PSC turns off proposed FPL gas pipeline
by Dara Kam | October 6th, 2009The Public Service Commission turned down Florida Power & Light Co.’s request to build a $1.5 billion natural gas pipeline and asked the Juno Beach-based utility to rebid the project.
After a day discussing the issue, the four-member panel agreed unanimously to close the case.
Today’s PSC decision essentially puts FPL back to square one and orders the Juno Beach-based utility to rebid the 300-mile pipeline that would supply natural gas to two new power plants in Riviera Beach and Cape Canaveral.
FPL did not show that their $1.5 billion pipeline proposal was the most cost-effective and reliable way to get the natural gas to the plants, the PSC ruled.
FPL President Armando Olivera, who flew to Tallahassee on one of the utility’s corporate jets to attend the meeting, disagreed.
“The Commission effectively denied the clear need for this investment and required that the entire process start over in order to go forward,” Olivera said in his statement. “All the evidence indicated that the Florida EnergySecure Line would be the most cost-effective and reliable method of increasing the supply of clean natural gas for our customers, diversifying the source of natural gas production beyond the Gulf of Mexico and enhancing the reliability of the electric system that serves half the population of Florida.”
The pipeline project would also have created 7,500 jobs and generated about $400 million in property tax revenues for the state, FPL contends.
October 6th, 2009 at 4:48 pm
Something tells me that the Commissioners let all the other issues with the PSC and the FPL rate case cloud their judgement. That’s a shame because it should have been decided totally separate.
October 6th, 2009 at 4:57 pm
Very good decision. FPL lately doing some fishy business practices which we usually hear in 3rd world countries. Florida should allow other competitors to come here and start electrcity generation businesses also.
October 6th, 2009 at 5:26 pm
There is nothing that limits the opportunities for other power generation companies to build assets in Florida. A need hearing determines if more generation is required, and then FPL and competing companies submit bids to construct and operate the facilities. Progress Energy, FPL, and others all operate generation facilities in the state.
October 6th, 2009 at 5:28 pm
Read to me like FL residents were bondholders on a 40 year note…
However, we are not backed by any positions in the company NOR do we receive a coupon (dividend)…
Nor do we PAID on the bond? Sound funny?
And they wanted $1.5 B?
What a deal for FPL!
Let ME borrow $1.5 B from customers (true moxie) for a 40 year term.
Then NOT pay it back!
Incredible, just incredible.
October 6th, 2009 at 5:51 pm
This was a sound decision. The last thing Florida needs is more natural gas plants. Has everyone forgotten that natural gast was over $12 just 2 years ago? That almost brought the ratepayers to their knees until the prices fell. Its ridiculous for FPL and any other utility to begin to become so overreliant on natural gas. Its a piece of the pie, but these folks are acting like thats all they want to build.
The PSC needs to rethink all these need determination cases and reopen them.
Besides, FPL’s greed has no bounds. Good for the PSC. And good for the opponents of this project.
October 6th, 2009 at 7:45 pm
“The pipeline project would also have created 7,500 jobs and generated about $400 million in property tax revenues for the state, FPL contends.”
uhh dont you think we could have used the right now considering the economy and unemployment? way to go morons. you let politics win over the sensible thing.
October 6th, 2009 at 10:31 pm
Idiots prevail – here come the layoffs. Not to mention the reduced construction costs that would have employed the unemployed of this state.
October 6th, 2009 at 11:12 pm
FPL laid-off and cut to the bones years ago.The only guys making money are top execs and the investors.FPL has resorted to pay-offs,extortion,and intimidation their greed knows no bounds.The 1000 jobs would have went to Georgia or Alabama just like the fiasco being built in Loxahatchee.The FBI and FDLE needs to investigate the hush money given to P.W.Chamber of Commerce just for starters.
October 6th, 2009 at 11:22 pm
Hey Edward,
What genious planet are you from or are you Armando’s butt buddy? Either way you better stop sniffing glue, it’s starting to make you sound like a maroon.
Don’t forget, we are still paying FPL the rate that was set last year when oil was at $140 per barrel. Oil has been selling for half that. Sounds like greed or something of that nature…but you would not see this.
October 6th, 2009 at 11:41 pm
Hey Armando, How was the flight to Tallahasse to complain about this. You son of a bitch. Take your coporate jet and shove it up your ass. We as tax payers are tired of paying for skyrocketed utility bills. Oil prices are down now jerkoff!
October 7th, 2009 at 1:10 am
FPL sucks, dont give them anything else, and Tax the hell out of them bastards and dont let them raise the rates. The state should also tax the hell out of large companies because they have been holding floridians hostage for years and its time to turn the tables. IE.. Walmart, comcast to mention a few.
October 7th, 2009 at 2:47 am
4:57 how was the pipeline deal fishy? Give me a break. It was to supply natural gas plants that are already being built and customers wouldn’t have to pay for it for 5 years even though the construction would begin next year. The jobs and taxes would have been a welcome stimulus. The fools on here can’t get past the rate case even though the pipeline makes more sense.
October 7th, 2009 at 5:43 am
This is a political stunt to say the least. A missed opportunity that would have created a few jobs and given the much needed fillip to the region. All those who oppose FPL are LOSERS!
October 7th, 2009 at 6:43 am
Fools! This is all about Charlie Christ running for Senate. The pipeline is much-needed and the cost is minimal when spread out. Rate-payers had to pay for all of the reports and work that went into the first process – now that it is thrown out, we’ll have to pay again. I am totally for checks and balances, but Charlie and the PB Post are running a smear campaign against FPL. Charlie will be the big winner here and citizens will lose out again.
I want a modern and efficient energy infrastructure in Florida – Charlie Christ on the other hand just wants to get elected senator.
October 7th, 2009 at 7:02 am
There is no doubt Floridians are getting screwed from all angles. Charlie Crist does want to get elected and FPL wants higher rates. There are many folks that cannot afford any more rate hikes, tax hikes, etc. There are many folks unemployed. So we will create a few jobs, but at the expense of these folks? Let’s focus on reducing the burden for many and get through this difficult time. FPL has no regard for any of this. Their shareholders are number one, not the customer.