FPL Fuel Efficiency Investments Expected to Yield Major Cost Savings

Customers have already saved nearly $3 billion since 2002 as a result of investments in cleaner, more efficient power plants

June 18, 2009 -- JUNO BEACH, Fla. – Florida Power & Light Company’s investments in making its power plants among the cleanest and most efficient in the country have saved customers nearly $3 billion in fuel costs since 2002, and continued investment is expected to yield customer savings totaling $1 billion every year beginning in 2014.

Article continues below...

The savings to date have been driven by a wide array of efficiency projects that result in lower fuel use. For example, FPL has converted older, oil-fired power plants, such as the Fort Myers and Sanford plants, to more efficient natural gas combined-cycle technology, while adding new, similar generating capacity at its Martin, Manatee and Turkey Point sites.

Looking forward, two new power plants, West County units 1 and 2, which are scheduled to come online in Palm Beach County in 2009, along with West County unit 3 in 2011, will be among the most efficient of their kind in the nation, using combined-cycle technology that is 30 percent more efficient than conventional natural gas generation. Likewise, the two plants FPL plans to modernize in Riviera Beach and Cape Canaveral will be 33 percent more efficient once they come back online.

By 2014, cumulative fuel savings since 2002 from investments in fleet generation efficiency will total more than $7 billion. Using a 2002 baseline, by 2014 these ongoing investments will yield an approximately 20 percent improvement in the efficiency of FPL’s power generation from oil and natural gas, and customer savings are expected to total more than $1 billion annually.

“When our power plants operate more efficiently, they use less fuel. And when our plants use less fuel, customers save. It’s that simple,” said Marlene Santos, FPL vice president of customer service. “While we can’t control fuel prices, we shop aggressively for the most economical options. This, combined with the benefits of our continuing investments in power plant efficiency, is keeping our customer bill as low as possible.”

In fact, FPL’s typical residential customer bill currently is the lowest of Florida’s 54 utilities, according to the latest data from the Florida Municipal Electric Association. Compared to the average typical 1,000 kilowatt-hour residential electric bill in Florida, FPL customers pay $25 less per month, or about $300 less per year.

“We know that means a lot to our customers, especially in this difficult economy,” Santos said.

FPL’s rate proposal was filed with the state’s Public Service Commission (PSC) earlier this year. Combined with projected fuel cost reductions and improvements in fuel efficiency, it will result in even lower bills beginning in January 2010 while we continue to invest in fuel efficiency measures. The PSC is conducting hearings on the proposal in cities around the state this week and next.

Under FPL’s rate proposal, if approved, the typical 1,000 kilowatt-hour residential bill would decrease by about $5 monthly from approximately $109 in December 2009 to about $104 on Jan. 1, 2010. This reflects an increase in base rates that is more than offset by savings from projected reductions in the cost of fuel and improvements in fuel efficiency.

“While we’re mindful of the difficult economy, we’re also responsible for maintaining and making long lead-time investments in the electrical infrastructure that will continue to reduce costs over the longer term,” Santos said. “Through our proposed investments, we’ll continue to make our infrastructure stronger, smarter, cleaner and even more efficient.”

For more information, visit www.FPL.com/ourcommitment.

Source: Florida Power & Light Company (FPL)