Agenda Package - Florida Municipal Power Agency

Transcription

Florida Municipal Power Agency
Executive Committee Meeting
March 17, 2016
9:30 a.m.
Executive Committee
Howard McKinnon, Havana - Chairman
Lynne Tejeda, Key West – Vice Chairwoman
Bruce Hickle, Bushnell
Lynne Mila, Clewiston
Fred Hilliard, Fort Meade
Clay Lindstrom, Fort Pierce
Robert Page, Green Cove Springs
Allen Putnam, Jacksonville Beach
Larry Mattern, Kissimmee
Patrick Foster, Leesburg
Bill Conrad, Newberry
Mike Poucher, Ocala
Tom Ernharth, Starke
Meeting Held 9:30 a.m.
Thursday, March 17, 2016
Florida Municipal Power Agency
8553 Commodity Circle
Orlando, FL 32819
407-355-7767
Page 1 of 65
TO:
FMPA Executive Committee
FROM:
Nicholas Guarriello
DATE:
March 8, 2016
RE:
Thursday, March 17, 2016 at 9:30 a.m.
(Or Immediately Following the Board of Directors Meeting)
PLACE:
Florida Municipal Power Agency,
8553 Commodity Circle, Orlando, FL
Board Room, Orlando, Florida
DIAL-IN INFORMATION: 866-411-8247 or 321-239-1100
ACCESS CODE 91583#
(If you have trouble connecting via phone or internet, please call 407-355-7767)
Chairman Howard McKinnon, Presiding
AGENDA
1)
Call to Order, Roll Call, Declaration of Quorum ..................................................................... 4
2)
Set Agenda (By Vote).................................................................................................................. 5
3)
Recognition of Guests .................................................................................................................. 6
4)
Public Comments (Individual Public comments to be limited to 3 minutes) ......................... 7
5)
Comments from the Chairman (Howard McKinnon) ............................................................. 8
6)
Report from the General Manager (Nick Guarriello).............................................................. 9
7)
Sunshine Law Update (Jody Finklea) ...................................................................................... 10
Page 2 of 65
FMPA Executive Committee Meeting
March 8, 2016
Page 2
8)
Consent Agenda
a) Approval of Meeting Minutes– Meeting Held January 21, 2016; Special-Called Telephonic
Meeting Minutes – Meeting Held February 9, 2016; ARP Telephonic Rate Workshop Minutes
– Workshops Held January 7, 2016 and February 9, 2016 ....................................................... 12
b) Approval of Treasury Reports – As of December 31, 2015 and January 31, 2016 .................. 26
c) Approval of the Agency and All-Requirements Project Financials as of December 31, 2015 and
January 31, 2016 ....................................................................................................................... 35
9) Action Items
a) None .......................................................................................................................................... 36
10) Information Items
a) Amendment to Florida Gas Utility (FGU) Gas Service Agreement (Rich Popp/Jody Finklea)38
b) Annual Debt Report (Ed Nunez/Janet Davis) ........................................................................... 45
c) Quarterly Regulatory Compliance Update (Carol Chinn) ........................................................ 56
d) Hedge Position Portfolio Update – December 2015 and January 2016 (Rich Popp) ............... 59
11) Other Information
a) FYI – Invoice Summary Report from Spiegel and McDiarmid ............................................... 64
12) Member Comments…………………………………………………………………………….65
13) Adjournment
One or more participants in the above referenced public meeting may participate by telephone. At the above location there will be a speaker telephone so that any interested
person can attend this public meeting and be fully informed of the discussions taking place either in person or by telephone communication. If anyone chooses to appeal any
decision that may be made at this public meeting, such person will need a record of the proceedings and should accordingly ensure that a verbatim record of the proceedings is
made, which includes the oral statements and evidence upon which such appeal is based. This public meeting may be continued to a date and time certain, which will be
announced at the meeting. Any person requiring a special accommodation to participate in this public meeting because of a disability, should contact FMPA at (407) 355-7767
or 1-(888)-774-7606, at least two (2) business days in advance to make appropriate arrangements.
Page 3 of 65
AGENDA ITEM 1 – CALL TO ORDER,
ROLL CALL, DECLARATION OF QUORUM
Executive Committee
March 17, 2016
Page 4 of 65
AGENDA ITEM 2 – SET AGENDA (By Vote)
Executive Committee
March 17, 2016
Page 5 of 65
AGENDA ITEM 3 – RECOGNITION OF
GUESTS
Executive Committee
March 17, 2016
Page 6 of 65
AGENDA ITEM 4 –PUBLIC COMMENTS
(INDIVIDUAL COMMENTS TO BE
LIMITED TO 3 MINUTES)
March 17, 2016
Page 7 of 65
VERBAL
REPORT
VERBAL REPORT
AGENDA ITEM 5 – COMMENTS FROM THE
CHAIRMAN
Executive Committee
March 17, 2016
Page 8 of 65
VERBAL
REPORT
VERBAL REPORT
AGENDA ITEM 6 – REPORT FROM THE
GENERAL MANAGER
Executive Committee
March 17, 2016
Page 9 of 65
VERBAL
REPORT
VERBAL REPORT
AGENDA ITEM 7 – SUNSHINE LAW UPDATE
Executive Committee
March 17, 2016
Page 10 of 65
AGENDA ITEM 8 – CONSENT AGENDA
a)
Approval of Meeting Minutes – Meeting Held
January 21, 2016; Special-Called Telephonic
Meeting Minutes – Meeting Held February 9, 2016;
ARP Telephonic Rate Workshop Minutes –
Workshops Held January 7, 2016 and February 9,
2016
Executive Committee
March 17, 2016
Page 11 of 65
CLERKS DULY NOTIFIED……………………………………………....….January 13, 2016
AGENDA PACKAGES/CDS FEDEXED TO MEMBERS…..…………….. January 13, 2016
MINUTES
EXECUTIVE COMMITTEE
THURSDAY, JANUARY 21, 2016
FLORIDA MUNICIPAL POWER AGENCY
8553 COMMODITY CIRCLE
ORLANDO, FL 32819
PARTICIPANTS PRESENT
Bushnell
Fort Pierce
Green Cove Springs
Havana
Jacksonville Beach
Key West
Kissimmee
Leesburg
Ocala
-
Bruce Hickle
Clay Lindstrom
Robert Page
Howard McKinnon
Allen Putnam
Lynne Tejeda
Larry Mattern
Patrick Foster (via telephone)
Mike Poucher
Clewiston
Fort Meade
Newberry
Starke
-
Danny Williams
Fred Hilliard
Bill Conrad
Tom Ernharth
PARTICIPANTS ABSENT
OTHERS PRESENT
Steve Stein, nFront Consulting, LLC
Jim O’Connor, Vero Beach
Kathryn Eno, Purvis, Gray & Co.
Mark White, Purvis, Gray & Co.
Helen Painter, Purvis, Gray & Co.
