[MEETING TO ORDER]
[00:00:11]
>>> GOOD AFTERNOON, IT'S NOW 4:00 P.M., AND I WOULD LIKE TO CALL TO ORDER THE REGULAR MEETING OF THE UTILITY BOARD FOR AUGUST 20, 2024. PLEASE JOIN US IN STANDING FOR THE INVOCATION LED BY CHRISTOPHER FOGEL AND THE PLEDGE OF
ALLEGIANCE, PLEASE. >> GRACIOUS, HEAVENLY FATHER, WE THANK YOU FOR THIS DAY, LORD. WE JUST THANK YOU FOR THESE PUBLIC SERVANTS THAT GIVE OF THEIR TIME TO SERVE THIS COMMUNITY. SO FATHER, WE JUST PRAY THAT YOU WOULD FILL THEM WITH GODLY WISDOM AND SPIRITUAL DISCERNMENT IN ALL THE DECISIONS THEY MAKE ON BEHALF OF THE AUTHORITY. FATHER, WE PRAY FOR OUR COMMUNITY. WE PRAY FOR THOSE MEN AND WOMEN AND FAMILIES THAT STRUGGLE RIGHT HERE IN OUR COMMUNITY TO GET BY DAY TO DAY. LORD, THAT YOUR GRACE AND MERCY WOULD POUR OUT ON THEM SO THEY CAN KEEP THE ELECTRIC ON, SO THAT THEY CAN PUT FOOD ON THEIR TABLE. WE HAVE A BEAUTIFUL COMMUNITY, FATHER, AND YOU HAVE BLESSED US WITH IT. WE THANK YU FOR THE BLESSINGS YOU HAVE PUT ON THIS COMMUNITY. WE PRAY FOR THE CANDIDATES TODAY, LORD, AND THEIR FAMILIES. PUT A HEDGE OF PROTECTION AROUND THEM, LORD, FOR IT'S A DIFFICULT TIME IN THIS COUNTRY TODAY TO ANNOUNCE THAT YOU'RE GOING TO RUN FOR PUBLIC OFFICE. SO THEY RISK A LOT OF RIDICULE AND CHASTISEMENT, BUT LORD, WE JUST ASK A SPECIAL BLESSING OVER THEM. FOR LORD, WE PRAY THEIR HEARTS ARE THERE TO SERVE. AND LORD, YOU CAME TO SERVE, NOT TO BE SERVED, AND SO LORD WE JUST GIVE YOU THANKS AND PRAISE FOR THIS BODY HERE TODAY THAT MEETS. AND WE JUST PRAY GOD'S BLESSING OVER OUR COMMUNITY, OVER OUR COUNTRY, AND ALL GOD'S CHILDREN SAID --
>> 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.
>> YOU MAY BE SEATED. MADAME CLERK, WILL YOU PLEASE CALL THE
>> YES, MA'AM. >> MRS. GIBBONS?
[A. SET THE AGENDA]
>> PRESENT. >> LET THE RECORD REFLECT WE HAVE A QUORUM PRESENT. THE NEXT ITEM IS SETTING THE AGENDA, DO
>> I SECOND. >> MADAME CLERK, WILL YOU
PLEASE CALL THE ROLL? >> MR. FEE?
>> YES MA'AM. >> MRS. GIBBONS?
>> YES MA'AM. >> MRS. BENNETT?
>> YES MA'AM. >> IF THERE IS ANY MEMBER OF THE PUBLIC THAT WOULD LIKE TO COME FORWARD AND SPEAK, YOU MAY SO DO SO NOW. WHEN YOU COME, PLEASE STATE YOUR NAME AND ADDRESS FOR THE RECORD. YOU WILL HAVE THREE MINUTES TO
[C. APPROVAL OF MINUTES]
ADDRESS THE BOARD. SEEING NO ONE HAS COME FORTH, I WILL NOW CLOSE THE PUBLIC COMMENTS AND MOVE TO THE APPROVAL OF THE MINUTES FOR AUGUST 6, 2024. DO I HAVE A MOTION?>> MOVED TO APPROVE THE MINUTES.
>> SECOND. >> MADAME CLERK, WILL YOU
PLEASE CAL THE ROLL? >> MR. FEE?
>> YES MA'AM. >> MRS. GIBBONS?
