December 6, 2007
FPL announces plan to add generating capacity in Palm Beach County; issues "request for proposals" for competing projects

JUNO BEACH, Fla. – In addition to its ongoing programs in energy efficiency and its plans to expand use of renewable energy sources, Florida Power & Light Company today announced plans to increase its power generation capacity beginning in 2011 to respond to expected continued growth in Florida.   

The company said it plans to add capacity by either building a new natural gas power plant in Palm Beach County or purchasing power from other companies, selecting whichever is the best and most cost-effective way to meet customers’ needs. On Friday, December 7, 2007, FPL will issue a “request for proposals” notice outlining its power needs starting in 2011 and providing information about its own proposed project, in accordance with Florida Public Service Commission rules. 

FPL’s self-build option calls for adding a third generating unit at its West County Energy Center in Palm Beach County, which would provide a nominal 1,250 megawatts (minimum of 1,219 megawatts of additional summer capacity), enough to provide power to 250,000 customers within FPL’s 35-county territory.  The company will utilize state-of-the-art, highly efficient natural gas-fired generating technology, which will lower the company’s overall emission rates. The company is currently constructing two units at the Palm Beach County site and expects these units to begin producing electricity in 2009 and 2010. 

“FPL remains committed to continuing and expanding our energy conservation programs, but energy conservation alone will not meet the growing needs of Florida,” said Armando Olivera, president of FPL, which is recognized as a clean energy company and has one of the lowest emission profiles among U.S. utilities. 

 FPL is the leading U.S. electric utility in energy conservation programs and has deferred the need to build 11 power plants over the past two decades as a result of customers participating in these programs.  Going forward, the company expects to offset approximately 25 percent of future electricity demand through its energy management and conservation programs. 

“We are dedicated to providing clean, reliable and cost-effective electric service to our customers and must plan for the future to meet the increasing needs of our growing state,” said Olivera. “Our plans included eventually building a third unit at our West County Energy Center, but we need to build it sooner than anticipated. 

“Highly efficient cleaner natural gas power plants will help us meet the need for added electricity while we work to increase our non-emitting nuclear power plant capacity and build viable renewable energy generating sources,” Olivera added.    

Earlier this year, FPL announced it plans to build solar and wind renewable energy facilities in Florida.  It also announced plans to increase the generating capacity of its existing four nuclear power units by 400 megawatts and to build two new nuclear power units in South Florida.  

“A new nuclear power plant will take over a decade to become operational, and while we are optimistic about renewable energy sources, they provide limited capacity and cannot provide power around the clock,” Olivera said.  “We believe our proposed cleaner natural gas unit is the best alternative in the near term to ensure continued reliable service for our customers,” he said. 

If selected as the best and most cost-effective option to meet customers’ electricity needs, FPL’s new generation project would be among the cleanest, most environmentally-advanced and efficient power plants in the nation.   

As it has with other power plant projects, FPL is committed to active community outreach and dialogue with neighbors, which in the case of the West County Energy Center project has been ongoing since 2005. By doing so, FPL can better align the benefits of this project with the interests and priorities of the communities it serves. 

Building a third unit at the West County Energy Center requires a public process that includes regulatory and environmental agencies.  Under the requirements of Florida’s Power Plant Siting Act, most proposed capacity additions also must undergo multi-agency reviews coordinated by the Florida Department of Environmental Protection and a PSC review and hearing.  The governor and Cabinet provide final approval.    

For more information on the West County Energy Center, see www.FPL.com/westcounty. To find out about energy efficiency and renewable energy, visit www.FPL.com.

The FPL “request for proposals”

In the interest of making sure customers get the best and most cost-effective new sources of future electricity, FPL welcomes and will thoroughly evaluate alternative third-party offers for better and more cost-effective proposals than FPL’s projects.  

In the “request for proposals” notice to be issued Friday, December 7, 2007, FPL provided the following information. 

REQUEST FOR PROPOSAL GENERATION CAPACITY

 

Florida Power & Light Company (FPL) is soliciting proposals for firm capacity and energy with commencement of deliveries beginning June 1, 2011 through June 1, 2012 time frame.

Parties interested in submitting proposals in response to this request may obtain further information and register to participate by visiting our website at www.fpl.com/2007rfp, which will be available by midnight December 13, 2007, or you may contact Steve Sim, RFP Contact Person, Florida Power & Light Company, Resource Assessment and Planning Department, PO Box 029100 Miami, FL 33102-9100, Office 305-552-2246.  

The RFP will compete with FPL’s next planned generating unit.  The next planned generating unit consists of one 1,219 MW (nominal) natural gas-fired combined cycle unit at FPL’s West County Energy Center (WCEC) in the western portion of Palm Beach County, Florida with an in-service date of June 1, 2011. 

The RFP will be available to registered participants on December 13, 2007 through the website, or by contacting Steve Sim. Proposals must be submitted by February 13, 2008 at 4:00 pm EDT to the RFP Contact Person. After initial screening and evaluation, it is anticipated that a short list of proposers will be announced in April 2008 with initial discussions and final evaluation to follow. 

A pre-issuance RFP Discussion Session will be held on December 11, 2007 in Miami, FL to discuss the requirements of the RFP. A Pre-Bid Workshop for participants will be held on December 20, 2007 in Miami, FL to discuss the RFP data requirements and assist potential proposers in understanding the RFP submittal process. Participants may attend either or both meetings in person or by teleconference. Information may be obtained by visiting our website at www.fpl.com/2007rfp or contacting the RFP Contact Person. 

FPL reserves the right to reject all proposals and to modify, defer or cancel the RFP.

 

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 nearly $16 billion and a growing presence in 27 states, FPL Group is widely recognized as one of the country's premier power companies. Florida Power & Light Company serves 4.5 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.