JUNO BEACH, Fla., Jan. 26, 2015 /PRNewswire/ -- Florida Power & Light Company (FPL) today
announced details about its plans to build substantially more solar
energy capacity as part of its ongoing strategy of advancing clean
energy while keeping electricity affordable for customers.
Before the end of 2016, FPL intends to build three new solar
photovoltaic (PV) power plants that are being designed to
cost-effectively complement other major system improvements, which
include the retirement of some of the company's oldest fossil
fuel-burning units and the continued investment in clean,
fuel-efficient, 24-hour power generated from U.S.-produced natural
gas and zero-emissions nuclear fuel.
"Over the past decade, we have continuously focused on advancing
reliable, affordable, clean energy for our customers," said
Eric Silagy, president and CEO of
FPL. "In particular, we have been working especially hard to find
ways to advance solar energy in Florida without increasing electricity costs,
and we have developed what we believe will be a cost-effective plan
to triple the amount of solar energy we use to serve our customers
before the end of 2016."
Currently, solar power – even the most economical large-scale
installation – is generally not yet cost effective in FPL's service
area, due in part to its higher costs compared to the company's
highly efficient system and low electric rates. However, FPL has
identified three uniquely advantaged sites that will each
facilitate the cost-effective development of a new, large-scale
solar plant. In addition, as the cost of solar PV is projected to
decline further later in the decade, FPL is optimistic that it
could potentially add even more solar energy generation to
complement its natural gas and nuclear resources while continuing
to meet the electricity needs of Florida's growing economy and
population on a cost-effective basis.
"As the economics of solar power improve in the years ahead, we
believe we will be able to harness more and more sunshine
cost-effectively, alongside essential, high-efficiency, clean
natural gas generation and zero-emissions nuclear power, to
continue powering our customers and the state's growing economy
with affordable clean energy," Silagy said. "These exciting
large-scale solar projects, equivalent to roughly 45,000 typical
residential rooftop systems, will bring new tax revenue and several
hundred new jobs to rural communities we serve and deliver
emissions-free power when the sun is shining to our customers
across the state."
Currently serving more than 4.7 million customer accounts across
nearly half of Florida, FPL operates a diverse portfolio of energy
sources to power the state's growing population and economy. As
outlined previously in the company's 10-Year Site Plan filed with
the Florida Public Service Commission, FPL anticipates a
significant need for additional firm power generation beginning in
2019, when its total number of customer accounts is projected to
top 5 million. To meet this need, FPL intends to issue a Request
for Proposals (RFP) during the first quarter of 2015 to invite
prospective bids. At this time, the company believes that clean,
high-efficiency natural gas generation will likely be the most
cost-effective energy source to meet this specific need.
Investments in high-efficiency natural gas generation since 2001
have enabled FPL to cut its use of foreign oil by more than 99
percent – from more than 40 million barrels of oil in 2001 to less
than 1 million barrels annually today. The company has been
strategically phasing out older, less efficient fossil fuel plants
and replacing them with new, high-efficiency natural gas energy
centers that use approximately one-third less fuel per
megawatt-hour.
Since 2001, the effectiveness of these investments has saved our
customers more than $7.5 billion on
fuel and prevented more than 85 million tons of carbon
emissions.
The U.S. Environmental Protection Agency (EPA) calculates that
this amount of carbon reduction is equivalent to removing more than
16 million cars from the road annually or switching more than 2
billion incandescent lights to compact fluorescents.
In addition to improvements in fossil fuel and renewable power,
FPL successfully completed in 2013 the largest nuclear expansion in
recent U.S. history – an investment that is now saving customers
approximately $100 million a year in
fossil fuel costs without emitting any carbon dioxide or other
greenhouse gases.
Unlike many electric utilities across the country, FPL is
well-positioned to meet the EPA's targets for reductions in CO2
emissions – with no expected additional costs – thanks in part to
the company's investments in nuclear, solar and natural gas.
"There's no simple, silver-bullet solution to the complex
challenge of planning to cost-effectively and reliably meet future
energy needs. Energy issues involve long-term, fact-based planning
and decision-making. FPL's strategy of making smart investments in
affordable, clean energy infrastructure is working. We take great
pride in the fact that our electric rates have actually decreased
in recent years, helping keep our typical residential customer
bills the lowest in Florida and
well below the national average, while we continue to deliver
industry-leading reliability and invest in advancing a system
that's already one of the cleanest and most efficient in the
country," Silagy said.
