Case Background
On
March 29, 2017, Tampa Electric Company (TECO or the Company) and Withlacoochee
River Electric Cooperative, Inc. (WREC) filed a joint petition for approval of an
amendment to their current territorial agreement in Pasco County (territorial
amendment). TECO serves retail customers in Hillsborough County and in portions
of Polk, Pinellas, and Pasco Counties. WREC serves retail customers in portions
of Hernando, Citrus, Sumter, Pasco, and Polk Counties.
The
original electric service boundary between TECO and WREC was approved by the Commission
in 1974 in Order No. 6281. The boundary was amended in 1990 in Order
No. 23905 and further amended in 2006 in Order No.
PSC-06-0128-PAA-EU (2006 Order). The 1990 territorial agreement approved in
Order No. 23905 has been placed in the docket file and attached as Attachment A
to this recommendation for informational purposes.
The
2006 Order amended the TECO and WREC territorial agreement approved in 1990 in
Order No. 23905 in three limited geographic areas: the Meadow Pointe
Subdivision, the Belle Chase Subdivision, and the Cannon Ranch Subdivision. The
2006 Order is included as Exhibit A to the petition. Page 7 of the 2006 Order
includes a map showing the agreed upon service boundary modifications relative
to the Cannon Ranch Subdivision in Pasco County. The 2006 Order did not approve
a new territorial agreement and only amended the 1990 territorial agreement
with respect to the three subdivisions listed above.
The
Cannon Ranch subdivision was never developed and in 2016 a new developer
acquired the development rights of the Cannon Ranch subdivision. The new
developer renamed the subdivision Mirada Subdivision and has proposed a
different development plan from the Canon Ranch Subdivision. The instant
petition seeks to only amend the territorial boundaries in the proposed Mirada Subdivision
to accommodate the new development plans (as shown in Attachment B). All other
aspects of the territorial agreement approved in 1990 and amended in 2006 remain
the same.
Staff
issued its first data request on April 21, 2017, to which the responses were
received on May 8,
2017. The Commission has jurisdiction over this matter pursuant to Section
366.04, Florida Statues, (F.S.).
Discussion
of Issues
Issue 1:
Should the Commission approve the joint petition by TECO
and WREC to amend their territorial agreement related to the Mirada
Subdivision, f/k/a Cannon Ranch Subdivision, in Pasco County?
Recommendation:
Yes. The Commission should approve the joint
petition by TECO and WREC to amend their territorial agreement related to the
Mirada Subdivision, f/k/a Cannon Ranch Subdivision, in Pasco County. (Guffey)
Staff Analysis:
In 2016, the new developer who
acquired the former Cannon Ranch Subdivision discussed with TECO and WREC the
provision of electric service to the proposed Mirada Subdivision. Those
discussions led to a mutual agreement among TECO, WREC, and the developer
regarding the most efficient, reliable provision of electricity to the new
subdivision.
As required by Rule
25-6.0440(1)(f), Florida Administrative Code, the parties provided three large
scale maps: a Florida Department of Transportation General County map of Pasco
county, the general area of the Mirada Subdivision, and an expanded view of the
current and proposed boundary lines specific to the Mirada Subdivision. The
specific Mirada Subdivision map is shown in Attachment B to this
recommendation.
The proposed territorial amendment
is to accommodate the proposed new subdivision. Essentially, the centerline of
Mirada Boulevard will serve as the revised territorial boundary between TECO
and WREC as it relates to the Mirada Subdivision. The petitioners assert that
this proposal would allow both utilities to have sufficient access to the areas
to be served and it will facilitate the orderly provision of electricity by the
two utilities. The petitioners further assert that the proposed territorial
amendment will not cause a decrease in the reliability of electric service to
the existing and future ratepayers of either utility and will prevent the
uneconomic duplication of facilities.
The Mirada Subdivision covers 2,350 acres and will have a
total of 4,520 customers when developed. TECO will serve 2,420 customers and
WREC will serve 2,100 customers. As this subdivision has not been developed yet,
there are no customers to be transferred as a result of the proposed territorial
amendment. Similarly, there are no affected customers to be notified. The
petitioners represented that the developer of the Mirada Subdivision has agreed
with TECO and WREC that the new boundary line through the development is
appropriate and acceptable to the developer.
Conclusion
After review of the petition, the proposed territorial
amendment, and the joint petitioners’ responses to its data request, staff
believes that the proposed territorial amendment is in the public interest and
will enable TECO and WREC to better serve the future customers in the Mirada
Subdivision in Pasco County. It appears that the proposed territorial amendment
eliminates any potential uneconomic duplication of facilities and will not
cause a decrease in the reliability of electric service. As such, staff
believes that the proposed territorial amendment between TECO and WREC will not
cause a detriment to the public interest and recommends that the Commission
approve it.
Issue 2:
Should this docket be closed?
Recommendation:
If no protest is filed by a person whose substantial
interests are affected within 21 days of the issuance of the Order, this docket
should be closed upon the issuance of a Consummating Order. (Taylor)
Staff Analysis:
If no protest is filed by a person whose substantial
interests are affected within 21 days of the issuance of the Order, this docket
should be closed upon the issuance of a Consummating Order.
