Subject:
Title
Agreement with Duke Energy Florida for large generator interconnection.
label
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of Agreement with Duke Energy Florida (DEF) for large generator interconnection.
• Execution of the agreement by both parties is necessary before the Federal Energy Regulatory Commission (FERC) considers and approves County proposed changes regarding indemnification and self-insurance.
• Electrical power utility interconnection agreements are standardized and approved by FERC. Any proposed changes require FERC review and approval.
• An interconnection agreement is necessary to export power generated by the Pinellas County Waste-To-Energy (WTE) Facility to the DEF distribution power grid.
• Expedited document approval is necessary to provide the Federal Energy Regulatory Commission (FERC) the required 60-days to review and approve. FERC approval is necessary on or before December 31, 2024.
• In the interest of time, the County shall execute the document first and DEF second.
Strategic Plan:
Practice Superior Environmental Stewardship
3.3 Protect and improve the quality of our water, air, and other natural resources.
3.4 Reduce/reuse/recycle resources, including energy, water, and solid waste.
Summary:
Approval and execution by the County Administrator of Agreement with Duke Energy Florida (DEF) for large generator interconnection.
Background/Explanation:
The Solid Waste WTE Facility generates approximately 75MW of power when operating at 100% efficiency. Since 1984, the County and DEF have co-terminus Interconnectivity and Power Purchase Agreements permitting the WTE Facility generated power to be sold to DEF. Both agreements expire on December 31, 2024.
The Pinellas County WTE Facility is a FERC designated ‘Qualified Facility (QF)’, which permits the sale of power to any energy utility. The current DEF PPA standard offer agreement is not economically attractive. Therefore, the decision has been made to sell generated power using a real-time energy broker to energy utilities demanding power. To do so requires an interconnectivity agreement with DEF to connect generated power to the electrical power grid. If the County desires to enter a PPA with DEF at later date, the interconnectivity agreement would be necessary.
Electrical power utility interconnection agreements are standardized and approved by FERC. Any proposed changes require FERC review and approval. An interconnection agreement is necessary to export power generated by the WTE Facility to the DEF distribution power grid. Expedited document approval is necessary to provide FERC the required 60-days to review and approve. FERC approval is necessary on or before December 31, 2024.
To provide time for the FERC 60-day review and the final interconnectivity agreement on or before December 31, 2024, the County is recommended to first review and execute the agreement. DEF will execute second and submit the interconnection agreement proposed changes to FERC with a transmittal letter (see attached). If the December 31, 2024, deadline is missed, no power will be generated by the WTE Facility. Trash would be incinerated, and the process steam vented to the atmosphere.
Fiscal Impact:
There is no fiscal impact as this is an administrative document which provides for the connection of generated power to the electrical grid.
Delegated Authority:
Authority for the County Administrator to sign this Agreement is granted under Code Section 2-62 (a)(5).
Staff Member Responsible:
Paul Sacco, Director, Solid Waste
Partners:
Duke Energy Florida
Attachments:
Pinellas County WTE Facility Large Generator Interconnection Agreement (LGIA)
DEF LGIA Transmittal Letter
Indemnity Resolution 06-70