Transcript Slide 1
Meeting the Challenge of Florida’s Energy Future Presentation to the Florida Energy Commission February 9, 2007 Vinny Dolan Progress Energy Florida Merger of Florida Progress and Carolina Power & Light in 2000 3.1M customers In Florida: 1.7M customers in 35 Florida counties 3,700 employees Over 100 years of service 40,000-mile transmission & distribution network 9,000 MW capacity 14 generating plant sites (64 units) 2 A Commitment to Excellence Safety 50% improvement since 2001 Reliability Service 25% improvement since 2000 JD Power Founder’s & EEI Edison Awards Reserves Generation Storm Response increased from 15% to 20% fleet performance among best in US recipient of record 6 EEI awards 3 Florida in a Position of Strength Prices near national average Reliability well above national average Adequate generation reserves Sensitivity to the environment Leadership in demand-side management A history of sound policy and regulation 4 Price Trend PEF Residential Price per 1,000 kWh (1983 to 2007) 160 Growth at CPI 140 120 110.34 Actual Growth 109.56 100 $ Dollars 97.78 89.11 80 83.71 80.25 60 70.56 40 20 Note: starting point is February 1983, the most recent month in which PEF's base rates were below their current level '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 5 '04 '05 '06 '07 Industry Facing Significant Challenges Continued strong growth Rising fuel prices Tightening environmental requirements Most significant infrastructure investment in decades Rising Cost Environment 6 A Balanced Solution …key tools available Demand-side management Renewable energy Nuclear Clean Coal Natural gas Transmission Technology 7 Realistically, the Move to Balance Will Take Time Near Term Medium Term Long Term 0-10 years 10-20 years 20+ years Potential Energy (MWH) Contribution Resource DSM Renewable energy Nuclear M M M L M H H H H H H H (lead time ~ 11 yrs) Clean Coal / IGCC (lead time ~ 8 yrs) Natural gas Legend: Low H L medium M high H 8 PEF’s Balanced Solution Leveraging Energy Efficiency Maximizing this cleanest, greenest resource Eliminated the need for over 1,500 MW of generation Saved enough energy to power Orlando for over 2 years Customer savings of almost $825 million since 1981 start Increasing our commitment Additional 500 MW by 2015 (almost 25% of load growth) Additional 39 new and innovative measures Increased credits 9 PEF’s Balanced Solution Promoting Renewable Energy Capturing cost-effective opportunities Serving 3% of retail energy from renewable sources Adding 115 MW e-grass Adding 13 MW landfill gas Promoting new technologies for the future Hydrogen Solar 10 PEF’s Balanced Solution Increasing Nuclear Generation Currently 15-20% of generation mix Adding 180 MW at Crystal River Fuel savings of $2.6 billion Recently announced planned unit in Levy County Need / site certification COL Construction Operation 2007 to 2009 2008 to 2011 2012 to 2015 2016 11 Policy Considerations & Closing Thoughts Build on Florida’s strengths and past success Ensure adequate, reliable power while being mindful of cost Encourage cost-effective energy efficiency and renewable alternatives Promote promising technologies for the future Facilitate the earliest availability of needed baseload Coordinate with federal initiatives to prevent undue cost burden Progress Energy stands ready to help develop an energy plan that works for Florida 12