[00:00:05]
GOOD AFTERNOON, WELCOME TO THE FORT PIERCE UTILITIES AUTHORITY REGULAR SCHEDULED MEETING NOVEMBER 1ST, 2022.
PLEASE STAND FOR THE PRAYER AND THE PLEDGE OF
ALLEGIANCE. >> FATHER GOD IN THE NAME OF JESUS, GOD WE THANK YOU, LORD AND WE PRAISE YOUR NAME, GOD. WE THANK YOU, LORD, BECAUSE THIS IS THE DAY, LORD, THAT YOU HAVE MADE AND WE ARE GOING TO REJOICE AND WE ARE GOING TO BE GLAD IN IT.
WE THANK YOU FOR EVERY BOARD MEMBER TODAY.
GOD, WE THANK YOU FOR EVERY RESIDENT HERE TODAY.
OH, GOD WE ASK YOU LORD TO GUIDE THIS BOARD.
GOD WITH YOUR WISDOM TODAY AS GOVERN FPUA.
WE ASK YOU LET THE DECISION BE FAIR TO BOTH THE RESIDENTS OF FT. PIERCE. AND FORT PIERCE UTILITIES AUTHORITY. WE ASK THAT YOU BLESS THE BOARD AND SEEK YOUR GUIDANCE AND KEEP FPUA EMPLOYEES IN YOUR CARE, IN JESUS NAME, WE PRAY, AMEN.
>> AMEN. >> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA.
AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION, UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
[A. SET THE AGENDA]
>> WE HAVE ONE CHANGE TOWN AGENDA BEFORE I ASK IF ANYBODY WILL PUT IN FOR APPROVAL.
BUT WE ARE GOING TO BE MOVING IT'S G-5 TO G-6; IS
THAT CORRECT? >> MOVING G-5 TO G-6.
>> OTHER THAN THAT? >> MOVE APPROVAL WITH THE
[B. APPROVAL OF MINUTES:]
>> DID EVERYBODY HAVE A CHANCE TO READ THROUGH THE
MINUTES? >> CAN WE HAVE A MOTION?
>> I PROPOSE A MOTION TO APPROVE THE MINUTES?
>> I WILL SECOND. >> CALL THE ROLL.
THE PUBLIC TODAY? NO COMMENTS FROM THE PUBLIC.
[D. CONSENT AGENDA:]
ALL RIGHT. WE WILL MOVE ON TO THE CONSENT AGENDA. ARE THERE ANY ITEMS THAT NEED TO BE REMOVED? OR ANYBODY HAVE ANY FURTHERQUESTIONS ON ANYTHING? >> I MOVE TO APPROVE THE
[E.1. We received an email from Benjamin Redic and Gladys White complementing our CSR, Wendy Tomlinson. Hi Customer Service. I want to mention the excellent customer service we received with Wendy today. Wendy was courteous, polite and professional with providing everything needed as a new customer. I needed to send this email because she did a superb job!!]
>> LOOKS LIKE WE HAVE SOME RECOGNITION OF EXCELLENCE.
>> WE DO. >> WE RECEIVED AN E-MAIL FROM BENJAMIN REDIC AND GLADYS WHITE COME PREMENTING OUR CSR, WENDY TOMLINSON. HI, CUSTOMER SERVICE I WANT TO MENTION THE EXCELLENT CUSTOMER SERVICE WE RECEIVED WITH WENDY TODAY. WENDYS COURTEOUS, POLITE AND PROFESSIONAL WITH PROVIDING EVERYTHING NEEDED AS THE NEW CUSTOMER. I NEEDED TO SEND THIS E-MAIL BECAUSE SHE DID A SUPERB JOB.
>> ANY OLD BUSINESS? LOOKS LIKE WE DON'T HAVE ANYTHING. MOVING ON TO NEW BUSINESS.
[G.1. RFQu No. 22-98: Authorize staff to negotiate contract for the Progressive Design-Build Services for the FPUA Systematic Wastewater Conveyance System Redirection to the new Mainland Reclamation Facility with TLC Diversified, Inc. of Palmetto, Florida. Once finalized the agreement will be submitted to the Board for approval and signature.]
>> GOOD AFTERNOON, THANK YOU, MADAM CHAIR AND MEMBERS OF THE BOARD. THE FIRST ITEM REQUEST TO AUTHORIZE STAFF TO NEGOTIATE FOR PROGRESSIVE DESIGN BUILD SURFACES FOR FPUA'S WASTEWATER CONVEYANCE SYSTEM TO REDIRECTION TO THE NEW MAINLAND RECLAMATION FACWASTE WATER PLANT.
>> GOOD AFTERNOON. AS PART O THE RELOCATION TO REDIRECT THE WASTEWATER FLOWS FROM THE CURRENT PLANT TO THE FUTURE LOCATION. THIS IS A VERY COMPLICATED AND A VERY -- THE SCOPE OF SERVICES FOR THIS WORK WILL BE VARIED. A LOT OF DIFFERENT COMPONENTS AS FAR AS LIFT STATIONS AND THINGS OF THAT NATURE WILL BE INVOLVED IN THIS ONE TO ACCOMPLISH THIS, WE HAVE SELECTED A PROGRESSIVE DESIGN BUILD METHODOLOGY BECAUSE OF THE ACCELERATED TIME FRAME AND
[00:05:01]
THE EFFICIENCIES THAT THIS METHOLOLOGY BRINGS TO THE TABLE. IT'S THE SAME WE USE TO CONSTRUCT THE NEW PLANT AS WELL.MR. DAWSON'S ENGINEERING GROUP DID A HIGH-LEVELOVER VIEW OF THE CONVEYANCE SYSTEM USED TO CREATE AN RFQ TO PUT OUT ON THE STREET TO GET A PROGRESSIVE DESIGN BUILD CONTRACTOR. OUR PURCHASING GROUP WENT ABOVE AND BEYOND STATE STATUES IN ADVERTISING THE PROJECT. 1218 INVITATIONS TO BID WERE SENT OUT THROUGH DEMAND STAR.
OF WHICH 33 FIRMS DOWNLOADED THE DOCUMENTS.
IN ADDITION TO THAT THERE WERE 67 DIRECT E-MAILS FROM FPUA TO OTHER POTENTIAL BE BIDDERS POTENTIAL FIRMS THAT MIGHT BE INTERESTED IN THIS. WE HELD A PRESUBMITAL CONFERENCE WITH 8 FIRMS IN ATTENDANCE WHERE WE WENT THROUGH AS MUCH DETAILS AND ANSWERED AS MANY QUESTIONS AS WE COULD. HOWEVER, WE ONLY RECEIVED ONE QUALIFICATION STATEMENT. THE GOOD NEWS IS THE FIRM THAT RESPONDED WAS TLC DIVERSIFIED AND JOINT VENTURE. THESE ARE ALL VERY QUALIFIED FIRMS AND CONTRACTORS WITH PLENTY OF EXPERIENCE WITH THE TYPE OF WORK THAT WE NEED TO GET THIS JOB DONE.
TLFSH STAFF IS RECOMMENDING ENTERING NEGOTIATIONS WITH TLC DIVERSIFIED AND ANTICIPATES BRINGING THE CONTRACT BACK TO THE BOARD BEFORE THE END OF THE YEAR.
IF THERE ARE ANY QUESTIONS, I WILL BE HAPPY TO ANSWER
THEM. >> MADAM CHAIR, THERE'S NO PRICE TAG ON THIS YET; RIGHT?
>> THAT'S CORRECT, MA'AM. >> SO NEGOTIATIONS WILL
PRODUCE THAT? >> YES, IT WILL.
YES, IT WILL. THE SCOPE OF WORK THE VERY FIRST THING TO DO IS DO A MODEL HYDRAULIC MODEL OF THE WASTEWATER SYSTEM. START TO CREATE THE OVERVIEW OF THE PLAN. HERE'S GOING TO BE MULTIPLE PHASES THAT THIS WILL BE BROKEN UP INTO.
DURING THE TIME THAT WE ARE COMMISSIONING THE NEW PLANT AND DECOMMISSIONS THE OLD PLANT.
I WILL BE A MOVING TARGET. THE FIRST SCOPE 30% DESIGN.
VERY SIMILAR TO THE MWRF SCOPE.
AND WE'LL HAVE A PRICE TAG ON THAT.
AND THEN ONCE THAT IS DONE TO GO FROM THE 32 TO 60 WE'LL HAVE ANOTHER OPPORTUNITY TO LOOK AT IT, IF THE BOARD DOESN'T FEEL THAT'S THE BEST WAY TO GO WE CAN BREAK IT UP AND LOOK AT OTHER METHODOLOGIES AS WELL.
>> DO WE HAVE A ROUTE? >> IT'S PRELIMINARY.
AS OF NOW. WE HAVE THE PLANS THAT WE'RE DONE IN THE MASTER PLAN FROM YEARS AGO THAT WE BEEN WORKING ON FOR MANY, MANY YEARS.
HOUR, WHEN YOU REALLY GET INTO THE DETAIL OF A HYDRAULIC MODEL, THAT WILL ANSWER A LOT OF THE QUESTIONS AS WELL. WE MIGHT FIND OTHER EFFICIENCIES THAT WE DIDN'T SEE AT 50,000 FEET.
>> MADAM CHAIR? >> THE HYDRAULIC MODEL IS
UNDER THEIR SCOPE? >> YES, SIR.
>> DO YOU HAVE A GUEST AS TO WHY WE ONLY RECEIVED ONE
SINGLE QUALIFICATION? >> YOU KNOW, THAT WAS A QUESTION THAT WE ASKED AS WELL.
AND OUR PURCHASING GROUP THEY LITERALLY ASKED THOSE QUESTIONS. THERE WAS -- IT REALLY BOILS DOWN TO A COMBINATION OF TWO THINGS.
THIS IS A BIG PROJECT. IT'S VERY COMPLICATED.
SO THERE WERE SEVERAL FIRMS AND CONTRACTORS DIDN'T FEEL LIKE THEY COULD DEDICATE ENOUGH RESOURCES TO GET THE JOB DONE IN THE TIME FRAME WE NEEDED IT DONE.
THAT'S NUMBER ONE. >> WHAT'S THE TIME FRAME
THAT WE'RE ASKING FOR? >> WELL, TO COMMISSION THE NEW PLANT WE'RE GOING TO NEED 1 MILLION AND A HALF GALLONS PER DAY. FIGURE WE HAVE TWO YEARS TO GET THE FIRST PHASE OF THIS PROJECT DESIGNS, ENGINEERED
AND CONSTRUCTED. >> HAS THIS -- WHAT OTHER PROJECTS HAVE THEY DONE TO THIS SCOPE?
>> THERE'S A VERY LONG LIST. KENNELLY HORN IS A LONG ENGINEERING GROUP. THEY ARE INTERNATIONAL AS WELL. THEY ARE DOING THE DESIGN WORK FOR VERO BEACH WASTEWATER PLANT.
THEY'VE DONE -- IT'S JUST VARIED.
THEY'VE DONE A LITTLE BIT OF EVERYTHING THERE.
TLC IS A BIG FIRM AS WELL. A BIG CONTRACTING GROUP.
THEIR SPECIALITY MORE IN THE LIFT STATIONS THAT THEY'VE DONE OTHER WORK FOR US SPECIFICALLY ON LIFT STATIONS AS WELL. AND FELIX IS AN UNDERGROUND CONTRACTOR THAT BUILT A LOT, MILES AND MILES OF PIPELINES DOWN IN PORT ST. LUCIE, SPECIFICALLY RIGHT IN OUR BACK DOOR. AGAIN, THESE ARE ALL VERY LARGE FIRMS THAT HAVE THE RESOURCES TO PULL THIS OFF.
YOU KNOW, IF THIS WAS CONTRACTORS THAT HAD ONE O -- OR TWO CREWS WE WOULD PROBABLY HAVE TO LOOK AT DIFFERENT OPTION. THESE CONTRACTORS HAVE EIGHT CREWS, TEN CREWS DEDICATED TO THIS TYPE OF WORK.
>> GLAD TO HEAR WE'VE DONE SOME WORK WITH TLC IN THE
[00:10:02]
PAST. AT LEAST WE'RE FAMILIAR.THAT'S GREAT. >> ANY FURTHER QUESTIONS OR?
