ML18088A868

Affidavit of Robert E. Bathen Florida Power & Light Company Nuclear Units NRC Docket No. P-636-A and NRC Docket No. 50-389-A Before the Nuclear Regulatory Commission of the United States

ML18088A868
Person / Time
Site:	Saint Lucie
Issue date:	04/14/1976
From:	Bathen R R. W. Beck and Associates
To:	Office of Nuclear Reactor Regulation
References
Download: ML18088A868 (407)

Text

{{#Wiki_filter:AFFIDAVIT OF ROBERT E. BATHEN RE: FLORIDA POWER 4 LIGHT COMPANY NUCLEAR UNITS NRC DOCKET NO. P-636 A and NRC DOCKET NO. 50-389-A BEFORE THE NUCLEAR REGULATORY COMhQSSION of the UNITED STATES April 14, 1976

L t' J

          \

I l

AFFIDAVIT OF ROBERT E. BATHEN My name is Robert E. Bathen, and my address is 1851 South Chickasaw Trail, Orlando, Florida, My qualifications are attached hereto as Exhibit A. FACTORS AFFECTING WHOLESALE BULK POWER SUPPLY COSTS The Florida Municipal Utilities Association on behalf of its member cities and the individual municipal intervenors represents all three types of municipal electric systems in the Florida wholesale bulk power supply market: (1) all requirements wholesale purchasers, (2) partial require-ments purchasers that supplement their own generation through purchases, and (3) systems that have all self-owned generation.. Factors affecting bulk power supply costs are not the same for all three types of municipal utilities since they obtain their power in differing manners. For this reason it is important to focus first on the differences in the factors affecting current bulk power supply costs for the three types of municipal systems, second on differences in levels of fossil and nuclear fuel costs; third on other power supply costs of the three types of municipal systems-- all requirements, partial requirements, and self-generating systems; and finally on the difficulties all three types of municipal systems, and the coopera-tive systems, in the State of Florida are having in developingreliable power supply alternatives and keeping costs competitive with'h'ose 'of the;state' dominant investor-owned utility--Florida

                                \

Power,8z L'ight'ompany.

Types of Municipal and Coo erative Retail S stems For the municipal utilities reported on in the FPC publication "Statistics of Publicly Owned Electric Systems in the United States, 1971," approximately 52% of the energy was generated by the municipals themselves and 48% was purchased. For cooperative systems, it is thought that the figure for purchased power would be much larger than for self-generation. In Florida, of the 34 municipal systems, 22 are generating systems and only twelve are purchasing systems, but all of the cooperatives with the exception of the Keys Co-op are purchasing systems, getting their requirements from either one of the three investor-owned utilities in the state or as supplemented with Southeastern Power Administration (SEPA) power from Sim Woodruff Dam. Throughout the United States and the Southeast, publicly and cooperatively owned systems rely on a variety of power supply arrangements, with the larger number being all requirements purchasers. Briefly, the three types of systems and the changing problems that affect their costs are:

1. All Re uirements Wholesale Purchasers The rates'of these customers, except for purchases from publicly owned systems or federal projects, are generally regulated by the Federal Power Commission as wholesale sales for resale. This segment of the municipal and cooperative utility industry has probably experienced the largest cost increases in the period 1970 to date. It was in about 1970 that the first of the current unprecedented rate increases were filed at the Federal of 30%-100% have become commonplace. In Florida, Florida Power h Light 0 Company (FPlkL) filed for and wae permitted by the Federal Power Com-mission to place into effect on September 1, 1973, subject to refund, rates which represented about a 25% increase to cooperatives and 40% to municipal wholesale customers under a resale rate schedule "SR" (FPC Docket E-8008),

These rates were found to be excessive by the Administrative Law Judge on November 26, 1974, subject to final Commission decision. The Commission has not yet decided this case. Nonetheless, the Company has filed for increased rates (SR-1) which became effective April 1, 1976, subject to refund, which increase the demand charge from $ 2. 65/kW/month to $ 3. 78/ kW/month, an increase of 42. 6%, and increase the energy charge from

7. 5 mills/kWh plus fuel adjustment which has ranged near 8. 0 mills/kWh or

15. 5 mills/kWh total, to a base energy rate of 19. 0 mills/kWh plus a fuel adjustment charge currently estimated to be near zero. This represents.

an approximate overall increase to one municipal system of over 25% above I the SR rate level. The SR-1 rate contains a 75% ratchet on annual peak demand for aQ requirements service and a 100/0 ratchet for partial requirements service. Florida Power Corporation (Florida Power), pursuant to a settle-ment agreement in FPC Docket No. E-7679 approved August 30, 1974, filed wholesale all requirements and partial requirements rates plus a trans-mission service schedule (T-l) which, in accordance with a moratorium provision in the settlement agreement, remained in effect until December 31, 1975. Before the end of the moratorium, the Company filed for increased rates in Docket ER76-123 that would have increased costs to municipal and cooperative customers by $ 9. 8 million or 15. 8% overall on a 1975 test year. Following negotiations, agreement with the Company's wholesale customers was reached whereby, on the same test period, rates were increased by

$ 5. 1 million effective January    1, 1976. It is the intent of the parties that these rates would stay in effect until the start of commercial operation of the Crystal River Nuclear Unit 83 (CR-3) currently scheduled           for November, 1976, at which time the rates would increase        further pursuant to   a new Company    filing. Since several of Florida Power's present all requirements customers have become participants in CR-3, these           will become partial requirements customers on the date of commercial operation of CR-3 and will also   become users of the Company's T-1 rate schedule          for wheeling power from CR-3 to their systems.

In addition to the extremely rapid increases and high costs of fuel, a second reason that cost increases have been felt by all requirements pur-chasers has been increases in the cost of money to the investor-owned utilities. In the aftermath of t'e passing of a dividend by Con Edison in early 1974, borrowings by investor-owned utilities have been at unprecedented interest rates and stocks have sold at less than book value, facts which are brought out strongly by the companies in their requests for higher revenues from their retail and wholesale customers, Long term debt issues at 9-1/2%- 10% were commonplace for A rated utilities throughout the summer of 1974.

This higher cost of money results not only in requests for higher rates of return, but in impacts on the companies'nterest during construction costs which, when coupled with current high rates of inflation, have been a principal factor in pushing up the cost of purchased power. All of these factors and others are discussed in a report published by the Federal Power Commission staff on September 10, 1974, entitled "A Study of the El'ectric Utility Industry." Some of the questions raised in that study included:

                 "What specific measures can and should be taken to help the industry?" And "How should 'regulation'e modified to assist the industry to better serve the Nation?"

Some of the suggestions proposed by the FPC staff aimed at answering these questions include: a) Allow Plant under Construction in the rate base. b) Increase investment tax credit for utilities from 4% to 7% and remove the present 50% limitation on the appU.- cation of such credits, c) Use of future test periods. d) Reduce regulatory lag. e) Use attritional allowances. f) Encourage a more widespread use of tax-exempt bonds for pollution control facilities g) Encourage more widespread use of fuel adjustment clauses and automatic adjustment of other costs and expens eso h) Allow full normalization of tax. allowances for cost of service purposes.

This report was released in the same hour that a similarly unprece-dented meeting was held in the Federal Power Commission offices where high ranking federal officials called together the nation's state regulatory com-missioners urging them to adopt suggestions similar to those listed above plus suggested rates of return of 15%, special other tax relief, and one day suspension of proposed rate increases. There has, however, been another factor which I personally feel has been at work in the requested increases; It has been my observation that before about 1970, the prices charged to wholesale purchasing systems reflected competitive pricing philosophies. That is, the companies openly admitted that the rates charged to these wholesale customers were producing less than a full average return on investment devoted to service for the very good reason that if the rates were much higher, the municipal systems would build their own generation and the cooperative systems would obtain REA financing and build their own GhT systems. With the impetus given by the 1964 National Power Survey to increasing the size of units, extending high voltage trans-mission systems, increasing the number of interconnections and going to extra high voltage transmission, the prospects for development of alternatives were limited for these purchasing systems to some form of joint action programs where they too could build units up to the current level of tech- 'nology, sizewise, and increasingly more important, could participate in or jointly construct and finance giant nuclear plants. Because of the long lead larger companies to block joint action programs by the municipal and cooperative customers, the companies are in a.position to abandon any pre-tense or form of competitive pricing and seek from the Federal Power Com-mission fuQ average or above average cost of service rates, Where sufficient evidence has been developed demonstrating that this anticompetitive activity did raise barriers to entry, these and other anticompetitive issues are appropriately raised in Nuclear Regulatory Commission cases.

2. Partial Re uirements Purchasers-Generators Those systems v hich either supplement their purchases with their own generation or supplement their own generation with pux chases to the extent such purchases are regulated by the Federal Power Corn-mission, face the saxxxe prospects for the future as the all requirements customers discussed above. They also face the same types of increases on their own systems that wholly self-generating systems face wlxich will be discussed later. Aside from those similarities, however, the partial requirements purchaser has some very'real special problems that are peculiar to its type of system. New Smyrna Beach, for example, which had 'supplied all its own requirements for a number of years and because of the change in technology and other factors began to supplement determination that generation with purchases froxn the companies. The unique, It is recog-of cost of service for partial requirements sales is capacity nized that partial requirements purchases could be for peaking and energy, for intermediate capacity and energy, or for base load capaci'ty and energy and that the cost to provide these throe types are not identical.

The design of a single rate that would assure recovery of actual costs in-cluding a fair'return is indeed one of the most complex rate design problems of our time. Some companies have proposed and have imposed separate rates for peaking, intermediate and base load service. There is nothing inherently wrong with this three-tier pricing so long as the rates do truly reflect thc cost of service and. the application of all three of thc separate rate schcdulcs as applied to the wholesale customers'otal load curve willnot result in costs higher than the overall cost to provide peaking, intermediate and base load service.

             'The partial requirements customer is necessarily interconnected with the wholesale supplier as, for that matter, is the all requirements customer., The partial requirements customer, however, because hc has self-owned generation, is in need, and indccd deserves and should insist on, agreements     relating to interchange of..power with respect to his own generation. These agreemcnts need to cover emergency,          scheduled main-tenance, and economy energy exchanges on bases similar to those of the interconnected seU-generating systems..          The l974 settlement agreement in the Florida Power Corporation FPC Docket E-7679 assures to the twelve systems that presently purchase all of their requirements from Florida Power that they can indeed become partial requirements customers of that company with

full assurance that the'se needed interchange agreements will be effectuated upon their obtaining generating re'sources over which they have contx'ol. In addition, a most necessary additional utility service that is required by partial requirements customers and systems who supply all of their own requirements from their own gencxation is wheeling, or transmission s'crvice, over the companies facilities with which they are interconnected on a reasonable, non-discriminatory and non-restrictive basis. This, too, is part of the 1974 Florida Power settlement agreement which was filed with the Federal Power Commission and approved by that body as part of the company's overall rate tariff, T-l.

2. Self-Owned Generatin S stems These systems really fall into two classes--isolated systems and those with interconnections. Fortunately the number of isolated systems has declined rapidly over the past five years and for all practical purposes arc, or should be, limited to those utilities where their isolation is geographic in nature such as Kcy West or any other island system.

The decision of the United States Supreme Court in the Gainesville case

 'ssured small municipally and cooperatively          owned systems of a    bill-of-rights with respect to interconnections which most systems that did not enjoy the benefits of interconnected operation      prior to the Gainesvillc decision have insisted upon in their negotiations with the large investor utilities for interconnection t

owned and interchange agreements. While the Gainesville decision insured the right to become interconnected under reasonable terms and conditions, it has taken other court decisions and invocation, or the possible invocation, of the nation s antitrust laws to secure the kind of coordination needed by small municipal systems. Small municipally owned generating systems are in a double crunch. They are experiencing all of the factors of inQation that are im-posed on large investor-owned utilities and in addition they need to catch up as quickly as possible in sharing the benefits of scale that are still quite evi-dent in the electric utility industry. Because of inQation, the question has been asked recently whether the electric utility industry is still a "decreasing cost industry." The answer is that, absent inflation that exceeds the increased benefits 'of scale, the industry is of course still a decreasing cost industry in the classical sense. It is still true, for example, that even though the cost of building new generation may be two to three times what it was in the past decade, it is still far cheaper in dollars per kilowatt to build an 800 or 1, 000 MW unit than it is to build an 80-100 MV unit. Further there is one technological barrier that the municipal and cooperative systems must pierce and can pierce only through some type of joint cooperative action either among themselves or in cooperation with the investor owned utilities. That is the barrier of partici-pating in nuclear generation. Never has thc necessity for such participation bee'n morc evident than it is at the present time, as I will discuss in more detail later on. Since modern light water reactors are being built only in the 800-1, 300 mw range, all but a handfull of the large publicly owned or, cooperatively owned systems are precluded from 100% seU-ownership. concessions to participation in planned nuclear plants to municipally owned and cooperative systems, are now recognizing the assistance that these consumer owned systems can bring to the financing of this needed new generation. CRYSTAL RIVER NUCLEAR UNIT NO. 3 CR-3) The only. example of joint participation in a nuclear plant by two or more utilities in the State of Florida is the Crystal River Nuclear Unit No. 3. On Zanuary 8, 1975, Florida Power Corporation invited all utilities in the State to a meeting where the Company. offered for sale, on a joint ownership basis, portions of several of its generating units-under construction or planned, listed as foQows:

1. 10% of its 825 MW Crystal River Nuclear Plant, Unit No. 3, which was 90% complete;

2. 10% of its 515 MW Anclote Fossil Plant which was 35% complete;

     . 3. 100% of its 300 MW DeBary Regenerative Combustion Turbine Plant of which three 51. 9 MW units were scheduled for completion in December, 1975, and three in early 1976;

4. 40% of its planned 1300 MW 1980's Unit gl to be located in Central Florida;

5. 40% of its planned 1300 MW 1980's Unit g2 at the same site.

On Zanuary 20, 1975, Florida Power mailed to all utilities that indicated an interest in the joint ownership projects offered a formal invitation to bid. (See Exhibit B). Attached to the bid forms for each unit or plant were'Project Fact Sheets setting forth the Project Schedules including-the % complete, ratings and operating factors, estimated project cost, cost of participation, fuel cost, operation and maintenance costs, and arrangements for delivery over its transmission system. 1/ Prior to and following submittal of bids to participate, R. W. Beck and Associates was employed by a number of the potential participants to assist in negotiations with Florida Power and analyses to assist those systems in evaluating the projects and submitting bids and subsequently leading to closing on CR-3. R, W. Beck and Associates'nalysis which was supplied to the City of Ocala prior to bidding (included in Exhibit B) is typical of the analyses supplied to other cities. This analysis indicated savings of 45% to 58% over wholesale all requirements purchased power for the nuclear units offered, but negligible or no savings for the fossil units. Subsequently, Florida Power Corporation postponed indefinitely its plans for the 1980's units. Negotiations with a number of potential participants proceeded on CR-3 leading to a closing on July 31, 1975. 1/ Contrast this positive, complete offer to allow access to nuclear units and participation in ownership to the letter sent to the cities by Tracy Danese of dated March 30, 1976, quoted in the Petition to Intervene. Also, 'phL note that the joint venture nuclear facility is suggested to be "somewhere in Central Florida." Florida Power-'s proposed 1980's nuclear units in which partici-pation was offered to all utilities over 15 months ago, but in which FPEcL apparently was not interested were to be located in Central Florida, Ten municipal systems (Alachua, Bushnell, Leesburg and Ocala, now all requirements customers of Florida Power, plus the cities of Gaines-'ille, Kissimmee, New Smyrna Beach, Orlando, Sebring and Tallahassee which generate all or a part of their requirements) plus Seminole Electric

                                                    ~I Cooperative, a generation and transmission cooperative of distribution cooperatives that presently purchase all of their requirements are all partici-pants, sharing in a l0% undivided ownership interest as tenants in common in CR-3;    Florida Power Corporation has retained the remaining        90%   ownership interest.    (See Exhibit B, "Crystal River No. 3   Nuclear Project Report" which describes the project and includes the complete Participation Agree-ment.  )

FUEL COSTS AND AVAILABILITY Fuel cost is both the largest single expense and, over, the past several years, far and away the fastest rising cost of supplying electric energy. The following tabulation sets forth the relative percentage nationally of the three types of fossil fuel, coal, oil and gas, used for electric energy gener-ation in the month of April, 1973, compared to April, 1974. It also sets forth the average price in cents per MMBtu, the increases over that twelve-month period, and the percent change. Fossil Fuels Coal Oil Gas Total Month of A ril 1974 Percent of Total Btu 62. 2 17. 3 20. 5 100. 0 Average Price - ]/MMBtu 64. 0 187. 2 43. 6 81 ~ 1 Month of A ril 1973 Percent of Total Btu 58. 5 19. 2 22. 3 100. 0 Average Price - g/MMBtu 39. 4 69. 5 33. 3 5<6 Chan c A ril 1973-1974 Percent Total Btu +3. 7 <<1. 9 - l. 8 Percent Change +6. 3 -9. 9 <<8. 1 Average Price - $ /MMBtu +24. 6 +117. 7 +10. 3 +26. 5 Percent Change +62. 4 +169. 4 +30. 9 +48. 5 The above data was based upon the FPC quarterly rcport on fuel costs and quality. As striking as the increases shown on thc above tabulation are and their relative national importance, they by. no means tell thc full story. For example; national figures showing that coal prices have incrcascd 24)/ MMBtu or 62% moan little to most Florida utilitics that rely primarily on oil and to an ever lessening extent on gas for generation when the price of oil has risen to $ 1. 87/MMBtu or 169% increase during t'e twelve months ended April, 1974. Nationally the $ 1. 87 MMBtu or $ 11. 49 per barrel is comparable to recent prices paid in Florida and the rest of the Southeast for no sulphur

 'uarantee Bunker      C  or No. 6  fuel oil.

One of the most significant factors in today's fuel cost picture for electric generation is the fact that gas, the cheapest and cleanest fuel, is becoming increasingly less available to generating systems. The Cities of Fort Pierce, Gainesville, Sebring, Homestead, Kissimmee, Lakeland, Vero Beach, Orlando, Tallahassee and Starke each own and operate electric systems in the State of Florida. Each of the cities'lectric systems include generating facilities that utilize natural gas or oil for fuel. The sole supplier of natural gas to each of the cities is Florida Gas Transmission Company (FGT). The cities purchase natural gas for generation fuel from FGT under a preferred interruptible contract. Several of the cities also have other forms of natural gas contracts with FGT. In its most recent filing with the Federal Power ~ Commission in Docket No. CP74-192, FGT lists 41 customers in the preferred interruptible class. 1/ Under FGT's present curtailment plan, the direct preferred interruptible (CPI) customer class has the'lowest.priority for gas available for sale; that is, the DPI class is curtailed or interrupted first when the gas availability is not sufficient to meet the higher priority requirements. The Florida curtailment plan provides that direct sale 'interruptible customers, which include certain industrial customers and most of the municipal generating systems except Jacksonville and Key West, which have no gas, shall be interrupted prior to any of the resale interruptible customers or, of course, the firm customers 1/ FGT shows no sales to two of the 41 customers after 1973. i As a result, Florida municipal generating systems have been experiencing progressiv'ely steeper curtailments. Gas deliveries in MMBtu's to generating systems were 35, 673, 030 in 1973; 26, 281, 703 in 1974; and 9, 187, 601 in 1975. This equates to a percentage reduction over 1973 deliveries of 26. 3% in 1974 and 74. 2% in 1975. Furthermore the Florida generating systems have been placed on notice that in 1976 they will receive virtually no gas, Therefore, these systems, plus Jacksonville and Key West, can look only to the extremely high cost oil as their primary source of fuel for next year. For simplicity, it is evident that at an average heat rate of 10, 000 Btu per kilowatt-hour, $ 1. 87/MMBtu oil costs produce fuel costs to the customer of about 18. 7 mills/kWh or l. 87$ /kWh, a figure higher than most average resi-dential rates were a few short years ago. The relatively lower cost of coal included in the national averages is misleading with respect to certain geographic areas. Spot coal prices in the Southeast have risen to levels equal to that of oil, that is, about $ l. 80/ MMBtu. The use of electricity in Florida is pique because of'lorida's climate. Exhibit C shows the heating and cooling degree days for eleven selected Florida cities; Los Angeles; Topeka, Kansas; and Syracuse, New York. The Florida cities range in location from the northernmost portion of the state to Key West. The other three cities were selected to provide a geographic cross-section of the United States. Los Angeles has a relatively l,emperate climate

'with less than dramatic changes between summer and winter temperatures. Topeka, Kansas, located in the geographic center of the 48 contiguous states, experiences winter temperatures well below O'. and summer temperatures well above 100'F. Syracuse, New York, experiences long, severe winters, but the summer temperatures are moderate. As Exhibit C shows, Floridians experience temperatures that require air conditioning for comfort to a far greater extent than do people living in Southern California or people living on the plains of the mid-west. However, even though in Florida the temperatures requiring heating for comfort range from a low of 64 degree day deficiencies (DDD) in Key West to a high of 1578 DDD in Pensacola, on colder days heating is very important and particularly so for the many elderly Florida residents. Therefore, Floridians need not only a reliable source of air cooling, but also a reliable heating source with low installation costs. Resistance type electric heating equipment and combination electric heating and cooling systems (reverse cycle units), all available at relatively low initial installation costs, have provided Floridians with a low cost, reliable heating source to meet human comfort needs that are met in other states predom-inantly with natural gas and other direct consumption of fossil fuels. Exhibit No. 3 shows how much more Floridians depend on electric heat in their homes compared with the rest of the Unit'ed States. In Florida 32. 3/o of all homes utilize electric heat while nationally only 7.f..the living units

                                                 'I
                                                             *   v utilize electric heat,    The national figure includes high electric saturation areas such as Florida and the TVA and Bonneville hydroelectric power marketing areas.

In an area such as Syracuse, New York, with 7000 DDD per year, a home owner is quite able to amortize higher initial equipment costs associated with direct consumption heating facilities with the fuel cost savings he can realize over the longer heating period. Often considered a luxury in other areas of the country, air conditioning is of vital importance in Florida. Florida's growth has been dependent upon hand is a direct result of the availability of air conditioning at a reasonable cost. Air conditioning is as much a necessity in the hot Florida summers as winter heating is in other parts of the country. Residential air conditioning is almost totally electric. Indeed, many homes are economically heated and cooled with reverse cycle units. These are electrically operated heat exphangers (heat pumps) which rely on temperature differentials (inside air to outside air, or inside air to an outside water source such as a well) to raise or lower the inside air temperature. Voile the cities originally signed interruptible contracts for gas supply, they did so based upon statements that gas would be generally available and, if curtailments were necessary, the cities w'ould not be discriminated against in receiving their natural gas entitlements. As a part of the Sti ulation and Consent Decree before the United States District Court for the Southern District of Florida, in Cit of Fort Pierce,

(1) averred: "To the best of its knowledge, Florida Gas Transmission's present supplies, including Say Field acquisitions, give it a deliverability through 1976 at a capacity factor in excess of 98fo." (2) Provided for an increase in the annual contract entitlement of Cities to the 1972 fuel requirements plus known changes up to 25%. (3) Extended the term of Cities'ontracts for direct preferred interruptible service to December 31, 1985, with automatic year to year extensions the r eaf ter. During the period the Company was expanding its pipeline system capacity to provide additional gas deliveries to Florida, the Cities were expanding their capabilities to use natural gas as a fuel for electric generation, Exhibit C shows the extent to which certain cities utilized natural gas for electric gener-ation between 1967 and 1974. As the exhibit shows, the cities utilized gas as a fuel for the generation of over 90% of their kwh output in 1967. The cities utilized oil for the balance of their fuel requirements. The c itees relied on natural gas for electric generation fuel to a much greater extent than other electric power'roducers in Florida and the United States. The percent of electric generation by various fuels in Florida and the United States is shown in Exhibit C. This heavy reliance of the cities on natural gas for electric gener-ation was due in part to the assurances of the Company as previously discussed. Moreover, the cities'eliance on naturalgas was due to the limited availability of economically acceptable alternative fuel supplies in Florida. The three primary alternate sources of generation fuel available today are coal, oil and nuclear. i As indicated ih:Exhibit C, coal is the predominarit electric genexation fuel, in the United States today. Ef the Federal Energy Administration's attempts to shift many of the nation's existing power plants from petroleum fuels to coal are successful, a still greater portion of electric generation will be with coal. Howevex, the distance of coal resources from 'Florida and the lack of economic-ally practical transportation have so far prevented coal from becoming a sig-nificant generating source for cities, All of the cities, except Fort Pierce on the Atlantic coast, are located inland where coal deliveries by water are impractical. Moreover, the modest capacity of the cities'eneration plants has precluded location away from their load centers near ports where coal deliveries by water would perhaps be practical. Until recent years the cities were electric-ally isolated such that generation had to be planned for relatively small units I located at or near their load centers. Furthermore, in view of the increasing demands on available coal supplies, cities would have difficulty competing with larger utilities and other large users of coal for thc available supplies, While Floxida Power Corporation and Florida Power 8c Light Company have built, or are building, nuclear generation, this type of fuel for generation has not been reasonably made available to the cities. To be economical, nuclear generators must be of large size--far larger than the combined loads of cities. Moreover, the investo'r-owned utilities in Florida in the past have refused to coordinate with municipally owned utilities and to transmit power from other sources to the cities, or would coordinate only on a basis that penalized cities. As was evident in the most recent oil crisis, adequate and dependable oil supplie's may be placed in jeopardy on short notice. Exhibit C compares the cost to the cities of natural gas and oil per MMBtu burned. The costs are shown at six month intervals between January, 1973 and June, 1975. In that Z-l/2 year period, the cost of natural gas However, during the same period the has'ncreased 20% from $ 0. 511 to $ 0. 612. cost of No, 6 oil has increased 230% to 270%, and the cost of No. 2 oil has increased 115% to 163%. The difference between the cost of natural gas and No. 6 oil per MMBtu burned by Fort Pierce was less than 1) in January, 1973 ($ 0. 5192 - $ 0. 5110 = $ 0'. 00082). However, by June, 1975, the difference had increased to nearly $ 1. 31 ($ 1. 921 - $ 0. 61621 = $ 1. 3089). Since the cities'nly alternate fuel for electric generation is oil, gas diverted from the cities for any purpose must be replaced with the higher cost oil. If it is conservatively assum'ed that the cities'enerating facilities require 10, 000 Btu of heat to generate one kWh of electricity (the actual con-version requirements of the cities'enerating facilities are higher), then one MMBtu of heat would produce 10 kWh of electricity. Therefore, if in June, 1975, the City of Fort Pierce is required to replace one MMBtu of gas at

$ 0. 61/MMBtu with one MMBtu of No.               6 oil at $ 1. 92/MMBtu, the fuel cost of each kWh generated with that one MMBtu of heat would increase by                     l. 31)            or over 213%,       Not only do the     cities'esidential customers receive           these very dramatic increases in their electric bills, but the commercial, industrial and government customers also             receive the same increase per kWh consumed.

Increased electric rates to commercial customers can be expected to be passed on directly in the purchase price, of their goodsand services. Pre-dominantly the citizens (residential customers) of the community bear the full burden of the increased electric costs. Moreover, increased electric rates to other departments of cities require increased budget levels, again surely to be passed on to the citizens of the communities through higher .tax rates and increased charges for services. The most dramatic increases in electric rates to consumers since 1973 have been due to reduction in gas supply and replacement with high cost oil. In 1973 with gas costs at about $ 0. 5l/MMBtu, the fuel cost included in cities'ates was about . 5]/kWh or $ 5. 00/1000 k%h. A 1973 electric bill for 1000 kWh of $ 20. 00 would, therefore, have included about 25% for fuel costs. A similar bill for June, 1975, if a city were burning 100% No. 6 fuel oil, absent any increases in other costs and using fuel cost for No. 6 oil at $ 1.95/MMBtu, would be about $ 34. 50, or which 57% would be for fuel. The increase to the ultimate consumer would be over 72%, of which $ 1, 00 or 5%, would have been represented by the increase in gas costs from $ . 51 to $ . 61/MMBtu, assuming gas was 100% available, and the remaining 67% increase would be due to a substitution of No. 6 oil for gas at June, 1975, price levels. Such-high costs to consumers in cities that have not been afforded the opportunities to participate in large nuclear plants with their attendant low energy costs and other alternative power supply resources naturally lead to calls for sales of the systems to those large utilities that do have alternative

                                        <<22

resources. A number of Florida cities are currently forced into considering the sale of their systems to Florida Power' Light, which has offered to pur,- chase them or has indicated a willingness to do so, but has not evidenced a willingness to offer participation on any meaningful basis in.its nuclear units and has resisted efforts to establish a state-wide integrated wholesale power pool. The picture is indeed a dismal one, If the utility systems are to stay solvent, they must, of course, pass cost increases on to the ultimate consumer. ADVANTAGES'F NUCLEAR There is only one bright spot in the gloomy area of electric gener-ation, fuel costs, and that is -nuclear energy which.by'.comparison, including amortization of initial core costs, is currently about 25)/MMBtu, or about 2, 5 mills/kWh. This bright spot in the overall picture is, of course, dimmed by the rapidly increasing construction costs of nuclear, power. plants, the'long lead time in planning and bringing them on the line, the increase in interest during construction associated with that long lead time, and the unprecedented high interest costs for short term construction funds; but nonetheless it is now clearly evident that nuclear power generation is the only opportunity in the period 1975-1985 to ameliorate the rapid increase in fuel costs and perhaps bring back down the retail prices of electricity. This opinion is, in fact; shared by many of the nation's largest utilities, including Florida Power h

Light, which have planned nuclear plants to come on the line in the period from now through the 1980's so as to provide all or most of their base load r equir ements. Clearly FPhL is strongly committed to nuclear. According to the 1974 Moody's Public Utility Manual (Exhibit D), FPhL generated 4,431, 556 MWH in 1973 from its Turkey Point Nuclear Unit 3 and Unit 4, both 760 MW, at an average fuel cost of l. 75 mills/kWh. It currently has under construction and planned for commercial operation its 890 MW St. Lucie Unit No. 1. St. Lucie Unit No. 2, also 890 MW, is scheduled for commercial operation in 1980. Its planned South Dade Nuclear Units are to be rated at 1140 MW each according to a September 3, 1975 prospectus. Therefore, with the completion of South Dade Unit No. 2 the Company will have installed nuclear capacity in excess of 5,500,000 kW. By comparison, the municipal intervenors have only an ownership interest of about 62 MW in the 825 MW CR-3 nuclear unit, the only other nuclear unit planned or under construction in the State duxing the period through scheduled completion of South Dade No. 2. If municipal intervenors and cooperatives are not granted the relief requested in.intervenors'etition, cities and cooperatives are precluded from having a mix of nuclear to fossil 'fueled generation of more than an infinitesimally small percentage of what FP8:L will possess. FP8zL is clearly planning for something on the order of 50/o of its instated capacity and approximately 70/o of its energy to come from nuclear by the late 1980's. To test the effect on projected. costs and possible future mixes of generation for planning purposes, I recently reviewed cost estimates for a two-unit nuclear plant and a two-unit fossil fuel,plant, one unit being a 700 MW base load coal-fired plant and the other a 600 MW oil-fired cycling plant, that were prepared in 1972 for 1983 on-line dates. The rates of inflation and cost of money assuming municipal financing in 1972 appeared reasonable at that time. If we would increase the rates of inflation which were 6% for labor and 4% for material as of 1972 to 1974 rates that might be on the order of 12% for labor and 8% for material, the results in terms of increased fixed and variable costs of power at the bus bar are quite startling. Also, the results indicate an even stronger justification for the planning of nuclear plants in the future than one could have concluded. from 1972 price levels. Table I, which follows, sets forth the results of the 1972 estimate for 1983 on-line dates, and Table II sets forth the possible adjusted estimate at much higher levels of inflation. The accompanying graph shows the plot of bus bar cost of power in mills/kWh versus plant factor for the nuclear and fossil plants under both of these estimates.

TABLE I 1972 ESTIMATES OF 1983 COSTS3"- (Municipal Financing ) Fo s s il Fu cled Pla nt Nuclear Base Cycling Plant Fos sil Fossil (2-Units (1-700 MW) (1-600 MW)'- Fixed Costs @900 MW) Amortization Period - Years ...39 35 Capital Cost - $ /kw 479 381 310 Fixed Char c Rate - %- Cost of Money 6,00 00 6. 00 Depreciation 1. 26 1. 26 .90 Interim Replacements .27 . 28 .28 Insurance . 70 . 24 . 24 Taxc s Total - ~/8 (Exclusive of Taxes) 8. 23 7. 78 7,42 Fixed Charges - $ /kw 39. 42 29. 64 23. 00 Fixed Oa-.M - $ /1cw 3. 21 Z. 36 2. 36 Fixed AUG - $ /kw , 49 . 42 . 38 Total Fixed Ch rges - $ /kw 43. 12 32. 42 Z5. 74 Total Fixed Charges at 80% Plant Factor - Mills/kwh 6. 16 4. 63 3. 68 Var iablc Costs Foci Co sts

        - g/MMHtu                           15. 4         67. Z            78. 8
        - Mills/kwh at Full Load              l. 54        6. 45            9. 41 Variable OkM,- Mills/kwh                  .15         1. 03             1. 38 Total Variable Costs at Full Load
        - Mills/kwh                          1, 69         7. 48           10. 79 Total Cost of Power at 80%

Plant Factor- - Mills/kwh 7. 85 12. 11 14. 47 1972 nuclear price levels and 1976 cstimatcd fossil generation plant price lcvcls and 1972 fuel cost levels escalated to 1983 using thc following escalation factors: Labor 6% Material - 4% Nuclear Fuel- l. 5% Fossil Fuel - 3. 0%

                                        -R6-

TABLE II 1974 ESTIMATJ' OF 1983 Financing COSTS"'Municipal

                                                        )

Fossil Fu cled Plant Nuclear Base Cycling Plant Fossil Fossil (2-Units (1-700 M17) (1-600 MW) Fixed Costs Qa900 MW) Amortization Period - Years 30 30 '35 Capital Cost - $ /kw 762 607 492 Fixed Char e Rate - % Cost of Money 7. 00 7. 00 7. 00 Depreciation 1. 06 '1 ~ 06 .72 Interim Replacements .27 ~ 28 .28 Insurance .20 .15 .15 Taxes Total -  % (Exclusive of Taxes) 8. 53 8. 49 8. 15 Fixed Char g e s - $ /kw 65. 00 51. 53 40, 10 Fixed 08aM - $ /kw 5. 10 3. 75 3. 75 Fixed AkG - $ /kw . 78 . 67 .60 Total Fixed Charges - $ /kw 70. 88 55. 95 44. 45 Tota 1 Fixed Cha r g e s a t 80% Plant Fa c to r - Mills/kwh 10. 12 7. 99 6. 35 Variable Costs Fuel Costs

      - g/MMHtu                             27. 0                 136. 0              259. 0
      - Mills/kwh at Full Load               2. 70                       13. 05        30. 93 Variable Oa.M - Mills/kwh                    . 24                       1. 64         2. 19 Total Variable Costs at Full Load
      - Mills/k3vh                           2. 94                       14. 69        33. 12 Total Cost of'ower at 80~/p Plant Factor - Mills/kwh                  13. 06                       22. 68        39. 47

- 1972 nuclear price levels and 1976'estimated fossil gene.ration plant price levels and 1974 fuel cost lcvcls escalated to 1983 using the following escalation factors: Labor .. - 12 /p Ma ter ial - 8% Nuclear Fuel - 3. 0% I'ossil Fuel - 3. 0% ESTIMATED l983 BUS BAR COST OF POWER Vs PLANT CAPACITY 100 ISTS ESTIMATE N/rrrrrr. I974 EsTIMATE 90 80 70

'Z X

VJ Q 60 X I O

~ 50 zO O

+ 40 OIL FIRED 0 CYCLING 0 zz 30 C~ rrr~rrrrrrrrrrrrrrrrrrrrr COAL FIRED

" 20 0                                                                    BASE LOAD OIL FIRED CYCLING NUCLEAR IO                                                              COAL FIRED 0 IO 20 30    40        50         60         70          80       90   IOO ANNUAL CAPACITY FACTOR (%1

Note that the 1972 estimate of 1983 installed costs per kW versus the 1974 estimate indicates that the installed costs would be approximately 60% higher under current rates of inflation than they were projected to be the rates of inflation assumed under thewage and price control guide-

                                                                                      'nder lines that were in effect in 1972. Specifically, the estimated installed cost per kilowatt of nuclear in    1983 would go  from  $ 479  to $ 762; the installed cost of base load   fossil in the  1972 estimate would go    from $ 481/kW to over $ 600/kW in the 1974 estimate for a coal-fired unit and from        $ 310  to $ 492 for an  oil-fired cycling unit. From recent independent estimates for nuclear              and base load coal-fired units planned for 1983 completion, we see indications that the higher cost estimates do not seem to be out of line with costs that utilities were projecting in 1974.      Reflecting the higher cost of money, the total fixed charges in dollar per kilowatt in the 1974 estimates are 65%-70% higher than in the  1972 estimates. One of the biggest jumps in fuel costs is associated             ~

with the cycling plant which is assumed to burn heavy oil and which reflects the current high level of fuel costs plus 3% escalation to 1983. In 1983, at 1974 price levels, escalated 3% per year, the fuel costs alone would be 31 mills/kWh for an oil-fired plant. The purpose of calculating fixed charges and variable costs is I to be able to plot alternative types of generation at various plant factors for the different types of generating capacity as a tool in planning a sound gener-ation program. These are shown graphically on the accompanying chart. Note from the tables and the chart the differences between the 1972 and 1974 4' C I K estimates. At full.load heat rates and annual capacity factors of 80%, the overall bus bar cost of nuclear power has gone from slightly less than 8 mills/kWh to about 13 mills/kWh; the coal-fired base load unit cost has gone from 12 mills/kWh to 23 mills/kWh; and the oil-fired cycling unit cost has gone from about 14. 5 mills/kWh to 39. 5 mills/kWh. The significant increase in the spread of cost between nuclear, coal-fired base load, and oil-fired cycling units based upon present fuel costs and high inflation factors is an important consideration in future power supply planning. Where nuclear power can be made available, neither the coal-fired nor the oil-fired unit should be considered for base load service, or for that matter, even for intermediate service; and the nuclear power would move even further up on, the load duration curve. Note that even on the basis of the 1972 estimate nuclear was lower in cost than coal-fired base load units at an annual plant capacity factor of about 25%. Based upon the 1974 higher projected estimates, this cross-over point occurs below 20%. Even more significant is that oil-fired units, where there'is a choice, would have to be relegated to a very low annual plant capacity factor on the order of 10%-15% if nuclear is available. One of the most compelling conclusions that comes out of an analysis of future projected costs based upon today's level of fossil fuel versus nuclear costs and today's inQation rates relates to the future competitive position of a system that has predominantly nuclear generation to meet its base load requirements versus a .system that must rely predominantly on fossil fuel units to provide base load service. Table II and the graph representing 1974 estimated power costs, under the conditions described, show clearly what that competitive position would be at the bus bar where the bulk of the total utility costs will be incurred. How could a system in 1983 relying primarily on oil-fired units with bus bar costs of about 40 mills/kWh for its most efficient units compete with a utility having predominantly nuclear generation for base load service putting power on the bus at approximately 13 mills/kWhP The heat rate for the oil-fired units assumed is 9, 700 Btu/kWh for a high-temper-ature, 'high-pressure unit. There are not many municipally planned oil-fired units that I know of that will be able to achieve that kind of heat rate or the installed cost per kilowatt of a 600 MW unit in that period out to 1983. The point is that for small, less efficient oil-fired units, the bus bar cost of power is going to be even greater. FP8zL'S DOMINANCE IN THE WHOLESALE BULK POWER SUPPLY MARKET IN FLORIDA AND ANTI-COMPETITIVEACTIVITIES FPkL delivers bulk power throughout its service area for trans-mission to successively lower voltages by which delivery is made to load centers of ultimate customers or to delivery points of wholesale for resale customers. The 240 kV and 500 kV transmission lines in the Company's power system and the 115 kV and 138 kV transmission lines, which perform a system function as opposed to a subtransmission function, comprise what are commonly called "bulk power transmission,: whereas the lines which move power from the bulk power system to local retail distribution load

centers or wholesale for resale delivery points, being certain 138 kV, 115 kV and 69 kV class facilities, are commonly called "subtransmission lines;" and the 13 kV and lower voltage lines which move power from the subtransmis sion network to the ultimate customer are "distribution lines. " With respect to bulk power transmission, FP8:L virtually dominates the ownership of such facilities within its service area. The only exceptions are a limited amount of 115 kV and 230 kV transmission facilities owned by the Cities of Jacksonville and Orlando in order to integrate the output of their generation into those essentially local load centers and a segment of 138 kV transmission operated at 69 kV owned by the Florida E<eys Cooperative in order to take service at wholesale from FPhL and a 69 kV line between the Vero Beach and Fort Pierce municipal systems. According to a company prospectus dated September 3, 1975, FPhL owned installed generating capacity of over 9, 000, 000 kilowatts and had under construction or planned through South Dade Unit No. 1 an additional 6, 300, 000 kW, all scheduled to be in service by 1983 and, with the completion of South Dade Unit No. 2, would aggregate over 16,000,000 kW of which over 5,200,000 kW would be nuclear, Exhibit E is a set of tables and maps excerpted from an April, 1975, report by the Florida Energy Data Center entitled Statistics of the Florida Electric Utilit Industr, 1960-1974. Table C2 of this exhibit shows that as of Decemb'er, 1974, FPkL's installed capacity of 9537 MW was over 2. 5 times greater than the next larger utility in the state, Florida Power, and about the same percentage greater than all of the muni'cipal and cooperative generation in the state. FPEzL' installed capacity was about 45/0 of the total installed capacity in the state. The maps C7-X and C7-XX of this exhibit show the relative service areas of the privately owned and publicly owned systems respectively. Table S-3 of the exhibit shows that in sales to ultimate customers

                /

FPEcL is also the dominant electric utility in the Florida retail market. In the Florida retail market, in addition to competition for new customers, FP8zL, to my knowledge and belief, has a long history through the present time of attempting. or offering to purchase the entire electric systems owned by municipalities, thereby reducing competition in both the Florida wholesale bulk power supply market and retail market. The documents included in Exhibits F, G, H, and I are illustrative of the type of activities in which FPRL has engaged regarding efforts to purchase and restrict the power supply alternatives of small systems. Further, to my knowledge'and belief, FPhL's long term efforts to avoid FPC jurisdiction and its resistance to participating in a fully integrated power pool in Florida have severely limited coordinated planning and operation between utilities in the state, especially smaller utilities, and has restricted power supply alternatives that could have and should have been available to such systems. The documents included in Exhibit S dating from February 27, 1974, through March 16, 1976, reveal the recognition by other utilities, the state legislature, and the Florida Public Service Commission of the need and economic desirability of such fully integrated "one system" approach to coordinated planning and operation of electric generation and transmission in Florida. FPRL's unwillingness to cooperate fully in such efforts as evidenced in the Exhibit J'ocuments and in Mr. Harry C. Luff's affidavit has severely restricted the, power supply alternatives of the intervenors and others. The importance of the availability of alternatives provided .by a fully integrated power pool to small systems is illustrated by the current situation in Vero Beach, Florida, a municipally owned generation and distri-bution system, electrically interconnected with FPRL. All of the Vero Beach generation is fossil-fueled. The city's gas supply for generation is currently completely curtailed,. and the city has no prospects for future, low cost gas supply. At current high costs of fuel oil, the city's generating costs at the bus bar are reportedly Z7 mills/kVfh, which cost is reflected in fuel adjust-ment charges included in customers'ills. Faced with retail rates, including fuel costs, well above those currently charged by FPkL, many citizens have called for sale of the system to FPhL. The City Commission authorized the City Manager and a City Commissioner to negotiate with FPRL regarding the sale of the system, which negotiations have been taking place. The city has authorized a national accounting firm to analyze the company's offer to purchase the system. The City Manager, a knowledgeable former utility executive, has publicly stated that he sees no alternative to the proposed sale, From a power supply and economic standpoint, it is clear that if the following alternatives were available to Vero Beach, itS power supply costs could be substantially reduced, The amount of such cost reductions would have to be the subject of competent engineering and economic analyses:

1. Purchase of a portion of its requirements from FPhL at average cost wholesale bulk power rates approved by the Federal Power Commission;

2. Market of city's surplus capacity thus created; or oth'er:

use avaxlab1e',"to 'aai the members of an integrated Florida power pool at compensatory rates which should be attractive to other systems;

3. Direct access to ownership interest in FPkL's planned and existing nuclear units and those under construction;

4. Operation of all of its power supply resources, including installed generating capacity retained for its own use in a completely integrated single system Florida electric power pool where all units in the state are subject to central economic dispatch and the savings shared by aQ utilities;

5. Unrestricted access to FP&:L's transmission system under reasonable terms and conditions and fair compensation for use to facilitate power sales and purchases with other Florida utilities and make desirable power exchanges, including economy exchanges, short term firm power exchanges, etc.

Regarding access to transmission service, one of the most serious restrictions on the alternatives available to intervenors is the unwillingness of FPhL to commit to provide general transmission service and the lack of a fair method of computing and compensating for transmission service where more than one investor-owned utility is involved. For example, New Smyrna Beach is faced with the prosp'ect of paying a double wheeling charge to have its participant's share of CR-3 delivered over the electrically integrated systems of Florida Power and FP&..L. One solution to this problem,adopted in other states, is where all utilities utilizing the transmission system make an equalized investment in transmission facilities in proportion to the use

ke-made thereof. Such approach would appear to have merit in Florida, subject to engineering an8 economic analyses. Robert E. Bathen STATE OF FLORIDA )

                          )

COUNTY OF ORANGE) On this the fourteenth day of April, 1976, before me, Emily B. Faulhaber, the undersigned officer, personally appeared Robert E. Bathen, know'n to me to be the person whose name is subscribed to the above instru-ment and acknowledged that he executed the same for the purpose therein contained, IN WITNESS WHEREOF, I have hereunto set my hand and official seal. LIST OF EXHIBITS EXHIBIT A - Qualifications of Robert E. Bathen EXHIBIT B - Florida Power Corporation's Offers for Joint Participation EXHIBIT C - Tables Illustrating Fossil Fuel Costs in Florida (12 pages) EXHIBIT D - Moody's Public Utility Manual, 1974 Report on Florida Power 4 Light Company EXHIBIT E - Tables and Maps Excerpted from Statistics of the Florida Electric Utili Industr, 1960-1974 by the Florida Energy Data Center EXHIBIT F - Discovery Documents from "Gainesville vs Florida Power Corporation and Florida Power h Light Company." CA68-305- CIV. J- (20 page s ) EXHIBIT G - Correspondence Florida Power 8z Light Company and New Smyrna Beach, and Newspaper Articles EXHIBIT H - 'orrespondence from FP4L to Smith and Gillespie re Proposed Parallel Interconnection of New Smyrna Beach and FP8zL EXHIBIT I - Correspondence between FPhL and New Smyrna Beach re Lease or Purchase of New Smyrna Beach Electric System by Company (5 pages) EXHIBIT J - Documents Relating to Fully Integrated Florida Electric Power Pool

~ EXHIBIT A QUALIFICATIONS OF ROBERT E. BATHEN

QUALIFICATIONS OF ROBERT E. BATHEN My name is Robert E. Bathen, and my residence address is 1851 S. Chickasaw Trail, Orlando, Florida. I am a Partner, Supervising Executive Engineer, and Manager of the Southeast Regional Office of the firm of R. W. Beck and Associates, Engineers and Consultants. I have been continuously associated either as an employee or as a partner with this firm for more than 18 years. R. W. Beck and Associates is a firm of Engineers and Consultants performing general engineering and consulting services, primarily in the utility field, for clients throughout the United States including Alaska and Hawaii. This work includes'ong range utility expansion planning, feasibility and financing studies for individual power projects; periodic analyses of the operations of utility systems, participation in utility rate matters relating both to costs of service of utility clients for determining revenue levels and participation in regulatory matters before state and federal commissions and courts. The firm's general offices are in Seattle, Washington; and we have other regional offices in Denver; Orlando; Boston; Phoenix; Columbus, Nebraska; and Indianapolis, Indiana. The firm presently has over 330 person-nel including partners and employees, I have a Bachelor's Degree in engineering from Cleveland State University and, in addition, concluded two semesters of college level education 'at Omaha University and Creighton University in the field of business administra-tion. I am a registered professional engineer in Ohio and in eight other states and have been working in the electric utility field since 1948, During my employment with R. W. Beck and Associates, I have prepared or have had direct supervisory responsibility for the preparation of rate studies, valuations, analyses of operations and financial feasibility studies for clients throughout the United States. I joined R. W. Beck and Associates'in August, 1957, and from 1957 until 1959 I was employed in the Columbus, Nebraska, office of the firm where I performed design work on steam power plant construction and feasi-bility studies on multi-purpose water resource developments. From 1959 to 1962 I was employed in the Seattle office of R. W. Beck and Associates where I served as client engineer to two of the State's county-wide public utility districts during that time I also participated in feasibility studies on two large dams on the Columbia River.

