DOVER, Del., March 25, 2015 /PRNewswire/ -- Chesapeake
Utilities Corporation (NYSE: CPK) ("Chesapeake") is pleased to
announce the groundbreaking for the new Eight Flags Energy, LLC
("Eight Flags") Combined Heat and Power ("CHP") plant. The
groundbreaking ceremony was held yesterday in Fernandina Beach on Amelia Island in
Nassau County, Florida. The event
was hosted by Chesapeake, its subsidiary, Florida Public Utilities
Company ("FPU"), and Rayonier Advanced Materials, Inc. (NYSE:
RYAM), and was attended by many state, local and company
officials.
Eight Flags' CHP plant, fueled by natural gas, will be built on
a site leased from Rayonier Performance Fibers, LLC, a subsidiary
of Rayonier Advanced Materials, Inc. The site is adjacent to a
Rayonier Performance Fibers cellulose specialties plant. The CHP
plant will generate steam for sale to Rayonier Performance Fibers
for use in the operation of its cellulose specialties production
facility. The CHP plant is expected to be operational in
mid-2016. The projected investment to be made by Chesapeake and its
subsidiaries in constructing the CHP project and associated
facilities is approximately $40.0
million.
"The Eight Flags CHP project is a significant accomplishment.
Working with Rayonier, we developed a solution that will provide
benefits for all parties involved that are greater than the parties
could have achieved individually. FPU customers will enjoy
reliable, environmentally friendly electricity in their homes and
businesses and recognize significant cost savings in the coming
years," said Michael P. McMasters,
President and CEO of Chesapeake Utilities Corporation. "With the
additional steam generated by the new CHP plant, Rayonier Advanced
Materials will gain greater operational flexibility for their
production facility. Finally, Chesapeake's stockholders benefit as
we expand our energy expertise into new unregulated arenas and
increase our long-term earnings capacity from projects like this
CHP project."
The CHP plant will produce approximately 20MW of base load
power, which FPU will purchase for distribution to its electric
retail customers. The Florida Public Service Commission ("FPSC")
has approved a Purchased Power Agreement ("PPA") for a 20-year
term, which is expected to generate approximately $28.0 million in savings to FPU's electric
customers over the life of the PPA.
The FPSC also approved the extension of an existing energy
purchased power contract between FPU and Rayonier Performance
Fibers. Currently, boilers at the Rayonier Performance Fibers site
provide steam and generate electricity, and the company sells the
excess electricity generated to FPU. The original contract has been
in place and has produced savings for FPU customers for around two
years.
The approved extension will extend the term of the original
contract for an additional 14 years, from October 2022 to September
2036, and will generate an estimated savings of $8.2 million for FPU customers over the amended
contract term and align the term of this contract with that of the
PPA.
"We are thrilled to be working with Rayonier Advanced Materials
and to start construction on the Eight Flags CHP plant," added
Jeffry M. Householder, President of
Florida Public Utilities Company. "Approximately 50 percent of
Amelia Island's electric requirements will be generated on the
Island reducing line losses and risks due to a single transmission
line."
"Chesapeake and FPU have proven to be great partners and
Rayonier Advanced Materials is excited to be an integral part of
their combined heat and power plant project," stated Paul Boynton, Chairman, President and CEO of
Rayonier Advanced Materials. "This new facility not only
benefits both companies' stockholders but it also provides
significant value to the residents of Amelia Island through more
dependable and cost-effective electric service."
About Chesapeake Utilities Corporation
Chesapeake
Utilities Corporation is a diversified energy company engaged in
natural gas distribution, transmission and marketing; electricity
distribution; propane gas distribution and wholesale marketing; and
other related services. Information about Chesapeake Utilities
Corporation and the Chesapeake family of businesses is available at
www.chpk.com.
About Florida Public Utilities Company
Florida Public
Utilities Company is a wholly-owned subsidiary of Chesapeake
Utilities Corporation. Headquartered in West Palm Beach, Florida, FPU distributes
natural gas and propane and provides electric services to
approximately 100,000 customers in markets throughout
Florida. For more information, visit www.fpuc.com.
About Rayonier Advanced Materials, Inc.
Rayonier
Advanced Materials is the leading global supplier of
high-purity, cellulose specialties natural polymers for the
chemical industry. Working closely with its customers, the company
engineers natural polymeric chemical chains to create dozens of
customized high-purity performance fibers at its plants
in Florida and Georgia. Rayonier Advanced
Materials' intellectual property and manufacturing processes
have been developed over 85 years, resulting in unique properties
and very high quality and consistency. The company's facilities can
produce up to 675,000 metric tons of cellulose specialties products
for use in a wide range of industrial and consumer products such as
filters, cosmetics and pharmaceuticals. Rayonier Advanced
Materials is consistently ranked among the nation's top 50
exporters and delivers products to 79 ports around the world,
serving customers in 20 countries across five continents. More
information is available at www.rayonieram.com.
Cautionary Note Regarding Forward-Looking Statements:
Statements in this release that are not historical are
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Words such as "expect," "likely," "outlook," "forecast," "would,"
"could," "should," "can," "will," "project," "intend," "plan,"
"goal," "target," "continue," "sustain," "believe," "seek,"
"estimate," "anticipate," "may," "possible," "assume," variations
of such words and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements are
not guarantees of future performance and are subject to risks,
uncertainties and assumptions that could cause actual results to
vary materially from those indicated, including the factors
described in Item 1A (Risk Factors) of our most recent Annual
Report on Form 10-K and Quarterly Report on Form 10-Q, each of
which is incorporated herein by reference, and in other documents
that we file or furnish with the Securities and Exchange
Commission. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated or
anticipated by such forward-looking statements. Accordingly, you
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they are made. Except
to the extent required by law, the Company does not undertake, and
expressly disclaims, any duty or obligation to update publicly any
forward-looking statement after the date of this release, whether
as a result of new information, future events, changes in
assumptions or otherwise.
For more information,
contact:
Jeffry M.
Householder
President
Florida Public Utilities Company
904.261.3663
Photo - http://photos.prnewswire.com/prnh/20150325/194350
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/chesapeake-utilities-corporation-florida-public-utilities-company-and-rayonier-advanced-materials-celebrate-groundbreaking-of-eight-flags-energy-llc-combined-heat-and-power-plant-300055804.html
SOURCE Chesapeake Utilities Corporation