FPL's Affordable Clean Energy Strategy: Summary of Key
Generation Milestones*
- On Dec. 31, 2014, FPL retired two
1970s-era gas- and oil-fueled generating units in Putnam County (Putnam Plant Units 1 and 2), as
planned. The units served FPL customers well for decades, and the
timing of their retirement enables cost savings for customers as
FPL's modernized system generates cleaner, more fuel-efficient
electricity than ever before.
- By the summer of 2015, the new Palm Beach County Solid Waste
Authority (SWA) waste-to-energy plant is expected to enter service,
doubling the site's renewable energy capacity. FPL buys this
renewable energy from SWA and uses it to power all FPL customers
via its grid.
- Although large-scale solar PV remains the most economical way
to utilize solar energy for FPL customers, the company also
recognizes the role of distributed generation. In the coming
months, FPL will build the first of several community-based solar
installations as part of a pilot program that will be supported by
the company and voluntary participation by customers. In addition,
FPL continues to work on plans to install commercial-scale arrays
at locations to be announced in the near future.
- In mid-2016, the new high-efficiency, natural gas-fueled FPL
Port Everglades Next Generation Clean Energy Center is expected to
enter service at the site of a former oil-fueled power plant, which
was dismantled in 2013. Construction is progressing well, and the
project remains on schedule and on budget. This project is the
third in a series of three major modernization investments. The
first two projects, the FPL Cape Canaveral and Riviera Beach Next
Generation Clean Energy Centers, entered service in 2013 and 2014,
respectively – ahead of schedule and under budget.
- By the end of 2016, the company expects to add three new
large-scale solar power plants. FPL estimates that it will be able
to build these facilities cost-effectively for customers due to
several factors – in addition to the decreasing cost of solar PV –
that include the sites' key characteristics such as their close
proximity to existing power transmission lines and electric
substations with adequate capacity for the additional
generation.
- Clean, high-efficiency natural gas power continues to be the
most likely option to meet the need for significant additional firm
generation capacity beginning in 2019. To identify the best, most
economical generation addition for customers, FPL will solicit
proposals from interested outside parties and consider all
qualifying bids in comparison with a potential new natural gas
energy center that would be located on company-owned property in
Okeechobee County.
- FPL continues to take a step-by-step approach to building two
additional zero-emissions nuclear units at its existing Turkey
Point site. Despite schedule changes announced by the U.S. Nuclear
Regulatory Commission (NRC) in August and new timeline restrictions
resulting from recent changes to Florida law, FPL continues to work
toward bringing the units into service in advance of the 2030
deadline for the state to meet the EPA's pending Clean Power Plan
to reduce carbon emissions from power plants.
- As the cost of solar PV continues to decrease, there is strong
potential for several additional large-scale solar plants to be
built cost-effectively in the next decade. FPL is analyzing
potential sites in many parts of its service area.
*Note: The above list does not encompass all projected
resource changes in FPL's service territory, including potential
generating unit retirements and conversions and changes in
purchased power contracts. The company's complete, detailed
capacity projections are filed annually with the Florida Public
Service Commission and publicly available at both the PSC's website
and at FPL.com.
Addition of Three Cost-Effective Large-Scale Solar Power
Plants in 2016
FPL has identified three sites with built-in
advantages, such as the existence of sufficient transmission and
substation infrastructure, which reduce the overall cost of
building new solar plants.
In the coming months, FPL intends to present detailed plans to
the local communities identified as the most likely locations for
new solar plants. The anticipated plants and sites are:
- FPL Citrus Solar Energy Center – DeSoto County, near Florida's first
large-scale solar plant, which FPL commissioned in 2009
- FPL Babcock Ranch Solar Energy Center – Charlotte County, in coordination with and
with the support of the county and the Babcock Ranch community
- FPL Manatee Solar Energy Center – Manatee County, on the site of an existing
fuel-efficient natural gas power plant that FPL operates
Each of the new plants is being designed for roughly 74
megawatts of capacity. With support from the local communities, FPL
would begin construction on the plants later this year and complete
them by the end of 2016.
