Case Background
On June 1, 2018,
Tampa Electric Company (TECO) filed a petition for approval of a temporary
territorial variance (variance). The variance will enable TECO to provide
temporary electric service to Mosaic Fertilizer, LLC’s (Mosaic) Four Corners
South 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 Four Corners South 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 Four Corners South
facility until Duke completes construction of a new transmission line in the
region.
TECO and Duke
responded to staff’s first data request on July 16, 2018. The map and legal
description of the Four Corners South 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 proposed variance are shown in Exhibit C of the
petition. FPL also has the ability to serve Mosaic; however, FPL does not have transmission
facilities that can serve the Four Corners South facility and would need to
invest in system upgrades. Therefore, FPL provided their consent to the
proposed variance.
In 2017, the
Commission approved a similar temporary territory variance allowing TECO to
provide electric service to Mosaic’s Peacock mining facility in Manatee County,
while Duke constructs a new transmission line to accommodate Mosaic’s mining
operations and eliminate voltage issues in the area. 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. The petition for the 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 Four Corners South facility in
Hardee County, 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 August 2019, or
sooner if concluded. (Doherty)
Staff Analysis:
The proposed variance addresses the supply of
electric service to Mosaic’s Four Corners South facility located in rural
northern Hardee County, Florida. The Four Corners South facility is an
industrial phosphate mining operation and associated pump operation. The
facility takes service at 69 kV transmission level. Once the mining has been
completed in a particular area, the facility moves to another mining location.
The Four Corners South facility will be adding
approximately 70 megawatts of load. Duke expects that this increase in load
will cause adverse voltage effects on Duke and on PRECO’s facilities. Both Duke
and PRECO are served from the same transmission line that serves the Four
Corners South facility. Mosaic expects the mining activity to cause the adverse
voltage beginning October 1, 2018. Duke states that it will be able to serve
this additional mining load, without adverse voltage effects, once the new 230
kV line and substation are completed in May 2019.
TECO asserts in the petition that it can provide immediate
electric service to the Four Corners South facility from an existing meter
located within TECO’s electric service territory just over the
Manatee/Hillsborough County border in Hillsborough County. TECO also stated
that is has sufficient capacity to serve the load. The Four Corners South
facility is located 10 miles from TECO’s facilities and Mosaic will reimburse
TECO for any upgrades needed to provide temporary power service to Mosaic’s
mining operations. Mosaic owns transmission facilities behind TECO’s meter.
TECO states that it is prepared to serve this load beyond
May 2019, if Duke is not finished with constructing the 230 kV line. TECO will
file a final status report with the Commission to indicate that TECO is no
longer providing service to the Four Corners facility.
Conclusion
Based on the assertions made in the petition, staff
believes that the proposed variance will not cause a decrease in reliability of
electric service to TECO and the adjacent utilities (FPL, PRECO, and Duke). 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 Four Corners South 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 August 2019, 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. (Schrader)
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 up on the issuance of a Consummating Order.
