GRU Authority hears plans for extending the life of plants, new Customer Advocate Program
BY JENNIFER CABRERA
GAINESVILLE, Fla. – At their October 7 meeting, the GRU Authority heard information about the utility’s response to Hurricane Helene, plans to extend the life of existing assets, and a new Customer Advocate Program.
CEO comments
CEO Ed Bielarski addressed comments from members of the public about budget cuts and the response to Hurricane Helene. He said the FY2025 budget for energy delivery, “which are the folks that address the outage, that have the line crews, they’re doing the locates, system control, folks that are managing the energization/de-energization, all the things that go out in the restoration process,” was increased by 7.4% over the previous year: “So there were no cuts related to the very area in which folks are talking about.”
Bielarski said the cuts were not spread across the whole organization but were “strategic,” including internal GRU electric charges and travel costs. He said the tree trimming (vegetation management) budget has increased by 33% over the past three years, from $3.1 million in FY2022 to $4.2 million in FY2025.
In response to another comment about using storm debris as fuel for the biomass plant, he said, “You can use some of that, but for the most part, it’s not conducive to getting that material that is of a certain size and certain specification that is fed into the boilers at the biomass plant… We just don’t use that much of that. So it’s a shame, but it just doesn’t work that way.”
Regarding the utility’s Helene response, Bielarski said the storm was “historic,” with 60+ mph winds, 110 damaged poles, 75 damaged transformers, and over 400 downed wires. He thanked local agencies like law enforcement and the mutual aid teams from other utilities for their help in the restoration effort.
Attorney comments
Authority Attorney Scott Walker said the Authority’s motion for emergency relief to stop any action resulting from the ballot referendum on GRU governance will be heard on October 23.
Integrated Resource Plan
Bielarski said the key element of GRU’s plan is to run existing assets as long as they can; he pointed to the example of the Kelly plant that was “re-powered” in 2021 and is today producing power at $18-20/MW and will continue operating for another 20 years. GRU also converted Deerhaven 2 to run on natural gas instead of coal in 2021, and the utility is looking at extending the life of Deerhaven 1.
Bielarski said, “So my whole point there was – we’ve done this; we can continue doing it… The next thing… is to firm up natural gas supplies. We’re going to be looking to bring a prepayment gas agreement back that will have a discount on future payments of natural gas.” He said he’s heard from the community that they want more renewable energy production, and “one of the ways you get to add solar and some of these other renewable products is to have natural gas that works flexibly to support your needs.”
He said the utility wants to be able to pursue opportunities when they arise instead of being forced into them in unfavorable markets, “and then the other thing we’ll do is look at transmission and generation alliances.” Bielarski referred to a proposed deal with FPL to build a transmission interconnection in Alachua County that fell through in early 2020 because GRU did not have the funds to make the annual payment. He said that opportunity is no longer available, but there may be similar opportunities with other companies, particularly the Florida Municipal Power Agency (FMPA).
Bielarski cautioned that Integrated Resource Plans (IRP) are based on a financial model that incorporates assumptions such as future prices for natural gas and other resources, “so we have to be careful looking at every number as though that’s the number. It’s a range.”
Bielarski showed the differences between the 2019 and 2023 IRPs and said the 2023 IRP indicated that the utility should enter into Power Purchase Agreements (PPA) with other utilities and/or a solar facility. He said it doesn’t make sense for GRU to build its own solar facilities, given the tax credits available to private companies. He said batteries will also be part of the mix.
Bielarski said the Sand Bluff solar deal is an example of how batteries increase the cost of solar: the Sand Bluff deal was originally negotiated at $31.52, less than GRU’s weighted average cost of generation. However, after the Alachua County Commission denied the permit, Origis had to find another location, and the price per megawatt increased to $40.56; Bielarski said solar prices are actually increasing and are now trending above $50/MW because of battery costs.
Bielarski’s “Optionality Plan” is to run existing assets as long as they can, firm up natural gas supplies, pursue additional generation (solar, battery, RICE – natural gas, long-term PPAs) as opportunities arise, and pursue transmission and generation alliances.