[D. CONSENT AGENDA]
>> YES MA'AM. >> MAYOR HUDSON?
>> YES MA'AM. >> MRS. BENNETT?
>> YES MA'AM. THE MOTION PASSES. THE NEXT ITEM IS THE CONSENT AGENDA, ARE THERE ANY ITEMS THE BOARD WOULD LIKE TO PULL FOR DISCUSSION ON THE CONSENT AGENDA OR DO I HAVE A
>> SECOND. >> MADAME CLERK, WILL YOU
PLEASE CALL THE ROLL? >> MR. FEE?
>> YES MA'AM. >> MRS. GIBBONS?
[E.1. Status Report on Electric Power Cost Adjustment (PCA) June 2024]
>> YES MA'AM. >> MAYOR HUDSON?
>> YES MA'AM. >> MRS. BENNETT?
>> YES MA'AM. WE WILL NOW CONVERT TO THE REGULAR AGENDA.
I WOULD NOW TURN IT OVER TO MR. CISNEROS.
>> GOOD AFTERNOON MADAME CHAIR, BOARD MEMBERS. TODAY THERE'S ONLY ONE ITEM ON THE AGENDA. IT'S AN UPDATE ON THE POWER COST ADJUSTMENT. BARBARA MIKA WILL PRESENT THIS ITEM.
>> THANK YOU, MR. CISNEROS. GOOD AFTERNOON MADAME CHAIR AND
BOARD MEMBERS. >> GOOD AFTERNOON.
>> I HAVE THE INFORMATION UPDATE ON THE STATUS OF THE POWER COST ADJUSTMENT FOR JUNE OF 2024 WITH THE UPDATED TABLES AND CHARTS WITH FMPA'S JUNE PROJECTIONS AND THE CONTINUED
[00:05:04]
REPORTING ON THE NEW APPROACH TARGETING THE MORE SUSTAINABLE RATES OF STABILIZATION FUND AND ASSESSING THE PCA OVER A LONGER PERIOD OF TIME, OVER 12 MONTHS. THIS TABLE SHOWS THE QUARTERLY IMPACT OF THE PCA FOR THE PAST 24 MONTHS AND THE CUMULATIVE BALANCE OF THE OVER -- OR UNDER RECOVERY OF OUR RESTABILIZATION . SO IT WAS JUS TWO YEARS AGO IN THE SUMMER OF '22 WHERE WE HAD A -- THE PCA WAS NEGATIVE AND WE WERE WORKING INTO OUR OPERATING CASH AND FUNDS THEN. AND IT TOOK UNTIL THE SECOND QUARTER OF 2023, ALMOST A YEAR, TO RETURN TO A POSITIVE RESERVE. SO NOW WE ARE FOCUSSING ON MAINTAINING THE TARGETED RESTABILIZATION FUND AND AVOIDING ANY IMPACT ON OUR DAYS OF OPERATING CASH. SO DURING JUNE, WITH THE AVERAGE COST OF PURCHASE POWER ABOUT $5.50 GREATER THAN IT WAS IN MAY AND A PCA OF ZERO. THE QUARTERLY OVER RECOVERY AMOUNTED TO ABOUT $147,000, WHICH BRINGS THE YEAR TO DATE AT THE END OF JUNE TO $9.7 MILLION IN THE PCA. AND I'D LIKE TO ADD A COMPARISON POINT FOR THE NINE MONTHS TO DATE, LOOKING BACK FROM 2024 BACK TO 2023, THE TOTAL KILOWATT HOURS IN ENERGY PURCHASED IS ABOUT 1.3% LESS THIS YEAR THAN IT WAS LAST YEAR. AND THOSE COST -- THE COST OF THOSE PURCHASES ARE ABOUT 20% LESS THAN THEY WERE A YEAR AGO. FOR THE MONUMENTS TO DATE. THIS CHART TRACKS THE CUMULATIVE BALANCE OF -- MONTH BY MONTH BALANCE OF THE ACTUAL AND PROJECTED POWER COST ADJUSTMENT RECOVERY. AND THAT'S SHOWN IN RELATION TO THE POWER COST ADJUSTMENT, WHICH IS THE BLUE LINE THAT