>> I WILL MOVE FOR APPROVAL. >> SECOND.
[G.2. POA 23-61-015: Approve the Engagement Letter with Shutts & Bowen LLP, of Miami, Florida, in an amount not to exceed $50,000.00 annually, for legal services related to the State of Florida Reverter Clause for the IWRF property (Reverter Clause). The initial term of this agreement will be upon execution until terminated by either party, contingent on receiving the required Certificate(s) of Insurance.]
>> THE NEXT ITEM IS ALSO MR. HUTCHINSON, IT'S REQUEST TO APPROVE ENGAGEMENT LETTER FOR LEGAL SERVICES TO EVALUATE THE STATE OF FLORIDA REVERTER CLAUSE ASSOCIATED WITH THE EXISTING WASTEWATER PLANT.
MR. HUTCHINSON? >> THANK YOU, MR. CISNEROS.
I KNOW THE BOARD IS FAMILIAR WITH THE REVERTER CLAUSE AND ALL OF THAT. I WILL GIVE A BRIEF OVERVIEW FOR ANY OF THE PUBLIC THAT'S WATCHING.
THE PROPERTY THAT THE IWF CURRENTLY OCCUPIES IS OWNED BY THE STATE. THE CONTROL OF THAT PROPERTY WAS GIVEN TO THE CITIZENS SPECIFICALLY FOR THE OPERATION OF THE IWRF. IF THAT USE CHANGES, THEN WE'RE GOING TO NEED TO NEGOTIATE THE DISPOSITION OF THAT PROPERTY WITH THE STATE.
THIS MAY INCLUDE A BUYOUT FROM THE STATE DEPENDING ON WHATEVER THE PERSPECTIVE USE IS ON THE PROPERTY.
TO THIS END, STAFF IS RECOMMENDING ENGAGING SHUTTS AND WOWEN TO ASSIST US WITH THIS NEGOTIATION.
THEY HAVE EXPERIENCE WITH THESE REVERTER CLAUSES, VERY SIMILAR TO US. THEY WERE RECOMMENDED BY OUR STATE LOBBYIST. THEY WILL WORK WITH STAFF AND MR. KOBLEGARD TO GET THE DETAILS OF THAT WORKED OUT TO MAKE SURE THAT WE HAVE YOU KNOW THE BEST DEAL THAT
WE CAN FOR OUR SINNS. >> MR. CHAIRMAN?
>> I HAVE TO CORRECT UP WITH THING FORT PIERCE UTILITIES AUTHORITY. IF CONVEYED TO US BY THE TRUSTEES. THEY HAVE A REVERTER CLAUSE, YES. WE OWN THE PROPERTY, NOT THE
>> ANY QUESTIONS? >> MADAM CHAIR, WHAT WOULD YOU SAY IS THE BEST CASE SCENARIO AS WE DECOMMISSION THE PLANT AND THIS PROPERTY GOES INTO SOMEONE ELSE'S CONTROL? FOR US, FOR FPUA AND MORE
IMPORTANTLY THE CITIZENS. >> I THINK YOU KNOW THE CONCERN HERE IS THAT THE AMOUNT OF MONEY THAT THE STATE MAY ASK FOR TO GET OUT OF THIS REVERTER CLAUSE.
WE DON'T KNOW WHAT THE NUMBER IS.
THERE'S DIFFERENT NUMBERS THROWN AROUND THROUGH THE YEARS. I THINK OUR BEST CASE SCENARIO TO MAKE A GOOD ENOUGH CASE THAT THE USE WE WANT FOR THIS PROPERTY WHATEVER IT HAPPENS TO BE IS THE BEST USE FOR OUR CITIZENS AND THEY WOULD WAVE THAT. THAT WOULD BE THE BEST CASE.
THAT'S CERTAINLY OUR STARTING POINT.
>> IS THERE ANY PRECEDENT FOR THIS SPECIFIC SCENARIO WHERE YOU HAVE A WASTEWATER PLANT OR SOMETHING THAT WAS USED FOR A PUBLIC FACILITY AND THEN IT WENT BACK TO THE STATE OR THE MUNICIPALITY OR THE TOWNSHIP HAD TO DEED IT BACK TO THE STATE OR COMPENSATE THEM IN SOME WAY?
>> YOU KNOW, THERE IS. UNFORTUNATELY I DON'T HAVE ANY REAL SPECIFICS ON THIS PARTICULAR PIECE OF PROPERTY AND THIS MUNICIPALITY COST THIS MUCH OR THEY MADE A PARK OUT OF IT AND THEY GAVE IT TO THEM.
I DON'T HAVE THE SPECIFICS ON THAT, UNFORTUNATELY.
THIS IS NOT THE FIRST TIME THIS HAS HAPPENED.
IT'S NOT COMMON. BUT IT HAS HAPPENED ENOUGH TO WHERE THERE'S LAW FIRMS THAT SPECIALIZE IN IT.
>> OKAY. >> MADAM CHAIR? MANY YEARS AGO WE CLEARED TALLAHASSEE WITH THE TRUSTEES, WITH THIS EXACT QUESTION.
WHAT HAPPENS WITH THE REVERTER CLAUSE.
WE HAD A VERY FRIENDLY MEETING.
KIND OF LAUGHED AT THE END OF IT AND SAID BASICALLY WE'RE NOT GOING TO TELL YOU WHAT THE DO BUT WHEN YOU DECIDE WE WANT A PIECE OF THE ACTION.
AND THAT'S THE WAY IT ENDED. WHEN YOU SAY THE TRUSTEES IS THAT THE TRUSTEES IN THE NAVIGATION DISTRICT EQUAL
>> TRUSTEES OF THE TRUST FUND.
INTERNAL IMPROVEMENT TRUST FUND.
IT'S BASICALLY THE CABINET IN A WAY PART OF THAT.
>> WE HAD THAT MEETING IN TALLAHASSEE.
>> I KIND OF REMEMBER THAT. >> THE PROPERTY IS UNDER THE CONTROL OF THE DEP. THAT'S PROBABLY IN OUR FAVOR. YOU ASK FOR THE KEP FOR
[00:15:02]
ASSISTANCE WITH FUNDING. I THINK OUT OF ANY STATE AGENCY, THEY WILL BE THE STATE AGENCY THAT UNDERSTANDS THE ENVIRONMENTAL BENEFITS OF THIS MORE THAN ANYBODY. I THINK WITH A LITTLE BIT OF WORK, WE WILL BE IN THE GOOD POSITION.>> I'M THINKING THIS IS SOMETHING THAT WE HAVE TO DO EVEN THOUGH WE HAVE INFORMATION ALREADY AND -- BECAUSE EVERY ADMINISTRATION CHANGES.
THE PEOPLE AT THE HEAD OF IT CHANGE.
THE CABINET MEMBERS CHANGE. THE APPROACH CHANGES.
IN ORDER TO -- WE COULD GO ALONG AND THINK WE KNOW WHAT WILL HAPPEN AND THEN ALL OF A SUDDEN IT WOULD BE A TOTALLY DIFFERENT SCENARIO. THESE PEOPLE HAVE EXPERIENCE IN THIS. THEY HAVE A TALLAHASSEE ADDRESS. SO I GUESS THEY ARE OUT OF
TALLAHASSEE; ARE THEY? >> THEIR MAIN FIRM IN MIAMI.
IT'S A LARGE LAW FIRM. >> MANY OFFICES ALL OVER.
>> WELL, THEN. THEY ARE WELL-KNOWN IN
>> ONE OF THE LARGER FIRMS IN THE STATE, I THINK.
>> I MOVE APPROVAL. >> I WILL SECOND.
[G.3. Natural Gas Rate Stabilization Fund Update September 2022 – Decrease the Purchased Gas Adjustment (PGA) $.11 per ccf from $.28 per ccf to $.17 per ccf, effective December 1, 2022.]
MADAM CHAIR, NEXT ITEM IS A REQUEST TO DECREASE THE POWER GAS ADJUSTMENT PGA, ACTING GAS STUPT W WILL -- SUPERINTENDENT WILL PRESENT THIS ITEM.
THIS INDEPENDENT PROCESS FROM FMPA GAS PURCHASES FOR POWER GENERATION WHICHES A QUESTION FROM THE BOARD MEMBERS EARLIER THIS WEEK. THANK YOU MR. CISNEROS, MATT A.M. -- ED A -- MADAM CHAIR, MEMBER OF THE BOARD.
I BRING YOU THE UPDATE FOR SEPTEMBER OF 2022.
STAFF HAS RERUN IS SENSITIVITY ANALYSIS.
NATURAL GAS PRICES HAVE BEEN TRENDING UP AND DOWN SINCE THE MIDDLE OF AUGUST. THE PRICING OVER THE LAST FEW MONTHS HAVE AVERAGED ABOUT $7.94 A DECOTHERM.
THIS MONTH THE MONTH OF SEPTEMBER BEGAN WITH PROMPT MONTH FUTURE TRADING AROUND $7.
AND ENDED UP LESS THAN $6. FUTURES REMAIN AT ABOVE $5MMPTU THROUGH FEBRUARY OF 2023.
DECEMBER'S EIA STORAGE INVENTORY REPORT SHOW INJECTION FOR SEPTEMBER INCREASE OF 129BCF FROM THE WEEK BEFORE. WE ARE STILL 264 BSR BELOW LAST YEAR SAME TIME. THE 129 BCF INJECTION IS THE SECOND HIGHEST INJECTION ON RECORD.
THE SEPTEMBER CURVE REFLECTS INCREASE APPROVED BY THE BOARD ON MARCH 19TH, 2022 FROM NEGATIVE TWO CENTS TO POSITIVE 28 CENTS A CCF. THE PRICE OF GAS HAS FALLEN OVER $2 SINCE MIDDLE OF SEPTEMBER.
IT WILL BE ABOVE OPERATING RANGE BY DECEMBER.
BASED ON THE CURRENT STATUS. STAFF RECOMMENDS DECREASE OF 11 CENTS PER CCF FROM 28 CENTS TO 17 CENTS PER CCF EFFECTIVE DECEMBER 1ST. THIS A BILL COMPARISON WITH CITY GAS. YOU CAN SEE THAT RIGHT NOW AT 19 CCF AT 28 CENTS WE'RE CHEAPIE THAN CITY GAS.
WHEN WE LOWER TO 17 WE WILL BE ALMOST $2 CHEAPER.
TO LET THE BOARD KNOW I GOT A LETTER FROM CITY GAS AND THEY ARE RAISING THEIR BASIC SERVICE CHARGE BY $5.
THAT WILL MAKE US EVEN CHEAPER.
ANYBODY HAVE ANY QUESTIONS. >> THANK YOU FOR ADDING THAT LAST. THAT'S A GOOD ONE TO SEE.
ANYBODY HAVE ANYTHING THEY WOULD LIKE TO ADD?
>> ARE YOU RECOMMENDING A LOWER PRICE?
[00:20:04]
>> MOVE FOR APPROVAL. >> PLEASE CALL THE ROLL.
[G.4. Bill Comparisons for the Month of September 2022 – For Information Only]
THE NEXT ITEM MADAM CHAIR AND MEMBERS OF THE BOARD BILL COMPARISON FOR SEPTEMBER 2022.ANDREA SLOAN WILL PRESENT THIS ITEM.
>> THANK YOU MR. CISNEROS. I WILL BE PRESENTING THE MONTHLY UPDATE ON THE COMPARISONS OF THE FLORIDA MUNICIPAL ELECTRIC RATES PUBLISHED BY FMEA AND UTILITY BILLS FOR SEPTEMBER. THIS GRAPH DEPICTS FPUA RESIDENTIAL ELECTRIC WAIT FOR 1,000 KILOWATT BY HOURS OF CONSUMPTION. FOR SEPTEMBER YOU SEE FPUA IS 137.70 AS INDICATED BY THE YELLOW BAR.
WE'VE MOVED DOWN TWO SPOTS SINCE AUGUST.
WE ARE POSITIONED THIRD FROM THE LEFT WHICH INDICATES WE LOWER THAN TEN OF THE OTHER MUNICIPALITIES.
THIS GRAPH DISPLAYS A COMPARISON OF THAT SAME LEVEL OF CONSUMPTION INCLUDING ALL MUNICIPALITIES IN THE STATE. FOR SEPTEMBER 137.77 TOTAL RATE WENT DOWN AS A RESULT OF THE PCA DECREASE.
