Case Background
On August 5,
2021, Gulf Coast Electric Cooperative, Inc. (Gulf Coast) and West Florida Electric
Cooperative Association, Inc. (West Florida), collectively the joint
petitioners, filed a petition seeking Commission approval of a Territorial Agreement
(Agreement) delineating their respective retail service boundaries in Calhoun,
Jackson, and Washington counties. The proposed Agreement is the joint
petitioners’ first Agreement applicable to the petitioners’ service boundaries specific
to Calhoun, Jackson, and Washington counties. The Agreement is Attachment A and
composite maps depicting the proposed boundaries is Attachment B to this
recommendation.
The joint
petitioners assert that Gulf Coast and West Florida each have electric
facilities adjacent to each other in Calhoun, Jackson, and Washington counties.
The joint petitioners negotiated the proposed Agreement to establish defined retail
area service boundaries in order to avoid duplication of facilities and expenditures,
avoid hazardous conditions, and serve their current and future customers in a
safe manner.
During the
review process, staff issued two data requests to the joint petitioners to
which responses were received on September 10, 2021 and September 21, 2021. 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
Territorial Agreement in Calhoun, Jackson, and Washington counties between Gulf
Coast Electric Cooperative, Inc. (Gulf Coast) and West Florida Electric
Cooperative Association, Inc. (West Florida)?
Recommendation:
Yes, the Commission should approve the proposed Territorial
Agreement in Calhoun, Jackson, and Washington counties between Gulf Coast and West
Florida. The approval of this Agreement will not be a detriment to the public interest and it will enable Gulf
Coast and West Florida to avoid
duplication of facilities and expenditures, avoid hazardous conditions,
and serve their current and future customers
in a safe manner. The proposed Agreement between Gulf Coast and West Florida
should become effective on the date the Commission order approving the Agreement
becomes final and no longer subject to judicial review. (Guffey)
Staff Analysis:
Pursuant to Section 366.04(2)(d), F.S., and Rule
25-6.0440(2), 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.
The Proposed Territorial Agreement
In response to staff’s first data request, the joint
petitioners stated Gulf Coast does not currently serve in any municipalities
within the service territory subject to this Agreement, but over the term of
the Agreement, Gulf Coast estimates that it will serve approximately 5,383 customers.
Currently, West Florida provides service in the Town of Grand Ridge (in Jackson
County), and in the Town of Wausau (in Washington County) and over the term of
the Agreement, West Florida estimates it will serve approximately 18,370 customers
(including existing customers in Grand Ridge and Wausau) within its service
territory in Calhoun, Jackson, and Washington counties. In
responses to staff’s second data request, the joint petitioners confirmed that
both Gulf Coast and West Florida have the capacity and ability to serve their expected
future customers without negatively impacting their existing customer base. The
joint petitioners also affirm that the proposed Agreement would enhance the
service reliability by avoiding any potential uneconomic duplication of
facilities and hazardous conditions.
Pursuant to Paragraph 5 of the petition, there are no
customer transfers contemplated in this Agreement. Therefore, no notice to
customers is required pursuant to Rule 25-6.0440, F.A.C. Pursuant to Section
3.1 of the Agreement, there will be no electric facilities transferred between
the two cooperatives. Section
1.10 of the Agreement states that, as of the date of this Agreement, there are
no extra-territorial customers. If
the parties discover extra-territorial member-customers, they will be
transferred to the appropriate cooperative within 12 months of discovering the inadvertent
service error pursuant to Section 2.4 of the Agreement.
The duration of this proposed Agreement is 30 years
pursuant to Section 5.1. Thereafter, the Agreement may automatically be extended
for succeeding 5-year terms. The Agreement may be terminated by either party after
the expiration of the initial 30-year term or succeeding 5-year term by
providing one year prior notification to the other party to terminate the Agreement.
Conclusion
After review of the petition, the proposed Agreement, and
the joint petitioners’ responses to staff’s data requests, staff believes that
the proposed Agreement is in the public interest and will enable Gulf Coast and
West Florida to serve their customers in an efficient manner. As such, staff
believes that the Commission should approve the proposed Agreement in Calhoun,
Jackson, and Washington counties between Gulf Coast and West Florida. The
approval of this Agreement will not
be a detriment to the public interest and it will enable Gulf Coast and
West Florida to avoid duplication of
facilities and expenditures, avoid hazardous conditions, and serve their
current and future customers in a safe manner. The proposed Agreement between Gulf
Coast and West Florida should become effective on the date the Commission order
approving the Agreement becomes final and 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 a Consummating Order. (Sandy, Crawford)
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.