From 1962 until 1965 I was head of the Consulting Services Department of the firm's Denver, Colorado, office and became a partner in 1964. During this three-year period I was responsible for all long range planning studies, analyses of operations, feasibility studies, whole sale,and retail rate studies, power supply planning, and pooling studies conducted by this major office of the firm. From 1965 to date I have been Manager of R. W. Beck and Associates'outheast Regional Office in Orlando,- Florida. In that capacity I have been responsible for the preparation of periodic analyses of electric system operations and power supply planning and pooling studies, including planning the financing and construction of generation and transmission facilities to supply all or portions of the wholesale power requirements of municipal systems as an alternative to continued purchase of total requirements- from integrated electric utility companies that presently serve the total or the preponderance of their requirements. The following list summarizes my experience and participation before regulatory commissions and courts as an expert witness; In the District Court, First Zudicial District, Count of Laramie, State of Wyoming, December, 1963-January, 1964, I presented an analysis of the applicability of the stock and bond method and the capitalized earnings method of valuation in arriving at elements of value in determining a valu-ation of the Chicago, Burlington and Quincy Railroad, Plaintiff, for the Board of Equalization of the State of Wyoming, Defendant, Before the City Council, City of Abilene, Texas, in February, 1965, acting under the laws of the State of Texas whereby cities are em-powered to regulate rates for utility services to the city, on behalf of the City of Abilene, I presented reports with respect to the rates, rate of return, and fair value of the properties of the Lone Star Gas Company, the West Texas Utilities Company, and the Southwestern Bell Telephone Company, all of whom provide service within the City of Abilene. Before the Florida Public Service Commission, Docket 7766-TP, February - October, 1965, on behalf of Pinellas County, Florida, Intervenor, in a rate investigation of Ge'neral Telephone Company of Florida, I presented testimony with respect to rates, rate base and rate of return on telephone utility properties. Before the Florida Public Service Commission, Docket 7767-EU, March - November, 1965, on behalf of Pinellas County, Florida, Intervenor, in a rate investigation of Florida Power Corporation, I presented testimony with rexpect to rates, rate base and rate of return on electrical utility properties.

Before the Federal Power Commission, Docket E-7264, in a complaint filed January, 1966, against'he wholesale municipal rate of Florida Power Corporation to twelve cities in which settlement was reached in 1967 without hearings, I performed technical aspects of settlement nego-tiations and settlement rate design. Before the Federal Power Commission, Docket E-7388,, Massa-chusetts Municipals vs. New England Power Company, a wholesale rate case, I testified regarding obsolescence and inefficiency. Settlement was reached before the Commission reached a decision. Before the New York Public Service Commission, Case No. 25342, a rate case involving Commonwealth Edison, I testified regarding obsolescence and inefficiency of the Company on behalf of the New York Housing Authority. Before the Railroad Commission of Texas, Gas Utilit Docket 445, in 1970, I presented testimony regarding appeal of Southern Union Gas Company on behalf of the City of Austin, Texas, regarding rate base, oper-ating expenses, taxes and rate of return. Before the Federal Power Commission, Docket E-7557, June, 1971, regarding the application by Duke Power Company for an increase in rates to wholesale customers, I presented testimony on behalf of munici-palities and REA cooperatives as intervenors regarding anticompetitive implications of Company practices and cost of service to wholesale customers. The Commission decision was appealed by the intervenors, and settlement has been reached. Before the Federal Power Commission, Docket E-7564, October and December, 1971, regarding application by Carolina Power h Light. Company for an increase in rates to wholesale customers, I presented testimony on behalf of municipalities and REA cooperatives as intervenors regarding anticompetitive implications of Company practices and cost of service to wholesale customers. Case was settled before Commission decision, and FPC approved the settlement. Before the Federal Power Commission, Docket E-7720, March 30, 1972, ElectriCities of North Carolina vs. Duke Power Company, I presented testimony for the intervenors in connection with Duke' fossil fuel adjust-ment clause involving implications of anticompetitive activities of the Company and cost of service. Settlement has been reached. Before the Federal Power Commission, Docket E-7679, Twelve City Public Power Committee vs. Florida Power Corporation, June, 1972-1974, I presented testimony for the intervenors in the Company wholesale rate increase filing. This testimony involved anticompetitive activities of the Company and cost of service. Settlement was reached, and the agree-ment was approv'ed by the Commission in August, 1974. I was responsible for technical aspects of the settlement negotiations including development of transmission service rate tariff and partial requirements tariff. Before the Federal Power Commission, Docket E-7918, April, 1973, Carolina Power 0 Light Company's proposed wholesale rate increase, I testified in support of the settlement agreement reached by CPhL and its municipal customers. The settlement agreement was approved by the Com-mis sion. Before the Federal Power Commission, Docket E-7994, Sanuary, 1973, I presented testimony on behalf of ElectriCities of North Carolina regarding Duke Power Company's filing for wholesale rate increase involving implications of anticompetitive activities of the Company and cost of service. 'Settlement has been reached, Before the Federal Power Commission, Docket No. R-479, July 30, 1973, I filed a statement regarding the proposed rule making re: fuel adjustment clauses in wholesale rate cases. Before the Federal Power Commission, Docket E-8008, in December, 1973, I presented testimony on behalf of the Utilities Commission, City of New Smyrna Beach, Florida, and appeared in hearings in connection with Florida Power 4 Light Company's application for wholesale rate in-crease involving implications of anticompetitive activities of the Company and its unwillingness to enter into an interconnection agreement with the intervenor. Before the Federal Power Commission, Docket E-8026, May, 1973, I presented testimony in support of the settlement agreement between municipal customers and Virginia Electric 4 Power Company which had been approved by the Federal Power Commission on April 6, 1973. U. S. Vir in Islands Public Services Commission, Docket No. 106, in May, 1974, testimony was pr'epared and filed with the Commission and presented at public hearings on proposed changes in the fuel adjustment clause of the Virgin Islands Water and Power Authority. In September, 1975, I participated in public hearings in the Virgin Islands, and in October, 1975, presented further test'imony in this Docket in support of the proposed rate increase.and rate structure of the Authority. Before the Federal Power Commission, Docket RP 74-50-1 et al, April, 1974, I presented testimony on behalf of the Municipal Electric Inter-venors (the Cities) regarding the requested special exemptions requested by

industrial applicants from the approved Florida Gas Transmission curtail-ment plan and the potential effect of granting such requested special exemptions on the Cities. Before the Federal Power Commission, Docket E-8881, August, 1974, I presented testimony on behalf of Municipal and Electric Membership Corporation Intervenors regarding Carolina Power 4 Light Company's pro-posed change in fuel adjustment clause, Before the Federal Power Commission, Docket RP 74-50-5, January, 1975,. I presented testimony on behalf of Municipal Electric Inter-venors (the Cities) regarding the effect on the Cities of requested special exemptions by Florida Hydrocarbons and Florida Gas Transmission Company from the approved Florida Gas Transmission curtailment plan. Before the Federal Power Commission, Docket E-8851, February 24, 1975, I presented testimony on behalf of the Municipal Utility Association of Alabama regarding Alabama Power Company's proposed wholesale rate in-crease. Before the Federal Power Commission, Docket E-8884, March, 1975, I presented testimony on behalf of Municipal and Electric Membership Corporation Intervenozs regarding Carolina Power 5 Light Company's pro-posed wholesale rate increase. Before the Federal Power Commission, Docket CP74-192, June 16, 1975, I presented testimony on behalf of Municipal Electric Intervenors (the Cities) regarding Florida Gas Transmission Company' proposed pipeline abandonment. I have participated in seminars and prepared papers for presenta-tion to industry groups regarding various aspects of utility operation enumerated as follows: Benefits of Power Poplin before the Seventh Annual Conference of the Florida Municipal Utilities Association, Lake Worth, Florida, April 1-3, 1964; The Case for a Florida Munici al Power Pool before the Ninth Annual Conference, Florida Municipal Utilities Association, Jacksonville, Florida, March 23-15, 1966; Florida Munici al Power Pool - A Must for Yankee-Dixie before the Second Annual Meeting, Yankee-Dime Power Association, Washington, D. C., June 2-3, 1966;

            .En ineerin  As ects of Rate Re ulation before the American

. Public Power Association Legal Seminar on Wholesale Rates and the Federal Power Commission, Atlanta, Georgia, Nov'ember 14-15, 1966; A New Water Resource Plan for the Great Plains presented at the Annual Meeting of Mid-West Electric Consumers Association, Omaha, Nebraska, December 8, 1967; The Name of the Game (regarding Rates, Power Supply and Sales Promotion and their Combined Effect on Low Cost Electric Service) before the'Third Annual Power Sales Public Relations Workshop, Flox'ida Municipal Utilities Association, Daytona Beach, 1-3, 1969; Florida,'ctober The Twelve Cit Stox - A Re ox t on Joint Action to Date b Twelve Florida Cities before the American Public Power Association Legal Seminar, Phoenix, Arizona, October 26, 1970. In April, 1970, I addressed the Tri-State (Ohio, Indiana, Michigan) Municipal Utility Association on the EPIC Project in North Carolina; and I addressed the Annual Conference of Municipal Electric Utilities of Wisconsin in Oshkosh, Wisconsin, June, 1970, on the same subject. In September, 1973, I addressed the Environmental Workshop of the American Public Power Association on "Municipal Electric Rates 'nd the Environment. " I presented a paper entitled "Factors Affecting Electric Rates" before the Utility Education Seminar of the American Public'Power Association, September 19-20, 1974. In October, 1974, I presented a paper entitled "Electric Rate Policies" before the American Public Power Association Advanced Manag ement Seminar, Washington, D. C.

                                         -'6-

EXHIBIT B Florida Power Corporation's Offers for Zoint Participation

Rorkla Power January 20, 1975

SUBJECT:

Invitation to Bid On January 8, 1975, Florida Power Corporation hosted a meeting in St. Petersburg, during which the Company offered for sale, on a joint-ownership basis, portions of several of its generating units currently under construction or planned. At that meeting it was announced an Invi-tation Letter would be sent to all interested parties setting forth in some detail the guidelines for expressing an interest in any or all of the offered projects., Accordingly, this letter will provide information which we feel will be necessary for your evaluation of project offerings and permit you to furnish us with an expression of interest commitment, if you so desire. We have offered five specific projects for your consideration. These are:

1. Crystal River Nuclear Plant Unit ¹3.

2. Anclote Fossil Plant Unit ¹2.

3. DeBary Regenerative Combustion Turbine Plant.

4. 1980's Nuclear Plant Unit ¹l.

5. 1980's Nuclear Plant Unit ¹2.

Each project is individually described in detail on the en-closed Project Data Sheets. These data are intended as a common denomi-nator for all interested parties and sum up the information given verbally and in print at the January 8th meeting. In addition, an Expression of Interest Form is provided for each project individually as a means of indicating your intent to participate with us on any or all of these proj-ects. COMMENTS APPLICABLE TO ALL PROJECTS At the meeting on January 8th, several potentially interested parties inquired as to whether it would be possible to make conditional proposals. After due consideration, it has been decided that it would be impractical to accept conditioned proposals. For this reason, we wish to make it absolutely clear that. all expressions of interest are to be Ggn8pgl Qf fjct. 3201 Thirty.fourth Street South ~ P.O. Box 14042. St Petersburg. Florida 33733 ~ 8t3-866'5tSt

Invitation to Bid January 20, 1975 Pa e 2. made on a non-conditional basis. Ex ressions of interest which are deemed to be conditional shall be re ected. Further, as is indicated on the Expression of Interest Form, all proposals must be expressed in a percent of the project offered. You will further note that the Expression of Interest Form requires the entity making the proposal to designate the minimum percent they will be willing to accept. This indication is neces-sary to expedite the allocation procedure, realizing there are some enti-ties who would not wish to participate in joint ownership below a given percentage level of ownership. We ask all "interested parties to keep in mind that Florida Power Corporation has expressly reserved the right to reject all,expressions of interest. With regard to risk, we would once more reiterate that each co-tenant in any or all=of the offered projects must accept his proportionate share of risk which accompanies the design, construction, licensing and operation of electric generation facilities. COMMENTS SPECIFIC TO INDIVIDUAL PROJECTS

1. Crystal River Nuclear Plant is located in west central Citrus County.

10% of the estimated 825 mw net generation capacity of Unit 3 is offered.

2. The Anclote Fossil Plant is located in southwest Pasco County. I0%

of the estimated 515 mw net generation capacity of Unit 2 is offered.

3. De8ary Regenerative Combustion Turbine Plant is located in southwest Volusia County on the St. John's River. 100% .of the estimated 300 mw net generation capacity is offered.

As disclosed at the meeting on January 8th, Florida Power Corpo-ration is not desirous of participating in this project on a joint-ownership basis. For this reason, the Company has offered 100% of this project for sale, excluding land. (Adequate lease arran'gements will be provided regarding land rights.) Interested participants in this project may offer to purchase between 0% and 100%, with the un-derstanding that if Florida Power does not receive offers totalling 100%, all offers will be rejected. Conversely, if the offers exceed 100%, the allocation formula as hereinafter set forth wilI be applied and the project will be sold in total to those parties who have ex-pressed an interest in participating in this project. It should be emphasized again, however, that Florida Power will not be a joint owner in this particular project. If the successful participants de-sire Florida Power to complete the construction of this project, or to operate it, the Company is willing to enter into negotiations for this purpose.

4. 1980's Nuclear Unit $/1. The location for this plant has not been de-termined. An east Orange County site is presently the preferred location, and a Suwannee River site is a secondary location. 40'%f

Invitation to Bid January 20, 1975 Pa e the estimated 1300 mw net generation capacity is offered.

5. 1980 s Unit jj2. This unit will be located at the same site as Unit 41 above. 40% of the estimated 1300 mw net generation capacity is also being offered.

ALLOCATION FORHULA As was announced at the January 8th meeting, in the event any one project is oversubscribed, the following allocation formula will be applied. The maximum percentages set forth in the Expression of Interest Forms received by the Company will first be totalled. This total will be-come a denominator of a ratio for. which the numerator will be the offered percentage participation. Each individual expression of interest will then be multiplied by the ratio thus produced, and a resulting, percentage allocation will be obtained. This result will be compared with the indi-vidually-specified minimum percentage and all offerings which fall below the stated minimum will be eliminated and a new allocation calculation made. For example; Anclote Unit k/2 16 Expressions of Interest for 10% 8 II II II II 50/ Total 200% Amount offered - 10% 10% I 200% 20 10%X I I/2% ownership in project. 20 5%X I I/4% ownership in project. 20 CONTRACT DOCUNENTS Drafts of the contract documents which wi I I surround each project are in the process of being prepared. When these documents are complete they will be mailed immediately to each recipient of this Invitation Letter,

Invitation to Bid January 20, 1975 Pa e4 These documents will explain the basis of legal participation of the joint owners, in addition to setting forth terms under which the Company would act as Operating Agent. These documents will be furnished in advance of March 17;, 1975. PERTINENT DATES March 17, 1975 date by which Florida Power is to receive Expression of Interest Forms from interested parties. Following receipt and evaluation of .these forms for al projects, 1 Florida Power will notify each interested party as to the out-come of their Expression of Interest. This will be accom-plished as rapidly as possible after March 17th. Jul y 15, 1975 Al I participating parties will sign formal contracts, and participation money due from joint participants shall be

                                      'payable at that time.          (See Project Data Sheet for cost basis    )  .

RESOLUT I ON "OF SUPPORT FROM GOVERN I NG BOARD Each Expression of Interest Form shal I be accompanied by a Resolution from the entity expressing an interest in participation. This Resolution shall state:

1. That the person signing the Expression of Interest Form on behalf of the said entity

                      ,  is duly authorized to so sign.

2. That the Expression of Interest is being made in good faith, with full intent 'of complying with the commitment.

3. That the entity expressing the interest of joint participa.tion has the financial capa-bility to pay the amounts which will become due through participation in the project.

Invitation to Bid January 20, 1975 Pa e IN UIRI ES Questions relating to this Invitation should be directed to: Mr. 0, E. Knauss P. 0, Box 14042 St. Petersburg, Florida 33733 Phone: (813) 866-4160 We were pleased with the initial interest evidenced by the at-tendance and participation in the January 8th meeting, We are hopeful that our proposed concept will evolve ultimately.to fruition, whereby the benefits available to all participants. through joint ownership can become a reality. We recognize that there are many problems and challenges ahead of all of us in the next several months, but are confident that with proper attitudes and cooperation we can accomplish our joint goals. Very truly yours, M. F,.Hebb, Jr. Vice President

Project: Cr stal River Nuclear Plant Unit 3 THF. INFORMATION CONTAINED HEREIN IS THE MOST ACCURATE AVAILABLE TO FLORIDA POWER CORPORATION ON JANUARY 20, 1975. IT IS INTENDED THIS DATA BE USED AS A GUIDE FOR EVALUATION OF THE OFFERING. HOIIEVER, UNDER NO CIRCUM-STANCES SHALL THIS INFORMATION BE CONSIDERED FINAL OR BINDING.

                                                              ~   ~

A Iv il' c Florida Power C 0 II P 0 A A 1 s 0 N January 20, 1975

PROJECT: CRYSTAI RIVER NUCLEAR PLANT UNIT 3 Participation Available (Total) 10Ã PROJECT SCHEDULE

1. 'Current construction status (5 work in place) 95K The construction status represents the percentage of plant material and equipment in place and does not represent a percentage of the

    -estimated  total project cost.

2. Current construction activity The construction work force at Crystal River II3 is reduced in scale to about one-'fourth of full construction capability, The principle activity is testing which is proceeding at near full pace. Limited construction activity is underway in the nuclear steam supply systems and critical electrical systems.

3. Estimated months of full force construction to 12 to 13 months co~piete

4. Estimated date of resumed full .force construction Se t. 1975 (with participation)

5. Estimated fuel loading date t1a 1976

6. Expected in-service date (commercial operation) Se t. 1976 RATING AND OPERATING FACTORS

1. Expected maximum net generating capability (HM) 825 MW

2. Expected range of annual availability including 71K to 83K scheduled and forced outages

3. Operating load factor:

This unit is expected to operate at maximum capability unless reductions are forced by operating or licensing constraints and such reduction shall be shared proportionately by all participants.

Crystal River Nuclear Plant Unit 3 (continued) PROJECT COST Actual cumulative expenditures excluding first core $ 297 million through December 31, 1974 This is the approximate cost charged to this project work order as of December 31, 1974, including allowance for funds used during construction, but excluding land and fuel. There are other site facilities, such as intake and discharge canals,,roads and railroads, and land, which are shared by Crystal River Unit 3 with other units on the site. The cost of these site facilities is not included in participating ownership, and therefore charges for these facilities will have to be covered by negotiated agreements.

2. Estimated cumulative expenditures through June 30, 1975 $ 350 million This number is the expected cumulative cost of continued construction at the present reduced level and includes allowance for funds used during construction. This number also includes the cost of the first nuclear fuel core.

3. Cost basis for participating ownership at 110K of $ 385 million cumulative cost through June 30, 1975

a. Estimated base cost of available participation $ 38.5 million Estimated additional .cash expenditures (excluding $ 45 million cost of capital) to complete project This is an estimate. of the actual expenditures required after June 30, 1975 to complete the project and excludes allowance for funds used during construction. This estimated additional cost does not include items such as cooling towers, which may be re-quired by future licensing restrictions but which are not presently anticipated.

a. Additional Cost of available participation $ 4.5 million

5. Nuclear Reload Fuel Cost (reload batch)

The building of any reload fuel batch for a nuclear power plant is comprised of several steps commonly referred to as th'e nuclear fuel supply chain which includes uranium supply, conversion, enrich-ment, fabrication and reprocessing. Florida Power Corporation currently holds long term contractual

• commitments for all of the above nuclear fuel supply steps to fulfill the projected requirements of Crystal River Unit II3 at least through 1983.

The estimated annual reload batch cost, in terms of 1975 dollars, averages about $ 11 million. Since all the nuclear fuel contracts are subject to escalation .by recognized industry indices and since the U. S. Government can cause fuel cost variance as a result of the issuance of regulations, this reload fuel cost estimate must be qualified on the basis of the facts known to date.

Crystal River Nuclear Plant Unit 3 (continued) OPERATION MAINTENANCE 5 SERVICE FEES.

l. Estimated fuel cost range Mhile the fuel is bought and paid for in reload batche's, Florida Power Corporation expects the fuel cost to average 2 to 3 mills per kwh.

2. Estimated operation and maintenance expenses other than fuel The operating and maintenance cost other than fuel is estimated to be in the range of 0.5 to 1.0 mills/kwh.

3. Operating service fee Iri addition to the direct operating and maintenance charges associated with this unit, there are numerous management and adminis'trative over-heads associated with the planning, administration, and management relating to the operation of this unit. Agreement on operation service fees will be subject to future negotiation.

4. Fee for supportive station facilities As indicated in the description of project cost, there are numerous station facilities which are not included in the project cost and therefore not covered by the ownership agreement. Future negotiations will be required to agree on a fee to cover the capital cost of support-tive facilities.

Crystal River Nuclear Plant Unit 3 (continued) DELIVERY OF PARTICIPATION POldER Florida Power Corporation offers "come and get it" delivery and makes no offer to negotiate with other parties for delivery of power, acquired through this proposal, beyond its system. For its transmission system, service is available as follows:

1. Transmission Service Resale Rate Schedule T-l, on file with the Federal Power Commission, for delivery of participating shares. Copies are available upon request.

2. Partial Requirements Service Resale Rate Schedule RS-2A, on file <<ith the Federal Power Commission, for capacity and energy in excess of participating share. Copies available upon request.

OPERATING. RESERVE RE UIREHENTS Each participant shall be required to provide the generating capacity to suppor t its participating share as is required by good operating practice in the State of Florida.

PROJECT FACT SHEETS Project: Anclote Fossil Plant Unit 2 THE INFORMATION CONTAINED HEREIN IS THE MOST ACCURATE AVAILABLE TO FLORIDA POWER CORPORATION ON JANUARY 20, 1975. IT IS INTENDED THIS. DATA BE USED AS A GUIDE FOR EVALUATION OF THE OFFERING. HOWEVER, UNDER NO CIRCUM-STANCES SHALL THIS INFORMATION BE CONSIDERED FINAL OR BINDING. Florida Powei" cp4ppAAvspte January 20, 1975

PROJECT: Rncl ote Uni t 2 Participation Available (Total ) 10% PROJECT SCHEDULE

1. Current construction status (% work in place) 35%

The construction status represents the percentage of plant material and equipment in place and does not represent a percentage of the estimated total project cost.

2. Current construction activity Current construction activity at Anclote Unit P2 is limited to the minimum labor forces and material expenses to maintain and protect material and equipment which. have been laid up pending future resump-tion of full force construction activity.

3. Estimated months of full force construction effort to 18 to 20 months complete the project.

4. Estimated date of resumed full force construction Jan. 1976 (with.par ticipation)

5. Expected in-service date (commercial operation) Jul 1977 RATING AND OPERATING FACTORS

l. Expected maximum net generating capability {MW) 515 MM

2. Expected range of annual availability including 81% to 89%

scheduled and forced outages.

3. Operating load factor:

The operating load pattern for this unit shall be subject to an. Operating Agreement by all participants. Any capacity restrictions resulting from operating 'or licensing constraints shall be shared, by all participating owners.

Ancl ote Uni t 2 (continued) PROJECT COST

l. Actual cumulative expenditures through December 31, 1974 $ 47.. 5 million This is the approximate cost charged to this project work order as of December 31, 1974 including allowance for funds used during con-struction. Since this unit shares a number of'acilities provided at the Anclote Plant Site, final ne'gotiations will be required to establish agreement on charges, fees, or lease arrangement to cover the cost of these facilities. This includes such items as land, administration building, machine shop, fuel storage and handling facilities, water storage and handling facilities, turbine room crane, control room, chimmey, and spare parts. This list is not all inclusive but represents the type of plant investment shared by Anclote Unit P2 but not included in the sale price.

2. Estimated cumulative expenditures through June 30, 1975 $ 51 mill ion This number represents the accumulation of additional project costs to cover the maintenance and security of plant materials and equipment, the cost of committed schedule payments on equipment and materials and the accumulation of allowance for funds used for construction through June 30, 1975.

3. Cost basis for participating ownership at 110K $ 56.1 million of cumulative cost through June 30, 1975

a. Estimated base cost of available participation $ 5.61 million

4. Estimated additional cash expenditures (excluding cost of capital) to complete project $ 32 million This is an estimate of the actual construction expenditures, excluding allowance for funds used during construction,,to complete the project.

It does not include the contingencies for additional environmental pro-tection equipment such as cooling towers and precipitators which are not presently anticipated for this project.

a. Additional Cost of available participation $ 3.2 million

Anclote Unit 2 (continued) OPERATION 8 MAINTENANCE '5 SERVICE

1. Estimated fuel cost range Florida Power's existing fuel contracts expire the end of 1977, which means that the projected fuel cost for Anclote P2 is dependent on future oil contracts. On the basis of an estimated $ 15.00 per barrel for low sulfur residual fuel oil, this equates to a.generation fuel cost of 23 mills per kwh. Any anticipated variances from this estimated fuel cost, resulting from either taxes or all'ocation credit would alter this generation cost proportionately.

2. Estimated operation and maintenance expenses other than fuel The operating and maintenance cost other than fuel is estimated to be in the range of .8 to 1.0 mill,s/kwh.

3. Operating service fee In addition to the direct operating and maintenance charges associated with this unit, there are numerous management and administrative over-heads associated with the planning, administration, and management relating to the operation of this unit. Agreement on operating service fees will be subject to future negotiation.

4. Fee for supportive station facilities As indicated in the description of project cost, there are numerous station facilities which are not included in the project cost and therefore not covered by the ownership agreement. Future negotiations will be required to agree on a fee to cover the capital cost of supportive station facilities.

5. Fee for fuel inventory and pipeline delivery from Plant Bartow Oil Terminal facilities Future negotiations will be required to agree on a fee to cover the capital cost of these supportive facilities.

Anclote Unit 2 (continued) DELIVERY OF PARTICIPATION POWER Florida'ower Corporation .offers "come and,get it" delivery,.and makes no offer to negotiate with other parties for delivery of power, acquired through this proposal, beyond its system. For its transmission system, service is available as follows:

1. Transmission Service Resale Rate Schedule T-l, on file with-<he Federal Power Commission, for delivery of participating shares. Copies are available upon request.

2. Partial Requirements Service'Resale'ate Schedule RS-2A, on -file with the Federal Power Commission, for capacity and energy in excess of participating share. Copies available upon request.

OPERATING RESERVE RE UIRENENTS. Each participant shall be required to provide the generating capacity to support its participating share as is required by good operating practice in the State of Florida. 4

Project: DeBar R THF. INFORMATION CONTAINED HEREIN .IS THE HOST ACCURATE AVAILABLETO FLORIDA POtiER CORPORATION ON JANUARY 20, 1975. IT IS INTENDED THIS DATA BE USED AS A GUIDE FOR EVALUATION OF THF. OFFERING. HOWEVER, UNDER NO CIRCUt1-STANCES SHALL THIS INFORt1ATION BE CONSIDERED FINAL OR BINDING. I.r'f~~F)1. ~ ) (~P oh+P CQC. ~~0 Florida Power CPA ~ OA*T>Ore January 2Q1975

PROJECT: De8ar Re enerative Combustion Turbine Plant Participation Avail abl e (Total ) 100K PROJECT STATUS 5 SCHEDULE This project, consisting of six 51.9 MW regenerative combustion turbine generating units, is presently being constructed under a lease agreement wherein the leasor will finance the construction of the project through completion, assume title and own the units upon completion, and lease the units to Florida Power for a period of 25 years. Florida Power is interested in selling al1 or none of this project. The estimated in service date (commercial operation) for the first three units is December 1975, followed by the remaining three units in the first quarter of 1976. RATING AND OPERATING FACTORS I. Expected maximum net generating capabi'lity (NW) per unit 51.9 HW Six unit plant 3ll tlW

2. Expected annual availability including scheduled 68% to 85K and forced outages

3. Operating load factor:

The operating load pattern for this plant shall be subject to an operating agreement by all participants. Any capacity restrictions resulting from operating or licensing constraints shall be shared by all participating owners.

DeBary, . (continued) PROJECT COST

l. Actual cumulative expenditures through December 31, 1974 1.7 million This cost includes allowance for funds used during construction, but excludes land.

2. Estimated cumulative expenditures through June 30, 1975 39. 1 mi 1 l i on Thi s represents the accumul ation of costs thr ough June 30, 1975 including allowance for funds used during construction, to continue construction activity in accordance with our current lease agreement and in-service schedule.

3. Cost basis for total ownership at 1005 of cumulative cost 39.1 million through June 30, 1975

4. Estimated additional cash expenditures (excluding cost of 6.8 million capital) to complete project OPERATION & MAINTENANCE Estimated fuel cost range Me presently have no fuel contracts for these. units. On the basis of $ 16. per barrel fuel oi.l price, we would expect an average of 28 mills/kwh fuel cost.

2. Estimated operation and maintenance expenses other than fuel The operation and maintenance cost on a mills/kwh basis will vary widely on these units according to their use. As Florida Power Corporation has intended to use these units, we are expecting a range of from 2.5 to 4.5 mills/kwh.

3. Operating service fee In the event Florida Power operates these units for the purchaser, in addition to the direct operating and maintenance charges associated with these units, there are numerous management and administrative overheads to be considered'greement on'perating service fees will be subject to future negotiation.

4. Fee for supportive site facilities Future negotiations will be required to agree on a fee to cover the capital cost of supportive land and facilities not included in the ownership agreement.

DeBary (continued) DELIVERY OF PARTICIPATION POWER Florida Power'orporation offers "come and get it" delivery and makes no offer to negotiate with other parties for delivery of power, acquired through this proposal, beyond its system. For its transmission system, service is available as follows:

1. Transmission Service Resale Rate Schedule T-l, on file with the Federal Power Commission, for delivery of participating shares. Copies are available upon request.

2. Partial Requirements Service Resale Rate Schedule RS-2A-, on file with the Federal Power Commission, for capacity and energy in excess of participating share. Copies available upon request.

OPERATING RESERVE RE UIREt4ENTS Each participant shall be required to provide the generating capacity to support its participating share as is required by good operating 'practice in the State of Florida.

PROJECT FACT SIHIE ETS Project: 1980's Nuc1ear Units 1 and 2 THE INFORI'IATION CONTAINED HEREIN IS THE HOST ACCURATE AVAILABLE TO FLORIDA POWER CORPORATION ON JANUARY 20, 1975. IT IS INTENDED THIS DATA BE USED AS A GUIDE FOR EVALUATION OF THE OFFERING. HO'WEVER, UNDER NO CIRCUM-STANCES SHALL THIS INFORMATION BE CONSIDERED FINAL OR BINDING. FkN'fd8 Power Q O 4P 0 II A f I 0 N January 20, 1975

PROJECT: 1980's Nuclear Units 1 and 2 Participation Available (Total) 40Ã of Each Unit PROJECT DESCRIPTION 1'. Nuclear Steam Supply System (NSSS)

a. Pressurized Water Reactor Combustion Engineering's Standard Systems 80

b. Base Design Capability Reactor Thermal Power Rating - 3817 MWt Expected Electrical Output - 1316 MWe

c. Ultimate Capability (Subject to AEC licensing and design provision)

Reactor Thermal Power Rating -. .4100 MWt Expected Electrical Output - 1366 MWe

d. Capable of using any combination of uranium or plutonium fuel

e. Able to use CE's generic Preliminary Safety

               , Analysis   Report for plant licensing

2. Replication Concept

a. Within practical limits, this concept duplicates a unit that has been or is in the process of being licensed by the AEC

b. The AEC encourages the Replication Concept

c. Savings available through replication include:

             ~

licensing schedule (time and cost savings) engineering cost savings construction cost savings

d. Florida Power is actively pursuing the Replication Concept

1980's Nuclear Units 1 and 2 (continued) SITING

l. East of Orlando site in Orange County is prime selection.

2. Alternate site is on Suwannee River in Levy County.

3. Comprehensive site evaluation activities started in 1972, and covered over 200 site locations

4. Site procurement is presently pending.

SCHEDULE

1. Complete PSAR and Environmental Report July 1977

2. Submit construction permit application to AEC Aug 1977

3. Submit site certification application to State of Fla. Aug 1977

4. Receive Construction Permit Oct 1978

5. Load Fuel (Unit 1) Mar 1984

6. Commercial Operation (Unit 1) Sep 1984

7. Load Fuel (Unit 2) Mar 1987

8. Commercial Operation (Unit 2) Sep 1987 PROJECT STATUS

1. Have contract with Combustion Engineering for Nuclear Steam Supply System (standard systems 80)

2. Have contract with AEC for 30-year fuel enrichment on first unit

3. In final stages of fuel contract with CE covering uranium supply and fabrication of the initial core plus ten reloads on each unit

4. Pursuing an agreement with City of Orlando and Orange County officials on the use of sewage effluent for plant make up water.

5. Pursuing the replication concept

6. Have collected two seasons of biological data from east of Orlando site (summer and fall) on one season from the Suwannee River site (summer).

7. Have established meteorological data collection stations and are taking data at both east of Orlando and Suwannee River sites.

1980's Nuclear Units 1 and 2 (continued) PROJECT COST

1. Actual expenditures through Oecember 31, 1974 Unit 1 - 2.6 million Unit 2 - $ 0.2 million These costs primarily include engineering, siting, licensing, and environmental research activities related to the 1980's nuclear project, and include the allowance for funds used during construc-tion charges.

2. Estimated cumulative expenditures through June 30, 1975 Unit 1 - $ 4.2 million Unit 2 - $ 0.4 million This represents the accumulation"of additional limited engineering, environmental and licensing activity, and also includes a $ 1.4 million nuclear fuel enrichment pre-payment to the AEC.

3. Cost basis for par ticipating ownership at 110% of cumulative costs through June 30, 1975 Unit 1 - $ 4.62 million Unit 2 - $ 0.44 million

a. Estimated base cost of available participation Unit - 1 $ 1.848 million Unit 2 $ 0.176 million

4. Estimated additional cash expenditures to complete See Table I project Table I is an estimate of Project costs and cash flow by each year from 1974 through the completion of the project. The table includes in a separate column the estimated allowance for funds used during construction based on Florida Power's AFC charge rate of 10.5%.

These cost estimates reflect an average annual inflation rate of 7 1/3% in construction costs over the duration of the project.

a. Additional cost of available participation The 40% available participation would require 40% of the estimated direct costs from June 30, 1975 through the completion of the project as shown on Table I.

b. Terms of payment Future payments for m'ajor components will be required in advance of vendor billing and will be based on an annual forecast schedule updated as required. Other ongoing expenditures will be billed on actual costs.

c. Construction t1anagement Fee Future negotiations will develop and define the costs of project management for these units'.

1980's Nuclear Units 1 and 2 (continued) PROJECT COST (continued)

5. Nuclear Reload Fuel Cost (reload batch)

The building of any reload fuel batch for a- nuclear power plant is comprised of several steps commonly referred to as the nuclear fuel supply chain which includes uranium supply, conversion, enrich-ment, fabrication and reprocessing. Florida Power Corporation currently is'ompleting long term contracts for the most cricital of the above nuclear. fuel sitpply steps to fulfill the projected requirements of the 1980's nuclear project Unit Pl at least through 1995, and all but enrichment on Unit 2 through the year 1998. The estimated annual reload batch cost, in terms of 1975 dollars, averages about $ 20 million. Since all the nuclear fuel contracts are subject to escalation by recognized government indices and since the U. S. Government can cause fuel cost variance as a result of the issuance of regulations, this reload fuel cost estimate must be

   'qualified   on the basis of the facts known to date.

OPERATION MAINTENANCE 5 SERVICE FEES Estimated fuel cost range llhile the fuel is bought and paid for in reload batchs, Florida Power Corporation expects the fuel cost to average in the range of 2', to 3~ mills/kwh,

2. Estimated operation and maintenance expenses other than fuel The operating and maintenance cost other than fuel is estimated to be in the range of 0.5 to 1.0 mills/kwh, based on 1975 dollars.

Inflation in labor and material at 6A a year will result in an estimated range of .9 to 1.8 mills/kwh in 1985.

3. Operating service fee In addition to the direct operating and maintenance charges associated with this unit, there are numerous management and administrative over-heads associated with the planning, administration, and management relating to the operation of this unit. Agreement on operation service fees will be subject to future negotiation.

4, Fee for supportive station facilities Future negotiations will be required to agree on a'ee to cover the capital cost of supportive facilities not included in the ownership agreement;

TABLE I 1980's CASING NUCLEAR PROJECT, PROJECT COST 8 FLOW - INCLUDING FIRST CORE (In !1il 1 ion Dollars) UNIT 1 UNIT 2 Direct" erect ota YEAR Costs AFC Costs Costs AFC Costs 1974 2.5 2.6 .2 0 .2 1975 2.5 .5 3.0 .5

                                                                     .4'.7 1976           6.0          .8               6.8                                            .2 1977           9.7         1.7              11.4                               .2         1.9 1978           16.3         3.0              19.3                1.5            .3         1.8 1979           98. 2        9.0             107. 2               6.4            .7         7.1 1980         206.6        34.5              241.1                9.9          1.6         11.5 1981         263.4        49.7              313.1               15.2          2.9         18.1 1982  .      196.8        73.9              270.7              102.7          9.1        111.8 1983         101. 1      89. 5            190.6              247. 4        27. 5       274.9 1984          15. 9       71.7               87.6              293.9         37.0        330.9 1985                                                           252.3         84.6        336.9 1986                                                           117.6        104.0        221.6 1987                                                            17.1         83  3       100.4 Total Costs     919.0       334.4             1253.4            1066.4         351.4       1417.8
  $ /kw    $ 700/kw     $ 250/kw        $ 950/kw               $ 810/kw     $ 270/kw    $ 1080/kw NOTE:    This estimate of project cost and cash flow reflects an assumed 7 1/31 composite annual escalation rate in the cost of construction material, equipment and labor.

Allowance for funds used during construction (AFC) was based on a 1$ ;X AFC rate.

                    $ /kw  costs based on 1316          HWe s

1980'c Nuclear Units 1 and 2 (continued) OELIVERY OF PARTICIPATION POWER Florida Power Corporation offers "come and get it" delivery and makes no offer to negotiate with other parties for delivery of power, acquired through this proposal, beyond its system. For its transmission system, service is available as follows:

1. Transmission Service Resale Rate Schedule T-1, on file with the Federal Power Commission, for delivery of participating shares. Copies are available upon request.

2. Partial Requirements Service Resale Rate Schedule RS-2A, on file with the Federal Power Commission, for capacity and energy in excess of participating share. Copies available upon request.

OPERATING RESERVE RE UIREHENTS Each participant shall be required to provide the generating capacity to support its participating share as .is required by good operating practice in the State of Florida. R. W. BECK AND ASSOCIATES ANALVTICALAND CONSULTINC ENGINEERS 9IANNII(G SEATTLE, LVASHINGTON DESIGN DENVER, COLORADO 1SIO EAST COLONIAL DRIVE RATES PHOENIX. ARIZONA posT orrIcE Sox 6811 ANALYSES ORLANDO, r LORIDA EVA'OVATIONS ORLANDO. ELORIDA n803 COLUMBUS. NEBRASKA A'AMACEMENT TELEPIIONE 30S 896.49II LVELLESLEY, AIASSACIIL'SEllS INDIANAPOLIS,:NDIANA DLE No. ~ FF- 51 01- EP 2- MA March 10, 1975 Honorable Mayor and Members of City Council City of Ocala Ocala, Florida 32670 Gcntlcme n: Subj ect,: Participation in Florida Power Corporation's Cr stal River P<3 and 1980's Nuclear Units Pursuant to your request we are enclosing our analysis and recommendations with respect to participation by the City in the Crystal River /,'3 unit and the 1980's nuclear units presently under construction or planned by 1 lorida Power Corporation. Crystal River Unit II3 is an 825 mw unit presently scheduled for commercial ope3 ation Sept:ember, 1976. The 1980's nuclear projects consist of two 1316 mw units, the first of which will bc placed i>>to commercial operation in September, 1984, and thc second in Sept:ember, 1987. As a result of tlrc meeting on January 8, 1975 in St. Petersburg, Florida Power Corporation has offered a 10'/0 owrlership share in thc Crystal River Unit //3 and a.40% ownership shax e in each of the 1980's units to all of the electric systems in the St,atc of 1 lorida, public a>>d private. XVc have prepared an analysis of thc value to the Cit:y of participa-tion in a joint owncrslrip arrangement wit)1 L'ach of thc nuclear units. A comp'arison was made between the alternative. of purchasing thc total power xcqrrircmcnts via thc foll requirements rate a>>d th<<alt<<rnativc ol'urchasing rcquircmc>>ts with thc diffcrc>>ce composed of thc nuclear units irT wlrich the City participates. Tlrc cost associated wit)r participation includes not only thc partial rcquiremcr>ts rates but whccli>>g rates, losses and additional

reserve requirements.'n its invitation to bid, Florida Power Corporation set forth certain criteria which each of the potential bidders is required to follow. Of particular interest are the following:

l. Allocation Formula In the event that any one project is oversubscribed by the com-bined bidders, the total number of megawatts bid will be divided into the amount oEfcred, and that ratio woul<1 be applied to the bid to determine the actual amount to be received Erom any such project.

2, Ex res sion of Interest All bidders must submit an Expression oE Interest by March 17, 1975, which would include the amount of megawatts in percent of total unit size Eor each project and the minimum amount oE megawatts in percent of total unit size. Thc bid Eorm (attached) provides, among other things, that "No Expression of Interest shall be binding until enabling, legislation favorable to joint ownership is enacted by the Florida Legislature as permitted by Section 10d of Article VII of th'e Constitution of the State of Florida. " Each Expression of Interest to be submitted by March 17, 1975, is to be accompanied by a resolution. of thc governing body. A draft oE a recommended Eorm of the resolution was distributed at the meeting oE the Twelve Cities Group on March 7, 1975, and is available from Mr. Charles Shrevc of Ocala.'. Contract Negotiations Subsequent to March 17 ant prior to July 15, 1975, thc Company expects to negotiate and Einalizc participation an<1 operation agrcemcnts with all thc prospective participants.

4. Closin and Contract Execution The Company's present schedule is that on July 15, 1975, all participating parties would sign forrnal contracts, and parlicipa(ion n>oney from thc respective participants would, bc du<. at that tini<.. (At i ni< ting<

I with the Company, on February 21, 1975, the Company indicated that it would attempt to arrange, iE possible and if required, for a sixty to ninety day br'idging period to the time when payment of funds is required.' Recommended Criteria Eor Determining thc Amount oE the Bid on Each Project The criterion applied to Crystal River >3 participation was based upon"a bid equivalent to 100% of the" City's 1977 peak load up to

82. 5 mw. In the case'f the City, the bid can be justified on the basis of obtaining suEficient amounts oE nuclear capacity to satisfy the City's short and long term bulk power supply requirements and'he ability of the City to sell any surplus capacity on a year-to-year basis to other utilities in the State. From a practical standpoint, it is our judgment ttiat,.the Crystal River 93 participation will be overbid by some 870%-.1000%. Based upo'n the Company's allocation formula, if a bid equivalent to 100% of the City' 1977.peak load were submitted, thc City could expect to receive approxi-mately 9. 9% of that bid.

The criteria applied to participation in the 1984 and 1987 units were to bid an amount equal to, 50% of the 1987 projected peak demand reduced by the amount of capacity expected fx'om Crystal River ~3 with that value divided equally between th'e two units. Again, however, from a practical standpoint and based upon our determination that the } 980's units will also be overbid by some 450% to 460%, wc would expect the City to receive approximately 22% of its'id Eor each of the 1980's nuclear units. If, however, the City were fortunate enough to receive the entire amount of its bid, it could utilize that full amount by those dates in serving its own customers. Participation in thc Crystal River !!3 unit and thc 1980's units can bc Iustificd iE thc nuclear participation custs plus partial rcquircnicnts altci native costs ar(. lower than the full r(iquircm(nts alternative costs. Based on thc information provi<lcd by Florida Power Corporation on the thr(.<<nuclear units'irc(t cost;, a b(ind cost: was d( vclopcd for each unit. Th<>> "Hon<l Cost Dcvclopment" calculations for ( acti unit are attache(i. Th(. initia) bond rcs(rve fu)i(l; worl(ing capital: fiscal, I( (,al an(l a(hiiinistrativc

expenses; and bond discount totaled 13. 56% of the total bond costs and werc added to thc total construction cost which included interest during construc-tion at 7%. Assumptions for overhead and maintenance costs, interim replacements, operating contingencies, and reserves werc made based on currently available data. This information was used to develop the 'est annual fixed charge rate and can bc identified by the unit name and the title "Fixed Charge Rate and Pertinent Data" which is attached for each unit. A computer program was 'developed to simulate the full require-ments rate on a monthly-basis and to tabulate thc costs on an annual basis. This program also simulated the participation in Florida Power's nuclear units with supplemental nuclear power and partial reqoircnicnts. The cost differential and percent savings between these two alternatives werc calculated for each year from 1976 through l990 and arc attached. Also attached is an analysis of the savings that would result from participation in either the Crystal River "3 unit, the Anclote II2 unit:, the 1984 nuclear unit, or the 1987 nuclear unit: in lieu of thc Florida Power Corporation purchased power cost delivered at 115 kv. ~sum mar The Fixed Charge Rate and Pertinent Data sheets contain the amount of capacity the City might reasonably expect to receive from each nuclear unit. as well as the total bond cost Eor.the amounts expected and the total down payment duc July 15, 1975. In addition, thc annual savings are calculated and printed on the attached computer printout:. Also attached is an "Expression of Interest" Eorm Eor the City indicating thc amount in percent of the recommended bid for the Crystal River /f 3 and each of the 1980's units. The recommended minimum amount to be bid is also indicated, which is 2;ero. It should be noted that:

1. Crystal River f/3 is 95% complctc which elinai>>ates many risks and unknowns in construction costs associated with,large>>oclcar units.

