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DATE:

May 10, 2007

TO:

Office of Commission Clerk (Cole)

FROM:

Division of Economic Regulation (Draper, Colson)

Office of the General Counsel (Jaeger)

RE:

Docket No. 070242-EI – Request for revisions to underground residential differential, by Gulf Power Company.

AGENDA:

05/22/07Regular Agenda – Tariff Filing – Interested Persons May Participate

COMMISSIONERS ASSIGNED:

All Commissioners

PREHEARING OFFICER:

Administrative

CRITICAL DATES:

06/04/07 (60-Day Suspension Date)

SPECIAL INSTRUCTIONS:

None

FILE NAME AND LOCATION:

S:\PSC\ECR\WP\070242.RCM.DOC

 

 Case Background

On April 5, 2007, Gulf Power Company (Gulf) filed a petition for Commission approval of revisions to its Underground Residential Distribution (URD) tariffs and their associated charges.  The URD tariffs apply to new residential developments and represent the additional costs Gulf incurs to provide underground distribution service in place of overhead service.

Rule 25-6.078(2), Florida Administrative Code, requires investor-owned electric (IOU) utilities to file updated URD charges for Commission approval at least every three years, or sooner if a utility’s underground cost differential for the standard low-density subdivision varies from the last approved charge by 10 percent or more.  The rule requires IOUs to file on or before October 15 of each year a schedule showing the increase or decrease in the differential for the standard low-density subdivision.  On October 12, 2006, Gulf notified the Commission, pursuant to Rule 25-6.078(2), Florida Administrative Code, that its underground cost differential for the standard low-density subdivision varies from the last approved differential by 16.71 percent.  Gulf’s current URD charges were approved in 2004.[1]  To comply with both the 3-year and the 10 percent filing requirement of the rule, Gulf filed the instant petition.

The Commission has jurisdiction over this matter pursuant to Sections 366.03, 366.04, 366.05, and 366.06, Florida Statutes.


Discussion of Issues

Issue 1

 Should Gulf’s petition for approval of revisions to its Underground Residential Distribution (URD) tariffs be suspended?

Recommendation

 Yes.  (Draper)

Staff Analysis

On April 5, 2007, Gulf Power Company (Gulf) filed a petition for Commission approval of revisions to its Underground Residential Distribution (URD) tariffs and their associated charges.  Staff is recommending that the tariff be suspended to allow staff sufficient time to review the petition and gather all pertinent information in order to present the Commission an informed recommendation on the tariff proposal.

            Pursuant to Section 366.06(3), Florida Statutes, the Commission may withhold consent to the operation of all or any portion of a new rate schedule, delivering to the utility requesting such increase a reason or written statement of good cause for doing so within 60 days.  Staff believes that the reason stated above is good cause consistent with the requirement of Section 366.06(3), Florida Statutes.

 

 

 

 

 

 

Issue 2

 Should this docket be closed?

Recommendation

 No.  (Jaeger)

Staff Analysis

 This docket should remain open pending the Commission vote on the proposed tariff revision.

 

 



[1] See Order No. PSC-04-0669-TRF-EI, issued July 12, 2004, in Docket No. 040313, In Re: Request for approval of 2004 underground residential cost report and revised tariff sheets by Gulf Power Company.