CBAS Power Holdings, LLC, for a price of $520.5 million. FPL would then terminate the PPA and avoid the fixed payments that customers would otherwise pay through their rates over the remaining life of the contract. Upon taking ownership, FPL expects to decrease plant operations so that it operates less than five percent of the time. Furthermore, FPL expects to permanently decommission the Cedar Bay Generating Plant within the next two to three years, after a new interstate natural gas pipeline commences commercial operation and enhances gas supply availability in Florida.
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