2. The 1980's oiiits are in the carly st;<yes of <1<v< lopment and all risks associated with thcrn will bc shared by all the participants.

3. Each kilowatt-hour of energy thc City obtains fro~u these nuclear gcncratiia< units is cstiniatcd to cost frown -l0'".i to 59".'r less than ynor allcrna-tivc cost oE purchase power from Florida Power Corporation, as sh<>wn on thc attached table entitled "Twelve Cities Estimated Savin's Doe to l. 0 M4V Participation in Crystal River !:.3, 198.l Ynel<'ar (toit, iH7 Yo< 1<<1 Unit an<i 1

Anclot<. !i2. "

r

4. It would be impossible Eor the City to secure an amount oE low cost nuclear capacity and energy in the amount the City is expected to receive except through the participation plan offered by Florida Power Corporation or through some joint cooperative effort with other electric systems having suEEicient load to justify building a large nuclear unit.

Conclusions and Recommendations Based upon the results of the studies and analyses set forth in this report:

l. It is our opinion that substantial power savings can be achieved by the City through participation on a joint ownership basis in the Crystal River //3 and the 1980's nuclear units presently under construction or planned by Florida Power Corporation.

2. It is recommended that the City submit bids to Florida Power Corporation for the Crystal River ~43 and'he 1980's units on the "Expression of Interest" Eorms supplied by the Company and attached to this report in the amount indicated.

3. It is recommended that the City not participate and, hence, not submit a bid on the DcBary combustion turbine units.

4. At the meeting of March 7, 1975, the membership oE the Twelve Cities Group decided to recommend against participation and submittal oE bids on the Anclotc j/2 unit.

Respectfully submitted,

I'LOIIIDA I/UNICIPAL ASSOCIATION CITY OI'CALA AlhIUAL 0<I!>"I'll I)UHL'll I'(Ill I' II'IASI: CASI (I)OUI) IH'I'l!IIES)'f IIATL) AT 7.0>>) 19/6 197/ 1970 1979 19')0 1901 1982 SYSTEM( LOAD 105. 322 115.054 127 ~ 439 140.103 152.000 166.552 131 541 4/3121. 2 520433.3 5724 /6.6 629/P4. 3 606399. 4 740175.4 815511. 2 FLORIDA IIEOUIIIEh(EHTS PUIICIIASE

 -I'll                                105 322          I I5  854          127.43'9        140. 103         152.000       16)6. 552   181 ~
 -hUiII                             473121.2         520433.3           572476+6                 ~ 3    .606399 ~ 4   . 7401 15 ~ 4 0155    541'29724 I I         .2
 -I'/lii/hIII                           374~3              374.3            374'             374 3           3'l4 3         374.3       374 ~ 3 TOTAL CUSf OF
   . PUIICIIASE-S (000)                                  5903. 4                          22267. 9 13910. 2         I                  10623. 6                        251377. 9      29964. 9    34506+ 5 TOTAL AHHUAL COST OF PU)IER
 -S (000)                             13910. 2         15903 ~ 4          18623.6         22267.9         25077.9        29964.9     34586.5 "h(I LLS/KI'll{                       29  '0             30.71            32. 53           35. 36          37. 70         40. 05      42. 41 1983           1904                         1906              1907              1900            1909            990 197 F 000     215+609      232 '45         251. 500          271.706            293.443         316 918        342.272 080907o2       9613900.U   1046421.5       1130135 '        1220546.1          1310190.0        1423644.9      1537536. 5 197 F 000     215. 6139    232 '45         251.500           271 706            293'43          316).910       342.272 08<390  /. 2   96090l3 ~ 0 1046421.5       1130135.3        1220546.1          13181 90.0       1423644.9      1537536.5 374. 3        3/4. 3      374  .3          3'14 3             374 ~ 3          374 ~ 3         314 ~ 3        374.3 39807o0       45697. 1      114 9        50362 5           57342    '         59860.5         66703.7        l4279.3 39807.0       45691,7      44114,9         50362.5           57342.4            59060.5         66703  '       74279.3 44 78         47. 16      42. 16           44 56              46. 90           45 '1           46.05          48.31

1<I.(lit I 3)A Quill(:Il>AL ASS()CI ATI(IH (:I I'Y <II> <I(.'Al.h A(i<lUAI. (:Uli'I'IF I<3) (Lit I'()<I Al.i'<:"!t<lhl'IVI! I ( 13< I'll) I I I'I: <" I'I'(AI'I AT / 0'<<() IV// I 9/d I 9/9 I 9"0 IV <I I 9.32 SYSTL<4 L(IAI)

   -<<<et                               105<<322          115.0~n                 127.4 Jv              I no. I '3:I       I a7. <300      166. 552       I J I ~ 541
   -i4 ill                           4/3121   '      520433.3                 5 /2476. 6           629 /24, J          6156>399 <<4      7401'15. 4    015511 ~ 2 ltUCLL>AIt      PAIII'ICIPATIOtt
   -<<lit                                                   3. 1.30                l3 ~ 1.30             0.                  <0. 10<3      8<< I:30          0 ~ 100.
   -Ii.'all                                           ii73<'I     .b            57301 I (3:>

5 / 30 I . 5 57301.5 b73<31 ~ 5 5/3JI ~ 5 FIXLU COSTS

       -S/Klt                                              12. I I                  72.11                 72. I I           /2. I I     72.11            72. I I
       -0(000)                                             5vD ~ 4                  5VD. 4                5<so. n             590 '         5vo ~ 4          590<<4 VAltI A3LL'OSTS
       -;.ll LLS/Iii'llI
       -S (OOD)
                                          )   50             2 ~ 57                   7. 65                2 ~ 13               2,01         2+UV              2.98 147. 5                    152. t               156.7               161   ~ 2     165<<(3           I 71.0 I'lli>i;L I tlu
       -S/(s'                             5 ~ 2V             5. 61                    5.95                 6. 31               6. 69         7 F 09            7.52
       -s(ooo)                                               45 '                     40.7                 51+7                 54 ~ 8       5<3  ~ I          61 '

TUI'A'L CUSl'F itUCLI Alt-S (OOD) /03. 0 191.2 /V0.0 <306 ~ 4 814 ~ 3 023 ~ 0 I Loit ll)A ltL>OUIIIElIEIITS PUi(CIIASF

     <<III                             105. 322         109.140                  120. /25              1 33.46V           146,006         159<<1330      174. 027 t.II(II                         n7312 1.2       465920.9                517964<.2             575211      ~  9    631001.0         693663 ~ 0    760998<<8
   -<<litlI/tf<'at                        3/4 ~ 3           355 0                    357                   35V . I           360.5         361   ~ 6        3!>2 ~ 7 TOTAL CUSf OF P()itCIIAS<>-S (000)            13VID.2         14060<<2                  1741     /.0          20924     '       24424 9          28401,0       32913,4 TOTAL AflllUAL COST UF PU.<(:<t
   -S(000)                             13910. 2        15644.0                  10209.0               21723.7           25231.3          29216.1       33736      '
  .-l< I LLS/l(iiil                      29.40             30+06                    31,81                 34 ~ 50

• 36<<76 39 ~ 05 41.37 Po'ii=11 CO!i'I'AV It((iS TOTAL A:lllUAL COST (IF PU:I<>ft FU<( 'OIE UASL'A!ih

       -S(000)                        13910. 2         15903.4                  10623<< 6>             22267 ~ 9         2'i07 1. V       29964.9       34586. 5
       .:.I I.LS/: 'sil                 29.40             30, '/ I                 32 ~ 53               35. 36              37. /0        40, 0 ">         47..41 Ail<IUAL SA'/lll(iS '::
       -S(OOD)                                             339.4                    414.6                 544.2               646 6         /nl) ~ )3        850<<l
        -til LLS/(w'e (I I                                      .6b                      ./2                                      .91 SA VI <I(iS                                     '.1                         2.7.
                                                                                                             ~ 136
                                                                                                             ).4                  2.5 I ~ ()0          1.04 2 '

19711-90 I >)(53 IV 5:I I )(5> I V(3(i I VU I I ')UU IVUV 1990 T5)YAL8 197 ~ ')UO 215.6) 3V 232.V45 251.5l50 271 ~ /06 293 ~ 443 316 V IU 342 ~ 272 8(589O7.2 . 96UVO I.J 1046421. > 1130135. 3 1220546.1 131U I VO.O 14236>44.9 1537536. 5 13980131.8 C 8.18J )I, I 18 22.190 22 ~ I ')0 .22. I ')0 36 ~ 5532 36) ~ 582 36) ~ (5(J2 36 582 57381 ' 573:31 ~ a 15'JJO703 15550'/ 5 I 5>0501 256366 ~ 7 256366. I 256366m I 72 ~ 5V0,4 11 72.11 aVO.4

                                         ')1.20 2L)23 ~      I VI 2o23.7
                                                                ~ 2O           VI 2023il
                                                                                   . 20      102     '9 374>i. 6).

102 39 3745.6 102.39 3745,6 3.0/ F 16 3+ 25 3 35 3. 45 ~ 3. 55 3. 66 3. 77 1/G ~ 2 IU1.3 5o5.4 521 ~ 0 536. 5 910. I 93(3. 3 966. 5 7 ~ 97 U.45 U ~ VG V. 50 10. 07 I 0 ~ 67 - 11.31 I I . 99 6' 6) ~ 2 I ')8 ~ 8 210.6 223.5 390.3 413.7 438. 6 83I>9 84 J.V 2727.9 2755. 5 2783.7 5046 0 5097+6 5150 7 IVI '66 20U.') 79 214 /4iV 233. 3(34 2'53. 5 I 0 263 i 446 286.921 312.275 8343V4 i J 9143() ).4 UVIY>(39~ 4> 982403 ' 1072814.0 10746)4>1.6 1180096.5 !29395)8. I 363 ~ 7 364i ~ 6) 348.7 350.8 352 ' 339 ~ 9 342.7 345 3 38023.8 43804,3 3V/78.5 4!)72 I. 5 57408.6 52208.4 5@802.3 66128.5 38855 ' 44645.2 42506.4 4(34J3.0 55192 ' 57254. 4 63899 ' 71279.2 5797(36>8 43, 71 46 'U 4o.c>2 42.90 4i5. 22 43.43 44 'O 46 36 ~ 04 3980/.0 4569'I. I 44114.V 50362 ' 5/34i2. 'I 59(360 5 66703.7 ~ 74i279, 3 599382.4 44 7J 4 /. I(i 42. I <> 44. (i6 G. ()(3 45.il I 46. 8(i 4(3 ~ 31 04 951 ~ 3 IL)52 ~ ) IFOU.5 1 87().>i 2150. I 2606).l 2 03.51 3000. I IV"))5 6 I.O/ I . L).5 1.51 I . 6>(') I . /6 I . 9'3 I ~ V'I I.V5 2~4 >

                             ~ J              3.6                                   3,'I                               4  '               4~0

                                                                              .TW ELVE CITI IS ESTIMATED SAVINGS DUE TO 1.0 MW PAltTICIPATION IN CRYSTAI. RIVFR 53i i984 NUCi.EAR tiNI r i981 Ntlri.EAt<<INITANn ANCI 1977                           1985                       1988                      1990 MW                                     l. 0                           I.O  =                    1,0                        1.0 M Wit                                 7008                           1008                       7008                      7008 Units                         Units                       Units                    Unl t s            5 I. Florida Power Purchased Power Cost 4 Wholesale Rate - 115 KV Delivery Demand Cost     - 5/KW/YR                     51. 27                        61. 22                      66. 90                   70. 97
                             -$                                            51. Z7                         61. 22                      66. 90                    70. 97 Energy Cost     - htills/KWH                  20. 61                        29. 37                      31, 43                   33. 18
                             -$                                           144. 43                       205. 82                     220. 26                  234. 63 Total Cost      .5                                           195. 70                       267, 04                     287. 16                   305. 60
                             - hillis/KWH                  27. 93                        38. 10                      40. 97                   43. 60 II. Crystal River    53 Cost Delivered 9 115 KV Fixed Cost      - $ /Ktv/YR                   7Z. 11                        72. 11                    72. 11                  72. 11
                             -$                                            72. I I                        7Z. 11                      7Z. 11

3. 67 12 11 Varlablc Cost - Mi]ls/KWH 2. 50 3'. 17 3. 46

                             -$                                            17. 52

• 2Z. 21 24. 25 25. 72 tyhec ling -$ 5. 67 9. 04 10. 77 12. IO Reserves -$ 6. 66 7. 96'.

8. 70 9. 23 Losses -$ 3. 44 17 4. 56 4. 83 Total Cost -$ 105. 40 115. 49 120. 39 123. 99

                             - hiilis/KWH                  15. 04                        16. 48                      17. 18                   17. 69 Savings         - $ /KW                                       90, 30                        151. 55                    166.77                    181. 61
                             - hillis/KWH                  12. 99                        2 le 62                     23. 19                   25. 90

46. I /i 56. 8/i 58. 09i 59. 4%i III. 1984 Nuclear Unit Cost Delivered 9 115 KV Fixed Cost - $ /KW/YR 104. 84 104. S4 104. 84

                             -$                                                                          104. 84                          84                  104. 84 Variable Cost    - Mills/KW H                                                 3. 17                       3. 46                    3. 67
                              -$                                                                          22. 21                      24. 25                    25 72 Whccllng         -$                                                                            5. 67                      5. 67                     5. 67 Reserves         -$                                                                           7. 96                 5'04.8. 70                      9. 23 Losses           -$                                                                           4. 17                       4. 56                     4. S3 Total. Cost      -$                                                                         144. 85                     148. 02                  150. 29
                              - hHlls/KIVH                                               20. 67                      21. 12                   21. 82 Savings          - $ /KIV                                                                   122. 12                     139. 14                  156. 72 Mills/KWH                                                 17.'3                       19. 85                  21. 78

45. iri 48. 49. 95rii IV. IcS7 Nuclear Unit Cost Delivered g 115 KV Fixed Cost 5/KW/YR 121 53 121. 53

                              -5                                                                                                    121. 53                   I ZI. 53 Variable Cost    - hillis/KWH                                                                             3. 46                    3. 67
                              -$                                                                                                      24. 25                    24. 25 Wheeling         -$                                                                                                      10. 77                    12. 10 Rcservcs         -$                                                                                                       8. 10                     9. 23 Losses           -$                                                                                                       4. 56                     4. 83 Total Cost       -5                                                                                                     169. 81                  I il. 94
                              - hIIIIs/KWH                                                                           24. 23                   24. 53
                                $ /Kty                                                                                               117. 35                  133. 66 Savings
                              - hiills/KWH                                                                            16. 74                   19. 07

40. 9>>i 43 iri V. Anclote - Fossil Unit Delivered 9 115 KV Fixed Cost - $ /KIY/YR 28. 34 ZS. 34 28. 34 28. 34

                              -$                                           28. 34                         28. 34                      2S. 34

32. 64

28. 34 Variable Cost - hlills/KWII 20. 04 28.64 30. 64

                              -$                                          140. 44                        200. 71                    214. '73                  228. 14 Wheeling         -$                                            5. 67                           9r 04                     IO. 71                    12. 10

c. 23 Reserves -$ 6. 66 7. 96 8. 70 Losses -$ 9. 58 I 3. 10 ~ 14. 09 4. 83 Total Cost -$ 190. 69 259 ~ I5 ?16. 63 283. Z4 hillis/KWH 27, 21 36, 98 39. 47 40. 42 Savings $ /Kty 5. 01 7. 89 IO. 53 22. 36 hi 1 II s / K W I I ~ 72 I. I 2 I. 50 3. IS 2 6">> 3. Ori 3~ 7Vi 7, 3ri

ASSUMED BIDDING ON CRYSTAL RIVER II3 825 MW

                              +ID                     BID             EXPECTED SYSTEM                  MW                                           MW Co- ops                       82. 500                10. 000              8. 188 O.U. C.                       82. 500                1 0. 000              8. 188 Gainesville                   82. 500                10. 000              8. 188 Tampa/Lakeland               82. 500                '10. 000              8. 188 Starke                         8. 700                  l. 054                . 863 Tallahas s e e               82. 500            ~

10. 000 8. 188 Sebring 27. 400 3. 321 2. 719 Subtotal 448. 600 54. 375 44. 522 Twelve Cities Ala chua 5. 305 0. 643 . 527 Bar tow 36. 920 4. 475 3. 664 Bushnell 2. 373 0. 288 . 236 Chattahoo chee 5. 064 0. 614 . 503 Fort Meade 6; 823 0. 827 . 677 Lake Helen 2. 612 0. 317 . 259 Leesburg 50. 159 6. 080 4. 978 Mount Dora 13. 612 1. 650 1. 351 Newberry 2. 36 0. 286 . 234 Ocala 82. 500 10. 000 8. 188 Quincy 22. 624 2. 742 2. 245 Williston 3. 214 0. 389 . 319 Subtotal 233. 566 28. 311 23. 181 Homestead 51. 100 6. 194 5. 071 Kissimmee 48. 500 5. 879 4. 813 St. Cloud 15. 200 1. 842 l. 509 New Smyrna Beach 34. 300 ~

4.159 3. 404 Subtotal 149. 100 18. 072 14. 780 TOTAL 831. 266 100. 758 82. 500 Each bidder would expect to receive 82 5 9. 9% oE Bid Amount. 831. 266

                                            'I ASSUMED BIDDING ON 1984 NUCLEAR UNIT 1316 MW BID               BID                  EXPECTED SYSTEM                  MW              ~0                        MW Co-ops                       526. 40          40. 000                115. 473 Tampa                        526. 40          40. 000                115. 473 Lakeland                     250. 00          18. 997                 54. 841 O.U. C;                      s26. 4o          40. 000                115. 473

, Gainesville 130. 00 9. 878 28. 517 Tallaha s see 200. 00 15. 197 43. 872 Sebring 16. oo l. 216 3. 510 Starke 4. 00 0. 304 0. 877 Horn e s te ad 25. 00 l. 900 5. 484 Kissimmee 25. 00 1. 900 5. 484 St. Cloud 7. 50 0. 599 l. 645 New Smyrna Beach 18. 00 l. 368 3. 948 Subtotal 2254. 70 171. 359 494. 597 Twelve Cities Ala chua 2. 85 0. 216 o. 62s Bartow 19. 81 1. 505 4. 345 Bushnell l. 27 0. 096 0. 279 Cha ttahooche e 2. 72 0. 207 0. 597 Fort Meade 3. 66 0. 278 0. 803 Lake Helen l. 40 o. 1 o6 0. 307 Leesburg 26. 98 2. 050 5. 918 Mount Dora Newberry Ocala

                               '.7. 31 27

63. 83

0. 555

0. 096 4, 850

l. 603

0. 279

14. 002 Quincy 12. 14 0. 922 2. 663 Williston l. 73 1, 314 0. 379 Subtotal 144. 97 12. 195 31. 800 TOTAL 2399. 67 183. 554 526. 400 Each bidder would expect to receive approximately 22",'o of Bid Amount.

ASSUMED BIDDING ON

                          ~ 1987 NUCLEAR UNIT 1316 MW BID            BID              EXPECT ED SYSTEM                  MW               '10                MW Co-ops                        526. 40       40. 000             118. 688 Tampa                         526. 40       40. 000             118. 688 Lakeland                      250. 00       18. 997              56. 368 O. U. C.                      526. 40       40. 000             118. 688 Gaine s ville                  65. 00        4. 939              14. 655 Ta lla ha s s e e             200. 00       15. 197              45. 094 Sebring                        16. 00         l. 216              3. 607 Starke                          4. 00        0. 304               0. 902 Home stead                     25. 00         1. 900              5. 637 Kissimmee                      25. 00         1. 900              5. 637 St. Cloud                       7. 50        0. 699               l. 691 New Smyrna Beach               18. 00         1. 368              4. 058 Subtotal               2189. 70     '66. 520              493. 713 Twelve Cities Ala chua                        2. 85         0. 216               0. 643 Bartow                         19. 81         1. 505               4. 466 Bu shnell                       1. 27         0. 096               0. 286 Chattahoochee                   2. 72         0. 207               0. 613 Fort Meade                      3. 66         0. 278               0. 825 Lake 'Helen                     l. 40         0. 106               0. 316 Leesburg                       26. 98         2. 050               6. 083 Mount Dora                      7. 31         0. 555               l. 648 Newberry                         l. 27        0. 096               0. 286 Ocala                          63. 83         4. 850              l4. 392 Quincy                         12. 14         0, 922               2. 737 Williston                       l. 73         l. 31-1              0. 390 Subtotal                144. 97        12. 195              32, 685 TOTAL                        2334. 67       178. 715             526.400 Each bidder would expect to receive approximately 22. 0",0 of Bid Aniount.

0

CRYSTAL RIVER UNIT i'I3

82. 5 MW Offered BOND COST DEVELOPMENT Construction Cost Initial Cost $ 38. 50 Million IDC on $ 38. 5 Million 7% 3. 37 Million Additional Cost 4, 50 Million IDC on $ 4. 5 Million 5 7% 0, ) 6 Million

                                           $ 46. 53  Million or $

564/K3V'ond Cost Bond Reserve Fund 8. 06% of Total Bond Cost Renewal and Replacement Fund 0, 50% of Total Bond Cost Legal, Fiscal, Administrative, Fea sibility, etc. 3. 00% of Total Bond Cost-Contingency Z. 00I of Total Bond. Cost l3. 56% Total Bond Cost $ 652/I<%It'

1984 NUCLEAR UNET 526. 4 MW OHcred BOND COST OEVZLOZ MENT Construction Cost Total Indirect Cost:. $ 366. 8 Million Total IDC Cost .54. 8 Million

                                         ~4421. 6    Million or  $ 801/E~W Bond Cost Bond Reserve Rund                            8. 06/0 oS Total Bond Cost Renewal and Replaccmcnt 1"und                0. 50~g~ o~ Total Bond Cost:

Lcg'al, Fiscal, Adminis trativc, Pcasibility, ctc. 3. 000/0 oX Total Bond Cost Contingency 2. 00s/o of Total Bond Cost

13. 56/o Total Bond Cost ~%9 26/143K

1987 5',UGLEAR UNIT 526. 4 MV'ffe'red BON D COST D EVE LOP MENT Construction Cost Total Dir ect Cost $ 426. 5 )i))H!.o:i Total IDC Cost 6 i. 1 iii'ili.on

                                                %4')0 6 X'1'1~ion
                                                      ~                or $ 932/lih'F Bond Cost Bond Cost Reserve Fund                        8o 06"ja   of Total Bond Cost.

Renewal and Replacement Fund 0. 50,'0 of Tot;al l3ond Cost Legal, Fiscal, Administrative, Feasibility, etc. 3. 00"jo of Tot:al Bond Cost Contingency 2. 00~j'g of Total Bond Cost 13, 560/p Total Bond Cost $ 1, 078/KW

CITY OF OCALA PROPOSED CRYSTAL RIVER Ir'3 PARTICIPATION FIXED CHARGE RATE AND PERTINENT DATA Bond Cost $ 652/KW Based on Assumed Bidding, the City Could Expect to Receive 8188 KW Total Bond Cost Would Be Appr oxima tely $ 5, 338, 576 Down Payment Due July 15, 1975 $ 3, 821, 067 Levelized I"ixed Char e $ /KW/YR Debt Service Ca 7% 30 years = . 0806 x $ 652 $ 52.55 Operating and Maintenance 5. 59 Administrative and General Q 30/0 08:hf 1- 68 Insurance I 0. 5'/0 x $ 652 Interim Replacement:s and Operating

3. 26 Contingencies (a 1.4% x $ 652 9. 13 Total Annual Fixed Cha'rge $ 72. 11/KW/YR.

I CITY OF OCALA PROPOSED 1984 NUCLEAR UNIT PARTICIPATION FIXED CHARGE RATE AND PERTINENT DATA Bond Cost $ 926/ICAV Based on Assumed Bidding, the City Could Fipcct to Receive 14, 002 KW Total Bond Cost $ 12, 965, 852 Down Payment Due July 15, 1975 $ 49, 156 Lcvelized I ized Charac 8/l<W/YR Debt Service 6 7o'o - 30 Years = . 0806 x $ 926 $ 74. 63 Operating and Maintenance 9. 71 Administrative and General Q'0'jo OE;M 2. 91 Insurance 0. 5~>o x $ 926 4. 63 Interim Replacements and Operating Contingencies Qa 1. 4ojo z $ 926 12. 96 Total Annual Fired Charges $ 104. 84/jiW/YR.

CITY OF OCALA PROPOSED 1987 NUCLEAR UM T PARTICIPATION FIXED CHARGE RATE AND PERTINENT'T DATA Bond Cost $ 1, 078/KAV Based on Assumed Bidding, thc City Could E~pc ct to Be c ei ve 14, 392 Kiv Bond Cost $ 15, 514, 576

                            'otal Down Pa ym en t Due Jul y 15, 197 5                $ 4, 812 Levelizcd Fixed Char      e                                     5/KW/YR Debt Service Qe 7o/o - 30 Years                               $ 86. 89 Operating and 'maintenance                                       10. 89 Administrative and General Q< 30% oi Ofi:M                        3. 27 Insurance 5 0. 5o/o x $ 1, 078                                    5. 39 Interim Replacements and Operating Contingencies   Qa   I. 4% x $ 1, 078                         ]5. 09 Total Annual 1 i+ed Charge                                 $ 121. 53/KW/YR.

0 0

 ~ 01 ~ 0  ~ ~                      ~ ~  ~ 0 ~ too ~  0   ~
                                                            ~

oo ~ ~ ot

                                                                      ~  ~
                                                                           ~   t    fl  ~. o 'aa  ~  ~  4  ~   4.     ~  ~ ~. ~

0 ~ ~ JOINT 0'kNERSHIP EXPRESSIO'( OF Ir(TEREST FLORIOA PO"ER COPORATIOfl P. 0. Box 14042

                        .St. Petersburg, Florida 33733 Attn: Hr. M; F. Hebb, Vice President FROfl:

SUBJECT:

Crystal River Nuclea'r. Plant (Unit;".3)

                 ~

In response to the Invitation to Bid letter from Florida Power Corporation, dated January 20, 1975, CITY OI- OCAI.A Name of Enti ty hereby, in good faith, expresses an interest in participating in the subject project in the amount of

10. 000 per cent. In the, event the project is oversubscribed and 0 to 10" it becomes necessary to apply the alloc'ation formula set forth in the Invitation, the minimum percentage we will accept is 0. 0 per cent.

0 to 10" Attached hereto is a resolution of our governing body au"horizing this Expr ession o Interest. This Expression of Interest is made with the clear understanding of the following: 2.

                        'lFlorida Power Corporation reserves the right to reject 1 bids.

This Expression of Interest is non-conditional. Those which a: e conditioned shall be rejected.

3. Expression of Interest shall be submitted on tigris form and both maximum and minimum percentages must be stated.

Expression of Interest must be received by Florida Power Corporation at it's General Headquarters in St. Pet rsburg prior to 5:00 p.m., ltonday, Yarch 17, l.975.

5. Tfris Expression o Interest is based on the in ormation contained in the invitation,- together with tire d t sheet for this Project prepar ed bv Flori'da Power Cor.poi ation ard attached to the Invitation.

6. Ho Expression of Inter est shall be binding until enabling legislation favorable to joint ow:rership is enacted by:he Florida Legislature as permitted by Sec:ion 10d of Article VII of the Constituticn of the State of Florida.

             ~

7 Florida Power Corporation shall complete construction and act as Operating Agent for this Project. t'arne or Lnti ty By:

                                                              +Au t h 'Vi Or "I .. L'll   It L'P I I", L'll t t I V 1

L'~.t O

                            ~ ~                             ~
                                                                ~                    ~
                                                                                   ~
               '       I                              0

~ b ~

     ~
       ~ J ~
             ~     ~            ~
                                  ~
                                    ~ ~ ~
                                          ~
                                            ~ ~ ~ 5 ~
                                                                   ~ ~
                                                                   ~   0
                                                                        ~
                                                                          ~ i e,e
                                                                              ~         ~ ~ ~    l4    a   Ao o    i A JOINT OWNERSHIP EXPRESSIOH OF INTEREST 0

FLORIDA POflER CORPORATIOH P. 0. Box 14042 St. Petersburg, Florida 33733 Attn: Hr. H. F. Hebb, Vice President FROH:

SUBJECT:

1980's Nuclear Project. (Unit 81) In response to the Invitation to Bid. letter from Florida Power Corporation, dated January 20, 1975, CITY OF OCAI.A Name of Entity hereby, in good faith, expresses 0

4. 850 to 40"

                              'er an interest in participating in the subject project in the amount of cent. In the. event the project is oversubscribed and it becomes             necessary to apply the               allocation formula set fort:h in the we will accept is                                             per cent.

Invitation, the minimum .percentage 0. o Oto 40:: Attached hereto is a resolution of our governing body authorizing this Expression of Interest. This Expression of Interest is made with the clear understanding of the following:

1. Florida Power Corporation reserves the right to reject

                                      'all bids.

2. This Expression of Interest is non-conditional. Those which ai e conditioned shall be rejected.

3. Expression of Interest shall be submit . d on this form and both maximum and minimum percentages must be stated.

4. Expression of Interest must be received by Florida Power Corporation at it's General Headquarters in St. Petersburg prior to 5:00 p.m., i'!onday,,"larch 17, 1975.

5. This Expression of Interest is based on the information contained in the Invita"ion, together with the Cata sheet for this Project prepared by Florida Power Corporation and attached to the Invitation.

6. Ho Expression of Inte~ est shall be binding until enabling legislation favor able to joint ownershio is enacted by the Florida Legislature as permitted by Section IOd of Article VII of the Constitution of the Sta:e oi Florida.

7. Floridi Power Corporation sl:all construct and act as Operating Agent for this Project.

Name of Entity) By: fAiitl~,i ~ ~,. ~, ~ ~ ~ ~,*.c., ~ ~ ~ ~ i I ~ ~ ~ ~

                                                       ~   ~
                                                                                  ~ ~
                          ~
                              ~                                   ~   ~

0 ~

 $~                                                                           ~ ~

0

                                                                                      ~
    ~ o4 ~                                                                                               '
           ~            ~   ~       ~ ~

e ~ ~ ~ ~ ~ ~ JOIHT OWNERSHIP EXPRESSIOH OF IHTEREST

             . TO:                            PO'HER   CORPORATIOH P. O. Box 14042 St. Petersburg,            Florida      33733 FROYi'LORIDA              Attn: Hr.        H. F. Hebb, Yice         President SUHJECT:          1930's Nuclear Project {Unit 82)

In response to the Invitation to Bid letter from'Florida Power Corporation, dated January 20, 1975, CITY OF OCAI-A Name of En;itv} hereby, in good faith, expresses an interest in participating in the subject project in the amount of

4. 850 per cent. In the event the project is oversubscribed ard Oto40; it becomes nec ssary to apply the allocation formula set forth in the Invitation, the minimum percentage we wi 11 accept is o o per cen' to 40~}

Attaclred hereto is a resolution of our governing body authorizing this Expression of Interest. Ttris Expression of I'nterest is made with the clear understanding

             .of the following:

1. Florida Power Corporation reserves the right to reject all bids.

2. This Expression of Interest is non-conditional. Those 4'hich are conditioned shall be rejected.

3. Expression of Interest shall be submitted on this fern

                               . and bcitr maximum and minimum per.centanes must Le sta'ed.

4. Expression O'nterest r,".ust be received by Florida Pc 'er Corporation at it's General Headauarters in St. Peterscurg prior to 5:00 p.m., t!Ondav, Var.ctr 17, 1975.

5.'his Expr essicn or Inter est is based on the in.orr'at cn contained in the Invitaticn, together with the d" ta sheet for this Project prepared by Flor.ida Power Corporat,icn and attached to the Invit tion.

6. Ho Expression or Interest shall be binding until enabl'ng legislation iavorable to joint o;.aership is enacted by the Florida Legislature as permitted by Sect.ion 10d oi 6 r t,icle VI I of the Constitution oi the St'te o Flor ida.

7. Florida Power Corporation shall construct.. anc 'ct as Operating Agent for tlris Project.

Harlle Of Crl t, 1 ty

EXHIBIT C Tables Illustrating Fossil Fuel Costs In Florida (12 Pages)

SELECTED FLORIDA CITIES GENERAL DATA Installed Estimated Nameplate 1974 Line Population oI Capacity Nct Generation Sales Avera c Number ot Customers No. Cities (a) Servlcc Area (b) Ktv (c)

                                                                                       )<IVH (d)

HWH Residential Total ~Pt ( ) (gl (h) Fort Pierce 48, '773 67,500 265,354 F 000 259,878, 109 13,935 16, 337 85,3 Galnesvllle 113,672 224,762 61 I ~ 8 I I ~ .I 00 567,025,754 28.100 32, 064 89. 5 Ho illc s t e a d 35>000 36, 095 I I I, 347, 204 142,513,369 8, 144 9, 127 89. 2 Klsstmmee N. A. 30, 270 101, 958, 400 142,402,822 8,580 10,022 85. 6 5 Lakeland 133, 600 263,250 a92, o58,4ao 848>096,928 41, 109 49,394 83,2 6 Sebrlng 15>000 25,381 55,614,196 69,075,208 4,443 5,855 '15. & Starts 4,848 10,790 29,768,450 26,803, 062 1. 523 1,913 17. 2 Tot ~ I Seven Cities 350,893 &sa,o48 2 ~ 067 ~ 91 I ~ 830 2> 055 ~ 795 ~ 252 106>434 124,772 85. 3 Source: Lines I through 8, Column (cb StatlsHcs ol Florida Electric Utility Industry 1966-1974, Table C-7. Lines I through 8, Columns (b) and (d): Cltle ~ . I,ines I through 5, 7, Column (c)-(g): Cities.

         . Lines 6 and 8, Column (e)-(g):          Operating Reports,

HEATING AND COOLING DEGREE DAYS SELECTED CITIES IN FLORIDA AND THE UNITED STATES ~ Yearly Normal 1941- 1970 Line Heating Cooling ~ No. Cities (a) (b) (c) Ta1laha s s ee 1, 563 2, 563 Pens a c ola 1, 578 2, 695 Jacksonville 1, 327 2, 596 Gaine s ville 10081 NA Orlando 704 3, 447 Daytona Beach 897 2, 919 Tampa 718 3, 366 Lakeland 678 3, 298 Fort Myers 457 3, 711 10 Miami 206 4, 038 Key West 64 4, 888 12 Los Angeles, California 2, 000 1, 000. 13 Topeka, Kansas 5, 000 1, 500 14 Syracuse, New York 7, 000 500 Source: Statistics of the Florida Electric Utility Industry 1960 through 1974. U. S. Weather Bureau.

RESIDENTIAL SPACE klEATING FUELS Florida Neil York Ca lifornla United States Line R e aid en tlal Housing Housing Housing Flou sing No. Heatln Fuel Units /o Units Units 'Pe Unit s (a) (b) (c) (d) (e) (g) (h) 1 Utility Gas 351, 778 15. 4 2, 237, 007 37. 8 5, 640, 839 86. 0 35,013, 745 55. 2 2 Electricity 738, 548 32. 3 104, 091 1.8 565, 956 8.6 4,876, 038 7.7 3 Fuel, Oil, Kerosene, etc. 667, 754 29. 2 3, 357, 171 56. 8 44, 464 0.7 16, 473, 470 26,0 4 Coal or Coke 481 0.0 82, 327 1.4 ), 149 0.0 1, 820, 952 2. 9 5 Wood 23, 699 6, 326 0. 1 43, 709 0.7 793, 908 1.2 6,

                                                                                                                                                '.0 Bottled, Tank or L.P. Gas            404, 151     17. 7         67, 355              204, 297         3. 1  3, 806, 948 Other Fuel                             2, 909      0.1          56, 306      0.9      14, 190.        0. 2       266, 286       0.4 None                                  96 466       4,2           3  270      0,1      49, 257         0. 7       395, 294       0.6 Total Occupied Housing Units                            2, 284, 786               5, 913, 853           6, 563, 861                63,446, 641 4 Data taken from   1970 Detailed klousing Characteristics. U. S. Bureau of the Census.

Q '~k cd.

819 209, 873 241, 70S 267, 286 265, 354 '/o Gas 90. 59 74. 85 62. 38 59. 9& 66. 97 47. &3 46. 76 40. 09 /8 Oll 9. 41 25. 15 37. 62 40. 02 33. 03 SZ. 17 53. 24 59. 91 CITY OF GAIN ESVILLE Net Generation (KWH) (000) 257, Z31 320, 396 359, 059 405, 667 448, 7&6 ~ 504, 078 648, 479 611, 811  % Gas 99.20 92,49 87. 36 93 '4 96,63 77.86 71.26 48.47 /0 Oil 0. 80 7, 51 12. 64 6. 26 3. 37 22. 14 28. 74 51. 53 CITY OF iiOMESTEAD Net Generation (KiVIO (000) 63, 9 i 6 72, 691 75, 424 75, 234 86, 623 100, 732 120, 4g6 111, 347 .8  % Gas 92. 86 85. 76 83, 77 88. 09 89. 78 6g. 64 51. 13 51. 31 9 /0 Oil 7. 14 14. 24 16. 23 11. 91 10. 22 30. 36 48: 87 48. 69 CITY OF KISSIMMEE 10 Net Generation (KWH) (000) 44, 920 52, 587 62, 114 7Z, 305 85, 043 115, 068 87, 799 101, 958 ll /o Gas Nh NA NA NA NA 43. 07 72. 48 51. 21 12  % Oil NA NA I%A NA NA 56. 93 27. 52 48. 79 CITY OF LAKELAND 13 Net Gcncration (KWH) (000) 458 758 511 885 571 627 635 Z32 775 656'00> 485 945 743 892 058 14 o/0 Gas 98.01 89. 42 52. 90 72. 07 25. 54 29. 64 .28. 54 41. 55 15 /0 Oil l. 99 10. 58 47. 10 27. 93 74. 46 70. 36 71. 46 58. 45 -CITY OF SEDRING 16 Net Generation (KWH) (000) 34, 230 40, 549 46, 730 53, 254 57, 070 64,257 60,452 55, &14 17  % Gas 81. 46 81. 85 79. 97 8?. 39 82. 39 6Z. 9S 5g. 35 41..40 18  % Oil 18. 54 18. 15 20. 03 17. 61 17. &1 37. 02 40. 65 58. 60 CITY OF STARKE 19 Net Generation (KWH) (000) 17, 32Z 19, 833 21, 240 23, 309 24, 176 26, 110 28, 895 29, 768 20 o/o Gas 91. 21 89. 28 87. 49 87. 46 91. 50 77. 43 69. 74 42, 91 Zl  % Oil 8. 79 10. 72 i2. 51 12, 54 8. 50 22. 57 30. 26 57. 09 CITY OF- TALLAIIASSEE 22 Nct Generation (KWH) (000) NA 492, 176 559, 191 655, 858 745, 928 820, 65Z 915, 851 881, 899 23 /8 Gas 93. 02 82. 02 80. 49 85, 09 89. 55 78. 25 69, 55 47, 81 24 /o Oll 6. 98 17. 98 19. 51 14. 91 10. 45 21. 75 30. 45 52. 19 COMPARATIVE USAGE IN FLOIi.lDAAND UNITED STATES OF FUFI,S FOR EI ECTitIC GENERATION IN i974 Other Fuels NZ Natural Diesel Linc Gae 86 Oil Fuel Coal Nuclear Hydro No. Dcecrl tlon ~0 ~0 Other (a) (b) (c) (d) (e) (I) (8) (h) FLORIDA CITIES I Fort Pierce 40, 09 57. 32 .6i 2 Ga inc s ville 48. 47 51. 30 .09 3 Ikomcstcad 51. 31 46. 77 4 Kisslmmee 51. 21 47. 27 5 Lakeland 41. 55 57. 70 .52 6 Scbring 41. 40 38. 65 2Q.QQ 7 Starke 42. 91 58. 53 8 Total Seven Cities 44. g8 48. 46 6. 56 9 Other 15. 99 82. 92 l. 09 10 Total Munlclpale 21. 03 76. 93 2. 04 COM PAN! ES ll Florida Power 12. 68 82. 34 4. 98 12 Fiori<ia Power I< Light 26, 21 49. 77 l. 91 22. 11 13 Tampa Electric . 7. 07 .15 92. 78 14 Other 8. 02 2. 30 .90 88. 78 15 Total Investor Owned 18. 01 45. 52 2. 18 21. g4 12. 35 OTi i Eit 16 Flori<ia Keys 68. 51 31, 49 17 Jim iyoodruff Dam 100. QQ 18 Total Other IZ. 60 5. 79 8 l. 8 l 19 Total State of Florida 18, 40 50. 32 2. 17 18. 4? 10. 37 .32 20 Total United States 17. 20 16. 02 16. 02 44. 50 6. 02 16. 13 ,13 Source: Pages Z and 3 of this exfdblt. ELECTRICAL GENERATION AND FUEL CONSUSIPTION - 1974 FLORIDA ELECTRIC UTILITYINDUSTRY (Generation is in >ltegawatt Hours consumption is as indicated) Nct Ncc Net Generation Net Nec Nec Line Net Generation Generation Natural G e n era c1 oa Generation Generation No. Descri Hoa Generation Hvdro Coal Gas Heavv Oil ~l.i 4 ITil Nuc isa r (a) (b) (c) (d) (e) (g) Florida Power 18 Ligbc 35,622, 866 9, 336, 756 17, 727, 557 68L,227 7,877, 326 Florida Power Corpocatloa 12, T87, 075 I ~ 6Z2,014 10, SZS,461 636,600 Florida Public Ucili tie s 691 652 39 Gulf Power Co. 6,487, 667 S,802, 677 495> 302 149, 878 39,8LO Reedy Crcck 47, 301 Z8,857 18,684 Tacnpa Electric 8 827 987 8 390 3>I 62 ~ 446 13,240 Subtotal of Florida Power I> Light, Florida Power Corporation> 7 aad Tacnpa Electric 57 2\7 928 8 290 307 30 958 770 28 880 464 I 33I.>67 7,877.326 Total Iavcstor 8 Owned 63, T73, 587 652 13,992,978 11,482,929 29,030, 342 I ~ 369,600 7,877,326 9 Ft. Pierce 265, 512 111,713 152, 183 1,617 10 Galnesville/Alachua 6LI~ 812 297, 425 313, 882 505 11 Homestead 111 ~ 342 59, 263 52, 079 12 Jacksonville 4, 958, 412 4.890.899 67,807 13 Key West 355, 875 349,009 6,S66 14 Klsslmcnee 101, 959 53, 760e 48 '99s 15 Lakeland 892,059 372, 687 514, 736 4, 636 16 Lake Worth 225, 475 221, 633 1,008 2,939 17 New Srnyraa Beach 50, 246 39,802 10, 445 18 Oriaado 3,048, 2LS TZI, 459 2, 326,638 LZI 19 Sc. Cloud 63, 411 55,964 7,447e 20 Sebriag 56,068 23, 194 2 I, 676 1 I, 216 21 Starke 29, 774 12, 347 17, 427e 22 Tallahassee 88L,898 431, 576 443, 673 6,646 23 Ycro Beach 247, 929 102, 389 145, 34S L92 24 Wauchula I 527 5 527 Subtotal- Seven 25 Florida Cities ~265~4 26 Total hiuniclpa le L 1,905, 537 2,503, ZL2 9,159,052 243, 669 27 Florida Keys 55, 895 38, 291 17, 604 28 JLm Woodruff Dam 247 978 247 9 8 29 Total Other 303 873 247 978 38 293 IT '04 30 State Total 7S,982,997 248,630 13,992,978 13,986,141 38,227,6SS I ~ 650, 873 7, 877, 326 Sources Statistics of the Florida Electric Vtlllty Industry l960 chrough !974, 'ZIorlda Energy Data Center, April, 1975. ~ Computed Figure r+ NET GENERATION BY FUEL U. S. ELECTRIC UTII ITY INDUSTRY (Millions oE Kilowatt liours) Linc No. Year Coal Fuel Oil Ca a Nuclear ~Hdro Other+ Total (a) (b) '(c) (d) (e) (g) (h) 1960 403> 067 46, 105 157, 970 518 145, 516. 2, 198 755, 374 2 '961 421, 871 47, 120 169, 286 1, 692 151, 850 2,"454 794, 273 1962 450, 249,,46, 983 184, 301 2, 270 168, 283 2, 687 854, 773 1963 493, 927 52, 001 201, 602 3, 212 '65, 755 296 916,.793 1964 526, 230 56, 954 220, 038 3, 343 177, 073 352 983, 990 1965 570, 926 64, 801 221, 559 3, 657, 193, 851 458 1,055, 252 1966 613, 475 78, 926 251, 151 5, 520 194, 756 522 1, 144, 350 1967 630, 483 89, 271 264, 806 7, 655 221, 518 632 1,214, 365 1968 684>905'104 ~ 276 '304,'433 12, 528 222, 491, 809 I 329 442 10 1969 706, 001 137, 847 333, 279 13, 928 250, 193 934 1,442, 182 1970 706, 102 182, 488 372, 884 21, 797 247, 456 882 1, 531, 609 12 1971 714, 756 '18, 162 375, 939- 37, 899 266, 320 860 I, 613, 936 13 1972 770, 617 ~ 272, 482 375, 682 54, 031 272, 734 1, 777 1, 747, 323 1973 845, 986 310, 657 336, 001 83, 292 271, 053 2,271 1, 849, 260 15 1974 828, 437 298, 222 320, 199 112, 023 . 300, 335 2, 454 I, 861, 670 1974 16 'ercent oI Total 44. 50% 16. 02% 17. 20%%uo 6. 02%%uo 16. l 3% 0. 13%%uo 100. 00%%uo s Includes generation by geothermal, wood and waste. Source: Statistics oI the Florida Electric Utility Industry 1960 through 1974, Florida Energy Data Center, April, 1975. HISTORICAL FUEL COSTS PER MILLIONBTU BURNED 8 TU'S ""-'ENTS/MILLION Coal Oil Natural Gas Line United United United No.'ear Florida States Florida States Florida States (a) (b) (c) (e) (I) 1 1960 30. 1 26. 0 35. 4 34. 5 34. 0 23. 8 2 1961 30. 4 25. 8 34. 9 35. 5 35. 3 25. 1 3 1962 29. 8 25. 9 34. 3 34. 5 34. 6 26. 4 1963 29. 6 25. 0 .34. 2 33. 5 ~

33. 7 25 0 5 1964 29,4 24. 6 33. 6 32. 6 33. 2 25. 3 6 1965 27. 4 24. 4 33. 5 33. 1, 33. 4 25. 0 7 1966 26. 5 24. 7 33. 3 32. 4 32. 6 25. 0 8 1967 26. 7 25. 2 32. 3 32. 2 32. 5 24. 7 9 1968 26. 9 25. 5 31. 7 32. 8 32. 9 25. 1 10 1969 29. 0 26. 6 30. 1 31. 9 33. 0 25. 4 ll 1970 30. 6* 31. 1 30. 6 36.