Matt Williams, BofAML
JoLinda Herring, Bryant Miller Olive
David Anderson, Ocala
George Forbes, Jacksonville Beach (via telephone)
Paul Jakubziac, Fort Pierce
Craig Dunlap, Dunlap & Associates
Peter Batty, Keys Energy
Grant Lacerte, Kissimmee
Page 12 of 65
Executive Committee Meeting Minutes
January 21, 2016
Page 2 of 5
STAFF PRESENT
Nick Guarriello, General Manager and CEO
Fred Bryant, General Counsel
Jody Finklea, Deputy General Counsel and Manager of Legal
Affairs
Mark McCain, Assistant General Manager, Public Relations &
Human Resources
Mark Larson, Assistant General Manager, Finance and Information
Technology and CFO
Frank Gaffney, Assistant General Manager, Power Resources
Michelle Pisarri, Administrative Coordinator
Sue Utley, Executive Assistant to the CEO/Asst. Secry to the BOD
Edwin Nunez, Assistant Treasurer/Debt
Rick Minch, Controller
Rich Popp, Contract Compliance Audit and Risk Manager
Janet Davis, Treasury Manager
Tom Richards, Executive Consultant
ITEM 1 - CALL TO ORDER, ROLL CALL, AND DECLARATION OF QUORUM:
Chairman Howard McKinnon, Havana, called the FMPA Executive Committee meeting to order
at 11:53 a.m. on Thursday, January 21, 2016 in the Boardroom, Florida Municipal Power
Agency, 8553 Commodity Circle, Orlando, Florida. The roll was taken and a quorum was
declared with 9 members present out of a possible 13.
ITEM 2 – SET AGENDA (BY VOTE):
MOTION: Mr. Mattern, Kissimmee, moved to set the agenda with Information Item 10a –
Update on Refinancing of ARP Series 2008A and 2009A Bonds being moved to Action Item 9e.
Mr. Putnam, Jacksonville Beach, seconded the motion. Motion carried 9-0.
ITEM 3 – RECOGNITION OF GUESTS:
Jody Finklea, Deputy General Counsel & Manager of Legal Affairs, recognized JoLinda Herring
of Bryant Miller Olive.
ITEM 4 – PUBLIC COMMENTS:
None.
Page 13 of 65
January 21, 2016
Page 3 of 5
ITEM 5 – COMMENTS FROM THE CHAIRMAN:
Chairman McKinnon expressed his thanks and appreciation of the group of members and city
representatives that spoke at the Senate subcommittee meeting on January 11, 2016.
ITEM 6 – REPORT FROM GENERAL MANAGER:
None.
ITEM 7 –SUNSHINE LAW UPDATE IN A MINUTE:
Jody Finklea, Deputy General Counsel & Manager of Legal Affairs, provided a verbal report on
public records law information.
ITEM 8 –CONSENT AGENDA:
Item 8a – Approval of Meeting Minutes– Meeting Held December 17, 2015; ARP
Telephonic Rate Workshop Minutes – Workshop Held December 9, 2015
Item 8b - Approval of Treasury Reports - As of November 30, 2015
Item 8c – Approval of the Agency and All-Requirements Project Financials as of
November 30, 2015
MOTION: Mr. Putnam, Jacksonville Beach, moved approval of the consent agenda as
presented. Mr. Poucher, Ocala, seconded the motion. Motion carried 9-0.
ITEM 9 – ACTION ITEMS:
Item 9a—Approval of Annual Audited Financial Report (AAFR)
MOTION: Mrs. Tejeda, Key West, moved approval of the fiscal year ended September 30,
2015 AAFR, and the associated Purvis, Gray & Co. reports. Also, move approval to recover or
refund all over-or under-recovery amounts through the billing true-up process. Mr. Putnam,
Jacksonville Beach, seconded the motion. Motion carried 9-0.
Page 14 of 65
January 21, 2016
Page 4 of 5
Item 9b— Acceptance of Reports on OPEB, Compensated Absences, and Actuarial
Valuation – Auditor General Finding No. 5
MOTION: Mr. Putnam, Jacksonville Beach, moved approval accept the special report on Other
Post-Employment Benefits and Compensated Absences at FMPA and accept Foster & Foster’s
reports on actuarial valuation. Mr. Mattern, Kissimmee, seconded the motion. Motion carried
9-0.
Item 9c— Approval of Staff’s Recommendation of Trustee Selection
MOTION: Mr. Mattern, Kissimmee, moved to approve staff’s recommendation of TD Bank as
provider of Trustee Services for the All-Requirements Power Supply Project.
Mr. Putnam,
Jacksonville Beach, seconded the motion. Motion carried 9-0.
Item 9d— Approval of Baker Tilly’s Recommended Change to the Natural Gas and Fuel
Oil Policy
MOTION: Mr. Putnam, Jacksonville Beach, moved approval of adding the proposed language
requiring acceptance of the Hedge Portfolio Position Update report at each AROC and EC
meeting. Mr. Poucher, Ocala, seconded the motion. Motion carried 9-0.
MOVED FROM INFORMATION TO ACTION - Item 9e— Update on Refinancing of ARP
Series 2008A and 2009A Bonds
MOTION: Mr. Mattern, Kissimmee, moved approval of following through with the refinancing
process as presented and put any savings toward Taylor Swaps termination costs. Mr.
Putnam, Jacksonville Beach, seconded the motion. Motion carried 9-0.
ITEM 10 – INFORMATION ITEMS:
b.
Hedge Portfolio Position Update – November 2015
Staff reported on each of the above items and there was discussion with the
Executive Committee.
Page 15 of 65
January 21, 2016
Page 5 of 5
ITEM 12 – MEMBER COMMENTS:
Mr. Lacerte, Kissimmee, commented as follows:
I just note and I think that the membership has reason to note with pride the final
actions on the Auditor General Report. I think the Agency staff did an excellent job of
responding to areas where improvement was needed, making the remedies that were
necessary and making them expeditiously and when the report came up short on the
facts or the reality on the ground, our staff respectfully explained away the inaccuracies
in a very forthright and candid manner. I think the responses themselves are notable
for the professionalism that was exhibited and the comprehensive and serious approach
that the Agency took to the audit. And when I think of transparency, I think of FMPA.
Thank you.
ITEM 13 – ADJOURNMENT:
There being no further business, the meeting was adjourned at 12:30 p.m.
