Case Background
On October 14, 2025, Duke
Energy Florida, LLC (DEF) and Withlacoochee River Electric Cooperative (WREC)
(collectively, joint petitioners) filed an amended joint petition to extend the
effective date of their territorial agreement for Hernando, Citrus, and Pasco
counties for five years through October 10, 2030.[1] The current agreement between the two
utilities expired on October 10, 2025, and represented a comprehensive
resolution of territorial issues in a three-county area (Citrus, Pasco, and
Hernando) and involved the transfer of approximately 5,000 customers. Because
of the comprehensive nature of the agreement between the utilities and numerous
customer transfers, the Commission allowed a two-phase approach to implement
the agreement.[3] The Commission approved the first phase of
the agreement by Order No. PSC-05-0965-PAA-EU[4] and the second phase by Order No.
PSC-06-0202-PAA-EU.[5] The instant pleading seeks Commission
approval to extend the current agreement for an additional five years.
As for the two phases of the agreement, the
Commission directed the utilities to file a status report on the transfer of
customers every six months, and the phase one transfers were completed as of
the joint status report filed on February 19, 2007.4 For phase two, the
utilities petitioned for an extension on the date of which all transfers were
to be completed and was approved by the Commission by Order No. PSC-08-0502-PAA-EU. Due to the utilities explaining
operational constraints and good engineering practices, the utilities
petitioned to amend the agreement to allow 117 customers to remain in WREC’s
service territory and 33 customers to be transferred from DEF to WREC. The
Commission approved the amended agreement by Order No. PSC-10-0246-PAA-EI,
which resulted in the completion of the phase two transfers.
On May 12, 2010, DEF and WREC petitioned to
modify their territorial boundaries because of a requirement by Citrus County
for DEF to vacate the County’s right-of-way that crossed a runway within the
Crystal River Airport due to permitting reasons. The Commission approved the modification
by Order No. PSC-10-0559-PAA-EU and resulted in the transfer of 31 customers to
WREC.
The Commission
has jurisdiction over this matter pursuant to Sections 366.04, Florida Statutes
(F.S.), and Rule 25-6.0440, Florida Administrative Code, (F.A.C.).
Discussion
of Issues
Issue 1:
Should the Commission approve the joint petition to
extend the effective date of the territorial agreement between Duke Energy
Florida, LLC and Withlacoochee River Electric Cooperative, Inc. for five years
through October 10, 2030?
Recommendation:
Yes, the Commission should approve the amended joint
petition to extend the effective date of the territorial agreement between Duke
Energy Florida, LLC and Withlacoochee River Electric Cooperative, Inc. The
five-year extension date of the agreement should begin on October 10, 2025, and
run through October 10, 2030, as requested by the two utility companies.
(Clark)
Staff Analysis:
Although the current agreement has expired, the joint parties assert
their commitment to continue adhering to the terms, conditions, maps, and
boundaries set forth in that document.[8]
Consequently, the joint petitioners’ sole request in this docket is for a five-year
extension of the effective date of the territorial agreement they are currently
operating under. All other provisions remain unchanged. In response to Staff’s First
Data Request, the joint parties stated that:
The parties intend to
continue ongoing discussions to file, as needed, an amended territorial
agreement based on any changes within the territorial areas of the parties that
occurred since the latest amendment. It is the intention of the parties to
complete this process as efficiently as possible.[9]
In its joint petition, the parties request an extension of five years
through October 10, 2030. No changes to the terms, conditions, maps, and
boundaries were proposed. The present parties have shown to have acted in good
faith as all relevant customer transfers included in the first and second
phases have been completed along with those associated with Order No.
PSC-10-0559-PAA-EU.
Rule 25-6.0440(2), F.A.C., provides factors for the Commission to consider
when reviewing territorial agreements. Those factors were evaluated and
approved by the Commission in Docket No. 20040133-EU.
As such, staff believes – in the absence of changes to the agreed-upon terms,
conditions, maps, and boundaries – the Commission can consider the instant
request without embarking upon a renewed evaluation of critical components of Rule
25-6.0440, F.A.C., including the purchase price of facilities, reliability of
electric service, or the potential for uneconomic duplication of facilities. Staff
believes extending the effective date of their agreement advances the public’s
interest since doing so would assist the parties in their efforts to develop
and file a revised territorial agreement at the end of the five-year period.
Conclusion
Staff recommends the Commission approve the amended joint
petition to extend the effective date of the territorial agreement between Duke
Energy Florida, LLC and Withlacoochee River Electric Cooperative, Inc. DEF and
WREC have represented that they have and will continue to abide by the terms
and conditions of the current agreement while they pursue efforts to complete a
revised agreement. The present parties have also shown good faith in having
completed the ordered customer transfers. The five-year extension date of the
agreement should begin on October 10, 2025, and run through October 10, 2030,
as requested by the two utility companies.
Issue 2:
Should this docket be closed?
Recommendation:
Yes, this docket should be closed upon the issuance
of a Consummating Order unless a person whose substantial interests are
affected by the Commission’s decision files a protest within 21 days of the
issuance of the proposed agency action. (Thompson)
Staff Analysis:
This docket should be closed upon the issuance of a
Consummating Order unless a person whose substantial interests are affected by
the Commission’s decision files a protest within 21 days of the issuance of the
proposed agency action.