GOES ACROSS THE CHART. SO THIS PROVIDES A TWO-YEAR LOOK BACK, AGAIN, TO THAT SUMMER OF 2022 AND THE LOOK FORWARD, YOU KNOW, ONE YEAR TO JUNE OF 2025. THE BLUE BARS ARE ACTUAL RESULTS AND THE ORANGE BARS SHOW THE PROJECTED LEVEL THROUGH JUNE OF 2025 WITH THE CURRENT FORECAST THAT WE HAVE FROM FMPA. SO LOOKING BACK WHEN WE FIRST BEGAN PRE-PURCHASING NATURAL GAS BACK IN MAY OF 2023, WE HAD A PCA, WHICH IS THE -- THAT DARK BLUE LINE, ABOUT $34. MARK IT HERE. ABOUT $34 IN HERE, IN APRIL, MAY OF 2023. AND AT THAT POINT WE HAD A CERTAINTY OF ABOUT 75% OF OUR CALL COSTS ALLOWING FOR -- ALLOWING US TO THEN GLOW OUR RATE STABILIZATION FUND THROUGH 2023 INTO THIS CURRENT YEAR OF 2024 THROUGH -- OVER MARCH -- THROUGH MARCH AND APRIL WHILE THE PCA WAS LOWERED JUST $5 FROM MAY TO JUNE OF LAST YEAR. FMPA'S ESTIMATE OF THE COST OF PURCHASES FOR THE UPCOMING 12 MONTHS REMAINS LEVEL 1.8% OF AN INCREASE FROM MAY INTO JUNE. AND THE UPCOMING 12 MONTHS AVERAGE FOR THE COST OF 1,000 KILOWATT HOURS SOLD IS PROJECTED TO BE $77.51. THE AVERAGE COST FOR THAT 1,000 KILOWATT HOURS SOLD FOR NEXT YEAR IS PROJECTED TO BE ABOUT 7.7% HIGHER IN 2025 THAN THE PROJECTION FOR THIS YEAR. THIS IS THE RATE STABILIZATION TARGET. THE LONG-TERM PROJECTION WITH THE BLUE BAR GOING ACROSS IS THAT TARGETED BALANCE. THE VERTICAL BLUE LINES ARE THE MARKERS FOR THE -- WHERE THE CHANGES IN THE PRE-PURCHASING PERCENTAGES WERE ADJUSTED IN THE APRIL '24 AND APRIL '25. THE GREEN AND ORANGE LINES, WHICH YOU PROBABLY CAN'T SEE TOO WELL, BUT YOU CAN SEE ON THIS CHART OVER HERE THAT THERE'S TWO SCENARIOS THAT THEY'RE SO CLOSE THAT THEY'RE LYING ON TOP OF EACH OTHER PRACTICALLY. THE GREEN LINE IS KIND OF WHAT WE HAVE BEEN -- I PRESENTED LAST MONTH. WE THOUGHT WE'D ADD ANOTHER SCENARIO, BUT THAT'S THE, YOU KNOW, MAINTAINING OUR NEGATIVE $3 PCA THROUGH DECEMBER, LOWERING IT[00:10:03]
TO $1.50 AND THEN IN JANUARY LOWERING IT TO ZERO. SO WE THOUGHT, WELL, IF WE -- WE WANT TO HEAD BACK TO THAT ZERO POINT. BUT IF WE DID IT SOMETHING A LITTLE BIT MORE GRADUAL, THE ORANGE LINE, WHICH YOU CAN SEE BETTER BECAUSE IT'S BRIGHTER, LOWERS THAT NEGATIVE $3 OR RAISES IT ACTUALLY TO $2 -- NEGATIVE $2 IN DECEMBER, AND THEN NEGATIVE $1 IN JANUARY, BRINGING IT TO ZERO IN FEBRUARY. SO AS CLOSE AS IT IS, THE GREEN LINE IS JUST A LITTLE BIT AHEAD BECAUSE IT BRINGS IT BACK TO ZERO A MONTH EARLIER, MONTH SOONER. SO WITH THE CONSIDERATION TO THESE NEAR -- THE NEAR AND FUTURE PROJECTIONS AND THE NEGATIVE PCA AND THESE ADJUSTMENTS IN THESE PRE-PURCHASED