Review of 2008 Ten-Year Site Plans - Public Service Commission
Review of 2008 Ten-Year Site Plans - Public Service Commission
Review of 2008 Ten-Year Site Plans - Public Service Commission
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15 percent every year within the planning period, this figure indicates that the utilities have planned<br />
sufficient generation to meet reliability standards. As previously discussed, utilities may defer several<br />
planned capacity additions. Figure 12 below does not reflect these potential changes.<br />
Although the 20 percent reserve margin employed by FPL, PEF, and TECO provides<br />
increased reliability to the state’s system, it is paramount that, in an era <strong>of</strong> rising rates, utilities should<br />
study all options available to mitigate price increases, including possible modification <strong>of</strong> current<br />
planning criterion.<br />
Also illustrated in Figure 12 below is the contribution <strong>of</strong> dispatchable DSM (load management<br />
and interruptible load) to the region’s reserve margin. Although the FRCC currently has no standards<br />
which limit what percentage <strong>of</strong> the reserve margin can come from DSM, utilities have found that<br />
when interruptible load is called on frequently, customers are more likely to leave the program. The<br />
sudden loss <strong>of</strong> DSM participants can lead to a less reliable system, so utilities must balance DSM and<br />
generation.<br />
Coal<br />
Reserve Margin<br />
30%<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
Figure 12. Summer Peninsular Reserve Margin Projections<br />
<strong>2008</strong> 2009 2010 2011 2012 2013 2014 2015 2016 2017<br />
Without Dispatchable DSM With Dispatchable DSM<br />
Florida’s utilities proposed several coal-fired power plants in recent ten-year site plans in an<br />
effort to balance the state’s fuel supply. Fuel cost uncertainties, high capital costs, and uncertainties<br />
regarding potential expenses related to future carbon emission regulations were all cited as concerns as<br />
more than 3,500 MW <strong>of</strong> coal-fired generation additions were canceled. Despite initial opposition,<br />
Seminole Electric Cooperative received final certification <strong>of</strong> Seminole Unit 3, a 750 MW coal-fired<br />
power plant, on June 13, <strong>2008</strong>. Seminole Unit 3 has an in-service date <strong>of</strong> May 2014, and represents<br />
the only planned coal-fired generation capacity addition in Florida.<br />
<strong>Review</strong> <strong>of</strong> <strong>2008</strong> <strong>Ten</strong>-<strong>Year</strong> <strong>Site</strong> <strong>Plans</strong> - 24 -