Florida Gas Transmission received the go-ahead for constructionof its Phase IV expansion to serve investor-owned utilities (IOUs)and industrials in Florida, minus capacity that would have servedthe state’s first merchant power plant.

In its order (CP99-94) approving the downsized project, FERC notedthat FGT had amended its plan and cut facilities for the New SmyrnaBeach Lateral that would have served a trail-blazing 514 MW merchantpower plant proposed by Duke Energy and approved by the Florida PublicService Commission. The PSC’s certification of the power plant wasappealed by the IOUs in a case that currently is lodged in the stateSupreme Court. A Duke spokesman said the company was confident its NewSmyrna Beach Power Plant ultimately would be approved, but it hasdropped back from FGT’s Phase IV expansion due to go into service inMay, 2001 to its Phase V expansion due in 2002 (see Daily GPI, Dec. 2).

FGT’s downsized Phase IV expansion now will include about 127miles of various diameter pipe, or 72 miles less than originallyplanned, plus compression, mainly to serve IOU Florida Power &Light’s repowered oil-to-gas-fired 1,500 MW facility in Ft. Myers,FL. (See Daily GPI, Dec. 3, 1998)

The IOUs have claimed the PSC does not have the authority tocertificate a merchant power plant. The court heard oral argumentson the case in early February and should be issuing a decisionsoon. After that the case goes to the Florida governor and cabinetfor review. “We are confident the project will be approved,” saidDuke spokesman Rick Rhodes. “Studies have shown a need in the statefor 11,400 MW of new capacity over the next 10 years.”

The certificate voted out by FERC Wednesday included review ofenvironmental aspects, and rejected pleas for major re-routing. TheCommission had issued a preliminary determination last July approvingthe rate aspects of the project, which at the time was billed as a207-mile, 327,000 MMBtu/d, $160 million expansion (see Daily GPI, July 29, 1999). It was shortly after thatthat FGT said it was cutting the New Smyrna Beach Lateral.

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