51. 6 35. 39. 5 27. 28. 0 1971 33. 6 36. 0 38. 8 5 7 8 12'3 1972 42. 3 38. 2 47. 0 58. 8 39. 1 '0.3 14 1973 49. 8 41. 4 60. 8 75. 9 43. 8 34. 1 15 1974 73. 8 71. 0 179. 9 192. 2 58. 6 48. 1 Source: 1960 - 1973 National Coal Association 1974 - Federal Popover Commission (Note: 1974 is Fuel Delivered) Conventional Steam Plants only, not Nuclear. GAS DELIVERY SHORTPALLS EXPERIENCED BY CITIES REI ATIVE TO THE ESTIMATED QUANTITIES CONTAINED IN T}IE AUGUST 3t )972 STfPULATION (M MBTU) First Stss Months of 'I 75 One-Half 19 73 1974 of Quantity Estimated Estimated Est(mated I,fne In Actual In Actual ln Actual ~N CI II ~ ~SII I ~ tl Dell vcr tea D!(ference ~>tl lttl D all vs r I e s Dlffcrence ~>tl I tl Dell vc rIe s Difference ('I (b) (c) (e) (n (8) (h) I 3'ort Pierce 2, 320,000 1,789,045 530, 955 2,084,000 I, 473, 208 &10, 792 919, 500 308, 711 610, 729 2 Catnesvllle 5, 839,000 5,626,930 212> 070 5> 2 17 ~ 000 3,446, 370 1,800> 630 2, 314,000 161 ~ 842 I ~ 552> 158 3 }fomc ~ teed I> 578,000 749 778 ~ 828, 222 I, 418,000 675, 320 742, 680 625, 500 186,868 438, 632 4 Kts ~ Immee I, 616, 000 651, 547 964, 453 I, 452,000 557, 153 894> 847 640, 500 185, 3&6 455, 134 .5 La ke la nd 6, 343,000 3, 174, 720 3, 168, 280 5, 699, 000 4,267,000 I, 432, 000 2, 514,000 962, 527 I, 551, 473'53, -6 Scbrlog 645, 000 526, 819 118, 181 580, 000 339, 268 240> 732 255, 500 102,242 258 1 fo Starke 278,000 247, 690 30, 310 250,000 144, 962 105, 038 110, 500 42> 825 61, 675 To(at Seven 8 Cities ~ 18, 619,000 12, 766, 529 5,852, 471 16, 730,000 10,903, 281 5,826, 719 7, 379, 500 2 ~ 550> 441 4 ~ 829> 059 Total Direct Preferred 9 lnterruptlble Class 11,868,667 64, 107, 694 7> 760 ~ 973 64'> 572> 434 52, 362, 290 12, 210, 144 28, 481, 100 15 318 ~ 656 13> 162 ~ 444 Sourcct C I Ihl. ( I. (hl ~S<l lul . P S l >Sit hm IS Columns (e), (f), (I); Florida Ga ~ Transmtsslon's Monthly "Ga ~ Balance Rcport". Columns (d), (g), (j)t Columns (b), (c), (h) - columns (c), (f), (I)

SUMMARY

OF CITIES'OSTS, PER MMBTU BURNED, FOR NATURAL GAS AND OIL Line January June January, June January June No. Citv 1973 1973 1974 1974 1975 1975 (a) (b) (c) (d) (e) FORT PIERCE 1 Natural Gas $ 0. 5110 $ 0. 5383 $ 0. 5413 $ 0. 5718 $ 0. 5845, $ 0. 6121 2 No. 6 Oil 0. 5192 0. 5427 0. 9429 1. 7023 1. 8294 1 ~ .9210 3 No. 2 Oil 0. 8625 0. 8626 1. 1782 1. 1786 1. 7967 2. 1181 GAINESVILLE Natural Gas4 $ 0. 4682 $ 0. 5089 '0. 5075 $ 0. 5426 $ 0. 5558 $ 0. 5834 5 No. 6 Oil 0. 5473 0. 5648 l. 0071 1. 5169 1 ~ 7999 1. 8069 6 No. 2 Oil 0. 8477 0. S749 l. 2254 1. 3512 l. 6177 1. 8220 HOM EST EA D 7 Natural Gas $ 0. 5110 $ 0. 5383 $ 0. 5415 $ 0. 5718 $ 0. 5845 $ 0. 6121 8 No. 2 Oil 0. 7928 1. 1330 le 0652 2. 1040 Z. 0888 2. 0888 KISSIM M EE 9 Natural Gas $ 0. 5110 $ 0. 5383 $ 0. 5413 $ 0. 5718 $ 0. 5845 $ 0. 6121 10 No. 2 Oil 1. 0040 1..3843 1. 8198 2. 0249 Z. 1450 2. 2658 t LAKELAND 11 Natural Gas $ to. 5110 $ 0. 5383 $ 0. 5413 $ 0. 5718 $ 0. 5845 $ 0. 6121 12 No. 6 Oil 0. 5337 0. 5344 0. 7042 1. 685i 1. 8993 1. 8743 13 No. 2 Oil 0. 8022 0. 8043 0. 9781 l. 4483 2. 0836 2. 0853 SEBRING 14 Natural Gas $ 0. 5110 $ 0. 5383 $ 0. 5413 $ 0. 5718 $ 0 ~ 5845 $ 0. 6121 15 No. 6 Oil 0. 5733 0. 5968 1. 7968 I. 8715 1. 9668 16 No. 2 Oil 0. 8078 0. 9586 1. 3871 2. 0106 2. 0807 . 2. 0906 STARKE 17 Natural Gas $ 0. 5110 $ 0. 5383 $ 0. 5413 $ 0. 5718 $ 0. 5845 $ 0. 6121 18 No. 2 Oil 0. 7731 0. 9145 l. 3283 l. 9834 2. 0041 2. 0041 ~ Th ~Sti iatio pro ided the "pr seat eootraet" rate for the i r ttOsO,OOO th r pter sday to Ga'oe ~ itic. Source: Natural Gas: Analysis of bills rendered by Florida Gas Transmission and data provided by Cities. No 6 and No. 2 Oil: Data provided by each City for the thirty-month period January, 1973 to June, 1975,

SUMMARY

OF TILE WELGILTED AVEILAOE ANNUAL COST PER MMDTU DURNED DY EACH CITY FOR TILE YEARS 19'l) 1974 AND TILE FIRST SIX MONTI!S OF 1975 1973 1914 First St>r Months ot 1975 Gas N. I>II N. >II. Cas No. 2 Oll No. Otl Gas No, 2 Otl No. 6 Otl FORT PIEIICE Total Cost o $ 952,26) 12, 511 I, 172, 550 834, 816 26, 855 . 3, 561, 113 185,40$ 47, 114 2, $ 8$ ,144 Total hthtDtu Burned 1,789,045. 5 13, 302 ~ 0 2,02),766. 8 I ~ 413, 208. 4 17, 747, S 2, 184, 266. 2 308, '77l ~ 4 23, 593. 6 I, 319, 996. 0 Wcl ght cd Aic rage Cost pcr hthtGtu o $ 0. $ 323 0. 9405 0. 5'794 O. 5G&7 1. SL32 I ~ &303 0. 6005 1. 9969 1. 8131 GALNESVII.LE 4 Total Cnst 2,823,033 1,052 I> 363,035 I, 870, 034 31,350 5,680,767 435, 398 83,532 5, I S9,693 5 -Total 1 lhlDtu Burned 5,626,930,4 7,754. 0 2, 274,956. 0 3, 446, 370, 2 19,528.0 3,636,152,0 761,842,4 48,569,0 2,S16,124.0 Wclghtcd Average Cost pcr MhtQtu -5 0. SOL7 0. 9094 0, 5931 0> 5426 1. 6054 I. 5623 0. 5715 1. 7199 I 1940

   'IIOht EST E A D 1      Total Cost               .5        397,7$ 0           794 ~ 040              Not             385>300        1,297,561                    Not            112,807          1,047,000                 Not 8      Total htMGtu Burned                149,711.7          7L6,501,0         Applicable           675> 320, 3        658i 112,    5    Applicable            186, 867. 8         501, 242. 9       Applicable Wclghtcd Average Cost pcr hthIDtu         -5            0. 5)05            L. 1082                                0. 5705            l. 9716                                0. G031              2, 0888 ILISSIMMEE

,10 Total Cost -5 )4C,887 374,4eo Not 316 559 I ~ 079 ~ 500 Not 111,667 817,438 Not 11 Total htMQtu Burned 6$ 1, 546. 9 297, 813. I Applicable 551 153 ~ 0 518> 027> 8 Appllcableo 18$ ,366.3 3'18,690,7 Applicable Weighted Average Cost 12 pcr hlhlGtu 0. 5)24 L. 2514 0. 5682 2. 0839 0. 6024 2. 1586 LAREI.AND 13 Total Co>t o $ I,692, $ 11 l)3,713 4, 196, 336 2>41)>912 131,683 9,093 ~ 401 577, 043 2)4,703 1,880,868 14 Total hthtlttu Durncd 3, 114,7 L9. 7 158,269. 0 7,139,338.0 4, 266,999, 7 'lS, 096, 0 5, 924, 262. 0 962, 526, S 114, 023. 0 4, 142,9S2,0 Wclghtcd Average Cost 1$ pcr hthlGru -$ 0. 5331 O.e448 0. 5422 0. 5671 l. 7535 I ~ 5349 0. 5995 2. 0584 1,9022 5 E 8 't I >LC 16 Total Cost -5 280,9$ 7 68,675 171,422 191, S36 234,223 540. 176 '61,$ 77 63,123 324 ~ 139 11 Total htMGtu Gurosd SLG 818.9 72, 905. 0 251, 801. I 339,268. I 123,854. 6 309,794. 6 102,247 I 30,939.1 169, 24 S. 0 Wclgl,ted Average Coll pcr hthtDtu -5 0. 53)3 0, 9420 0. 6808 0, 5654 1. 8911 I ~ 7456 0. 6022 2, 0596 l. 9181

    >TARN >.

T I IC I -5 1)2,208 98,937 Not , 82,352 367,039 Hot 25,875 259,092 Not 20 Total SIMDtu Burned 241, 690. 3 109, 540. 3 Applicable 144, 961 ~ 6 19S,948.1 Ap pl I c abl e 42,824.6 129,278.S Appllcabl ~ Wclghtcd Average Cost 21 pcr hthlQtu o 5 0. S))7 0. 9035 0, 5681 I 8449 0. 6042 2. 0041 TOTAL CITIE5 22 Total Cost -5 6 62$ &09

                                          ~       ~         1,489,408           6,903, 343        6, 100, 809        3, 168,211          18, 8'16, 0 57       I, 509, 772         2, 552, 602       15,951,044 23       Total hthtDtu Domed           12,7&C, 529.       4 I, 3'l&,084> 4     12,289, SGI ~ 9   10,903,281,      3  I, Gl I, 314. 5     L2> 054 474. 8
                                                                                                                                                     ~        2, 550, 446.4       I, 226, 331. 4      8> 568,350.0 Wcl>thtcd Average per hlhlGtu          -5           0. $ 190              I. 0824         0. 5617             0: 5595             l. 9662              1. $ 659          0, 5920             2. 0815            0, 1857

INCREASED FUEL COSTS ASSOCIATED WITH GAS DELIVERY SHORTFALLS RELATIVE TO FORECASTED QUANTITIES CONTAINED IN TIIE AUGUST 31 1972 IP LATI 1973 1974 First Slx Months ol 1975 Total Gas Delivery Increased Gas'elivery Increased Gas Delivery Increase Increased Line Sho r t(at I Fuel Cos't r t fall Fuel Cost Short(a)I Fuel Cost Fuel Cost

                                                                                                                               ~5
                                  ~

S ho No. Cltlss ~hl M0 \ ~MM>4 ~MM04 ~45 (a) (b) (c) (e) (e) (h) Fort Pterce 530, 955 $ 25,008 610,792 $ 649,638 610,729 $ 777, 580 $ 1,452,22& Gatoesvt)le 212, 070 20,889 I, 800, 630 I, 836, 520 I, 552, 158 I, 895, 563 3,752,972 4 llomestead 828, 222 413> 923 742,680 922, 081 438,632 651, 412 1,987,416 Ktsstmmes 964, 453 215,914 894,847 785. 175 455, 134 589, 318 I, 590, 407 Lakeland 3,168, 280 48,074 1,432>000 I, 389, 868 I, 551,473 2,027, 62& 3,465, 568 Seb rln8 118, 181 17,432 240,732 284, 112 153, 258 201, 764 503, 308 Starke 30 II> ll 207 305 038 334 II3 57 5'l> 44 738 240 050 Total Seven Cltl es 5,852,471 $ 752,449 5, 82&, 719 $ &,001,507 4, 829> 059 $ 6, 238, 001 $ 12,991,957 Sourcet Co)umns (b), (d), (I)t Exhlblt No. 3 herein. Columns (c), (e), (g)i Exhlblt No. 5 herein and columns (b), (d) and (I),

EXHIBIT D Moody's Public Utility Manual, 1974 Report on Florida Power 4 Light Company

4 / ZOODF'S PUBLIC UTILITF. 3ldXUAL 1545 FLORIDA POWER Br, LIGHT COMPANY CAPITAL STRUCTURE Times LONG TERhf DEBT Amount Charges Earned Interest (0 Call Price Ran ere Issue Rating Outstsndtncf 1973 1912 Dates Price 1913 1972

1. Firn! 3s, duc 1997 Aa 10,000,000 JdcJ 1 100.39 SS - 803a 851i 82ai

2. First 3)as, due 1978 Aa 11,000,000 JdcD 1 10057 S3ia- 77 83aj- 80

3. First 3s, due 1979 Aa 10,000.000 JdcD 1 100.69 79 72ii 79',i- VS

4. First 3,is, due 1981 Aa 10,000,000 hfdcN I 10l.06 76ca- 70 Ti,a jp'df'a-S. First 33is, 1983 As 15.000,000 AdcO 1 101.52 753'1- 69 75~if- 72

6. First 3{is, 1984 Aa 10,000,000 5fdcN 1 101.34 668a 613ia 67 - 63,a 7 First 3]ass, 19S6 Aa 15,000,000 AdcO 1 101.52 68 62 68 5- 65{ca

8. First 4fffs, l986 Aa I S,000.000 JdcD 1 102.59 V2 g- 67 73

9. First 44'S, 1987 First 4 as. 1988 Aa 15,000,000 MdcN 1 102.92 75 {c 68 75, 13 i-

10. As 20,000,000 Ad:0 1 102.43 69jcc- 6338 69i 4- 60

11. First Ss 1989 Aa 25,000,000 i7dcD 1 102.79 76 1- 68i'a 77( 74cc<

IL First 4Ps, 1992 As 25,000.000 FdcA 1 103.38 70 5 62 73 ja- 6148

13. First 44'fs, 1994 Aa 35,000,000 101.38 69 62{ca 68

14. First 4,is, 199$ Aa 40,000,000 104.49 69 )a- 6ta< 73 a 65 I- Tlii

15. First 5 s, 1995 Aa 40,000,000 10523 72 66 'a-

16. First 6. s. 1996 An 40,000,000 3.29 3.16 Jd;D 1 105.62 84iia- 743ca St/P Sad o 1997 ..

17. First 6,'as~ As 60,000,000 JdcD 1 106M 92 84 73'63 cc- 89) ~

18. First 7s, brune I, 1998 . Aa 60,000,000 JdcD 1 107M 933a- 84'a 81

19. First 7s, Dec I, 1998 Aa S0,000,000 JdcD 1 107.58 95 844 'c- 923a

20. First Ss 1999 Aa 50,000,000 JdcD 1 10T.57 103sa- 96 104 -102

21. First 83(s, 1975 Aa 70,000,000 JdcJ 1 {I)---- 104 {cc- 99{co 1083c-103{a

22. Fir'st 7)as, 2001 Aa 80,000,000 JdcJ 1 107.74 IOOIII- 92 101 - 98

23. Ftrst Vffs, 2001 Aa 100,000,000 MdcS 1 108.86 103 93 1033cc- 993'i

24. First Tfas, 2002 Aa 50,000,MO JdcD 1 108.48 1003ca- 92 101 {ca 99iA

25. First 73ccs, 2003 Aa 70,000,000 Jdc J IOS.21 1014- 89 iS 26.

21. 28. 29. 30. First First First 8I'as, 8 $ s, Sc's 1980 2004 1982 Other fong term debt Poll. contr. rev. bds. {Dade Co.) As Aa Aa 5::50,000,000 125.000,000 100,000,0M 73.6$ 1,66$ 35450,000 1'iva. H)-.-.- {7) 109.16 106 3 a-103 .a 5

31. Poll. contr. rev. bds. (St. Lucia Co.) 25,000,000 hI CAPITAL STOCK Psr Amount Earned pcr Sh. per Sh. Call Pri ce Range Issue Value Rating Outstnndin 1973 1912 1973 1972 Prico 1973 1912

1. 43cc% curn. preferred $ 100

                                                    ~

aa<< 100,000 shs. $ 4.50 $ 4.50 101 60 - 51 61 - 57

2. 438% curn. preferred, A S0,000 sha. 4.50 g

3. 44 curn. prelerred. B

4. 4 a~~~ curn. preferred, C 100 100 100 50,000 sha.

62,500 shs. 4.50 4.50 4.50 4.50 4.50 101 103 5 4.32% curn. yrelerrcd, D

6. 4.35% curn. preferred, E

7. 7.28% curn. preferred, F

8. 7.40% cu m. yrcferrcd, G 100 100 100 100 ant

                                                    <<aa<<
                                                          ~

50,000 shs. 50,000 shs. 600.000 shs'. 400,000 shs.

                                                                                       $ 79.68   $ 93.32         4.32 4.35 4.32 435 103.50 102 115 115 1003(- 89 I

101 - 99aa 9 925% cu m. preferred, H <<ns<< 500,000 shs. 115

10. Common 100 No par .... 8333,056,849 shs. 8)3 09 IR2.69 40ia 23am ~4,$ - 28

{HSubjcct to change; also callable for sinking fund-scc text. {I]Sold privately. Q)issued ln Jan. 1973. ESee text. 8)Issued ln Nov. 1972. Based on weighted aver. no. of shs. outstg. as reported by company. {I)Not cnllablc. {i]includes $ 1.10 paid prior to 2-for-I split. {)3Issucd an. 17, 1914. 53IFor dcscrlptlon of bonds see hfoody s Municipal dc Govcrncncnt service. I)After 2-for-1 split; before, 723i-59{a. 51ssued hIay 22, 1974. ((IISSued la Aug. 1973. {L<<ISSued in OCt. 1973. {I8ISSued in Nay 1974. HISTORY In August, 1958. company sold its three gas Directors lants nnd distribution systems. located in David Blumberg, Miami, Fla. Incorporated ln Florida. December 28. 1925. .Ilnml, Daytona Beach snd Lakeland, to The G. W. Enghsn, alt. L<<uaerasle. Hn. Owns nnd oyerates properties formerly cerned Houston Corp. for $ S.137.000. R. H. Fits, Coral Cables, Fla. by hliaml Electric Light dc Power Co.. hilnml R. C. Futterton, Coral Cables, Fla. Gns Co., hliaml Beach Electric Co., Southern L. E. Wsdsworth, Bunnell, Fla. Utilltlcs Co. Daytona Public Service Co.. MANAQEA1EflT

                       ~

W. N. Preston, hfinmi, Fla. Ormond Supply Co.. Lakeland Gss Co.. St. Officers B. W. Fowech 8<<c<<aves Fin. Johns Electric Co. and Southern Holding Co. R. C. Fullcrton, Chairman G. F. Bcnnctt. Boston, Mass. and other prooertles. Marshall McDonald, Pres. dc Chief Exec. J. M. McCnrty. Ft. Pierce, Fin. American Power dc Light Co. which form- Olf hfnrshnll McDonnld. Miami, Fla. erly owned entire common distributed its B. H. Fuqun, Senior Vice-Pres.hfsasge- E. H. Price, Jr. Bradcnton, Fla. holdings Feb. 15, 1950 to its own stockholders ment Planning J. P. Tnravelln.

                                                                                                                                                   ~

Coral Springs, Fla. pursuant to dissolution plan. H. W. Page, Senior Vice-Pres.hfsnage-On hler. 31, 1959 merged wholly owned sub ment Planning Chief Snglneerac R. T. Culberson, Ccn. sldlnry Utilities Land Co. On April 4. 1941 the City of Nlsml took J. G. Spcnccr. Jr., Senior Vice-Pres. Eng. W. H..Rogers, Jr., Power Plant Eng.

                                                                                                                         ~

hfanagement Planning Purchasing agent: B. V. Correll title to the water distribution system of com- Loftln Johnson. Senior Vice-Pres~hfna- Annual Meeting: In May as deslganted any's subsidiary. Miami Water Co., which sgcment Planning Board. by'hc t nurchsscd for $5',5,136,265. R. W. Wall. Jr. Senior Vlcc-Pres. hfnn- No. of Stoekholdersc Dec. 31, 1973: Pre-On Ayr. 15, 1941. sold cocnpsny's subsidiary. ngcmcnt

                                                                                  ~

Planning hilsml Beach Rsllwnv Co., which operates bus E. A. Adomat. Exec. Vlcc-President fcrrcd, 1372; common, 28.913. transportation service ta hilsml Beach and F. E. Autrcy, Exec. Vlcc-President No. of Employeest Dcc. 31, 1973. 9~5. across the causeway to hfiami. to William D. Auditors: Ifnikins d: Sells, Miami, Fla. Pswley. Consideration wss $ 311.378. J. J. Hudlburg. Exec. Vice-Fresident On Jan. T. 1946 sold company's subsidiary. L. C. Hunter, Group Vlcc-President General Officer 4200 Flngler St., hBarnl, Consumers Water Co.. distr{but{act water at R. G. hfulhollsnd, Croup Vice-President Fin. 33134. retail in Coral Cables. Fls.. to Leddy-Wheeler H. L. Allen, Vice-Pres.Purch.. Stores, BUSINESS dc Co. Orlando. Fls.. for 5927.400. Construction dc Fuel On Nunc 21. 1951. sold electric yroyertles st electric yower and lieht service to Perry, hladlson snd hlontlcello to Florida E.

                                                            'R.

I Blvsns, Vlcc-Pres.Power Supply a Sunolles total of 570 communltlcs, including h'ilsmi. Power Corp. for $ 1.6S0.000. p!us cost ol yrop- E. Uhrlg, Vlcc-Pres.Nuclear Affairs hilaml Bench, Corst Gab{ca, Hi<<lean. Holly-erty additions Jan. I to June 21, 1951. A. M. Davis, Vlcc-Pres. wood, Ft. Lauderdale, Palm Beach. On Msr. 2. 1954. sold certain electric prop- D. D. Dunlop, Vlcc-Pres.Environmental Beach, Dnytonn Beach. Ormond. Nel-West'alm erties situated ln Hillsborough County. to Plsnn. dc Research bourno, Cocoa. Tltusvllle. and St. Augustine Tsmys Electric Co. for $ 205.866. R. J. Gardnec, Vlcc-Pres.-Strategic plan- on the east coast: Ft. hlycrs. Punta Cords, On Dec.!S. 1954. sold company's ice prop- ning Sarnsotn snd Brndenton in the western pnrt; erties and one ice plant owned by subsidiary. W. N. Kleln, Vice-Pres.Nlsml Division nnd Okeechobce, Pnhokee. Belle Glade. Fs-Utilities Land Co.. to City Froducts Corp. for J. A. Lssieter, Vice-Pres.Engineering lntka, Lake City nnd Live Onk ln ccntrnl and 51,100.000. hL C. Cook, Treasurer nccrthrrn parti ol the state. Population served, On July 6, 1955, sold company's Fnlntkn Gns 3,800,000. All electric properties arc intcrcon-ropertlei to Putnam Css dc Fuel Company H. P. Wtllinms, Jr., Comptroller nectc:d by transmission lines <<nd operated as or $ 1S6,719. A. E. Ffelffer, Secretary a uniiled system.

V'

                                  ~        MOODF'S PUBXXC UTXXXZ'T i>IANUAI I
                            ~ I       ~

Territory Served'2LORIDA POWER 8c LIGHT COMPANY

                                                                                              ~ ANILT~ 4
                                                                     ~ I~ t ~ ~ I                                                                          Al IIICCLC I ~ ~ ~ ~ IL<<uvtf
                                                                                                            ~

VN'll Le ~ I ~ i

                                                               ~ I~ L ~ R 1~   IITC ~ ~ I                                                                    ll   ~~                       i\VV 0(KN
                                                                                                                                                                                                  ~  CT. A(ICL'CNTC K wt>>re(      KeCN IllieIII                               w Otl
                                                                                                        ~
                                                                                                                                  ~        LA ~ 400            rale ea~
                                                                                     ~ lore taLAWC Teer<<  Ca/i I
                                                                                                              ~ ~~                                atf CLICT<<C                   L Orr
                                                                             ~          ftlf  Cil                                                      4 4 ~ I~    ~                                e(L OKNT Qt(KA                                           'I r        . T(e(004 OCKI(

W litOaaeK KLe 1 av wK KK<<r ~ 11 ~ I~ w I~ wr it0 i>> ~ Il ~ I ~ I~ , Irrl \r, 1 il 4'E>> eaiel ~ ECIIT I'I

                                                                                                                                                                                           ~ ~ a ~~  I                          I 10<<COI t(ATT
                                                                                                                                                                                                                                                                 ~

5 Kwft VLNK li e tl ~~ ~ tKK K<<K KKIK( I

                                              \   WK it<<>>it I  <<e ~                       frLI KwiLLC                                  ~ I I I ~ ~ t II~ I ~                                                                                 W                 SKII<<NK Oraar
                                                                                                                                                                                                                                            " OOLtraC
                                                                                           ~>>                              t<<et                                                                    ~  ~   ~ I ~ LI Wl
                                                                       ~  Cil                               ~ YK                                                          t~L      C C>>w ieliat
                    ~                                                                                                 I
                        <>rewaeT(          '+                 e<<cr
                                                                                                                                                                                                                                  ~ f>>    -  I
                                                                                                                                                                                                                                                      ~  Kt VIV'                                                                                                                                                                              I~ Ketl l~e(NIL\                er   r          ~ aie
                                                                                 ~                            Lac ~ rcq
                                                                                                            '%4~
                                                                                                                                                                                                                            ~ 0~I0 ~
                                                                                                                                                                                                                                  ~ Ir(             0  (00KINA Nl ~ ~ CC                                                             I                  (L
                                                                                                                                                                                                               ~  illlee l Lli~                                                         I0  ~
       ~ awi                                                                /                                                                                             ~ al  \I aaf
                                                                                                                                                                                          ~ ~~           ~

I KTCWCON IKA

                                                                                                                                                                                                                                                             ,'ILKK   alt Iw ~                                                                                                      Mt.<
    ~ wwe                                                                                                           KKI                                                     ~  II~    LA>>IIaar                                                                  ~   I ~ 'K
                                                                                                                                                                                                                                                          .. QK Ke << el I LIAC
                                                                                                                                                                                    ~1 L>>ltt tLI'lf OA(It@00(C I                           I tr I
                          ~ OIK IALCICe
                                                                                                                                                                                                                                                                      )"   illtl(O(

4 II 'et(IOI r~ . Ir.,'I rpe, ~I . ~ wr ~ . I~ 4Tf

                                                                                                                                                                                                                                                                            ~
                         \                                                                                                                                                                                                                                              p LI(Cli1                                                                                                     Wtr i<<ee>>                 I~ ~ ~  ~

1' Kew 4 w>>hefK 4 ~ rirtll0LK<<w>> ial ~ (~~~ 41(L- ICeC Le . ~ I Ae ~ Kel LIV iaieK tat 4 t<>>> L Kr ~ I j--e ~ ww la I<<ea(i ~ ~ t 0* ~ I~ $ v IL OCAOI I iti4ff ~ ~ LLI I Tat talat 1 (I Clf ff K>> INSERT LEGEND ~ A ~ I ELECTRIC TAAhSNISCICN LLIICS ~ 99 ~ ((5 I'59 945NV H 00 K 00 00 ELEcTRc T(LLI(sr455(ck L(hcS L(IICER coNSTR(cTIok 4 4 ~ >> 4+ 0 CLCCTR. TR<<LLSKSSON LILCS PLAhhCO tONT Ct Ih CRCOhhCCTCCN CT>>CR 5 CCTALC LALCS CCNCRATLNC STATIONS 4TCCS & CCKINIAT(CS SCRVEO ELECTR(4TY ~ I ~K>>~ tl eC IIA c44900(04 K041 440IO(f c 401 001 IhovlI

                           ~  ~      ~     K       ll       et        K awl   w    Ml                                                                                                          Kl Mf

4" MOODF'S PUBLIC UTILXTTMANUAL 1547 The territory served iles wholly svlthln 1926, 18,750 k.w. installed in 1947 (thcsc two ycr KWH generated (mills) Nuclear: 1973. pcntnsular Florida. It includes the Cape Ca- units retired in 1964), 156,250 k.w. in Mey, 1.75; 1972, 443. naveral areas, Atlantic 8$ Gulf Coast winter ! 1959, 43G,OOO k.w. in July 1572 and 436.100 1924 Construction Program cstlmatcd to and summer tourist areas, thc state's largest k.w. added in Junc 1973. Fuel-oil and natural cost SSG3.400,000 includes gcneraUng stations, and most rapidly developing manufacturing gas. Net gcncration (k.w.h.): 1973. 2.855.436.000: 345.400,000; transmission and distribution center, and areas having extensive develop- 1972. 1.766.520.000. Fuel cost yer k.w.h. gen- $plant. $ 185.900.000 and other addlUons and im-ment of citrus, beef end dairy cattle and erated (mills): 1973, 7.06; 1972, 5.41. provements $ 32.100.000. winter .vegetables. Rtviera Locarea near West,.Palm Beach. A cooling system at the Turkey Point Plant Company is also considering engaging in Installed generating capacity, max. gross739.- and gas turbines with a generating capability one or more new business activities relating 590 k.w. name plate rating,.43.750.k.w..unit of 683,000 at Ft. Nycrs aro scheduled for to fuel supply including exploration, de- placed in operation ln 1546, 75,000 'k.w. addi- completionKW in 1974. The installation of 523 velopment, producUon. purchase of crude oil, tion completed in 1953. 310.420 k.w. completed hDV of combined cycle gas turbines at Pal-transportation and refining. In 1962. 310.420 k.w. completed in 1963. Fuel- atka, one 8$ 0'hltV fossil unit at Manatee and Subsidiary Joint Venture: In Mar. 1974, oil and natural gas. Net generation (k.(v.h.): one 890 NW nuclear unit at St. Lucle are Fuel Supply Service. Inc. subsidiary and 1973. k.w.h. 3.909,G22.000; 1972. 3,423.525.000. Fuel cost scheduled to be placed tn operation dur-Amoco Production Co., a subsidiary of'Stand- per generated (mills)t 1973, 6.10; 1972. ing 1985. A second 850 MW fossil unit at

                                 ~

ard Oil Co. (Indiana). agreed on a 3-year 5.41. Manatee is expected to be complete in 1976. oil and gas joint exploration program in Port Everglades-Installed generating ca- During 1977 an initial &50 MW fossil unit central Fia. The partnership is to be known pacity of 1,679,0S6 k.w. consisting of two 22S.- will bc placed ln service at Martin, followed as Amoco Florida. Thc 2 companies will share 250 k.w. units, five 2,750 k.w. diesel driven in 1978 with.a similar unit. The second 890 equally in subsurface leasing. seismic surveys units and 12 34,228 k.w. gas turbine units. One MW nuclear0unit at St. Lucic is scheduled and the drilUng of as many as 10 exploratory placed in operation In Apr. 1960, the second for initial operation ln 1979 and a third 8$ 0 wells ln a 26-country area. Amoco Production Apr. 1961. Two 402,050 k.w. units, one placed NW fossil unit at Martin is schcdulcd for

                                                                    ~

will servo as managing partner. bc responsi- 196S, in operation June, 1964, .the other in Apr. 1980. ble for day-to-day operations of the part- thc diesel&riven units ln Jan. 1969 nership, and contribute about $ 5,000,000 of natural and gas turbine units In 1571. Fuel-oil and FRANCHISES existing oil and gas leases covering about 1973, ges. Net gencratlon (k.w.h.)-steam: The franchises under which tho company 1.000,000 acres. Fuel Supply Services plans to 7,322,2GI,000; 1972 7,960,697,000. Fuel cost

                                                                                              ~                                                     tn the various munlctpallties are                   'pcratcs invest SS,S00,000 in the program and will per k.w.h. gcncratcd (mills)-stcam:                                    1973, 6.16; gencraUy saUsfactory and have no unusual or share equally in any opcrattng expenditures 1972, 4.97. Net gcncratlon (k.w.h.) gas tur- burdensome reautrements.

and ln any crude oil or natural gas dis- bines: 1973 299,911,000; 1922, S18.S98,000. Fuel ExpiraUon dates of franchises ln the more covere'd by Amoco Florida. costs per k.w.h. generated (mills)-gas tur- important munlcipalltlcs are as follows: bines: 1973, 8.98; 1972, 10.41. Electric: hItamt, 1984; Daytona Beach. 1977: PHYSICAL PROPERTY Cutler-Originally constructed in 1948; last West Pahn Beach. 1927: Ntamt Beach. 1982: St. Rlectrict Generating facilities owned by the unit installed in 1971. Installed generating Augustine, 1983; Fort Lauderdale, 1979; Coral capacity, max. gross, 351400 k.w. name plate Gables, 1997; Palm Beach. 1981: Sarasota. 1983. company comprises 10 generating plants with rating. Fuel-oil and natural gas. Net gen- In 1971 one franchhe divas granted. in 1972 a gross capability of 9097.000 k.w. Company eration (k.w.h.): 1973.'1,550,014,000; 1572. 1,954,- two franchises werc lost but a larger one owns transmission anci distribution substa- 079,000. Fuel cost yer k.w.h, gcneratcd (mills). was gained due to a merger of two cities tions with a total transformer capacity of 1973. 5.52; 1972, 5.04. and.in 1973 one franchise was granted. 42,032,490 k.v.a. and 32,649 mlles of electric Palatka-Originally constructed in 1951 Since 1945, 163 franchises werc granted. lines Including 1456 mlles being operated last unit installed in 1956. Installed generat-at 240,000 volts, 1 154 mlles at 138,000 volts. ing capacity max. gross, 109,500 k.w. name REGULATION 622 mlles at 115,000 volts and 499 mlles at plate rating. Fuel

                        ~

69,000 volts. oil,and natural gas. Net. Company ls subject to continuing regula-The most important generating plants are generation (k.w.h.): 1973. 556,894,000: 1972, 508,- tion by Florida Public Service Commission as follotvs: 8$ 7.000. Fuel cost yer k.w.h. generated (mills): as to rates. service, accounting. Issuance of Lauderdale-Located on thc New River with 1973, 6.95: 1972, 5.26. securities. and certain other actlvitlcs. Corn-a max. name plate capacity oC I 133,972 k.w. Fort Nycrs Placed ln operation ln Nov., pany was authorized by FPSC to increase rates by $ 14.6 million effcctlve on and aRer The initial Installation consisted of two 25030

                                        ~

19$ S. Installed generating caoacity max. gross. Jan. k.w. name plate rating consisting oC 31, 1973 based on 1971 sales and $ 40 k.w. units, one of which was placed in opera- 558.300 one 156.250 k.w. unit placed in scrvicc in million effective on and after Ayr. 3, 1973 tion ln December, 1926, and the other in Jan- November based on 1972 sales. The new tariff schedules uary, 1927. These two units were retired ln 19SS and one 402,050 k.w. unit 19S4. An additional unit of 31.250 k.v;. was in- placed ln scrvicc ln July 1969. Fuel oil is became efCective on and after Nay 10. 1973. stalled in 1940 and retired ln 1965. Two 156.- used. Nct generation (k.w.h.): 1973. 2.833,776,- $ 6.2 million Company applied in Aug. 1973, to FPSC for 250 k.w. units were placed in operation. one 000; 1972, 2,9G7698.000. Fuel cost pcr k.w.h. fcctlvc on and rate increase which became ef-ln Sept. 19$ 7 and the other in Apr. 1958. generated (mtlfs): 1973, 7.32; 1972, 5,59. after Nov. 30, 1973. Twenty-four units of gas turbines were in- Cape Canaveral-Placed in operation ln Federal Power subject Company is to regulation by the in various re-stalled: 2 in Nay 1970: 4 in Junc 1970; 3 in April 19GS. Installed generating capacity max. spects; keeping Commission of accounts. thc acquisition July 1970; 3 ln Aug. 1970; 12 in July 1972. gross 804,100 k.w. name plate rating consist.- and disposition of certain facilltics. and juris-Fuclwil and natural ges. Net generation ing of two 402.050 k.w. units, one ylaced in diction with respect to wholesale sales to cer-(k.w.h.)-steam: 1973. 1,678.222,000: 1972, 1,953,- service in April 1965, the second in May 1969. tain electric coopcrativcs and municipalities. 246 000. Fuel cost ycr kdv.h. generated (mills) Fuel oil and natural gas. Nct generation In Jan.

~(earn: 1523, 6.63'922. 4.59. Nct generation (k.w.h.): 1973. 4.605.197,000; 1972, 4.840,446,000; application increasing electric rates to whole- 1973,     Company         flied    with     FPC     an k.w.h.)-gas turbfnes: 1973. 642.695,000; 1972, 1921, 4,535,922,000; Fuel cost pcr k.w.h. gcn- sale customers for resale. Higher rates cx-71.773,000. Fuel cost per k.w.h.                          cratcd (mills): 1973, 5.63; 1972. 4.77.

(mills)-gas turbines: 1973. 8.07; 1972, generated 9.45. Turkey Point Installed generating capabil- nected to produce $2.3 million werc placed effect on Sept. 1. 1973 and Jan. I, 1974, Miami-Insta)led generating capacity, max. ity of 2.337.790 KW nemo plate ratings con- which arc subject to refund. ross, 46,000 k.w. name plate rating. The sisting of two 402,0$ 0 KIV, onc placed in

f. ittal 27,500 k.w. unit was placed in opera- operation in April 1967, thc other ln April RESIDENTIAL RATES tion in 1925 and rctircd In 1964. A 46,000 k.w. 196S, five 2,750 KW diesel-driven unit was placed in operation in Juhe. 1948. available in Jan. ISG9, onc 759,970 units made Electrlct Monthly rates availablo ln all tcr-Fuel-oil and natural gas. Nct generation Unit placed in opcraUon in Nov. 1972Nuclear rltory served on Nov. 30. 1973:

and a First 35 k.w.h. or less $ 2.00 (k.w.h.): 1973. 90.542,000; 1972, 226,625.000. Fuel second 759.970 Nuclear Unit placed in initial Next 25 k.w.h.-4.44c pcr cost pcr k.w.h. gcneratcd (mills): 1973, 8.64; operation in Junc 1973. Fuel-oil. natural gas Next 100 k.w.h.3.23c pcrk.w.h. k.w.h. 1972, 6.16. and nuclear. Nct generation (K W H)-steam: Next 340 k.w.h. 2.12c yer k.w.h. Sanford-I.ocated on the St. Johns River. 1973, 4,560,303,000; 1972, 4,094.997. Fuel cost ycr All additional k.w.h. 1.92c per k.w.h. Installed gcncrating capacity max. gross, 1,- K W H generated (mills)-stcam: 1973, 6.31: Minimum bill, $2.00. 028,450 k.w. name plate rating. The initial 10.- 1972. 4.91. Net gcneratlon (K W EI)-Nuclear: Note: The 000 k.w. unit placed ln oyeration in Nov., 1973, 4,431,556,000; 1972, 43,394,000. Fuel cost adjustment for changes In fuel costs. above schcdulcs arc subject to OPERATING STATISTICS OPERATING STATISTICS, YEARS ENDED DEC, 31 ELECTRIC (Complied from reports filed with Federal Power Commission) Customers: 1973 1972 1971 1970 1969 1968 1967 Residential 88 rural 1.397.228 1485.027 I;194.01S . 1,115.070 1,045.744 985,706 934,843 Commercial 8$ industrial 164.252 144,9$ 1 134.4S7 126.408 120,636 113.013 I OG.236 0 ther K6.16S 12.136 11.914 11.646 10,967 10.501 10,255 Total 1,567.648 1,44G.114 1.340.416 1,253,124 1,177.347 1,109,220 1,0$ 1,334 K.w h. sales (000)t Residential 8$ rural 16.822,976 14.652,751 13,080.408 11,814,172 10,277,902 8,640,243 7,211.301 Commercial 8$ industrial 12,935.454 10.8$ 7.837 9,631.2$ 7 8419.6$ 2 7.503,032 7,469,084 6,703,316 0 ther (j)2.708,670 3.417420 3.0762)87 . 2,781.557 2,664,238 1,641,990 1,374,803 Total 32,467,100 2S,927 J)08 2$ ,788452 23.115~1 20,445,172 17,751,317 15,289,420 Revenues: Residential 88 rural $ 382414,793 $ 302.8$ 0.319 $ 2S8.270.899 $ 223.330,010 $ 196,00S.874 $ 168,330.201 $ 144,501 167 Commercial Sc industrial 285.461.444 215.040.991 182.716.060 155.583.437 138~2,428 131,174,804

                                                                                                                                                                                                   ~

118,929.336 0 ther 242.177474 49,442,730 41.764,957 35.381411 33,433,166 23.G53.556 21,845,601 To tal 5209,859,5U SNI.554,040 5482,25 4.0 I 6 ~ 414,294,958 5554,294.460 5529.I58,565 5205.526.I04 Steam k.w.h. generatert . 29,960,093.000 29,743 J)67.000 27,045,555,000 . 25,147,177,000 22,361,804.000 19,354,507,000 Nuclear k.w.h. gcncratcd ... 4.431.$ 56.000 43,394,000 16,640,088.000 Oth<<r X.wh genrr$ 8$ rd N= = =-=-- 944,822,000 1,393,765.000 722,1 16.000 247,023,000 2,062,000 24,000 93,000 Nuclear test operation 249.497.000 22.632,000 Total .......... K.w.h. purchased Sc nc! Interchange Co. use and loss and unaccounted System peak load k.w... for (401,364,000) 35,184.604,000 2,717.504.000 6,894,000 0 294,675,000 31,498.333.000 2,570425.000 6,011,000 116,220.000 27,883851,000 2,059.021,000 5,378,000 d281,477,000 25,112.723.000 1,997,342.000 5,001.000 d 1 45,802,000 22,218,064.000 1,772.892.000 4,329,000 d7,183,000 19,342,348,000 1,596,031,000 3,789,000 23S,000 16,640,41G,000 1,350,996,000 3,160,000 Electric ................. SALARIES AND WAGES Utility plants, other... $ 52.826.046 33.185,709

                                                                           $ 24402.065 29,977,39$
                                                                                                 $ 66.477.131 25,015.90G
                                                                                                                      $ 59,444,147 20,793,800
                                                                                                                                           $ 50.598.211 15,910,607
                                                                                                                                                                   $ 40.712,517 15,097,139
                                                                                                                                                                                        $ 36,692,529 13,8$ 0,471 T I I   ...................... ~ I20.0 II,955                    0405,029,4N            80I.409.022          $ 80.2N.949          806,508.840             $ 55,009,858         $ 50,543,000 (DDurlng May and June, 1973 approxlmateiy 12,600 customers wero transfcrrcd from Other Sales to Public Authorities as Collows: 7,000 to ResldenUal;      S,600 to Commercial.