These new plants, combined with community-based solar
installations and other small-scale arrays that FPL is installing,
would total more than 225 megawatts of new solar capacity. This
would effectively triple FPL's solar capacity, which currently
totals approximately 110 megawatts.
FPL's current solar portfolio includes 75 megawatts at the
hybrid FPL Martin Next Generation Clean Energy Center; the
25-megawatt FPL DeSoto Next Generation Solar Energy Center; and the
10-megawatt FPL Space Coast Next Generation Solar Energy Center
near NASA's Kennedy Space
Center.
Clean, U.S.-produced Natural Gas Generation for Florida's
Growing Economy
As outlined in the company's 10-Year Site
Plan filed with the Florida Public Service Commission in 2014, FPL
projects a need for additional generation beginning in 2019. This
projected need for new generation remains after accounting for all
of the identified achievable potential conservation that is
cost-effective. The current projection is that approximately 1,000
megawatts of firm capacity will still be needed beginning in
mid-2019 due to several factors, including the retirement of older,
inefficient plants and Florida's growing economy and
population.
As part of its effort to meet this need, FPL plans to issue an
RFP during the first quarter of 2015 to solicit proposals from
interested outside parties. In order to identify the best, most
economical generation addition for customers, all qualifying bids
will be carefully considered in comparison with a potential new,
FPL-operated natural gas-fired combined-cycle plant that would be
located on company-owned property in Okeechobee County, Fla.
"U.S.-produced natural gas is critical to keeping our customers
free from the past's reliance on foreign oil," said Silagy. "Clean,
high-efficiency natural gas energy centers, along with
cost-effective energy efficiency programs and zero-emissions
nuclear and solar power, ensure FPL can continue to deliver clean,
affordable and reliable electricity for customers 24 hours a day,
365 days a year, now and in the future."
Reliable, Low-Cost, Emissions-Free Nuclear
Power
Today, FPL's nuclear power plants generate enough
electricity to power approximately 1.8 million homes and prevent
more than 15 million tons of carbon dioxide emissions every year –
the equivalent of taking more than 2 million cars off the road,
according to the EPA. In addition, because nuclear fuel prices are
low and have remained steady for decades, FPL's nuclear plants are
a key part of the company's affordable, clean energy strategy.
Over the past few years, FPL invested more than $3 billion to successfully upgrade each of its
nuclear units through one of the most complex nuclear projects in
U.S. history. The new nuclear capacity added by the successful
project is equivalent to a new medium-sized power plant. This
investment, made possible because of Florida's nuclear cost
recovery system, is now saving FPL customers an estimated
$100 million a year on fuel.
Emissions-free nuclear power remains a critical component of the
company's long-term plans, and FPL continues to make progress on
the licensing of two new nuclear units at the company's Turkey
Point site. These units would generate enough clean energy 24 hours
per day to power approximately 1.3 million homes for decades to
come, saving FPL customers an estimated $170
billion in fossil fuel costs and preventing approximately
418 million tons of carbon emissions over the initial operating
life of the units, the EPA-equivalent of taking 88 million cars off
the road.
In August of 2014, the NRC announced a delay in its schedule for
reviewing FPL's previously submitted application for a combined
operating license for the two new nuclear units, due largely to the
agency's resource constraints. This forces an extension of the
project timeline by approximately two-and-a-half years. In
addition, recent changes to Florida's nuclear cost recovery law
prevent certain work from being conducted until the NRC process is
complete – causing an additional two-and-a-half year delay to the
project timeline.
Despite this, FPL continues to expect that the new
zero-emissions units will be built and producing power for its
customers in advance of the state's 2030 compliance deadline for
the EPA's pending carbon emissions reduction requirements, with the
first unit projected to enter service in 2027 and the second to
follow in 2028.
"Because we have lived and breathed our clean energy commitment
for many years now, FPL is one of the cleanest electric generating
companies in the U.S., positioning us well to meet the goals of the
EPA's Clean Power Plan," Silagy said. "We are concerned that many
other utilities and their customers may be facing potentially
billions of dollars in compliance costs; however, we believe our
customers will be protected from those potential rate impacts
thanks to the affordable clean energy strategy we have been
implementing with the support of the Florida PSC and other
important stakeholders over the past 15 years."
