April 03, 2006
FPL updates Florida PSC on future generation needs and system planning
JUNO BEACH, Fla. – Florida Power & Light Company today described its plans to increase power generating resources by approximately 27 percent over the next ten years to meet anticipated customer growth and increasing electricity needs of its customers. FPL continues to focus on adding generating capacity that increases system efficiency, improves system reliability and enhances fuel diversity.
The updated growth forecasts and plans for increasing and diversifying generation are part of a system-wide resource plan that FPL annually submits to the Florida Public Service Commission. Beyond the ten-year horizon, FPL took an important step today to preserve the option to build a new nuclear power plant in the future. In a separate filing, the company notified the Nuclear Regulatory Commission today of its intent to submit a license application in 2009 for a new nuclear power plant in Florida. Filing an application does not obligate the company to build a new nuclear unit but does provide additional opportunity to evaluate this technology option.
“Our filings today demonstrate our commitment to pursue a diverse mix of fuels to provide reliable, economical and environmentally responsible electricity to meet our customers’ needs in the future,” said Armando Olivera, president of FPL. “We also are committed to increasing customer participation in cost-effective conservation and load management programs and finding ways to increase the cost-effective use of renewable sources of energy.”
FPL’s 10-year plan
FPL plans to respond to customer growth by continuing to encourage participation in voluntary, energy conservation and load management programs, by purchasing power from others and by building new power plants. The company’s 2006-2015 ten year plan anticipates adding approximately 6,600 megawatts of new generation resources to its current system capacity of 24,300 megawatts.
FPL currently provides electricity to 4.4 million homes and businesses in Florida. Its electricity is generated by a fuel mix of 42 percent natural gas, 19 percent nuclear, 17 percent purchased power, 17 percent oil and 5 percent coal. The new power resources planned for FPL’s system would serve an additional 1.3 million homes and businesses.
FPL also is continuing its efforts to diversify its fuel sources by actively pursuing the development of advanced coal technology, supporting the development of renewable technologies and exploring the feasibility of adding a long-term supply of liquefied natural gas (LNG).
2006-2007 -- FPL is constructing 1,150 megawatts of new generation at its Turkey Point plant site in south Miami-Dade County to begin serving customers in 2007. That’s enough generation to serve 225,000 homes and businesses.
2008-2011 -- FPL is in the process of seeking approval for 2,400 megawatts of new generation at its West County plant site in western Palm Beach County to begin serving customers in 2009. That’s enough generation to serve 466,000 homes and businesses.
2012-2015 -- FPL is focused on improving fuel diversity by actively pursuing a site for 1,700 megawatts of advanced technology coal generation to begin serving customers as early as 2012.
Preserving the nuclear option
In announcing its letter of intent to potentially pursue a new nuclear power plant in Florida, FPL said neither a site nor a specific reactor technology has been selected at this time. While new nuclear power resources would help to balance the company’s generation mix and to ensure reliability and greater price stability for customers, a decision to move forward would need to be based on a number of factors such as regulatory climate, financial market conditions and competing fuel technology costs. A decision to build is not expected for several years. Siting, licensing and constructing a nuclear unit could take approximately 12 years to complete.
Conservation and renewables
Already a national leader in cost-effective energy conservation and load management, FPL said it intends to add more demand side management capability to its ten-year plan - subject to PSC approval – increasing its contribution from 800 megawatts to a total of 1,100 megawatts. Demand side management programs decrease electricity use through voluntary load management and energy conservation programs for customers. Over the past two decades, FPL customers have helped defer the need for ten new medium-size power plants by participating in a variety of programs designed to save energy. FPL expects the 1,100 megawatts of demand side management to defer the need for nearly three more new medium-size power plants.
FPL also is involved in activities to add or maintain renewable resources, some of which are produced by generators which use biomass and municipal waste to produce electricity. In that regard, FPL also filed a standard offer contract with the PSC today. The standard offer would allow renewable facilities an opportunity at any time to enter into agreements to supply power to FPL and its customers. The company also supports pilot projects in solar photovoltaic technology throughout its system helping to provide platforms to refine the technology and reduce its cost. FPL also is planning a demonstration wind generation project on the East Coast of Florida.
“We recognize that our expansion plans have an impact on the communities we serve – adding not only power plants, but also power lines and wires needed to move electricity from the generation sources to the population centers,” Olivera said. “In that regard, we look forward to continuing our community outreach with municipalities, counties, agencies and citizens. We are committed to working together to keep everyone informed and involved throughout the process.”
Florida Power & Light Company is the principal subsidiary of FPL Group, Inc. (NYSE: FPL), nationally known as a high quality, efficient and customer-driven organization focused on energy-related products and services. With annual revenues of more than $11 billion and a growing presence in 26 states, FPL Group is widely recognized as one of the country's premier power companies. Florida Power & Light Company serves 4.4 million customer accounts in Florida. FPL Energy, LLC, FPL Group's competitive energy subsidiary is a leader in producing electricity from clean and renewable fuels. Additional information is available on the Internet at www.FPL.com, www.FPLGroup.com and www.FPLEnergy.com.