1548 3IOODF'S I'VBIZC VTZLXTF 3fANUAL IN COME ACCOUNTS COMPARATIVE INCOME ACCOUNT, YEARS ENDED DEC. 31 (Tnxen trom reports hied with Federal power couunission) 1973 1972 1971 1910 1969 1968 1967 Electric operatlrlg revenue $ 714.012,430 $ 570,842,500 $ 484,830,18$ $ 416,0$ 1,924 $ 369,5U5,924 $ 324,60$ ,590 $ 285.326,104 Opcraunx expenses 325.015,805 261,153.502 209,365,927 167,001.417 140,238.012 I IU,721,271 106,1nn,268 hiainienance 51490,359 41,829,649 36,948.475 31,437')93 23,47$ ,9$ 2 19,279,109 16.834,101 Ireprccratron 64>720 053 5 .864>247 4791814732 42.313.717 38,239,352 34,553,884 31+22,337 Amorus.-limited term utility inv. 94,954 34,040 12,750 13.752 8,079 8,019 8,133 Feaerar income taxes 28,712,13'1 23,500,041 42,203,009 37&2,224 49,3S5,799 46,638,629 35,113,vri7 Other income taxes ... 4,559,798 3,939,426 Qjfnc. taxes dcfcrrcd In pr. yrs. cr1,360,359 cr8 93,301 cr893307 cr1.272.468 cr923,244 cr923,244 cr923,244 r Prov. for dcfcrrcd inc. taxes 21.639,159 9,245,606 4,219,299 1~0,885 crier'nr taxes 59,746.181 47,011,418 40.677.129 35,265.841 31.36$ ,638 28,268,921 27,057,197 minvestment tax credit ad)ustmenta 9DI64,458 11,701,312 2,118,380 295479 2M3J)24 2,186,163 2390,969 Total oper. rev. deductions $ 6$ ,88$ $ 88 456,445,594 377412459 318,589.685 284.173,412 2$ 0,332,812 218,597,848 Net operating revenue 150,329402 114496~6 107,617,626 97,462,234 85~6,512 74,275,778 66,728MB Other income 27,081,475 30 ') 93,606 18,41546$ 728459 1,150,489 334,570 265,3 IS Gross income IV7.410.677 14$ ,290,112 126,033,191 98,190,798 86,487,001 74,610,348 66,993,574 Other income deductions-net or 6,270,429 cr 1.9 r 0.135 cr5,024.837 589,704 537,864 424,718 333,519 interest on rang term aeot 69,126,904 .56,669,492 46,639.031 34,977,648 30,606,450 23,382,401 17,043,902 Ainvruz.-debt disc. Ss exp., net cr110,961 cr178,566 cr162.147 Cr94,110 cr89,725 cr61,088 cr45,247 Other interest charges . 6,166,691 6,952,654 5,579.979 3,491.213 2,006,016 1,954,322 2,729 214 Total income deductions 68,852,205 55,473,44$ 47,032,026 38,964,45$ $ $ .060.608 25,700,353 20,0G1,448 108.558,472 89,816,667 79,001,165 59,226,343 53,426.396 48,909.995, 46.932.126 Retained earnings, begin. of year 148,057,660 95,535,743 200,173,328 172,799,73$ 147,537,089 125,127,721 103,023,657 Misc. cred its 23,753 32.169 Total credits == = 256,616,132 185,754,410 279,'174,493 232,026,078 26,549,000 174,0G1,469 149,987,952 Preferred dividends 6,079,770 1,614,750 1,614,750 1,614,750 200,963,485 1,614,750 1,614,150 Common diviacnas - -- - 38,429450 36,0$ 0,COO 32,224.000 29,638.000 1,614.750 24,ssl,ooo 23,213,000 4$ 91$ , 0 811 .....-- -....:-- !SD.OOO.ODD ---.. -..... 80,0$ 0 $ 8,481 R I I Dd I I 8, D . $1 ....... $ 818,107,11$ $ 148.06'1,660 S98,9$ 8.74$ S800.77$ .$ 80 $ 17$ ,799,785 8747,6$ 7,0SD 8188.187.7' Sec General Notes under Balance Sheet. bc restored to income after period of ar$ $ <<- (I)Represents reductions of taxes resulting Rcprcscnts nct reduction in taxes result- tisation, gcncraUy in amount equal to ln- from,accclcrated depreciation on qualificct lng rruirr accelerated amortisation tnxwisc ol crease in1'edcral income taxesresulting from additions made to depreciable plant subse-cost of emergency facilities. This provision, lack of deduction for tax purposes for normal quent to Jan. I 1910. ~ required by state regulatory authorities, will denrecintinn nn those facilltics. E1971: Transfer to common stock account. Record of Earnings, yca rs ended D ec. 31 (ln $ ) r Oper. Oper. Main- Dcprc- Net Oper. Gross Income Net -Com. No. of Ea rn. Pcr Revenues Expenses tenance clarion Taxes Revenues Income Deduct. Income Diva. Corn. Shs. Com. Sh. 19GV 285+26,1OI 106.155,268 16,834,101 31,330,470 64478,005 66,728456 66,993474 20,061,448 46,932,126 23413,000 13,900,000 3.26 1966 26S,6)2,021 97,410,725 416.044.150 28.59S,316 62,553,456 63,665.314 63,906,925 16,6C5.950 47456,939 21,CSO,COO 13,90U,CQO 3.29 1965 249,091,23S 88,524,103 14,903,856 30.935,302 59 J) 58,085 54,$ 69,892 54,989 J)50 14,402 J) 72 40,586,918 19,448,000 13,600.000 2.87 12,901.896 27,8S8,452 62,149,461 52.528442 52,630,726 12435,667 40,095,059 18,632,000 13,600,000 2 J)3 1964 15$ >3 1962

         ......        23$ ,722,573 220,749,581 200,612,839 80,2$ 4,421 73,875,815 67,957,720 11.661,373 26,206.631 10,736,662 23,438,681 62,361,850 55,504,502 46,643,912 43,03$ ,274 46,829,594 43,167,846 10,6G4.956 36,164,638 10,103,036 33,064,810 17,136,000 16,048,000 13,600,000 13,600,000 2.54 231 1961                  181,728,604       63,372,575    10,340;131 20,304,652                49,504,821      38,20G,42$        38,4S1,721         8,233,341 30,254,38 G                14,416.000       13,600.000            2.11 1960                  172,6S0,046    ,  61487,835        9,221,9$ 3 17,604,655             47,253.682      37,011,917        38,421,159         8,094,42G 30,327~3                  13,000,000       13,600,000             2.11 1959                   154,850,414      55351,581        8,772,836 15,614,719              41,771,466      33,339,412        33,989,429         6 524 589 28,064,440                11,41ri,vvo       13,2UV,VVO            1.93 1958                  144,$ 83,377      54,444,181       8,423,639 13,914,686              37,936,940      30,163,931        30,502,38$         5,729,357 24,773,02T                  9.699,000        6,600,000            35I 195'7                 131.338.443      53,075,V36       7,112,616 12,090,018               33,370,469      25,689,604        26,279,254         5,884,776 20,394,478                  7,965,000        6,3V0,000            2.9S 1956.                 110,133.930      42,659.555       6,652,417 10,964,845               28,155,337      21. 661,'1 16 >>2.V)U.V13            4,540,259 17,138,754                  7,320,VVO        6,000,VUO           2.55 1955                    93,UG8.816     35,611,J15       5,604,620         9,465,091        24;J25,419      18,002,430 18,276,816                4,521,605 13,755,272                  6,012,750        6,000,000            2.05 1954                   1 9.475.884     31.416,443      5,3Q6,889          8.5G4,463        19,343 888      14,844,202 14,913,56S                4 +35,250      10.618,1 18            4,5VB,OVU        2.645$ ,VVU         3.51 1953.                   69,597,232     21,337,404       4,801,341         T,363,281        17,815,896      12,2754JIO )2,436.$ 55               4,044.110         8,392,18$           3,920,000        2,450,000           3.01 1952                   61.408.593      24,410,057      4,007,502          6,523,013       15,449,423       ll,ol8,538 '11,202,578               3.580,925         7,621,653           3,552,500        2,450,000            2.84 1951                    54,722,682     21,797,143      3,948.505          5,430,336        13,638,371       9.908.320         9,989,902         3,283,171         6,VOG,731           3,430,000        2,450,000            2.50 1950                    45,S85.42G     18,421,263       3,T10,771         4,203,026         9,637,575        9,852,751 10,070,986               3,676,432         6,394,554           3.0G2,500        2,450,000            2.43 1949.                   40,476,548     16>703,207       4,212,545         3,333,393         6,905,009        9,322,394        9.372,164         3,613,275        5,758,889           2,'730,000        2,450,000           2,17 BALANCE SHEETS                                                 COMPARATIVE BALANCE SHEET, "AS OF DEC. 31 (Taken from reports flied with Federal Power Cornrnlsslon)

ASSETS 1973 1972 1971 1970 ~ 19G9 19GB 1967 Total utility plant $ 2,640+36,426 $ 2,302,830,954 $ 1,979,435,411 311,250,885332 48$ 33C

                                                                                                                                  $ 1,663,287,407        $ 1,429,923,2GI                $ 1,28$ ,641,375         $ 1,130,5 C6,336 Less: Accum. dcp. Sr amort                                  423,712.304                                                              257,225,022             2G6.393,215                   234,704,384            ,  216,898,591 Nuclear fuel                                                  23,707,856              23,104,043                11 ~ 138,275 Net utility plant                                   -

2,240431,978 $ ,954,644,)12 1,658,0S8,350 1,36C,062,385 I, IC3,530,04 G 1,053,93 G,991 913, 667,745 Other physical property =. 1,047,850 3,266,743 423.248 3G2,190 393,131 431,543 433,537 Non.current receivables 2G.001 26.200 I 7,000 89,829 Other investments B.S28.857 26.826 25,200 2$ ,301 25,301 Special funds 13486,589 12,751.102 12.253,230 11,757,736 11.324.24G 10,984,114 10.675,316 Total lnv. Sr fund. accounts 23.163.29G 16,044,671 78.708870 12.146.12C 11,742,578 11.440.$ 66 11,223,983 C nsh 1,516.112 I 15$ ,631

                                                                                          ~

8,694.587 ~ 7.451.t 88 6,414.907 7,8$ 4.948 7450.771 Special deposits 214,346 f0.343 46.910 80.376 102.334 117,5GS 195.536 working funds 1,134,675 362,015 412.915 403.150 402.350 366,550 360,0$ 0 Temporary cash investrncnts 2.750,000 19.847,022 6.000,000 Notes receivable . 7,000 75,447 775,089 Accounts receivables. net 55,699,395 42.426550 33.66 l.322 26.238.559 24,260,490 21.391.010 15.72$ .739 hlaterials and supplies .. 66 4%'.058

                                                             '.771.836 46502.4$ 8                42.483 818              31.724.1S7             33,2G5,808                     28.247,809               28,6S6,)89 repayments                                                                           3,1C5.8$ 8               2,061.600                1,935.814               1,230,274                       650, G31                1,120,837 Other current nnd accrued assets                                3.602.233               3,427,174                 2.330,417              3.023.728                2,644,511                    2.012,994                  1,433,630 Total currert Br accrued assets                        132.420.655              97,040.429               89,654.689               79.607.102             88,115,096                     66,722.584               55,681.811 EUnamortizcd debt disc. 4k exp.                                                               68,502                  80,198                  92.574                  129,729                      206,588                   283,766 KUnamortiscd debt cxpcnsc                                        2.065.774 Misc. Srcrerred debits                                          3,814,340                   438J)93                 497,509                 142.546                  49$ ,393                     109,604                     Sl,900 Total deferred debits                                     5.880.114                 $ 07.35$                  $ 77,707                                         625,122                      316.192                   368.666 Totnl assets                                     $ 2,401,G96,043         $ 2,068,236,G07           $ 1,761,06$ ,$ 88       $1  4'8    0$ 1 333     $ 1 "G4 072 84                $ 1 13" 424 525             $ 980 948 235 LIABILITIES 4!S% curn. preferred ($ 100)..

4(>rSSR curn. preferred. A ($ 100) sir 67$ curn. preferred. B (sloo)

                                         ..                 $ 10.000.000 5.000.030 5.000.000 BIO.CCO.OCO S.COO.OCO S.cce.cco
                                                                                                             $ 10.000.000 5.000.000
                                                                                                                 $ .000.000
                                                                                                                                     $ 10,000.000 5.000.000 5.000,000
                                                                                                                                                             $ 10,000,000 5.000,000 5,000.000
                                                                                                                                                                                           $ 10.000.000 5.000,000
                                                                                                                                                                                               $ .000,000
                                                                                                                                                                                                                     $ 10,000,000 S.OQO,QCO 5.000.000 4rS.g, curn. preferred, C (Sloo)                                 6,2$ 0.00 0            6,250,0CO                 6,250,000               6,250.000               6.250.000                     6,250.000                 6.250,000 4$ 1% cunt. preferred, D (Stook                                  5.000.000              S,CCQ,CCO                 s.'Qoa'.ooo             5,000.000               5,000.000',000,000 5.000.000                 5.000.000 445% curn. preferred. E ($ 100)                                  5,500.000              s.'ooe.'eco               5.000.000               5,000.000                                             5,000.000                 S.000,000 7 288R curn. Prcfcrrcd. F ($ 100)                              60.000.000             60,000.000 7.40 curn. prcfcrrcd, G (Sloo)                                40,000,000 Cr!Common stock        .....

Premium on preferred A stock 613.907200 112.500 569.094.TCO 112.500 502~4.700 I I'2.500 299,242.100 112.500 299,242.700 112.SOO 255.282,100 112.500 255,2BKVOQ 112 soo Prcmluin on preferred D stock 5.950 5.5$ 0 5,950 5.950 5,950 5,950 5,550 Premium on preferred F stock .. 18 600 78.6 CO Prcmlum on preferred G stock 12.800 cnbital stock exnerse .. dr2,G42.839 dr2.'$55.S44 dr2.311.05T dr2 223.124 dr2,157,510 dr'9,1$ 7.$ 10 dr2,157,510 Retained earnings $ 18.107.11$ 148,057,660 91.988.74$ 200.113.32S 178.709.7$ 6 147,537,089 125.121.721 Total stockholders'quity 959,831,323 811,203,5C6 632,327 J)36 534,1619354 506,253+7$ 437,030,729 414,621,3CI

1 1 1-MOODF'S PUBLZC U2"ZLZTT BJ.A'J!!?UAX ...'1549 LIABIk.tTIES(cont'd)r 1573 1972 1971 1970 19G9 1968 1967 bioflan&i. aeot 1,011,743,000 802.031,000 842,396,000 662.894.000 7,625,000 543,834,000 434,260,000 install. purch. Ss sec. contr.-PolL contr. rev. bds. 35350,000 Other long term debt 73,G51,665 73,6C&,000 17,625,000 7,625,000 593,301,000 7,625,000 8,000,000 Q~UnamorC. prem. on I.t. debt 4,790,430 Total long term debt 1,125,435,095 965,639,000 860,021,000 670.519,000 600,026.000 551.459,000 442,260,000 Accounts payable... 34.&ot.&59 24 J!44,147 27W0,346 22,251,215 15,120,101 13,048,261 9,330,867 Q)Customer deposits ... 46,723,111

  'taxes nccrllea                                             39,158.435             23,683,990                 27,741,079                         26.456,053                  24.124.895           21,101,463           19.785,468 Interest accrued                                            21,960,090             16,428,795                 14,457 Jr 05                          8,853,741                 5,745,771            5.366,332             4,609,412 Other current liabilities                                   28,942,926             19W7,330                   21 Jr 29.880                        19,008.712                 13,802,456           15,193,299           13,426,065 Notes payable                                                37,000,000             80,504,CCO                SS,&110&33                          71,623,667                        35,500 Total current Sr accr. liabilities                 208,589,421           S 65,348.263                150,727,033                        148~.38&                      58/28,723            54,709,355               572,204 Customers advances for construcuon                             491,588                454429                         780,492                            680,01?                  641,189              577,397            2,145,&S3 KUnamortlzed premium on debt                                                         3.411,011                  3,3G2.333                            2,915.881                 3.144.785            3,210.664           11,693,912 Accurn. deferred invest. tax credits                        39,780,549             30,516,002                19,271,&GS                          17,159,53S                  IC,&63,959          '4,4 80,135             1,134,425 Other deferred credits                                       8.060,SSl             11,540,635                10.475,660                          10,418,206                   9,321,3 GO           7,102.346           47,241,812 Total deferred credits                                48,33"-,512            45,922,067                33,896,353                          31,233,642                  20,571,293           24,370,542           15,546,484 Other reserves                                               15,196,094             13,6S2,411                13,491.385                          13,522,115                  13,451.487           13,198,617           12,935,332 Contrlb. in nld construction                                                                                  16,616,184                          12,940.636                  10,112,970            7,686,63S             6,461,809 Q)Customers deposits                                                                42,208,548                38,296,981                         35.036,731                   32,232,950           29,750,356           27,732,900 ense'c Aceum. del. income taxes                                     44 213.592             24,032,752                15,600,453                          12.354.461                  12,29G,044           13,219,288           14,142,532 Total liabilities                                Or403.906,043        $ 2,06S,236,60?            $ 1,V61,0G3,225                    $ 1,458,051,333              $ 1,26LC?2.842       81.132,424,6(          $ 9S0,948,235 Nct current assets                                       r)$ 76.168.766 (j)During 1973, Company reclasslfi e d eus- c o un t a nd ex                       p, d$ 6&,307,834              d$ 61.032.344                     d$ 68,675,686 and if premium e xcecdc d N lear facllltles continue to be depreciated tomcrs deposits as a current liability, 1912 expense it was ercdlted to unamort. premium at 3.30% while a depreciation study is being and prior years not,restated to reflect this on debt and amortized over respective lives revlcwcd by the Florida Public Service Com-
                                                                                                                                                                             $ 29,346,373         $ 12,013.629           $ 8,446.V20 change. In years 1912 and prior this account of debt Issues.                                                                                                       rnission.

was excluded from current liabllitlcs and (b) The 3% and 4% lnvestrncnt tnx credit shown separately in accoroance with proce- General Notes has been applied on books to rcducc taxes ac-dure approved by Florida Public Scrvicc (a) Company provides book depreciation on crued and credited to "Unamortized invcst-Commtss)on bfay 6. 1959. a straight-line scrvlcc-life basis. mcnt credit," which Is being amortized over (13Rcprescnted by no par shares: 1973, 34.- Prior to 1913, depreciation was provided at useful life of related property to reduce the 050,000: 1972. 32.800,000; 1971. 15.400,000; 1970 3.30% of average dcprcciablc plant. provision for dcprcciation in accordance and 1069. 14,600.000; 1968-61, 13,900,000. Effectlvc Jan. I, 1973 the company began with an order of thc Florida Public Service ())Less Inventory adjustment reserve (re- providing dcprcclatlon by primary accounts Commission. In statement of inconic provi-classified ln 1067 as a valuation reserve); prior as dlrcctcd by the FPSC based on thc fol- sion for Federal income tax has been re-years adjustment included ln totals. 1973 balances and all debits and credits dur- Other Production Plant ing 1073 have bccn segregated into expense Transmission Plant and yrendum. 1972 and prior years not re- Distribution Plant lowing rates: Ci]1973: In compliance with FPC Order ~A3, Steam Production Plant .

                                                                                                    ......   ..               = .2.86%-4.00% provision 4.00%

duced by amount of investment tnx credit, for depreciation has been shown without reduction for amortization. and ef-

                                                                                                             ......1.82%-3.50% fect on net income has been offset by an 1.67>y 5.25%a -Investmcnt tax credit adjustmcnt" (af ter stated to reflect this c)range. In 1072 nnd Gcncral Plant .7.......2.3&o2o-9.00~i, amortization of $ 1.360.350 in 1973; $ 919.735 ln prior years.,lf cxpcnse excccdcd premium Transportation Equipment...8.16%                                                                                          1972 $ 802,&S6 in 1071, $ 760.637 in 1970, 639,696 nct amt. was charged to unnmort. debt dis- Tlic effect of these changes is not material. in 1)69, $ 507,933 in 1968, $ 596,436 in 1067.$

FINANCIAL AND OPEIIATINQ RATIOS ELECTRIC 1973 1972 1971 1970 1969 1968 1967 Res. sales % total 51.8 50.7 50.7 51.1 50.3 48.2 41.2 Res. revs. % total 53.8 53.4 53.5 53.9 53.3 52.1 50.6 Rcs. aver. rate pcr k.wJr. (cents) 2.27 2.07 1.9? 1.89 1.91 1.95 2.00 Rcs. aver. cust. use (k.wJi.) 12,040 11467 10,955 10,505 9,828 8,766 7,714 INCOblE ACCOUNT o'lec. gross of total 100 100 100 100 100 100 100 dcyrec. of gross oper. rev. 9.1 9.3 9.7 10.2 103 10.6 10.0 mnlnten. of gross oyer. rev. 7.2 2.3 7.6 7.6 6.4 5.9 5.9

% annual dcprec. of utility plant =                 .                 2.45                   2.30                              2.38                             2.54                    2.67                2.68                 2.77 net oper. rev. to net util. plant                               6.71                   5.92                              6.53                             2.13                     7.3                  2.0                  7.3 K.peratlng ratio Times chgs. earn. before inc. taxes 70.1                   71.6                              68.9                             66.4                    63 Jr               63.0                 63.6 3.29                   3.16                             3.34                              3.63                    4.15                 4.77                5.26 Times chgs. earn. after inc. taxes                                    2.44                   2.42                             2.52                              2.54                   2.64                  2.94                3.38 Times chgs. (k pfd. dlv. earned.                                      2.25                   2.35                              2 44                             2.44                    2.52                 2.76                3.12 Earned per share, prcfcrred.                                      $ 79.6S                $ 93.32                   $ 217.93                             $  163.38                 $ 147'3.72           $ 134.92             $ 129.47 Earned per share, common (actrrnl)                                  $ 3.01                 $ 2.68                         $ 5.03                            $ 3.95                                        $ 3.40               $ 3.26
    ,Earned pcr sharc, common (adj.)

f".rjEarncd

                                                                                           $ 2. 6S                        $ 2.52                             $ 1.98                   $ 1.86               $ 1.70              $ 1.63 per share, common (aver.)                          )3.09                   $ 2.69                         $ 2.56                            $ 1.91                   $ 1.86                S 1.70              $ 1863 Net tang. assets pcr corn. sh. (actual)                          $ 24.20                $ 21.80                       $ 38.71                             $ 34.10                  $ 32.19              $ 28.83              $ 21.22 Nct tang. assets per corn. sh. (adj.)                             $ 24.20                $ 21.80                       Slo'.36 Number of shares                                                                                                                                          $ 17.05                  $ 16.10              $ 14.42             $ 13.61 4!i%         curn. pra, 4!63% curn. pfd., A 100,000                100.OCO                     100,000                              100,000                   100,000              100.000              100.000 ii % curn. yfd., B tl curn. pfd. C 50,000 50,000 62,500 50'OCO 50,CCO 50,000 50,000 50.000 50.000 50,000 50.000 50.000 50.000 50,000 50.000
                                   %%d                ~                                  62.5CO                        62.500                             62,500                   62,500               62,500               62.500
                          ~.32%

435% curn. ptd. D ~ 50,000 50,0CO 50,000 50,000 50,000 50,000 50.000 curn. rsfa.. E 50,000 50,000 7.28% curn. yfd., F 600.000 GOO.COC 50.000 50.000 50,000 50.000 50,000 VA0% curn. pfd., G 400,000 corn. (actual). 34,050,000 32.&CO,CCO 15,400.000 14.600,000 14.600.000 13,900,000 13,050.000

                               .'corn. (adj.)

i.corn. (aver.) 34,050,000 33.05G,&49 32,&CO,COC 32.576.000 20.&CC.CCO 30,216,CCO 29,200,0CO 29400,000

29. 26 0.000 27,876.060 2?,&CO,CCO 20,800,000 22.80C,CCO 21,800,000 BALANCE SIIEET

%     mtges. of cayltallzatlon 4" other 48.6                  50.2                              56.5                             55.0                    53.6                 55.0                50.7 debt of cnp.                                            5.2                    4.1                               1o                               0.6                     0,7                  0.8                 0.9
     % preferred stock of cars.
~ corn. stock surplus of cnp.
% mtgc. debt of deprec. plant 6.5 39.7 45.2 5.4 40.3 46.2                             51.2 2.4 40.0 3,0 41.4 48.5 3.3 42.5 51.0 3.7 40.6 51.6 4 o 44.2 47.5
% all debt of deprcc. plant ..                                       50.0                   50.0                             52.2                             49.1                    51.6                 52.3                 48.4 Rntlo gross plant to gross revs.                                    3.7 I                  4.0-1                           4.1-1                             4.0-1                   3.9-1                 4.0-1                40 I Dcprcc. rcs. In % of gross plant                                      15.9                   16.1                              16.3                             17.9                    18.6                 18.2                19.1 PRICE RANGE 1st 3$ . 1917                                                   85-Sosa            85! rr.&2sa                82?i-77?i                                77ss-62                74!i 68! ~           77!i-74?8s               S2ss-10 1st 3!is. 1978                                                  83?a-77                                           8lia 74                              76<?a j                74sa Gtr5a                  77-74         82sa 14sa 1st 3si 1919                    T                               V9-72ss           79la 76li                            78 70                     ?2sa-Gras                   Visa-60?i            74!i-?0?i            Soss-69!Sr 1st 3'as. 1081                                                  7Csi 70            76?i-Vt!8a                     7$ -68! 2                      71'a 63!5a                   72?5 G4(6a           76sa-22!6            84?i -73si 1st 3?is, 1983                                                  75!i 69               15si-V2                 73 si.61! ra                      704 ~ -63ra                  73ia-Grsi                78-73! i         86sa 74ii 1st:iris, 1084                                               66sa.Gt!i                 67-63si                6530-50si                               62rj-55                    60-5Gsa                  69-65             8C.G4'i 1st 1st i

3 a s. 1986 4?is. 1986 68-62 72ii-67 68!i-65!Sa 3ii+GI0 67si Gl 74aa 6S li 65 55!p 71' -64! a 67?s.5&si 71-68; i 82sa-6&ra 50 6S'a 80!6-26 93-11!i

                                                                                                                                                                             'llsi CGsi
                                                                                   ~

1st 4s'as. 198? . 75! ~ 68 VSrp-23 75si-60si 73's-65 83 19si 94ss Boss 1st 4'.is. 1968 69!) 63i'p, 60s6-60 60?$ -64?I 68!i-Gosi 72-M 76'!s 73!ra 8S 71!Sa 1st Ss, 19&9 VV!rr 74)8a 7&a i-71 (i 74si.GGsf 86!1-69!S 86!i S2 99si.&2!i 1st 4?rrs 1002 70ia-62 73 ter-67! s 72 64 70!4a-50fa 73?s-62 79ss-V5'i 92!a 76 1st 1st 4sis. 1994-4sss, 1995 69'i.G2's 69! i-Glsi 00ii-68 71!8a-64!9< 72~! a loss-Gl Voi4a-60!a" Vosi.62si 24!s-62

                                                                                                                                                                                               'ois       76is Sois-25si 9.112 77 73?s 65                                                                                                                         94!ra-?6si 1st     5s, 1095                                                   22-66                                     -77!I-6?!ra                         73(;-63s; 1st 1st 6s, 1996 Gaars.

1997 . 84si-24r48a 92.84 73? )-7 I 92!i-89?i Stgi'Gsa 87! i-71si 94!$ <5si 83!i-72si 91? i.f 0 78? ~ 65sa 88 76(i 08!s S2 Sisi-Siss 08.88 lors+-06 09si 82!rs IOGsa 53 ICISI 101 1st ls Junc I,

         ~           1998  ..                               93?a-84r(                 96?i-8?                                                        91-& I!ra             100! i-81!6          IOGP      00$

1st ls, Dec. I, 1908 96?i-02?Sa 97-87?'2<4! jj 91-80 rol 81 102,s 0&%%d 1st Ss< 1099 103sa 96 104 102 103? 103si-CG 1st 8'!ss, 197$ Iotghr 00!) 158?90 103 i& ~ ra-04s'09)ra-101!Va 90(ri-50!'06!s-IOOPa 1st 7%s, 2001 101-98 104 93 1st Vsas, 2001 103 93 103!r8 09!r! 103!I 97ss 1st 7!as, 2002 ICO)ra 02 101)ra-90s4a

1550 3fOODF'S PUBLLC UTILXTF. ANNUAL PRICE RANGE (cont'd): 1073 1572 1971 1970 1969 1968 1967 1st eris, 2003 . ~ . 101{),-85 1st 8)is, )950 )06)2-)VJc'a 4)8% curn. preicrred 7.28% preferred Common (actual) F... 60-51 100ii-SS 40'i-23'I 6)-57 101-998a (S44>i 2S 60-55 76)2-56 )S 52)rc-46)rc 75.54'ii 58 53 76(i-64)rc 72 67 80)8-62)i 78-71 80c,i 66 {(Common (adj.) 40.3S-23.7S 44.38 28.00 38.13 2S.)3 37.50-27.13 38.25-32.25 40.13-3L50 40. 25-32.75 Q)At liquidating value oC $ 100 per share. (I)Adjusted for 2-Cor-I split bfay 1972. (I)After 2-for-I split; before, 72ii-59)<. Additional M)sceilaneous Rat)as and Data! (Comp))ed from Un)Conn Stat)stlcal Report): Financial Ratios 1973 1972 1971 1970 1969 1968 1567 Grass Inc, % Long term debt 20.9 16.8 16.9 20.8 22.4 2).7 23.0 blargin o! salcty  % 22.2 22.6 24.7 24.4 27.6 29.2 28.6 o oi iev. avaUablc for cominon 14.3 15.5 16.0 )3$ 14.0 14.6 15.9 lvidcnd payout-% 37.7 40.9 41.6 51.4 51.2 52.6 51.2 Avg. annual yield-% 3.4 3.0 3.3 3.1 2.T 2.50 2.29 Avg. times earnings 11.0 134 13.0 162 19.0 21.0 2? 4 Miscellaneous Fuel cost-% of rev. 28.7 28.8 25.3 20.9 19.7 19.7 19.0 Labor cost  % of rev. 17.7 18.2 18.9 19.3 18.0 17.2 17.7 System capacUy, Kw (000) 9,097 7 SA 6,359 5,911 5,471 (04,580 4,148 System peak. Kw (000) Load tactor % ... - -------- Heat rate (BTU pcr kwh) (equlv.) 6,894 58 6,011 60 5,378 55 5,001 57 4>329 59 3,789 58 3,160 60 g as Sc oil 10,381 10,346 10,132 10,128 10,012 10,081 10,025 Fuel avg. cost per bbl. (equlv.) 8 as Sc oB 3.50 3,20 2.73 2 .15 2.07 2.09 2.07 Elllployecs SWISS 8,405 7,711 7.3 49 6,549 6.046 5,657 Employees pcr $ 1 million rev. 13.1 14.7 15.9 1 1 7.6 17.7 18.7 19.8 Q)Gross capability. LONG TERM DEBT additions to depreciable property, inade af- SINKING AND IblPROVEMENT FUND-An-ter Dec. 31, 1943 and prior to beginning of nually Dec. I, 1954-77 incl., m cash or 1978

1. Florida Power 8{ Light Co. first 3s, 1977) spch year, less (d) 2(cc of gross property re- series bonds a sum equal to IcA% of greatest Itating Aa tirements inadc alter Dec. 3i, 1543 anct pnor to par of such bonds outstanding at any onc OPEN bIO)tTGAGE-Outstanding. Ibis series, beginning of such year. Any dcdclency may tiine prior to ncx! preceding Jan. I, less par

$ 10,000.000.                                               be made up by dcposlttng cash wtth Trustee                                  of bonds (a) retired Crom proceeds ot insur-DATED-July I 1947.                                          or by certifying gross property additions.                                  ance, release or tax)ng by cimnent domain hIATURITY~ub l. 1977.                                       which                not incrcaltcr be made the basis                       of property and (b) the rlgnt to autnenucauon INTERFST-JSc J I at oflice of trustee ln New of the !nay                 authcnUcatlon and delivery of bonds,                           ol which ton basis oi retirement of 1978 senes York. Principal and Interest payabla In U. S. release                      of property        or withdrawal of cash or                   bonds) is waived as basis Cor release of prop-legal tender.                                               on )vs{vcr of right to issue bonds or by taking                             erty or withdrawal of proceeds of insurance, TRUSTEES         Bankers Trust Co.. Nevr York. credit for bonds retired through usa of certain                                         re)case or taking by cmincnt domain oi prop-and Florida National Bank, Jacksonville.                    cash which did not represent proceeds of rc-                                erty. Credit may be taken for par of bonds DENOhi)NATION-Coupon, 1.000 and any                                    of funded property. Sucn cash may be                             thc right to autncntlcauon of wnich {agamst inultiplc of $ 100; rcglstcrable $as to prlnclpal; leasc    withdrawn on expenditures for maintenance                                      roperty additions or rcureinen! o! 1918 series fully registered. $ 1,000. $ 10,000 and any mul- or gross property additions or on waiver o!                                               onds) is waived. Requirements may bc anti-tiple of $ 100. CScR and thc several denomina- the righ! to issue bonds, or be appllcd to re-                                           cipated. Cash ln sinking lund may be used to tions interchangeable; $ 2 charge for each tircmcnt of bonds.                                                                           purchase or redeem bonds or withdrawn on bond exchanged.                                             DIVIDEND RESTRICTIONS Company wU)                                          waiver of right to authentication of bonds.

CALLABLE-Asa whole or ln part on at least not make any distribution on common (ex- Cost of such retirements ln excess of par 30 days'ublished and mat)ed notice at any cept ln common shares) or acquirc any com- io bc paid from other funds. Bords- so ac-Umc to each June 30. Incl.. as follows: mon stock unless thereafter and subsequent quired to be cancelled. 1975. 100.39 19')6 100.26 1911 )05.00 io Junc 30. 1947. depreciation <<nd property DIVIDEND RESTRICTIONS-Company vrlll Also callable for sinking Sc Improvement retirement provisions (excluding smart)sation not pay any dividends (except ln coininon fund (which see) or rcplnccmcnt {or mainte- for amounts Inc)udcd tn utility plant adjust- stack) or make nny dlstribuUon on or ac-nance) fund, or with proceeds of property ment and similar accounts> plus earned sur- quirc for value any common, unless there-released or taken by eminent domain, at plus rcmalnlng after deduction of (a) $ 2,000,000 a{tcr remaining earned surp)us ls at least special prices to each June 30, inc).. ns follows: lus (b) proceeds Crom sale of common ann equal to the suin of (I) any excess of re-1975 .. )00.38 1976 100.26 1977 100.00 c) charges to earned surplus (less dividends placement provision since May 31, 1948. plus SINKING AND IMP)tOVEh)ENT FUND Ail snd distributions on and acquls)Uons of com- any excess of earned surplus since such date nunUy,Dcc. 1. 1954-16 lncl., ln cash or 1517 mon, preferred dlvldcnds. and nct charges to over the sum of $ 2.350,000 plus proceeds from series bonds, a sum equal to 1% of greatest earned surplus for depreciation and retire- sale of common. contributions to capital ar o! such bonds outstanding at any one rcservcs), shall at least equal replace (other than $ 4.000.000 from parent), and ima'prior to next preceding Jan. 1. )ess par ment ment fund rcqulrements. charges to earned surplus (other than dis-of bonds (a) retired froin proceeds of insur- RIGHTS UPON DEFAULT In cvcnt of de- tr)buttons on common, dividends on prc-ance, release or taking by eminent domain fault (60 days grace period provided for in- Cerrcd. or charges to earned surplus w)Ui 5! property and (b) the rlgh! to authentication !crest payment), thc Trustee or holders of at corresponding credits to reserves for depre-of whPch {on basis of rctircmcnt ot 1977 series least 25% of bonds may declare bonds duc and ciation and retirement oC property, etc.). all bonds) ls waived as basis for release of prop- oavabla )nimcd)ate)y. since hlay 31. 194S, plus {2) cost of reacquisi-erty or withdrawal of proceeds of insurance, INDENTURE MODIFICATION Provisions tion of common subsequent to May 31, 1948 release or taking by eminent domain of prop- inay bc modl{lcd, except as provided, with not charged to earned surplus. erty. CredU may bc taken for par of bonds consent of holders of 70% of bonds and, lf OTHER PROVISIONS-E or provisions relat-the right to authentication of which (against rights of onc or inore. but less than all, series ing to security. creation of additional debt. property additions or retirement of 1977 series of bonds arc ai(ected by such modt{lcatton. rights upon default and indenture !nod!{)Ca-bonds) ls waived. Requirements !nay be !lien also by holders of 70% of each series o! tion. sec first 3s. 1977 (No. I). antic)pa!cd. cash ln sinking fund may be used mnds so at!ected. LEG*In-For savings banks ln Conn., bfass.,

                                                                                        ¹
                                                           ~

to purchase or redeem bonds or withdravrn LEGAL-For savtngs banks In Conn., Mass. N. J.. N. H. and N. Y. on waiver of right to suthenucatlon of bonds. N. H. N. J. and Y.

                                                                                                                                  ~

TAX STATUS-No provision for refund or Cost of such retirements ln excess of par to TAX STATUS-No provision for refund or

                                                                     ~

assuinption of any Federal or state taxes. be paid!rain other funds. Bonds so acquired assumption of any Federal or state taxes. PURPOSF~Procceds used to pay short term to be canceUcd. PURPOSE-Proceeds Crom sale oC bonds and loans, financ additional CacUtttcs, and for SECU)t)TY-All series arc equally and ratably debentures used to redeem debenture 4)is. other purposes. secured by a Arst lien on all properties owned due l919. and $ 750.000 bank notes. OFFERED-{$ 11.000.000) at 102.40 {proceeds to and Cranchlscs held by company. subject to company 102.10999) on Junc 10, 1948 by Har-certain lenses on minor portions of companv's OFFFRED-{$ 10.000.000) at 102.60 (proceeds to company IOLSS) on July 31. )941 a syndi. riman Riplcy Sc Co.. New York. I'opcrty, ctc. There arc excepted from the cate headed by Lchman BrothcrS, by New York 3, Florida Power & Light Co. first 3s, 1979) lcn hereof {I) cash. stocks, bonds and other 2. Florida Power Sc Light Co. first 3r/ss, )tatillg Aa securities not spec(()cally pledged {U) iner- OPEN hlORTGAGE-Outstanding. series duc chandisc held for resale. ctc:, (Ul) bUls, notes 191st listing Aa )979, $ )0,000.000. and accounts rccclvable. etc. hlortgage per- OPEN h(ORTGAGE-Outstanding, series due DATED-June l. 1949. mits the rclcasa o! property. 19'18. SI1,000.000. hIATURITY June l. 1979. CREA'I'ION OF ADDITIONAL DEBT Addi- DATED~unc tional boiids inay be issued ln this or other 1. 1948. INTEREST J&D I at Bankers Trust Co,. Ncw series ln principal amount equal to (I) 60% hlATURITY-June l. ISTS. INTEREST-JdcD I at o{I)ca of trustee ln New York. TRUSTEES Bankers Trust Co.. New York. of cost or fair value. whichever Is less, of prop- York. Principal and interest payablc in U. S. corporate trustee; Florida National Bank, erty additions: c2) principal amount of bonds legal tender. Jacksonvl))e. or prior lien bonds retired or then to bc rc- TRUSTEES-Bankers Trust Co.. New York. DFWOh) INATION-Coupon, $ 1.000: register-Ured and {3) cash deposited with Trustcc for Florida National Bank. JacksonvU!e. able as to principal: fully registered, Si,000. that mimosa, vrov{dert. tn each case. adjusted snd REGIST)tAR-Bankers Trust Co.. New York. $ )0.000 and. at option of company. {n either net earnings (as <leilncd) are either (a) at DENOMINATION-Coupon, 1,000 and any form In inultiples o! SIOO. C{tcR interchange least twice annual interest on or {b) at least multiple of $ 100; registerable $as to principal: able: $3 charge for each bond exchanged. lOnr o! principal amount of. aU Arst mortgage (ully registered. bonds outstanding and all outstanding debt o! 'inie o! $ )ao CctrR anr) thn srvrral $ 1.000. $ )0.000 and any mul- CALLABLE As a whole or In part on at )cast rior or equal rani.. Including thc additional drnom{na. 30 days'ubUshcd and mailed notice at any ssuc. cxccpt that no earnings test ls reoulred tlons interchangeable; $ "- chargo for each Ume to each hlay 31. )ncl., as follows: bond exchanged. to Issue bonds to refund prior lien bonds anrl CALLABI.EAs a whole or In part on at )914.. 100.87 1575 )00,69 1516 100:52 such test Is required to refund bonds only ln )cast 1977 100.35 1518. 100.20 1979. 100 00 certain cases. 30 days'ublished and mal)ed notice ai A)so callable on like iiotlcc for current sink No bonds may be issued on basis of property any time to each hlay 31, tncl.. as follows lng and lmprovcmcnt fund or replacement additions subject to quail{)ed liens, as pro- )916. 100.38 {973 100.95 1974 100.76 1915 100.51 fund. or wltli proceeds of release oC nropcrty virlnr). 1977 100.25 197S. 100.00 at special prices to each May 31, Inc). as Col ~ Also caUable REPLACEh)ENT FUND Coinpany agrees or maintenance fund. or with proceeds o! for sinking lund (which seel inws: 1974 100.5$ 1575.. 100.47 1916.. 100.3S that, Cor each year, It will expend 15% of nronerty re)cased or taken by eminent do- l977-- 100.29 19)S.. - 100.20 1979.--- 100.00 adjusted gross operating rcvcnucs for main- main at special prices to each hlay 31. Inc) SIN)71NG AND IhlPROVEh)ENT FVND An-tenance and rep)accmcnts, but not ln excess as follows: nuaUv Dcc. 1. )955-'78, l)c% of greatest amount of (a) actual expenditures Cor such purpose {913. 100.69 1974 100.59 1975 )00.47 of 1979 series bonds at any time outstanding, plus (b) $ 2,000,000. plus (c) 2is% oC gross 1976 100.36 1971 10025 1978 100.00 under sanic terms as i)rat 3)is, dua 1978.

EXHIBIT E Tables and Maps Excerpted from Statistic.s of the Florida Electric Utilit Industr, 1960-1974 by the Florida Energy Data Center

'l GEHERATIHG CAPACITY BY PRIME IfOYER TABLE C2 Florida Electric Utility Industry (Hegawatts) As of December 1973 As of December 1974 NAHE PLATE CAPACITY HAHE PLATE CAPACITY Conventional Nuclear Conventional Nuclear Steam Gas Turbfne Diesel H dro Steam Total Steam Gas Turbine Diesel H dro Steam Total Fla. Power 5 Light 6008.640 1232.208 33.100 1519.940 8793.888 6008.640 1976.208 33.100 1519.940 9537.8f)8 Florida Power Corp. 2111.400 672.948 2784.348 2521.300 1168.300 3689.600 Fla. Public Util. 3.230 0.168 3.398 3.230 .168 3.398 Gulf Power Company 1667.000 41.850 1708.850 1667.000 41.850 1708.850 Tampa Electric 2393.980 36.000 2429.980 2393.980 193.500 2587.480 Reedy Creek Util. 12.000 12.000 12.000 12.000 Investor Owned (I) 590. c 3391.858 7539. K Fort Pierce 62.000 5.500 67.500 62.000 5.50 67.500 Gainesvf lie/Alachua 180.100 43.500 1.162 224.762 180.100 43.500 1.162 224.762 Homestead 36.095 35.095 36.095 36.095 Jacksonville 1201.200 100.640 1301.840 1201.200 449.640 1650.840 Key Mest 107.000 17.490 124.490 107.000 17.49 124.490 Kfssfrrmee 30.270 30.270 30.270 30.270 Lakeland 204.000 53.750 5,500 263.250 204.000 53.750 5.50 263.250 Lake Morth 74.080 22.572 96.652 74.080 13.60 87.680 Hew Smyrna 7.500 10,640 18.140 7.500 10.64 18.140 Orlando 438.270 37 '00 475 '70 732.570 37.500 770.070 St. Cloud 19.650 19 .650 24.11 24.110 Sebring 12.650 12.731 25.381 12.650 12.731 25.381 Starke 7.490 7.490 10.79 10.790 Tallahassee 198.000 71.000 269.000 198.000 71.00 269.000 Vero Beach 62.000 13.378 75.378 62.000 13.37 75.378 llauchul a 7.656 .7.656 7.65 7.656 Hunfcfpals (H) 35.390 Florida Keys REA 16.000 16.000 16.00 16.000 Moodruff 30.000 30.000 30.000 30.000 Other (0) Total (I)+(H)t(0) 14727.820 2230.396 313.464 30.168 1519.940 18821.788 5432.020 3976 .248 312.25 30.16 1519.94 21270.628 Source: FPC Form 4

SE(TI(N I TABLE Cl 6H)EPATI% CAPACITY INTRODUCTORY COMMENTS Florida's electrical generating capacity (name plate) has been in-creasing at an average annual rate of 12.7 I during the period between 1960 and 1974. This rate is much larger than the 7.70 experienced by the U. S. as a whole and is directly tied to Florida's rapid rate of population growth. From 75 to 865 of this capacity,(1960-1974), has been owned by the Investor Owned Uti lity Companies and nearly all the remainder is owned by Publically-owned Utilities. Florida Keys is the only generating Electric Cooperative in the State. In this report the term "name plate" rating or capacity is used frequently and it is defined here as the full-load continuous rating of a generator, prime mover, or other electrical apparatus under specified conditions designed by the manufacturer. This rating is usually physically attached to the machinery.l This term should not be confused with "net capability" which is the maximum load which a generating unit or generator can carry under specified co~ca>tions or for a given period of time without exceeding approved limits of temperature and stress. 9hi s capabi 1 i ty vari es with the character of the load and the time of the year. SOURCE: FREAC

MAP C7-X PRlVATELY ONNED UTILITIES 1 j I L J r ', l r- I 1

                                                    ,5                                            I 49                                                       VI r
                                           )                                                           c A.       FLOROA POTTER APE) LIGHT I   Cltt   ClklVOQL CIITLTII fT   LlICCKNLI                                                                $

4 fT ItItkS 1 T" S IWNTtt 4 IIVTIVI 0 ~

                                                                                             ~g S

T Ittlt tlLSTXA l '2 I I

                                                                                                                     'Io S      tOIT OGKLJOC5                                                                                           1 O       SVCTIA I I SAISTSO It      ST  LICK IS     TItltT tONT
                                                                                                              ~OII             I 12' IL GULF POWER CORPORATION I    lkCLOIt                                 I   CISTT t    lVOI ICIK                               t     IAkSIIS 54Tk                                                               0 SkITOT                                  S     S0CLn 4       SlISOIO                                                                                                                      100 I

S OIISTIL IIVOI F FLORIDA PUBLIC UTILITIES IICOkt I ttlWCSIL I T tITXRXTOCtl CITT t ILLt Stkkft

                                                                                                                    .1 S     tISLIS
        ~ OST ST   JX                                                                                                                 3     9 0      l00  ttIttI                          F REEDY CREEK                                                                  I II SIWIIttt          IIIVTII                                                                                                              I It     TISSOI J         7    ~

O . H7982ELECT/T/C I 20 C TAMPA ELECTRIC COSIPAIIY STKQ/ EEMTTATTON I O OttIIlllkO I ~ SCIO O IIkOSTI COkSTIIIICTIOk I t CtttttI NI/CLEA// OGIVE//AT///N NXKOVI tOIIT A OttkltlkO h VkOtk OOkST IIICTIOk

                                                      /NTERNAL COLONIST/~l         'tk9 GAS T/J/////NE                     lS Of DttteK1 SI,OTS
                                                                                                          ~

pl!S. i tt OftklTIk4 IS IkIOtk 02I STIIY TIOk

• IOU HEAOOUARTETIB Service areas and plant locations of investor-owned utilities in Florida.

(Mop by Florida Resources and EnI/ironmental Analy'sis Center)

ELE CTRIC UTILITY PLANT STAT I ST I CS TABLE C-7 FLORIDA ELECTRIC UTILITY INDUSTRY (CAPACITY IN KILOWATTS) COMPANY PRIME TYPE NAMEPLATE CAPACITY PLANT MOVER FUEL AS OF -AS OF DEC. 1973 DEC. 1974 ORLANDO 475770 770070 F.O., N.G. 334520 628820 1. 2. 3 ~ INDIAN RIVER L. HIGHLAND HIGHLAND STEAM STEAM GAS TURB. F.O., N.G. DIST., N.G. 103750 37500 103750 37500 ST. CLOUD

1. ST. CLOUD INT COMB. F.O., N.G. 19650 24110 SEB RING 25381 25381

1. SEBRING STEAM F.O., N.G. 12650 12650

2. SEBRING INT. COMB. F.O., N.G. 12731 12731 STARVE

1. STARKE INT. COMB. F.O., N.G. 7490 10790 TALLAHASSEE 269000 269000

~   i.

2. S. O. S. 0. PURDOM PURDOM STEAM GAS TURB. F.O., F.O., N.G. N.G. 118000 25000 118000 25000

3. HOPKINS GAS TURB. F.O., N.G. 46000 46000

4. HOPKINS STEAM F.O., N.G. 80000 80000 VERO. BEACH 75380 75380

l. VERO BEACH STEAM F.O., N.G. 62000 13378 62000 13378

2. VERO BEACH INT. COMB. F.O.

WAUCHULA

1. WAUCHULA INT. COMB: F.'0. 7656 7656 FLA. KEYS

1. MARATHON INT. COMB. F.O. 16000 16000 SOUT) P ASTERN POWE R A DMIN .

1. JIM WOODRUFF DAM HYDRO WATER 30000 30000 SOURCE: Federal Power Commission Form 4

-0 NOTE: F.O. - Fuel Oil N.G. - Natural Gas J.F. - Jet Fuel BIT. - Bituminous Coal I NT. COMB. - Internal Combustion GAS TURB. - Gas Turbine

                                                                   - Hydroelectric HYDRO 15

MAP C7-XXX FLORlDA RURAL ELECTRlC COGPERATlVES 0 0

.'p5       1 I           .ale I

I 3p I fo I. ALABAMA ELKCTRIC COOPERATIVE, INC. - Andalusia,Ala 2.CENTRAL FLORIDA ELECTRIC COOPERATIVE- Ciustland

5. CHOCTAWHATCHEK ELKCTRIC COOPERATIVE - Deiuruoe Springs ip

4. CLAY ELECTRIC COOPERATIVE - Keystone knights I S. ESCAMBIA RIVER ELECTRIC COOPERATIVE INC. ~

                                                             - Jacksonville 17 0

6. FLORIDA KEYS ELECTRIC COOPERATIVE - Torsrnier I L

y GLADES ELECTRIC COOPERATIVE ~ IHC Meara koran I. B. GULF COAST ELECTttlC COOPERATIVE, INC. - Weuahrtcha

9. LKE CONITY ELECTRIC COOPKRATIVK - North Fort Myers 0 Ill IO. OtKFOIOIIEK RtytAL ELECTRC MEMOEIIStaP COOPERATIVE Hehunte, Ce.

