Case Background
On August 27,
2020, Duke Energy Florida, LLC. (Duke), and the City of Leesburg (Leesburg)
filed a joint petition for approval of the first amendment to their existing
territorial agreement (First Amendment) in Lake and Sumter Counties. Duke and
Leesburg are parties to a currently effective territorial agreement that was
approved by the Commission in 2015. The proposed First Amendment to the
current territorial agreement and maps depicting the modified territorial
boundaries are included in Attachment A to this recommendation.
During the
review process, staff issued a data request to the joint petitioners to which
responses were received on October 14, 2020. 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 Leesburg’s and Duke’s
proposed First Amendment to their existing territorial agreement in Lake and Sumter
Counties?
Recommendation:
Yes. The Commission should approve Leesburg’s and
Duke’s proposed First Amendment to their existing territorial agreement in Lake
and Sumter Counties. The approval of the First Amendment will allow the parties to reallocate land and form
more compact, contiguous service areas for future development. The reallocation
of land will enable Leesburg and Duke to avoid duplication of facilities and
serve their customers efficiently. The proposed amendment is in the
public interest and will not cause a decrease in reliable electric service to
existing and future customers of either utility. (Guffey)
Staff Analysis:
Pursuant to Section 366.04(2)(d), F.S., and Rule
25-6.0440(2), 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.
Proposed First Amendment to the Territorial Agreement
Leesburg and Duke executed their First Amendment to the
Territorial Agreement (see Attachment A) on August 28, 2020. The intent of the
First Amendment is to reallocate vacant land pursuant to Article III and modify
the territorial boundaries pursuant to Section 3.1 of the agreement. The
exchange of land will form more compact and contiguous service territories for
future development and avoid duplication of facilities in Lake and Sumter
Counties. There are no customer or infrastructure transfers contemplated in this
proposed First Amendment. Through the First Amendment, the joint petitioners
seek to more accurately define the portions of their respective service areas
and gain operational efficiencies.
In response to staff’s data request, the joint petitioners
stated that the land areas proposed to be reallocated are currently vacant. Therefore,
no notice to customers was required pursuant to Rule 25-6.0440(1), F.A.C. However,
staff notes that there are conceptual plans for a residential development of
approximately 900 dwelling units in the area allocated to Leesburg. Although
the area reallocated to Duke has no conceptual development plans at the moment,
future development for this area is projected to be equal to that of Leesburg’s
conceptual development plans.
As stated in paragraph 6 of the petition, with the
exception of the modifications contained in the First Amendment, the terms and
conditions of the existing agreement remain unchanged and in effect. The First
Amendment to the existing Agreement will become effective and enforceable upon
the issuance of the Commission’s Order and will remain in effect until July 29,
2045.
Conclusion
After review of the joint petition, the proposed First
Amendment to the Territorial Agreement, and the petitioners’ joint responses to
staff’s data request, staff recommends that the Commission should approve
Leesburg’s and Duke’s proposed First Amendment to their existing territorial
agreement in Lake and Sumter Counties. The approval of the First Amendment will allow the parties to reallocate land
and form more compact, contiguous service areas for future development. The
reallocation of land will enable Leesburg and Duke to avoid duplication of
facilities and serve their customers efficiently. The proposed amendment
is in the public interest and will not cause a decrease in reliable electric
service to existing and future customers of either utility.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. 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.
(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 a Consummating Order.