Florida Power & Light
Company
Florida Power &
Light Company is the third-largest electric utility in the United States, serving more than 4.7
million customer accounts across nearly half of the state of
Florida. FPL's typical 1,000-kWh residential customer bill is
approximately 25 percent lower than the national average and, in
2014, was the lowest in Florida
among reporting utilities for the fifth year in a row. FPL's
service reliability is better than 99.98 percent, and its highly
fuel-efficient power plant fleet is one of the cleanest among all
utilities nationwide. The company was recognized in 2014 as the
most trusted U.S. electric utility by Market Strategies
International, and has earned the national ServiceOne Award for
outstanding customer service for an unprecedented 10 consecutive
years. A leading Florida employer with approximately 8,900
employees, FPL is a subsidiary of Juno
Beach, Fla.-based NextEra Energy, Inc. (NYSE: NEE). For more
information, visit www.FPL.com.
NOTE TO EDITORS: For high-definition photos and B-roll of FPL's
existing solar energy centers, please or visit the digital library
of FPL's Newsroom (http://newsroom.fpl.com/) or call the FPL Media
Line at 561-694-4442.
Cautionary Statements and Risk Factors That May Affect Future
Results
This press release contains "forward-looking
statements" within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are not statements of historical facts, but instead
represent the current expectations of NextEra Energy, Inc. (NextEra
Energy) and Florida Power &
Light Company (FPL) regarding future operating results and other
future events, many of which, by their nature, are inherently
uncertain and outside of NextEra Energy's and FPL's control.
In some cases, you can identify the forward-looking statements by
words or phrases such as "will," "may result," "expect,"
"anticipate," "believe," "intend," "plan," "seek," "aim,"
"potential," "projection," "forecast," "predict," "goals,"
"target," "outlook," "should," "would" or similar words or
expressions. You should not place undue reliance on these
forward-looking statements, which are not a guarantee of future
performance. The future results of NextEra Energy and FPL and their
business and financial condition are subject to risks and
uncertainties that could cause their actual results to differ
materially from those expressed or implied in the forward-looking
statements, or may require them to limit or eliminate certain
operations. These risks and uncertainties include, but are not
limited to, the following: effects of extensive regulation of
NextEra Energy's and FPL's business operations; inability of
NextEra Energy and FPL to recover in a timely manner any
significant amount of costs, a return on certain assets or an
appropriate return on capital through base rates, cost recovery
clauses, other regulatory mechanisms or otherwise; impact of
political, regulatory and economic factors on regulatory decisions
important to NextEra Energy and FPL; disallowance of cost recovery
by FPL based on a finding of imprudent use of derivative
instruments; effect of any reductions to or elimination of
governmental incentives that support renewable energy projects of
NextEra Energy Resources, LLC and its affiliated entities (NextEra
Energy Resources) or the imposition of additional taxes or
assessments on renewable energy; impact of new or revised laws,
regulations or interpretations or other regulatory initiatives on
NextEra Energy and FPL; effect on NextEra Energy and FPL of
potential regulatory action to broaden the scope of regulation of
over-the-counter (OTC) financial derivatives and to apply such
regulation to NextEra Energy and FPL; capital expenditures,
increased operating costs and various liabilities attributable to
environmental laws, regulations and other standards applicable to
NextEra Energy and FPL; effects on NextEra Energy and FPL of
federal or state laws or regulations mandating new or additional
limits on the production of greenhouse gas emissions; exposure of
NextEra Energy and FPL to significant and increasing compliance
costs and substantial monetary penalties and other sanctions as a
result of extensive federal regulation of their operations; effect
on NextEra Energy and FPL of changes in tax laws and in judgments
and estimates used to determine tax-related asset and liability
amounts; impact on NextEra Energy and FPL of adverse results of
litigation; effect on NextEra Energy and FPL of failure to proceed
with projects under development or inability to complete the
construction of (or capital improvements to) electric generation,
transmission and distribution facilities, gas infrastructure
facilities or other facilities on schedule or within budget; impact
on development and operating activities of NextEra Energy and FPL
resulting from risks related to project siting, financing,
construction, permitting, governmental approvals and the
negotiation of project development agreements; risks involved in
the operation and maintenance of electric generation, transmission
and distribution facilities, gas infrastructure facilities and
other facilities; effect on NextEra Energy and FPL of a lack of
growth or slower growth in the number of customers or in customer
usage; impact on NextEra Energy and FPL of severe weather and other