Howard McKinnon
Chairperson, Executive Committee
Approved:
Sue Utley
Assistant Secretary
Seal
Page 16 of 65
CLERKS DULY NOTIFIED……………………………………………....….February 3, 2016
AGENDA PACKAGES/CDS FEDEXED TO MEMBERS…..…………….. February 3, 2016
MINUTES
SPECIAL CALLED TELEPHONIC EXECUTIVE COMMITTEE MEETING
TUESDAY, FEBRUARY 9, 2016
ORLANDO, FL 32819
PARTICIPANTS PRESENT
Bushnell
Clewiston
Fort Pierce
Green Cove Springs
Havana
Jacksonville Beach
Kissimmee
Leesburg
Newberry
Ocala
Starke
-
Susan Noell (via telephone)
Lynne Mila (via telephone)
Clay Lindstrom (via telephone)
Robert Page (via telephone)
Howard McKinnon(via telephone)
Allen Putnam
Larry Mattern (via telephone)
Bill Conrad (via telephone)
Mike Poucher (via telephone)
Tom Ernharth (via telephone)
Fort Meade
Key West
-
Fred Hilliard
Lynne Tejeda
PARTICIPANTS ABSENT
OTHERS PRESENT
STAFF PRESENT
Jim O’Connor, Vero Beach (via telephone)
Barry Rothchild, Nixon Peabody LLP (via telephone)
Liz Columbo, Nixon Peabody LLP (via telephone)
Albert Simmons, Orrick, Herrington & Sutcliffe LLP (via telephone)
Craig Dunlap, Dunlap & Associates (via telephone)
Nick Guarriello, General Manager and CEO (via telephone)
Fred Bryant, General Counsel (via telephone)
Jody Finklea, Deputy General Counsel and Manager of Legal
Affairs (via telephone)
Mark McCain, Assistant General Manager, Public Relations &
Human Resources (via telephone)
Mark Larson, Assistant General Manager, Finance and Information
Page 17 of 65
Special Called Telephonic Executive Committee Meeting Minutes
February 9, 2016
Page 2 of 4
Technology and CFO
Janet Davis, Treasurer (via telephone)
ITEM 1 - CALL TO ORDER, ROLL CALL, AND DECLARATION OF QUORUM:
Chairman Howard McKinnon, Havana, called the FMPA Special Called Telephonic Executive
Committee meeting to order at 2:21 p.m. on Tuesday, February 9, 2016, via telephone. A
speaker phone for public attendance and participation was located in the Board Room at Florida
Municipal Power Agency, 8553 Commodity Circle, Orlando, Florida. The roll was taken and a
quorum was declared with 11 members present out of a possible 13.
ITEM 2 – SET AGENDA (BY VOTE):
MOTION: Mr. Putnam, Jacksonville Beach, moved to set the agenda as presented. Mr.
Conrad, Newberry, seconded the motion. Motion carried 11-0.
ITEM 3 – RECOGNITION OF GUESTS:
None.
ITEM 4 –PUBLIC COMMENTS:
None.
ITEM 5 – COMMENTS FROM THE CHAIRMAN:
None
ITEM 6 – REPORT FROM GENERAL MANAGER:
None.
Page 18 of 65
February 9, 2016
Page 3 of 4
ITEM 7 – ACTION ITEMS:
Item 7a—Approval of Resolution 2016-EC1 – Approval of 2016A Bonds
MOTION: Mr. Putnam, Jacksonville Beach, moved approval of Resolution 2016 EC1 – Approval
of Series 2016A Bonds. Mr. Foster, Leesburg, seconded the motion. The Resolution was read
by title.
A RESOLUTION OF THE EXECUTIVE COMMITTEE OF FLORIDA MUNICIPAL
POWER AGENCY (I) RECITING STATEMENT OF AUTHORITY; (II) APPROVING
AND ADOPTING THE SERIES 2016A SUPPLEMENTAL ALL-REQUIREMENTS
POWER SUPPLY PROJECT REVENUE BOND RESOLUTION (FIXED RATE BONDS)
WHICH AUTHORIZES THE ISSUANCE OF FLORIDA MUNICIPAL POWER AGENCY
ALL-REQUIREMENTS POWER SUPPLY PROJECT REFUNDING REVENUE BONDS,
SERIES 2016A TO BE SOLD ON OR BEFORE DECEMBER 31, 2016 IN A PRINCIPAL
AMOUNT SUFFICIENT TO PRODUCE NOT TO EXCEED FIVE HUNDRED TWENTYFIVE MILLION DOLLARS ($525,000,000) IN NET PROCEEDS FOR THE PURPOSE
OF REFUNDING ALL OR A PORTION OF FMPA’S ALL-REQUIREMENTS POWER
SUPPLY PROJECT REVENUE BONDS, SERIES 2008A AND ALL-REQUIREMENTS
POWER SUPPLY PROJECT REVENUE BONDS, SERIES 2009A AND DELEGATES TO
AUTHORIZED SIGNATORIES AND AUTHORIZED OFFICERS CERTAIN MATTERS
RELATING TO THE ISSUANCE OF SUCH SERIES 2016A BONDS INCLUDING (1)
WHEN TO ISSUE SUCH SERIES 2016A BONDS, (2) DETERMINATION OF THE
PRINCIPAL AMOUNTS, MATURITIES, INTEREST RATES, SINKING FUND
INSTALLMENTS AND OTHER REDEMPTION PROVISIONS OF THE SERIES 2016A
BONDS, (3) APPROVAL OF THE SALE AND PURCHASE PRICE FOR THE SERIES
2016A BONDS, (4) DETERMINATION OF AMOUNT, IF ANY, OF THE DEBT
SERVICE RESERVE REQUIREMENT FOR THE SERIES 2016A BONDS, AND
(5) DETERMINING THE ADVISABILITY OF SECURING BOND INSURANCE FOR
SUCH SERIES 2016A BONDS; (III) MAKING CERTAIN FINDINGS AS TO THE
REASONS REQUIRING THE NEGOTIATED SALE OF THE SERIES 2016A BONDS;
(IV) ACKNOWLEDGING REQUIREMENT TO OBTAIN DISCLOSURE STATEMENT
FROM THE UNDERWRITERS AND APPROVING THE FORM DISCLOSURE
STATEMENT; (V) APPROVING THE PREPARATION, EXECUTION, DELIVERY AND
USE OF A PRELIMINARY AND A FINAL OFFICIAL STATEMENT, THE DEEMING
“FINAL” OF THE PRELIMINARY OFFICIAL STATEMENT AND THE EXECUTION,
DELIVERY AND PERFORMANCE OF A CONTINUING DISCLOSURE AGREEMENT
AND ESCROW DEPOSIT AGREEMENT; (VI) DESIGNATING AUTHORIZED
OFFICERS AND APPROVING AND RATIFYING PREVIOUS ACTIONS; (VII)
PROVIDING FOR THE TAKING OF CERTAIN OTHER ACTIONS; (VIII) PROVIDING
FOR SEVERABILITY; AND (IX) PROVIDING FOR AN EFFECTIVE DATE.
Roll call vote was taken.
Motion carried 11-0.
Page 19 of 65
February 9, 2016
Page 4 of 4
ITEM 5 – INFORMATION ITEMS:
None.
ITEM 7 – MEMBER COMMENTS:
None.
