DATE:	September 20, 2012
TO:	Office of Commission Clerk (Cole)
FROM:	Office of the General Counsel (Lawson) Division of Engineering (Rieger)
RE:	Docket No. 120171-EU – Joint petition for approval of amendment to territorial agreement in St. Johns County between Florida Power & Light Company, a Florida corporation, and JEA, a Florida municipal corporation.
AGENDA:	10/02/12 – Regular Agenda – Proposed Agency Action – Interested Persons May Participate
COMMISSIONERS ASSIGNED:			All Commissioners
PREHEARING OFFICER:			Brown
CRITICAL DATES:			None
SPECIAL INSTRUCTIONS:			None
FILE NAME AND LOCATION:			S:\PSC\GCL\WP\120171.RCM.DOC

 

Case Background

On June 11, 2012, Florida Power & Light Company (FPL) and Jacksonville Electric Authority (JEA) filed a joint petition for approval of an agreement amending an existing territorial agreement (amended agreement) between the two utilities in St. Johns County.  FPL and JEA are parties to a currently effective territorial agreement (current territorial agreement) delineating their respective territories in Duval and St. Johns counties, which was approved by Order No. PSC-98-1687-FOF-EU.[1] 

This recommendation addresses the parties’ joint petition for approval of the amended agreement.  The Commission has jurisdiction over the matter pursuant to Section 366.04, Florida Statutes (F.S.).

 

Discussion of Issues

Issue 1: 

 Should the Commission approve the joint petition for approval to amend to territorial agreement in St. Johns County between FPL and JEA?

Recommendation: 

 Yes.  The joint petition for approval of the amended territorial agreement between FPL and JEA is in the public interest and should be approved.  (Rieger, Lawson)

Staff Analysis: 

 Pursuant to Section 366.04(2)(d), F.S., the Commission has the jurisdiction to approve territorial agreements between and among rural electric cooperatives, municipal electric utilities, and other electric utilities.  Pursuant to Rule 25-6.0440(2), F.A.C., in approving territorial agreements, the Commission may consider the reasonableness of the purchase price of any facilities being transferred, the likelihood that the agreement will not cause a decrease in the reliability of electric service to existing or future ratepayers, and the likelihood that the agreement will eliminate existing or potential uneconomic duplication of facilities.  Unless the Commission determines that the agreement will cause a detriment to the public interest, the agreement should be approved.  Utilities Commission of the City of New Smyrna v. Florida Public Service Commission, 469 So. 2d 731 (Fla. 1985). 

On June 11, 2012, FPL and JEA filed a joint petition for approval of an amended agreement.  According the petition, the amended agreement, which is to become effective upon the Commission’s approval, alters the territorial boundary between the parties along Palm Valley Road, south of the Nocatee Parkway, in St. Johns County.  The area lies just northwest of, and is contiguous with, the current territorial boundary between FPL and JEA.  The property, which includes approximately 17 acres, will contain 28 proposed single-family residential lots.  While the area is presently within JEA’s territory, it is part of a larger residential development that began construction in April 2012, in FPL’s service territory.

JEA’s infrastructure is located over a half mile from the property, while FPL’s infrastructure is approximately 600 feet away.  Due to the close proximity of FPL’s existing infrastructure to this site, the parties agreed to modify the territorial boundary to allow FPL to serve the electric needs of the additional seventeen acres of the development.  In response to staff’s data request, FPL plans to extend three-phase primary underground cable and conduit from existing underground facilities to the area.  FPL also indicated that facility design is complete and FPL plans to meet a requested end of October 2012 service timeline.

According to the amended agreement, there are currently no existing customers or electric facilities in the amended area, and FPL’s provision of service to the area will avoid unnecessary duplication of services and provide for the most cost effective provision of service to utility customers.  The amended agreement also indicates that all other parts of the current territorial agreement shall remain in effect.  The amended agreement, as well as associated maps and territory description delineating the proposed amended area, are attached to this recommendation as Attachment A.

It appears that the amended agreement proposed by FPL and JEA eliminates existing or potential uneconomic duplication of facilities and does not cause a decrease in the reliability of electric service to existing or future ratepayers.  Based on all of the above, staff recommends that the joint petition for approval of the amended territorial agreement between FPL and JEA is in the public interest and should be approved.

Issue 2: 

 Should this docket be closed?

Recommendation: 

 Yes.  If no person whose interests are substantially affected timely files a protest to the Commission’s Proposed Agency Action Order, this docket should be closed upon issuance of a Consummating Order.  (Lawson)

Staff Analysis: 

 If no person whose interests are substantially affected timely files a protest to the Commission’s Proposed Agency Action Order, this docket should be closed upon issuance of a Consummating Order.