OREANDA-NEWS. NextEra Energy's Florida Power & Light (FPL) utility plans to buy and eventually shut a 250MW coal-fired plant from which it has purchased power for more than 25 years.

FPL, Florida's largest utility, wants approval from state regulators to buy the Cedar Bay coal plant in Jacksonville for \$521mn, then terminate the long-term power contract and cut plant operations by 90pc.

The utility plans to decommission Cedar Bay within two to three years, once new interstate natural gas pipelines are completed to improve the utility's access to the cleaner-burning fuel and making Cedar Bay uneconomical to operate. FPL is underwriting construction of the third interstate gas pipeline system in Florida, expected to enter service in 2017.

FPL projects the Cedar Bay deal will save its customers \$70mn and cut CO2 emissions in the state by nearly 1mn tons/yr.

Under the existing purchased-power agreement which began in 1988, FPL pays \$120mn a year to Cedar Bay in fixed payments for capacity and operating and maintenance. The amount increases annually until the contract expires in 2024.

Since 2001, FPL has invested billions of dollars to modernize its older oil and gas-fired generating fleet and now produces power from efficient gas plants and zero-emissions nuclear and solar energy.

FPL plans to triple its solar capacity by late 2016.

Closing the Cedar Bay plant will help Florida meet the US Environmental Protection Agency's proposed Clean Power Plan targets for CO2 reduction, FPL said.

FPL said it wants to complete the purchase of CBAS Power Inc., indirect owner of the plant, from CBAS Power Holdings by 31 July.