The Florida Public Service Commission (FPSC) has approved a 20-year power purchase agreement (PPA) where Florida Public Utilities Co. (FPU), a subsidiary of Chesapeake Utilities Corp. (NYSE: CPK), will receive power from a 20-MW combined heat and power plant (CHP) in Nassau County, Florida. Eight Flags Energy is developing the project.
The project is expected to reach commercial operations in July 2016.
The FPSC also approved the extension of an existing renewable energy power purchase contract between FPU and Rayonier Performance Fibers. Boilers at the Rayonier site provide steam and generate electricity used to operate the cellulose specialties production facility, and Rayonier sells the excess electricity generated to FPU. The original contract has been in place and produced savings for FPU customers for two years. The approved extension will extend the term of the original contract for an additional 14 years, from October 2022 to September 2036.
The CHP facility, will be fueled by natural gas, and will be built on a site leased from Rayonier Performance Fibers.
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