Case Background
On
June 4, 2020, Florida Power & Light Company (FPL) and Lee County Electric
Cooperative (LCEC), collectively the joint petitioners, filed a petition
seeking Commission approval to amend their existing territorial agreement in
Lee County. The proposed amendment (2020 Amendment) seeks to modify the
territorial boundaries of their existing territorial agreement to allow both
utilities to more efficiently serve a planned private development and to avoid
the uneconomic duplication of facilities. On June 10, 2020, the joint
petitioners filed an amendment to the petition to correct a typographical error
in the 2020 Amendment.
In
1965, the Commission approved the joint petitioners’ original territorial
agreement by Order No. 3799. In 1993, the Commission approved a new territorial
agreement relating to the service areas in Charlotte, Collier, Hendry, and Lee
Counties. In 1997, the Commission approved a minor
modification to the boundary line between FPL and LCEC in Lee County to reflect
development in the area. In 2015, the Commission approved an
amendment to reflect service by FPL and LCEC to the Babcock Ranch Community
Independent Special District.
The
2020 Amendment, legal descriptions and sketches of the parcels to be exchanged
are provided in Attachment A of this recommendation. The Florida Department of
Transportation General Highway County map and two more detailed maps depicting
the proposed boundary lines are provided in Attachment B of this
recommendation. The Commission has jurisdiction over this matter pursuant to
Section 366.04, Florida Statutes (F.S.).
Discussion
of Issues
Issue 1:
Should the Commission approve the proposed 2020 Amendment
to the territorial agreement between FPL and LCEC?
Recommendation:
Yes, the Commission should approve the proposed 2020
Amendment to the territorial agreement between FPL and LCEC, dated June 3, 2020.
The 2020 Amendment is in the public interest and will avoid uneconomic
duplication of facilities. (Hampson, Guffey)
Staff Analysis:
Pursuant to Section
366.04(2)(d), F.S., and Rule 25-6.0440, Florida Administrative Code (F.A.C.),
the Commission has the jurisdiction to approve territorial agreements between
and among rural electric cooperatives, municipal electric utilities, and other
electric utilities. Unless the Commission determines that the agreement will
cause a detriment to the public interest, the agreement should be approved.[6]
Amendment of Territorial Boundaries
The joint petitioners have
proposed an exchange of two parcels, known as Exchange Parcel A and Exchange
Parcel B, in order to achieve additional operational efficiencies and to avoid
the uneconomic duplication of facilities. The joint petitioners have proposed
this exchange as a result of a planned private development in Lee County. Both
Exchange Parcels are currently undeveloped, with no existing customers or
electric facilities. As such, there are no customers to notify regarding
changes in service. Additionally, in Paragraph 14 of the petition, the joint
petitioners state that approval of the 2020 Amendment will not cause a decrease
in electric service reliability to existing or future customers of either
utility.
Exchange Parcel A is
approximately 160 acres large and will be transferred from LCEC to FPL, if
approved by the Commission. Exchange Parcel A includes an area planned for 132
residential lots, which will be located in the aforementioned planned
development. Exchange Parcel B is approximately 30 acres large and will be transferred
from FPL to LCEC. Within Exchange Parcel B is approximately 26 acres of
commercial land that is to be utilized for the planned development’s amenity
center. Legal descriptions and sketches of the Exchange Parcels are included in
Attachment A of this recommendation.
Conclusion
After review of the joint petition
and amendment filed on June 10, 2020, staff believes that the 2020 Amendment to
the territorial agreement will enable FPL and LCEC to avoid an unnecessary
duplication of facilities and to serve their current and future customers in an
efficient manner. As such, staff recommends that the Commission should approve
the proposed 2020 Amendment to the territorial agreement between FPL and LCEC, dated
June 3, 2020. The effective date of the 2020 Amendment will be the date on
which the Commission’s final order granting approval of the amendment in its
entirety is no longer subject to judicial review.
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 the Consummating Order. (Trierweiler)
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 the Consummating Order.
