HomeMy WebLinkAbout1980 10 22 Letter Re: FPC Request to Increase Retail Rates and Charges
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POST OFFICE BOX 4748
C LEA R W ATE R, F LOR IDA 33518
OFFICE OF
CITY ATTORNEY
October 22, 19-BQ
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L'l.. ..L.i \G _t~ V 11 D
City Manager
City of Maitland
P. O. Box 66
Maitland, Florida 32751
OCT? ? 1Qeo
ClTY OF' LYJAITLANd
Dear Si r:
The Florida Power Corporation's (FPC) request for authority to increase
its retail rates and charges, if fully granted, will result in significantly
increased dollar expenditures by local governments for electrical services.
Rate Sc~edule M-l (Municipal Service) and Rate Schedule M-2 (Street
Lighting) would increase the charge for energy by a minimum of 220/0 to
over 26% depending upon the usage level. Rate Schedule M- 2 (Street Lighting)
and E s tima ting Schedule E -1 would inc rea se the charge s for street lighting
maintenanc e and fixture s by 24%.
In orde r to addre s s a numbe r of issue s ln the rate inc rea se re que sted by
FPC, a number of local governments have joined to form a task force to
intervene in the FPC rate case. The majority of the issues to be addressed
in the Intervenor Petition concern the cost of street lighting. Success in this
intervention could re sult in pos sible reductions in street lighting costs by
from 300/0 to 60%.
At a meeting on Tuesday, October 21, with attorneys and staff personnel
from Pinellas County, St. Petersburg, Clearwater, Largo and Dunedin
pre sent, it wa s decided tha t the Wa shington D. C. law fi rm of Suthe rland,
Asbill &: Brennan would be retained to assist the task force in preparing the
inte rvenor brief and preparing for te stimony before the F 10 rida Public Se rvice
Commission (FPSC). Mr. Frank Martin and Mr. Bob Morrow, associates
of Suthe rland, Asbill &: Brennan we re pre sent and Mr. Mar row will be the
principal representative. A brief statement of the firm's experience in the
area of energy related issues was presented with a more detailed statement
to follow.
A nun1ber of the governments pre sent have already cOmn1itted themselve s to
their share of the costs for the intervenor action while others need some
"Equal Employment and Affirmative Action Employer"
Octobe r 22, 1980
Page 2
Re: Florida Power Corporation reque st.
official action prior to making an official commitment.-
for legal and consultant services is $25,000 to $30,000.
commitment made to retain consultant services but this
by legal counsel. This is $10,000 of the estimate.
The estimated cost
The re ha s been no
is recommended
The method suggested for distribution of these costs over the governments
participating in the Intervenor Petition and associated actions is their
relative expenditures for electrical service. For example:
Government De cembe r 1976 Cost 0/0 -L
St. Petersburg $168,211. 97 51 $12,722.80
C learwate r 99,189.22 30 7,502.22
Largo 43,421. 21 13 3,284.18
Dunedin 19,710.24 6 1,490.80
Total $330,532.64 100% $25,000.00
The re are ove r 100 local governments wi thin the FPC se rvice area purcha sing
retail power from FPC. All of the se will be affected by the rate s reque sted by
FPC and the vast majority will benefit from any of the intervenor issues which
are viewed favorably by the FPSC.
The gr'eate r the numbe r of gove rnments repre sented by the Inte rvenor Petition,
the greater its impact and credibility.
The next meeting of the task force will be Friday, October 31, 1980 at 9:30 A. M.
in the City Manager's conference room, City Hall, Clearwater, Florida.
At that time we will take a look at the Intervenor Brief and commit to a final form
for filing before November 7, 1980. All interested parties are invited and urged
to attend this meeting.
Tho se gove rnments which are inte re sted in becoming a participant in the
Intervention should be prepared to make a commitment on or soon after the
October 31 meeting.
Please let my office know if you plan to attend.
Any questions you may have concerning the issues, details of the intervention
or the task force may be addressed to:
Floyd G. Carter
Central Services Director
City of Clearwater
P. O. Box 4748
Clearwater, Florida 33518
(813) 462-6777
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