
The Florida Public Service Commission (PSC) has approved Birmingham, Alabama-based Gulf Power Co.’s renewable energy contract with Bay County, Florida. Under the six-year contract, Gulf Power will purchase all the electricity produced by the Bay County Resource Recovery Facility, a municipal solid waste plant located in Panama City, Florida.
“Gulf’s renewable energy purchase promotes Florida’s fuel diversity, further reducing our dependency on natural gas,” says PSC Chairman Julie Brown. “This renewable energy option also reduces landfill waste, saves customers money, and serves the public interest.”
Beginning in July 2017, the contract provides for Gulf to purchase the facility’s 13.65 megawatts of renewable generation for its customers at a fixed price that is expected to save approximately $250,000. The energy-only contract provides security for customers since Gulf pays only for the energy produced; if the plant fails to provide energy, no payment is due.
As required by rule, the PSC considered Gulf’s need for power, and the contract’s cost-effectiveness, payment provisions, and performance guarantees in making today’s decision. This is the third renewable energy contract between Gulf and Bay County, continuing contracts approved in 2008 and 2014. The Bay County Resource Recovery Facility is located in Panama City.
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