Jacksonville, FL — JEA and FPL are planning to shut down the St. Johns River Power Park.
It’s a move the companies say will provide environmental benefits and cost savings, but one that will also mean 204 people lose their jobs.
JEA says they have excess generating capacity, driven in part by a decrease in electricity consumption by JEA customers and nationwide. Closing SJRPP would mean “significant” annual operational cost savings.
“Technology has changed and electricity is able to be produced at a lower cost using natural gas and other methods,” says JEA CEO Paul McElroy.
The cost savings will be used for debt reduction and capital projects.
Their carbon footprint would also decrease by an estimated 30% and the amount of nitrogen in the St. Johns River would reduce, according to JEA. McElroy says they started considering this change in 2008 because of changing environmental regulations, and as the years have progressed, the market has shown it’s the best move.
“Closing the plant early results in enormous value for FPL customers - saving millions of dollars annually as well as continuing to significantly reduce greenhouse gas emissions for all of Florida – another major step forward in our affordable, reliable and clean energy strategy,” says a statement from FPL’s President and CEO Eric Silagy.
The park is a coal-fired electric generating plant owned 80% by JEA and 20% by FPL. It was constructed in the early 1980s and started commercial production in 1987. Another factor in the decision to close the plant is that the agreement with FPL ends in the next few years.
The 204 employees who work at that site have all been given notice they will be laid off effective 1/1/18.
“They have created and operated a world class facility here in Jacksonville, FL and it continues- when it runs and produces it runs at world class standards and rates of production,” McElroy says.
JEA says outplacement and training services have been immediately set up on site. The SJRPP employees will be given hiring priority at JEA and will have the opportunity to apply at FPL as well. JEA further says separation benefit packages are being provided.
“We’re gunna pull all the stops out to get everyone placed over the next nine to really eighteen months in a real productive and good situation for them in the future,” McElroy says.
McElroy says decommissioning will take a few years, including the time needed to dismantle the plant and perform the needed environmental mitigation. That will come with a significant cost, but McElroy says they believe they have that covered. When the decommissioning is done, he says the land reverts to JEA. McElroy says they want to maintain control of the land, noting that there is a wide variety of geography and uses within the site.
“We’ll get to that point and evaluate the best use for our community,” he says.
The plan right now is to decommission the plant in early 2018. Final approval is still needed from JEA’s Board of Directors and other regulatory agencies.