WE'VE MOVED DOWN 7 SPOTS WHEN COMPARED TO POSITION IN AUGUST. WE'RE LOWER THAN HALF OF THE OTHER MUNICIPAL UTILITY. EIGHT OF UTILITIES YOU'VE SEEN HERE LISTED IMPLEMENTED INCREASES IN SEPTEMBER.
THIS RESULTED IN AN ARP AVERAGE INCREASE OF 27 CENTS AND MUNICIPAL AVERAGE INCREASE OF $1.32.
FPUA RATE ARE LOWER NOW. THIS GRACH PRESENTS COMPARISON BETWEEN ALL OF THE MUNICIPAL ELECTRIC PROVIDER FOR INCREASE CONSUMPTION LEVEL OF 2500 KILOWATT HOURS. FPUA SEPTEMBER BILL IS 347.10 AS INDICATED BY THE YELLOW BAR.
WE'VE SHIFTED 7 SPOTS TO LEFT.
AND WE PRESENTLY RANK IN THE LOWER HALF OF ALL THE MUNICIPAL UTILITIES. AGAIN IF THIS CONSUMPTION LEVEL IS LOWER THAN ALL THREE AVERAGES.
THIS SLIDE DISPLAYS COMPARISON OF AVERAGE BILLS TOWN TREASURE COAST FOR MONTH OF SEPTEMBER.
FPUA UTILITY BILL FOR INSIDE CITY LIMIT CUSTOMERS.
THE OTHER COLUMNS REPRESENTING NEIGHBORS CITY HAVE ELECTRIC SERVICE PROVIDED BY FPL AND WASTEWATER BY THE LOCAL MUNICIPALITY.
THE COMPARISON UTILIZING STANDARD CONSUMPTION RATE OF 1,000 KILOWATT HOURS FOR ELECTRIC AND 6,000 FOR WATER AND WASTEWATER. THOSE AVERAGES WERE 1,276 KILOWATTS FOR ELECTRIC AND 5,234 GALLONS FOR WATER.
SINCE THIS INFORMATION WAS LAST PRESENTED TO THE BOARD, MARTIN COUNTY INCREASED THEIR WATER AND SEWER RATE EFFECTIVE JUNE 1ST OF 2022. VERO BEACH POSITIONED TO INCREASE THEIR RATES BY APPROXIMATELY 15% IN JANUARY OF 2023. THAT MEASURE LIKELY TO BE APPROVED ON DECEMBER 6TH ACCORDING TO THE REPORTS
OUT. >> THIS ITEM HAS BEEN PRESENTED FOR YOU INFORMATION ONLY AND REQUIRES NO ACTION BUT IF YOU HAVE ANY INFORMATION IT WOULD BE HAPPY TO ADDRESS THEM.
>> LOOKING GOOD FOR THIS MONTH.
I DON'T KNOW WHAT IT WILL BE NEXT MONTH.
>> NICE WE'VE MOVED DOWN 7 SLOTS FOR SURE.
IT STILL FEELS LIKE WE'RE PAYING SO MUCH BUT AT LEAST WE CAN SEE THAT OUR NUMBERS ARE DEFINITELY -- WE'RE STRIVING TO MAKE SURE WE REMAIN COMPETITIVE.
>> JUST TO ANSWER THE MAYOR'S QUESTION.
WE WON'T HAVE THE PCA WON'T GO -- THE NEW PCA WON'T GO EFFECT UNTIL DECEMBER. WE'LL HAVE OCTOBER AND
NOVEMBER. >> SOUNDS LIKE THERE'S OTHER INCREASES ON THE WAY FOR DECEMBER AS WELL.
>> YES, FOR SURE. >> MADAM CHAIR, COULD I ASK HOW THE PAYMENTS ARE COMING IN, HOW IS THE -- HOW ARE WE DOING IN TERMS OF PEOPLE PAYING THEIR BILLS?
>> I CAN FOLLOW UP WITH YOU. I HAVEN'T LOOKED AT THAT IN QUITE SOMETIME. COUPLE OF WEEKS AT LEAST.
I CAN FOLLOW UP WITH YOU. I CAN PROVIDE AN UPDATE AT
[00:25:03]
THE BOARD AT THE NEXT BOARD MEETING.[G.6. August 2022 Financial Operating Results – For Information Only]
>> THANK YOU ANDREA. MADAM CHAIR, MEMBER OF THE BOARD THE NEXT ITEM IS A FINANCIAL OPERATING REPORTS RESULTS PRESENTATION FOR AUGUST OF 2022.
MICHELLE HARRIS FINANCE MANAGER WILL PRESENT THIS ITEM. THANK YOU MR. CISNEROS.
I WILL PRESENT THE FINANCIAL OPERATING RESULTS FOR AUGUST OF 2022. SOME OF THE HIGHLIGHTS FOR THE 11 MONTHS TO DATE FOR FISCAL YEAR '22 ARE AS FOLLOWS. YEAR TO DATE OPERATING INCOME OF 7,108,000, 1.7 MILLION LOWER THAN LAST YEAR. WE ARE SEEING INCREASES IN REVENUES FROM THE PCA, PGA AND RATE INCREASES.
BUT THEY ARE OFF SET BY THE HIGH COST OF PURCHASING FOR RESALE AS WELL AS INCREASES IN ALL OPERATING EXPENSES.
20 MILLION DOLLARS IN FISCAL YEAR '22.
THE REVENUE FROM THE PCA ACCOUNTED FOR 78% OF THAT.
THAT'S ABOUT 15 AND A HALF MILLION OF 20 MILLION WAS DUE TO PCA. ANOTHER 1.5 MILLION FROM PGA. OUR GOAL TO OBTAIN GRANT IS PAYING OFF AS WE RECEIVED ALMOST $700,000 IN GRANTS SINCE AUGUST. TOTAL OPERATING EXPENSE WERE HIGHER THIS YEAR. THAT WAS 21 AND A HALF MILLION DOLLARS. 17 MILLION OR 80% OF THAT 21 MILLIONS DUE TO COST OF PURCHASES FOR RESALE.
WE ALSO RECORDED ABOUT A MILLION AND A HALF DOLLARS IN CLOSING COSTS DUE TO ISSUANCE OF REFUNDING OF THE REVENUE BONDS. JUST KEEP IN MIND THAT'S LESS THAN NET SAVING WE OCCURRED FROM REFUNDING THE '09 SERIES. OUR OPERATING DAYS OF CASH AFTER THE BOND REFUNDING AND ISSUANCE AT THE END OF AUGUST IS ABOUT 65 DAYS. AFTER THE ADJUSTMENT FOR THE DISTRIBUTION TO THE CITY, OUR YEAR TO DATE INCREASE IN THAT POSITION IS 2.3 MILLION.
ELECTRIC OPERATING REVENUES LESS THE POWER COST IS UP LAST YEAR BY 6% FOR 1.3 MILLION IN THE YEAR OVER YEAR COMPARISON ALL CONSUMPTION REMAIN FLAT.
THE COST OF OUR PURCHASE POWER HAS INCREASED 15 AND A HALF MILLION ON AVERAGE THAT'S ABOUT 41% INCREASE COMPARED SAME PERIOD LAST YEAR.
YEAR TO DATE WATER OPERATING REVENUE OF 18.7 MILLION ARE UP 4% FROM FISCAL YEAR '21 AND CONSUMPTION SLIGHTLY DOWN FROM LAST YEAR. WASTEWATER OPERATING REVENUE ARE ALSO UP 4% FROM LAST YEAR.
WHILE EXPERIENCING SMALL DECLINE OF 2% IN GALLONS BILLED. NATURAL GAS OPERATING REVENUE LESS THE COST OF PURCHASE COST ARE LEVEL WITH THE SAME PERIOD FROM FISCAL YEAR '21.
OUR YEAR TO DATE RESIDENTIAL AND GENERAL SERVICE CONSUMPTION IS HIGHER BY 1.3% AND OUR GAS CONTRACT SALES REMAIN STRONG WITH INCREASE OF 9.4%.
THE COST OF GAS HAS INCREASED 1.5 MILLION FROM LAST YEAR. THAT'S AN # 8% INCREASE COMPARED LAST YEAR. OUR DEBT SERVICE COVERAGE RATIO IS RATIO OF DEBT AVAILABLE INCOME.
IT'S OUR ABILITY TO PAY OFF INTEREST PAYMENTS.
IT'S A MEASURE FOR ABILITY TO REPAY THE LOANS.
AND FOR THE 12 MONTHS ENDING AUGUST OUR DEBTED SERVICE RATIO 3.09 AT THE END OF SEPTEMBER, '21 OUR RATIO 3.54 AND JUST REMINDER BOND COVENENCE MAINTAIN 1.25.
THIS IS INFORMATION ONLY. I WILL BE GLAD TO ADDRESS ANY QUESTIONS THAT YOU MAY HAVE.
>> THANK YOU. THANK YOU MICHELLE.
[G.5. Florida Municipal Solar Project Update – For Information Only]
MADAM CHAIR, MEMBER OF THE BOARD, THE LAST ITEM THIS AFTERNOON IS A PRESENTATION BY THE FMPA STAFF FOR THE FLORIDA MUNICIPAL SOLAR PROJECT.IT'S BEEN QUITE SOMETIME SINCE THE LAST UPDATE.
THIS SHOULD BE RECAP FOR THE BOARD.
BOARD APPROVED AND SIGNED THE FIRST PHASE OF THE SOLAR PROJECT ON FEBRUARY 6, 2018. THE SECOND FACE WAS APPROVED AND SIGNED BY THE BOARD ON NOVEMBER 19TH OF 2019.
AGAIN TODAY'S PRESENTATION WILL PROVIDE GOOD RECAP AND WE WILL NEED DIRECTION FROM THE BOARD.
FOR THE NEXT PHASE, PHASE 3. THE FMPA TEAM IS HERE.
THEY WILL LEAD THE PRESENTATION.
WHILE THEY PREPARING JACOB AND SUSAN HAVE BEEN HERE
[00:30:04]
EFFECTIVELY ALL DAY. JASON WAS GUEST NOTE SPEAKER FOR THE LUNCHEON TODAY. COUPLE OF HUNDRED PEOPLE TODAY. AND THIS AFTERNOON, THEY HAD A CHANCE TO MEET WITH THE DBA FOLKS.MRS. GIBBONS WAS THERE. SMALL GROUP BUT IMPORTANT TO SHARE THE INFORMATION WITH THE COMMUNITY.
I WOULD LIKE TO THANK THEM FOR JOINING US HERE TODAY.
NOW THEY ARE HERE AT THE BOARD MEETING.
>> THANK YOU MY APOLOGIES FOR THE DELAY THERE.
APPRECIATE YOUR PATIENCE. WE ARE HAPPY TO BE HERE TODAY TO PROVIDE AN UPDATE ON THE FLORIDA MUNICIPAL
SOLAR PROJECT. >> COULD YOU MOVE THE MIC
CLOSER. >> THAT WOULD BE BETTER.
>> WHEN IT'S RED. >> THERE YOU GO.
>> THERE YOU GO. >> THANK YOU VERY MUCH.
WE ARE HAPPY TO BE HERE TODAY.
TO PROVIDE AN UPDATE ON THE FLORIDA MUNICIPAL SOLAR PROJECT. I'M GOING TO PROVIDE A STATUS OF THE THREE PHASES THAT JAVIER HAS KIND OF TEED UP FOR US. THEN I WILL TURN IT OVER TO JACOB AND HE WILL TALK ABOUT CONSIDERATIONS THAT FPUA TEAM MAY WANT TO THINK OF WHEN YOU DECIDE WHETHER YOU WANT TO PARTICIPATE IN PHASE 3 SOLAR PROJECT.
THIS IS ONE OF THE LARGEST PROJECT IN THE COUNTRY FOR PHASE ONE AND PHASE 2, THERE'S 16FMPA MEMBERS WHO PARTICIPATE INCLUDING FPUA. THAT'S FOR TOTAL OF 300 MEGAWATTS BY THE END OF 2024.
THOSE TWO FACES WILL BE COMPLETE AND ONLINE.
FPUA HAS 18 OF THOSE MEGAWATTS.
