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Proposed Glades Power Park Coal Plants
Synapse was asked to evaluate Florida Light & Power Company’s justification for its proposed 2000 MW coal-fired Glades Park Power plants. The specific subjects addressed by Synapse in testimony included the likely future CO2 emission costs that will result from federal greenhouse gas regulations/restrictions; the Company’s resource planning; and the results of the Company’s economic analyses of the proposed Glades Project. Synapse found that the proposed Project would be the more economic option only if the potential costs of CO2 regulations were not considered or if a very high difference was assumed between natural gas and coal prices. Synapse also found that the Company had not fully reflected the risk of increases in the actual capital cost of completing the proposed Project and placing the generating units in commercial operation. As a result, Synapse recommended that the Commission deny Florida Light & Power Company’s need request because the Company had failed to demonstrate that the proposed Project was the least cost, least risk addition to its system. The Florida Public Service Commission agreed with the conclusion that the proposed Glades Project was not the most cost-effective option and, therefore, denied the request for a certificate to build the plants.