Case Background
On December 28,
2021, Tampa Electric Company (TECO) and Withlacoochee River Electric
Cooperative, Inc. (WREC) (collectively, joint petitioners) filed a joint
petition for approval of an amendment to their current territorial agreement in
Pasco County (the proposed amendment). TECO serves retail customers in
Hillsborough County and in portions of Polk, Pinellas, and Pasco Counties. WREC
serves retail customers in portions of Hernando, Citrus, Sumter, Pasco, and Polk
Counties.
The original
electric service boundary between TECO and WREC was approved by the Commission
in 1974 in Order No. 6281. The boundary was amended in 1990 in Order
No. 23905 and further amended in 2006 in Order No.
PSC-06-0128-PAA-EU (2006 Order). The boundary was amended for a third time
in 2017 in Order No. PSC-17-0241-PAA-EU (2017 Order). The instant petition seeks to amend the
territorial boundaries to accommodate proposed modifications to the service
area within the Two Rivers Ranch subdivision (Two Rivers Ranch or subdivision) located
adjacent to the Hillsboro-Pasco County line, as shown in Attachment B. All other
aspects of the current agreement, shown as Attachment A, would remain in place.
Staff issued a
data request on January 25, 2022, to which the responses were received on
February 9, 2022. 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 joint petition by
TECO and WREC to amend their territorial agreement related to the boundaries of
Two Rivers Ranch in Pasco County?
Recommendation:
Yes, the Commission should approve the joint
petition by TECO and WREC to amend their territorial agreement related to the
boundaries of Two Rivers Ranch in Pasco County. The approval of this amendment would
enable TECO and WREC to redefine their existing service boundary to better
serve their existing and future customers in Pasco County, and will not be a
detriment to the public interest. (Ward)
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 amendment to the 1990 territorial
agreement will cause a detriment to the public interest, the amendment should
be approved.
The Proposed Amendment to the 1990 Territorial
Agreement
A new residential subdivision, known as Two Rivers Ranch,
is currently under development adjacent to the Hillsborough-Pasco County line. A
section of the existing service boundary runs through the planned subdivision.
The joint petitioners state that the current service boundary runs through
proposed home lots, across planned streets, and without regard to future utility
easement areas in the subdivision.
In 2021, TECO and WREC had discussions for the provision
of electric service to the new Two Rivers Ranch subdivision. These discussions
led to a mutual agreement between TECO and WREC regarding the most efficient,
reliable provision of electricity to the new subdivision. Under this agreement, the revised boundary
lines would follow along parcel lines within the subdivision and only cross one
road. The joint petitioners assert that
this proposal would allow both utilities to have sufficient access to the areas
to be served and it would facilitate the orderly provision of electricity by
the two utilities. If approved, the joint petitioners state that the revised
agreement would ensure that each parcel tract and homeowners’ association
within the larger development would be served by a single utility. Furthermore,
the petitioners assert that the proposed territorial amendment would not cause
a decrease in the reliability of electric service to the existing and future
ratepayers of either utility and would prevent the uneconomic duplication of
facilities.
Under the proposed amendment, TECO could gain 475 new residential
customers from the transfer of proposed lots in WREC’s current territory, while
WREC could gain 561 new residential customers from the transfer of proposed
lots in TECO’s current territory. In response to staff’s data request, the
joint petitioners stated that all of the aforementioned customers would be
within the Two Rivers Ranch subdivision. The joint petitioners state that the boundaries
are designed to reallocate lots, as evenly as possible, between the utilities,
while avoiding uneconomic duplication and providing safe and reliable service. As
this subdivision has not been developed, there are no current customers to be
transferred as a result of the proposed territorial amendment. Similarly, there
are no affected customers to be notified. Pursuant to Rule 25-6.0440(1)(f), F.A.C., the joint
petitioners provided a map depicting the proposed boundary line of the
subdivision. The map is shown in Attachment B to this recommendation.
Conclusion
After review of the petition, the proposed territorial
amendment, and the joint petitioners' responses to staff’s data request, staff
believes that the proposed territorial amendment is in the public interest and
will enable TECO and WREC to better serve the future customers in the Two
Rivers Ranch subdivision in Pasco County. It appears that the proposed
territorial amendment eliminates any potential uneconomic duplication of facilities
and will not cause a decrease in the reliability of electric service. Therefore,
staff recommends that the Commission should approve the proposed amendment to
the territorial agreement between TECO and WREC in Pasco 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 a Consummating Order. (Sandy)
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.
