DATE:	January 29, 2009
TO:	Office of Commission Clerk (Cole)
FROM:	Division of Economic Regulation (Draper) Office of the General Counsel (Williams)
RE:	Docket No. 080719-EI – Petition to modify Tariff Sheet Nos. 4.113 and 4.122 regarding conversion of and construction of underground residential facilities by Progress Energy Florida, Inc.
AGENDA:	02/10/09 – Regular Agenda – Tariff Filing – Interested Persons May Participate
COMMISSIONERS ASSIGNED:			All Commissioners
PREHEARING OFFICER:			Administrative
CRITICAL DATES:			02/17/09 (60-Day Suspension Date)
SPECIAL INSTRUCTIONS:			None
FILE NAME AND LOCATION:			S:\PSC\ECR\WP\080719.RCM.DOC

 

 Case Background

On December 19, 2008, Progress Energy Florida (PEF) filed a petition to modify Tariff Sheet Nos. 4.113 and 4.122 regarding conversion and construction of underground residential facilities. 

Customers who opt to convert their overhead electric distribution system to underground facilities are required to pay PEF a Contribution in Aid of Construction (CIAC), which represents the conversion costs incurred by PEF.  The proposed tariff revisions are designed to implement the requirements of Rule 25-6.115(11)(a), Florida Administrative Code (F.A.C.), that PEF include the net present value of operations costs, including the average historical storm restoration costs, for comparable facilities over the expected life of the facilities in determining the CIAC paid by the customer.  Rule 25-6.115, F.A.C., was amended in February 2007 to require that the calculation of CIAC paid by customers for underground conversions include the difference in the net present value of operational costs between underground and overhead systems.[1]

In Order No. PSC-08-0786-TRF-EI, issued on December 2, 2008, the Commission directed PEF to refile its underground residential distribution (URD) tariff to include in its differential lost pole attachment revenues.[2]  Pole rental revenues are revenues paid to PEF for use of the utility’s poles by third-party attachers, such as cable and telephone companies.  This petition implements the Commission’s order.

This recommendation is to suspend PEF’s proposed tariffs.  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 the Commission suspend PEF's proposed tariff sheets Nos. 4.113 and 4.122 regarding conversion of and construction of underground residential facilities?

Recommendation: 

 Yes.  (Draper)

Staff Analysis: 

  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 with 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. (Draper, Williams)

Staff Analysis: 

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