YOU ARE A SIGNIFICANT PARTICIPANT OF THIS SOLAR PROJECT. WE'RE CURRENTLY WORKING ON PHASE 3. AND IT'S GOING TO PROBABLY DOUBLE THE SIZE OF THE FLORIDA MUNICIPAL SOLAR PROJECT UP TO ABOUT 300 ADDITIONAL MEGAWATTS.
YOU KNOW ONE OF THE REASONS THERE'S SO MANY INTEREST AMONG OUR MEMBERSHIP AND WHY SO POPULAR IS BECAUSE IT REALLY IS THE MOST COST EFFECTIVE WAY TO BRING SOLAR ENERGY TO YOUR CUSTOMERS. ROOFTOP SOLAR IS PROBABLY 3 TO 5 TIMES THE COST. COMMUNITY SOLAR SMALLER INSTALLATION OF 2-5 MEGAWATS THAT YOU PUT IN YOUR OWN TERRITORY. THAT'S DOUBLE THE COST OF THE UTILITY SCALE. THIS IS GREAT WAY TO BRING SOLAR ENERGY TO YOUR CUSTOMERS.
JAVIER ASKED US TO PROVIDE AN UPDATE AND GIVE YOU THE NEXT STEP FOR ALL THREE PHASES.
THERE'S A LOT OF ACTIVITY IN EEP OF THE PHASES.
HE JUST PROACTIVELY WANTED TO MAKE SURE THAT YOU WERE INFORMED. BECAUSE YOU WILL NEED TO BE MAKING SOME DECISIONS AT SOME POINT.
THERE ARE A LOT OF FMPA BOARD AND COMMITTEE DECISIONS. JAVI PARTICIPATINGS IN T -- PARTICIPANTS IN THE GROUP.
HE PROVIDES US WITH A LOT OF DIRECTION FOR ALL OF THE PROJECT THAT FMPA, WITH THE SOLAR PROJECT AS WELL.
THERE'S ALSO LOCAL APPROVALS REQUIRED HERE.
AGAIN, WE JUST WANTED YOU TO BE FULLY INFORMED BEFORE YOU TAKE ACTION. THE STATUS OF PHASE ONE, THIS IS POWER PURCHASE AGREEMENT ARRANGEMENT WITH FLORIDA RENEWABLE PARTNERS AND AS WE ENTERED INTO THE AGREEMENT IN 2018 AND FPUA SUBSCRIBED TO THREE MEGAWATTS OF PHASE ONE. ABOUT TWO MEGAWATS ARE COMING FROM THE HARMONY SOLAR ENERGY CENTER AND THAT'S BEEN IN OPERATION SINCE 2020.
AND ALMOST ANOTHER MEGAWAT WAS EXPECTED TO COME.
PHASE ONE HAS TWO FACILITIES THAT ARE ONLINE AND OPERATING SINCE 2020. THAT'S TAYLOR CREEK AND THE HARMONY. UNFORTUNATELY, THE THIRD FACILITY WILL NOT BE DEVELOPED.
IT WAS DETERMINED NOT TO BE A VIABLE SITE FOR DEVELOPMENT OF SOLAR BY -- BY FLORIDA RENEWABLE PARTNERS. THERE WERE PHYSICAL LIMITATIONS. IT WAS A VERY WET SITE.
IT WAS WET LANDS AND IT DIDN'T DRAIN WELL.
THE COSTS WERE INCREASES TO DEVELOP.
FRP CAME TO US AND SAID THEY WOULDN'T BE ABLE TO DEVELOP IT. FMPA WILL BE ENTERING INTO A
[00:35:02]
MUTUAL TERMINATION AGREEMENT WITH FRP AS DRAFTED IT'S VERY STRAIGHT FORWARD. THERE AREN'T GOING TO BE ANY CONFUSING ELEMENTS TO IT AND NO OPPOSITION AMONG THE PARTICIPANT WHOSE WILL DETERMINE THE FATE.THE PARTIES WILL HAVE FULL TERMINATION PAYMENT THAT GOES BACK TO PARTICIPANTS. THEIR CONFIDENTIAL TERM BUT A PART OF THE PP HAS HAS BEEN CONTEMPLATED IF WE WERE TO TERMINATE. JAVI HAS THOSE TERMS AVAILABLE TO HIM. AND THE PARTIES WILL RELEASE EACH OTHER FROM CLAIMS REGARDING POINTS IN THE FUTURE. IT'S VERY SIMPLE AND STRAIGHT FORWARD. THE SOLAR ONE COMMITTEE INCLUDING FT. PIERCE WILL MEET IN THE UPCOMING DAYS.
HOPEFULLY WE CAN GET THE KEYS TOGETHER SOON.
TO REVIEW THIS AND APPROVE IT.
AND THEN THE FMPA BOARD AND EXECUTIVE COMMITTEE HOPEFULLY IT'S AGGRESSIVE SCHEDULE.
BUT WE THINK WE CAN HAVE EVERYTHING READY FOR THEM TO APPROVE AT THE NOVEMBER MEETING.
THE PARTICIPANTS WILL THEN BE REDIRECTED TO PHASE 3 FACILITY. THAT WE ARE STARTING TO DEVELOP AT THIS POINT RIGHT NOW.
IT IS UNFORTUNATE THAT THEY WILL NOT BE DEVELOPED.
BUT THE PARTIES AGREE THIS IS MOST SATISFACTORY OUTCOME THAT WE CAN HAVE BEGIN THE OPTIONS THAT ARE AVAILABLE TO US RIGHT NOW. PHASE TWO IS SIMILAR ARRANGEMENT WITH ORIGIS ENERGY.
WE ENTERED INTO THE CONTRACT IN 2019.
FPUA SUBSCRIBED FOR 15 MEGAWAT AND THAT'S DIVIDED EVENLY BETWEEN TWO FACILITIES, RICE CREEK AND WHISTLING DUCK. AS OF NOW THOSE ARE ON SCHEDULE TO COME ONLINE FOR COMMERCIAL OPERATIONS AT THE END OF 2023. AND AT THE END OF 2024.
HOWEVER THE MARKET -- IS SOLAR INDUSTRY IS CRAZY.
THERE'S A LOT OF ACTIVITY WITH ALL OF THIS.
WE'VE BEEN BUSY TRYING TO MANAGE THIS ON BEHALF OF OUR MEMBERS. BUT THE MARKET CONDITIONS AND THAT INCLUDES SOME LEGISLATIVE AND REGULATORY ACTIVITIES THAT ARE HAPPENING SUPPLY CHAIN ISSUES, AND, OF COURSE, INFLATION.
THAT'S RESULTED IN PRICE INCREASE FROM THE ORIGINAL CONTRACT. ORIGIS PROPOSED SOME PRICING. IT'S STILL COMPETITIVE PRICING. NOT AS GOOD AS ORIGINAL PRICING UNFORTUNATELY. THE COMMITTEES DID APPROVE THIS AND REVIEWED THE PRICING INCREASE AND DETERMINED THAT IT WAS STILL COMPETITIVE AND THEY STILL WANTED TO MOVE FORWARD WITH THE PHASE-2 FACILITIES.
THEY APPROVED THIS IN AUGUST AND WE'RE WORKING ON PPA REVISIONS. THE EXHIBIT IN THE PPA THAT ADDRESSES THE PRICING. ONCE WE HAVE THOSE COMPLETE, THAT WILL REQUIRE THE GOVERNING BOARD APPROVAL.
THAT'S SOMETHING THAT JAVIER WILL BE BACK IN FRONT OF THE BOARD. WE'RE AVAILABLE TO SUPPORT AS NECESSARY TO GET THESE APPROVED FOR THE PPA.
YOU WILL BE SEEING THAT, AGAIN.
AS WE DISCUSSED PHASE 3 WILL LIKELY DOUBLE THE SIZE OF THE FLORIDA MUNICIPAL SOLAR PROJECT.
IT'S GOING TO BE THE SAME PPA STRUCTURE AS PHASE ONE AND TWO. AGAIN, WE HAVE SOME VERY COMPETITIVE PRICING. WE WENT OUT FOR RFP AND RECEIVED SEVERAL RESPONSES. WE HAVE GOOD COMPETITIVE PRICING. IT'S STILL NOT COMPLETELY FINAL. BUT IT IN THE BALLPARK OF 35 TO LESS THAN $40 MEGAWAT HOUR.
AND THAT DEPENDS ON SEVERAL FACTORS.
WE'RE HOPEFULLY GOING TO BE ABLE TO USE TWO DIFFERENT DEVELOPERS THIS TIME. FRP AND ORIGIS PROVIDED US WITH GOOD SITES FOR PHASE 3. HE HOPE IF WE CAN CONTRACT WITH BOTH OF THEM THAT IT WILL KIND OF MITIGATE THE RICK OF HAVING ALL EGGS IN ONE DEVELOPER BASKET.
GIVES US WIDER VARIETY OF FACILITIES ACROSS THE CENTRAL TO NORTHERN CENTRAL PORTION OF THE STATE.
THESE WILL BE ONLINE WITH COMMERCIAL OPERATION IN 2025 AND 2026. IT DEPENDS ON WHICH FACILITIES WE SELECT. WE AREN'T REQUESTING ANYTHING AT THIS TIME. AGAIN, JUST JAVI IS EXTREMELY PROACTIVE WITH A LOT OF THESE THINGS.
AND WANTS TO YOU KNOW MAKE SURE YOU ARE FULLY INFORM.
WELL IN ADVANCE OF WHEN YOU NEED TO MAKE A DECISION.
BUT THE NEXT STEPS THAT WE'LL BE LOOKING AT FOR PHASE ONE THE COMMITTEE ARE GOING TO APPROVE -- WELL THEY ARE GOING TO CONSIDER AND HOPEFULLY APPROVE THE TERMINATION OF RELEASE AGREEMENT.
AND OUR BOARD AND EXECUTIVE COMMITTEE AT FMPA WILL HOPEFULLY REVIEW AND APPROVE THIS AT OUR NOVEMBER MEETING. FOR PHASE 2 WE'RE FINALIZING THE PPA PRICING UPDATE WITH ORIGIS.
THE SOLAR COMMITTEES HAVE APPROVED THIS.
[00:40:02]
BUT IT WILL BE BACK BEFORE YOU FOR YOUR FINAL APPROVAL BEFORE WE CAN MOVE FORWARD. FOR PHASE 3 WE ARE MEETING INDIVIDUALLY WITH THE POTENTIAL PARTICIPANTS.WE'RE SHARING THE CONFIDENTIAL DETAILS WITH THEM ON ONE ON ONE MEETING. WE'VE MET WITH FPUA WITH JAVI AND HIS TEAM. WE'RE LOOKING FOR COMMITMENT FOR MEMBERS IN NOVEMBER AND THAT'S THE SO WE CAN LOCK UP THE PRICES AND MOVE FORWARD AND FACILITY THE NEGOTIATIONS WITH THE DEVELOPERS.
THESE ARE GOING TO BE VERY SIMILAR IN NATURE TO PHASE ONE AND PHASE 2PPA'S. IT WILL BE VERY FAMILIAR TO THOSE OF YOU WHO WILL ALREADY PARTICIPATING.
THERE WON'T BE SURPRISES OR NO TERMS THAT WILL BE WILDLY DIFFERENT. WE'RE HOPING IT WILL BE SMOOTH TO STREAMLINE THE PROCESS.
>> THE GOVERNING BOARD AT THE PARTICIPATING MEMBERS WILL NEED TO APPROVE THEIR PARTICIPATION; AND SPRING OF 2023 TO EXECUTE THE PPA. AND ALL OF THE MEMBERS WILL HAVE TO HAVE THEIR LOCAL GOVERNING BOARD APPROVAL BEFORE THE FMPA BOARD AND EXECUTIVE COMMITTEE WILL APPROVE. ALL OF THOSE THINGS NEED TO FALL IN PLACE FIRST. THE FINAL THING H BE FMPA'S BOARD. THAT'S THE UPDATE OF THE SOLAR PROJECT. AND EVERYTHING THAT'S GOING ON AND THE ACTIVITY THAT HAS LED TO THIS POINT.
AND SOME YOU WILL SEE IN THE FUTURE.
JACOB IS NOW GOING TO DISCUSS SOME SOMETHINGS THAT YOU MAY WANT TO CONSIDER AS YOU THINK ABOUT SOLAR PARTICIPATION IN PHASE 3. IF YOU HAVE ANY QUESTIONS, FEEL FREE AT ANY TIME TO ASK.
