FPL power plant deal goes to appeals court

BY THE NEWS SERVICE OF FLORIDA

A group of major electricity users is appealing a decision by the state Public Service Commission that would lead to Florida Power & Light buying --- and ultimately shutting down --- a coal-fired power plant in Jacksonville. The Florida Industrial Power Users Group took the issue last week to the 1st District Court of Appeal, according to commission and court websites. The power users group, which frequently takes part in utility-regulatory cases, argued at the Public Service Commission against Florida Power & Light's $520.5 million deal to buy the Cedar Bay power plant near the St. Johns River. At least in part, the group argued that FPL agreed to pay too much for the plant. The Public Service Commission signed off on the deal Aug. 27 after FPL reached a settlement agreement with the state Office of Public Counsel, which represents consumers in utility issues. The unusual deal stems from a long-term contract that FPL signed in 1988 to buy power from the Cedar Bay plant. The utility argues that it can now generate electricity at a lower cost than what the contract requires it to pay. As a result, FPL reached a deal to buy the 250-megawatt plant from CBAS Power Holdings LLC, end the contract to purchase electricity and shut down the facility. The utility argued that the moves will lead to $70 million in future savings for customers. In a written order after the Aug. 27 vote, the Public Service Commission said it found that the settlement was "reasonable for all parties, creates customer savings, includes additional protections for customers, and avoids the long-term costs" of FPL's contract to buy power from the plant.