Howard McKinnon
Chairperson, Executive Committee
Approved:
Sue Utley
Assistant Secretary
Seal
Page 20 of 65
AGENDA PACKAGES SENT TO MEMBERS .......................................... January 7, 2016
PUBLIC NOTICE SENT TO CLERKS .................................................December 29, 2015
MINUTES
EXECUTIVE COMMITTEE
ALL-REQUIREMENTS POWER SUPPLY PROJECT
TELEPHONIC RATE WORKSHOP
THURSDAY, JANUARY 7, 2016
ORLANDO, FLORIDA 32819
COMMITTEE MEMBERS PRESENT
Clewiston
Fort Pierce
Green Cove Springs Havana
Kissimmee
Leesburg
Ocala
Starke
-
Danny Williams (via telephone)
Howard McKinnon (via telephone)
Mike Poucher (via telephone)
COMMITTEE MEMBERS ABSENT
Bushnell
Fort Meade
Jacksonville Beach
Key West
Newberry
-
Bruce Hickle
Fred Hilliard
Allen Putnam
Lynne Tejeda
Bill Conrad
OTHERS PRESENT
David Anderson, Ocala (via telephone)
Jack Wetzler, Key West (via telephone)
Mike Perri, Fort Pierce (via telephone)
Paul Jakubczek, Fort Pierce (via telephone)
STAFF PRESENT
Mark McCain, Assistant General Manager, Member Services, Human
Resources and Public Relations
Mark Larson, Assistant General Manager, Finance and IT and CFO
Jim Arntz, Senior Financial Analyst
Joe McKinney, Operations and Short Term Planning Manager
Jason Wolfe, Financial Analyst and Power Supply Contracts
Administrator
Page 21 of 65
EC ARP Rate Telephonic Workshop Minutes
January 7, 2016
Page 2 of 2
Jody Lamar Finklea, Assistant General Counsel and Manager of
Legal Affairs (via telephone)
Item 1 – Call to Order
Chairman Howard McKinnon called the Executive Committee All-Requirements Telephonic
Rate Workshop to order at 2:00 p.m. on Thursday, January 7, 2016, via telephone. A
speaker telephone for public attendance and participation was located in the 1st Floor
Conference Room at Florida Municipal Power Agency, 8553 Commodity Circle, Orlando,
Florida.
Item 2 – Information Items
Mr. Popp gave a verbal update on the natural gas markets. Mr. Larson gave a verbal update
on ARP liquidity. Mr. McKinney provided a verbal report on Florida Municipal Power Pool
Operations for December. Mr. Wolfe reviewed the loads, costs and ARP rate calculations
for the month of December and estimated rate ranges for January 2016 and February 2016.
Item 3 – Member Comments
None.
Approved
ML/JA/mlp
Page 22 of 65
AGENDA PACKAGES SENT TO MEMBERS .........................................February 8, 2016
PUBLIC NOTICE SENT TO CLERKS .................................................... January 26, 2016
MINUTES
EXECUTIVE COMMITTEE
ALL-REQUIREMENTS POWER SUPPLY PROJECT
TELEPHONIC RATE WORKSHOP
TUESDAY, FEBRUARY 9, 2016
ORLANDO, FLORIDA 32819
COMMITTEE MEMBERS PRESENT
Bushnell
Clewiston
Fort Pierce
Green Cove Springs Havana
Jacksonville Beach Kissimmee
Leesburg
Starke
-
Susan Noell (via telephone)
Lynne Mila (via telephone)
Howard McKinnon (via telephone)
Allen Putnam
COMMITTEE MEMBERS ABSENT
Fort Meade
Key West
Newberry
Ocala
-
Fred Hilliard
Lynne Tejeda
Bill Conrad
Mike Poucher
STAFF PRESENT
Nick Guarriello, General Manager and CEO (via telephone)
Mark McCain, Assistant General Manager, Member Services, Human
Resources and Public Relations (via telephone)
Mark Larson, Assistant General Manager, Finance and IT and CFO
Jim Arntz, Senior Financial Analyst
Jody Lamar Finklea, Deputy General Counsel and Manager of
Legal Affairs (via telephone)
Page 23 of 65
EC ARP Rate Telephonic Workshop Minutes
February 9, 2016
Page 2 of 2
Item 1 – Call to Order
Chairman Howard McKinnon called the Executive Committee All-Requirements Telephonic
Rate Workshop to order at 2:00 p.m. on Tuesday, February 9, 2016, via telephone. A
speaker telephone for public attendance and participation was located in the 1st Floor
Conference Room at Florida Municipal Power Agency, 8553 Commodity Circle, Orlando,
Florida.
Item 2 – Information Items
Mr. Popp gave a verbal update on the natural gas markets. Mr. Larson gave a verbal update
on ARP liquidity. Mr. Arntz provided a verbal report on Florida Municipal Power Pool
Operations for January. Mr. Arntz reviewed the loads, costs and ARP rate calculations for
the month of January and estimated rate ranges for February 2016 and March 2016.
Item 3 – Member Comments
None.
Approved
ML/JA/mlp
Page 24 of 65
b)
Approval of Treasury Reports - As of December 31,
2015 and January 31, 2016
Executive Committee
March 17, 2016
Page 25 of 65
AGENDA PACKAGE MEMORANDUM
TO:
FROM:
Gloria Reyes
DATE:
February 9, 2016
ITEM:
EC 8(b) – Approval of the All-Requirements Project Treasury Reports as of
December 31, 2015
Strategic Relevance FMPA’s Relevant Strategic Goals
1. Be the lowest cost, sustainable wholesale power provider in Florida
2. Foster a positive communication culture
Policy Decisions/Implications
• To report operation and effectiveness of asset management
• To report on the current opportunities and risk environment affecting
FMPA
Introduction
• This report is a quick update on the Treasury Department’s functions.
• The Treasury Department reports for December are posted in the
member portal section of FMPA’s website.
Debt
Discussion
The All-Requirements Project has fixed, variable, and synthetically fixed
rate debt. The variable rate portion is 1.46%. The fixed and synthetic fixed
rate percentages of total debt are 73.06% and 25.48%, respectively. The
estimated bonded debt interest funding for fiscal year 2016 as of
December 31, 2015 is $53,175,918.86. The total amount of debt
outstanding is $1,086,345,000.
Page 26 of 65
EC 8(b) – Approval of the All-Requirements Project Treasury Reports as of December 31, 2015
February 9, 2016
Page 2
Hedging
Discussion
The Project has 16 interest rate swap contracts. As of December 31, 2015,
the cumulative termination value of the interest rate swaps in the
All-Requirements Project was $59,950,122
The Swap Valuation Report is a snap shot of the mark-to-market values at
the end of the day on December 31, 2015. The report for December is
posted in the “Member Portal” section of FMPA’s website.