FOR GAS THAT ARE PRESENTED, WE ARE AT THE CURRENT TIME NOT, YOU KNOW, PRESENTING MAKE ANY CHANGE NOW AND THEN IN THE FUTURE IF PROJECTIONS CHANGE, WE WILL HAVE THE OPPORTUNITY TO COME BACK AND GIVE YOU UPDATES AND PRESENT IT AGAIN. RIGHT NOW IT'S STATUS QUO. THIS IS JUST -- IT'S PRETTY MUCH WHAT IT WAS LAST MONTH. IT'S NOT REALLY MOVED VERY MUCH. BUT IF YOU HAVE ANY QUESTIONS ON THIS PRESENTATION, I'D BE HAPPY TO ADDRESS THEM.>> MADAME CHAIR, I'D LIKE TO ADD A COUPLE THINGS. I BELIEVE THE MIDDLE SECTION, NOW IT IS GREATER THAN 50%. I THINK WE'RE CLOSER TO 70% BASED ON THE ACTIONS THAT THE FMEA BOARD HAS TAKEN OVER THE LAST MONTH OR SO. SO WHAT BARBARA IS PRESENTING IS THE DATA FROM JUNE. SINCE THEN WE'VE HAD OTHER TRANSACTIONS. IN ADDITION TO THAT, THERE WERE SMALL STRIPS OF GAS IN THE 2025/'26 RANGE, JODY, IF I REMEMBER CORRECTLY. SO WE ARE -- SO FMPA HAS INCREASED THOSE PERCENTAGES FURTHER OUT. SO WE'RE ALMOST AT A TWO-YEAR WINDOW OF PRE-PURCHASED AT DIFFERENT LEVELS. I THINK IN 2026 WE'RE AT 15%, 20%, SOMEWHERE IN THAT RANGE. SO ONE OF THE QUESTIONS, I BELIEVE IT WAS MR. LAMMERS OR MRS. GIBBONS HAD ASKED, IF WE CAN TAKE THAT $10 MILLION AND LOWER IT. WE ARE DEFINITELY GETTING INTO THE PERCENTAGES THAT WITH CAN PREDICT THAT RATE MUCH MORE COMFORTABLY. I STILL THINK $10 MILLION FOR RIGHT NOW IS THE APPROPRIATE -- APPROPRIATE LEVEL UNTIL WE HAVE, YOU KNOW, ANOTHER SIX MONTHS OR SO OF SEEING HOW THIS PRE-PURCHASE OF GAS PRICES, HOW THAT SHAKES OUT, BUT THERE IS THE POTENTIAL OF LOWERING THAT FROM TEN TO EIGHT, SOME NUMBER THAT WOULD BE SMALLER. FOOD FOR THOUGHT TO CLOSE THE LOOP ON THE CONVERSATIONS WE'VE HAD ONE ON ONE.
>> SO MR. CISNEROS -- AND WE'VE SPOKEN A COUPLE OF TIMES ABOUT THE GENERAL CONSENSUS OF ALL OF THE FMPA MEMBERS AS IT RELATES TO PRE-PURCHASED GAS, HAS THERE BEEN A CHANGE IN THAT GENERAL CONSENSUS? DO STILL HAVE SIZABLE UTILITIES WHO ARE FAIRLY MUCH AGAINST IT, OR IS IT STARTING TO MOVE TOWARDS MOST BEING IN FAVOR OF PRE-PURCHASED?
>> I THINK THE GENERAL APPROACH HAS BEEN TO NOT BEAT THE MARKET BUT TO STABLE -- TO IDENTIFY PREDICTABILITY. WHAT NUMBER WOULD IT TAKE TO IDENTIFY A STABILIZED, A WHOLESALE POWER TO ALL THE MEMBERS. I THINK THEY HAVE SHIFTED TOWARDS THAT PHILOSOPHY, RATHER THAN SOME PEOPLE TRYING TO BEAT THE MARKET AND SOME PEOPLE TRYING TO, YOU KNOW, NOT PUT THE MARKET INTO -- MAKE THE MARKET PART OF THEIR EQUATION. I THINK THERE'S SHIFTING TOWARDS THAT. JODY, I DON'T KNOW IF THAT'S -- IF THERE'S ANYTHING ELSE YOU'D LIKE TO ADD.
