Subject:
Title
Agreement with Seminole Electric Cooperative for purchase and sale of electricity from qualifying cogeneration or small power production facility
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Recommended Action:
Recommended Action
Approval of the agreement with Seminole Electric Cooperative (SEC) for purchase and sale of electricity from qualifying cogeneration or small power production facility
• Execution of the agreement is necessary sell power, generated by the County’s Solid Waste waste-to-energy facility to SEC.
• As a Federal Energy Regulatory Commission qualified facility, the County can sell power to any electrical power utility.
• The County executed a similar agreement with Duke Energy Florida (DEF) on November 19, 2024.
• This agreement provides for the sale of power, not sold on the open market, at the SEC advertised as-available rate for that specific hour of the day.
• Having agreements with both SEC and DEF provides options for sale of power at the best advertised rate.
• The agreement will be in effect for one year from the effective date and can be renewed for successive one-year periods.
• Revenue generated by electricity sales is budgeted in the Fiscal Year (FY) 2025 Adopted Annual Operating and Capital Budget, in the Solid Waste Revenue and Operating Fund, in the amount of $12,358,760.00, and is included in the FY26 Proposed Budget in the amount of $14,341,340.00.
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Strategic Plan:
Resilient Infrastructure and Environment
1.2 Maintain and enhance County infrastructure
Smart Service Delivery
4.4 Pursue continuous improvement
Summary:
Execution of the Agreement is necessary sell power, generated by the County’s waste-to-energy (WTE) facility to SEC. This Agreement provides for the sale of power, not sold on the open market, at the SEC advertised as-available rate for that specific hour of the day.
Background/Explanation:
The WTE facility generates approximately 75MW of power when operating at 100% efficiency. Since 1984, the County and DEF had a co-terminus Interconnectivity and Power Purchase Agreements permitting the WTE Facility generated power to be sold to DEF. Both agreements expired on December 31, 2024.
The 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 into a PPA with DEF at later date, the interconnectivity agreement would be necessary.
The County executed as-available power and interconnectivity agreements with DEF in November 2024. Having agreements with both SEC and DEF provides options for sale of power at the best advertised rate.
Fiscal Impact:
Revenue generated by electricity sales is budgeted in the FY25 Adopted Annual Operating and Capital Budget, in the Solid Waste Revenue and Operating Fund, in the amount of $12,358,760.00, and is included in the FY26 Proposed Budget in the amount of $14,341,340.00.
Revenue from sales to SEC and DEF will be generated by power not successfully brokered on the open market at a rate greater than the advertised as-available rates from either SEC or DEF.
Staff Member Responsible:
Paul Sacco, Director, Solid Waste
Partners:
Seminole Electric Cooperative
Attachments:
Agreement with Seminole Electric Cooperative for purchase and sale of electricity from qualifying cogeneration or small power production facility