Please Note: At the end of this blog post is a YouTube video, an update from LWEU Director Ed Liberty explaining why the Orlando Utilities Commission (OUC) was chosen to continue as the City’s electricity power provider. Let’s digress briefly.
It should be noted there is front page news in The Palm Beach Post today about the LWEU (see blog post following this one). News in the Post about the City’s Electric Utility is rare unless it’s news about a power outage or headline-grabbing “Zombie Alert”. And that’s because LWEU adds the “element of complexity” that most reporters try to avoid. However, the news today by reporter Joe Capozzi takes on one of the more complex issues at LWEU, the very real threat of exposed utilities to sabotage.
And briefly, LWEU is a growing utility. And so is Lake Worth Water Utilities (LWWU). Ongoing and future development west of the City is fueling growth in both of these utilities. For the service areas of LWEU and LWWU click on this link (note as growth continues within the City more annexations will occur outside the present municipal limits such as in unincorporated Lake Osborne Estates).
Now back to the news in The Lake Worth Herald and the LWEU agenda item: “Award selection and direction to negotiate power purchase agreement”. The action taken by the Commission was:
Motion made by Commissioner Maxwell and seconded by Vice Mayor Amoroso to approve the selection of the Orlando Utilities Commission for award with direction to negotiate the power purchase agreement for a term of not less than seven years.
The vote was unanimous.
This LWEU purchase power agreement was front page news this week both in the Herald and Coastal & Greenacres Observer. The headline in the Observer:
“OUC Expected to Continue as LW Power Provider”
The Herald headline was slightly different.
Pick up this week’s print edition at the City’s newsstand located at 205 N. Federal Hwy. The Herald is still just ¢50! The Observer is FREE: Click on this link and go to “Options” menu to download the PDF. |
The news in the Herald, three excerpts:
In November 2017, the Lake Worth Electric Utility Advisory Board (EUAB), Electric Utility Director [Ed Liberty] and Vantage Energy began preparing for engagement in the selection process for the next power purchase agreement.
On August 30, 2018, the EUAB held a public meeting to conclude the selection process.
and. . .
The existing power purchase agreement with OUC is set to expire on December 31, 2018. In November 2017, the City Commission issued a partial waver of the City’s Procurement Code to the Lake Worth Electric Utility allowing the Electric Utility to issue a targeted offer to utilities capable of reasonably providing the City with a power purchase agreement. In April 2018, with assistance of Vantage Energy, an outside consultant, the Electric Utility issued an Offer of Memorandum to several utility companies.
more information. . .
After initial discussions with the targeted utilities, the City obtained written proposals from four utilities, OUC, FMPA [Florida Municipal Power Agency], FPL and Next Era. After review of the initial proposals, the City decided not to move forward with Next Era whose proposal was limited to a solar offering only and did not contain the full complement of services the City needs.
After further review and modeling of the proposals, the EUAB conducted an initial round of closed presentations with each of the remaining utilities: OUC, FMPA and FPL. After which the City requested each utility submit its best and final offer to the City. The best and final offers were reviewed by the Electric Utility Director and modeled by Vantage Energy to normalize the offers based on expected energy and capacity amounts to compare the offers.
The EUAB, Utility Director and Vantage Energy met in an open meeting and compared the best and final offers. It was determined all offers met the objectives of the Offer of Memorandum and a determination was ultimately determined by cost factors.
To sum up this process is the YouTube video from the City Commission meeting this week on agenda item C2 for the power purchase agreement with OUC. Mayor Pam Triolo opens up the discussion, Vice Mayor Andy Amoroso asks a question and LWEU Dir. Liberty begins his explanation of the process:
Hope you found this information helpful and Thank You for visiting today. For more about the news on the front page of the Post today continue to the following blog post.