>> I THINK THAT'S FAIR JAVY. AND THE PRE-PURCHASED GAS CONTRACTS HAVE FIVE-YEAR -- THEY'RE 30-YEAR DEALS, BUT THEY HAVE FIVE-YEARS. THERE'S A RESET PERIOD. WHEN THAT RESET HAPPENS THEY HAVE TO ACHIEVE A CERTAIN MINIMUM DISCOUNT. BUT THE FIRST ONE IS UP, AND THEY'VE ACTUALLY SAID WELL, IF YOU EXTEND IT, SINCE WE WORKED ALL FIVE YEARS,25 YEARS LEFT.
IF YOU EXTEND IT BY ANOTHER FIVE YEARS, WE CAN UP THE DISCOUNT FOR YOU AGAIN. SO THERE'S ACTUALLY GOING TO BE A POLICY CHOICE ON THE AGENDA FOR THIS WEEK FOR THE FMPA EXECUTIVE COMMITTEE TO CONSIDER, WHICH IS IF EACH OF THOSE OPPORTUNITIES PRESENT THEMSELVES, WE CAN EXTEND BACK TO THE FULL LENGTH OF THE ORIGINAL CONTRACT AT A GREATER
[00:15:03]
DISCOUNT. SHOULD WE GO AHEAD AND AUTHORIZE STAFF TO DO THAT? SO THAT'LL BE IN FRONT OF THE EXECUTIVE COMMITTEE TO LOOK AT.SO I THINK, YOU KNOW, LONG ANSWER, I APOLOGIZE, BUT I THINK THE SHORT SUMMARY IS A LOT OF PEOPLE IN THE ROOM HAVE COALESCED AROUND THIS PROVIDING PREDICTABILITY AND THAT PREDICTABILITY BEING A VERY GOOD THING.
>> AND I'D LIKE TO ADD, YOU TALKED ABOUT PREPAID AND AT FMPA PREPAID IS VERY DIFFERENT THAN HEDGING. I TRY NOT TO SAY THE WORD HEDGING IN THIS ROOM, BECAUSE IT COMES WITH SOME HISTORY, BUT WE HAVE HEDGING THAT WE'VE DONE, AND WE'VE GOT ALSO PREPAID AND SOME OTHER THINGS THAT FMPA STAFF HAVE DONE. I MEAN, THEY'VE GOTTEN 30, 40 -- THEY'VE GOTTEN A CERTAIN AMOUNT OF DISCOUNT FOR COMMITTING TO BEING A CONTINUED GAS -- WHOLESALE GAS CUSTOMER, WHICH WILL EVEN PROVIDE ADDITIONAL DISCOUNTS FOR PURCHASE POWER GAS OR FOR
PURCHASE GAS TO PRODUCE POWER. >> SO THE PCA IS JUST THAT, RIGHT, IT'S A NUMBER THAT WE USE TO ADJUST FOR OUR POWER COSTS? SO THAT IF WE NEED TO PASS ALONG SOME OF THAT POWER COST FOR THE UTILITY TO THE CUSTOMER THAT WE CAN, WE HAVE
QUICK FLEXIBILITY TO DO THAT? >> YES, SIR, SO I'M SORRY --
>> THE QUESTION WAS, I'M SURE THAT'S WHAT YOU WERE ABOUT TO ANSWER, HOW MUCH DO WE ASSUME IS GOING TO COST US IN POWER THAT'S BUILT INTO THE BASE RANGE? THE PCA IS ZERO, WHAT DOES THAT MEAN FOR WHAT WE'RE ASSUMING THE ACTUAL PURCHASE
POWER COST IS? >> IF THE PCA IS ZERO, WE'RE ASSUMING THAT FPUA, AND THIS VARIES FOR EVERY CITY, BUT FOR FPUA, IF WE BUY FROM FMPA ABOVE THAT, IT WOULD INCREASE. IF WE BUY BELOW, IT WOULD BE LESS. THAT'S OUR WHOLESALE -- THAT'S WHAT WE BUDGET FOR OUR WHOLESALE POWER PRICE.
>> THAT NUMBER THAT MRS. MIKA MENTIONED EARLIER OF $77.51 IS
PRETTY CLOSE TO A ZERO PCA. >> ABOUT $2 OFF OR SO,
SOMETHING LIKE THAT, YEP. >> YEAH.
>> SO $2 NEGATIVE PCA, WHICH IS WHAT WE'RE CARRYING THROUGH FOR MOST OF THE SUMMER UP UNTIL DECEMBER.