SUSAN IS VISITING 10 OR 15 COMMUNITIES.
FOUR LAST WEEK AND FIVE THIS WEEK.
SHE'S TOWN ROAD A BIT. SHE LEADS THE SOLAR EFFORT.
IN TERMS OF GETTING THE COMMUNITIES ONBOARD.
SHE'S THE HEAD OF OUR EXTERNAL AFFAIRS AND PUBLIC RELATIONS. SHE HAS A FEW HATS AND THAT'S WHY WE BEEN TOGETHER ALL DAY TODAY.
I WANT TO TALK WITH YOU ABOUT ONE OF THE THINGS THAT JAVIER MENTIONED WAS HOW MANY MEGAWATTS SHOULD YOU CONSIDER ACQUIRING AND WHAT'S THE THOUGHT PROCESS.
THERE'S SEVERAL THINGS YOU WANT TO CONSIDER WHEN YOU DO THAT. PART OF THE ISSUE IS SOLAR ADDITIONS UNLIKE BIG POWER PLANT.
SOLAR ADDITIONS CAN COME IN SMALL BITE-SIZE INCREMENTS.
YOU HAVE MANY KICKS OF THE CAT.
COMPARE THAT TO TREASURE COAST.
ONE SHOT, 40 YEARS WORTH. TREASURE COAST FACILITY.
300 MEGAWATTS. IT'S A REALLY BIG THING.
AND IT'S DONE ONE TIME AND THEN YOU DON'T DO MANY OF THOSE AT THE TIME. SOLAR CAN BE DONE IN INCREMENTS. THE QUESTION THAT ARE ASKED.
WHAT ARE YOUR POWER SUPPLY NEEDS.
WE'LL GET INTO THAT. THEN COMPARING COST OF SOLAR VERSES NATURAL GAS PLANTS THERE'S A STRAIGHT MATH ISSUE AND THEN THERE'S RELIABILITY ISSUE.
AND WE'LL GET INTO IT. BUT REMEMBER, SOLAR IS AVAILABLE UNDER 30% OF THE TIME IN FLORIDA.
GAS PLANTS THAT YOU COMPARE ARE AVAILABLE 90% OF THE TIME. WE WILL GET INTO ANALOGY THAT DRIVES THE POINT. IT'S AMPLES AND ORANGES IN COMPARISON. THE OTHER THING THAT YOU HAVE TO REMEMBER IS THAT THERE COMES A POINT WHERE ELECTRIC GRID CAN ONLY TAKE SO MUCH OF SOLAR VAR VARIABILITY AND THEN IT ADD A LOT OF COST ON SYSTEM.
YOU CAN MAKE INCREMENTAL ADDITIONS EASILY IN THE SOLAR WORLD. YOU CAN'T IN THESE BIG POWER PLANT FACILITIES. THEY ARE FIXED IN.
WITH THAT, IF WE CAN GO TO THE NEXT SLIDE.
LET'S TALK ABOUT WHAT YOU NEEDS ARE.
FPUA PEOPLE DEMAND 113 MEGAWATS.
THEN YOU HAVE TO ASK YOURSELF WHAT CAN YOU OWN OUTSIDE OF THE FMPA PORTFOLIO.
YOUR PART OF. FIRST OF ALL YOU OWN 13 MEGAWATTS OF THE ST. LUCIE NUCLEAR PLANT.
CONGRATULATIONS. THAT'S A LOW-COST SOURCE.
13% MEGAWAT MAY NOT SEEM LIKE A LOT.
THAT'S A DUDE DEAL. YOU HAVE FAR GREAT PERCENTAGE OF FMPA AS A WHOLE DOES.
CONGRATULATIONS ON THAT. IT'S A WELL-RUN FACILITY.
SUSAN TALKED ABOUT IN PHASE ONE AND TWO.
YOU HAVE 18 MEGAWATS THAT YOU'VE COMMITTED TO FOR THE SOLAR. BETWEEN THOSE TWO YOU'RE AT 31 STARTING THERE. LET'S SAY THE ARP CITIES AS
[00:45:07]
A WHOLE AGREE TO 100 MEGAWATS IN PHASE 3.YOUR SHARE OF THAT IS ESSENTIALLY 10%.
YOU PICKED UP AROUND 10 MEGAWATTS.
THAT LEADS KIND OF MAYBE 3 TO 5 MEGAWATS THAT WE WOULD SAY YOU SUGGEST CONSIDER NOTHING MORE THAN THAT AT THIS LEVEL. FROM FROM ONE% TO 14% OF ENERGY COMING FROM SOLAR BY 2026.
THAT HEY NOT SEEM LIKE A BIG CHANGE.
THEN LAYER ON TOP OF THAT WHAT'S GOING ON WITH NUCLEAR. COMPARED FMPA WE'RE 2% TODAY BETWEEN SOLAR AND OTHER RENEWABLE'S.
YOU WILL BE A LARGER PERCENTAGE IF YOU WERE TO MOVE THAT'S THE NEED PART. IF I SAY, HEY, YOU ARE IN THE 40 TO 45 MEGAWATTS TOTAL BETWEEN THE NUCLEAR AND THE SOLAR, YOU WANT TO CONSIDER AND THE REASON WHY NOT THE GO ABOVE THAT IS SIMPLY THIS.
YOUR MINIMUM LOAD DURING A DAY IS DOWN IN THE 40S.
IF YOU HAVE MORE NUCLEAR AND SOLAR THAN YOU ARE LOW.
WHAT DO YOU DO WITH THE EXTRA? AND ALL OF A SUDDEN YOU GO, BECAUSE THERE ARE TIMES WHEN YOU KNOW A BEAUTIFUL JANUARY DAY, SUNNY AND 60 DEGREE.
THERE'S NO AIR CONDITIONING. THERE'S NO HEATING OR NOTHING. YOU GET 13 FROM ST. LUCIE AND YOU GET IN THE MIDDLE OF THE DAY.
THE OTHER 30 SOME ODD FROM THE SOLAR STUFF.
WHAT DO I DO WITH THE EXTRA. THAT STARTS TO CREATE A PROBLEM. YOU WANT TO THINK ABOUT THOSE TOO. LET'S GO TO ECONOMIC COMPARISONS. AND THE ECONOMIC COMPARISON ARE DONE TWO WAYS. ONE IS JUST THE STRAIGHT MATH. AND SIMPLY PUT, SOLAR AT 35 TO $40 A MEGAWAT HOUR THAT'S 3 AND A HALF CENTS TO FOUR CENTS A KILOWATT HOUR. IF YOU WANTED TO THINK ABOUT IT THAT WAY. COMPARES WITH NATURAL GAS PLANT GENERATION AT TREASURE COAST AT $5 TO 6 MILLION GAS. THOSE ARE ROUGHLY THE SAME IF YOU DO THE STRAIGHT MATH. RIGHT BELOW THERE YOU SHOULD SEE THE CHART. YOU GO BACK AS FAR AS YOU WANT. YOU CAN SEE UP UNTIL 2021 WE WEREN'T ABOVE $4. AND NOW WE'RE IN THIS HIGHER TIME FRAME. PEOPLE CAN SAY RIGHT NOW WE SHOULD GET A BUNCH OF SOLAR BECAUSE IT'S CHEAPER THAN THE 6, 7, $8 GAS. THAT'S TRUE.
THE COUNTRY HAS THE POTENTIAL OF HAVING GAS PRICES BACK IN THE 3 TO $4. BECAUSE WE HAVE THE RESOURCE TO DO IT. IT'S A DECISION YOU MAKE HOW MUCH SOLAR DO YOU WANT TO GO IT COULD BE A GREAT DECISION OR IT COULD BE NOT QUITE AS GOOD AS USING NATURAL GAS.
THOSE ARE THINGS THAT GO ON. THAT'S JUST A STRAIGHT ECONOMIC COMPARISON. OVER THE LAST FIVE YEARS, GAS IS AVERAGED 3.57. GAS WOULD BE CHEAPER FOR A POWER SOURCE. IN GENERAL, BUT THE LAST 1 1/2, THAT EQUATION TURNED AROUND.
STRAIGHT MATH. THE SECOND PIECE TO THE PUZZLE IS RESOURCES AVAILABLE 30% OF THE TIME VERSES RESOURCE THAT'S AVAILABLE 90-PLUS PERCENT OF THE TIME. THERE'S A LOT OF MATH YOU COULD DO. I WILL GIVE YOU FAR SIMILAR EXAMPLE THAT EVERYONE RELATES TO.
SOMEONE SAID I WILL GIVE YOU A CAR.
IT WILL START 30% OF THE TIME.
AND YOU'RE WILLING TO PAY THE SAME PRICE AS THE CAR THAT STARTS 99% OF THE TIME. I DON'T THINK YOU WOULD DO THAT. RIGHT? BECAUSE I WOULD HAVE TO HAVE HOW MANY CARS TO GET TO THE SAME AVAILABILITY AT LEAST THREE AND FRANKLY, IF I TOLD YOU FOR A MOMENT, THAT ONE CAR DOESN'T START, THE OTHER IS BECAUSE THEY ARE POWERED BY THE SAME SUN DON'T START TOO. I CAN NEVER GET THAT SAME KIND OF RELIABILITY. YOU CAN'T SAY, WELL, GEE, GAS IS -- THERE'S A QUALITY DIFFERENCE AND IT'S APPLES TO ORANGES COMPARISON. IT'S SOMETHING TO THINK ABOUT IN TERMS OF YOU COULD --
>> YOU DON'T MIND ME INTERRUPTING.
WHAT YOU ARE TEALING ME BASED ON ANALYSIS.
70% TIME SOLAR DOESN'T PAN OUT.
>> 70% TIME SOLAR DOESN'T PRODUCE ANYTHING.
AND THE NATURAL GAS PLANT FILL IN.
WE'RE RUNNING TREASURE COAST ALL THE TIME.
I WOULD FILL IN. BUT THERE ARE TIMES WHEN YOU DO HAVE SOLAR POWER THAT IT WOULD THEORETICALLY DISPLACE
[00:50:02]
OTHER GAS UNITS AROUND THE SYSTEM.THAT'S RIGHT. >> BUT WE ALL KNOW IN THE MIDDLE OF THE NIGHT AND ON CLOUDY DAYS THERE'S NO SOLAR. CLOUDY TIME PERIODS.
IN THE SUMMER WE ALL KNOW THAT EVERY AFTERNOON WHAT'S GOING TO HAPPEN IN SUMMER DAYS.
YOU WILL GET CLOUDS AND RAIN AND THUNDERSTORMS, WHATEVER.
THIS THING WILL GO FLOP AROUND.
THERE'S TWO DIFFERENT KIND OF ANIMAL.
YOU CAN'T COMPARE PRICE OF ONE TO PRICE OF OTHER WITHOUT TAKING THIS QUALITY DIFFERENCE.
YOU MENTIONED A FEW MINUTES AGO THAT THE SOLAR COULD PRESENT ISSUES TO THE GRID. WHAT IS THAT PART OF THE -- IT'S NOT THERE. WE HAVE TO SHIFT TO USING
GAGS ENERGY. >> THIS GETS BACK TO THE KEY THINGS. WHAT YOU DON'T WANT TO DO IS HAVE TO -- BECAUSE YOU'VE GOT TOO MUCH SOLAR, TAKE A GAS PLANT OFF, BECAUSE THERE'S TOO MUCH SOLAR AND NUCLEAR AND THE ONLY THING THEY CAN GET KICKED OFF IS THE GAS PLANT. THAT'S HARD ON TREASURE COAST. WE DON'T WANT TO TAKE TREASURE COAST OFF. ONCE IT'S ON.
IT RUN UNTIL THE NEXT OUTAGE AND COMES OFF.
THAT'S THE COST THAT STARTS TO ACCRUE.
THE OTHER THING IS. THINK OF IT THIS WAY.
THINK OF THE SUMMER DAY. STARTS OUT NICE AND SUNNY.
WAVES OF CLOUDS COME THROUGH; RIGHT? THAT HAS TO DO THE OPPOSITE. WHEN THE SOME A GOES DOWN THE GAS PLANTS HAVE TO GO UP.