1 I I PEACK RIVER KLECTRIC COOPEltATIVE - Wauchula r' I2, SUMTER ELECTRIC COOPERATIVE ~ INC Surntstrille IS. SUWAHHEE VALLEY ELECTRIC COOPERATIVK, IHC - Lire Oait 1 0 IO TALOUIN ELECTRIC COOPERATIVE, INC- OuinCy IS TRI-COUNTY KLKCTRIC COOPEIIATIVE, INC - Madison l6 WEST FLORIDA ELECTRIC COOPERATIVE, INC.- Grocouille IEWITHLACOOCHEE RIVER ELECTRIC COOPKRATIVE, INC.- Dodo City L I PHON GEHERATIHO Q OENEltATIHO Q NON- SKRVICEO AREAS I Service areas of rural electric cooperatives in Ftorida. (Nap by Florida Resources and Environmental Analysis Center)

MAP C7-XX P PUBLICLY OWNED UTILITIES 15 5 2SOI) I3c 29 IO 0 1 ALACHUA 2 BARTON 3 BLOIAVTSTOYnl 4 BUSHNELL 2io ~ lo 035 5 CHATTAHOOCHEE St >KVfWRltY 025 A cLEYnsTDN 25 NKtr SMYRNA BEACH 190 7 FORT LKADE 24 OCALA S FORT PIKRCE 27 ORLANDO 219" On 9 OAINESVILLK e. LAKE HIOHLAND 27b tL J. R KELLEY gy

b. INDIAN RIVER A DEERHAVKN 23 ault4CY "R.

10 BREEH covE spr4INos 29 SKCSIINO

                                                                                                  +O31
       >>    HAVAINA                     3O  STARKK                                          10, 12   HOMESTEAD                   31 SAINT CLOUD                                      2 13   JACKSONVILLE                32 TALLAHASSKK                                     07
         .,4L NORTHSIDE                    IL A B. HOPKINS                                 O34 h KENNEDY                      IL S. Q PURDOM                                                       BO c SOUTHSIDK                 33 VERO BEACH 14 JACKSONVILLE BEACH            34 tYAUCHULA 15 JIM VA3ODRUFF                 35 tSILLIETON OAM'IS KEY tYEST 21 17  KISSIMMEE IS LAKELAND 19 LAKE HKLLEN                         0  BENEltATINB 2O LAKE WOÃ%

0 NON BENERATINB 21 LEESBURO 22 MOORE HAVEN AF9ItOXIMATE SERVICE ANEA SOUNOAIUES FOIt lhAJOlt PUBLIC n NxNT DoRA UTIL IT l ES I2O

                                                               ~AS OF mCENSEN SL 1973                     ~<7 Service areas of public owned utilities In Ftorida. (Map by Florida Resources and Environmental Analysis Canter) l7

SALES TO ULTIMATE CUSTOMERS"* TABLE S3 SELECTED FLORIDA COMPANIES

                                                    - HOURS)        'MEGAWATT SALES TO COMPAN I ES                                           ULTIMATE            CUSTOMERS 1973                  1.974 INVESTOR OWNED SYSTEMS FLORIDA POWER 41 LIGHT                               31117100              31236336 FLORIDA POWER CORP.                                   11381839              11017870 FLORIDA PUBLIC UTILITIES                               =

219312 236278 GULF POWER COMPANY 4143700 4171751 TAMPA ELECTRIC CO. 7843142 8031443 REEDY CREEK UTIL., CO. 501146 482586 TOTAL 55206239 55176264 GENERATING NUN ICI PALS SYSTEM FT. PIERCE 259100 254437

• GAINES VILLE/ALACHUA 593098 603783 HOMESTEAD 142600 104277 JACKSONV ILLE 4647300 4335600 KEY WEST 319000 328511 KISS IMMEE 148400 142403 LAKELAND 851700 845603 LAKE WORTH 208000 211229 NEll SMYRNA BEACH 86900 91596 ORLANDO 1767613 1701600 ST. CLOUD 60700 70794 SEB RING 71500 69075 STARKE 26800 26804 TALLAHASSEE 847700 811785 VERO BEACH 225000 225278 WAUCHULA 29500 33967 TOTAL 10284911 9856742 SOURCE: FPC Forms Electric Utility Companies
• FY Ended September 30, 1974

           ** Sales to ultimate     customers  = total sales of electricity   minus sales   for resale.

SALES TO ULTIMATE CUSTOMERS** TABLE S3 SELECTED FLORIDA COMPANIES

                                                    - HOURS)         'MEGAWATT SALES TO COMPANIES                                            ULTIMATE             CUSTOMERS 1973                  1974 INVESTOR OWNED SYSTEMS FLORIDA POWER 5 LIGHT                                31117100               31236336 FLORIDA POWER CORP.                                  11381839               11017870 FLORIDA PUBLIC UTILITIES                                219312                 236278 GULF POWER COMPANY                                     4143700                4171751 TAMPA ELECTRIC CO.                                      7843142               8031443 REEDY CREEK      UTIL., CO.                             501146                482586 TOTAL                                           55206239               55176264 GENERATING MUNICIPALS SYSTEM FT. PIERCE                                               259100                254437

• GAINESVILLE/ALACHUA 593098 603783 HOMESTEAD 142600 104277 JACKSONVILLE 4647300 4335600 KEY WEST 319000 328511 KISS IMMEE 148400 142403 LAKELAND 851700 845603 LAKE WORTH 208000 211229 NEW SMYRNA BEACH 86900 91596 ORLANDO 1767613 1701600 ST. CLOUD. 60700 70794 SEB RING 71500 69075 STARKE 26800 26804 TALLAHASSEE 847700 811785 BEACH 'ERO, 225000 225278 WAUCHULA 29500 33967 TOTAL, 10284911 9856742 SOURCE: FPC Forms El'ectric Utility Companies
• FY Ended September 30, 1974

           ** Sales to ultimate     customers  = total sales of, electricity f

minus sales for resale. 49

EXHIBIT F Discovery Documents from "Gainesville vs Florida Power Corporation and Florida Power 8: Light Company." CA 68-305-CIV. S. 20 a <<) Newspaper Article dated 11/6/58, re Proposed Sale of New Smyrna Beach System. One- page Memo dated 10/17./56 - Ben H. Fuqua to A. B. Wright re: Generating Plans at New Smyrna Beach, Starke, Green Cove Springs. One-page Memo c ated March 24, 1958 - Ben H. Fuqua to A. B. Wright. Three-page Memo dated August 19, 1958 from Charles H. Cole to A. B. Wright. Information regarding New Smyrna Beach citizens and civic organizations. One-page Memo dated August 19, 1958, from A. B. Wright to R. C. Fullerton. Re: New Smyrna Beach officials. One-page Letter dated September 16, 1958, from Robert H. Fite to Milton H. Frank. Re: "Prospects" at New Smyrna Beach. Three-page Memo dated September 22, 1958, from A. B. Wright to Robert H. Fite, President. Re: New Smyrna Beach, Florida, Negotiations for Purchase, Emergency Interconnection, and Plan for "Executive Session" with City Com-mission. One-page Letter dated September 30, 1958, from Robert H. Fite to H. E. Butterbrodt. Re: New Smyrna Beach.

One-page Excerpt from Minutes of "Special Meeting of the City Commission of the City of New Smyrna Beach, Florida, Held Friday, October 3, 1958." Re: Proposal by FPQL to provide emergency power requirements at lower cost provided,.the City'of New Smyrna Beach agreed to postpone purchase of additional generating equipment at that time. One-page Memo from A. B. Wright to Mr. Robert H. Fite, President, dated November 7, 1958, re meeting discussed on page 13 of this Exhibit. Three-page Memo from A. B. Wright to Mr. Robert H. Fite, President, dated April 20, 1959, describing the electric distribution facilities at New Smyrna Beach'advocating purchase of the system by the Company. One-page Letter from City Auditor and Clerk of New Smyrna Heach to Florida Power 4 Light Company notifyirig the Company of the rejection of the Company's proposal to pur-chase the system. Dated July 29, 1959. One-page Memo from A. B. Wright to Ben H. Fuqua dated July 30, 1959, re the sale of wholesale power on a long term basis by the Company to New Smyrna Beach. Newspaper Article Dated July 26, 1967,'rom Orlando Sentinel re New Smyrna Beach power failure.

4 a PL-326 Eom llua 9! I/Q Paae NSZ

         !Iai       3 II. 8. NCCcneld CLIPPING SIIEET Refer To'.

City Orlccao Florid.. I.

                                                         >'oper                     Or>;: ~o ecocie                     i                                           Cr>> I es M>!to 8lue Office Circulation
                                                                                                                                                                                - Per>aane>>t Record Return      to,"      8. I!Cfonal 4             Office (dei>ed From Sccford                                                               Vole-.ie         Yel!0>d     - Sec!el Fiic edition

()(etc(a(a( r.n( a; ~ r )~ C( ee)c I nfl

          ~5!'V" J.ft&g4
                       ~

t >> ~V~'.: >.) d".I 4 aa il T<<a >a 1.;, ' according ln Freeman, made no sta!Cn:cnt "when hc first look of- ~

                                                                                                                                                                                                             'ut
                                                                                                                                                                                          'li!

hn'dwards, (ice hc s!atcd puhlicly ti:3'. ~ Br HOP)IAX KVOLFE Ti:c fornicr ci!y attorney RcynoMs, 'mith I S.i.i>r(i St>!>

     >LE'O'.'i'KRONA L'EACH-                                                                     added, "It can easily bc prov-                            [Jacksonvialc cugir crrs the:

Forn'er City Atty. I c Frcc. en that thc sy!cm is Zcw thrcc.niaui bloc fucoj ivcre man charged ycs!crday thc thc bc:I in thc s'.atc." city cou>n:isiio>! mct seer::ly rdost profi'."blc asset. V:ith. Frccnmn dice>are', "Tids sixth. Flcrida Pointer. ani! Light Ol!!c!3!s at Co:nmr. F. L Edwards'ffice bcfor= the I" ont a ircll.operated utility, taxes would 3!!nost have to b" doub!Cd or thc cily s serv. action v:as tai'cn by T!p'.Qn, Ed'Aa ds aand a!ai'0 'a:lau, Qgains'I t!ic advice an;1 rec. ices cut to trickle." onimerdations of thc city p o vr c r company appeared a' "*,( C~ Frccman, irho quit his post r.".aragcr, lhc supcrintcrdent pub'licly at 3 commission

 !nccaLO>>,

ivithout gia'ing any reasons, of electric distribu! 0:i. ti!3 Freeman said ivl cn lhe Qcciarcd ycstcrdayI "XQ city supcriratcndcnt o f c!cc'ric . generation and t'ac C.".'i-;:~ Fpf'L officia!s did appear pub!ic!y the cnmmieslon :or Robert Arnau "ivas sup i 3:torrc tried to wake it appear spon i!posed to notify thp ncwspap tancous and un a >Iauncd pre or Iha Comn!ssiorcrs.icrs and Lcc Frccnian didr.'t." attorney sho!!ld attempt to

                                                                                                 !nake pub!!0 policy but as ci!y 0:iss!Qn 5
                                                                                                             ' sat'v;ith thc c o r-and said riore I!ian I
                                                                                               ~should hav concerning the n

torney." Eic said, "They kn well the aclio!1 ivould bc costly to Ihe city. Fred I!ranron Jr., adm!!!cdl Freeman.inhisfirstpubilc,f>>tastic and u:i Rp!"incd Oc. The firing of Elcy!!o!ds, Freeman's charge to bc cor.!utterance sii!Ce he quit the'.I!on of thl thrcclnan major!. Smith 1! )Ii!!s 3(im!!tcdly set ~ rect but s id, "I v:cnt to I;0" city .sla,'I v:vcks ago. dc lty fArnau. Tip:on and thc city's no vcr renovation I aids 0 !cc ilndcr t!io cia.cd. I quit .mi.c >d,c.y!1-rue. r...n Iircil t..e c>ly s

                                                                                                             ~

he. ut:! ay cng nuc.".a." and leaves thc CI!y v:!'.!:Qu! pression ive v:er'c to talk after the secrct !uect:n>> about gcttirig sonic en!crgen. cause I v:a:ited lo bc!rce to lic said hc lcrnied thc ac-ci'owt'r foa thc city this fi i!t any 3!!1:n!pts b)>Arnau,i"these these>t 0!i far.'Qs"!O'>ccausc in thc event of a seve!0 i!in v:inter. V'hcn I got !herc I three comuiissio:icrs tnrcc men knew that tcr such Qs Inst year.

                                                                                                                                                                                                          ~

four!i ti: y f!'PAL) v:aro Edw! ri!c Qnd 'om Tip'.0:!.'nader thc profess!Qual >>uid. V:hO alSO faVOCS Salcj tO ruin,':::>CC Of:hOSC CnganCCrS Our dickering ivi'.h Fiocii!3 I'nw I tri'ng to buy Our plant."

     )Ira>>rao!i also charged Nay. or soil 0!l" !'ta !IJ SyatC!il. (ca.y S CI!Ctrie Sy:!Cni had uc.                         C     ar(l I ! Iit fQ e 'f.'a!acy Con!e knQV:nnVCC th e'.3tc QS Iia(e rp Ca)aret                  l:10   SCCond         niobe'iiiC!i'dt (J  dl&g (    1  (tf M eJ~> ~

a CICC r!C ger era!in" Syatcm 0! r.!nc Flcrii!.! ci!!.",s o.'orn. to bliy. Og'f'-;"Q~<(~p>) (pisa!>!.0 si ". an:! I>ad bcco!nc Brannci! and Col>:rdr.'.I'-"I.. I rcco nice(i b.' i n 3 n c I 31!

                                                             ,rr.~rad'>>.( JJ-,y-(

Ill J houses as " sa!!nd and L e J-~f4 0>aerate>I cv Iaa 0" h:i '-'ic'! v:cil'>rA p!ant bu'. !o dale F'," S'!i.IIXA I'E'Cl! Freon!an s!id!he oniv'pub. A pub! Ic n>c"!!:", On thc pro ',0:>. E.'dvvar;Ii aii,l .';3;or Ar. Fin::.>da Ia>v:cr 3:id I," po!Cd S 10 Of thC nn>.'>!VI!aaI!!Qu V:3: Scan>r 0: ~ balll noiv drai:i::a d3"..::..-.;: poivcr pea>. Is scii.du!cd fnr."rh>,s bc.'n,'!kcr. fron> an (:80 p!3. lo.kau t ti:C Ci'"!ll 0!'Iua 3rd 1.0-1!Qr. T i'Iona bcr of.co!Onicr<c auditoriurl. ca>nl!n: is. on. If thea C!13raca !S 0 ~ ~ ~ ' ':. t .. C p iO . a>> (, i'"" a 1 1 a, ( L

                                                                                                                                     ~
                                                                                                                                       ~

ular incc!:::>> Of I!>0 city rain> Vr'c:>>an i'id thc ! inrs a

                                                                                               ~

musion ii>th lli: five coi'l1:1 .'v.: ra'>>'>vv.I 011 I recoil:.

                                                                                           ~                                                               iso!ital    la  '1 Cii:Ii.vd sioilcrs scao(v:I 0!1 st.>':.u '1:ii! 0:c ">a.a!ban vf !Iic 313:!0 ar ~,                                  prov;al.                               (

flavor I (""rt 4> !131( pica,id. Idrcr of '!i> .'i':1" .vc:I:1 ~

                                                                                             .:Ir.>rt did n.it bear out Tip                           I      tal'Ia !>iuaib'r    (aa  pca..d A>>ylh)dy v'>Jh>u.'. Iii slavdk
                                                                                                                                                              )'>Cori'.

                           ~

PL-83

                             ~
                                          ':'f4iaii,
                                                       'Florida October 17, 1956.

lh A B< Vright .- Daytona Beach Ben H'uqua 1'i'e would like you to deternine as accurately as you can the futuro plans for the expan ion of generating capability, indicating which additions will be steam .and c'hich r'ill be diesel, in the folio:d.nc municipal electric systems: View Smyrna Beach Starke Green Cove Springs V'e ne d thio infor'ation in conrection with so.".!e studies we are nakinp here. X reali"e th re are angles and cont5.ngencieo in connection with each one of th~m~ but X would app'reciate as concise a tate.:ent as you can nake on thon. Ben H. Fuqua BHF:mcl

                                ~ ~
                                             ~, + 1 ~,

77.4.',7

\       ~

t ...7 I 'l7

                      ~7 ~
                                                                                                              .PL-82 7

Miami Florida lhrch 2Q, i/58, lh A B 'right Ben Hi Fuqua lh

                                                                     '1     ~

I have received inforaation that under the Revenue Bond Ordinance prep red by Pi rce, C"r o.. rd f elburn, Inc. of Jacksonville, the City of:.!e:; -".-..yrna receives no pa~~ent to the General Revenue Fund oi Tno o .. ation of the electric system. Do you Lno:r if this

                           -the clir>ate for negotiations should be pretty Good.

is correct? If so, Ben HE Fuqua

                                       ~ 7  A7 BHF:es 7
                                   ~
                                     '     ". '7
          ~ ~   ~

~

 ~'0                                                                                                                           t PL-81 Day on     Beach    Pla.
                                                                                    ~ humus  t 1 J) laa8 Ih. A. 3. Ilrf~.t, Vice      FteafcLat                                                                    ~ ~

Cuaa ~ H Cole 1~1 .tt?%Vie FR.'C!I. PI.ORIDA, Znfor;=~tfon you rcqu"ated yesterday ia ahoun bolero:

1. u ~a~~ I:oa-.?l l"..A - tic:hly. 109 '. '.:A..noli "t., I; z ~ ma 0 ach tu'fnf red H. IlattL'.ella; Editor, Jail'l I'I carry c!lain newspaper.'ublic>>er, ~

Praacca 11. I?=Grat?l. t:ublfrLad Thursd=yc. tn: n.-.t'tuui - u=-".in. tnt.'; catt nt.,:;-u <<;;m~ su=un p-nli."iut, nnriii" ii. Auuttu; cu'tut, p.. ii. /uutiu publf 3hed galursdaya by tha pel fcan tircca ln ~ I; u ~B= rn> B."-.ach Chanter Ii~,.rfc a ?;ed C. nco J, J. (>clif:an, 'all czupaf~a c lair -'n oz thfa Chapter Zc..consistently recognize thc "-=!yrna Chapter by donatfcna, our .laat in munt oZ q50. 1lan!: of t'.ev ctlvrnz 1:"ach. 2GO Canal St, "<<Jo!'.n P.. De-lorry, plcoide:lt Ijr I> Dnrry ia c cdu tcd 'ili'th tt Q ct trent follou'ni'cqueot for cmpany aervicc by develop - fn C'ty territory, th t, "=f !lan "~yama f"a t equip""d and able to furnf"!l ouch facflitica, than ot!;Cr utflitfca thould ba pe~fttc to do sou J, gi, Qpp og;. r of 8 pa'3 Super I!art;ct and o ttafda ra:!ch property, uaa elected to Board cf Bfrcctorc durfnn January, '58t Stocl;Loldara'lectfng.

            ".~~ynC PCaeh Bi!3<"..Zrua gild Prot:i ra~or            al 1::."."..".'a CI".h                     n::

Off'icerc for '"8l ~vol;~l .,'ox='.n, Irccfccnt; 1~an"ca Ufllfa-o, vice proof~ant; an.l lira. JAnac 0"-ntry, rccrctary. 1'c" pr.vms nc.".Ch Beard o>> "e".ltorc 0 feet c for '5v" "-"t"rct ~t'tone I'.ll?:na, pre"ident; A. A. Taylor~ vice preaf dent; Ceor"c lhlrtfn llnrchall, treasurer, aad I 'rrfa I.'rf ht, tccrctary.

            ",  0. Shfnhclrcr, J" ~, I;caltor, ptcvfoualy of Sanford, fo noil lo"atcd at I'cu f~~na Beach, ilf.'.; oiffcca;at ~n]0 Vlurlcr -"t., 1!f'"!:.r, 3,. A3. Shfnholrer, i.aa oua-tf;.c p"cafi?ant nf Ganford Atlan ic 1'.ltioaal Bank. t,'c cn)oy"'i cntrmcly fine
          .rolatlona Mfth Iit Shfnhalccrg J ~

u

1

                                                                        ~ ~    '                                                        ~   ~
                                                                                                      \                                                                           ~

0 (

         ~ hn
                                                      '1       ~

1 1 ~ 2

 . r~o!~'o>>c i,
                                                 ~1                                                                                                                         'f'?~g
                                                   ~ ~   'h
        ),o
                                                                                                             ~)o    . 2
                                        +-.,o~x.Beach Clncvbar of CO~J rca 1&i ~ oz icara: l u uc X ~ 1 4~as) o<'ncr~<<rr~rr                                    of Iho .=s Phs~cy)        pre "5.dent; Charles R. Jarrard,                          rotor court c,...crf         ir-t vice     praaiclant; Attorney DcvH L.
                                        .$ .')cannon) second                     vice president;         Vivisn Oylcr) fish-camp cparatcr, secretary-treasurer                       .
                                        "httorrcy              Sham.cn 5c              rco'crcd       Republic nf 'Kith athcr coed acceptance              in tlta Ci'ty."

5< 31;alo'r a"..J i<<ilh<.".r, J. C~nro ,o".i::11'"..on il....'..", Io-., 303 Cr <io Jo".io<o;:,no~>>na I'loricic Pcuar cf T,i".ht Cccpzny ctf.11' ",.ply ."." .'ce to.:lr. f')vary s na'.z develop=ant ctcct of the Calf Co'ursa) '~adiatcly ac))ccant ?.'av '=";;aa Beach city litti sa h's territory you cft.l3, recall) lms released by the City of ?:cct C~'ma F. ach at tha rcc?ucot of Ellicon Hc=..cs) Irco lh'. l'.llicon of that cr.-)ani"" icn, ro:: deceased, and oparat5cns ara .Cacti"uad by  ?)ra h'Zarhya

                                      " httorney Robary H.?~tthcus, lc)02 Live ('a?:, ??a M.-~a ""ah, represents llllicon I'                  po sf Xrc. rAt raqur ct o ?a, ."?hatt..cuc nc abandon d cnod ra'ercacl ea c.ant righto over lore." no J ?)cld by rllicon:.l"=. s, .rc. I ~ound:-Jr. llatt?:;s vary                                      fri ndly a. d
                                       '~'t fgiru i>>decl in ou), buofinass.diocussicr relic din;, tg ., rale" cc, Hc eisa iniarrad t"a"tu". tlcat ?)c)ssibly tha co.:p ny voci?d tave cn opportunity to react - service to this d velopacntf that'r. since proven out.

Rarrnh )....o!< 3'<!!i.". Cl <<. Fn,, "..<..;. 0".;"<Uf ia p:.".".I'.on! cf Ih<o Ci ).n cl Jc!".. i!o;. 1" a<1:"rci"-in<; cl<..i< '".r. ai cc...'.1.'".,:.r..la<i!n: J. n. 3<!<2, v r)or

                 ")                      Cozart and?~ttt Kol'ly. Kris Club om property 5n lliooicfn City.

h< ~ 1 .Va.haVa ConSiotantly baa'2.'Cd up their par t On by>>2'Oc C>>C adra>>tie)Z.'inaa 1'p2 to z~y l "oiflcdCa. Va'va alen essistcd in othe= entcrpri"co in.correction c:ith t?2eir a"t:ivitiec) tlat hmo Scan vary vali received; 4 V r Coraracln Civ5.c 2;acociation C c.i" ccr: i;react t'. CoÃ~) l)resident; "i?le J. Cozansf vice president) lhs..E'a Palm, treasurer; anci Charles Ja ...ardf tacrat~ry. Annual matin" t.=s addrco.". d b> Gcn tor P.. V'Ill:-. "~utiar. I ", '\)a+i a C? 2 2) o f. ??<h g 0, 5 a ?r.o<~cg

                                          )h) oL         .icarst             'x".:O~io I.' ?ocClallh".nd) Prqoic?      "nt;     Caorc<<a   .""rth-llf vice   prcridcc l.f Chcotcr             .V. pobcrtcon) sccr tery;                  and  t'ill)ca    Croon, t"".-.surer.
                         'o 1

   )O'a      ~ ~ '
                                                                                 ~, o,v "1                *
    , ~

r r,

                                                                                                                                                                   ~ r a

v

                                                                                         ~pa .a      3 rr Z. G.       G:  ri.ltoa        n-"".r.t -..".nG at ylo-.'. '= ..""t Co.                   t        1..1   rva~c.. "..re r~'c  botii    I:aoic   l'.r. !'Ia-iltva. Iie'c be..n. closely                       ai    o" Iatca icita Kiwanis Club at     !,'cu   ayrra       Se     ch.::a'vc ill;a~isa furaisn                      4    rata iaioi-..~cion to hia in conn       cticn    I:Zt'.I      5'll Tvo",c        Is'      v   ~    ~ ~

T.

                                                                                                        " "u c li           s ver/ f&cndly tovards this      company.

Ireu S~m:a He. ch Ki canis Club

                            '58     officers: 'l mn                 zeoifo, Pre"ident;                  Or. e'iicaiolss Estcrnay, vice Presi                nt; ttilli~:I.~ llcspie,                    s    crctary-tre"surer; B. E. Littl toii, I,ay 1'tioaas, Gcor"a r

Cl.

                         , Dalla, Ita old:-I"::cc,                 Z. C. EalJ"iii, ',Jilli~ L.;Iri'zit and lhavid L. Shannon, Mhoa Q,

Ice've rientioned before. Attora,.v G"or o z.. ycllortca, Gat Grzz, al"a Pre'1'Cnt i: r "nyrna ."Oa'raCt COr InC., 1 12G Caaal GtreCt; ill:ael"e. prc ident of East Coa" t itiShuays Association.

                           >L>>. Pullarton uas selected                     by Foaid DOPa'rtncnt for rielit-a&say Procuraa nt in coancction         uith 4<<laaeint; in that vicinity,                             and acco-plishcd a very c:ccaltent                job.

Yaa I)alton !ra{tap t.":If te Send 6 I~tcrialsz 523 Saith St., 'iav " yrra Beach Ue botii k:lo' ~ '.hite 'Ir Fito is likeJise vail ac~~ualated caith aii .I xrM

                                                                              ~

1 his;,ez York cLzys and t!Iiite's previous editorship. p 1

                                                                                              ',rvr"             vv
         ~.

a

                   .iie 'Pelican noted Juaa 12, that " st uy of sonia' alii. na~

of railroad, eras aut: criscJ by the City, Mit 6 co lsul tanto of Ft. Liudcrdale. Gcorre ~-ery of Leery I 1'rena ia, you recall, bavin"

                                                                                                          ')        nt Sp.

U.S.111 arJ C'nal St., vest Iiliiy p)anair.;; dnd "caine L baca arsocfated havinS been c sociataa. i ith his bc:fore. ee F-.ilrr'>axe!> !+~riage Lcr ioa 'Po t '1.'c 17 L"e Bur~" tee, cot<sac"r; 1'.ocr it. Cl:.acy, second vice cot. ender; llarcus Cb~,.~er

                       . scrEcaat-at-ar's; pev. Joini H. Piet:ens, Jr., craplain; and GcorSc Iil.lier, adjutant
                   ---"",.-.". 7""ht Club.

J hn E. rauaa'el, cermouore; C. P.. i;casey, vice co "aodore; and John C. Deal, rear ccfxlodore ~ ,

                                                    ~  ~

n ~

42 t ~ ta 2' 4 ~ ttaee t444 F'l Offal DA POV4":rl G LIGlHT COMPAN Y iNTER OFY!CE CORRESVONOENCE

                                                                    ~<~>>OR    Daytona Beach, Florida August 19 1958
                                                                                         <<Of'lIS TO Hr      R C   Fullerton, Vice President rgohf          A B       Ural ht 2:uadf cra KeW   Smn'na BeaCh    FlOrida In response to your letter of August                         11, the   city officials of         New Smyrna Beach are as                 follows:

Robe. L. Arnau, Hayor-Commissioner, Mone-2 (General Contractor)

                       'Thos. E. Tipton, -Zon 1 (emp"o;ed ~

e d by FEC Rwy.) Julian B Hiarris, Zone. 3 .(owner of San Harino Cottages, Beach side) F L Edwards, Zone .h,(member of contract:in firm, Watson & Edwards) Fred R Brannon, Zone 5 (At:torney) Walter T Slattery, City Hanager g Edwin E Hu hes, City .Clerk ~- R-Lmyroaman, City Attorney David L. Shannon, Hunicipal Judge j~;" I ".o +++ '".".Are Abbe-Pa'"tin,"Fire-Chief e K2I..'Pessler, Ch ef of Police e I am attaching copy of memorandum dated August 19 from Hr Chas H C'ud. to the teriter giving additional information uhich you raquoa"ed.

      'ther's              who have been active in th                community and      civic affairs       ar:           Hr Eric         '!watson, senior member o the               contractintr firm of Watson 6 Edwards, Hrs. Harnah D Bornet, formerly a memb r of the City Commiss-'on and who was appointed by the pr sent Commission to the new offic of Public Relations Representative and Goodwill Ambassador and the following of the City Advisory Board: Hrs. Eleanor Bender, Wm. L. Wright, mem-'ers I E llamilton, H E Weimer, Robert lier hberger, Harold Brown, W W Gunn, llarry F Holt:on, Jas. B. Felmet ard J E presley; Also, resid nts of                    New Smyrna    are:    Senator E. Um. Gauticr and Harris Saxon, Chairman                  of    the, County Commission     of Volusia County.

I believe that this ~;ill give you a starting point and I will be glad to discuss this further with you while I am in Hiami t:his weel;. ABW/Ass. rtg~k~Lt;cilitl.nt a ~ ~

              ~t 4'4(
                  ~

ft2 1g'Jl

                                                           '.' - Nr       NCGroqor-Srnf."th, g
                                                                                                   'I'
                                                                 -  Doc    Files PL"78
                                              ~ ~
                 ~  ~

September 1G, 1958 Efr. Hilton H. FranJ, Vice President 2'ranklin Van Sant and Associates 152 E. Gilrmn Street pmdison '1, Vl3.econsin

Dear Yr. Fran):

I certainly appreciated the irrforrnation about tow Smy rla Beach 1'te ha vo been wo' irlct Up til .. e for aarna lxttlo t:i& o"i~ and it. aeons to b" aboirt an" o the best "prospects" that.i;e.have .had. From the way it, looks no@, a nossiblo refero>>dum could not b o:cpected b. =Ore aprin9 or. p zips later irl the y Q1., but wi arc cor 'iinly c-'0'cj to D3' eve' effort t:0 acctuirc tho, "o Jexty I ). no'tr i 'a;1 do cl better job for. t;lom than t:ho city and at: lolfor rates.

              Ãe,vou3.d lirco v ry much to gct acquainted with
  'our        friend at:"tew Qmtr-ra.           I   ara certa'n h= we'll have
   , a    lot. of good ideas and 1:o woulct              lx:c'o'ot       his Jug-
   .'cjestions.,       Tt; sure would 'be apprecizteci me his narro and adc'-ess.

if you .~auld

    . send I

Thanks again for your interest: arid if; you can gct off and spend a little time witll us we will enlis'ou in the campaign t:oo. Very boat wishes to you. Sincorcly your-, Robert 11. Pitc

                                       ~  Pre-"ioo>>t 6 General f'.*>>ac or FUF 1bh Dcc:     Hr. Wi'la>> B. ttright (With      copy of 1:.r. Frank s       1-ttor)

V t

        'I

~ '0

  ~  $     f, PL-77
    ~

• f

                                            ) ~

Daytona B ach Sop sober "2; 1933 Hr Hob rt H Fite, President A 9 Uright

                                     ~ ¹8     . l)Y)7!'A D ..'C)) I'LO'YIDA
              .ho roportod verbally, I lxet lxith the llevv Smyrna Hooch City Co~~ission at a xe,ular r "etinon i'.u"uot3S and at that
              'oxxeotin. told the city ofiicials th" t. Our Company dosired ljori:;arith t!LC~ towards loaoin" tho City s electric plan nnd    dictribution syot<<m.

Present at this reeting vsex'e tho following city oificialc: Robert L Arnau, ?LayorMO;xlissioner, "one 2; Thorlas E Tipton, Zone'1; 7, L -dv;ards, Zone i; i'red !t ) r nno:l, lone S,'on-missionox Julian d ))arris, zone 3, (.-ao a) sent. Dy throe to ono voto tho Cowniosion a". rood to re()uest a pro-posal from our Ccrxpany. Cont i ionerr Arnau, I'ipton and gdrnrd voted -"-or and Col.missioner Diannon ag~ainot re()uest-ing a proposal. Other city officials px'eoont at this rxeeting vr ro: !5r P. I~e 1 recGLan g City Attor:loy, who su!iso ()usnt ly res "'ned and h" o b..on x'eplacod by tir J U Gilleopio Qd sr'alter T Qlattcryp City )(ana'er,

               ,J mould su~Gest         the follovzin( proceduro in our rlegotiations, arith the City:

1 - Contact each Co.-..rlis ioncr ..nd City )Lans-er in-dividually and explain to t)leva our reasons for crit)xholdilxg " for"al proposal at this t'."I". In vie(1 of the rostxictiono in th>> City Chax ter con-cornin lease or o*lo oi th Ci-y" olectric pro-perty, it Lrculd he prohibit've to attex!pt to ta):o any action nt'1 tho Ch:lrtox v':Ls ch'~od. I had discussed tn'o vith tho Coalwioo o prior to the roy.liar rle till.; and 'I b lieve tllat tlley all reali;lo 1 thtlt not lin~) ccllld LQ" acco. 0" i"'hod 'under tho present Cit'hal tcx'xrovi 'iono 'inc the L:.ootin~ I have tal)'cd \/ith C')'.. Liooionol'Lip'C.L <<lid 0 'poet to cofL ploto ry individual contacts dllrinC this rreo)x,

IIIV Pb>> V I I

                                  - Zndoavar
                                                                                  ~

VV

                            , 3                     to obtain 'tho Comiaaiou's approv" 1 of:

,'1 (a) poatponin", puz'cha o of any additional

   ~              >>'
~'       I'V4Vv>>erI.                                                                            ~

goneratin~ couipzont at this tine Vg . (b) agreein~ to request a 'ch"rtcr chan-,,o at the nex Loi:.:1"turo which would parfait a realistic approach of tho 1 sin or sale of tho City's eloctric property. r: 'Vei The Co.~isaion could, by r...jorit>. vote, pass a resolution to a."~nd the Chart" I

               ,4 Thoro is no doubt any propcs d ch:.rtcr
                   %4C chan. o would ash for a refcrendun and this rcferondun should bo dccidcd hy a simple r:a)ority voto of freo holder or of those votinge 3   -    If 2 above is a""roeable to .tho Co;=.1 sion,- rto would aroo to inst'll a ubstation.of 1000-15'-'0:. '".. capacit;,'3.2/

4 I:V, possibly in thc ".ission C'ty ..roa. "rom this sub-station we co'd pic!: up tho Sacaula feeder, and also, possibly thc City w" ter nu",.>pine~ (vrclla) aud even por-Ed~ewatbr. Connection chars'o, up and down cost 'aps vtith credit for a"lvape, should a@pro.:inato ~~5000.00 and. xvould bo refundable consummated, if final negotiations for 'leaso aro 4 - At the proper tine,'say after tha first of .tho year, we should obtain a:actin. of th'o Cov ~iasioners in the nature of an ".::ecutive session" fo really norotiatin~

a"proposal c- lcaain. or p:: chase 'of their electric pro-perty. This al.o v:ould be subject to the na:iority of freo hold ra or .of thoso votiu;<. Tho reruiroc:enta of both V>>>>V roforendu~'-, in all p:obability, vvould havo to be spoiled out. in tl.a necessary ch'r or ch.tn~c "nd I col taiuly viould ondoavor to keep this" on a simple na )ority b"'s, Ac pointed cut by Attorney E )7 Gautier, vie can cart" inly uao tho next few i~onths for ca~ucation purnoaos and maintain th ",;ood noi".hbor"

                        'policy that ive"have been xollowin~ during tho past sovoral years.
                   ~
                     >>   I  vlould      li!:c to discuss this fu thor xveel: v>hen I am iu Liaai.

vvith you, if po"..iblo, Thursday of this

                          ~         >>

PL "76

                                                        'F'
                                 ~ l ~

2550

                                                                                      'EST SVCPSA PFiXC:-I I;JDICIPiAL    L CTRXC  SIST".1

1. Get certified copy of resolution of Commission re-questing Florida Power 6 Light Cc.-:,p"ny to survey the electric property, loo'.c5.ng toward possible pur-chase or lease.

2. hor); out plans with the City Cori.aission to proceed along tho folloiring,lin a~ I (a) Florida Foircr 5 Light to furnish, at regular, charges, firm swor th'a ':."nte as n cdod by No~r Snyrna Beach. Co.. ission to agree ver-bally. not to order any additional generating equipment in thc meantime and to initiate and put th"ough legislation changing thc.

Charter in sucn a way as to enable tho City "to-dispose oi i'ts o3cctric p"opc ty by sale

            'or lease upon a majority ate of tho free-holders pa"ticipating in an election held for that purpose      ~
   {b)     Gct Com~ission to negotiate in executive meetings next spring, probably lIarch, for lease of the system and got an agroem nt.

that arrived at, if a mutually acc "table plan can bo it will b" put into ;rriting and passed a an ordinance oy th= City irmodiately after agrees;ont ia reached and subnittod to a voto of the people.

       ,' .   ". r ~~

l h

                      ~
                                                                   ~ ~'
                                                                          ~ ' l S ~ ~

      ,C

+I W~

         *       ~
             ~

V Hr. He bert L'. Butterbrodt

               ,106 Granacla        S"rcet
            'ew        Sri~rna B ach,        Plorim Dear P".       Butterbrodt Pr~   ..". <<n,""d>> cn, .':Iisconoin 'hagi as you    >:now, been     interesteu in th= electric "ervice situation a" New    S..iy na Beach and w>>oto to r;. about youc. possible interest in         it.

JL".. Alan B. i~right, Vice Presid nt of. Ploric'.a

           . Power 6       Light co>oar>y, i:ho is in'h rge oi our op ra-t:ions in the norti:em oner o" the state arrci who has headruarters at D y Gna Beach, has had cror e preliri-nary r.e:oti"tion;: with the people oi:lew G-yrna loo::-

incg towards oossib3.e purclraee or lease og the electric sy<<'tee. X <<cnow he woulc like to ui "cu 'nc r;attor you ard crilli X ~at sure, cal3. on you in the nc r future. X hose to do th sw>~e tne no.".t tine X m in that part oX the State. X uouM b; vary c.lac'. to hear Pro:a you and to

     ~
       ~       reset you if. you ha@eon to be in I:,i>>:=.i boioro X.have C.

an opaort'uniiy to rot up thoro. X you c'o vi"it i4i-~AU<< please let rre <-.ow. B:e;tc3.c~hone n<<r:-~er is, PR 4-5333 ~ P and ny office io at 303.2 Xngrahar> Zuilciing. Very best wishes. Sincerely yours, Rob rt JI. Eito Presic on' Coneral IIanagor fP JP 'bh CCr I!r I!ilton 3; "rani I'.r. Z.3.an .'3-C

A ~ & roq4 lOO) +<Opal I ~ N 4 4S

                   .0 pL-73 I'a t=LOBIDA PO'~V ER & LIGHT COMPANY IL C                                 INTER OFFICE CORRESPONDENCE LOChT lOM      Daytona Beach,   Florida PERSONAL                                   PhTC           November 7, 1958 COPIEC TO Mr Robert              H  Fite, President A B         alright sunirerI  CITY OF NEW S.fYRiXA BEACH gW)r I am     attaching a certified copy of excerpts from minutes of the Special City Commission meetin held in New Smyrna
                                          ,    Beach, Friday, October 3,         l9."8.'he excerpts include action taken on the "proposal" which
                                            ,  we    submitted at this meeting.
                                     -'        The aftermath       of our meeting resulted in        a very vigorous.
                                      .    'articipation           by  the Munic'pal       Ownership League,   culmina-ting in an open meeting in the Chamber of Commerce audi-
                                        . torium at New Smyrna Beach last night. I have given Mr Fuqua a rather complete report of this meeting which was highlighted by a t'rad against our Company delivered by t

Hr Phillip A Lobsinger from Lake llorth. I do not think, however, that Loosinger s remarks made much impression on

        ~
                                           'he        Commission    majority.
                                              .I   have had an opportunit'y to talk with Hr Herbert E. Butter-V                         "

brodt and'e also attended the meeting last evening. Ye ap-pears anxious to help when we feel that the time is opportune. ABW/ALl: Attachment

                                                   ~CERTIFIED      COPY OF EXCERPTS FRO.I ilINUTES XN DOC.        FILE "NEW SNYP21A BEACil, CXTY Ol  GENEM,L" CONFORHED COPY ATTACHED
              ~ ~

Pvtlk ICOS PROC lf i'4S I' r 470%I

      . k  LOBIDA FOLVER            p~  Lla<IT                                                                        PL-72 C~tgpANy'NTEA.OFFICE COAAEGPONOENCE                                                                          'I Dayton~ Beach     Floxida
                                                                         @JLTC April 20    1959 coPIEs To  Hx'en   El FuoIua To    Hr Rob     rt Fitc El           Pre idcrit PIIou, A B Mri ht SUSJECTI                                       'P'<A  EAC'I
                                                                    ~ ~

In order to <ive you a more complete picture'f the electric distri-but:ion facilities at Hew Smy na Beach we have complied 'certain in<< formation not p" viously submitted and have also t:al'en today, a set of. snapshots depicting various types of construction, rural and ur-ban, which are enclos d. The pictures indicate that some of the Cit:y's distribution is in very good shape while some of it par-..- ticularly on rural laterals, needs maintenance. The distrioution system ori"irally was operated at 2.3 Kv but in re-cent years has been convert:ed to 4 Kv. The conv rsion has been do..e in stages over several yeax's but tne most recent, at which time the .

          "backbone" feeders were "beefed" up, ~ras carried out bet~re n Feb. 6, 1956 and Au-"ust 1, 1956. This worl: ~res done by Soutn astern and represents corstruction certa nly approaching oux specificatiors.

This type of construction amounts to about 20% of the City's system. Sixty per cent is typical of our constxuction just prior. to perform-in~r a.conversion job. You mi!ht say this is "midway"; it will operate quite satisf'actorily out ... should bc improved froIn year to year under planned system improvcmc:It prograAI. The 1emaining 20%, in order to provid good service, should be worked ovex'mme;liately. Overall, t: he distribution'system will compare very favorably with ot:her municipal systems in the State and is about comparable to our own facilities in Elolly Hill before sr converted to 13 KV. It: is estimat:ed that this system is spxead out: over an area of some 25 square miles with aooroximat ly 140 pole line stiles having an averag d nsity of aoout 35 customers pax mile. Southern Bell T=l. 6 Tel. Company is att:ached to 2,279 li .w Smyrna Beach poles; H w Smyrna Beach is attached to 511 carne;I by Southern Dell.

                                                                                                                       'k4 4444444
   < 4>4  ~    F 8 4< 4 ~ >
    LpplpA POWVER 'IGHT                                       CCI '.PANY                                                                44 tNTER.OFFlC4 CORRESPONDCt4CE                                                                         ~ '4   ~

4 bAT <;

                                                                                                 +OP<f5 TO Iuoi~~<  -

New Smyrna Beach Page- I> 2 Xn regard to the value of this system it is difficult to set up a all parts of uhe system. depreciation factor which would apply to

            -    Fox insta!:ce, the present                       va.'.t!c v~/sac oj '.r:

of tire new subdivision areas repre-seng a large part of teesystcrn. Since 1952 tne numb"r of meters has increased from 3500 to,5674 at the end of '58 r pxesenting an increase of 63/.. Xt 's ther"fore lo"ical to assume that deprecia-tion on t:hese ite..s would not be at the sam<a rate as items on older

                 %ines.

Talcing the above into consid xation the following represents the present day value of the system wilich is based on today's r pro-duction cost and applying proper ciepreciatfon to each i:ndividual account. Acct. 354, Poles 6 Fi:ctuxes $ 129,800 355, Overhead Conductors, etc. 137,500 356"'U. G. Conduit 500 357 U,. G. Conduct:or .6, 7,00 358 Transformers 6 D vices 135, 000 359. Services, E tc. 92,900 360 Heters & Soclcets 80, 000 363 Street Lighting 90 000 Sub Total $ 672,400

                                ~, 4   ~

materials in Storeroom

                                     ~ ~

45 897 Total $ 718,297 Referxin" t:o the estimates submitted Naxch 5th to Mx Fuqua covering our cost to serve I! w Smyrna Beach and to provide some i!<<l:ediate system improv. ment work, as point:cd out by you, t: he total should have been $ 400 OCO instead of $ 4l0 000 ~ In checlcing the worlc sneets 1 find that the distri.bution substation, 5000 larva 13/4 Kv, was changed . from $ 40,000 to $ 30,000 but th total addition was not changed. gdfl'> (',4(graf Ch 4..>4 > O'..3

              ...>'< t.'.c    <<T>n
<4  ~         ~ ..M 14TI i~  ~          4) V4
                                                                                                                                        ~

4

Folrk III' Flo! 41 t'ai F, 0 4701l

            ~

8 L[61]y COMpg Ny

       ~~
     ~  FLGR1DA POWER
          ~,      INTER OFFICE CORRESPONDENCE OATC COFICS TO TO FROM IVOJCCTr  New Smyrna'Beach  Page   Pr3 Thc figure of $ 80,000 included in this estimate for system improve-ment is ma:1= up of .$ 50,000 for. compl ting 13 Kv e;cpress feeder to the Beach and cert:ain conversion to 13 Kv on the Beach side and
            $ 30,000 for immediately requixed. system improvement worl: on the mainland, which also in"iud s conversion o the Samsula line to l3 Kv.

In conclusion I would lil:e to say arain that in my opini'on the aequi'sition of New Smyrna Beach certainly provides some dist:inct advantages other t:han just takin over a municTpally owned pxope t:y. The population is now approzirr>ately 11,000 which is very closely associated w'th our. Daytona Beach District. Mnen the Ponce d Leon Inlet i.s bridged as practically everyone in this a a seems to thinl; will be the case in a mattex of a few years, New Smyrna Beach will simply becom a continuation of Daytona 3each. The enclosed map shows the vast pot:ential of. water-front dev lopment which is really

          .just beg'nning to gct under way. Douch 3.le Island at:.the South Causeway is now being developed and a lax er development 1:nown as Venezia Fingers is now being developed at the North Causeway on a rather'3arge scale. Xn addition, n w d v lopments are springing up "along State Road 40 close to Histrion City and you will recall that t: he beach side has hardly been touched.          Two new industrial pari:s axe now being develop d in t:hc Edgewater area east and we t of the P;E.C. Railway with several small industr..'             already located. The.

larger developDIent is owned by a Dr. ThoI.!as Jones and Associates ixom Hiami and I unde- tand is w- 11 financed. Locat d also at the south end of Edgewat:er is. a large residential development: 1:nown as Plorida Shores. This is building up very rapidly and promises t:o be one of the b st 1;nown along the upper east coast. Part of H" HcCravy's t:abulation of January 30, 1959 showing electric xcvcnue, KHIl Sales and Custom"rs for Ncw Smp na Beach 12 months end-in. NovcIsber, 1958 indicated annual rcsidcntial ihlil sales ox 13,049, 000. 4In e; 4780 residential customers resulting in an average of

4

                                                                                                                                                                                                    'I t.

kala@'4>>J ~>> ~ hhb" 4>>4>>44 V'I V>>

                                                                                                                                                                                                 'I
                                                                                                                                                                                                       ~ r PL-70
                                                                             ~     ~        ~

I-A.4>>>>444 ~ 4 .i4 141 ~ II 4\1 ~ ' Cl I I I C I

                                                   / r'rl      A CL4Ih' LVI I ll4 ~

Q jl .1 V 1rIQ j I~ >> ~ ~ ~I 1 44 ~

                                                                                          ~
                                                                                                ~

4 ~

                                                                                                             ~   ~ ~
                                                                                                                        ~ 44'        ~ 4 4   ~  >>I  Ih

4 .....:.? ~ S: ' h i ~ '

4>> 4 4 IA>>

              ~    4                4     \     ~
                                                                        >>*       I  ~ ~

j r h4 1 V,l ~ Il4>> 44 I '14 ' ~

                                        '              ~,'4 I      ~    4'4           ~    >>T>>      ~   ~ Ih '       ~

I r .I, ~ 1 44 h 444, a

             '1  r,                       ~ ~       5    h r4  ~,    I         I ~       ~      a>>   1 ~       Ill ll      ~~          8        ~ I'      rrhr        .7       O'ree
                                                                                                                             , r  4   I   ~ ~
                                                                                                                                                                   ~  A      ~

I ~

                                                                                                                           ~   4   ~
  >>     ~     >>ll                             '4 I Jh>>                      ~  1                                                                              ~   Ih>>4~             r

thhhhOOh tthOC ht t ~ h t, O.htthl ~ ~ f LOBlDA POI'/ED 6 LlGHl'O;;;PAN@'NTER OFFICE CORI)ESFOHUENCE LOCATI0:I Daytona Beach, Florida PL-69 OATC July 30, 1959 COPIES TO To Mr. Ben H Fuqua, Vice President PRON A B Viright

                                    =sI:oaemi                      CITY OF ~ EH Sl'IYRt!'A BEACH T. am    attaching copy o f letter dated July 29,
                                '1959     that have received from Mr F H Lee, T.
                             . City    Auditor                     and Cleric of the City of New Smyrna Beach, wherein the City formally re-jects our proposal presented at th Commission meeting of April, 27, 1959.

