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1 TREASURE COAST REGIONAL PLANNING COUNCIL DRAFT M E M O R A N D U M To: Council Members AGENDA ITEM 4I From: Date: Staff June 22, 2007 Council Meeting Subject: Florida Power & Light Company Ten Year Power Plant Site Plan, Introduction Each year every electric utility in the State of Florida produces a ten year site plan that includes an estimate of future electric power generating needs. The purpose of the ten year site plan is to disclose the general location of proposed power plant sites and facilitate coordinated planning efforts. The Florida Public Service Commission (FPSC) has requested that Council review the most recent ten year site plan prepared by Florida Power and Light Company (FPL). The purpose of this report is to summarize FPL s plans for future power generation and provide comments for transmittal to the FPSC. Summary of the Plan The FPL plan projects continued load growth in its service territory during the next ten years. To help meet this demand, the plan describes a number of demand side management (DSM) programs that are currently being implemented to reduce the need to build additional power plants. These programs include both conservation initiatives and load management. FPL has calculated that DSM programs will avoid the need for approximately 1780 megawatts (MW) of additional generating capacity that would otherwise be needed during the ten year planning period. Despite this effort, FPL will require additional capacity from conventional power plants to meet the future demand. The ten year site plan indicates FPL is proposing to add 5,557 MW of capacity to its system from 2007 to 2016 (Exhibit 1). FPL plans to meet some of its needs through power purchases from utilities and other entities. In addition, FPL is planning to increase capacity through modifying existing power plants and developing new generating facilities. In 2007, FPL plans to add a natural gas-fired 1,144 MW combined cycle (CC) unit to its existing Turkey Point plant site in Miami-Dade County (a CC unit consists of three components: two combustion turbine (CTs), each with its own generator and one steam boiler with an associated steam turbine generator). In 2009, FPL plans to add a new 1,219 MW CC unit at the West County Energy Center in Palm Beach County. In 2010, FPL

2 DRAFT plans to place in service a second 1,219 MW CC unit at the West County Energy Center. The plan indicates FPL is proposing to construct a new coal-fired power plant in the FPL Glades Power Park located in Glades County. The plant is to consist of two supercritical pulverized coal units. The first unit would add 980 MW of capacity in 2013, and the second unit would add 980 MW in In 2015, FPL plans the addition of a new 1,219 MW CC unit. The site for this unit has not yet been identified. Based on the projection of future resource needs, FPL has identified three preferred sites for future generation. These include the existing Turkey Point plant site in Miami-Dade County; the West County Energy Center, which is adjacent to the existing Corbett substation in Palm Beach County; and the FPL Glades Power Park, which is located in Glades County. Also, FPL has identified eight potential sites for new or expanded power generating facilities. The potential sites include the Andytown Substation site in Broward County; the Cape Canaveral plant site in Brevard County; an undeveloped site in Desoto County; the Fort Myers plant site in Lee County; the Lauderdale Plant site in Broward County; the Martin plant site in Martin County; the Port Everglades plant site in Broward County; and the Riviera plant site in Palm Beach County. The identification of potential sites does not represent a commitment by FPL to construct new power generating facilities at these sites. The FPL plan also identifies two issues that continue to receive attention in their ongoing resource planning. The first issue is maintaining fuel diversity in the FPL system. The second issue is maintaining a balance between load and generating capacity in southeast Florida. Regarding increasing fuel diversity, the plan states the proposed increase in coal generation will help to limit the reliance on natural gas. The plan also indicates that FPL is actively investigating the potential for renewable energy in Florida to contribute to system fuel diversity, and is undertaking steps to investigate the next generation of nuclear facilities. Regarding the balance between load and generating capacity in southeast Florida, the plan indicates the proposed addition of new units at Turkey Point and the West County Energy Center will contribute to overall system reliability. Evaluation One of the main purposes of preparing the ten year site plan is to disclose the general location of proposed power plant sites. The FPL ten year site plan identified one preferred site and two potential sites for future power generating facilities in the Treasure Coast Region (Exhibit 2). The preferred site is the West County Energy Center, which is located adjacent to the Corbett substation in Palm Beach County. This facility received Site Certification by the Governor and Cabinet on December 26, Council previously reviewed plans for this facility and found that it was not in conflict with regional policies, provided that it is developed and operated in compliance with the conditions of certification approved by the state. The existing Martin power plant, which is located west of Indiantown in Martin County, is identified as a potential site. The 11,300-acre Martin plant site was identified in 1987 as a preferred location for development of coal gasification combined cycle electric 2

3 DRAFT generator facilities. Previously, Council reviewed FPL plans to expand the Martin plant and found that the expansion was not in conflict with regional policies, provided that it is done in compliance with the conditions of certification approved by the state. The second potential site for additional electrical generation in the Treasure Coast Region is the existing Riviera plant site located in the City of Riviera Beach. This site currently houses two operational 300 MW steam boiler units and one retired 50 MW generating unit. Expansion at this site would require additional industrial processing water from the municipal water supply, and cooling water from Lake Worth Lagoon. In the past, the City of Riviera Beach has expressed concerns about the efficiency and appearance of the existing Riviera plant. The City has requested that this plant be upgraded because it is old and has been the subject of numerous complaints from the public about soot from the facility. Upgrading this facility would provide an opportunity for more efficient generation of electricity, and at the same time would be beneficial to the nearby community by reducing air emission levels. Furthermore, this would provide a good opportunity for enhancing the appearance of the facility. FPL should be required to upgrade the Riviera plant and work with the City of Riviera Beach, Palm Beach County, and surrounding communities to resolve issues related to this facility. Strategic Regional Policy Plan (SRPP) Regional Goal 9.1 calls for decreased vulnerability of the region to fuel price increases and supply interruptions. Council recognizes the need to diversify fuel types in order to accomplish this goal. However, selecting coal as a fuel source for a new power plant is not consistent with Regional Strategy 9.1.1, which is to reduce the Region s reliance on fossil fuels. Council recognizes that much of the electricity purchased by FPL from other companies is already derived from coal. A better way to increase fuel diversity is to add a greater proportion of energy from clean alternative energy resources, such as wind, solar energy, and hydrogen fuel cells. Solar energy and fuel cells may be better suited for development in smaller facilities integrated into communities where the demand is greatest. Also, the shift to smaller solar energy and hydrogen fuel cells units distributed throughout the area of demand could reduce the reliance on large transmission lines. Council considers the FPL Ten Year Power Plant Site Plan for to be inconsistent with Regional Goal 9.1 and Strategy of the SRPP. Council urges FPL and the State of Florida to continue developing new programs to: 1) reduce the reliance on coal and oil as future energy sources; 2) increase conservation activities to offset the need to construct new power plants; and 3) increase the reliance of clean alternative energy systems to produce electricity. The complete costs of burning fossil fuels, such as the costs to prevent environmental pollution and costs to the health of the citizens need to be considered in evaluating these systems. The state should amend the regulatory framework to provide financial incentives for the power providers and the customers to increase conservation measures and to rely to a greater extent on clean alternative energy resources. The phasing in of photovoltaic and other locally available energy sources will help Florida to achieve a sustainable future. 3

4 DRAFT Recommendation Council should approve the draft report and authorize its transmittal to the Florida Public Service Commission. Attachments 4

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