FPL Seeking Approval to Acquire and Phase Out Indiantown Cogeneration

The buyout proposal is consistent with FPL’s strategy to deliver affordable clean energy to its customers.
Indiantown Cogeneration

Indiantown Cogeneration

Juno Beach, Fla.—Florida Power & Light Company (FPL) has filed a petition with the Florida Public Service Commission (PSC) requesting approval to purchase a coal-fired power plant located in Indiantown, Fla., with which FPL has an existing long-term contract. If approved, the proposal is projected to save FPL customers an estimated $129 million as well as impede more than 657,000 tons of carbon dioxide emission annually.

The 330-megawatt Indiantown Cogeneration facility is currently owned by Calypso Energy Holdings LLC. If the proposal is approved, FPL plans to immediately reduce the plant’s operations and, eventually, phasing it out of service. This would be the company’s second coal power plant in two years bought to phase out.

“We are delivering power to our customers that is cleaner and more reliable than ever before at a price that is lower than it was 10 years ago and among the lowest in the nation. That is no accident–it’s because of our forward-looking strategy of smart investments that improve the efficiency of our system, reduce our fuel consumption, prevent emissions and cut costs for our customers,” said Eric Silagy, president & CEO of FPL. “While many years ago it made sense to buy this plant’s power to serve our customers, we’re now able to purchase the facility and phase it out of service, preventing potentially harmful carbon emissions while saving our customers millions of dollars.”

FPL’s proposal offers to purchase the ownership interest in the Indiantown Cogeneration facility for $451 million (including existing debt). Furthermore, FPL is requesting PSC approval of the purchase by December 2016. Over the remaining nine years of contract, FPL projects $129 million in customer savings.

Moreover, immediately after taking ownership, FPL plans to decrease the plant’s operations so that it operates at most 5 percent of the time—this move will prevent more than 657,000 tons of carbon dioxide emissions annually. EPA estimates that this amount of carbon reduction is similar to saving 74 million gallons of gasoline or switching more than 23 million incandescent light bulbs to energy-efficient compact-fluorescent lights yearly.