Florida Southeast Connection Florida Gas Utility Bob Sharra, NextEra Energy. June 25, 2014

Transcription

1 Florida Southeast Connection Florida Gas Utility Bob Sharra, NextEra Energy June 25, 2014

2 Agenda Project Need, Background and Introduction Southeastern U.S. Market view Florida Power & Light Request for Proposal Florida Southeast Connection Overview

3 The new pipeline system is a $3.6 billion private investment in Southeast U.S. infrastructure Transco Hillabee Expansion Project Station 85 Sabal Trail Transmission SESH FGT GULFSTREAM Central Florida Hub Florida Southeast Connection

4 The Southeast must continue to engage in long-term planning to ensure the region s energy future This new infrastructure will benefit utility, industrial and commercial customers by helping ensure reliable access to low-cost, clean-burning, domestic fuel Benefits of the new natural gas pipeline system Meeting the future energy needs of the region s economy Improving the reliability of critical natural gas transportation system Expanding the access to onshore sources of fuel, helping reduce reliance on regional natural gas production facilities in the Gulf of Mexico and supply interruptions caused by tropical weather or other events The entire pipeline system will support an estimated 8,600 jobs during construction In Florida alone, generates new tax revenue for local schools and governments estimated at more than $1 billion over 60 years

5 Expanding Role of Natural Gas Natural gas prices are historically low, encouraging increased use of the clean, affordable, American-produced fuel To meet power generation needs as cost-effectively as possible, the region needs more natural gas As economies continue to rebound, demand for electricity and natural gas will continue to grow As a key anchor shipper, FPL is one of America s leading consumers of natural gas used for power generation Meets region s need for additional natural gas in the near future

6 Natural gas is a critical fuel for Florida s economy Natural Gas We all love renewables especially solar but the reality is, the sun isn t always shining We have to rely on power plants that can generate electricity 24-7 Nearly 68% of the electricity Floridians use is generated by natural gas power plants

7 Florida has no storage capacity and almost no natural gas production Florida s Natural Gas Infrastructure

8 There two major pipelines serving central and southern Florida are at capacity or nearly fully contracted Florida s Natural Gas Infrastructure

9 The combined pipeline system represents a $3.6 billion private investment in Southeast U.S. infrastructure Transco Hillabee Expansion Project SESH Station 85 FGT Sabal Trail Transmission GULFSTREAM Central Florida Hub Florida Southeast Connection FPL issued a Request for Proposal ( RFP ) in December 2012 for new gas transportation; bids were submitted April 3, 2013 FPL selected Sabal Trail Transmission, LLC (Sabal Trail) for Northern Pipeline and Florida Southeast Connection, LLC (FSC) for Southern Pipeline FPL requested and received Florida PSC order approving its RFP selections and finding that entering into contracts for new capacity is prudent Today s approval of FPL s investment in natural gas infrastructure will benefit all Floridians by securing the state s energy sector. -- PSC Chairman Ronald A. Brisé, 10/24/13

10 Florida Southeast Connection Project Overview Approximately 127 miles of 36 & 30 pipeline Runs through five counties: Osceola, Polk, Okeechobee, Martin and St. Lucie Originates at Sabal Trail Transmission s Central Florida Hub in Osceola County Terminates at FPL s Martin Clean Energy Center in Martin County Approximately 70% of pipeline is co-located in or adjacent to existing linear facilities Commercial Operation: May 2017

11 Feedback is Valued Florida Southeast Connection Website FERC Website