Investment
Discussion
The investments in the Project are comprised of debt from the
government-sponsored enterprises such as the Federal Farm Credit Bank,
Federal Home Loan Bank, Federal Home Loan Mortgage Corporation
(Freddie Mac), and Federal National Mortgage Association (Fannie Mae), as
well as investments in U.S. Treasuries, Municipal Bonds, Commercial Paper
and Money Market Mutual Funds.
As of December 31, 2015, the All-Requirements Project investment
portfolio earned a weighted average rate of return of 0.498%, reflecting
the All-Requirements Project need for liquidity given its 60-day cash
position. The benchmarks (SBA’s Florida Prime Fund and the 10 year US
Treasury Note) and the Project’s yields are graphed below:
Page 27 of 65
February 9, 2016
Page 3
All-Requirement's Weighted Average Yield
5-Year History
4.00%
3.00%
2.00%
1.00%
FL Prime
10 YR Treas
Page 28 of 65
All Req
Dec-15
Sep-15
Jun-15
Mar-15
Dec-14
Sep-14
Jun-14
Mar-14
Dec-13
Sep-13
Jun-13
Mar-13
Dec-12
Sep-12
Jun-12
Mar-12
Dec-11
Sep-11
Jun-11
Mar-11
Dec-10
0.00%
February 9, 2016
Page 4
Below is a graph of U.S. Treasury yields for the past 5 years.
US Government Treasury Securities Interest Rates
5-Year History
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
2YR Treas
5YR Treas
10YR Treas
The Investment Report for December is posted in the “Member Portal”
section of FMPA’s website.
Recommended
Motion
Move approval of the Treasury Reports for December 31, 2015
Page 29 of 65
12/31/2015
9/30/2015
6/30/2015
3/31/2015
12/31/2014
9/30/2014
6/30/2014
3/31/2014
12/31/2013
9/30/2013
6/30/2013
3/31/2013
12/31/2012
9/30/2012
6/30/2012
3/31/2012
12/31/2011
9/30/2011
6/30/2011
3/31/2011
12/31/2010
0.00
TO:
FROM:
Gloria Reyes
DATE:
March 8, 2016
ITEM:
EC 8(b) – Approval of the All-Requirements Project Treasury Reports as of
January 31, 2016
Strategic Relevance FMPA’s Relevant Strategic Goals
1. Be the lowest cost, sustainable wholesale power provider in Florida
2. Foster a positive communication culture
• To report operation and effectiveness of asset management
• To report on the current opportunities and risk environment affecting
FMPA
Introduction
• This report is a quick update on the Treasury Department’s functions.
• The Treasury Department reports for January are posted in the member
portal section of FMPA’s website.
Debt
Discussion
The All-Requirements Project has fixed, variable, and synthetically fixed
rate debt. The variable rate portion is 1.46%. The fixed and synthetic fixed
rate percentages of total debt are 73.06% and 25.48%, respectively. The
estimated bonded debt interest funding for fiscal year 2016 as of
January 31, 2016 is $53,175,918.86. The total amount of debt outstanding
is $1,086,345,000.
Page 30 of 65
EC 8(b) – Approval of the All-Requirements Project Treasury Reports as of January 31, 2016
March 8, 2016
Page 2
Hedging
Discussion
The Project has 16 interest rate swap contracts. As of January 31, 2016, the
cumulative termination value of the interest rate swaps in the
All-Requirements Project was $67,931,528.00
The Swap Valuation Report is a snap shot of the mark-to-market values at
the end of the day on January 31, 2016. The report for January is posted in
the “Member Portal” section of FMPA’s website.
Investment
Discussion
The investments in the Project are comprised of debt from the
government-sponsored enterprises such as the Federal Farm Credit Bank,
Federal Home Loan Bank, Federal Home Loan Mortgage Corporation
(Freddie Mac), and Federal National Mortgage Association (Fannie Mae), as
well as investments in U.S. Treasuries, Municipal Bonds, Commercial Paper
and Money Market Mutual Funds.
As of January 31, 2016, the All-Requirements Project investment portfolio
earned a weighted average rate of return of 0.498%, reflecting the AllRequirements Project need for liquidity given its 60-day cash position. The
benchmarks (SBA’s Florida Prime Fund and the 10 year US Treasury Note)
and the Project’s yields are graphed below:
Page 31 of 65
March 8, 2016
Page 3
All-Requirement's Weighted Average Yield
5-Year History
4.00%
3.00%
2.00%
1.00%
FL Prime
10 YR Treas
Page 32 of 65
All Req
Jan-16
Oct-15
Jul-15
Apr-15
Jan-15
Oct-14
Jul-14
Apr-14
Jan-14
Oct-13
Jul-13
Apr-13
Jan-13
Oct-12
Jul-12
Apr-12
Jan-12
Oct-11
Jul-11
Apr-11
Jan-11
0.00%
March 8, 2016
Page 4
Below is a graph of U.S. Treasury yields for the past 5 years.
US Government Treasury Securities Interest Rates
5-Year History
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
2 YR Treas
5 YR Treas
10 Yr Treas
The Investment Report for January is posted in the “Member Portal”
section of FMPA’s website.
Recommended
Motion
Move approval of the Treasury Reports for January 31, 2016
Page 33 of 65
1/31/2016
10/31/2015
7/31/2015
4/30/2015
1/31/2015
10/31/2014
7/31/2014
4/30/2014
1/31/2014
10/31/2013
7/31/2013
4/30/2013
1/31/2013
10/31/2012
7/31/2012
4/30/2012
1/31/2012
10/31/2011
7/31/2011
4/30/2011
1/31/2011
0.00
c) Approval of the Agency and All-Requirements
Project Financials as of December 31, 2015 and
January 31, 2016
Executive Committee
March 17, 2016
Page 34 of 65
TO:
FROM:
Rick Minch
DATE:
March 8, 2016
ITEM:
EC 8c – Approval of the Agency and All-Requirements Project Financials
for the periods ended December 31, 2015 and January 31, 2016.
Discussion:
The summary and detailed financial statements of the Agency and
All-Requirements Project for the periods ended December 31, 2015
and January 31, 2016 are posted on the members’ only FMPA
website.
____________________________________________________________________________
Recommended Motion:
Move approval of the Agency and All-Requirements Project
Financial reports for the month of December 31, 2015 and
January 31, 2016.
______________________________________________________________________
RM/DF
Page 35 of 65
AGENDA ITEM 9 – ACTION ITEMS
a) None
Executive Committee
March 17, 2016
Page 36 of 65
a) Amendment to Florida Gas Utility (FGU) Gas
Services Agreement
Executive Committee
March 17, 2016
Page 37 of 65
TO:
Executive Committee
FROM:
Rich Popp
DATE:
March 08, 2016
ITEM:
10-a - Amendment to Florida Gas Utility (FGU) Gas Services Agreement
Strategic Relevance
FMPA’s Relevant Strategic Goals
As a wholesale power provider, become and remain competitive in the Florida
market.
