In its order (CP99-94) approving the downsized project last week, FERCnoted that FGT had amended its plan and cut facilities for the New SmyrnaBeach Lateral that would have served a trailblazing 514 MW merchant powerplant proposed by Duke Energy and approved by the Florida Public ServiceCommission. The PSC’s certification of the power plant was appealed bythe IOUs in a case that currently is lodged in the state Supreme Court.A Duke spokesman said the company was confident its New Smyrna Beach PowerPlant ultimately would be approved, but it has dropped back from FGT’sPhase IV expansion due to go into service in May, 2001 to its Phase V expansiondue in 2002 (see NGI, Dec. 6).

FGT’s downsized Phase IV expansion now will include about 127 milesof various diameter pipe, or 72 miles less than originally planned, pluscompression, mainly to serve IOU Florida Power & Light’s repoweredoil-to-gas-fired 1,500 MW facility in Ft. Myers, FL. (See NGI, Oct.5, 1998)

The IOUs have claimed the PSC does not have the authority to certificatea merchant power plant. The court heard oral arguments on the case in earlyFebruary and should be issuing a decision soon. After that the case goesto the Florida governor and cabinet for review. “We are confident the projectwill be approved,” said Duke spokesman Rick Rhodes. “Studies have showna need in the state for 11,400 MW of new capacity over the next 10 years.”

The certificate voted out by FERC Wednesday included review of environmentalaspects, and rejected pleas for major re-routing. The Commission had issueda preliminary determination last July approving the rate aspects of theproject, which at the time was billed as a 207-mile, 327,000 MMBtu/d, $160million expansion (see NGI, Aug. 2, 1999).It was shortly after that that FGT said it was cutting the New Smyrna BeachLateral.

Ellen Beswick

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