| Florida Municipal Power Agency: Nimble Power |
| Utility | |||
| Written by Meghan Flynn | |||
| Thursday, 01 May 2008 | |||
 Despite the myriad of challenges in the electric utility industry, this municipal power agency is growing along with the population it serves.
Serving towns ranging from the heart of the panhandle to Key West, FMPA is one of the most reliable electric power providers in the state. Composed of a group of locally owned and operated electric power systems, this year the organization is celebrating its 30th anniversary.  Roger Fontes, general manager and CEO FMPA expects to recover only about 30% of the costs it lost when it abandoned its coal plant plans and began planning a natural gas plant instead. Fontes said a high level of government involvement is part of doing business as a utility company and that 180-degree turns in government policy are not uncommon. “From our reliability standards and how we operate our power grids right through to land permits, air emissions, and water emissions, the government is involved at every step,” said Fontes. “Successfully navigating this governmental process is key to ensuring cost-effective and reliable power to our customers for generations.” Government regulation also compounds the cost of building a power plant, which can take several years. Sometimes, a plant built today won’t start bringing in money for a decade, which requires large up-front capital investments. Today, FMPA has adequate electric supplies, but population projections signify that won’t be enough. In 2005, the US Census predicted that Florida will pass New York as the third most populous state in the country by 2011, and, by 2030, Florida will experience a further 80% population growth. Diversifying Today, FMPA is using a mix of renewable and non-renewable energy sources to cope with its electric demand. Fontes said solar energy is the future, at least for the Sunshine State, because the long-term costs of operating photovoltaic systems are minimal compared to natural gas. “When we look at a new plant, we evaluate the least costly option over a period of time—not only what a new plant will cost to install but also what it will cost to operate,” Fontes explained. Most alternative energy sources, especially solar power, are more expensive at the outset and are far less expensive to run in the long term. The problem, of course, is that it takes so long for utilities like FMPA to see returns, so they are forced to raise rates to their customers in the short term. Fontes said that FMPA is careful in the investments it makes and is looking at two options for photovoltaic. In one option, the panels are all in one location; in the other, they are dispersed throughout several individual cities. “We are going to try both on a small scale at first to get information about whether one strategy is better than the other and why,” he said. He explained that, being a nonprofit organization, FMPA must carefully budget its resources. It does not have money to invest in research; instead, the agency invests in safety and training. That has paid off: FMPA has never experienced a power outage due to a problem with its facilities. And an $180,000 training budget means its 78 employees can keep on top of the emerging technologies in the industry. “The utility business is very well known for innovation. In every generation, there is an upgrade, so this business also focuses on training,” said Fontes. “We want our employees to be the best in the business so we can serve our communities better.” Fontes, who has been in the industry for 38 years, is cautiously optimistic about the future. The current climate, so to speak, has people thinking more about renewable energy, but there is a lot we still don’t know. “Only time will tell whether or not the new technologies will ultimately be as reliable as those we’re using today. Solar power, for example, has fewer moving parts and a lower operating cost but requires gallium, which is an exotic metal. Maybe we’ll discover that there’s a limited supply of that for us to use,” he said. Although the future of energy is uncertain, it seems likely that FMPA’s proven record of reliability and adaptability will carry it through. |
|||
| < Previous Story | Next Story > |
|---|
© 2008 American Executive - RedCoat Publishing. All rights reserved.
American Executive is a RedCoat Publishing publication.
American Executive is a RedCoat Publishing publication.