Policy Decision
Whether to discontinue providing Florida Gas Utility (FGU) with a standby letter
of credit, for FGU credit support, understanding potential liquidity risks in the
event of an ARP credit downgrade.
Background
FMPA staff is in the process of renewing/replacing the current two lines of credit
with J.P. Morgan and Wells Fargo (totaling $100 million). Beneath the Wells Fargo
line of credit are two letters of credit that FMPA has kept in place for FPL (related
to FMPA’s obligations under the interconnection agreement for Treasure Coast
Energy Center) and FGU (for natural gas supplier credit support). The FGU letter
of credit currently is stated at $17,897,028 and expires on September 30, 2016.
Looking for savings opportunities, over the previous months staff reached out to
both FPL and FGU. FPL has already agreed with staff to cease its letter of credit as
of February 29, 2016. This memo outlines the terms FGU is proposing so FMPA
can also cease providing it with a letter of credit.
Information
The Gas Services Agreement between the All-Requirements Project and FGU
requires ARP to meet certain security provisions as outlined in FGU’s Credit
Policy. Currently, FGU’s credit terms require the ARP to either provide a cash
deposit for 1.5 times the expected average monthly billing or an equally sized letter
of credit. The ARP has chosen to provide a letter of credit and has done so since
2007. The cost of the FGU letter of credit has ranged from $170,000 to $240,000 a
year; depending upon annually projected natural gas needs and anticipated price.
FMPA and FGU staff, with assistance from the Office of the General Counsel,
have worked to develop new credit terms for the Gas Services Agreement and
Page 38 of 65
EC 10 – Amend FGU Gas Services Agreement
March 08, 2016
Page 2
Credit Policy. These proposed new terms will allow the ARP to avoid having to
provide FGU with a Letter of Credit. These terms will be put into place through
two documents: an amendment to the existing FGU Gas Service Agreement,
adding a new section titled “O&M Covenant as Credit Enhancement,” and
modification to the FGU credit policy. Both documents, in their current draft
forms, are attached to this memo.
A summary of the new terms are as follows:
•
The ARP must have had sufficient liquidity to meet its FGU payment
obligations for the past 24 months.
•
This is a lower standard than ARP bond covenant requirement since the
requirement only references liquidity to cover FGU’s monthly bill, and
the ARP bond resolution requires liquidity to always meet the ARP’s
cost obligations (i.e., 1x coverage).
•
The ARP must have a credit rating of at least one of the follow: A-2 by
Moody’s, A (flat) by S&P, A (flat) by Fitch.
•
FMPA must agree to promptly notify FGU in writing of any changes in rating
or any adverse change in its financial condition or operations.
•
FMPA must provide an opinion by legal counsel stating the ARP’s payments
to FGU are an operating expense under the ARP bond resolution, payable
before ARP debt service.
•
•
FMPA staff has already presented FGU with a letter from bond counsel
in draft form addressing other concerns of FGU regarding bankruptcy,
which was presented to FGU’s Credit Committee. The Credit Committee
had no recommended changes or comments on this item.
In the future, if the ARP’s financial conditions or its rating changes so that
either of them no longer meet FGU’s minimum requirements, FMPA must
post an equivalent cash collateral or letter of credit within five business days.
•
Due to the five business day time requirement, if ARP were not able to
comply with FGU’s credit terms, a cash deposit would have to be placed
with FGU (today that would be approximately $18 million). Staff would
fund this collateral posting through a draw on the available line of credit
or use available working capital. (Use of working capital would have as
short-term rate impact.) Staff would then evaluate alternatives to meet
the credit requirement to have the collateral posting returned to the ARP.
FGU’s Credit Committee has approved both the amendment to the Gas Services
Agreement and the amendment to the FGU Credit Policy. These changes will be
Page 39 of 65
EC 10 – Amend FGU Gas Services Agreement
March 08, 2016
Page 3
presented to the FGU Board of Directors for final approval before May 1, 2016.
Upon approval of the FGU Board of Directors, the Credit Committee will have to
determine that the ARP is credit worthy under the new standards, which we do not
expect a problem with.
FMPA’s legal counsel have reviewed these amendments. Subsequent to FGU’s
final approval of these changes, staff will present this amendment for final approval
to the Executive Committee.
Recommended
Action
No action at this time. For information only.
___________________________________________________________________
Page 40 of 65
ATTACHMENT A
Page 41 of 65
Page 42 of 65
Page 43 of 65
b) Annual Debt Report
Executive Committee
March 17, 2016
Page 44 of 65
TO:
FROM:
Edwin Nunez
DATE:
March 8, 2016
ITEM:
EC 10b – Annual Debt Report
Introduction
Pursuant to Section 7.1 (B) of the Debt Risk Management Policy (see copy of this
section as Attachment #1), the Treasury Department is required to report to the
Executive Committee the annual debt report as of September 30, 2015. The
information required by this policy does not include transactions capitalized due to
accounting standards and reported as debt such as capitalized TARP payments to
KUA and Keys Energy or the St. Lucie County commitment.
Explanation
1. The percentage of the portfolio of bonded debt and loans (“All Debt”) that is fixed
rate, variable rate, and synthetic fixed rate at fiscal year-end is as follows:.
Page 45 of 65
March 8, 2016
Page 2
2. The total amount of bonded debt and loans outstanding by Project is as follows:
9/30/2015
9/30/2014
820,000
1,005,000
1,125,615,000
1,103,860,000
St Lucie
330,835,000
337,960,000
Stanton
39,204,000
45,411,000
145,991,000
153,680,000
15,756,000
18,676,000
1,658,221,000
1,660,592,000
Agency
ARP
Stanton II
Tri-City
Total
3. The total cost of bonded debt and loans (effective interest rate) per each Project
for the previous year. Each Series of bonds times the all in interest rate, including
the swaps attached to them. The total of all interest costs divided by the total of all
bonds for each Project.
6.00%
5.42%
4.98%
4.03%
5.00%
4.00%
4.03%
2.21%
3.00%
2.00%
1.00%
0.00%
Page 46 of 65
March 8, 2016
Page 3
4. The interest rate swaps counterparty diversification report. Swap percentages by
dealer per Project.¹
All-Requirements Project
B of A / Merrill Lynch
48,095,003
4%
Goldman Sachs
33,179,999
3%
JPMorgan Chase
83,958,000
7%
Morgan Stanley
46,284,998
4%
UBS
20,125,000
2%
Wells Fargo
61,050,000
5%
832,922,000
74%
1,125,615,000
100%
119,699,541
36%
Goldman Sachs
41,750,458
13%
Unswapped Debt
169,385,000
51%
Total Debt
Outstanding
330,835,000
100%
32,860,674
23%
JPMorgan Chase
10,226,826
7%
UBS
25,212,500
17%
Unswapped Debt
76,790,000
53%
145,090,000
100%
Unswapped Debt
Total Debt
Outstanding
St Lucie Project
Stanton II Project
Total Debt
Outstanding
1 – Numbers may not add due to rounding.