BACK AND FORTH BACK AND FORTH ALL DAY LONG.
THAT COST TO MOVE THE PLANTS AROUND YOU GO OUT TO TREASURE COAST IF YOU SAT DOWN THERE DURING THE MIDDLE OF THE DAY. 270 TO 300 MEGAWATTS FOR 8 TO 10 HOURS AT A CRACK. IF THEY HAPPEN TO DO THIS ALL THE TIME. IT COST MORE.
AND SO THAT'S WHY YOU SAY YOU WANT THAT GET TO POINT YOU DON'T HAVE TO JERK AROUND TO ACTUALLY FORCE PLANTS OFF. I'M SURE THIS IS GOING TO MAKE THE SITUATION MAYBE A LITTLE BIT MORE COMPLICATED THAN REASONABLE RIGHT NOW. LET'S SAY IF YOU BREAK OUT YOUR CRYSTAL BALL WITHIN THE NEXT 20 TO 30 YEARS, WHAT WOULD YOU GUESS THE CHANCES ARE THAT THE COMBINATION OF SOLAR AND ENERGY STORAGE WILL BE COST COMPETITIVE
WITH GAS GENERATION? >> I WISH I KNEW THE ANSWER
TO THAT QUESTION. >> MY GUESS IT'S A LOW CHANCE. BARRING ANY KIND OF REGULATION THAT THERE'S POLITICAL WILL AND SOMEONE GET ELECTED THAT JACKS UP THE PRICE OF ANYTHING.
FOSSIL FUEL. MY GUESS THERE'S A LOW CHANCE. I HAVEN'T LOOKED AT THE STATE OF THE ART FOR ENERGY STORAGE FOR YEARS NOW.
I DON'T KNOW IF WE'VE HAD SIGNIFICANT PROGRESS THERE.
THE FUNDAMENTALS IN THE UNITED STATES TO HAVE NATURAL GAS IN THREE TO $4 PRICE RANGE, THEY HAVEN'T CHANGED. WHAT'S CHANGED IS OUR WILL TO GO DRILL FOR GAS AND OIL AND TO PUT PIPELINES.
THAT CAN CHANGE BACK AND WE COULD BE BACK IN THAT WORLD IN HOW MANY YEARS OUT, I DON'T KNOW.
THEN THE QUESTION, IS STORAGE COST COME DOWN.
WELL, IT'S BATTERY STORAGE. IT'S LITHIUM ION BATTERIES.
ARE THERE DIFFERENT TECHNOLOGIES THAT MIGHT COME OUT. YEAH.
WE'RE -- PEOPLE WILL MAKE BILLIONS IF THEY FIND IT.
I DON'T KNOW WHAT THAT IS. THE THING YOU HAVE TO REMEMBER, THOUGH, IS YOUR PHONES HAVE A BATTERY IN THEM. WE PAY AN AWFUL LOT FOR A VERY SMALL AMOUNT OF BATTERY HERE.
BECAUSE OF WHAT IT ADDS. FOR A CAR, YOU HAVE A MUCH BIGGER BATTERY. YOU PAY A LOT LESS PER UNIT.
THE LAST PLACE THAT BATTERIES ARE GOING TO IMPACT IS GOING TO BE THE ELECTRIC GRID.
THEY ARE COMPETING WITH LOW-COST RESOURCES.
TO ANSWER YOUR QUESTION, IF WE'RE GOING TO GET ELECTRIC VEHICLES ALL OVER. THEY WILL SUCK THE LITHIUM AND MATERIALS NEEDED. AND THE POWER SYSTEM WON'T BE ABLE TO PAY THE PRICES THAT SOMEONE FOR CARS WOULD PAY. YOU'VE GOT SOME INTERESTING CHALLENGES AHEAD. QUESTION.
>> ALL RIGHT. AGAIN THE SIMPLE MATH, JUST TO POINT OUT, IF GAS WAS $3.50.
POWER COST 3 CENTS A KILOWATT HOUR.
SOLAR WON'T COMPETE. IF GAS IS $7 IT WOULD BE ABOVE. WITH THAT SAID, AS WE TALKED
[00:55:05]
ABOUT CERTAIN THINGS. THE MINIMUM LOAD FOR THE COMMUNITY IS 41 MEGAWATTS. DURING THE DAY.NOT MINIMUM LOAD AT NIGHT. AND DURING THE DAY, WHEN -- NICE JANUARY DAY, NO AIR CONDITIONING AND ALL THAT STUFF AND IT'S GOING ON.
YOU GOT 18 MEGAWATTS OF SOLAR.
IF YOU ADD 10 MORE YOU GET TO 28.
13 MORE GETS YOU TO 41. YOU WANT TO SAY, YOU KNOW, YOU DON'T WANT TO CREATE THE CYCLING OF TREASURE COAST AND THE OTHER UNITS. YOU TYPICALLY WANT TO STAY BELOW ABOUT 40% OF PEEK REQUIREMENTS SO THAT GETS YOU TO 46 MEGAWATTS. YOU'VE GOT 3 TO 5 MORE MEGAWATTS YOU COULD PICK UP. YOU GO ABOVE THAT THERE'S THRESHOLDS THAT THE CONSEQUENCES START TO ADD UP ON YOU. YOU WILL BE WELL AHEAD OF ANY OF THE OTHER COMMUNITIES IN ARP IN TERMS OF HOW MUCH SOLAR YOU HAVE ON A PERCENTAGE BASIS.
THERE'S ONLY ONE COMMITTEE THAT HAS MORE THAT'S LAKE WORTH BEACH. LAKE WORTH BEACH ABOUT THE SAME SIZE AS HERE. THEY HAVE 25 MEGAWATTS, NOT 13 AND THEY'VE GOT MORE SOLAR THAN YOU DO.
THEY ARE -- APPROACHING THAT PROPERTY.
NOT AN ARP MEMBER. YOU ARE NOT BEHIND.
THE REST OF THEM ARE MUCH LOWER.
YOU DON'T HAVE TO WORKY ABOUT GEE, WE'RE NOT DOING OUR SHARE IN THE SOLAR WORLD IF THAT'S A CONCERN.
WITH THAT, SUSAN AND I ARE HERE TO ANSWER QUESTIONS THAT YOU HAVE AND GIVE YOU MORE INCITE AND GUIDANCE.
>> AT OUR MEETING WE WERE DISCUSSING SOLAR PANELS ON THE ROOFS AND STUFF LIKE THAT.
I'M NOT TOTABLY ON IS SOLAR WORLD IS GOING IDEALLY IF THEY HAD SMALLER MODULES. I'VE HEARD THE ROOF SYSTEMS FROM TESLA OR WHATEVER KIND OF THING IS THERE, DO YOU
KNOW ANYTHING ABOUT THAT? >> THERE ARE MAKING ADVANCES IN THE ROOFTOP SOLAR. YOU HAVE TO REMEMBER THE PRICE OF POWER HERE 11 TO 12 CENTS A KILOWATT HOUR.
PRICE OF POWER IN CALIFORNIA IN THE SOUTHWEST IS 20-PLUS CENTS A KILOWATT HOUR. THE THINGS THAT MAKE SENSE OUT THERE BECAUSE THEY PAY MORE FOR ELECTRICITY YOU HAVE TO FACTOR THAT IN TO. ROOFTOP SOLAR 3 TO FIVE TIMES AS MUCH AS THE HUGE FIELDS IF.
YOU CAN TIE THEM THROUGH THE GROUND.
YOU ARE NOT PUTTING HOLES IN ROADS AND TRYING TO DOUGH THAT. SOLAR FOLKS CAN DO THAT WELL. THEN THEY HAVE TO WITHSTAND 150-MILE-AN-HOUR WINDS. WE CAN TIE THEM DOWN ON THE
ROAD. >> THESE PANELS THAT ARE BEING BOILT ARE LIKE THE SOLAR FIELDS.
>> THEY ARE THE BIG SOLAR FIELDS.
THEY ARE IN ONE SQUARE MILE KIND OF ACREAGE AT THE CRACK. 75 MEGAWATTS IS 500 ACRES.
CLOSE TO A SQUARE MILE. IT'S A HUGE SWATH OF LAND.
THEY'VE GOT ROWS OF PANELS. YOU'VE SEEN THEM ALONG THE
INTERSTATE; RIGHT? >> IT ALSO SCARES ME BECAUSE OF ALL OF OUR ENVIRONMENTAL YOU KNOW THERE'S SO MANY THINGS THAT GO INTO THIS. IT'S NOT EVEN FUNNY.
>> IT IS. AND AS WE TALKED ABOUT FLORIDA IN INTERESTING CHALLENGE.
WE HAVE POPULATION COMING. THERE'S NOT A LOT OF LAND IN FLORIDA. IT'S NOT LIKE WYOMING OR YOU KNOW PLACES LIKE THAT WHERE YOU GOT A ROT OF LAND AND NO PEOPLE. AS IF PEOPLE COMING ALL OF A SUDDEN THE FIGHT BECOMES WHAT'S MORE VALUABLE.
THEY USE A TON OF LAND. I CAN IMAGINE WE CYE THROUGH THE VILLAGES ALL THE TIME. DRIVE-THRU THAT AREA THERE.
I COULD IMAGINE THE VILLAGES SAY I DON'T WANT ANYTHING TO DO WITH SOLAR PANELS ON THE PROMPT THAT WE WILL PUT 200,000 HOME HAS THE NEXT EVER YEAR.
THAT'S THE CHALLENGE THE STATE HAS TO LIVE WITH.
PLUS KEEP FLORIDA, FLORIDA. FLORIDA HAS GREAT WILDLIFE
[01:00:02]
AREAS. THESE SOLAR FIELDS, HOW MANY YEARS DO WE USUALLY GET OUT OF THEM?>> WE'VE CONTRACTED FOR 20 YEARS.
THE PANELS MIGHT GO LONGER. THEY START GOING DOWN OVERTIME. WE'RE IN THE EARLY STAGES OF KNOWING WHEN YOU SHOULD CHANGE THEM OUT.
ACTUALLY WE'RE TIED UP FOR 20 YEARS.
YOU MAY GET 15 YEARS IN AND REALIZE WE NEED TO CHANGE BECAUSE WE LOST SO MUCH. AND THOSE ARE ISSUES WE WILL
HAVE TO DEAL WITH LATER. >> HAS THERE BEEN ANY MAJOR SOLAR FIELDS THAT BEEN DECOMMISSIONED OR HAVE HAD A MRARJ SCALE PANEL REPLACEMENT.
THERE HAVEN'T BEEN MANY BECAUSE THE BIG FIELDS HAVE ONLY COME ABOUT IN THE LAST TEN YEARS.
AND REALLY, THE LAST FIVE YEARS TO BE HONEST.
THE COST JUST COME DOWN TO THE POINT WHERE WE'RE OUT WEST CERTAIN PLACES WE GO. WE'RE TALKING WINDOWS, I COULD TELL YOU, YES, THERE'S SOME IN THE MIDDLE.
SOLAR PANELS ARE NEWER IN THAT CURVE.
I'M CURIOUS. IT WOULD SEEM TO ME NOW WOULD BE LUCRATIVE TIME TO DO SOLAR FIELDS.
RGBAR WHATEVER IT IS SAID NO WE CAN'T DO IT.
I WOULD THINK THEY ARE NOT ABLE TO ADJUST OR I WOULD THINK THAT WOULD BE LUCRATIVE TIME TO BE IN THIS
BUSINESS. >> IF YOUR COST DIDN'T INCREASE DURING TIME. THE ANSWER WOULD BE YES.
UNFORTUNATELY, THEIR COST HAVE WES KAIT LAD RAPIDLY.
BECAUSE THE WORLD RUNNING THE MATERIALS THAT WE DON'T HAVE THE RESOURCES TO PRO DUTY.
CHINA MAZE A DECISION THEY WOULD BE A LEADER.
THEY HAD LOW COST PANELS. UNITED STATES SAID, THERE'S EMBARGO ON PANELS FROM CHINA.
AND SO 80% OF THE SUPPLY COMES OUT OF CHINA.
THE COST ESCALATED RAPIDLY. IT WILL NOT BE AS LOW COST TO PRODUCE THEM HERE AS IN CHINA.
