Florida Electric Utilities Plan More Than $6 Billion of New Coal-Fired Generation

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Researched by Industrial Info Resources (Sugar Land, Texas). The price of fuel is one of the primary factors affecting the type of generating unit added by an electric utility. Over the past several years, utilities across the nation, and within Florida, have selected natural gas-fired generation as the dominant source of electricity. But with gas supply and price issues along with increasing worldwide demand, it is not surprising that the energy industry is once again taking a closer look at coal-fired power plants and considering the abundance and lower price of coal in the U.S.

Florida Power & Light (Juno Beach, Florida), a subsidiary of FPL Group, Incorporated (NYSE:FPL) has announced plans for a $2 billion, 1,700-megawatt Saint Lucie County Coal-Fired Power Station (Port Saint Lucie, Florida). The facility is expected to consist of two 850-megawatt steam turbine/generator sets, and two supercritical coal-fired boilers. WorleyParsons, Limited (Reading, Pennsylvania) is providing engineering services for the plant. Construction is scheduled for 2008, with project completion by 2012.

FPL is not the only energy company exploring the development of coal-fired generation in Florida. Seminole Electric Cooperative, Incorporated (Tampa, Florida) is also planning to spend $1.2 billion on a Unit #3 addition at the Seminole Generating Station (Palatka, Florida). Burns & McDonnell (Kansas City, Missouri) is designing the 720-megawatt coal addition, scheduled for kick off in the last quarter of 2008.

A group of power providers such as the JEA (formerly Jacksonville Electric Authority) (Jacksonville, Florida), Florida Municipal Power Agency (Orlando, Florida), and the Reedy Creek Improvement District (Orlando, Florida) have joined to form the North Florida Power Projects (Jacksonville, Florida) for and plan to construct an 800-megawatt pulverized coal unit in Perry, Florida, to be complete by mid-2010.

The Orlando Utilities Commission (OUC) (Orlando, Florida) and Southern Company Generation (Wilsonville, Alabama) are progressing with a cleaner burning technology with their project. The two energy companies have joined to construct a 285-megawatt addition unit at the Stanton Energy Center (Orlando, Florida) using Kellogg Brown & Root, Incorporated (Wilsonville, Alabama) technology, the Transport Reactor Intergrated Gasification Combined Cycle. The $600 million project is scheduled to start construction in 2006, with an estimated four years for completion.

Gainesville Region Utilities (Gainesville, Florida) is also studying the possibility of investing $500 million by adding a 220-megawatt unit at the Deerhaven Power Station (Gainesville, Florida) using either an atmospheric circulating fluidized-bed (ACFB) or integrated gasification combined cycle (IGCC) by 2011.

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