Xn regard to th City's inquiry as to,whether

                               'we would bc interested in selling wholesale power on a long term basis,                            I  have prepared the attached suggested reply.                                         ~ i Your coarnents                      'will be   appreciated.
                                '"ABH/ALL Attachment

     ~ 'I

~ ~ ~

EXHIBIT G Three-Page Letter Dated February 19, 1965, to the City Commission, New Smyrna'each, from A. B, Wright of Florida Power 4 Light re: Proposal for sale or lease of the New Smyrna Beach system to the Company. Newspaper from Daytona Beach Morning Journal, June 15, 196 5, reporting on suppo r t of New Smyrna Beach Commissioners by businessmen in their rejection of proposals to purchase the C ity' electric sy stem. Newspaper Article from New Smyrna Beach News, June 10, 1965, re City's contracts to purchase diesel units and switchgear for City' electric system. Newspaper Article from New Smyrna Beach News, June 10; 1965, re friction among City Commissioners re sale or lease of New Smyrna Beach electric system. Article from Daytona Beach Evening News, June 8, 1965, re meeting of City Commissioners, New Smyrna Beach, to continue discussions on proposed sale or lease of electric system. Informal memo re Emergency Procedure for obtaining power from FPhL by New Smyrna Beach. (No date)

Dl'yean;l EeaCh VGbl L)M')" 1,9 }< Q5 Cf.t='c.'".."'.;j.on C't>: O.". k:e'; Q.))!:Oa "r PCC..aalu tl-."-.; !~".5Cr.'-.:a dCf,)C).,: ) sari.C)~> DP l'" C 0 ~.;: t .r 5 IQ) ~L': C

                                                                                                                                                                            ".f P.C                                             ltd't(tt                                           "
                               "P 5 Cf" C'.2Z 7 C                                     (..")"c"         t;  .l,fj 'tL'." '.Z.l.!1                      0     C'OCi)1                             c     s".>".t) c'"                  ':     'j    ., '"     P
                                                                                                                                                                                                                                                                  '(::           ~

C't0 t)jtt a) ya (C4.) ) <<) i't"rr "' th' 'gt -) j" tr.'t $ ('(Pt C>>) t t' )rra CC(t - hh C.)$ C Pg j r ~ C C C( C

  ~ ~    ta    ri       4~

( (5r \r .1( ra re+ f 'lrti) cc p J ag c )tg Qftr) a ~ a(')ctfhg( r if'c ccA ghhc a r r =

                                                                                                                                                                                                                                                                                   +Q t

a)tat i. t pt4% rtr C)a)g C~ h)tt gC () ~Car) hatg

                                                                                                                  ] Oh)             C(t wW A t'hA Crh                            C~    lt ac ht a                 C         O'       'c      a t       Aha)     c'ai htY Q L)hrc )ah(t jrc ec   a Cc:'c" c-g~

c aj>> '~ Co 0;- tc a" ~

                                                     -l 'f 8  0      E      t..h
                                                                            ~.j~

cr 't t C Of 4)'4 ar) s Ear () =

c. >> L h: cra attr fr C (a('}V) ~;.. )i '

Ac;: j::".':..0 lr.'cc. c!5 flu d~aG"

                                                                                                                                                                                                       ~

A

                                                                                                                                                                                                             '- )   tc)J<."c         <r's f":.)'f c.i.ct'e 8chaL ~c                        w        t,    ')..'         t       . t'c, 8 g 5 e, t                  c w   f-         .4,0,,"A'th) ~~~.l) 1 P t.t c                                $
                                                                                                                                                                                                                  '5          .:.c   t.         ~G   j .)r'r  c   h
                                                                                                                                                                                                                                                                     ~

c, c.-.c.'-P.,. t t .'.U G.': k'C.'*";.:.":~ 2:f .'l (;t'~.-"c "~>>r "-")" '

                                                                                   ':"'. t'pr't)c"vc
                                                                                            '.:"l'<         """..         t.!

t 9 l. D"':, of 8" i~)"-'~:;.'.l'." G). 0~V' rg f% I:(j'. C.') c"-~ L'l'""'..'."

                                                                                                                                                                                                                              ~  C I

( t ~

                                                                                                                                                                                                                                                   ~

c~t)-c". K .'

                                                                                                                                                                                                                                                                  =.

C

                                                                                                                                                                                                                                                                         )-')g C)        0   r)g)C.a)                  <t.. C'c-t-."c" 0 b.";                          Ear           e ~C"..a.:.'.0 Oc                                                                 ~ Ca C     Caa         Pvk( r                    hi A     C  fl t.;C. eo                    'V>      C;. t; C j. C='.<".".'t '. lC.C t, 'r
                  ~a              tq~ CS ~ C,ahr) v,Qdl )..; r,t'v a,
                            ~   a)          a ~ C        Cc' a

at C) t ~ ~

                   ~  th jh \@VIA               Ij( a                lp      $  r a>.c C'CC   ~

C c 0 ~ .. g, .C. t i d.r*., l. Cra ~

                                                                                                                                                                                                                     -. t..

4 a.t ~ ~ rC)ll C c .'h vG C('.4'll 0".. t)t tarh)(C j 0 l.ala.j. ".. X L

                                                                                                                                                                         'C ajC:r     ':.'.t; t'aj. j             CC      l "Ca'!)..a.aa 3(. T)g i.

r r i

                          ~         ~ >>    'i   >>t,          ~   ~

I lh -< Ct.ge C', .S ~ Lct

                                                                                                    'l c"

g , . Cl t('"i' ~ ~ lCW f j ra)At'

                                                                                                                                                                                    ~                 f       ir t

t gv a a h t a rta, c C a ' r

                                       \ t) 'i                                                          r)             ia C

C,',.C ~ t A 'aaa @carta

                                                                                                                             ~
                  'l   rap        c
                                                ~     C          ~
                                                                                           ~   -c Ua)           ~    la   C 'c
                                                                                                                             \        ~   .     )L       w   ~ h<    ~

C

      ~'

a$ 4'LS)>~ 4th'O OL Chr frit, h~) .g Qathh t.'ft'a a. tfhi Ll t)) V f" t C i h jr) it t J l C p Cia' ~ 'a<<r

                   +V:kv't):. ~.C.CE..                               ~KRli'aC )."<';i: X9 '

aa fp  ? f a>>+rt ~

                                                               +Qt          ta   ijra)c     ll q       f 4(l        ci    p  tah    <   t   t   c Q)           ptA      g  f g ra l)           )r      t    (7+                c    I         t)      pCC        f t.. LLC)t                             C~C'=QQ'15~                   1,"LQ LiCV..";) C~~                                             LVa       V~.J.~)o R~.f.h                          'A:-: <,Q                        "~lb.a <"

t a aaa

Daytona Beach F c "ru ~" y ) 9 1965 P np~ C~rv R'"o'Tt >~<0~ pa~if c~'e:> Sa.='=r.:-. Tie!'."o Ut'~": J~" C<;~.::'C~~.ea, V':(~.C:h erC, r.a!~ Or e,f fc."'..'vi~ !-'(.:~:au':!!." t.b~ QP"".>~~>y'l". ry.lt;:::>. j'- ).;>>XV!~ eG P j~tl f ('( ~ t: !.0.( C-l".) iiC~:f;.3.C:ii 6>> tent ~>>". 6 $ 'f5(,.V t( EAU 1d 7(.'LY ~t; 2!! l"h! t': Hat'.t<< .: !'I,ti f'.,! (. j;(,;1)"f:t'f'3 0 c"'.stcam':!"." c 6,er'A<'zl'!A 8'23c!( x"'! 6-." .,'0 "X 0 Q"."'. 5 ti Q(, l;. fjggg,L.C1 Pfog gi~lI l f" ( tP: (;!~<

                                                                                                            ~

Ll'.l: Ci.LY.

                       ~   4 1A'iV(h Lg! '                   ~ ~ I gtgl f, (l gt,<l(), g<l.                   <,  (+PE!iq.!                 0   h ~                               J c       ~     ~        ~

t!'9 JWQ t ".' ' W!, r( tt tI r'..

                                                                              ~ '"
                                                                              'tI           t~yX~:!:;

t~t 'h r tr<<' p (-<,A,~. ~ h ~ ) 5)l> t'PV.'!a Oc O'J!! i'(.".! i:3.f? ~

                  ! ~f '!  ~    ) i. 45"" (t,<!!                 C!   h!    !S""X'C$ !h("'g,~t                           <~   l t',t         f; tf!       f

('. i'" ".

                              !  ~

5'Oi ~~ 1'T 6 e ..c!.'(:t. f.(: P~OP(-'-)'"- ('.I:."""C.',:iCL< ~! V.",LV(-t.

 'iYi. C F'.O'L'.C C! ~'.6 i'o        '..v>'.1'~
                                      '..r!c'l Oi Z.iif. (.'i (; 8) t
                                      ~
                                                       ~

nc;irer!i,",(:r:.6  ! 0 ti-:,". penal.. OIK

                                                                                                                                                                        ~  l (7 l',I,(        <.'.">" .!:L PtS<~C.!

V!'!(!e!-. F3.Or.'.~1a Po!'e). 6 1 q..'l"t t Co'x:)"'n~~'o lie.'(t tv;1'6 a.t, (3 vt "tilcc:n Ac'c~<<i.ii t"!t."..x'p,0~i ri!id v.n t! vo oo i ':..-.;in (:(ii.';"ge 0, ,OS."!'.A). CX4.C.":.l XC ht,

                                                                                                      ~          l; ~i)'
                                                                                                         '""!l hit,     II W  4 !" 0',! LIXc~.. ~t48 'Lt'iP,
                                                                                                                                  ~ L    ~ ~

CC.l:t ..!,.:.i:I ~ C0:"~ "DP').'<:.! 1 t"i C', Gt 6;> ~ .~ ."'~! C 2 iJ,.'.t('.X'g

t. r'h h "t., 0 i 'h .

h

                                                                                      ) ) 1'!tg(~g'~~(1 gq t 5t                        t  / }        p>>

t I 1-;-::;.:..".~: (.".". tV 'l;@.II ~ CI I j.: -l...-e ~ ~ > ..t; 'e;:n V l,-. ~ s 4 p ~

                                                                              ~ i h'f'~'tt
                                                                                   ~
                                                                                   ~        '..'t.t:: rj Jth) h<     ~-                '..'..
                                                                                                                   '.. <~c, (,                    t ) ct    i "'C" i)tl     j,',i t   ~

( ~,g I ( 5 (. 'V

                                                                                                                                                                                           ~

q)~.

                 , L': .t .g'l h

rp%. t'i a'h ~Li I

                                                                                          ~
                                                                                               ~

         ~        I 4   tr>>I>aa t, '~F:,

F') wt>pi/ch g.((')

                                                 ~'C4C<v>> at.ll ".~'A'
                                                                       ) Q .0 )~,              c,
                                                                                                  '6 l + j( . ) ((ha
                                                                                        )v~Jc)'ch>'r",pTt 4'tc              ~
                                                                                                      <<r 6 J< "t l.'
                                                                                                                   ~

e r> g>>

                                                                                                                                                         ". /~ t+
                                                                                                                                                            > c        ((Dt'N J ~'>kit     )L Ic</

MV g -'L4J.lit

                                                                                                                                                                                           ')>>./

2'J.L'd

                                                                                                                                                       ~ t<<

DBQO'O.)G HE.'ll( h p (wp) l ).py ).i

                                                                                                                                    ~                                    ) t)(  r)

P"- (:. C'- ev CA) 0 (.'(")'.

                    )     jig>>q (< q ();              ~  <<r        (( 7,~ -,(q>> Cr)(>>gE r( )T           ~
                                                                                                                                                    /I 4(.) "0})
                                 ')("( ('~e 'a)).       1  l.   (. ('.f,. / <<"3 <<(:                          I h        , t 'I>> P f') (hi (

I r

                        ~
                                                                                                                             )'>1'h
                                                                                                      ~   C   ar     ~ ia                           C'   I"
                                                                                                      ),,(',       cri        ).V

~ 9 C r /(('/' I

     ~~         ~

(,f-/')e)i l>>

                              /aj 4 (     t>

(I i

                                         ~ ~
                                           ~

I

                                               ~

j '; 'i >>> l .', .C L

c. (".'r:-'"L i C.'.

                                                                                           ~" (t   Lt
                                                                                                          )'(!ll
                                                                                                                 ) i )( (".!

4~ l.('

                                                                                                                                        ):.".4)'4'7

(>~~i.)'".:". I') J: (('>c ) i(a ac>".'~X$ ()5 r UX (. Ir)) ( )(t.)

                                                                                                                                                                                                                                   ~

-) ).I'. v' r( '(:. (. '-"::l. i)( (I I j j ca/I 'af

                                                                                                                                                                                                                   ~

f c tc r ~ (.

                                                       ~,C-,    ( -i     ~     a-.q    t-/.( );            >    ...Crr     ~  ~    >  )             ~:  ~   /

I C e>(h> ~ r <<>' ~ Ih

                                     >r '

C ' I~ T .

  <<1 4 >   ( I  ~.   (  ~ l   )>>     j     I     I't      III           "

C ~, '>> ( +> )a)l>i ,t << f <<I

             ~

1 r ~ Q I.

HEESEEECSSEEECEE Gael.- City COEEEEEEESSEEEEE From Oar Soaiheesr Volasla Gare a N&V SMYRNA BEACH Con-cern over the manner in which a mfrority group has packed and heckled recent City Commission meetings brought business and professional nten out in full force at last nlgi1t's meeting.

         "KVe don't come to criticize or cor.demn," safd John Dc-
    ! Berry,     bank president        and spokesman for thc business mcn, who comprised . good porifon of lite standing room only audi-!i ence.
        "!VC just thou, ht ft n1fgh't be refreshing to endorse and com-mend 1nany thh.s you'vc do11C and things you propose to do for the c!'y.

An Endorsement "The fact that you don't sec us at 1ncetings is an endorse-ment of your actiors fn an acqu!Cscent manner. '5'e want you to knoiv you have a vast nla)orftf of tho township behh1d you without any reservation wha'.soever." DcBerry recalied a tflne twoi i years ago when tile Vohlsfa County Citizens Council tried to b!oc!: thc progra!n to f!nance a sewer system for the city. At ithat time, business and profes-i slonal mcn and women and respons!b!o private clt!zcns in thc community expressed their apprccf" tfotl of t 1c wol'r the Comm!!zsfonas trying to ao and called on tne Citizens Council to stop tryfng to ob-struct progress. Mayor 'ect of W. S. BCOlavvay, sub-much of the recent heckling, than!;cd DOBerry and sa!d sometfntcs his )ob was a ~ lonely one. The Prole" lors Thc Cf'.!zeus Ccuncf1 Itas pro. te-.',cd, a.'ong v:fth Cf'.y Conm1!a-s!oner Jack Golden, a char:er nfcntbo.", Comm!ss!On act'.c::;11 accep!!ng thc rccomn~cnda.".cns of Lrnst aud Hrns! to cont:n!'.c mun!c!pal operation of ihe elec. tric ul.'ffty ra"1 r 1!Ean scil f: to a prlva:o comps: y. Commfssloncr !!annah Bonnet has voted w!ih Go!den fn h!s attempt to obstruct contfnucd city operation o', t'h e utility and to obstruct tltc cx!cnsfon ol tlfc clfy s scwc1'rcgfann An ordinance rfesfgncd tn pre-vent future hcckll:13 and disrup-tion of Commission meetings was passed = on a 3.2 vole although tho hfayor and two other Commlss!Oncrs agreed the ordinance wasn't necessary. Tho ordinance was tho result of tho Mayor's rcqurst that a scot!on of tfro city code bo resclndcd.

Z((cr.<t ~l,-,.cJ rd, +~i~~ p/ IQ/A'Ir" +8/ )C1<NA( ,.(Igiy OII t!$ $ g I

                                                           . (Con!inuo<f fro<n Pogo 'Clno).                                                                                 ~  I tors aud engineers geeicIed
        %st!'Gls Gkv                                           electric plants would still that'he contribute about 10% of the cost of operating the Gity. This CQOI!I! II!t              8(It 5                       contribuion wouIQ bq after, debt, sar'vice'on $ $ .8 to 'So.3'nltll!on dollars 'ivorth of bonds'ssued, Uc ilitieS                                       during the period, 196(j-70, to $ 5.5'illion dollars and'2.2
                                                                   ~

CC&a'siHf55foi3 h

                                       $                vi'orth,issuecl 1970-7'5.
      'Io    De      Nf--.oJ                                      v r> ing figures cam
                                                                                    'he about mainly because of uncer-tainty of retaining th Edgmya- I Dy L. E. Smith                           ter 'accounts. Auditor.,XVhi'.e Con'.racts for three die cl                        pointed out that Ci.'of.l'dge-

<units and switcn gear to cost vraer is scheduled to receive a

 $ 550,000 vIcre av:arded to Gen-                       10'eb"tc, or 510,000in thi"!

eral .<lotors Tuesday as thc City fiscal year, as compa!eg 4o ',C o m m i s sion majority trio, t)!e'ix percent return~& ~nd~r fi!~~

 ~scythe        Hester, i<fayor 71. S.                  standard 1'lcr'ida Pov:er 8:

'Hatt!away and -Carlyle Harvey, Light'ranchis

voted to l'eep the City in the Bathcn stated t!rat it. %V. F~clt lpower business. recommends th" installation o".

ht the same session, re-  ! a 6,000 I')V gas tu".,bine.genera-from ."do>>day>>igi:t, tor in ti'c'c{>nd year, of their

'itycesssQ nittor>>ey It. H. Mat!he!vs was i>>structcQ to draw up capital inves'.m nt pie<<ram. Lo-cated na"t to the p."~i"cut stcani necessary papers to allow ap-                       plant, heat f:om ilia g"s t!u"n!,

pointr.".cnt of a utilitics com- woulcl b i.ransf rad to th" i missicn. Mayor Ifathaway sieam pLant'" boiler. An overall said that t!!e utilities eon!- 'saving fuel costi of $ 44,000 is issi'i"!.' h e n ap<<c'h'.ted< estimated for the first year of ~ ~ ouid take over all Qcc>s.'c>>s <combined o~',eratiou,

• increasing done.

regarclin<< the electric system, thereafter. ZQor'.s of Commissioners Iiau-tncluc1hig the clccision to con- A. B. VZ'ight, vice president of nah Bon'!let a!!d va c Golden to tinue n"gotiations with tho 1<lorida F~wbr 8: I ight Co., v:as call an el ction:mm diately for Florid l.'ower E; Light Co. present at:<Ionday!!ight's meet- a'eaholders'. voto on ale 'or for sal or ]cue of the system. ing, and stated that hfs firm had lease of the alecir'e sys'.c-..! vzara Earliest delivery date for the not made a firm ",.roposal o!! "". they !vera rc- 'nsuccessful; diesel uni is, v;ith a total of lease or purchase o" the City peatcclly votec'. dosvn by a 3.2 6,000 !i'apacity would bo electric aysi m, b!!t that sue!i a marg!n. Ou ti!c cucstio!! of tho November, according to a repre- proposal couicl be made within utiliiies coniniissio)i .)1oviovcl'< sentative of General 1! fotors 30 days. Iriayor IIatnaway made t!!c vo'.a was 3-1, vzith LZr". present. The bid for the equip- a formal request that, this b Bonnet abstain n'. mar t v:as sub!nittcd Jan. 7 orig'<n.":fly, with a 30-day time limi:. At, i:Tandy night's mc tin, Car! iVid<c of Erne< <" Ernst and

! itob.rt ."'.        Bat<>>en, czc utive c'incer from it.           V< . Becl's-Isso."ia'.c".:i
      ="'""""- '."".adc c! two-hou! sum-
  !>>a! y of ti!eir fine',ings in the ap-praisal of the Ci'.y operation of the ei,.ciric system as against private operation.

Tenyaar projections, divided i>>to three parts, !vere outlined. IVtthout t h e Ec!gewater ac-counts. or minus Edgawatcr and Samsula territories, the audi-I Soo ClTY on Pogo 3

                                                                                                                                                                      ~ 4 ~

r" r

P

                          ~
)

~ 68li'g8S E)L(48HQ8(ol t 4 Y LV. CI'<hg liukeeII Dy L. H. Smith City Ccn:missione! Jock Gol- ~ dcn an{1 .'Iavor tV. S. IIathaway

  'e?{changed charges of City char-ter and ordi:!ance violations fol-Ioiving the rcport on utilities from Ernst k Ernst at toe spe eia City Con:mission meeting Monday ni "ht.

Xlcfuting cl?argcs by Golden of improper paymcat of City bills, failure to follovv charter

     'rovisions in conduct of mcct-iu s, an<1 failure to file ite-t!1!ze<l czpc?~e a<<counts, '.lath.

av:av quoted from the City cl!artcr and ordinances and fro?n ?>>inu!cs of commission n?eett??t?s to Justify co?Bulls s!on actiors in thcsc areas. Vo!usia County Citizens Coun-cil members packed thc meet-

     !??g room ar{l at ti!ucs {lrovvne{!

cut the iliayc:" efforts to speal. in his defcrse w".tn cries out!", 'Resign!", "Boo!". o.'G.,t C >mn!iss!orer Hanrah D. Bc>>- re' finally picked !<p the I;ave! l a<<{i pou>>G<' it on the table to I rr"',o! c order. A,t thc con{lusion of the cz-cha'?J;e, Slat!?a<va:v s <i {1 l?<< poiiti<<ul!)e<ly, as it claim- to be. an{'o detern?ine th< lc'ul resi d{ncc of Golden. Go!dc>> recent. ly purchased a motel a>>d is op-erat<ng it an{i a real estate busi-rcs< at 12<J!) i?I. Dixie I'reeway, in the Mayor's zone.

DAYTONA BEACH EVENING NEWS June 8, 1965 0>> IJi(IlltIIJ Yrout Our Soutbesst Voluslu BuroNi NEtV SMYRNA BEACH City Commissioners werc to meet iiin an adjourned session at 0 tljis afternoon at City Hali io dis-cuss accounting and englnccr-Ing reports on thc city's elec-tric utility.

        ~".'hc reports werc read at last right's City Commission meet by Ernst and Ernst, Clcve-d accountants,      and t h a t rm's consultants, R. lV.      Bccl'nd Associates, engine rs. Ernst and Ernst tvas retained by the city to do a complete study of the two electric power plants and distribution lines.

Thc reports as prescntcd were a comparative study to dcter-mlnc whether the city should scil or keep and enlarge thc electric utility. They were based on a tentative proposal fr)en the Florida Power and Light t."o. for a 30 year franchise bitched on thc usual six percent fr~tt-chlsc offered ln other cities. Thc recommendation was that thc city should contlnuc to op-erate its own plants. A. B. IVright, FPL representa-tive, said last night his firm never had submitted a "true pre)tosal" but tvould bc In a po!Jtion to submit one within 30 days. 24ayor lV. S. Hathatvay said the city still was -very Inter-ested" In receiving a definite proposal from FEC. Hanging fire for today's meet-

   . ing      arc bids for additional peaking units need.d immcdi-atcly at thc diesel electric plant.

The bids tvcrc opened ln Feb-ruary but werc held open at thc r e ri u c s t of the Commission,

   ~

pending a decision on Ernst and i Ernst's reports. A reprcscnta-tlvc of thc bidding firm tnd!cat-ed last nigh thc bl s wouldn' bc held open a tcr today.

       ~ Jl4 Ar

NOT I CE

               .Should  it become   necessary. for...us to purchase power from F.P.88 in  an emergency,    the following procedure is necessary:

(1) Contact the Steam Plant notify the engineer on duty that you are about I to close in on FP8:L for emergency power. Ask him to open the OCB L disconnect switches on line ¹2 (sub-station feeder line). Be sure you receive verification when this is done and by whom. (2). Open OCB switches (biannually) at Sub Station ¹1 and ¹4. (3). Contact the dispatcher of FPM in Daytona Beach (Tel. No. CL2-1543 or CL5-3717) and inform him that you would like permission to close OH dis-connect switches ¹16101 Located on Hgwy ¹44 at the STEP-UP Station to pick up NSB load of sub-stations ¹1 (Columbia St.) and ¹4 (Hgwy 44). (4). After permission has been granted, close disconnect switches ¹16101 located at curb in front of Step-up station. (5). Close OCB switches at Sub Stations ¹1 and ¹4. Should we need more relief by feeding sub stations ¹2 and ¹3 the following procedure becomes necessary: (1). Contact the. Diesel Plant and notify the engineer on duty that you are about to close in on FPEJ for emergency power to pick up load of sub-sM.

     ¹2 and ¹3. Ask him to open the OCB on line ¹3 and the disconnect switches on line ¹3 (feeding sub-stns. ¹2        @  3). Be sure you receive    verification
                               -"  ~~d by whom.

manually. 1

EXHlBIT H Two 2-page Letters from Alan Wright to Mr. James J. Berry, Vice President, Smith 8: G ille spic r e proposed parallel connection of New Smyrna Beach and FPIkL. One dated November 2, 1970; one dated November ll, 1970.

v i'!

                                                                                                                                      + ~

Or~ L-riorllg;i I c<s'.<k co Leal<1

                                                                                                                     ~ .   ~...
                                                                                                                    <'r'.'~>.'<v Daytona Beach November 11, 1970 Mr James    J B  rry, Vice President Smith and Gillespie Engineers, Inc P  0   Box 10<)9 Jacksonville, Florida 32201

Subject:

New Smyrna Beach/F)orida Power 6 Light Company Your File No. 6913-2

Dear Mr Berry:

In response to your letter of November 6 which raised several quostions relating to our letter of November 2, 1970, we submit the following: 1 Tho annual rental specified is based on 19% of the estimated total cost of the line, changes and additions in our Ec!gewater Substation and the installation of a 10,000 kva, 13.2/23 kv autotransformer. The estimated total cost is $ 112,200. 10/~ of thi" figure would re-suit in the annual rental fic,ure of approximate)y $ 20,000. 2 - There would be no annual rental if a lump sum payment of up and down charges were made. 3 The estimated amount of such up anc) down charges is $ 103,750. This represents the estimatod in"tallation anc removal cost with credit for salvage. It is rea)ized that this ostimato may <ippoar high but in most instances the removal )abor .vr)) arno<<nt to approxi-mately the samo as the insta))ation )arbor..~!scr, since it is propcisi d to construct t!i'ie )ine <isiri;r a)uniriur>> corr;!c c:: rs, th<;ro wo .d )re very ) ittlo 'salvage.

         - If the Utility Commission of tho City of Nc'i            Sin  ~

rn<a Beach!urnis)red the autotransformer to be insta)led a>>ci o!ior<rt<.d!)y our Co..::.any in the Edgewater Substation, -this wou)c! rod;!; o t!ic to!a) ostin:tod cost s!iown in ()) above by $ 21,000, Tl.r t"ta) cc'st wouid accorciing)y become $ 112,200 - $ 21<000 or $ 91,20".'. T!:o;rnnu.r) ronta) wou)c) tlien bocomo 19'.- x $ 91,200 -- $ 16,.116. A)thous)r w< sti)1 do not considc.r it practic;<i) to c;.crore )i.r:)'. sy."-tons r <<ra))o! under ~ existing condition wo rc.>) iso tliat at some: iuturc <i ito c)ranges nay )~o rrrado which

                                                                                ~ ~                  ~          < ~

4 $< Q>> i >>.k>>>>,r) f'0>>' ->>>>>>>> >>>>'>>~ ~

                                              $ Q M~'>>>>(>>
                                                      ~       *
                                                           >> M*+<
                                                                  ~ >>i >>'>>>>," >>, ) ~p ~,,     >>, -,   ... ~,"

r~ g ( gillil/~ ~

                        >>                                                                                                >>~~~0>>~yf
                                                                                                                      ~>> ~
                                                                                                                               \ ~  ma    ~>      //1]i)Q LD
                                                                                                                 )in)):f4'>> f'()'L>i,ll 5 u' ~ ..~  ).4>>gy Mr James         J Berry                                                                                      November 11, ) 970
       .would result in making a synchronized operation feasible.                                               At this time however, it seems best to proceed on the unsynchronized basis.

We will be glad to participate in a discussion with representatives of the Utility Commission at an early date - within the next week or 10 days and will con-firm this with you by telephone. Yours very truly, C~C( g', ...,. 8-) '-c 'i>>>> cr Alan 8 Wright Vice President ABW-fc M:p: I'c.>>. 0

                                                                                           )',!     )

NOV1 o 1970 08//~ITII I>>'8 ";.I: r "p~) ENGINt..t:lt,,

                                                                                                                                                           'Cr>>
                                                                                                                                                            )>>

 '                                                                     Daytona Beach

, 'i'I November 2, 1970 Mr James J BCrry, Vice President Smith and Gillespie Engineers, Inc P 0 Box 1048 Jacksonville, Florida 32201

Subject:

New Smyrna Beach/Florida Power & Light Company Your File No. 6913-2

Dear Mr Berry:

This will acknowledge your letter of October 23, 1970, and our several discussions in regard to the proposed interconnection between the electric

        'ystem of the City of New Smyrna Beach and that of the Florida Poiver &

Light Company. In this regard and as an expression of our understanding of these discussions, we submit the fol1owing: We are agreeable to continue to sell power to the City to the extent of the capability which presently exists in the Edgewater Substation, which power will he made available to the maximum extent consistent with the satisfactory operation of our Company's systenr. This should not be interpreted in any manner as firm power but rather, as stated, on the basis of availability. At the present time, in accordance with the capability of the Edgewater Substation, we could furnish approximately 10,000 kva over a tie line proposed for construction between our Edge-water Substation and the Smith Street Power Plant of the City o( New Smyrna Beach. This would recuire a new feeclc r position and other additions in our Edgewater Substation and also the installation of a 10,000 kva, 13.2/23 kv autotransformer. Our Company would be agreeable to construct that portion of the 23 kv tie line from th Edgewater Substation to the north city limits of Edgewater, furnish the necessary terminal facili-ties and additions in the Edgewater Substation and provide and install the 10,000 kva autotransforrner - all or> an annual rental basis which rent could be paid monthly. It is estimated that the annual rent would amount to approximately $ 20,000; however, this would be determined by the actual cost of the installat.'on. Tire proposed route of the tie linc which you inclicated certainly seems a logical one ancl we concur ttrat the connection should

f : ~~'M.' Mr James J Berry November 2, 1970 be made at the city limits of the City of New Smyrna Beach and City of Edgewater. We are still 'of the o inion that it would not be practical to oporate both systems in parallel. In regard to setting up a target date for completing and placing in service this tie line, it appears that delivery of the auto-transformer would determine the "in service" date. Recent quotations have indicated delivery of this type of transformer in approximately 30/35 weeks. We would certainly endeavor to improve this. Yours very truly,

                                            !i(' .
                                                               /

Alan B Wright Vice President ABW-fc i.-(~G),~t r:lq..-, INC.

                                                           ~ ~                            ~~

EXHIBIT I. Correspondence between FPhL and New Smyrna Beach re lease or purchase of New Smyrna Beach electric system by Company (5 Pages) From Mar shall McDonald, Pre sident, FP8;L, to Mr. S. Victor McDonald, City Commissioner New Smyrna Beach - October 8, 1973. From R. W. Buck, City Manager New Smyrna Beach, to Mr. Robert L. Pringle, Jr., FP4L 5/31/73 From R. W. Buck, Memo to Utilities Director June 19, 1973 From R. G. Mu)holland, FP8zL, to R. W. Buck June 15, 1973

I (I 8+z I October S, 1973,.-',", . Mr. S. Victor McDonal'd

          .;.:~!.'.-5'"- -         Citv Commissioner t 'I     ~                          ~
 -<<i~'.,~>>~-~'>>':-'-2

(,""~~,4." ""(~~'-'".'s

,

City of 'New Post Office Smyrna Box 490; Beach; I

                                                                                                                              *4
-q~'~p"..-;~>F<~           -,     New'. Smyrna
                                                    ~
                                                           .'Beach,'Flori~~69     J    l     ~
                                                                                               ~
  -q".-,,>;".'2'~    .~'."2:.-"':

Dear,

, Mr.,NcDonald: '<,",,-,. - t

                                                                                                                                                                  - ~

Thank. you',for your', informative letter. of October 2, in".,'which,you'z',.~".>>,= 4'.q;4+hqy~'j.".;".

    ,<'j"- .~';:"."~.state'hat the views... expressed by you are the of ficial,and unani-","";.-"'>;.

-~~2i%""'-'4'i"-"-';;-."mous-,view>>s "of the Ci'ty.Commission with reference to'pursuing the; lease or. purchase of the New Smyrna-Beach ElectricaL -'p(- '"'~~ '->","",~'p..~.",~".'.>,'i::,;.~'matter.".of-'-a'-2 System=';by,.;Florida Power a "Light Company.

                                                                                                                                                              ~
                                                                                                                                                                                                    '                                                                                                     C <tt.
                                                           'that
                                                                                                                                                                                                  ~
 -4'*"'~j~I',~','-'. 4-",It-'apsp(eatrs                                we,',have reached                                the stage where neg'otiations 'ho'uld'i~'-':-t,
   ':g'>>'-~..:-,'.,~'.~.-~,be:startte>>d',. 'and I h'avle.',directed and authorized Mr. Robert L. Prxngle;::          I 4't" i6,;.'~~-!'r:..";~~ltO.'"rephesen't Florida Power '6 Light Company in such discussions,';'.;
--.'Bp          ';;i"~.-'-'<-; .Xt..will!be:"he'lpful;;however,: iK We could have a copy of,"-th'e re'solu'"-j'<.<j or,-other expressi.on, of authorization by 4

I the City.'Commission,;;-;,,"~'~'. 2 ~

 '.~'"",+'~P~+jg.",-;;,"'t'i.ton,
                                !so-. that'. the...meeti'ng will.be between parties,who have the,';power I                                       ~ '

t (I

      ~l~~~>,$ :j-"
                                .authorxty'-,,to .speak for,-",the entity represented.                                                                                                                          'and-~j.:.'.P~";g~g~,",-;>
   "~<~~;~<~=-.-. Since we ao..not =wish':4o- delay,                                                             Mr. 'Pringle                           -will be talking with'.yo
~~gtl~A'<'F.'."'-"'~by"te<lephone to.=-try 'to..'arrange                                                         a           convenient time and pl'ace for.:the".,j',~>'-%j~

=~)A'-'-:"~<'~~;.".'-'first,meeting. "We 'would. appreciate your'ending us a copy of whatjc>>..",

,-~~; <+~',,"'&>>,.;"evei

. document repre'sents the official action by the C'sty'Commissiqn.,'~~.

~y.->~~<>*~;;"""',>> authorizing the exploratory negotiations. - -p~~Vp'."~,.".-.I"'assume, you are awa'res. t3>at the" 'law firm of Spiegel 6 NcDairmid haj".~'- ..

                  ';.""., been."corresponding.wi.th the Company                                                                   concerning an interconnection"'.",!~j,.

but.we,are assuming that tj>e official attitude of the C.i's o

                              +'expltore .the- sale.. or" "1'ease approach.                                                             I f I do not correctly: under-.'. 2-,'"~g.~                                                           ..",';",,',",'",<<'i'<+~is<"'~,'.'t'.

~~i~~)4".,",'";;'tand

        <AP./ >> (,(I.         ~ >1 the.,situation,-."please                                let        me            know.
                                                                                                          ~

4

                                                                                                               ". i       .'=.

Sincerely yours,

                                                                                                                                                            ~

I ~

                      ~
                                      ~

Marshall McDonald .~'."": i 4 1 ~ ~ <(

                                             ~

If+2 4W

                                                                ~

3 ((It(tI2(

                                                                           ~
                                                                                ~

h4 A<<<~~!>> 4 ( 1,

                                                                                         ~z, 'I .,
                                                                                                 !Q f I (2'<4
                                                                                                                            ~

( (<4 II<( t I(

                                                                                                                                                ) 24,'J< '
                                                                                                                                                ~

(

                                                                                                                                                                                ~

2Sl (I

                                                                                                                                                                                             ',Yxt t> "~ g
                                                                                                                                                                                                      /PE~

S>> 4 ~ ~P

                                                                                                                                                                                                                                                                                       ~      A m!'

 ~
     'ity            I I
                        .I LOWELL A. HANKS, MAYoR coMMISsloNCR HENRY C. SWOOP E, VICE MAYOR ~ COMMISSIONER FREDERICK DOSTER, COMMISSIONCR V

of 'Sew Smyrna Seaoh POST OFFICE, BOX 490 NEW SMYRNA BEACH, FLORIDA 32069 R. W. BUCK, clTY MANAGER E. IRENE BECKHAM, CI YY CI CRII CHARLES A; HALL, CITY AYYoRNCY S. VICTOR MCDONALD> COMMI$5loNFR HENRY A. RHODES, coMMISSIoNCR May 31, 1973 Mr. Robert L. Pringle, Jr. Division General Manager Florida Power and Light Company Post Office Box 151 Daytona Beach, Florida

Dear Mr. Pringle:

At a joint meeting of the City Commission and Utilities

               .Commission on May 30, 1973, the matter of requesting a pro-posal from Florida Power and Light Company for the sale or lease of the City electrical generation and distribution system was discussed.

The City Commission has expressed a desire that your company submit such a proposal. The Utilities Commission concurred with the .City Commission's right to request this proposal and interposed no objection thereto. I would appreciate information as to when such a proposal might be made. The Utilities Commission, at this time, is proceeding with plans for a major bond issue, a portion of which will be allocated for electrical system improvements. Time is therefore of the essence and your proposal is requested at the earliest possible date. Members of the Utilities Com-mission have indicated that they will assist you by making available whatever information you desire for this purpose. Sincerely yours, R. W. Buck City Manager RWB:pae . ~

                                 "World's Sri/est Zathisur 8urclr"

City of 'Sew Smyrna Seaeh POST OFFICE 8OX 490 NEw SMYRNA 8FACH, FLORIOA 32069 L LL A, HANKS, MkvoR coMMlssaoMCR

                       ~                 ~                                          R, W. 8UCK city MAH*ccR
                                                                                              ~

HENRY C. SwOOP E, vicE Mk voR coMMlsslotvcR

                            ~                                                       E.IRENE 8ECKHAM, City Ci.'CRii FREDERICK OOSTER, COMMi55iOivt.R                                                     CHARLES A. HALL, city A r toRivcv S. VICTOR McOONALO, CcMMissioorri HENRY A. RHOOES, coMMiSsiOiit R June 19, 1973 MEMORANDUM      TO:      Utilities Director

SUBJECT:

Request for information by FP&L.

l. I would appreciate your assistance in prepar-ing the information requested by FP&L as per their letter to me of June 15, 1973.(Copy attached). 1f any of the in-formation is not readily available, or more than two weeks to prepare, please let me know and I if it will require will inform FP&L accordingly.

Thanks very much.

                                                               'c'.

N. Buck City Manager RNB: pae Enclosure lParlcf's 5'rrjest 8atkiug h'i7I ch

8 0 I

                                                              . P,O. B'Dx 'i!GO NIAh'I, I'LG'IIIOA 33IOI r-.~~r-wha s A
                                                                                 ~

As+ILJ 4Illgy

                                                                                                           ///II)Ig a:J II.OIIlDA P<!'6  E Ih uGII'!

COI.I?AIIi'une 15, 1973 Hr. R. W. Buck, Ci ty ~lanaier City of New Smyrna De'lch O. Box 490 New Smyrna Beach, Florida 32069 De<ir Hr. Buck: H Our l~ort.hem Division Ma>><iver, Hr. B. ).. I'rinqle, Jr., his for-warded your let ter dated Na}'1, 1973, it> which the C i t}'ommis-sion has expressed a desire that wn submit t a propos<il for either the purchase or lease of the City of Ht w Smyrna )leach's electrical c;ener<<tion and distribution system. Ve wou3d bc rec iptivc to discuss either of the two proposal .. ))owev~ r, bl fore we would b in position to intellicently prepire a <i ~-(')posa.) nf this natura it would be necessary for your Utiliti<. s information. Commi s. iIpn to submit the following

l. An up-to-date inventory o. yollr electric<<l dist.ribution system, as well as the reneratio>>. Xt would be most helpful if you could indicate the a)>proximate year of installation and/or the depreciation value.

2. Gross revenues by class of'ustomer for the years 1970-71-72.

3. The number of electric meters by class of ,ervice for the same three years.

The above will enable us to thoroughly tudy and be in a position to prepare a proposal for, your consideration. I am sure that you and the City Co..lrlissionc rs <ire aw<<re that responding to a request of this n<<ture is << time co::...u:::i::.; Ind a costly endeavor for all involved, ;Ind it . ou)d be most I?esirable to have a un<inimous approval of youl.- Co"..:-.! .:!rene! <<s we1) as desire by the Utilities Comlnission that. w< .':. tiki:...: t-hc ..~roper course of action. Ne aci >in express our wil lin(>ness 'o necks>t i.>>' for ci t)il ! a lens< or a sale proposal of you.. elec'..ricnl c;.nI:.I'.io!i <in<! I?:..I:)but.'on system.

11r. R. W. Buck Page Two Juno 15, 1973 In the interest of time, you may desire to submit tne necessary information to our Yir. R. L. Pringle, Jr., in Daytona Beach. We are looking forward in tho very near u:.ure to dis cussing this subject in .more depth so that wo can ,ii rive <<t a decision that will be beneficial to both parties. Sincerely, /'j//g' y~l~~lz . cP R. G 1u 1 holi <<nd Group Vice Pro ident RGt 1/dw cc: l1r. R. L. Pringle, Jr.

EXHIBIT S Documents Relating to Fully Integrated Florida Electric Power Pool.

FLORIDA OPERATING COMMITTEE WORKING GROUP February 27, 1974 TO; R e p r e s e n ta ti v e s - Florida Operating Committee, Working Group At our February 14, 1974 meeting in Jacksonville it was agreed that I would appoint two committees. The purpose of this letter is to announce those appointments. The Dispatcher Training Seminar Ad Hoc Committee is to prepare a one day training session for the Dispatchers on the practices covered by the Operating Handbook with particular emphasis on coordination of actions in ,, restoration procedures following sub-normal system frequency. An outline of the program should be presented, to the Working Group for its review. The members of this committee are: C. H. Bennett, Tampa Electric Company - Chairman R. F. Burkard, Florida Power 4 Light Company Dennis Cheves, City of Gainesville J. L. Scheidt, Florida Power Corporation I. Reedy, Orlando Utilities Commission The Review of Pooling Agreements Ad Hoc Committee is to review existing pooling agreements and prepare an informational type report that covers in general the advantages and disadvantages to participating systems in pooling agreements. The report should also note any unusual advantages or disadvantages that might be foreseen for the Florida Systems. The members of this committee are: I. Reedy, Orlando Utilities Commission - Chairman K. S. Buchanan, Florida Power h Light Company T. H. Farrow, Tampa Electric Company D. L; Hornak, Florida Power Corporation J. C. L'Engle, Lake Worth Utilities Authority J. K. Wiley, Jacksonville Electric Authority

                                                       . E. Burris, Chairman cc: Members, Florida Operating Committee, "Steering Committee Members, Ad Hoc Committees

I ~ ~ I ~ ~ ~

                  ~  ~ ~  I                                      ~   ~             ~ I
                                     ~      ~
           ~ ~
                            ~ ~
                                                                         ~ ~
                                                         ~ ~   ~   ~       ~ ~ ~       ~
   ~   ~
                                                 ~   ~
                 ~       ~
                                                   ~ ~
             ~      ~
     ~   ~
                                                                                          ~ ~

~ ~

                                                                       ~  ~
               ~       ~
                                           ~  ~
                                                                                 ~   ~
                                    ~  ~ ~

0-1!.=!ts. os su:h ccrc:rate ll."i s exist on the affective date of shall not suocrscda or control an orovfsfon of the electric this sct, -.roy!dade::.::ever. cx!stinc territorial goree .ants shall ov r plant sitln act, ractfons 403.501 thru 403.516, Florida ed 0 1b r cc ls a v Statutes, 1973. (3) 7he cc.-n!!ssfon .': 1'urtner have urfsdfction over Section 3. ScctLon 366.055, F.S.> Ls created to reads ~ the alarm!ace develo"..=en and maintenance of a coordinated 5 366.055 AvaLlabilLty of and payment for energy reserves. ~ electric o~:er czid hro chc't Florida. to assure an adccuato (1) rEnargy reserves of all utilities Ln tho Flarida energy grfd 1 a.-.- r Sds-Sa sca:ce o. e.".a.= .'o.- aa rc".io.".sl sad ca~eracac shall be available't all tines to insure that grid roliabLlfty

      .r=oses ln Flcrf a an                      hc av fdsnce of further uneconomic                                         and   integrity are maintained. Tha connfssfon Ls hereby author 9  d of!ca lon of oeneza ion. transnission, and distribution                                                               ized to take such action as necessary to assure compliancas 10   facilities.                                                                                                   ~

10 provided, however, prLor correnftmentc as to energy use Ln Section 2. Section 366.05, Florida Statutes, Le amen&a& intezstata coo~area as approved by tha Federal Power ConmfssfonS by adding nesv subsections (7) and (8) to reads cor:.~ftments batveen ona electric utility and another vnlch have. 13 366.05 Po"ers." 13 been appzoved by thc Federal Paver Cowifcsfonf or coasnltnonts

7) <<he co<<rrfssfnn sh"'1.a the oo: ar to rc ulze 14 between an electzic utility vhich Ls' part of tha enezgy grid

)S rene..s !:c". a) 1 clcctrfc util! las to assu<<e the davalon.".ant 15 created herein and another energy grfd shall not ba abridged of. a ec "=a and zel!anbla enazcv czl"s.. oz altered*except during an energy emergency as declared by the 17 (9) If the co<<mission detern!nes that there fs robabla 17 ~ governor and cabinet. causa to be 1 fere th = lradecuac s exist <<l th zesnect to t'h e 18 (2) Mhan the energy produced by one elactrLc utllLty. era.-v c "s d:clare& bv tne electr!c utility industry, it shall Le transferred to another ou others through the energy grid I

             ~ Le     <<Ce         a/oae      Lal>a           desa   ~    S   aS o<<ae I Joel  bv )ye     a<<d           20   and under     the powers granted by thfs section, the co."~fssion              I
                                                                                                                                                                                                           ~ ~

I d 21 a!ter a !indian ch t "..ut al " ne!its vill accrue to t'e public shall direct the appzoprlata.recipient, utility ar utilities utf1!ties involve&a to =e."ulze installation or repair of n cas- to zeinburse tha producing utLlity Ln accordance vlth the ~ ~ 23 sa. i.!acf lit!os fncluddn oeneratinc plants and tra<<s..l"sion

                                ~                                                                                     23   la ast uholesala electric rates approved for the producfng
     ~aa!Lio!CS V't'h the C StS ta Ld dist !bated in Zraaprtfan ta the                                                     utility by      tha Federal Povor Commission        for such puzposas.

