FPL Plans to Acquire and Phase Out Coal-Fired Power Plant

Florida Power & Light (FPL) filed a petition with the Florida Public Service Commission (PSC) to request approval to acquire a power plant that it has had under a long-term contract to purchase power since 1988. Upon taking ownership of the Cedar Bay Generating Plant, a 250-MW coal-fired facility located in Jacksonville, Fla., FPL plans to immediately terminate the contract and reduce the plant's operations by 90 percent, with the intention of eventually phasing the plant out of service. In its filing, FPL proposes to purchase CBAS Power, the indirect owner of the plant, from CBAS Power Holdings, for a price of $520.5 million. FPL would then terminate the purchased-power contract.