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Joe Deely's picture
Partner Deely Group

Involved with high-tech for last 30 years. Interested in energy.

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  • Jun 27, 2020

Progress continues in the SouthEast as Jacksonville utility (JEA) and Florida's largest utility (FPL) announce a joint agreement to shut down unit 4 at Scherer coal plant in Georgia.

JEA plans to retire one unit of the coal-fired Plant Scherer in Juliette, Georgia, and enter a 20-year power purchase agreement with Florida Power & Light Co. The city-owned utility’s board of directors voted 5-0 on June 26 to approve the transaction and enter final negotiations with FPL on a deal that JEA officials say will have a 20-year, $191 million net value savings and reduce the utility’s carbon emissions by 1.3 million tons per year by 2024.

According to JEA officials, Scherer is the largest coal-fired power facility in the U.S. with four power generating units. 

JEA owns a 23.64% stake in the unit 4 with the NextEra Energy Inc subsidiary FPL controlling the remaining 76.36%. That’s a $122 million capital asset to JEA, according to utility officials, or 5% of its electric system value. 

The cooperation agreement with FPL would close Unit 4 on Jan. 1, 2022.

CO2 emissions continue to drop across the US.


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Matt Chester's picture
Matt Chester on Jun 29, 2020

Look at FL statewide generation-- coal is getting close to 'neglible' territory. Definitely need to get that Nat gas bar down, though. 

Joe Deely's picture
Joe Deely on Jun 29, 2020

Yep - FL utilities - are way too dependent upon NG. However, once coal is gone any new solar generation will be replacing NG. (Assuming flat demand)

So the amount of NG generation in the future will really depend on whether solar keeps growing in Florida. My guess is that it will boom - Why?

  • Utilities will want a hedge against all that NG
  • Solar continues to get cheaper.  Adding solar to the mix will lower overall cost for FL utilities.
Matt Chester's picture
Matt Chester on Jun 29, 2020

Agreed-- I'm optimistic! And as a resident of Central FL, I can't help but share my favorite local solar farm: 

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