FPL filed the request with the Florida Public Service Commission (PSC) to buy the Indiantown Cogeneration plant, which is currently owned by Calypso Energy Holdings LLC. FPL has an existing long-term contract with the plant and the purchase is expected to save customers an estimated $129 million. The PSC approved the power purchase agreement between FPL and the Indiantown Cogeneration facility in 1991 that does not expire until 2025. The contract was based on the cost of power at the time, but FPL said it can generate electricity at a much lower cost today.
FPL proposes to purchase the ownership interest in the plant for $451 million (including existing debt) by December 2016. Over the remaining nine years of the contract, FPL projects the $129 million in savings. The utility then plans to reduce operations immediately upon ownership so that it operates no more than 5 percent of the time to prevent carbon dioxide emissions. FPL expects to operate the plant minimally through 2018 as needed. After the natural gas-fired FPL Okeechobee Clean Energy Center begins operations in 2019, it is believed the Indiantown plant will no longer be needed for operations.