Submitted By: Lisa M. Crouthamel
presenter
Presentation By: Doug Peebles
end
Department: Electric Utility
STAFF RECOMMENDATION (Motion Ready):
title
Approve the Territorial Agreement between the City of Ocala Electric Utility and Duke Energy Florida, LLC
end
OCALA'S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
N/A
body
BACKGROUND:
On December 2, 2008, City Council approved a territorial service area agreement (the "2009 Agreement") between Ocala Electric Utility (OEU) and Progress Energy Florida, Inc. (PEF), now a wholly owned direct subsidiary of Duke Energy Florida, LLC (DEF). The 2009 Agreement expired in July 2019 and OEU and DEF have continued to operate under the terms of said agreement, pending the approval of a new agreement. Negotiations between the parties as to terms and adjustments to their respective geographical territory boundaries are now complete.
This new Territorial Agreement, effective for a term of 20 years from the date approved and recorded by the Florida Public Service Commission, identifies the terms under which OEU and DEF will handle the right to serve existing and new customers and defines the geographical boundaries for the service area. As part of the new agreement, OEU and DEF have identified lists of customers that will be transferred based on the newly defined geographical boundaries. OEU will be transferring six (6) meter service locations to DEF. DEF will be transferring one (1) existing meter service location to OEU.
OEU maintains territorial agreements with SECO, DEF, and Clay Electric Cooperative (CEC).
FINDINGS AND CONCLUSIONS:
The OEU-DEF Territorial Agreement will benefit both utilities with clearly defined boundaries and terms for providing ongoing reliable electric power to customers and the community.
FISCAL IMPACT:
No expense or revenue values are directly associated with the territory boundaries of the agreement. A 30-year depreciation basis and the application of th...
Click here for full text