“It’s about flexibility”
Bielarski said there was “a lot of hoopla” when he said he was ending the IRP process, but “I saw the information. It gave us the trend that we need to see.” He said GRU’s goal is to pay down debt, “so why would we be building things that add to it?… It’s about flexibility.”
Director Craig Carter asked Bielarski to explain the constraints on solar, adding that the solar capacity is just a fraction of the advertised megawatts and the utility is required to have backup capacity available at all times, “so we’re still having a large expense.” Bielarski said that was correct and added that part of the solar capacity also has to go to charging the batteries during the day.
Bielarski continued, “So it’s not like you could just go to all solar. One of the ladies here was saying we were 32% renewable; we’re not adding any more… [because] you need this flexible power all over the place. Instead, you know, we have a lot of baseload units in our system… You don’t have this fluid generation that goes in and out.”
Costs and risks of extending the life of generating facilities
Director Eric Lawson wanted to know the costs and risks of extending the life of the current plants, and Bielarski said that establishing transmission alliances “takes the risk out of extending your fleet.” He said that if they can’t extend the life of one of the major plants, the power can be purchased to replace it.
Bielarski said, “I want to make a fine point on this because one of the criticisms I’ve had for this has been – they talk about privatizing our system. Every IRP that we do talks about the further de-risking and operation of our generation fleet to have additional transmission access, not that we will give up our balancing authority… I don’t want to lose any of that; I think it’s what makes GRU GRU, and it’s what allows us to get in and out of outages very quickly and sustainably.”
Lawson clarified that Bielarski will bring back the costs of extending the life of the plants, the additional life expected from the investment, and the risks associated with doing that, and the Authority will make the decisions. Lawson also observed that the IRP “really didn’t factor in the debt of GRU.”
Bielarski said the IRP also showed the price of solar going down over the next five to ten years, and “we’re not necessarily seeing that.” He emphasized that a lot of factors go into the cost of various technologies and fuels over time and offered to bring in various consultants to answer questions.
Customer Advocate Program
During a presentation about customer service improvements, Government Affairs and Community Relations Director Yvette Carter presented the following ways to reach GRU’s customer advocates:
Phone: 352-393-1020
Email: CommunityRelations@gru.com
Customer advocates will be in GRU’s lobby at the following times:
- Mondays: 9 a.m. – noon
- Tuesdays: Noon – 3 p.m.
- Wednesdays: 9 a.m. – noon
- Thursdays: Noon – 3 p.m.
- Fridays: 1:30 p.m. – 4:30 p.m.
Director comments
Director Craig Carter mentioned that his term expired on October 1, and “the way it works is, I’m here until the Governor reappoints… So I don’t know what the story is; I’m here right now.” He said he had one Airport Authority member who served five years past the expiration of the term.
Director Chip Skinner suggested televising the meetings, perhaps from a County meeting room. He said he talks to people who say they forget that meetings are streamed, and when they go to Channel 12 and nothing’s there, “they think we’re not doing anything.” Carter said he had previously approached the County about that, and they “didn’t really throw out the red carpet on that idea, to be honest.”
Skinner said that broadcasting the meetings could improve the information received by the public: “I mean, I just got a piece in the mail the other day [that said] we’re raising rates on solar. No, we’re not. We just eliminated the subsidy for people to put solar panels on their homes or businesses… I’m not sure about any of you, but I have not been contacted by Ron DeSantis. His office doesn’t call me and say, ‘We need you to vote this way,’ so [the assertion] that he’s running the board and the utility is a falsehood. I have not spoken to the man himself. I have not spoken to his office since I was appointed.”
New GRU Customer Advocate Program. That’s great! Let’s all sit beside the campfire and sing kumbaya!
Right, just clap and smile. At least the City Comm doesn’t have GRU as a piggy bank anymore. Using GRU all these years to pay for stupid ideas to show how liberal they are during their few short years in office.