ALSO, YOU KNOW, THERE'S A LOT OF STEEL, A LOT OF ALUMINUM, A LOT OF MATERIALS, YOU PUT MORE STEEL AND ALUMINUM THAT YOU DO A GAS POWER PLANT.
THE WORLD IS STRUGGLING TO KEEP UP WITH THAT DRAMATIC GROWTH. THE KWOS OF -- COSTS HAVE ESCALATE. IT'S FRANKLY TOO WET SITE.
IT WAS WETLAND. YOU WEREN'T ABLE TO PERMIT.
THEY HAD TO GIVE UP. >> THEY WORKED WITH US.
THEY TRIED TO WORK WITH US. THEY TRIED TO FIND ANOTHER SITE FOR US. IT WOULD HAVE BEEN WITH A DELAY AND ADDED COST. THEN THEY DID EVERYTHING THEY COULD TO GET THAT SITE. BY THE TIME THEY HAD TO CONFIGURE IT TO ACOME INDICATE ALL THE WETLANDS,
THE COST INCREASED SO MUCH. >> ARE WE GOING TO BE INCURRING THE COST. IS THIS A RISK?
>> ONCE WE SIGN THE AGREEMENT.
IT'S NOT A RISK. UNTIL YOU LOCK THE PRICE.
THERE'S NOTHING GUARANTEED. >> GOT IT.
>> SAY TOO FOR EXAMPLE. WE WILL GET INTO THE SPECIFIC NUMBERS. I WILL GIVE YOU DELTA.
PHASE 2 PRICES TODAY ARE PROBABLY $10 MEGAWAT HIGHER THAN EVEN MORE THAN WHAT WE ACTUALLY AGREED TO BACK IN 2019 OR SO. AND THE CURVE HAD BEEN COMING DOWN. NOW IT'S ALL OF A SUDDEN
GOING THE OTHER WAY. >> LIKE EVERYTHING ELSE.
>> LIKE EVERYTHING ELSE. THIS ISN'T JUST A FLORIDA PROBLEM. THIS IS AROUND THE COUNTRY.
YOU KNOW, UTILITIES AROUND THE COUNTRY ARE DEALING WITH HOLY COW THEY ARE UP BY $10 AN HOUR.
THEY COULD KEEP RISING. >> DOES -- IS THERE AN OPPORTUNITY FOR INFRASTRUCTURE SUPPOSEDLY.
THERE'S THIS NEW MONEY FOR INFRASTRUCTURE.
IS THERE ANY KIND OF OPPORTUNITY FOR THIS
PROJECT? >> THE INFLATION REDUCTION ACT PASSED HAD UNIQUE FOR THE MUNICIPALS THE INVESTMENT IN SOLAR FOR LIKE AN FPL, THEY GET A 30% INVESTMENT TAX RED. IN OTHER WORDS THE COST OF THE PLANT REDUCED BY 30% BECAUSE THEY GET TAX CREDIT.
[01:05:02]
IF YOU ARE A MUNICIPALITY UP TO TODAY, WE DON'T PAY TAXES. YOU DON'T PAY TAXES.YOU CAN'T GET A TAX CREDIT. WHAT WE ENDED UP HAVING TO DO WAS NEGOTIATE WITH FPL UNREGULATED SITE THEY WOULD BE COMPETITIVELY BID AGAINST OTHER AND THEY WOULD GIVE US A NUMBER. NOW WHEN THE INFLATION REDUCTION ACT IT WAS APPROVED THE MUNICIPALS CAN GET THE -- WHAT'S CALLED THE DIRECT PAYMENT IN LIEU OF THE TAX CREDIT. THOSE RULES ARE BEING DRAFTED NOW. THEY ARE NOT FINALIZED OR ANYTHING. THAT COULD POTENTIALLY CREATE OPPORTUNITY FOR OWNERSHIP.
THE THING WE HAVE TO WAY IS THE OTHER THING THAT'S NOT INCLUDED IS THE PRIVATE INVESTORS THEY GET ACCELERATED DEPRECIATION BENEFIT.
WE CAN'T GET THAT. WHAT YOU KNOW IS BITTER TO NEGOTIATE WITH THEM. WE DON'T KNOW THE ANSWER.
WE'RE IN THE PROCESS ON THAT ONE.
>> YES. THERE ARE CERTAIN THINGS THAT ARE IN THERE THAT WOULD HELP OUT.
TERMS OF BRINGING COST DOWN. BUT FOR MATERIAL PRICES WES -- PRICES ESCALATING AT THE SAME TIME.
>> I DO SEE WE DON'T WANT TO HOST SOLAR FIELDS.
>> YES. >> WHERE ARE THE SOLAR PANELS GOING TO GO. CAN'T GO ON THE COAST.
WELL, WHAT DOES THAT SAY FOR THE COUNTIES IN THE
INTERIOR? >> THAT'S WHERE THE WILDLIFE
IS. >> I MEAN IF I DID MY MAT CORRECTLY. I THINK YOU SAID 100 MEGAWATTS PER MILE. WE WOULD THREE SQUARE MILES BASICALLY TO MAKE UP WHAT THE TREASURE COAST ENERGY
>> AND OBVIOUSLY THE TREASURE COAST -- THE FOOTPRINT OF THE PLAN ITSELF IS FRACTION OF VERY SMALL
FRACTION OF THAT. >> WHAT IS ROI COMPARISON IN BETWEEN BUILDING A PLANT LIKE THAT VERSES THESE SOLAR
PANELS. >> THERE CAN BE -- THE COST COMPARISON THAT USES SIMILAR ORI.
THEY DON'T FAVOR ONE OR THE OTHER.
IT'S JUST THE FACT IS THE DENSITY OF ENERGY AND SOLAR IS SO SMALL YOU GOT TO USE A LOT OF LAND ON IT.
>> RIGHT. >> AND UNFORTUNATELY IN FLORIDA, YOU DON'T HAVE A LOT OF THE LAND.
>> I KNOW THIS WILL BE YOUR OPINION.
I'M SURE YOU HAVE GOOD REASONS FOR IT.
WHAT WOULD BE YOUR PERFECT MIX OF SOLAR INTO THE PEEK LOAD ENERGY EQUATION. YOU SAID OUR PEEK LOAD IS WHAT 114 MEGAWATTS OR SOMETHING LIKE THAT?
>> 113. >> IDEALLY WHAT SHOULD WE LOOK FOR AS FLORIDA MUNICIPAL UTILITY.
>> I WOULD SAY ON ENERGY BASIS.
ON AVERAGE WHAT'S GOING ON; SOMETHING IN THE 10% RANGE WHERE WE'RE TARGETING IF YOU GOT TO 15, YOU GET ABOVE 15, YOU'RE WALKING INTO A WORLD THAT -- THAT GETS CHALLENGING FOR EVERYBODY INVOLVED.
>> I CAN INTERPRET THAT RESPONSE AS YOU SAYING OKAY IF YOU WERE THE SOLE DECISION MAKER ON PHASE 3, YOU WOULD BE LOOKING TO MIIMIZE YOUR PARTICIPATION
OF PHASE 3 IN OUR POSITION? >> YOU ARE ON A PERCENTAGE BASIS HAVE FAR MORE SOLAR THAN SEVERAL OTHER COMMUNITIES THERE. THERE ARE OTHERS WHO NEED TO CATCH UP. YOU KNOW, I WOULDN'T SAY MINIMIZE. BUT I WOULD SAY BE CAUTIOUS NOT TO BITE OFF TOO MUCH. YOU ALWAYS HAVE ANOTHER KIT TO THE CAT LATER. IT'S NOT LIKE THIS IS TIME.
>> THIS IS NOT THE LAST SOLAR PROJECT YOU HAVE THE
OPPORTUNITY. >> I CAN'T TELL YOU IT WILL BE LOWEST COST. I DON'T KNOW THE ANSWER.
I WILL NOT BE THE LAST PROJECT THAT COMES RENEGOTIATED. PHASE 2 ONE WE HAD.
PHASE 3 IN NEGOTIATIONS ON. THAT'S RIGHT.
>> MADAM CHAIR, WE HAD 18 MEGAWAT HOURS CURRENTLY?
>> AND EACH MEGAWAT CONVERTS TO HOW MANY KILOWATT HOURS?
>> 1,000? >> NO -- WELL IT'S 1,000, BUT THEN DIVIDE BY 3 BECAUSE YOU ONLY GET IT A THIRD OF THE TIME. AND THEN TIMES 8,760 HOURS
[01:10:05]
IN THE YEAR. >> WAIT A MINUTE.
70% OF THE TIME YOU GET NOTHING.
30% OF TIME YOU GET EVERYTHING.
>> 70% WE HAVE NOTHING. BUT FOR EACH 1,000 KILOWATT HOURS WE DO GET, ONLY 30% OF THE TIME THAT WILL RUN HOW
>> 1,000 KILOWATT HOURS. DEPENDS ON THE LOAD OF THE HOME. I'M JUST THINKING TO MYSELF.
WHEN WE HAD HEAT OF THE SUMMER.
SOME OF THE INDIVIDUALS HAD 2500 KILOWATT HOURS.
AND WE'RE TALKING ABOUT ADDING 3 MORE KILOWATT HOURS. WE MIGHT EVEN RUN HOME.
YOU HAVE 70% CHANCE OF BEING KILLED WHEN YOU GO TO WORK.
I DON'T BELIEVE I WOULD GET OUT OF BED.
I THINK WE GOT ENOUGH SOLAR UNTIL THEY CAN MAKE IT A LITTLE BIT MORE EFFICIENCY. THAT'S JUST MY THINKING
RIGHT NOW. >> I LIKE WE HAVE THREE SQUARE MILES IN THE MIDDLE OF THE STATE.
UPROOTING OUR NATIVE ANIMALS AND THINGS OF THAT NATURE.
BUT WE SHOULD BE IN THE MARKET FOR ANYTHING MORE THAT'S ONLY GOING TO NOT WORK 70% OF THE TIME.
>> THERE ARE A FEW THINGS. LIKIST GOING TO ASK TOO.
WE THOUGHT ABOUT PARTNERING WITH SOME NURSERIES OR BEING ABLE TO PUT SOME OF THESE IN WHERE THEY ARE GROWING PLANTS AND THAT KIND OF THING.
BECAUSE I DO KNOW THAT IT ACTUALLY IS SUPPOSED TO BE COOLER UNDERNEATH SOME OF THESE.
ONE PERSON TOLD ME ITS HOTTER.
THEN COME TO MIND OUT, YOU CAN ACTUALLY HAVE GARDENS UNDERNEATH. I DON'T KNOW, OBVIOUSLY, YOU CAN'T REALLY -- THAT'S KIND OF A PAIN TO TARGET ALL OF THESE. BUT MAYBE LARGER SITES OF LAND THAT PARTNERING UP WITH GROVES OR YOU KNOW --
>> THE STRUGGLE IS WHEN YOU DO EXTREMELY LARGE AREAS LIKE THIS THEY ARE BASICALLY A MANUFACTURERING PROCESS.
AS THE PANELS ARE SOMEHOW YOU HARVEST SOMETHING IN
BETWEEN. >> GROW YOUR TOMATOES.
>> THEORETICALLY IT WOULD WORK.
MOST PEOPLE WILL GO I'M NOT SURE -- WE HAVEN'T SEEN THAT. THERE WERE IDEAS LIKE HAVING GOATS GO THROUGH AND MOW THE GAS UNTIL THEY JUMPED ON THE PANEL AND BROKE THE PANELS. WOULD JUST BE INTERESTING TO TEST SOME OF THESE THINGS YOU HEAR ABOUT.
>> THEY ARE TRYING TO FIGURE THAT OUT.
EACH AREA HAS DIFFERENT OPPORTUNITIES.
WHAT OTHER SOURCES OF ENERGY ARE WE LOOKING AT OTHER THAN
SOLAR. >> EVERY YEAR WE HAVE STRATEGIC PLANNING PROCESS. WHAT WE DO THAT IF FEBRUARY.
WILL KICK OFF WE DON'T NEED A LOT OF POWER UNTIL THE 2030, 2035 TIME FRAME. WE'RE AT THE POINT WE NEED TO MAKE DECISIONS BECAUSE A LOT OF THE BIG CONSTRUCTION TAKES TEN YEARS TO PERMIT CONSTRUCT.
