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Progress Energy Florida Looks to Increase Generation Capacity; Company to issue request for proposal (RFP) for new unit at Hines.

Progress Energy Florida is preparing to issue a request for proposals (RFP) for firm power supply of approximately 500 megawatts (MW), beginning December 1, 2007. The new capacity is needed to meet a portion of the company's generation requirements and to provide for continued reliable electric service for Progress Energy Florida's 1.4 million customers.

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The RFP will be issued October 7, 2003, and will seek to solicit and review competitive proposals for alternatives to the company's planned generating unit - a 540 MW natural gas-fired combined cycle unit - to be located at the Hines Energy Complex in Polk County, Florida. If no response offers a superior option, Progress Energy would begin construction on Hines 4 in December 2005 with an expected operating date of December 2007.

"Our responsibility is to meet the rapidly growing energy needs of our customers as reliably and efficiently as possible by strategically investing in our infrastructure," said Bill Habermeyer, Progress Energy Florida president and CEO. "Last year alone we added more than 30,000 new customers, and at the same time, the average amount of electricity used by our customers continues to increase. We must continue to meet demand."

Progress Energy currently has one 495-MW natural gas fueled combined-cycle plant operating at the Hines site. The second unit, scheduled for completion in December, will add 529 MW of additional natural gas generation capacity. Hines 3, recently approved for construction by the Power Plant Siting Board, will add 529 MW. Construction on Hines 3 is scheduled to begin in December 2003 to be completed December 2005.

A combined-cycle unit consists of two combustion turbine (CT) generators and a system for recovering exhaust heat from the CTs to produce steam, which generates more electricity by sending the steam through a steam turbine. Thus, for the same amount of fuel, the combined-cycle plant generates about 50 percent more electricity, making it highly efficient. The plant will also be equipped with state-of-the-art air emission controls.

Bids received from qualified bidders will be compared with the Hines 4 self-build option on price, dispatchability, flexibility and reliability of the power offered. Respondents interested in submitting proposals under this solicitation are encouraged to provide notice of intent to bid by 4:00 p.m. on October 14, 2003. Proposals in both hardcopy and electronic format must be received no later than 1:00 p.m. on December 16, 2003 at the following address:
 Dan Roeder
 Project Leader
 System Planning & Operations
 P.O. Box 1551
 410 S. Wilmington Street
 Raleigh, NC 27601
 Phone: (919) 546-7966
 Fax: (919) 546-7558

Proposals will be screened and evaluated between December 16, 2003 and March 5, 2004. Short List determination, if applicable, is scheduled for March 5, 2004. A detailed evaluation of the short listed bids will take place between March 6 and April 27, 2004. The Final List, if applicable, will be determined by April 27, 2004. Contract negotiation and award announcement are scheduled to be completed by July 27, 2004. Filing of contract(s) for certification with the Florida Public Service Commission is scheduled to be completed by September 25, 2004.

The schedule dates provided above are tentative and subject to change. Progress Energy Florida reserves the right to modify the schedule as necessary. The company also reserves the right to cancel, modify, or withdraw the RFP, to reject any and all responses, and to terminate the negotiations at any time during the RFP process.

CONTACT: Corporate Communications of Progress Energy, +1-866-520-6397

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Publication:PR Newswire
Date:Sep 10, 2003
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