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FP&L Plans 3,900 MW of Gas, Coal-Fired Power, Issues RFP for Competing Bids

Florida Power & Light Co. (FP&L) has issued a request for proposals (RFP) for firm capacity and up to 3,900 MW of power with commencement of deliveries beginning June 1, 2009.

In issuing a notice regarding its RFP, the company outlined its future power needs and identified FP&L's proposed projects, in accordance with Florida Public Service Commission (PSC) rules. The company said it plans to add capacity by either building its own plants or purchasing power from other companies, selecting whichever is the best and most cost-effective way to meet customers' needs.

FP&L's self-build options call for adding four new generating units as outlined in its annually updated, 10-year plan, which was filed with the Florida PSC in April 2005. The first two 1,100 MW natural gas-fired, combined-cycle generating units in western Palm Beach County would be operational in 2009 and in 2010. These units would be followed by two 850 MW advanced technology coal generating units, which are proposed to be located in southwestern St. Lucie County in 2012 and 2013. The four planned units would be capable of serving 800,000 homes and businesses.

Using a competitive bidding process, FP&L is seeking proposals from other companies to evaluate against its proposed projects. The 2005 two-part RFP seeks alternatives to FP&L's western Palm Beach County projects by Nov. 9 with a final decision by early 2006. Part two of the RFP includes preliminary information on FP&L's 10-year projected resource needs, as well as FP&L's need for fuel diversity. An RFP supplement will be issued in mid-2006 seeking competitive bids for the longer term resource requirements and fuel diversity needs.

"Responding to growth and maintaining safe and reliable service by selecting the best and most cost-effective power resources for customers continues to be a priority for our company," said FP&L President Armando Olivera. "Earlier this summer, we completed new plants in Manatee and Martin counties that added 1,900 MW to meet customer needs. We also started construction on a 1,100 MW plant in Miami-Dade County that will begin serving customers in 2007."

FP&L's two proposed natural gas-fired combined-cycle units and its two proposed advanced technology coal-fired units were selected to help maintain a balanced fuel supply for FP&L customers. This selection was the result of FP&L's integrated resource planning process, involving the analysis of many potential FP&L projects and sites, the company noted. The selection process addresses many factors, including the proximity of sites to transmission lines, fuel pipelines and railroad lines, for example, while also respecting and remaining compatible with the surrounding regions' environment and existing land uses.

"In the case of each of the projects, we are committed to an ongoing community outreach and dialogue with neighbors, which we began earlier this year. By doing so, we believe we can better align the benefits of these options with the interests and priorities of the communities we serve," Olivera said.

Olivera also said FP&L will continue its commitment to conservation programs as well as load management programs that help meet peak periods of high electricity use.

"This summer's record breaking heat and high customer demand has resulted in a number of new peaks on our system, including a new all-time peak of 22,361 MW set [Wednesday]," Olivera said. "While we need to plan for the future, we want to urge our customers to use energy wisely right now to help moderate their electricity bills."

Over the past two decades, FP&L customers have helped defer the need for 10 power plants by adopting cost-effective conservation measures and by participating in voluntary programs where power to certain appliances can be automatically reduced at peak periods in return for a credit or discount on monthly bills. FP&L plans to continue that effort by deferring yet two more power plants in the coming decade. The company also offers customers renewable "green power" options as an alternative to building new plants.

Potential bidders interested in submitting proposals in response to FP&L's RFP may obtain further information by visiting FPL's web site at http://www.FPL.com/2005rfp, by contacting FP&L's RFP contact person Steven_Scroggs@fpl.com or by calling (305) 552-4199.

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