Case Background
On August 25,
2017, Tampa Electric Company (TECO) filed a petition for an expedited approval
of a temporary territorial variance (variance). The variance will enable TECO
to provide temporary electric service to Mosaic Fertilizer, LLC’s (Mosaic)
Peacock mining facility outside TECO’s approved service territory. TECO is an
investor-owned public utility subject to the jurisdiction of the Commission
under Chapter 366, Florida Statutes (F.S.). Mosaic is in the business of mining
and processing phosphate and manufacturing fertilizer.
Pursuant to a
territorial agreement the Commission approved between Duke Energy Florida, LLC (Duke) and Peace River Electric
Cooperative (PRECO), the Peacock facility is served by Duke. This 1994 territorial agreement approved
Duke’s right to serve transmission level customers, such as Mosaic, in PRECO’s
service territory because PRECO did not have the appropriate facilities to meet
Mosaic’s transmission level electric needs. The instant petition requests that
TECO, instead of Duke, provide temporary service to Mosaic’s Peacock mining
facility.
TECO and Duke
responded to staff’s first data request on September 18, 2017. The map and
legal description of the Peacock facility are attached to the petition in
Exhibits A and B. Florida Power & Light Company (FPL), Duke, and PRECO’s consent
to the approval of the variance are shown in Exhibit C of the petition. FPL also
has the ability to serve Mosaic; however, FPL does not have substations that are
close to the Peacock facility and would need to invest in system upgrades.
Therefore, FPL provided their consent to the proposed variance.
In 2007, the
Commission approved a similar temporary territorial variance allowing TECO to
provide electric service to Mosaic’s Altman facility in Manatee County. The Altman facility is located in PRECO’s
service territory; however, PRECO does not have the facilities to serve the
Altman facility. The Commission has jurisdiction pursuant to Section 366.04,
F.S.
Discussion
of Issues
Issue 1:
Should the Commission approve TECO’s petition for a
temporary territorial variance?
Recommendation:
Yes. TECO’s petition for a temporary territorial
variance is in the public interest and should be approved. During the period of
its retail electric service to the Peacock facility, TECO should report to the
Commission on an annual basis regarding the status of the temporary service
through its conclusion. TECO should file its first status report in the docket
file in October 2018, or sooner if concluded. (Doherty, Wooten)
Staff Analysis:
The proposed variance addresses the supply of
electric service to Mosaic’s Peacock facility located in Manatee County. The
Peacock facility is an industrial phosphate mining operation and associated
pump operation, and takes service at 69 kilovolt (kV) transmission level. Once
the mining has been completed in a particular area, the facility moves to
another mining location.
The Peacock facility added within the last year 20 to 25
megawatts (MWs) of load. The increase in load is causing adverse voltage
conditions on PRECO’s distribution facilities, as both the Peacock mining
facility and PRECO distribution system are connected to the same two
substations. PRECO contacted Duke in September 2016 and reported the adverse
voltage effects on its system. Duke and Mosaic discussed its operations to find
ways to reduce the voltage issues to PRECO. Duke stated that no feasible or
cost effective solution was identified.
According to TECO’s petition, Mosaic has indicated that it
needs to continue taking service at the Peacock facility to accommodate its
phosphate mining operations. TECO asserts in the petition that it can provide immediate
electric service to the Peacock facility from an existing meter just over the
Manatee/Hillsborough County border, which is in TECO’s service territory. TECO
has indicated that it does not need to invest in any additional facilities to
serve the Peacock facility and has sufficient capacity to serve the load. TECO
also stated that the Peacock facility load will not create voltage issues for
TECO. Based on the assertions made in the petition, staff believes the proposed
variance will not cause a decrease in the reliability of electrical service to
the existing or future ratepayers of TECO and the adjacent utilities (FPL,
PRECO, and Duke).
It is TECO’s intention to serve the Peacock facility until
the mining at that facility is complete, at which point, the temporary variance
will no longer be necessary. TECO will file a final status report to indicate
that TECO is no longer providing service to the Peacock facility. Mosaic’s
mining plans are subject to change; however, TECO stated that Mosaic expects
the mining activity at the Peacock facility to continue for a period of approximately
six months to a year.
While TECO will serve the Peacock facility to meet the
facility’s immediate need for electric service, Duke stated that it started the
preliminary work to construct a new substation and eight miles of 230 kV transmission
lines. The Duke project will support Mosaic’s projected future mining load and
also eliminate the voltage issues in the area. Duke stated that additional
customers could also benefit in the future with the new substation and
transmission line. The Duke project is expected to be completed by May 2019.
Conclusion
Based on the petition and responses to staff’s data
request, staff recommends that TECO’s petition for a temporary territorial
variance is in the public interest and should be approved. During the period of
its retail electric service to the Peacock facility, TECO should report to the
Commission on an annual basis regarding the status of such temporary service
through its conclusion. TECO should file its first status report in the docket file
in October 2018, or sooner if concluded.
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. (Mapp)
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.