Page 47 of 65
March 8, 2016
Page 4
5. The debt ratio per project for the previous year.
Debt Ratio - Total Debt / Total Assets¹
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Agency
St. Lucie
Stanton
Stanton II
Tri-City
ARP
FMPA Total
1 – Total Debt divided by Total Assets.
Agency
Total Debt $*
Total Assets $*
Debt Ratio
820
20,854
3.93%
St. Lucie
320,801
396,926
80.82%
Stanton
38,920
61,425
63.36%
Stanton II
147,794
157,816
93.65%
Tri-City
15,251
21,105
72.26%
ARP
1,139,272
1,424,560
79.97%
FMPA
Total
1,662,858
2,082,686
79.84%
*From the FMPA Financial Statement Fiscal Year End 9/30/15. “Total Assets” was taken from the
Financial Statement page 13. “Total Debt” was taken from Section, VIII. Long Term Debt, pages 3642 less TARP payments and St. Lucie County Commitment. The “Total Debt” figures have been
adjusted by the balances of unamortized premiums and discounts and unamortized losses on
refunding’s.
Page 48 of 65
March 8, 2016
Page 5
The following information was taken from the Fitch Ratings U.S.
Public Power Study June 2015.
6. All-Requirements debt ratios compared to other wholesale systems rated A+ by Fitch.
2 – Operating revenues less operating expenses plus depreciation divided by debt service.
Arkansas Electric Coop. Corp
Basin Electric Power Coop., ND
Connecticut Municipal Electric Energy Coop.
FMPA
Illinois MPA
Indiana MPA
MEAG
Nebraska Public Power District
Southern MN MPA
Texas MPA
WPPI Energy
Median
Debt Service
Coverage
1.63
1.45
0.59
1.08
1.19
1.36
0.84
1.79
1.07
1.19
1.37
1.36
Page 49 of 65
March 8, 2016
Page 6
7. All-Requirements days cash on hand compared to other wholesale systems rated A+ by Fitch.
3 – Unrestricted cash divided by (Operating expenses less depreciation) x 365
FMPA
Illinois MPA
Indiana MPA
MEAG
Southern MN MPA
Texas MPA
WPPI Energy
Median
Days Cash on
Hand
109
67
80
84
105
92
118
208
227
127
46
94
Page 50 of 65
March 8, 2016
Page 7
8. All-Requirements debt and funds available for debt service compared to other wholesale
systems rated A+ by Fitch.
4 – Total Debt divided by (Operating Revenues less operating expenses plus depreciation).
FMPA
Illinois MPA
Indiana MPA
MEAG
Southern MN MPA
Texas MPA
WPPI Energy
Median
Debt / FADS
9.92
9.78
18.74
10.54
9.77
10.84
16.14
5.49
9.89
4.84
10.64
9.14
Page 51 of 65
March 8, 2016
Page 8
9. All-Requirements equity and capitalization compared to other wholesale systems rated A+ by
Fitch.
5 – Retained earnings divided by (Total debt plus total retained earnings).
FMPA
Illinois MPA
Indiana MPA
MEAG
Southern MN MPA
Texas MPA
WPPI Energy
Median
Equity /
Capitalization
33%
24%
18%
0%
10%
16%
0%
37%
12%
5%
31%
19%
Page 52 of 65
March 8, 2016
Page 9
Recommended Action:
For information only. No action requested.
Attachment
Attachment #1
Page 53 of 65
Attachment #1
From Debt Risk Management Policy
7.1
Debt Portfolio Reports: The Treasurer is responsible for the completion of the following
reporting requirements:
B.
Annual debt report to Executive Committee and Board of Directors at their first regular
meetings following approval of audited financial statements. Such annual debt reports
shall include at a minimum:
1)
Percentage of portfolio that is fixed rate, variable rate, and synthetic fixed rate at
fiscal year-end.
2)
Total cost of debt (effective interest rate) per Project for the previous fiscal year.
3)
Interest rate swap counterparty diversification report.
Page 54 of 65
c) Quarterly Regulatory Compliance Update
Executive Committee
March 17, 2016
Page 55 of 65
TO:
FROM:
Carol Chinn
DATE:
March 08, 2016
ITEM:
EC 10c – Quarterly Regulatory Compliance Update
Strategic Relevance
FMPA’s Relevant Strategic Goals
1. Goal C – Regulatory Compliance, Measurable Target, Ca – Staff
provides a compliance update to the Executive Committee on a
quarterly basis
• Compliance with Regulatory Requirements
Introduction
Explanation
Staff is providing a quarterly regulatory compliance report in accordance
with the direction in our Strategic Plan.
The quarterly report is provided (Attachment 1) for your reference.
Recommended Action For information only. No action requested.
CC/cg
Attachments1
Page 56 of 65
EC 10c – Quarterly Regulatory Compliance Update
March 08, 2016
Page 2
Attachment 1
FMPA Regulatory Compliance Quarterly Update
March 17, 2016
1. FMPA Regulatory Compliance
a. The Regulatory Compliance Department has hired a Regulatory Compliance
Specialist, Brandon McCormick, to fill a staff vacancy from last year. Bandon comes
to FMPA from Siemens Energy, Inc. and is a graduate of University of Central
Florida. The compliance dept. staff includes a Regulatory Compliance Officer,
Regulatory Compliance Engineer and Regulatory Compliance Specialist.
b. The Regulatory Compliance Business Plan has been revised for 2016. The plan
continues to align with both the ARP Executive Committee Strategic Plan and the
Board Strategic Plan. It includes action plans to support the achievement of
corporate goals.
c. In December of 2015, FMPA received a notification that FMPA no longer is
registered for the Load-serving Entity (LSE) function. This function was eliminated in
the NERC registry as a direct result of the Risk Based Registration initiative. This will
reduce certain NERC compliance requirements that were administrative in nature.
2. Member Support
a. FMPA’s Winter Compliance Workshop was held February 1st and 2nd. This
workshop focused on Critical Infrastructure Protection standards. It was a hands-on
workshop that provided the opportunity for each member to review their CIP BES
Cyber System identification methodology for low impact assets. This is required to
be completed by April 2016.
FRCC staff participated on the second day of the workshop. They presented recent
developments regarding NERC compliance and provided the opportunity for our
members to participate in a question and answer session with FRCC staff.
b. The new Bulk Electric System (BES) definition and exception process became
effective 7/1/14. FMPA assisted our members in this process and had a BES
Exception request approved involving Keys Energy Services in November 2015.
3. Industry Influence
a. FMPA continues to be involved in several NERC level committees, which have
continent wide influence. In addition, Chris Gowder was recently selected to
participate on the North American Energy Standards Board (NAESB) Executive
Committee.
