UPDATE: Florida Power & Light Plans 300-Mile Pipeline
April 07 2009 - 6:15PM
Dow Jones News
Florida Power & Light Co. filed a proposal with state
regulators Tuesday to build a $1.5 billion 300-mile natural gas
pipeline in eastern Florida.
The pipeline, dubbed the Florida EnergySecure Line, would extend
from Palm Beach County in South Florida to Bradford County in the
northern part of the state. The pipeline could enter service as
early as 2014, Florida Power & Light said.
Florida Power & Light is the utility subsidiary of FPL Group
(FPL), Juno Beach, Fla.
The utility reviewed a number of options for meeting gas demand
in Florida, but determined that the proposed pipeline "was the most
cost-effective approach for our customers," said Randy Clerihue, a
spokesman for Florida Power & Light.
The Florida EnergySecure Line would be the third major natural
gas pipeline in the state. Natural gas supplies to the other two,
the Florida Gas Transmission Co. and Gulfstream Natural Gas
pipeline systems, were increased significantly in 2008 with the
construction of the Southeast Supply Header pipeline.
That pipeline, a joint venture between Spectra Energy Corp. (SE)
and Centerpoint Energy Inc. (CNP), extends 270 miles from the
Perryville Hub in northern Louisiana to interconnections with the
two Florida pipelines in southern Alabama.
About two-thirds of the planned pipeline's capacity would be
used to fuel power plants in Cape Canaveral and Riviera Beach that
are being upgraded to run on natural gas instead of fuel oil.
Since the pipeline wouldn't enter service until 2014, customers
wouldn't see increases in their bills related to the pipeline
before that time, Clerihue said.
The Florida EnergySecure line would use existing rights of way
associated with utilities, roads or railroads for about 90% of its
length, Florida Power & Light said.
Florida Power & Light, the largest electric utility in
Florida, serves 4.5 million customer accounts in the state.
-By Christine Buurma, Dow Jones Newswires; 201-938-2061;
christine.buurma@dowjones.com