Florida PSC approves cost recovery for Gulf’s purchase agreement with Morgan Stanley

The Florida Public Service Commission (PSC) approved a cost recovery on Tuesday for Gulf Power Company’s energy purchase agreement with Morgan Stanley Capital Group, Inc. to encourage the development of additional wind generation sites.

The 20 year agreement is expected to yield approximately $21 million in customer savings. The approval resembles the Gulf Kingfisher Wind Farm recovery agreement approved by the PSC in 2015.

“Customers will realize savings within the first year of Gulf’s power purchase agreement, and it also encourages renewable energy development,” PSC Chairman Julie Brown said. “The agreement is a win for customers, the economy, and the environment.”

Morgan Stanley will deliver an amount equal to the monthly energy generated by a portion of the Kingfisher Wind Farm, located in Oklahoma, under the terms of the agreement. The specified portion of Kingfisher Wind Farm is predicted to generate approximately 94-megawatts of energy per month. Gulf will be credited all associated renewable attributes. Renewable attributes will include renewable energy credits (REC) determined by the relative output of the Kingfisher Wind Farm.

Gulf is expected to return all proceeds obtained from REC sales to customers by decreasing the price of fuel.