>> AND IT SEEMS LIKE WE'VE BEEN DOING A PRETTY GOOD JOB OF PREDICTING -- PROBABLY BECAUSE WE'RE NOT HEDGING, WE'RE
PRE-PURCHASING SO MUCH -- >> PLANNING VERY WELL, YES.
>> RIGHT, PLANNING VERY WELL. THE RATE STABILIZATION FUND HASN'T HAD MANY WILD SWINGS OVER THE PAST SEVEN OR EIGHT MONTHS. ESPECIALLY COMPARED TO MONTHS FROM LAST YEAR.
>> MM-HMM. >> AND THE MARKET ALSO HAS BEEN VERY LOW FOR THE LAST SIX MONTHS OR SO. THE MARKET HAS BEEN IN THE $2.50 TO $2 RANGE, SO IT'S ALSO BEEN VERY LOW.
THERE WAS A COUPLE, LIKE, FOR MOST OF JUNE I THINK IT WAS AT $2 OR JUST SLIGHTLY BELOW $2. SO IT'S VERY, VERY LOW. FOR US TO HAVE A ZERO PCA, IT'S AROUND $3.40, $3.50 .
>> LAST TWO QUESTION, AND I'LL BE DONE. WHEN WE WERE HAVING THOSE WILD GAS COSTS, WE WERE HEARING ALL THESE DIFFERENT REASONS WHY THE GAS COSTS HAD THIS HUGE UPSWING. PIPELINES BEING SHUT DOWN. THE UKRAINE WAR AND US SHIPPING GAS OVER TO EUROPE. HAVE ANY OF THOSE ISSUES GONE AWAY? WHAT'S THE EXPLANATION NOW AS TO WHY THESE PRICES CAME DOWN?
>> SO THE SURPLUS IS SIGNIFICANTLY HIGHER. SO LET ME BACK UP A LITTLE BIT. JACOB TALKED ABOUT THIS AT THE ANNUAL CONFERENCE. THE STORAGE NUMBERS ARE VERY HIGH, SO WE HAVE HIGHER THAN NORMAL STORAGE NUMBERS. WE ALSO HAVE SOME EXPORTS -- HAVEN'T BEEN EXPORTING AS MUCH AS THEY PREDICTED AND WELL PRODUCERS ARE STILL PRODUCING MORE THAN THEY NEED TO. AS A RESULT, IT'S CAUSED A SURPLUS IN STORAGE NUMBERS. WE HAD A VERY MILD WINTER, WHEN THEY WERE EXPECTING IT TO BE A MUCH COLDER WINTER. ALSO, THERE WAS A COUPLE OF TRANSMISSION OUTAGES, IF I REMEMBER CORRECTLY, THAT MAY OR MAY NOT HAVE HAPPENED WHEN THEY TAKE GAS PIPELINE TRANSMISSION PIPES OUT OF SERVICE FOR MAINTENANCE.
THOSE ALSO RAISE THE COST AND SOME OF THOSE THINGS WE EITHER DELAYED OR PUSHED OFF. SO WE DO EXPECT TO SEE SOME OF THOSE COSTS KIND OF CREEP IN AT SOME POINT THROUGHOUT THE YEAR, BECAUSE THEY'LL HAVE TO TAKE SOME OF THESE LINES OUT OF SERVICE AND SOME OF THESE STATIONS OUT OF SERVICE.
>> MY LAST QUESTION IS, IS THERE -- I'M SURE MANY OF THE OTHER MUNICIPALITIES HAVE HAD A LOT OF GROWTH, RIGHT, SO IN GENERAL I WOULD ASSUME THERE'S BEEN SIGNIFICANT LOAD GROWTH IN
[00:20:01]
THE STATE OF FLORIDA. HAS THERE BEEN ANY TALKS OF GETTING GREATER DIVERSIFICATION IN OUR POWER GENERATION SO THAT WE'RE NOT AS INFLUENCED AND AFFECTED BY SWINGS IN GAS PRICES?>> SO, YES, SIR. THE FMPA BOARD TALKED ABOUT A LONG-TERM PLAN, A 30-YEAR PLAN, MAYBE EARLIER THIS YEAR, JODY, AND SOME OF THAT DISCUSSION WAS SMALL, MODULAR, NUCLEAR, SOME NUCLEAR EXPANSION. SO THEY HAVE BEEN -- THEY ARE LOOKING AT WHAT THAT LOOKS LIKE AND HOW MUCH MONEY IT WOULD TAKE TO GET US THERE.
