Wholesale electricity costs will decrease significantly – by as much as 30 percent to 40 percent – for Florida Municipal Power Agency (FMPA) members in the coming years, as debt is paid off on four of its power supply projects, the agency announced on April 21.
FMPA is a wholesale power company owned by – and achieving economies of scale for – 31 community owned electric utilities. The members of FMPA serve approximately 2 million Floridians.
FMPA staff predicted at the agency’s Board of Directors meeting showing that debt will be paid off on two power projects by October 1, 2019, and two other projects will be paid off by 2027.
“We only have four more debt payments before the debt of the Stanton and Tri-City [coal-fired plant] projects will be paid off,” said FMPA CEO Nicholas Guarriello. “When these projects were originally financed in the mid-1980s, our plan was to pay them off in 2019. We are about to achieve that goal, and it feels good to help lower costs for our municipal utility members.”
When the debt is paid off, assuming the plant operates as much as it does now, wholesale power costs would be cut by 30 percent to 40 percent.
Seven municipal electric utilities that receive power from these projects will realize significant savings on their wholesale power costs beginning in 2019. The cities include Fort Pierce, Homestead, Key West, Kissimmee, Lake Worth, Starke, and Vero Beach.
Further cost reductions are likely as two other FMPA power projects will be paid off in the next 11 years. FMPA’s St. Lucie Project [ownership in a nuclear plant] will be paid off in 2026, and the Stanton II Project [also coal-fired] will be paid off in 2027. These projects will see cost reductions that are similar or even greater.