FP&L is obligated to buy power from the 250-MW Cedar Bay Generating Plant through 2024 under a long-term contract started in 1988. The contract was based on the cost of power at the time, with fixed payments for capacity and operating and maintenance expenses currently totaling more than $120 million a year with annual increases until 2024.
In March, the utility petitioned the Florida Public Service Commission with an initial proposal, then refined it with the Office of Public Counsel. In July, the revised proposal was filed, and the PSC approved it today.
FP&L said upon taking ownership of the plant, the utility will terminate the power purchase contract and reduce operations by 90 percent with the intention of phasing it out by 2017. The plan is expected to save customers over $70 million and cut carbon emissions.