[email protected]
Page 57 of 65
AGENDA ITEM 10 – INFORMATION ITEMS
d) Hedge Portfolio Update – December 2015 and
January 2016
Executive Committee
March 17, 2016
Page 58 of 65
TO:
Executive Committee
FROM:
Rich Popp
DATE:
March 8, 2016
ITEM:
EC 10d-Hedge Portfolio Position Update December 2015 and January 2016
Strategic Relevance
FMPA’s relevant strategic goals
• Be the lowest cost wholesale electricity provider in Florida through strategy to identify,
understand and manage risk responsibly.
Policy decisions/implications
• The Natural Gas and Fuel Oil Risk Policy requires that specified hedge program reports
be presented at each Audit and Risk Oversight Committee (“AROC”).
Introduction
As of May 2015, FMPA’s Executive Committee elected to stop hedging. This report
communities other required information per the Natural Gas and Fuel Oil Risk Policy.
The Policy requires the Agency Risk Manager to report the following at each AROC and
Executive Committee meeting:
1. Current hedge position
2. Monthly gain or loss
3. Monthly liquidity exposure
4. Fuel storage activity
5. Fuel hedging risk metrics
Explanation
The following exhibits illustrate the All-Requirements Project’s hedge positions and results
on January 31, 2015 unless otherwise noted.
Exhibits exclude natural gas volume needed to serve the City of Quincy capacity and
energy sale since the City opted not to participate in the ARP’s hedge program.
Exhibit C – Physical Hedge Limits
Exhibit C reports physical gas commitments entered into for the ARP as of December 31,
2015. ARP had physical gas commitments equal to 66% of December 2015’s actual gas
exposure
Page 59 of 65
Hedge Portfolio Position Update
Page 2
Exhibit C reports physical gas commitments entered into for the ARP as of January 31,
2016. ARP had physical gas commitments equal to 71% of January 2016’s actual gas
exposure.
The Risk Management Department will continue to monitor activity by the ARP’s gas
supply agent for activity approaching or exceeding the 75% limit.
Natural gas storage
The ARP has contracted for 1,000,000 MMBtu of natural gas storage. The Policy sets
minimum storage levels for reliability purposes at 50% of maximum available storage
during hurricane season (June through January) and 10% of maximum available storage for
all other months. The following exhibit shows actual storage inventory volume for the past
twelve months compared to the minimum levels.
1,000,000
900,000
800,000
700,000
MMBtu
600,000
500,000
400,000
300,000
200,000
100,000
Gas in storage
Jan
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
0
Policy minimum
The storage volume on January 31, 2016 was 766,346 MMBtu at a weighted average cost
of $2.72/ MMBtu. The total value of gas in storage was $2,083,321.
The storage agent (Florida Gas Utility) provides an updated storage optimization report at
each AROC meeting.
Page 60 of 65
Page 3
Fuel oil storage
Fuel oil storage levels at ARP generation resource locations as of January 31, 2016 are
presented below:
2,000,000
1,800,000
1,600,000
1,400,000
Gallons
1,200,000
1,000,000
800,000
600,000
400,000
200,000
Stock Island
Fuel Oil
Cane Island
TCEC
Oleander 5
Staff Action Plan needed
The Policy requires that fuel oil storage at each generation site strive to maintain a
minimum 50% of fuel oil capacity. When fuel is below the 50% capacity threshold, FMPA
staff will develop a plan to bring inventory levels above 50% capacity. No site was below
50% capacity.
Hedge program results
The following exhibit shows the gains or (losses) resulting from the hedge program.
Fiscal Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016-YTD
Version 8
$ (3,844,385)
$
6,211,729
$ 19,254,388
$
482,038
$ (32,303,698)
$ 11,136,570
$ (140,564,807)
$ (41,347,894)
$ (17,402,281)
$ (20,474,986)
$ (16,883,175)
$ ( 2,679,175)
N/A
N/A
Version 9 (FST)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$ (6,236,892)
$ (1,424,568)
$ (1,554,448)
N/A
N/A
N/A
Total
$ (3,844,385)
$
6,211,729
$ 19,254,388
$
482,038
$ (32,303,698)
$ 11,136,570
$ (140,564,807)
$ (41,347,894)
$ (23,639,173)
$ (21,899,554)
$ (18,437,623)
$ ( 2,679,175)
$
0
$
0
Life-to-date
$ (238,415,676)
$ (9,215,908)
$ (247,631,584)
Page 61 of 65
Page 4
Blended Cost
Blended Cost represents the weighted average of hedge costs and market priced gas for
each month, excluding transportation costs.
Projected
Blended
Natural Gas
Cost
$2.00
$2.36
Actual December
Actual January
Natural
Gas
Market
Price*
$2.21
$2.37
%
Over/(Under)
Market
(9.5%)
(0%)
Projected
Natural Gas
Transportation
Cost
$0.58
$0.59
The following exhibit illustrates the projected Blended Cost, actual Blended Cost, and the
natural gas market prices (NYMEX).
$6.00
$5.50
$5.00
$4.50
$4.00
$3.50
$3.00
$2.50
$2.00
Projected Blended Cost
NYMEX Settlement
Recommended
Action
For information only. No action requested.
Page 62 of 65
Actual Blended Cost
NYMEX-Forward Curve
Jan-16
Dec-15
Nov-15
Oct-15
Sep-15
Aug-15
Jul-15
Jun-15
May-15
Apr-15
Mar-15
Feb-15
Jan-15
Dec-14
$1.50
AGENDA ITEM 11– OTHER INFORMATION
a) FYI – Invoice Summary Report from Spiegel and
McDiarmid
Executive Committee
March 17, 2016
Page 63 of 65
TO:
FROM:
DATE:
Accounting Department
ITEM:
EC 11(a) – Invoice Summary Report of Spiegel & McDiarmid for January 2016 and
February 2016.
March 8, 2016
Introduction
•
Historically, the paid invoices for Spiegel & McDiarmid were included in the
Agenda packages for review at the request of the members. At the July 30,
2002 FMPA Executive Committee Meeting at the Breakers Hotel in Palm Beach,
Florida, it was requested that a summary be developed and used in the Agenda
package.
•
At the December 12, 2003 FMPA Executive Committee and Board Meeting it
was requested that a brief description of the invoice charges be included in this
summary.
•
The following summary schedule is the result of those requests.
Invoice Number
Invoice Date
Description
Amount Paid
210208588
December 8, 2015
PEF Transmission
FPL Transmission
1,282.70
1,098.12
210208608
December 10, 2015
General
1,520.71
210208672
January 13, 2016
General
2,332.15
210208676
January 14, 2016
PEF Transmission
FPL Transmission
2,170.47
4,661.95
TOTAL PAID
RM/DF
Page 64 of 65
$ 13,066.10
AGENDA ITEM 12– MEMBER COMMENTS
Executive Committee
March 17, 2016
Page 65 of 65

Agenda Package - Florida Municipal Power Agency

Transcription

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