Florida’s onerous restrictions on new power plant constructionaren’t holding back Calpine Corp. The company announced it hassigned a contract to supply power from a new 540 MW combined cycleplant to Tampa-based Seminole Electric Cooperative.

The Osprey Energy Center would be built alongside Calpine’sexisting Auburndale, FL 150 MW cogeneration plant. The contract tosupply power to the 10-member cooperative will support Calpine’sPetition for Determination of Need, currently pending before theFlorida Public Service Commission. “We are hoping it will satisfy theCommission’s criteria” for all power generated in the state to bededicated to serving utilities and customers in the state. It is thesame criteria which effectively blocked Duke Energy’s plans for a 514MW plant near New Smyrna Beach (see Daily GPI, Oct. 6).

While the contract grants the Seminole cooperative access to allthe power generated at the new plant, Seminole is not required totake it all. The cooperative currently operates a 1,250 MWcoal-fired power plant, has a 14 MW share in a nuclear plant and isbuilding another 500 MW combined cycle plant. Seminole also buyspower from other IPPs and sells into the market. The cooperativemembers serve 680,000 retail customers in Florida.

A Seminole spokesman said the contract is designed to coverexpanded power needs expected to develop over the next severalyears. The Calpine plant is targeted for completion in June, 2003.

Calpine’s John Flumerfelt said the company is pursuing the samestrategy of finding a Florida purchaser for the output of anadditional project currently in the works, the Blue Heron EnergyCenter, which would supply 1,080 MW. “We hope to have a petition ofneed approved by the end of this year. If we are not successful, wewill just have to wait for the legislature.”

Flumerfelt said Calpine is optimistic a new legislature mayrelax the rules on new generation facilities. “There could be asmuch as a 60% swing in the state legislature” in the upcomingelection, Flumerfelt said. “There could be a lot of new faces. Wethink this is a good thing.”

Meanwhile, a governor’s commission set to investigate theFlorida energy situation is headed toward issuing an interim reportearly in the winter, which may separate out the issue of acompetitive bulk power market from retail issues and set it on afaster track. The legislature could debate that issue as early asMarch, Flumerfelt said.

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.