The last big solar contract a huge mistake. And saying biomass is “renewable” is fantasy. The carbon is all released in the 30 seconds or so it takes for the tree to burn instead of living until it dies then slowly rotting – all over 100 years. Obama’s green plan didn’t even include biomass.
The state legislature mandated this $billion debt be paid off in huge chunk so using every penny available, which means cuts. Haven’t heard any of that lately.
Carter is a corkscrew anyway who sucks up to the liberal nut jobs. Get him replaced.
Interesting comment about not being lobbied by DeSantis on GRU cutting subsidies for solar. The fact is, if they don’t answer to DeSantis, he picked them for a reason, and more importantly, they don’t answer to anyone, especially the citizens of Gainesville who own GRU.
Here’s a nice example of that from a previous meeting on solar:
“…We’re changing how we’re going to compensate for the solar,” Authority Chair Craig Carter said. The resolution to change the system passed 3-0, with member James Coats absent from the meeting. Moving forward, grid-provided energy will be billed at retail rates and those who generate excess solar energy will be credited at the current fuel adjustment rate….Though GRU staff called this a “straightforward’ change in line with the way the utility industry is moving, nearly 30 residents spoke out against the change during public comments.
…Toward the end of the meeting, uproar from the audience caused Carter to ask police to escort noisy attendees out of the room if necessary. He expressed his disappointment in the lack of civility in the room while an attendee yelled that allowing only one minute of time per speaker was not civil.
“We’re a board up here, we’re trying to conduct business with the information we have. It’s real simple. You don’t like what we are, that’s wonderful,” Carter said…”
In other words “Screw you guys, we don’t have to listen to anyone.”
https://www.gainesville.com/story/news/local/2024/04/18/gru-authority-makes-change-to-solar-net-metering-system/73370782007/
Ain’t democracy wonderful?
ED:
Hanrahan & Co sold us that world saving, CO2 reducing , biomass plant to stop climate change …
it was supposed to be able to burn all that woody biomass left over from the clearing of land to build subdivisions instead of burning the remnants on-site, and was supposed to be able to burn that
Woody biomass fuel from storms…
Yeah, we were given the “big lie”…
Manmade climate change is BS and I agree with you to using best management practices to get the utility back on track and not implementing foreign UN policy to stop climate change here…
Do you even use that biomass plant to generate electricity, or is it
Off-line because it costs too much to operate?
You are correct, Sherman.
Not that Carter’s the one I would cite as an example of what the Board thinks, but:
How many “residents” were disadvantaged elderly just trying to make ends meet, and how many were businesses that covered large roofs with solar panels as a taxpayer-funded investment?
The reason that the Board was formed was because it was literally run into the ground by you and people like you who have no clue how to run a business much less a utility. You used GRU for a piggy bank for your political agendas with no concept of the realities. You liberal idiots have gotten every dime you can and now it’s time for you to suck it up and deal with the consequences. I’m not sure that GRU can ever become what was. We had the lowest rates in the state many years ago under Mike Kurst. Now everyone must pay the price for the stupidity of your and those like you political agendas. I’m sick and tired of a bunch of know nothing morons trying to live in fantasy land, telling GRU how they should operate. GRU’s job is to provide services as reliably and economically as possible.
I guess that’s aimed at me.
Old, I’ve been literally making weekly payroll for 46 years, same business, no bankruptcies.
How about you?
You didn’t have the city commission requiring you to pay 150% of your profit to them every year, either.
Not entirely Jazz, but if the shoe fits. Making “payroll” does not preclude you from being a pompous moron. I have 40 years of actual experience in the operation of an electric utility. and have a pretty decent idea of how things ought to work and what doesn’t work. The proof that you are nothing more than what I have described is in your own words.
Referring to ANY information from the biased, inaccurate, untruthful, deceitful and slanted, one sided Gainesville Sun is not worth the time it takes to read it. FYI, the way it was set up before was for the political elite and their sponsors to receive more for their electricity than any other source available to GRU. Tell ALL the facts, not just the inaccurate soundbites of the Democrat machine.
