New York (HedgeCo.Net) – NextEra Energy subsidiary, Florida Power & Light Company, (FPL) has filed a petition with the Florida Public Service Commission (PSC) to request approval to acquire the Cedar Bay Generating Plant, a 250-megawatt coal-fired facility located in Jacksonville, Fla.
FPL plans to immediately terminate the contract and reduce the plant’s operations by 90 percent, eventually phasing the plant out of service. This plan is projected to save FPL customers an estimated $70 million and prevent nearly 1 million tons of carbon dioxide emissions annually.
“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,” said Eric Silagy, president and CEO of FPL. “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.”
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 purchased-power contract, avoiding the fixed payments that customers would otherwise pay through their rates over the remaining life of the contract.
FPL has been strategically phasing out older, less efficient fossil fuel plants and replacing them with new, high-efficiency natural gas energy centers that use approximately one-third less fuel per megawatt-hour. The company has also invested heavily to increase its use of zero-emissions nuclear and solar energy and recently announced plans to triple its solar capacity by the end of 2016.
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