Florida Light and Power (FPL) wants to buy and phase out another coal-fired power plant in Florida, a move it says will save its customers an estimated $ 129 million when new gas-fired infrastructure is built in the state.

The NextEra subsidiary on June 20 filed a petition for the Florida Public Service Commission’s (PSC’s) approval to buy the 330-MW Indiantown Cogeneration facility, which is currently owned by Calypso Energy Holdings, in a deal valued at about $ 451 million (including existing debt).

The coal-fired plant is equipped with advanced pollution controls, including selective catalytic reduction technology and a zero-discharge water treatment system. It also sells steam to Louis Dreyfus Citrus, a nearby food processing plant, under an energy services agreement. It is unclear how the deal will affect that contract.

The state regulator approved a power purchase agreement between FPL and the cogeneration facility in 1991 that does not expire until 2025. If the PSC approves the proposal, FPL estimates it will save customers $ 129 million over the remaining life of the contract, approximately nine years.…

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