AS IT -- AS OF RIGHT NOW, NATURAL GAS COMBINED CYCLE POWER PLANTS ARE THE LOWEST COST FOR FLORIDA. ACTUALLY, I THINK IN THE COUNTRY -- WELL, THERE'S HYDRO, WHICH IS, YOU KNOW, PRETTY CHEAP, BUT NATURAL GAS COMBINED CYCLE POWER PLANTS RIGHT NOW, THEY'RE VERY LOW COST.
>> I HAVE A QUESTION JUST TO PIGGYBACK A LITTLE BIT ON MR. LAMMERS. THE SLOWING OF THE SHIPPING. AT ONE TIME THAT WAS BEING PUSHED BY THE GOVERNMENT. I KNOW AT THAT CONVENTION A LOT OF THINGS THEY DISCUSSED WAS THE POLITICAL CLIMATE. HAS THAT IMPACTED -- I THINK RIGHT NOW THEY'RE PROBABLY NOT TALKING ABOUT IT, BUT ON BOTH SIDES OF THE BENCH, WAS THAT DISCUSSED
AT ALL? >> SO I -- LET ME SEE IF I CAN ANSWER THIS. I WOULD LIKE TO KEEP THE RATE STABILIZATION FUND AT TEN UNTIL AFTER THE ELECTION, BECAUSE I DON'T KNOW WHAT'S THAT'S GOING TO LOOK LIKE. I THINK BOTH ORGANIZATIONS, BOTH PARTIES, ARE LOOKING AT WHAT IT -- AT NATURAL RESOURCES IN OUR COUNTRY AND WHAT THAT MEANS TO US. SO I THINK THAT DEFINITELY WILL -- BECAUSE WE'VE BEEN ABLE TO HEDGE, WE MAY NOT BE AS VOLATILE TO THE MARKET, BUT LONG TERM THAT DEFINITELY LOOKS LIKE SOMETHING WE SHOULD BE CAREFUL OF, AT LEAST CONSIDER. AND THAT'S PART OF THE REASON I THINK HEDGING -- I'M SORRY FOR SAYING THE WORD HEDGING HERE, BECAUSE I KNOW THAT'S A BAD WORD, BUT TO PURCHASE OUR GAS -- THAT REMOVES US OUT OF THE VOLATILITY OF THE MARKET REGARDLESS OF WHAT THE POLITICS ARE.
>> AND I LOVE TO HEAR THAT JODY IS TELLING US TOO THAT THE PRE-PURCHASE, THEY'RE LOOKING TO EXTEND IT, WHICH MEANS THEY ALSO WANT TO HAVE SOME KIND OF SECURITY, THE PRODUCERS. SO THAT GIVES US SOME LEVITY I THINK TOO. SO HOPEFULLY THAT -- WE'RE ALL DOING THE SAME THING WILL HELP EACH OTHER.
>> AS A QUICK RECAP, FOR EVERY DOLLAR THE NATURAL GAS PRICE GOES UP, THAT'S $6 ON 1,000 KILOWATT HOURS. SO IF IT WERE TO GO UP $4,ED IT'D BE $24 ON THE BILL.
>> MADAME CHAIR, SO IS WHAT I'M HEARING IS THE STRATEGY WE DO IN PRE-PURCHASING, THE DIFFERENT TOOLS THAT WE USE KIND OF HELP US MANAGE A MARKET THAT WE CAN'T CONTROL?
>> THAT'S RIGHT. >> TO THE BEST OF ABILITY.
>> BECAUSE IF WE DIDN'T DO THAT, WE'RE JUST AT THE WHIM OF INTERNATIONAL SITUATIONS AND WEATHER AND WHO KNOWS WHAT
ELSE. >> YEP. AND A LARGE PART OF THAT DECISION IS DIRECTLY RELATED TO THE FLEET THAT FMPA HAS. FMPA HAS 75% NATURAL POWER GAS FLEET. SO I MAKES SENSE FOR US TO BE ABLE TO LOCK IN THOSE PRICES.
