FPL looks to acquire coal-fired power plant in Jacksonville — and shut it down

[thelakelander]

http://www.panoramio.com/photo/92421689

The Cedar Bay Generating Plant, which had been under a long-term contract to supply power to FP&L since 1998, is a 250-megawatt coal-fired facility on Jacksonville's Northside. FP&L is looking to buy the plant for $520.5 million. If successful, its plans are to reduce operations by 90 percent and eventually phase the plant out of service, according to a company statement.

Full article: http://www.bizjournals.com/jacksonville/news/2015/03/06/fpl-looks-to-acquire-coal-fired-power-plant-in.html

[Tacachale]

Why would they do this? To shift the supply to their other plants?

[Jumpinjack]

Perhaps it is something like an air pollution mitigation credit.

[coredumped]

Why would they do this? To shift the supply to their other plants?

From the article:

The result should be an estimated $70 million saved for customers and the prevention of 1 million tons of carbon dioxide emissions annually, it said. Under the current setup, FP&L has to pay more than $120 million a year to the plant, but that payment would go away if it bought it.

FPL said it would expect to shut down the Cedar Bay plant in the next two to three years.

[acme54321]

I didn't even realize that was a powerplant.  I always thought it was part of the cardboard plant.

[thelakelander]

Nope. The containerboard mill is next door.

[Jason]

Hmmmm.  I wonder how this will play into JEA's growth strategies.

[mtraininjax]

Most of FPL's plants in Florida are nuclear, so this is obviously going to help them with credits.

[thelakelander]

Hmmmm.  I wonder how this will play into JEA's growth strategies.

If shut down, it will cost the city and JEA a good chunk of money in annual taxes and fees ($11 million annually according to a 1998 article).

http://www.bizjournals.com/jacksonville/stories/1998/01/12/story1.html

[JHAT76]

Most of FPL's plants in Florida are nuclear, so this is obviously going to help them with credits.

Check my numbers but I believe that only 5 GW of FPL's roughly 25.5 GW generation fleet is nuclear.  I would say the majority of their fleet is natural gas.  Although FPL does intend to build 2 new units at it's Turkey Point facility by 2019.

This sounds more like FPL is buying their way out of an unfavorable contract.  With the drop in natural gas prices many utilities are switching to a more natural gas led portfolio.  Particularly with the current EPA pushing more emissions regulation on coal facilities. 

I would think that FPL already has or will need to build some replacement facility or sign a new contract with another facility to ensure they have the needed generation to serve their customers in the area. 

[Elwood]

The purchase of the Cedar Bay facility is just that - a buy out of a contracted purchase agreement. As for the majority of their generation being nuclear, FPL has 4 nuclear units; 2 at Turkey Point and 2 at Port St. Lucie. The majority of their generation is from a combination of oil, gas, coal fired, and single cycle/ combined cycle CT's. Also a small portion from solar.

[Overstreet]

I guess you know that this isn't the power park. That one is east of Cedar Bay. Note the lack of cooling towers.  I suspect environmentally we'd like this to happen. This one is likely older.