This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

As FPL Continues To Reduce Oil Consumption By Investing In Natural Gas Power Plants, The Company Issues RFP To Bring Third Major Natural Gas Pipeline Into Florida

Stocks in this article: NEE

FPL is currently investing to modernize three old, oil and gas-fired power plants into high-efficiency natural gas energy centers that will be approximately 33 percent more efficient and 90 percent cleaner than the facilities they replace. The three new plants being built are projected to effectively pay for themselves over their operational lifetimes with more than $1 billion in net customer savings compared with any other available generation options to meet future needs. The net customer savings reflect the expected savings from the plants' advanced fuel efficiency. FPL believes a new pipeline is the best option to fuel these and FPL's existing natural gas plants in the near future as the electricity needs of FPL's customers grow.

The proposed new "Southeast Pipeline" will provide 400,000 MMBtu per day, or approximately 400 million cubic feet per day, of natural gas capacity for FPL beginning in 2017, increasing in capacity in future years. It will be composed of two segments:

  • The "Florida Interstate Connection" and "Central Florida Hub" comprise the upstream pipeline project, which will originate at an existing hub in western Alabama, run east and then south, ending at a new hub to be built in Central Florida that will allow the new pipeline to interconnect with Florida's existing pipeline systems.
  • The "Florida Southeast Connection" is the downstream pipeline project, which will originate at the new Central Florida Hub and connect with FPL's system in Martin County, Fla.

Approximately four-fifths of the roughly 700-mile distance from western Alabama to FPL's Martin County plant would be covered by the upstream Florida Interstate Connection segment with the other one-fifth covered by the downstream Florida Southeast Connection segment. Interested companies can bid on one or both of the segments. The specific routes will be selected and proposed by companies submitting bids. FPL will oversee a fair, competitive RFP evaluation process that will select the best option or options for FPL customers.

As part of the evaluation process, FPL plans to consider a self-build alternative for the downstream Florida Southeast Connection segment. The self-build alternative, if found to be in the best interest of FPL customers, would be owned and operated by a NextEra Energy, Inc. company. No consideration is being given to an FPL self-build alternative for the upstream Florida Interstate Connection and Central Florida Hub portion. However, the cost to build a pipeline project of this size will be substantial, and the completion schedule is critical. To facilitate timely construction, NextEra Energy will be prepared to discuss financial involvement in support of a selected option. FPL customers would not provide funding nor see their bills impacted by this in any way.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs