FPL Offers $451M for Coal-Fired Cogeneration Power Plant

Indiantown Cogeneration Plant in Florida

Florida regulators are considering a proposal by Florida Power & Light (FPL) to buy a coal-fired power plant for $451 million in a deal that would cut both emissions and money spent.

The Florida Public Service Commission on Oct. 3 is set to begin a two-day hearing on FPL’s proposal to buy the 330-MW Indiantown Cogeneration power plant from Calypso Holdings LLC, according to The News Service of Florida. FPL claims a power purchase agreement (PPA) with the plant requires the utility to pay above-market prices. Buying the plant would save customers $129 million in long-term savings, the article said. FPL also said it would reduce the electricity output of the plant, cutting plant emissions.

The Office of Public Counsel, which represents consumers on utility issues, “does not believe that FPL has met its burden to prove that the method used to eliminate the PPA is the most cost effective one available, that the proposed buyout price is the lowest possible buyout price, and that this transaction is in the best interest of FPL’s customers, and thus is prudent,” according to a released document.

This deal is similar to one approved in 2015 for FPL to buy the Cedar Bay coal-fired power plant, which the article said FPL cited in its appeal for the PSC’s approval.

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