weather conditions; threats of terrorism and catastrophic events
that could result from terrorism, cyber attacks or other attempts
to disrupt NextEra Energy's and FPL's business or the businesses of
third parties; inability to obtain adequate insurance coverage for
protection of NextEra Energy and FPL against significant losses and
risk that insurance coverage does not provide protection against
all significant losses; risk to NextEra Energy Resources of
increased operating costs resulting from unfavorable supply costs
necessary to provide NextEra Energy Resources' full energy and
capacity requirement services; inability or failure by NextEra
Energy Resources to manage properly or hedge effectively the
commodity risk within its portfolio; potential volatility of
NextEra Energy's results of operations caused by sales of power on
the spot market or on a short-term contractual basis; effect of
reductions in the liquidity of energy markets on NextEra Energy's
ability to manage operational risks; effectiveness of NextEra
Energy's and FPL's risk management tools associated with their
hedging and trading procedures to protect against significant
losses, including the effect of unforeseen price variances from
historical behavior; impact of unavailability or disruption of
power transmission or commodity transportation facilities on sale
and delivery of power or natural gas by FPL and NextEra Energy
Resources; exposure of NextEra Energy and FPL to credit and
performance risk from customers, hedging counterparties and
vendors; failure of NextEra Energy or FPL counterparties to perform
under derivative contracts or of requirement for NextEra Energy or
FPL to post margin cash collateral under derivative contracts;
failure or breach of NextEra Energy's or FPL's information
technology systems; risks to NextEra Energy and FPL's retail
businesses from compromise of sensitive customer data; losses from
volatility in the market values of derivative instruments and
limited liquidity in OTC markets; impact of negative publicity;
inability of NextEra Energy and FPL to maintain, negotiate or
renegotiate acceptable franchise agreements with municipalities and
counties in Florida; increasing
costs of health care plans; lack of a qualified workforce or the
loss or retirement of key employees; occurrence of work strikes or
stoppages and increasing personnel costs; NextEra Energy's ability
to successfully identify, complete and integrate acquisitions,
including the effect of increased competition for acquisitions;
environmental, health and financial risks associated with NextEra
Energy's and FPL's ownership and operation of nuclear generation
facilities; liability of NextEra Energy and FPL for significant
retrospective assessments and/or retrospective insurance premiums
in the event of an incident at certain nuclear generation
facilities; increased operating and capital expenditures at nuclear
generation facilities of NextEra Energy or FPL resulting from
orders or new regulations of the Nuclear Regulatory Commission;
inability to operate any of NextEra Energy Resources' or FPL's
owned nuclear generation units through the end of their respective
operating licenses; liability of NextEra Energy and FPL for
increased nuclear licensing or compliance costs resulting from
hazards, and increased public attention to hazards, posed to their
owned nuclear generation facilities; risks associated with outages
of NextEra Energy's and FPL's owned nuclear units; effect of
disruptions, uncertainty or volatility in the credit and capital
markets on NextEra Energy's and FPL's ability to fund their
liquidity and capital needs and meet their growth objectives;
inability of NextEra Energy, FPL and NextEra Energy Capital
Holdings, Inc. to maintain their current credit ratings; impairment
of NextEra Energy's and FPL's liquidity from inability of creditors
to fund their credit commitments or to maintain their current
credit ratings; poor market performance and other economic factors
that could affect NextEra Energy's defined benefit pension plan's
funded status; poor market performance and other risks to the asset
values of NextEra Energy's and FPL's nuclear decommissioning funds;
changes in market value and other risks to certain of NextEra
Energy's investments; effect of inability of NextEra Energy
subsidiaries to pay upstream dividends or repay funds to NextEra
Energy or of NextEra Energy's performance under guarantees of
subsidiary obligations on NextEra Energy's ability to meet its
financial obligations and to pay dividends on its common stock; and
effect of disruptions, uncertainty or volatility in the credit and
capital markets of the market price of NextEra Energy's common
stock. NextEra Energy and FPL discuss these and other risks and
uncertainties in their annual report on Form 10-K for the year
ended December 31, 2013 and other SEC
filings, and this press release should be read in conjunction with
such SEC filings made through the date of this press release. The
forward-looking statements made in this press release are made only
as of the date of this press release and NextEra Energy and FPL
undertake no obligation to update any forward-looking
statements.
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SOURCE Florida Power & Light
Company