The Florida Public Service Commission (PSC) today approved Duke Energy Florida, LLC’s (DEF) termination agreement with Ridge Generating Station, L.P. (Ridge) that is expected to save DEF customers between $30 and $35 million.
DEF has purchased energy from Ridge since it came online in May 1994 through a power purchase agreement (PPA), with a 39.6 megawatt committed capacity expiring in December 2023. Although the PPA was cost-effective when the PSC approved it, the Commission agreed this was no longer the case under current and projected market conditions.
“The good news is that this termination agreement saves Duke customers millions of dollars,” said PSC Chairman Art Graham.
Because Duke’s reliability will not be affected by the termination, the company will not need to replace the Ridge capacity or accelerate any generating units. The termination agreement is expected to close on December 31, 2018. Customer savings will be realized through the Fuel Cost Recovery Clause.
The Ridge facility, located in Auburndale, converts waste, such as scrap tires, into electric power.
For additional information, visit www.floridapsc.com.
Follow the PSC on Twitter, @floridapsc.