Case Background
On April 13,
2020, Tampa Electric Company (TECO or utility) filed a petition seeking
approval of its revised Customer Specified Lighting Tariff (LS-2 tariff). TECO
proposes to revise Tariff Sheet No. 6.830 to enable the utility to offer metered
service to its LS-2 customers. Currently, the LS-2 tariff is only available as non-metered
lighting service. The Commission approved the LS-2 tariff in Order No.
PSC-2019-0063-TRF.
During
the review of this petition, staff issued a data request to TECO for which
responses were received on May 5, 2020. TECO filed a revision to Tariff Sheet
No. 6.830 which corrected a scrivener’s error on May 8, 2020. The proposed
revised Tariff Sheet No. 6.830 in legislative format is shown in Attachment A
to this recommendation. The Commission has jurisdiction over this matter
pursuant to Sections 366.03, 366.04, 366.05, and 366.06, Florida Statutes
(F.S.).
Discussion
of Issues
Issue 1:
Should the Commission approve TECO's revised Customer
Specified Lighting Tariff (LS-2) Sheet No. 6.830, as shown in Attachment A?
Recommendation:
Yes. The Commission should approve TECO’s revised LS-2
Sheet No. 6.830, as shown in Attachment A, effective June 9, 2020. The proposed
LS-2 tariff revision allows TECO to offer LS-2 customers the option to receive
metered lighting service. (Guffey)
Staff Analysis:
TECO offers two outdoor lighting service
tariffs: the Lighting Service (LS-1)
tariff and the LS-2 tariff. Under the LS-1 tariff, customers have the option of
unmetered lighting service for TECO-owned fixtures or of metered lighting
service for customer-owned fixtures. The LS-1 tariff lists the TECO-owned fixtures
available for the unmetered option and the energy is billed based on the
estimated usage of the fixture. Under the customer-owned option, TECO provides
the energy only and the customer is responsible for maintaining the
fixtures. The customer may own fixtures
that are not offered by TECO. TECO explained that the majority of LS-1
customers take service under the unmetered utility-owned fixtures option;
however, approximately 200 customers own the lighting facilities and use the
energy-only rate offering under the LS-1 tariff.
The LS-2 tariff allows TECO to offer service for
utility-owned specific fixtures or poles that are not available under the LS-1
tariff. If a customer requests a special or unique fixture, TECO purchases and
installs the lighting facilities and bills the customer for the fixture and
maintenance cost based on the in-place value of the facilities. Under the
current LS-2 tariff, service is unmetered and the energy is billed based on the
estimated usage of the fixture.
TECO explained that while the LS-1 tariff provides a
metered service option, the current LS-2 tariff does not offer a metered
service option. The proposed revision in the LS-2 tariff adds a section titled
Special Conditions which outlines
pricing for metered service. The proposed charges for metered service are the
same as the currently approved LS-1 metered energy charge of 2.510 cents per
kilowatt-hour (kWh) and basic service charge of $10.52 per month. Other charges
such as energy conservation, capacity, and environmental charges will also be
applicable.
TECO explained that the petition was filed in response to
LS-1 customers who own metered lighting systems and expressed an interest to
transfer ownership and maintenance of the fixtures to TECO. If the fixtures the
customer owns are not offered by the utility under the LS-1 tariff, service
would have to be transferred to the LS-2 tariff to allow TECO to take ownership
of the lighting facilities. In response to staff’s data request, TECO stated
that an advantage to a customer transferring from LS-1 to LS-2 would be the
maintenance, repair, and replacement of their lighting system would be the
responsibility of TECO.
Customers taking service under the LS-2 tariff are
required to sign a Bright Choices Outdoor Lighting Agreement (agreement) with a
minimum 20 year initial term and successive one year terms continuing
thereafter until either party provides the other party a 90 day written notice
of termination. In response to staff’s data request, TECO stated that if an
LS-1 customer transferred to LS-2 and later desires to transfer back to LS-1,
an early termination penalty would be applicable, per the agreement.
TECO stated that it currently does not have any customers
taking service under the LS-2 tariff, but approximately six LS-1 customers have
expressed some interest in transferring to the LS-2 tariff to allow TECO to
take ownership of the facilities. TECO explained that
any compensation to the customer for the transferred lighting facilities would
be negotiated between the customer and TECO and the negotiated amount would be
specified in the agreement. The utility states the types of customers
who would be interested in transferring are municipal lighting systems, parking
lot lighting systems, and lighting in car lots/business spaces. TECO explained that if a customer requests
their metered lighting system to be taken over by TECO, the utility would
evaluate the existing condition and type of lighting equipment and upgrades
needed to the equipment.
Conclusion
Staff has reviewed TECO’s petition and response to staff’s
data request, and believes the proposed revision to the LS-2 tariff to allow
for metered service, as currently is available under the LS-1 tariff, is
reasonable and appropriate. Staff recommends that the Commission should approve
TECO’s revised LS-2 Sheet No. 6.830, as shown in Attachment A, effective June
9, 2020.
Issue 2:
Should this docket be closed?
Recommendation:
If Issue 1 is approved and a protest is filed within
21 days of the issuance of the order, the tariff should remain in effect, with
any revenues held subject to refund, pending resolution of the protest. If no
timely protest is filed, this docket should be closed upon the issuance of a
consummating order. (Stiller)
Staff Analysis:
If Issue 1 is approved and a protest is filed within
21 days of the issuance of the order, the tariff should remain in effect, with
any revenues held subject to refund, pending resolution of the protest. If no
timely protest is filed, this docket should be closed upon the issuance of a
consummating order.
