Discussion
of Issues
Issue 1:
Should the Commission approve the proposed First
Amendment to the 2020 Territorial Agreement in Sumter County between SECO and
Bushnell?
Recommendation:
Yes, the Commission should approve the proposed
First Amendment to the 2020 Territorial Agreement in Sumter County between SECO
and Bushnell. The approval of this First Amendment will enable SECO and
Bushnell to redefine their existing service boundary to better serve their
existing and future customers in Sumter County, and will not be a detriment to
the public interest. (Guffey, Lherisson)
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 First Amendment to the 2020 Territorial Agreement
will cause a detriment to the public interest, the First Amendment should be
approved.
The Proposed First Amendment to the Territorial
Agreement
Through this proposed First Amendment, the joint
petitioners seek to modify the existing territorial boundary in Sumter County to
address service needs of three customers. The proposed amendment will result in
lower capital expenditure to serve each of the three customers. The first
request is from a new customer seeking to construct and operate a large industrial
facility in the City’s service area. However, the City is unable to serve the
large industrial customer without significant capital investment and
construction of new facilities. After review of the customer’s needs, the
parties agreed that SECO is able to serve the customer with less new investment
and facilities.
The second customer request is for security lighting service
within the City’s service territory where electric service is not currently available
and the City is unable to provide the required service without significant
costs and facility extensions. SECO is able to provide the security lighting
service with less new investment and less costly extension of existing
facilities. The City has agreed to allow SECO to provide the security lighting
service to the customer.
The third customer request is from an existing recreational
vehicle (RV) park owner, served by the City, who is planning to expand the RV park
to an area within SECO’s service territory. Although the RV park is expanding within
SECO’s service territory, the specific area currently does not have electric
service. SECO would require extensive capital investment and construction of
new facilities to provide electricity to the proposed RV expansion area. The RV
park customer desires that the City provide electric service for the expanded
area and the City is able to provide the needed electric service with less
expenses and facility enhancements than SECO.
In order to provide electricity to the three customers
discussed above in an efficient manner, the parties have agreed to exchange
certain territorial area parcels and modify the boundary of the currently effective
territorial agreement. Paragraph 7 of the First Amendment states that the
proposed boundary modifications will meet the customers’ needs and will
eliminate uneconomic duplication of facilities, and will not cause a decrease
in reliability of electric service to existing or future customers of either
party.
The proposed First Amendment also asserts that the
territorial areas subject to this amendment currently do not have electric
service, and therefore there are no customers to be notified or customer
accounts to be transferred between the two parties. Pursuant to Paragraph 4 of
the petition, the proposed First Amendment to the 2020 Territorial Agreement
will become effective upon the issuance of an Order by the Commission approving
the First Amendment in its entirety.
Conclusion
After review of the joint petition, staff believes the First
Amendment to the Territorial Agreement will not cause a detriment to the public
interest, will eliminate any potential uneconomic duplication of facilities,
and will not cause a decrease in reliability of electric service to the present
or future customers of SECO or Bushnell. Therefore, staff recommends that the
Commission should approve the proposed First Amendment to the 2020 Territorial Agreement
between SECO and Bushnell in Sumter County.
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 the Consummating Order.
(Lherisson)
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.
