FMPA explores nuclear options amid rising natural gas costs

During a recent meeting of the Florida Municipal Power Agency (FMPA) board, members discussed a comprehensive 30-year energy plan that includes considerations for small modular nuclear reactors and potential nuclear expansion. The board is currently evaluating the financial implications of these options, while also acknowledging that natural gas combined cycle power plants remain the most cost-effective energy source in Florida and potentially across the nation.

The conversation also touched on the impact of the political climate on energy shipping and resource management. One board member suggested maintaining the rate stabilization fund at its current level until after the upcoming elections, citing uncertainty in the political landscape and its potential effects on natural resources.

A significant focus was placed on the volatility of natural gas prices, with members noting that for every dollar increase in natural gas prices, there is a corresponding $6 increase in the cost of 1,000 kilowatt hours of electricity. This highlights the importance of pre-purchasing gas to mitigate market fluctuations driven by international events and weather conditions. The FMPA's fleet, which is comprised of approximately 70-75% natural gas power plants, necessitates a strategy to lock in prices and provide stability for both the agency and its producers.

Overall, the discussions underscored the FMPA's commitment to strategic planning and financial prudence in navigating the complexities of energy production and pricing in Florida.