IF YOU DO NUCLEAR PLANT I WOULD TELL YOU 15 YEARS FROM TODAY. WE WILL PUT EVERYTHING ONTHE BOARD. IT WILL BE OUT IN 2035 STANDPOINT. SMALL MODULE OF NUCLEAR REACTORS. OBVIOUSLY, IF FPL EVER SAID THEY WANTED TO EXPAND TURKEY POINT, WE HAVE THE RIGHT TO TAKE SO MUCH POWER FROM THAT FACILITY.
THAT WAS NEGOTIATED IN. IF THEY EVER DID THAT.
THERE'S BEEN TALK OF THAT. GAS PLANTS, UNFORTUNATELY, IN FLORIDA WIND DOESN'T MAKE SENSE BECAUSE THE ONLY WIND WE HAVE IS WHEN WE DON'T WANT IT WHICH IS HURRICANES.
THE SOUTHEAST IS NOT A GOOD PLACE FOR WIND.
IF WE WERE IN TEXAS, THROUGH THE DAKOTAS, GREAT.
THE WIND GOES BUT NOT HERE. WE'RE TIED TO GAS.
AND WE CAN LOOK AT NUCLEAR AND TRY TO MOVE THAT BALL.
WHICH MAY BE A WISE THING TO DO.
BUT IT'S A 15 TO 20-YEAR PROCESS TO GET THERE.
[01:15:03]
INTERESTING POINT ANT NUCLEAR.WHEN YOU THINK ABOUT IT, WE CAN BUILD A NUCLEAR PLANT ON A SMALLER PIECE OF PARCEL THAN DOING A LOT OF VIOLENCE TO OUR NATIVE PROPERTY. PUTTING ALL THE SOLAR PANELS OUT THERE. WHY HASN'T THERE BEEN A NEW NUCLEAR PLAN PERMITTED IN THE LAST 20 YEARS.
THERE HAVE BEEN A FEW OF THEM.
THE NEW ONE IS GOING ON IN GEORGIA.
TWO BRAND-NEW UNITS PERMITTED.
COSTOVER RUNS OF 3-X. 3 BILLION ENDED UP BYING 10 BILLION EFFORT. IT TACK THE CHALLENGE IN THE UNITED STATES IS NOT THE NUCLEAR TECHNOLOGY.
THERE'S A REGULATORY REGIME ON NUCLEAR PLANTS IN THIS COUNTRY THAT DRIVES YOUR COST OUT OF THIS WORLD.
I CONTRAST THAT WITH NUCLEAR FACILITIES WHICH SHOW UP IN MOST MAJOR PORTS IN THE UNITED STATES QUITE REGULARLY. THEY ARE CALLED SUBMARINES AND AIRCRAFT CARRIERS THAT HAVE NUCLEAR GENERATOR ON THEM. THEY DON'T HAVE THE SAME REQUIREMENTS. IT CAN BE DONE VERY SAFELY.
COST EFFECTIVE AND ALL THAT. IT'S A MATTER OF, AGAIN, DO WE SAY, HEY, IF WE WANT TO DEAL WITH CO2 AND THAT THE
BEST ANSWER IS NUCLEAR. >> IT IS THE WISEST
DECISIONS. >> BUT IT TAKES A CHANGE IN ATTITUDE. FRANCE, 70% OF ELECTRICITY COMES FROM NUCLEAR. IT CAN BE DONE.
AND IT CAN BE DONE SAFELY. BUT IT'S A CHANGE IN THE WAY WE THINK ABOUT IT. MADAM CHAIR, ARE WE MAKING A DECISION TODAY? DO YOU WANT A DECISION
TODAY? >> THE DECISION TODAY -- THAT'S A GOOD QUESTION.
THE RECAP FOR WHAT WE ARE LOOKING AT TODAY IS THE PORTION THAT WE HAVE FOR PHASE 3 PART OF ARP IS 110 MEGAWATTS. DO WE WANT ADDITIONAL MEGAWAT HOURS OUTSIDE OF THE ARP.
WE SLATED OURSELVES FOR 3 OR FIVE.
IT WAS HIGHER A COUPLE OF MONTHS AGO.
AFTER THE DISCUSSION AND GETTING MYSELF UP TO SPEED WHERE WE WERE WITH SOLAR, WE KNOCKED THAT NUMBER DOWN.
REALLY IT'S UP TO THE BOARD. DO YOU WANT TO GET INTO MORE SOLAR. DOESN'T SOUND LIKE YOU DO.
>> REFRESH MY MEMORY. WHAT DO WE HAVE?
>> WHAT DO WE NEED? >> I THINK WE 3 MEGAWATTS IN PHASE ONE WHICH WILL BE REDIRECTED TO PHASE 3.
AND WE HAVE LET'S SEE 15 IN PHASE 2.
BOTH OF THOSE AGREEMENTS WERE SIGNED IN 18 AND 19.
FOR PHASE 3, WE WOULD TAKE OUR SHARE OF THE ARP, WHICH WOULD BE APPROXIMATELY 10 MEGAWATTS.
AND THEN INDIVIDUALLY, WE CAN GO FOR MORE SOLAR IF WE SO DESIRE THE BOARD SO DESIRES TO DO THAT.
>> YOU ADD UP THOSE; RIGHT? >> JUST THE SOLAR.
I'M SORRY MADAM MAYOR. WE WOULD BE AT 28.
I'M SORRY. 28 AND THEN IF YOU ADD THE 3 TO 5, WE WOULD BE 31 TO 33 FOR JUST SOLAR.
>> AND THE NUMBER WE DON'T WANT TO GO ANYWHERE NEAR IS
>> BUT I'M NOT INCLUDED THE 13 MEGAWATTS FROM THE NUCLEAR PLANT. OUTSIDE OF GAS GENERATION WHAT WE ARE TALKING ABOUT HERE.
>> WE HAVE PARTIAL NUCLEAR. VERY GOOD QUESTION.
>> THE OTHER PART OF THIS, DO WE WANT TO HAVE MORE INDIVIDUALLY AS PART OF PHASE 3? ALSO I THINK IT'S IMPORTANT FOR THE BOARD TO KNOW THAT THIS IS 20-YEAR AGREEMENT. YOU EFFECTIVELY COMMIT TO
20-YEAR SOLAR PROJECT. >> AND WE'VE COMMITTED 20 YEARS FOR THE 13 AND THE 18; IS THAT CORRECT?
>> OR AT LEAST THE 18. >> AT LEAST THE 18.
>> 13 ON 40 YEARS AND YOU WOULD LOVE IT TO BE 60
YEARS. >> WE WON'T TELL THEM IT'S
>> IT'S 28 PLUS 3 TO 5. >> 3 TO 5 IF THE BOARD DESIRES TO ADD MORE, BUT IT SOUNDS LIKE FROM THIS
[01:20:01]
DISCUSSION TODAY. >> THE PHASE 3 TEN.
THAT'S SOMETHING WE LOCKED IN.
THAT'S SOMETHING THAT WE'RE DOING BECAUSE WE'RE PART OF THE ALL REQUIREMENTS PROJECT; YES.
>> I THINK WE'VE GOT ENOUGH SOLAR RIGHT NOW UNTIL WE CAN
GET -- >> ENOUGH WITH THE 3 TO 5.
>>> I'M RECOMMENDING. >> WHY PURCHASE SOMETHING MORE THAT'S NOT GOING TO WORK FOR US 70% OF THE TIME.
>> I THINK WE'VE GOT ENOUGH. AND LET'S SEE.
WE'VE -- THE SOLAR WE HAVE RIGHT NOW HAS BEEN IN PLACE FOR HOW LONG? ABOUT TEN YEARS?
>> 2020. >> THERE'S A LOT OF UNKNOWN AS ABOUT THE PANELS, WHEN THEY WILL BE REPLACED.
JUST A LOT THERE THAT I THINK WE NEED TO SIT BACK AND OBSERVE. AND MAKE MAYBE A DECISION LATER ON. THAT IS KIND OF THE BEAUTY ABOUT THE SOLAR. WE DON'T HAVE TO KEEP BUYING IN ORDER TO BUY MORE LATER TODAY.
>> DO IT INCREMENTAL. >> WE NEED TO HOLD TIGHT ON
WHAT WE HAVE. >> WHAT'S THE PROPOSITION
FOR 3 TO 5. >> I THINK IT WAS A DECISION MADE BY I WAS HERE. I'M NOT SURE -- I THINK PART OF IT OUR GROWTH -- WE WERE GOING TO CONTINUE TO GROW OUR LOAD. AS FPUA CONTINUES TO GROW.
OUR LOAD WILL INCREASE. MAYBE WE CAN EVALUATE ADDITIONAL SOLAR. I THINK THEY MAY BE WHERE
THE INDIVIDUAL SOLAR -- >> WE WOULDN'T UPSET A GRAND PLAN IF WE DIDN'T DO ANY ADDITIONAL FPUA?
>> NO, I DON'T THINK SO. THAT'S FMPA DID TO SEE WHAT INTEREST THEY HAVE. AND AS THE JACOB MENTION FPUA IS PART OF THE ONE OF THE BIGGER PARTICIPANTS IN
THESE PROJECTS. >> AND WE WILL BE WITH THE
>> WITH 28. ON A PERCENTAGE BASIS YOU'RE ONE OF THE BIGGEST ON THE PERCENTAGE BASIS.
YES. THEY HAVE SOME -- THEY HAVE CONSIDERATIONS THAT ARE VERY DIFFERENT.
>> AND THEY DON'T HAVE ANY NUCLEAR.
>> THEY HAVE NO NUCLEAR. >> THEY DON'T HAVE NUCLEAR.
WHICH IS BLESSING FOR YOU ALL.
>> YEAH. >> I DEFINITELY AGREE.
I THINK THE 10 IS WHERE IT SOUNDS LIKE WE ALL ARE.
>> SO, AS A MILLENNIAL, THE MOTION SAY LET'S GO 100% SOLAR. AND THEN WHEN WE DON'T HAVE IT AVAILABLE WE'LL JUST RIDE STATIONARY BIKES THAT
PRODUCE ELECTRICITY. >> ALL OF US.
>> >> AFTER HEARING THE EXPERTS THE BEST FOR OUR COMMUNITY, I THINK THAT WE'RE ALREADY PRETTY AGGRESSIVE WITH WHAT WE HAVE NOW.
THERE'S NO REASON TO TRY TO INCREASE THAT.
>> I AGREE. DO WE NEED A MOTION.
>> NO, MA'AM. JUST DIRECTION FOR ME WHEN I GO BEFORE THE FPUA I CAN TRANSLATE THAT OVER TO A
>> THANK YOU SO MUCH. >> THANK YOU.
>> YOU HAD VERY GOOD QUESTIONS AND A VERY WISE DELIVERY. WE APPRECIATE YOUR EFFORTS.
>> THAT'S A GOOD PRESENTATION.
>> I UNDERSTAND MORE ABOUT IT NOW THAN I DID A YEAR AGO. THAT'S FOR SURE.
>> THANKS FOR YOUR GUIDANCE. >> LSHT.
I HAVE NOTHING FOR THE BOARD TODAY.
I DO WANT TO THANK JACOB AND SUSAN AGAIN FOR VISITING WITH US TODAY. THEY'VE HAD BUSY DAY HERE AT FPUA. THANK YOU FOR YOUR TIME.
I HAVE NO OTHER COMMENTS. >> MR. ATTORNEY?
[L. COMMENTS FROM BOARD MEMBERS:]
>> NO COMMENTS. >> ANY OF THE BOARD MEMBERS
HAVE ANYTHING? >> I JUST -- JACOB GAVE HIS PRESENTATION TO EDC TODAY. IT WAS REALLY, REALLY WELL RECEIVED. AND I THINK PEOPLE WERE KIND OF SHOCKED BECAUSE IT WAS A LOT OF FACTS DELIVERED.
AND PEOPLE -- I THINK PEOPLE CAN UNDERSTAND WHAT THE SITUATION IS RIGHT NOW. IF IT'S OKAY, I WOULD LIKE TO HAVE THAT PRESENTATION SHARED WITH ME; THE POWERPOINT IF THAT'S OKAY. MAYBE THE OTHER BOARD
MEMBERS WOULD LIKE IT TOO. >> I CAN MAKE SURE THE OTHER BOARD MEMBERS FOLLOW U
* This transcript was compiled from uncorrected Closed Captioning.