DATE:	October 11, 2007
TO:	Office of Commission Clerk (Cole)
FROM:	Office of the General Counsel (Bennett) Division of Economic Regulation (Redemann, Rieger)
RE:	Docket No. 070546-EI – Petition for expedited approval of temporary territorial variance by Tampa Electric Company.
AGENDA:	10/23/07 – Regular Agenda – Proposed Agency Action - Interested Persons May Participate
COMMISSIONERS ASSIGNED:		All Commissioners
PREHEARING OFFICER:		Carter
CRITICAL DATES:		None
SPECIAL INSTRUCTIONS:		None
FILE NAME AND LOCATION:		S:\PSC\GCL\WP\070546.RCM.DOC

 

 Case Background

On July 30, 2007, Tampa Electric Company (TECO) filed a petition for expedited approval of a temporary territorial variance.  This variance will enable TECO to provide retail electric service to a transmission level (69 kV) customer in Manatee County who is located within an area currently served by Peace River Electric Cooperative, Inc. (PRECO).  Relevant Commission approved agreements were considered in Docket Nos. 810466-EU, 870303-EU, 870816-EU, and 940376-EU.[1]

This is staff’s recommendation regarding the utility’s petition for a temporary territorial variance.  The petition is appended to this recommendation as Attachment A.  The Commission has jurisdiction over this matter pursuant to section 366.04, Florida Statutes, and Rule 25-6.0440, Florida Administrative Code.

Discussion of Issues

Issue 1: 

 Should the Commission approve Tampa Electric Company's petition for expedited approval of a temporary territorial variance?

Recommendation: 

 Yes.  The petition for expedited approval of a temporary territorial variance is in the public interest and should be approved.  During the period of its retail electric service to the Altman mining facility (Altman facility) in Manatee County, the utility should report to the Commission on an annual basis regarding the status of such temporary service through its conclusion.  (Bennett, Redemann, Rieger)

Staff Analysis:  The

 utility has indicated that a mining company (Mosaic Fertilizer LLC or Mosaic), to which it currently provides transmission level (69 kV) retail service in Hillsborough County, needs electric service at its Altman facility in rural northern Manatee County.  A map and legal description of the Altman facility are included in Attachment A.  The location of the Altman facility is currently in an area served by Peace River Electric Cooperative, Inc. (PRECO).  However, PRECO does not have facilities in place to provide the necessary service.  According to the utility’s petition, Mosaic has indicated that it has a pressing need to commence taking electric service at the Altman facility at the earliest possible date to accommodate its phosphate mining operations.

The petition indicates that the relevant Commission approved agreements, referred to in the Case Background, and the provisions of Chapter 366, Florida Statutes, contemplate the consideration of good engineering practices and the avoidance of uneconomic duplication of generation, transmission and distribution facilities.  The adjacent utilities, Florida Power & Light Company (FPL), PRECO, and Progress Energy Florida, Inc. (Progress), agree that TECO should be authorized to serve the Altman facility pursuant to the proposed variance.  Included with the petition (Attachment A) are the signed consent statements of FPL, PRECO, and Progress recommending that TECO’s petition be approved.  These stipulations point out that the relief requested by TECO in its petition is economically sound for all affected persons and consistent with good engineering practices. 

TECO can provide immediate electric service to the Altman facility from an existing meter located within TECO’s electric service territory just over the Manatee/Hilllsborough County border in Hillsborough County.  This facility currently supplies service to Mosaic’s Four Corners Plant which processes phosphate ore.  TECO’s existing meter is located approximately 3.5 miles from the Altman facility.  Mosaic will be responsible for constructing a 69 kV transmission line from the Altman facility and tying into Mosaic’s existing 69 kV line which is fed from the existing TECO meter.  TECO has indicated that it will not be necessary for it to invest in any additional facilities to accommodate this project.

The petition states that service to the Altman facility will be temporary.  Mosaic has indicated to TECO that it expects to require the provision of electric service for a period of several years.  TECO is prepared to provide service as long as necessary.  TECO commits to report to the Commission on an annual basis regarding the status of such temporary service to the Altman facility through the duration of the service.

            Based on the above, staff recommends that TECO’s petition for expedited approval of a temporary territorial variance is in the public interest and should be approved.  During the period of its retail electric service to the Altman mining facility in Manatee County, the utility should report to the Commission on an annual basis regarding the status of such temporary service through its conclusion.

  
Issue 2:

 Should this docket be closed?

Recommendation: 

 If no person whose substantial interests are affected files a protest to the Commission’s proposed agency action order within 21 days, the docket may be closed upon issuance of a consummating order.  (Bennett)

Staff Analysis: 

  If no person whose substantial interests are affected files a protest to the Commission’s proposed agency action order within 21 days, the docket may be closed upon issuance of a consummating order.