Most electric customers only see their power provider as the source of their electricity. Florida Municipal Power Agency (FMPA) and its members do that, and more.
FMPA provides low-cost, reliable and clean power, plus value-added services to 31 municipal utilities in Florida. By combining the strengths of individual utilities with the strength of a statewide organization, like FMPA, Florida municipals can pool their collective resources to enhance competitiveness, gain economies of scale, and offer affordable electricity to customers.
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Job One: Providing Affordable, Reliable Power
FMPA takes the job of providing affordable power seriously because we know the cost of electricity is important to customers. In Florida, power use is 20% higher than the national average and income is lower than the national average.
For nearly one in three residents of our state, 10% of their average monthly income goes to their electric bill, so people are counting on their utility to provide low-cost, reliable electricity.
The good news FMPA’s power costs are the lowest they have been since 2004, and we have record reliability. In addition to that, FMPA offers other value-added services to its members that benefit their customers.
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FMPA is More Than a Wholesale Power Provider
FMPA is more than a power source for its members. The same economies of scale that helps lower wholesale power costs can be used to provide common services in a better, faster and cheaper way.
We offer a variety of member services in the broad categories of distribution system operations, joint purchasing and technical training. In addition, FMPA provides professional support services in areas that include engineering, legal, regulatory compliance, communications, human resources, information technology, cybersecurity, finance, financial planning and more.
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FMPA Makes Big Impact for a Small City
In 2019, FMPA and its members came together to help the city of Bushnell when the city had an opportunity to significantly expand its service territory.
Bushnell is one of the smallest municipal electric utilities in Florida with 1,100 customers. The expansion project increased the city’s electric customers by 50% to nearly 1,800 electric meters and nearly doubled its peak electric demand. It allowed the city to enhance its already reliable electric system and provide more opportunities to keep electric rates low for its customers.
Completing this major system expansion in less than two years was a challenge for the city staff, which numbers about 30, with six in the electric department. The city reached out to FMPA and other public power utilities to make this transition happen.
In order to transition customers in a cost-effective way, FMPA offered several vital services to Bushnell. We provided legal and strategic assistance for the territorial negotiations and then engineering support to design the system expansion. Another key step was arranging for financing to help the city fund the expansion. And FMPA’s governing board made a major contribution to this effort by creating an economic development incentive rate that offered a discounted rate on power sales.
FMPA and its members provided operational assistance to help Bushnell’s line crew install hundreds of poles and miles of wires. Eight public power utilities lent crews to complete the system expansion, including Tallahassee, Ocala, Gainesville, Kissimmee, Fort Pierce, Lakeland, Mount Dora and Leesburg.
It takes a variety of professionals to accomplish a project of this magnitude. FMPA’s public relations team worked with Bushnell to communicate with new customers, and FMPA’s financial planning team consulted with the city on budgets, costs and rates.
It’s not often that any utility—big or small—doubles its electric customers overnight. FMPA and its members were instrumental in supporting Bushnell to successfully achieve this monumental accomplishment in a cost-effective way.
Most states have wholesale power providers that offers services like FMPA. All wholesale providers can provide value for customers with the right plan and a clear vision.
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FMPA Determined to Do More
By working through FMPA, Florida municipals can provide many benefits to customers. Although what we do is behind the scenes and invisible to retail electric customers, it makes a direct impact on their day-to-day lives.
We know our efforts impact millions of people in Florida and there is more we’re determined to do.