>> AND IT ALSO GIVES THE PRODUCER SOME CONSISTENCY RATHER THAN US GOING TO MARKET AND BUYING IT FROM ANYBODY, WE'RE BROKERING, IT SOUNDS LIKE, WITH A SPECIFIC GENERATOR. WHICH THEN GIVES THEM SOME --
ASSURANCE, YEAH. >> THAT'S ALL I HAVE, MADAME
CHAIR. >> THANK YOU, SO MUCH. THAT WAS
[F. DIRECTOR COMMENT]
THE ONLY THING ON OUR AGENDA. THAT CONCLUDES THE REGULAR AGENDA. ARE THERE ANY OTHER COMMENTS FROM THE DIRECTOR?>> YES, MA'AM, I HAVE A COUPLE HERE. ON AUGUST 12TH LAST WEEK THE CITY COMMISSION APPROVED THE FPUA BUDGET. SO I WOULD LIKE TO THANK THE BOARD AND THE CITY COMMISSION FOR YOUR SUPPORT. AND WE ARE LOOKING FORWARD TO ANOTHER GREAT YEAR.
SEPTEMBER 2ND IS A HOLIDAY, SO THE CITY COMMISSION MEETING WILL BE ON TUESDAY, SEPTEMBER 3RD AT 5:00. SO OUR NEXT BOARD MEETING WILL BE AT -- ON SEPTEMBER 3RD, THAT TUESDAY AT 2:00. AND I BELIEVE DAN WILL BE HERE FOR THAT MEETING. EARLIER I PASSED OUT A PACKET WITH FIVE ADDITIONAL RESUMES FOR GENERAL
[00:25:03]
COUNSEL, AND WE -- I'LL FOLLOW UP WITH EACH OF THE BOARD MEMBERS TOMORROW, BUT WE HAVE TENTATIVELY SCHEDULED NEXT THURSDAY, THE 29TH, THE 29TH FOR INTERVIEWS WITH THE BOARD MEMBERS, ONE OF THE CANDIDATES. AND WE SCHEDULED ONE OF THE OTHER CANDIDATES FOR ANOTHER TIME. WE CURRENTLY HAVE THURSDAY BLOCKED OFF FOR THAT INDIVIDUAL. AND I BELIEVE IT'S KELLY IS WHO WE -- WHO'S BLOCKED OFF FOR THAT TIMEFRAME.>> YOU MEAN CAN MAKE THAT DAY OR NOT MAKE THAT DAY?
>> THAT'S THE DAY -- HE'S ALREADY CONFIRMED HE'S
AVAILABLE THAT DAY. >> WHAT WAS THE DATE ON THAT?
>> AND THEN WE'LL EACH HAVE OUR OWN ALLOTTED TIME.
>> EVERYBODY WILL HAVE 45 MINUTES OR AN HOUR WITH THE INDIVIDUAL, AND THEN WE'RE SCHEDULING -- WE'VE REACHED OUT TO SUSAN AND TRYING TO FIGURE OUT A TIME FOR HER TO MEET WITH YOU MAYBE NEXT WEEK OR MAYBE THE WEEK AFTER. WE'LL FIGURE OUT WHAT DAY IS AVAILABLE FOR HER AND WHAT
WORKS FOR BOARD. >> WHERE WILL WE MEET THEM?
>> WE WILL USE THE GENERAL COUNSEL'S OFFICE BECAUSE IT'S VACANT, SO THERE'S PLENTY OF SPACE AND PRIVACY THERE. AND
[G. BOARD MEMBER COMMENTS]
THAT'S ALL I HAVE FOR THE BOARD.>> THANK YOU VERY MUCH, SIR. ARE THERE ANY COMMENTS FROM THE BOARD MEMBERS AT THIS TIME? I'D JUST LIKE TO SAY, MAKE
>> TODAY, THAT'S RIGHT. >> YOU HAVE UNTIL 7:00 TONIGHT.
>> UNTIL 7:00 P.M. SO EACH AND EVERY PERSON THAT HASN'T, THAT'LL BE YOUR TIME TO GO AT YOUR POLL. ARE THERE ANY
COMMENTS FROM THE ATTORNEY? >> NO, MA'AM.
>> OKAY. SEEING THERE
* This transcript was compiled from uncorrected Closed Captioning.