Roger, the point I made is not what GRU should do about solar power from residences, but the complete lack of accountability of the “authority”. If they don’t answer to DeSantis, they answer to no one, and don’t mind telling us that.
How much has the situation changed? The “accountable” governance that existed before dove into green technology deals despite loud and qualified public outcry over the cost and risks.
“You have to vote out the leaders” sounds like a great accountability plan, but in the words of Churchill, “However beautiful the strategy, you should occasionally look at the results”.
If there’s another option that provides both full local accountability and efficient utility operation– now’s the time to share.
Gutting solar is just another plank of FPL’s and the utility industries playbook.
Carter and this board work for the utility and the utility industry and not the ratepayers.
The slow sale of this utility to FPL continues. It’s following the same path as the attempted coup of JEA.
Watch for “community grants” to start flowing to board authority members favorite charities.
And using ratepayer money for political activity is another shameful act.
These unaccountable board members are untouchable.
I can’t imagine any rational company buying GRU…..several city commissions have seen to it that GRU has so much debt no one would buy it. We’re stuck with it thanks to pegeen, et al.
If the cost of batteries is an issue, what about other technologies like sand batteries and gravity batteries? They regularly backflush the wastewater treatment facility; any way some of that kinetic could be recovered to help fill the tower?
If only there were some large research facility nearby that could partner with GRU in looking for a novel energy storage solution…. hm…
Solar is just not a good way for a utility to produce reliable power. Period.
I agree but for a different reason: if end users can generate enough power of their own, the utility has no reason to exist. That said, the issue for both groups is not the generation of the energy, but the reliable and safe storage of it.
Mr. Bielarski fails to mention a few facts. GRU is without “firm availability” on deregulated transmission lines owned by Duke that connect GRU to sources of purchased power. In order to replace Dearhaven 2 (232 MW), GRU will have to pay for new transmission Line infrastructure owned by another utility that will charge GRU escalating “wheeling fees” IN ADDITION TO the cost of purchased power. We could not afford to pay FP&L for this lifeline in 2020 and we can not afford this today either. Construction of a new plant is not feasible due to our massive debt. The biomass plant remains uneconomic. Our “fuel adjustment charge” is an outlier and this will only get worse. The biomass plant is depreciating faster than the backloaded debt is being amortized. The notion of a 10 year rate freeze is a hoax.
So, what is the solution?
Is bankruptcy inevitable to extinguish debts?
I believe that GRU will eventually require a state funded bailout of some sort. GRU may be the only electric utility so dependent on biomass and coal in the country. Debt service on Bielarski’s GRU debt will not peak until 2027 and will not return to 2022 levels until 2041. GRU will lose any service territory that it cannot properly serve and that will trigger bankruptcy and/or dissolution of the City of Gainesville.
Agree that eventually (< 10 yrs) GRU will not be able to sustain itself (Bielarski retired before that). Best scenario within 5 yrs: GRU be swallowed up by FPL, Duke, JEA, TEC and give the city a portion of the debt to payoff themselves. $50 m?
Might also clip the wings of liberal free-spenders on stupid ideas (Ward, Poe, PH, etc.)
In other words, Jim, pegeen hosed us.
That is right.
Mr. Bielarski is going to stab everyone in the back to feed and preserve his own ego. This board has created a monster.
What evidence do you have of that and where is he wrong in his statements?
I agree.
Solar generation is insane. Use something reliable such as coal, natural gas or nuclear. Period.
Another meeting without addressing the millions of dollars that are still handed to the city each year to pay for its ridiculous spending. GRU’s in major debt…they don’t have the money to pay others.
Stop paying for the city government’s operations and stop purchasing Hexafluorosilicic acid from The Mosaic Company to dump in our water supply. That’ll save millions on each front. The city is poisoning us spiritually while GRU’s fluoridated water supply is poisoning us physically.