Saturday, October 27, 2012

Electric Utility Advisory Board Recommendations on Lake Worth Energy Providers

Comment Up
Electric Utility Advisory Board
 Recommendations

Covanta Energy
Smaller service area compared to the other bidders. Concerns with the level of interruptions for Lake Worth if the plant goes down. The location is not known for reliability of infrastructures and agreements. Due to significant pitfalls, this option will be highly price sensitive. Low level of comfort ability with waste energy facilities – trash to energy technology

Orlando Utilities Commission
 Is there a concern with the 15% peak load plus 15% reserve margin minus our entitlements? Whether or not it is reasonable or the possibility of an issue because they can adjust the demand charge? The time frame is favorable. The transmission responsibility was thoroughly explained. In favor of the balanced authority that was included. It can help reduce rates based on how well we market and generate revenue.

Constellation Energy Commodities Group
Does the City have the capacity to provide the load and update annually? If so, can it be done effectively without affecting the energy rates? Not in favor of the contract term. Whether the City will invest in the Tom Smith power plant upgrades, determines favorable contract terms.

UR Solar Power, LLC
In review of the contract, members do not see the benefit of being exclusive to them to offer solar service. City encourages the use of solar energy, but can be facilitated through rebates or other avenues. Company is not offering a preset agreement.

Tampa Electric Company
Concerned with the structure of pricing Flexibility with contract term such as 3 years with a 2 year extension option. This supports the option for the City to upgrade the Tom Smith’s power plant. Diverse fuel mix -spreading the risk out

Gainesville Regional Utilities
Prefers 3-5 year contract Will pay capacity credits

Wartsila and Burns & McDonnel
Lends us opportunities for revenue in the future The City becomes a more attractive asset facility. The potential to lower utility costs. Is this something the City can afford at this time? Conduct a long term cost benefit analysis Provides flexibility and we have proper permitting for this asset Bond costs are at an all time low. Can we issue a revenue bond for this? Heat rate is competitive with partial loads.

FPL
Option 1 - buy all power supply from FPL. We have the obligation with St. Lucie and Stanton. It’s unclear as to what we will do with excess energy. The City would have to use it or find someone to use it for us

Option 2 – Carve out St. Lucie and Stanton out of the demand cost and would only supply energy over and above. FPL would supply replacement power if St. Lucie or Stanton were out of service at the replacement cost. No comments from the board

Option 3 - Since the City owns a combined cycle plant, FPL will carve out the capacity rates and set partial requirements that the City would purchase. It would run after St. Lucie and Stanton and before the combined cycle plant.

No comments from the board

2 comments:

Anonymous said...

It was like pulling teeth, but we got the report.

Anonymous said...

It is alarming when I read that the Board,which does not own Lake Worth Utility, does not know what to do with our locally produced, excess electricity, a most valuable commodity. Even the simplest,uninformed person knows that if you have excess product as valuable as electric energy,you can replace the necessary purchase for peak usage electrity ,and if there remains a surplus, we can sell, like Progress Energy and many others. Fortunately, Lake Worth Citizen taxpayers have never authorized an unelected group, which does not pay all our taxes, to make decisions that will cause, because of ignorance, monetary losses to the City. The Utility is public owned. Their lack of knowledge is a danger for the economic health and services, of our City.The self promoters, with lack of needed expertise, must be replaced by professionals living in the City,who know the subject, and the market and who can be given the responsibility,of rendering advice,based on thorough knowledge of in house electric generation.Has anyone investigated the degree to which generators have been upgraded ,with City borrowed $ 34million,not with the judgement of an arrogant layman,but certified professional we have in Lake Worth,with a bona fide report to the citizenry of the results,and the verifiable cost of such investigation.