2S banc!'-s !scaly snd t<< tata a) 1 nrcassarv stops to insure Any utility vhlch provides a portion of those trans co-.ol! ~ -..=a. hra e!cc= !c u=ilitles involved !n any act!en taken 26 mfssLon facilities Lnvolved ln the .transfer of energy from 2~ or .rdezs 'ss o" -. zsusnt to r.'.-fs subsection shall have 'ulf 27 a producing utL1Lty to a recipient utility or utilltLes shall er and a o~czitv nc=. '-"st.-"!no anv cenaral or sceclal lave '28 bo entitled to recolva an approprLata reimbursement comonsurata

                                                                                                          'r 26                                                                                                            . ',

29 vfth tha transnfssfon facilltlas and services provided, Pro ~ d9 ol ~ CQ <<e ~~ e' d<<de tau Sr Cd <<1 Ca rbe ~ riel C<<a a a Oz 30I i+aS<< <<s<<<<<<sad<< <<A pro ogdSS!an f)C litieS and Shel ba 30 vide& further, no utility shall be ragufred to sell purchased f"Z-~~<<1"omar'or~ <<~ cia-"fSO -"a "O"C-S --o"'C" op C"-"a~at~a-S 31 paver to a recipient utility or utilities at a rata lower fn chabtar 361 Flo.!&s &tata os. Provided that this subsection a ~ 'O a

~ ~ ~ ~

~
         ~

thaw tha rate at which tho power Ls purchased from a pzoducfng ~  ! ricfr. and the ma nitude ard details of the economic relation>> util! y, 2 shies fn Fior!da between tha d ..and tor electric! v lInd fts rrfce (3) To assure cff Lcfent and ralfable operation of a as wall as other factors Irhfch mnv affect decisions on alternative state energy grLd, the commfss'Lon shall have the power to regufra rate structures. any electric utilfty to transaf t clectrLc energy over fts trans (3) There shall ba annroorfated from the cneral revenue rlfssfon lines from one utilLty to another or as a part of tha fund tha sum of fift thousand dollars ($ 50.000) with wIIfch to total energy s 'pply of tha entire grid, sub)ect to the provisions conduct this study dlurfnC the f!seal car 1974-75; hereots Section 5. Section 366.11, Florida Statutes, Ls aIIIendcd Sectfcn 4. Section 366.061, Florida Statutes is

                                                                                                             ~

tO read aS fallawSI created o "cadi 10 366 ~ (61 lc ~ ') s>>sta I ss yu s<< 10 366.11 Certain exemptions.-"):o provfsLon ot thLs chapter shall apply in any manner o hcr than as "<<citied ln section 12 ~ ~ a ca{ sla " c <<,5 tl<<5<<ovc>> 12 366.0'{2) ard (3) . Cctfoi 366.05{7) ard (8), scctfor. 366.055. and cr "i " r" an qn ua'I sect'on 366.061. Florfd Ststu cs. to utilities caned and operated 1 r a c '<<.'I (1 ) <<crccnt and t.. t tha lr >ct of IS by municipalities whether wit'hfn or without any municipality, or by cal a c rc ds ader fata I IGI fcn. 15 cooperatives organfsed and existing under the rural elcctification 17 2) {a) Th>>r fs cr atcd a 4ofnt select ccrafttca of 16 cooperative law ot the state, nor to the sale of electricity; 17 18 s c Ia a and hou c of rc"..rcscn nt!vcs co'!po cd o Lvc (5) manufactured gas or natural gas at wholesale by any public utility 18 s<<'>> CC 5 C "h I I C LV tl <<O to, and the purchase by, any municipality or cooperative under and Csfders. Of s)<<a Sansta I "s {C) C 5 O hC ~ usa Of CO>>5 ta LVC5 ao Ofntcd pursuant to any contracts now Ln cf act or which ray bc entered 20 21 bv the scca:cr ~ <<~ ot the ."." Ca of represent.. Lvas. Tha co"=Lttca into Ln the future, where such rlunfcfpalfty or cooperative Ls angelic 21 22 sh )1 co. Oct or contr " '-'.h consult rts of natfonal Ln tha rale and dLstributfon of electricity, manufactured or natural 22 rC-.u!a! Cn tn C"n""C= 's 5 "". O rate 5'uct gas, nor gas no to the rates provided or Ln such contracts. Fu her tha ra Of all elCCtrfC 24 ~~ ~ ill ~ iar I I<<l<<>>l ' ~ <<<<<<<<<<ll<<<<us I \<<\>> <<I~

                                                                                                        <<<<<<<<sl iQ dI~~
                                                                                                                     ~

23 ov! sl c<<5 of s>><<<<<<or 3 0 75 Flo>>f da Sts>><<g!cs ahs'I l n<<s aco}I<<s o

                                                                                                                                                                         ~                    ~
          ~    I    l<<<<1 c ~ c <<s          l<<  ~  ~  IIlslc5,         g   f fl al r>>        I<>A    . munfcf"ally c::<<ad an" oc<<"atcd>>lec rfc us!1! fcs and rural elec rfc 25

>>\' e 1>>l 5)asura b<< ~ cooocra ives.,<<{othfng hcrcLn shall rcstrfct t'hc police power o 26 2~ ~ s ~ nunfcfpalf tfas over their streets, highways and public places or 27 >>1 'I t e IC l>>1<><<s<<. ~ <<.I 1. <<I tha po;ar to rafntain o" recufre the -ain<<tenarce thereof, ror the 28 cc....f!!ce sha11 t s>>hl - ~ sc rfght of a municipality to levy taxes on publfc sarvLces urdar 30 <<<<<< I (b) ~

                                                        -'-=- rs        O     a CXa.        si iV tI,C                           30 5167.431r Florida Statutes, nor atfec"- the rLght of any runfcfPalfty Il sl>> rs>><<Cr

~I I )

                                             <<~                                                                                         to contirua to receive revenue frca any public utLlity as Ls ncw
    ~

I

           ~                           I     ~ s    CCC    5  Of '<<'C>><< lee
                                                                          ~
                                                                                   <<O                                  ~ I>>
                                       '     V   tn-     CC   .... Ca      V     sa>>n<<     5        l                          32     provided or as ray ba )Iercattcr provided Ln ary franchLsa, nor

)t yl
%  ~

t ropical $ 167.22, Florida Statutes. SectLon 6 ~ Section.366 ~ 015, FlorMa Stacutdsp is created to rea c 366.015 Interagency liaison.--The FlorMa public servLce commission Ls directed to provL e for and assu.-..e primary responsibility for csta31is'hing and maintaining con liaison vith all other appropr'ate state and federal I'G tLnuous agencies Mhose policy decLsLons and rule-making authority affect those ut" ities vhich the co."..emission has primary ,

                                                                               * ~ ~
                                                                                          ~  ~

t regulatory <uriidicticn. This liaison shall ho conducted at the policy-."a'RLng levels as sell as departnent, division or bureau levels. Active part'cipation in other "agency F blic hearings is encouraged to transmit the co~ission's poli y positions and Lnioraation re-uirenents in order to provide for ."ore efficieht regulation. Section 7. This act shall tace effect July li 1974 ' )8 15 22 +6 27 26 35, I 3 'I

  ~ ~

I 32 [

                                                                                     , ~ ~

X AH;H Vu'OHTH: UTXLITIHB AUTH:OH,ITY'ITY OF LAKE WORTH WU 114 COLLEGE STREET LAKE WORTH. FLORIDA 33460 TELEPHONE 305.585 257I KXT. 55 CLIFFORD C. BLAISOELL. JR. BYILITISS OIRSCTOR DUANK M. LEDBETTER. cNiISNAN ROBKRT H. HOWELL. YIcs.cNaIPN*N ROBERT G. SMALL. sccREYARY January 10, 1975 WILLIAM V. BLUMKR. ASSISTANT SSCRSTAAY ROBERT W. Wll MOTH h E fORANDUH To irving Reedy, Orlando Utilit,ies Commission Tom Farrow, Tampa ELectric Company Arnold Harrington, Jacksonville K.ectric .authority Don Hornak, Florida Power Corporation Ken Buchanan, F3orida Power and Light Company From: Claude L'Engle, Lake tlorth Utilities Authority T. recently re-read &C inter-staff memos dated July 31, 197lI. and September 5, 197lI, which, 1 feel, contain comments that are very significant in light, of our recent investigation and re-port, concerning a Florida Electric Power Pool. On the chance that, you either don't have these memos or have not read them late, 1 am taking the liberty of sending them to you for your information. 7 gZ. (~i Enclosures cc: C. N. 7lhitmire, Chairman, FOC RRRL hiike Gent, General hlanager, FCG JCL IE/pr JAMES W. VANCE J. C. L'ENGLK~ PeK. G. R. KEIHER S. R. CAMPBELL HENRY H. G. ROSE ATTORNEY CHIEF ENGINEER SUP'T. LINE DEPT. SUP'T. POWER PLANT MGR. COMMERCIAL DEPT.

HEh)0 RAN DUN September 5, 1974 TO: .MILLIAML. LlEEKS GENERAL COUNSEL FROM: JOSEPH D. JENKINS ELECTRICAL ENGINEERING SUPERVISOR ENGINEERING DEPARTMENT RE: UNECONOMIC DUPLICATION QF GENERATING FACILITIES. This fs the Engineering Department's fnterpretatfon of the phrase "uneconomic duplication of generating facilities" which appears in H.B. 1543 better known as the "Grid Bill". Me wish to emphasize that fn our memorandum of July 31 we did not suggest. that the overall Florida electrical configuration dfd or did not evolve into the lowest cost system but only that studies should be performed to insure the future evolution of the most economical electrical system without regard to individual company terrftorfal boundary and/or plant ownership. Consider for example the attached graph which shows the required generating unit reserve margin for a 4000 and a 6000 megawatt peak load system whose generating capability is wholly

flEi~lQ - tlR. MEEKS September 5, 1374 Page 2 comprised of 440 megawatt generating units and the resulting reserve margin when these two systems are combined Into a ~full integrated 10,000 megawatt system. The required generating reserve margin for th above hypothetical systems are tabulated below: Combined 4,000 Nf 6,000 Ã4 10,'300 %

                       ~Ss tern           ~Ss  tern                      ~S'tem

~ Reserve 2Q 21 tlat Reserve 1430 16o0 21G3 Thus if the two smaller systems were combined into a 10,000 megawatt system fully integrated, with all other things being equal, 1060 megawatts less generating capacity would be required. (i.e., 2100-(1480 + 1600) ~ 1060). Assuming an annual fixed cost, i.e.. interest on money, depreciation, taxes, fixed maintenance etc., of S25,900 per mega-watt per year, an annual savi>>g of $ 26,500,000 results if a fomral fully integrated power pool is formed from the two systems. In actual practice, an economic analysis would probably show that SQO megawatt units should be installed on the combined system

HEHO - MR. HEEKS September 5, 1974 Page 3 to take advantage of the attendant economies of scale. As indicated on the graph, larger units require larger reserve margins and an economic trade-off between unit sizes and reserve margins would have to be made. JM/cd CC: Chairman Bevis Commissioner Mayo Commissioner Hawkins Mr. Ervin Hr. Pruitt Or. Kennedy

MEMORANDUM July 31, 1974

  '10: M~4 L.          WEEKS GM2%L    COUNSEL FKN: JOSIPll D.,7f;":i'.TYS EIZC1RICAL ENGINEZIQy l       < '>'t:.i'll t & >l.

ENGINEERING DEPART ERG'E IMPUKEÃIATIONOF H B 1543 WITlI lu'L siilCJ lQ 'GMD ASPECTS Attached is an engineering interpretation of subject bill with regard

 'transmission  facilities. Rate schedules,                classification of accounts   and territorial boundaries are specifically omitted in this mennrandum as these

~ areas will, in all likelgmod, require Ccmnission investigation and deli-i beration, necessitating the involvement of all departnents. The Engineering Departzmnt suggests that Cmmission responsibility can best be implemented thxough the Florida Electric Power Coordinating Group (FCG), a voluntary organization ccmprised of virtually all Florida electric utilities. It is suggested that any electric utilities not a rober of this organization should be encouraged to so join. In sunam~, implementation of H.B. 1543 with reqard to long range electric power needs will require the Ccmni,ssinn tn in.i tiate ecmnanic

MEC) - MR. NEEZS July 31, l974 Page 2 feasibility studies as to the following items elaborated on in'he attach-ment: (1) A joint electrical'generating unit addition expansion plan for Peninsula Florida as a whole without regard to individual service areas. (2) Stronger transmission line interconnections both intra-state and interstate. (3) A central computer dispatch (maximal dispatch) which automatically selects the most efficient generating pattern without regard to service area. jects, newly created F.S. 366.05(8) directs the CamLssion "to require installation of facilities if, after holding hearings, it is determine that inadequacies exist and to distribute costs in proportion to benefits received o In addition, F.S. 366.05(7) gives the Ccxmu.ssion power to require re-ports from "all electric utilities to assure developrent of adequate and reliable energy grids." This requirerrent can be rmre than satisfied by the reports now required by the Federal Power Canaussion shown in Attachrent IV. This Caanission is already in receipt of many of these reports fran est utilities and much of the data reported is duplicated in other forms required by the Power Plant Site Act. It; is suggested that in order to insure

NEN3 - MR. MM(S July 31, 1974 Page 3 receipt of all reports fxun all utilities, the Cawu.ssion issue m order to all electric utilities requiring suhnittal of the forms shown in Attachment ZV. As any generating expansion plan chosen for econcxnic considerations necessitates the timely installtion of generating units and transmission lines to achieve attendant minimal costs, the Commission will have to continually involve itself in the affairs of all State and Federal agencies whose powers may affect said mcpansion plan. This will require attendance at nunerous hearings held by these agencies to state Gcxanission position as to proposed- rules and recpQations which could be detrinental to the it at the lowest possible t ability to supply electric pamr and supply consistent with adequate environmental protection. F.S. 366.015, 'the Comnission is directed to assume In newly created primary responsibility cost for establishing and maintaining continuous liaison with other agencies whose rule making authority could effect electric power supply reliability cUld econcmyo JDJ/cd Attachment CC: Chairman Bevis Ccmnissioner Mayo Ccmnissioner Hawkins Mr. Ervin Mr. Pruitt

I C Attadment I ~

                                                                            't ZPZERPREI'FTHM OF THE "GRID" ASPECIS QF H.B'. 1543-.',

ITEN 1 - Joint Electrical Generatin Unit Addition ion As the FCG currently supplies a ten year comprehensive site plan compiled from the individual suhnittals of all electric utilities as rel.'ydxed by the Power Plant Site Act, F.S. 403, it is suggested that in order to reason-ably assure avoidance of uneconomic duplication of generating facilities, the FOG should be directed to prepare an econanic <~mlysis canparing their chosen comprehensive plan to at least one and preferably ~>t hi r alternative generating unit expansion plans. These alternative plans are to be chosen so as to collectively satisfy the projected demands of Peninsula Florida as a Qmle without regard to territorial boundaries or'lant ownership. Xn search of the anst econanical peninsula wide generating unit addition plan, particular consideration should be given to installation of as la~e a unit as possible at the fewest number of plant sites. This con-cept is similar to Florida Power and Light Company's 4000 megawatt Plant Semble near Lake Okeeclnbee currently planned to comprise of 800 megawatt units or larger. It should be noted that du to the long lead tim recpured to install a generating unit, any expansion plan selected as a result of alternative studies to be requested from the FCG could not be implemented until the 1980-1982 tine frame. Furthernare, whatever generating unit addition plan 's selected as a result of econcmic studies performed by the HV., there rmains

Attachment I Page 2 of 2 ~ the problem of cm~fication of the plant sites by the Department of Pollution Contxol.

Attachment II ITEM 2 - Transmission Lines The Florida Electric Power Coordinating Group (FCG) is about to sign an agawment of intent for the joint construction and cost sharing of two 230 kilovolt lines one between Florida Power and Gulf Pcs scheduled to be in service in 1976 and one between Jacksonville and Folkston, Georgia scheduled for operation in 1978 and one 500 kilovolt transitu.ssion line fran central Florida to Georgia Power Qxapany's nuclear Plant Hatch. Georgia Power Canpany has indicated they will pay for their section of the 230 KV line to the state line and will do sane for the 500 KV line if it. is opera-tional no sooner than 1985. On this same subject, a joint FCG - FPC - PSC econcmic study has been initiated to deteanine if it is worthwhile for Florida to pay for that segnent of the line in Georgia if it becane 'opera-tional in 1982, the earliest possible in-service date, and also the possi-bility of a second 500 kilovolt line fran Crystal River to Tifton, Georgia. In view of the above it appears that implementation of a more reliable energy grid is well under way. Further exanunation will be required as to the degree of inter connection to the Florida grid for several small municipally operated electric systems. This is particularly critical as many of the small muni-cipally operated generating units can only burn natural gas or middle distillates, both of which are in critically short supply. It should be emp1msized that any plan cavprised almost wholly of large generating units to achieve eoccxmies of scale must be augmented by

Attachment II Page 2 of 2 a strong transmission line grid network, the approval of which is cbtained after review of a Developnent of Regional Impact (DRI) by the Division of State Planning.

Attachment III ITEM 3 Centralized ter Dis tch (Maximal Dis tch) Computerized energy dispatches are now employed by most electrical systems in Florida which autcmatically control the throttle on each electri-cal generating unit operating in a caqmny's system so as to select the most efficient generation pattern. This departnent's interpretation of F.S. 366.04(2) (c), "to require electric power conservation and reliability within a coordinated grid for operational as well as errergency purposes," extends the computerized dispatch concept to one en~ssing all of peninsd.a Florida irrespective of territorial boundaries and generating plant ownership. Many power pools such ns the Southern Cmpany and the t Pennsylvannia Jersey Maryland central dispatch for all m mber (P JM) ca@zanies. systems currently employ one requires clarification before studies on this However, F.S. 366.055 item are even initiated. Aside from whatever interpretation is given to F. S. 366.055, the problem of energy billings is difficult in a maximal ocxnputer dispatch because of the variation of fossil fuel costs anang utilities as well as pricing of energy derived from lcw cost nuclear fuels. Other mme of energy availability to the grid are similarly impacted on by various interpretations of F.S. 366.055. It is suggested that the first step in clarifying F.S. 366.055 is for this Ccnmission to direct all utilities to file approved interchange agrearents as well as those suhnitted for approval to the FPC.

     ~
   ~

~ ~ g4 4~I 1 FEDERAL POKER CG%KSSXON FORMS FPC FORM lg 24 Annual Report-OR BEE ANNUAL REPORT FPC FROM 4 Monthly Pawer Plan Report FPC FORM 5 >'UnlJ>l.y Sl;il w~'.nt

                                                                 'l l >i.~  J I x&JtAp Operating'?r'vr'nui>

FPCARM 12 ~ Vi w"i i'.: .".I.em Statement Year I'.I ll I I ll' P~r Sybil ) ' rent:r?Alpnt re n&ly FPC FORM 12E ~nUIly Power St nl.u>x.>>I.: FPC FORM 12F Pmer. Line anil <enerating Q3nsI;AK'I: I.All I <1 I:a FPC FORM 23 Electric ULility Fuel Planning Report - monthly Quarterly Electric Utility Generation and. Fuel Planning Report FPC FORM 67. Steam-Electric Plant Air 6 Water Quality Control Data-Year Ending FPC FORM 423 Monthly Report of Cbst & Quality of Fuels for Steam-Electric Plant All Xnterchange tariffs approved and submitted for approval to the FPC

100,000 90,000 80,000 PERCENT RESERVE REOUIRED FOR LOSS Or 70,000 LOAD TO DE EXPECTED ONE DAY EVERY TEN 60,000 YEARS, BASED ON: 50,000 1. GENERATOR FORCED OUTAGE RATE OF 2% 40,000 2, LOAD FORECAST ERROR STANDARD DEVIATION OF 'x3%

3. SCHEDULED MAINTENANCEFILLS UP 30,000 SEASONAL LOAD VALLEY

4. SYSTEMS CONSIST EI 'TIRELY OF INDICATED SIZE UNITS 20,000 z

O 0

                                       @o w9

~ 10,000

   ',000 000

~w 7 000 H 6,000 5,000 4,000 3,000 2,000

       ,000 0 5 10 I5       20 25    30      35      40   45     50
                         / IQ.

REQUIRED PER CENT RESERVE SOURCE: Federal Power Commission 1970 National Power Survey Page I I-1-57

      ~
          ~ ~

A Report to the FLORIDA OPERA7ING CONNIT7EE 5'OR'A'ING GROUP Prepared by Power Pooh'ng Tosk Force

ORLANDO UTILITIES COMMISSION 500 SOUTH ORANGE AVENUE ~ P. O. BOX 3193 ~ ORLANDO. FLORIDA 32802 ~ 305/841-1230 February 25, l975 To: Members of the Operating Committee Gentlemen: Enclosed you will find corrected pages to insert in your copy of the Pooling Task Forces'eport. Most of the changes are editorial in nature and will require no explanation.'arts C and D of the definition of participants in both the Team pool and Link pool were deleted by the Operating Committee at its Lakeland meeting. If there are further questions concerning these changes, please feel free to call me or one of the other task force members. Sincerely yours, Irving Reed Task Force Chairman IR/jh enclosures copies: Mr. K. S. Buchanan Mr. T. H. Farrow Mr. A. N. Harrington Mr. D. L. Hornak Mr. J. C. L'Engle . Mr. M. R. Gent GROVER C. BRYAN DICK SIMPSON SAM G. WILKINS CARL T. LANGFORD HENRY T. MEINER PRESIDENT FIRST VICE PRESIDENT SECOND VICE PRESIDENT MAYOR IMMEDIATEPAST PRESIDENT CURTIS H. STANTON EXECUTIVE VICE PRESIDENT R GENERAL MANAGER

Changes, additions and deletions in the report entitled, "A Florida Electric Power Pool" issued by the Pow'er Pooling Task Force to the Working Committee in December of 1974. Page 1-2: Corrected the first word in the last line of the second paragraph to "are". Page 5-2: Deleted: (c) Which owns and controls transmission facilities operated at 69 KV or higher forming an integral part of the bulk power facilities; and (d) Which operates or participates in the operation of a 24-hour dispatch center with a terminal on the commu-nications network connecting the Participants. Page 5-3: 5B3 Link Pool Executive Committee Changed "Participants" to "Parties" in the line of the first paragraph. first Changed "Participant" to "Party" in the first line of 'the second paragraph. Page S-6: SB5 Link Pool 0 eratin Committee Inserted: "Each Associate Participant. may designate a representative as a non-voting member of the Operating Committee". Page 5-13: Deleted: (c) Which owns and controls facilities operated at 69 transmis-'ion KV or higher forming an integral Page 5-14: Deleted: part. of the bulk power facilities. (d) Which operates or participates in the operation of a 24-hour dispatch center with a terminal on the commu-nications network connecting the Participants.

Changes, additions and deletions in the report entitled, "A Flroida Electric Power Pool" issued by the Power Pooling Task Force to the Working Committee in'December of 1974. Page 5-14: SC3 Team Pool Executive Committee Changed "Participants" to "Parties" in the first line of the first paragraph. Changed "Participant" to "Party" in the first line of the second paragraph. Page 5-18: 5CS Team Pool 0 eratin Committee Inserted: "Each Associate Participant may designate a representative as a non-voting member of the Operating Committee." Page 5-65: . V Plannin and En ineerin Committee Deleted: "If the Committee has serious dis-agreement on any matter, then that matter shall be referred to the Executive Committee for resolution." Page 5-66: VI 0 eratin Committee Deleted: "If the Committee has serious dis-agreement on any matter, then that matter shall be referred to the Executive Committee for resolution." Page 5-67: VXX Environmental Committee Deleted: "If the Committee has serious dis-agreement on any matter, then that matter shall be referred to the Executive Committee for resolution." VXII Le islative Committee Deleted: "If the Committee has serious dis-agreement on any matter, then that, matter shall be referred to the Executive Committee for resolution." Page 5-68: IX Public Relations Committee Deleted: "If the Committee has serious dis-agreement on any matter, then that matter shall be referred to the Executive Committee for resolution."

December ll, 1974 Mr. J. E. Burris, Chairman Fl ori d a Opera ti ng Commi t tee Working Group Tampa Electric Company Post Office Box 111 Tampa, Florida 33601

Dear Mr. Burris:

The Task Force which you appointed to investigate all aspects of Electric Power Pooling in Peninsula Florida has compiled the attached report. The Task Force has researched the concepts of formal power p'ools and believes that additional benefits to electric utilities in Florida exist. Due to the complex nature of the subject and the absence of funds for extensive studies, the Task Force could not quantity the total benefits and(or values to individual systems that might be a party to a formal electric power pool. For their valuable assistance on the Economic Dispatch and Unit Commitment studies necessary to complete this report, the Task Force wishes to recognize the work of Gary Nagle and Steven Stein of Florida Power Corporation, Don Moore and Tom Washburn of Orlando Utilities Commission and Don Benjamin of the Florida Electric Power Coordinating Group. Respectfully submitted, Power Pooling Task Force K. S. Buchanan, Florida Power 8 Light Company T. H. Farrow, Tampa Electric Company A. W. Harrington, Jacksonville Electric Authority D. L. Mornak, Fl or i da Power Corpora ti on J. C. L'Engle, Lake Worth Utilities Authority Irving Reed, Or an o tilities Commission Task Force'airman

TABLE OF CONTENTS

1. Summary

2. Power Pooling Concepts

3. Types of Power Pools A. Formal Power Pools

a. Corporate Pool

b. Team Pool

c. Link Pool B. Informal Power Pools C. Generation Pools

4. Examples of Power Pools A. New York Power Pool B. Upper Mississippi Valley Power Pool

5. Alternative Structures of a Florida Electric Power Pool A. Introduction B.'ink Pool Structure C. Team Pool Structure D. Typical Pooling Agreements

6. Technical A. Introduction B. Operations A comparison: Individual System Dispatch Versus Pool Dispatch C. Planning A comparison: Individual System Installed Reserve Capacity Versus Pool Installed Reserve Capacity

7. References

SECTION 1 SUHMARY Simple forms of pooling consisting of interconnected operation for the purpose of sharing reserve generating capacity were practiced as early as mid 1920. As more, financial and operational advantages were realized, these interconnections grew into networks of high voltage trans-mission lines, reliability was improved and many different-types of operating arrangements resulted. Oepending on, the type of agreement, Power Pools are broadly classified as Formal or Informa1. In a Formal Power Pool members are contractually bound '.to the pool and are classed as either a Corporate Pool, a Team Pool, or a Link Pool. In 1970, sixty percent of the nation's generating capacity was contained in Formal Pools. (a) A Corporate Pool is comprised of the corporate affiliates of a holding company and is operated as a single system. (b) A Team Pool is made up of corporately non-affiliated systems. Planning and operations are carried out as a fully integrated system under the "one system" concept. (c) A Link Pool is also made up of corporately nonaffiliated systems. A multi-party pool agreement provides for coordinated planning and operations and for interchange of capacity and energy on the basis of pool rate schedules

              -for which provisions are made in the pool agreement.

Informal Pools are similar to Link Pools but have no formal multi-lateral pool agreement. Interchange rates for power and energy are in accordance with bilateral agreements between participating systems. In order to share the burden of financing the development of large generating facilities, two or more systems sometimes jointly construct power plants which supply power to the owners at attractive rates. While these are not in the true sense power pools, they are sometimes referred to as Generation Pools. 1-1

The or ganization of a power poo1 'is flexibie and cari be structured within the framework of existing la;;s according to the wishes of the m mbership. Two example:; of formal power pool organizational structures are includ d :n this report. If it is desired to make the transition fro>> an informal pool to a formal pool, the link pool requires Lh= minimum additional resource allocation of personnel and money since almost all pool functions, are performed by the staff of member systems. The initial organization of a team pool is more difficult. in that it requires permanent personnel for the pool staff and the establishment of a central dispatching center. A sample agreement of a link type and a team type pool is included in this report in Section 5. To give some indication of the magnitude of savings that might be realized by formal pool operation of all systems in Peninsula Florida, a study was made of a typical on-peak and off-peak day which compared individually dispatched generation costs to the costs of a central or pool dispatched system. is felt that sufficient restraints were employed to prevent It overly optimistic results. Due to budget limitations a modified Economic Dispatch Program neglecting transmission losses was utilized and the results were favorably checked by a Unit ~ Commitment Program. This study indicates that a fuel savings could be expected from a properly executed central dispatch of Peninsula Florida generating units. The results of this study oare discussed in the Technical Section. Joint planning for the development of generation and transmission facilities offers many advantages to the members of a power pool. Elimination of duplication of effort in the many steps necessary to obtain plant site certification along with transmission facilities expansion efforts which show that planning is based on common system needs without regard to service area should be viewed with favor by regulatory authorities. The magnitude of savings to be realized by large scale development of generation and transmission systems is shown in Section 6. 1-2

SECTION 2 POWER POOLING CONCEPTS As technical advances in the transmission of bulk electrical energy were made during the 1920's and 1930's, the concepts of power pooling were fostered by the realization of electric utilities that interconnected power systems could provide greater service reliability at a cost less than that of individual independent systems. In the beginning, power pooling consisted primarily of mutual assistance arrangements which, together with the growing ability to transnii t bulk power over considerable distances, made it possible for interconnected utilities to share reserves. This sharing reduced the burden of capital cost that the individual utilities had to invest for the same degree of reliability. As power pooling arrangements became generally accepted and the number of power pools grew, the concepts of power pooling broadened to include other areas where cooperation and coordination proved to be economically beneficial. Joint studies of forecasted short and long range power requirements for large geographical areas allowed utilities to coordinate efforts in constructing bulk power transmission systems that provided greater benefits to pool members at a lower cost. Transmission systems planned and constructed to provide for the flow of bulk power from one area to another enabled pool members to coordinate the construction of generating facili ties. This was accomplished princip.ally by staggering power plant construction or by the joint ownership of power generating facilities. By staggering construction, a member of a power pool builds a generating facility with greater capacity than required for its*own needs. Through prior agreement, the building pool member then sells excess capacity to other member systems for a specified period of time. The process is repeated in turn by other pool members. Under joint ownership agreements, two or more (or, on occasion, the entire pooling body) jointly constructs, operates and owns a,power plant. Early agreements provided for individual ownership of a portion of the particular facility, but this proved unwieldy to administer; the common practice today is for members to own an undivided interest in the facility as a whole. Both concepts, staggered construction and joint ownership, allow the various pool members to share in the "economies of scale" and the associated risks of larger units which can be constructed at a cheaper cost per kilowatt, and in benefits accruing from the lower 2-1

operating costs inherent in the more efficient larger units. Principal examples of this type of pooling cooperation are the P. J. lh. (Pennsyl va ni a-New Jersey-Na ryl and) Pool, Keys tone. and Conemaugh mine mouth generating plants with two 810 megawatt units at each plant, and various NEPOOL (New England Power Pool) ventures comprising both staggered construction and joint owner-ship con'cepts. .Other joint pool efforts have made the construction of nuclear plants, with attendant low fuel cost, feasible. In the past several years, environmental and land use considerations have reduced the number of acceptable si tes available for construction of power generation facilities. This added burden on utilities has made coordination and cooperation in the area of providing new generation facilities all the more important.- Although from the early days power pool members have cooperated in sharing 'reserves, scheduling unit outages, and providing for scheduled and emergency interchanges, only recently has the coordinated economic use of available power generation within a pool gained acceptance. This concept, referred to'nits as centralized economic dispatch, provides that the load being served by the pool as a whole be met by generation from the most economical sources available. While this relatively sophisticated operating technique requires a rather r'igid pool organizational structure complete with a centralized dispatching center, staff, and on-line computer, its importance and value are becoming more and more evident due to increasing fuel costs and a declining availability of all fuels, especially the more environmentally attractive low sulfur coal and oil, and natural gas. guite recently, an additional environmental advantage of centralized pool area di spatch has been utilized by reducing generation i n areas experi enci ng short term adverse environmental conditions . All power pooling or coordinating groups encompass at least some of the concepts enumerated above. As discussed in Section 3, power pools can be, and indeed are, structured'in various of organizational complexity. However, regardless of the degrees type of pooling arrangement, there are definite benefits which can accrue to the individual pool members and through them the consumers. This appears, to be particularly true where there is a diversi ty of size included in the pool membership, such as in the case of New England Power Pool (NEPOOL) and New York Power Pool (NYPP). 2-2

SECTION 3 TYPES OF POWER POOLS The term "Power Pool" is defined in the Federal Power Commission's 1964 National Power Survey as "two or more electric systems which are interconnected and coordinated to a greater or lesser degree to supply, in the most economical manner, electric power for their combined loads." A wide range of diverse contractual arrangements exist today among systems from all segments of the electric utility industry providing for various degrees and methods of coordination. These variations reflect differences in load diversity, characteristics of generating plants, fuel costs and geography. They are also a product of managerial views with respect to planning, corporate rate-base requirements, allocation of transmission system costs between power pool and individual system functions and apportionment of benefits among pool members of disparate size, as well as complex legal and organizational problems. Power pools can be broadly categorized as formal or informal. The term "Formal Power Pool" is defined in the Federal Power Commission's 1970 National Power Survey as "two or more electric systems which coordinate the planning and/or operation of their bulk power facilities for the purpose of achieving gireater economy and reliability in accordance with a contractual agreement that establishes each member's responsibilities." An " Informal Power Pool" can be defined similarly, except that no member is so contractually obligated to other members. Both Formal and Informal Power Pools provide the economic benefits that become available through performance of one or more of the following basic functions of interconnections:

1. Firm power sales and purchases

2. Reduction of generating reserve requirements

3. Economic loading of generating units

4. Provision of short-term capacity to compensate for unanticipated capacity deficiencies

5. Utilization of load diversity to reduce generating capacity requirements

6. Greater flexibility in scheduling maintenance 3-1

0

7. Staggered construction to make possible installation of larger gen'crating.units with attendant sharing of financial risk.

A. Formal Power Pool s Based on organizational structure, Formal Power Pools can be categorized as three types: Corporate Pool, Team Pool and Link Pool. (a) Cor orate Pool Corporate Pool is a power pool comprised of the corporate affiliates of a holding company. A Corporate Pool is planned and operated as a single system with a central dispatching center for the economic dispatch of all generating units. Examples of Corporate Pools are: American Electric Power System (AEP) Appal achian Power Company India na & Michigan Electric Company Kentu cky Power Company Kings port Power Company Mi chi gan Power Company Ohio Power Company Sewel 1 Valley Utilities Company Wheel ing Electric Company General Public Utilities Corporation (GPU) Jer sey Centr al Power 8 Li ght Metropolitan Edison Company Pennsylvania Electric Company New Jersey Power & Light Company Middle South Utilities System Arkansas Power & Light Company Louisiana Power & Light Company Mississippi Power 8 Light Company New Orleans Public Service, Inc. Southern Company System Alabama Power Company Georgia Power Company. Gulf Power Company Mississippi Power Company 2

(b) Team Pool Team Pool is a power pool comprised of non-affiliated systems which are planned and operated as a fully integrated system under the '"one-system" concept. All of the above interconnection functions are provided. A Team Pool has .major joint generation-transmission planning'"and construction programs. Each pool member generally pays its proportionate share of the annual carrying charges on all transmission facilities which are classified as pool facilities. The annual carrying charges on transmission facilities associated with a joint ownership power plant are generally paid by the members which are joint owners in the same proportion as their ownership shares. A central dispatching center provides for the economic dispatch of all generating units on a one-system, free-flowing tie basis. There is thus no advance scheduling of economy energy interchange between pool members'. Billing for the resultant economy energy transactions is determined hourly by an after-'the-fact accounting procedure based on actual pool dispatch costs and own-load dispatch costs which would have been incurred with operation independent of the pool. The pool bills the members monthly for all interchange transactions, including those with nei ghboring systems and pools. Examples of Team Pools are: Michigan Electric Power Pool Consumers Power Company Detroit Edison Company New England Power Pool (NEPOOL) Bangor Hydro-Electri.c Company Boston Edison Company Braintree Electric Light Department Central Maine Power Company Central Vermont Public Service Eastern Utilities Associates Fitchburg Gas 8 Electric Light Holyoke Gas 8 Electric Department New England Electric System New England Gas 8 Electric Associates Northeast Utilities Public Service Company of New Hampshire The United Illuminating Company 3-3

New York Power Pool (NYPP) Central Hudson Gas 8 Electric Consolidated Edison Company of N.Y. Long Island Lighting Company N. Y. State Electric 8 Gas Corporation Niagara Mohawk Power Corporation Orange 5 Rockland Utilities, Inc. Power Authority of State of N.Y. Rochester Gas 5 Electric Corporation Pennsylvania-New Jersey-Maryland Int'erconnection (PJM) Baltimore Gas 8 Electric Company General Public Utilities Corporation Pennsylvania Power 8 Light Company Philadelphia Electric Company Potomac Electric Power Company Public Service Electric 8 Gas Company (c) Link .Pool affiliatedd Link Pool is a power pool comprised of non-systems with coordinated planning and operation. A Link Pool can provide all of the above interconnection functions through its multi-party pool agreement and thus achieve operation approximating that under the "one-system" concept. Each pool member generally pays the annual carrying charges on all transmission facilities within its service territory. Joint ownership of some transmission facilities such as EHV lines is sometimes provided for by a transmission facilities agreement among the owning systems. A pool member whose transmission facilities are necessary for effecting power exchanges between two other pool members is paid for such use by the receiving party in accordance with the pool agreement. Exchange of capacity and energy is made on the basis of applicable pool rate schedules provided in the pool agreement. Billing for interchange trans-actions is on the basis of the scheduled interchange commitments between the pool members and is rendered by the supplying member to the receiving member directly. Interchange transactions involving systems of other members are billed in accordance with a wheeling service schedule of the pool agreement. Interchange transactions by a pool member with a neighboring system or pool are billed directly by the supplying party to the receiving party. 3-4

Examples of Link Pools are: Illinois-Missouri Pool Central Illinois Public Service Company Illinois Power Company Union Electric Company Kentucky- Indiana Power Pool (KIP) Indianapolis Power & Light Company Public Service Company of Indiana Kentucky Utilities Company Missouri-Kansas Pool (MOKAN) Empire District Electric Company Kansas City Power & Light Company Kansas Gas 8 Electric Company Kansas Power & Light Company Missouri Public Service Company Iowa Pool* Corn Belt Power Cooperative Iowa Electric Light & Power Iowa- Illinois Gas & Electric Company Iowa Power & Light Company Iowa Public Service Company Iowa Southern Utilities Comp'any Upper flississippi Valley Power Pool* Cooperative Power Association Dairyland Power Cooperative Interstate Power Company Lake Superior District Power Minnesota Power & Light Company Minnkota Power Cooperative Montana-Dakota Utilities Company Northern Minnesota Power Association Northwestern Public Service Company Northern States Power Company Otter Tail Power Company Rural Coop. Power Association United Power Association Wisconsin Power Pool Madison Gas & Electric Company Wisconsin Power & Light Company Wisconsin Public Service Corporation

            *Mid-Continent Area Power Pool (NAPP) was formed in 1973 by combin',ng these two pools and a number of other utilities into a large regional pool which is functionally similar to the Upper Mississippi Valley Power Pool.

B. Informal Powe~ Pools An Informal Power Pool is, similar to a Link Pool. Many of the benefits of a Link Pool'can be obtained through bilateral and multiparty interconnection agreements. Examples of Informal Power Pools are: Florida Operating Committee New Mexico Power Pool Rocky Mountain Power Pool Wisconsin-Upper Michigan Systems C. Generation Pool Any two or more power systems can form a jointly owned generating company'o provide wholesale power to the participants. Such an arrangement could be termed a Generation Pool. A joint generating company could provide significant benefits to the owners, among them:

l. It could facilitate the financing of the very large capital requirements for construction of the new generating capacity needed.

2. It could result in a lower cost of financing, and thereby benefit consumers.

3. It could permit substantial economies of scale, standardization of design and other financial and operational benefits.

4,. It could provide a more efficient means for the advance selection and governmental approval of environmentally acceptable sites for major power stations. 3-6

SECTION 4 EXAMPLES OF POMER POOLS A. New York Power Pool (Team Pool) The organization and functions of the New York Power Pool are representative of team pools. The New York Power Pool agreement is administered by an Executive Committee comprised of a senior officer from each member utili ty and an al ternate for each.committee member. The Executi ve Commi t tee selects from among i ts members a Chairman and Vice Chairman to serve for one year. The Vice Chairman succeeds the Chairman at the end of each term of office. The agreement provides that the Executive Commi ttee shall meet at least quarterly and at such other times as the Chairman may determine. The Executive Committee's responsibility is to determine policy wi th respect to all matters wi thin the scope of the agreement and the carrying out of i ts provi si ons ~ The Executi ve Commi t tee al so reviews and directs the activities of the other committees of the Pool. An Executive Oirector acts as the liaison between the Executive Committee and the Operating, Planning, Environmental and Public Relations Committees. He is responsible for the administra-tion and coordination of the activities of those committees and Th ~0i each of the members and an alternate C i, carries out, such other duties as are assigned by the Executive i d nho is responsible for electric system operations for each member, is responsible for the coordina-tion of the operations of the bulk supply systems of the Pool

                                                                         'ommittee.

members.- The Committee directs the activities of the Power Pool Operating f3anager and establishes such rules and practices as may be required to coordinate the operation of the bulk power supply system of the Pool members so as to insure reliability of service, and economic operation with due regard for environmental factors. The Committee has established subcommittees and task forces to assist in the carrying out of its responsibilities. Under the direction of the Operating Commi ttee, an 0 eratin Manager and his staff of 57 personnel operate the Power Poo Control Center. The principal purposes of the Control Center are: coordinating the operations of the member companies insofar as they may affect the reliability of the bulk power supply on the interconnected systems in New York State; dispatching energy re-quirements, and monitoring the internal and external operations of the Pool to insure unimpaired overal securi ty of bulk power supply 1 at all times. l1ore specifically, the Control Center operating staff schedules and dispatches operating capability and energy to meet the Power Pool load and reser ve requirements in a reliable and economical manner; coordinates the operation of the Power Pool with other systems or pools; determines the required minimum reser ve capability to be operated by each member of the Pool; schedules all transactions for the purchase or sale of operating capability or 4-1

energy; determines the cost of inter and intra Power Pool tra'ns-actions and prepares billing statements for such transactions. The operating staff operates a Control Room at the Control Center with dispatchers on duty around the clock. Data essential to the effec-tive analysis of power conditions are telemetered to the Control Room continuously. A high speed computerized bulk data system i s installed at the Control Center. This computer system provides data collection and storage facilities, a display medium for the dispatchers and a powerful computational tool to perform security and economy calculations in real time. The computer system is interconnected with satellite equipment located in the operating centers of the members. The computer continuously monitors system data essential to securi ty of operations such as frequency, trans-mission line flows, operating reserve, system load and system generation. The installation also gives the operating staff the ability to determine quickly what the system effect would be should certain contingencies occur. The Pool dispatchers are in constant communi cati on wi th the member' di spatchers and the Pool computer system has the capability to communicate with equipment located at the members'perating centers. bilityy The Plannin Committee consists of a senior executive from each member system wno ss responsible for electric system planning and an alternate for each member. The Committee has the responsi-to coordinate and develop plans for the installation of additional generating capability and i nterconnecti ng transmi ssi on facilities within the Power Pool. The Commi ttee is also responsible for the coordination of planning between the Power Pool and adjoin-ing pools and with regional power coordinating agencies to the extent appropriate. The Committee has established Subcommittee and Task Forces to assist in the carrying out of its responsibilities. Under the direction of the Planning Coa>mitten, a Pl ermine

~Hana er and his staff'f 10 personnel          assist the Pl ann>ng Committee
 >n carrying out its responsibility to coordinate and develop plans for installation of additional generating capability and inter-connecting transmission facilities within the Power Pool and wi th adjoining pools and systems. The Planning Staff is also responsible for determining transfer limits between areas within New Yorl State and between transmission systems of New York State and that of adjacent an'd interconnecting areas.        The Planning Manager and staff are located at the Power Pool Control Center.

The Environmental Committee is comprised of executives and 'ngineers representing eac i member system. The Commi ttee possesses the knowledge to deal wi th the technical aspects of environmental protection and enhancement as they pertain to the planning function of the Pool. The Committee members are supported by designated representatives from the environmental engineering staffs of their member systems. The Director of Environmental Affairs is on the staff of the Executive Director and supports the activities of the Environmental Commi ttee and maintains working contacts wi th Federal, 4-2

State and local officials involved in environmental matters. The Director of Environmental Affairs accommodates many envir onmental groups with information and guidance, and arranges contacts between these groups and NYPP representatives. A Public Relations Committee consisting of a public relations ,representative from each member coordinates the public relations activities as they apply to the Pool as a whole. The Director of Public Relations provides support to the Public Relations Commi ttee, implements Pool oriented. publi c affairs and informati on programs and acts as host to visitors to the Power Control Center. Chairmen and Vi ce Chairmen of the Operating, Planning, Environ-mental and Public Relations Committees are selected and rotated in the same manner as is done in the case of the Executive Committee. B. U er Hississi i Valle Power Pool (Link Pool) The organization and functions of the Upper Mississippi Valley Power Pool are representative of link pools. The pool agreement is administered by a Planning Commit tee and an Operating Committee. Each member system is represented on both. committees. The Plannin Committee has a broad assignment to carry out or coordinate engineering studies relating to expansion of new bulk power supply facilities. It is assigned specific responsibilities for development of load forecast, determination of generating reserve requirements, accrediting generating capabilities and scheduling of capacity sales and purchases in connection with staggering of generator additions and utilization of seasonal load diversity. This planning commi ttee is represented as a uni t on the t1APP Planning:. Commi t tee and has a 1 i ai son,representati on in the tlAIN organi za ti on. Allocations of reserve are handled through purchases and sales under established pool rate schedules so that each member provides its established pool percent reserve requirement. The member systems have a mixture of winter and summer peak loads and this diversity is utilized through schedules of six-month seasonal pur-chases and sales administered by the planning committee. The 0 eratin Commi ttee is assigned responsibi li ty. for develop-ment and a ministration of operating practices on a pool-wide basis that will provide optimum operating economy consistent with high reliability of service. Specific areas of coordination cited in the pool agreement are spinning reserve, maintenance sechedules, economy energy transactions, short term load forecasts, and interchange energy accounting. A minimum spinning reserve equal to the largest generator unit in the pool is presently required. This amount is allocated among the member systems on the basis of the largest unit in each system and its annual peak load, equal weight being given to each of these two factors. Maintenance outages are coordinated at quarterly meetings of the Operating Committee. Operating coordina-tion is carried out continuously through special subcommittees and rotation of specific assignments among the individual systems. For example, the dispatching office of one member system will be

designated as the spinning reserve c" ordination office, another dispatching office will act as maintenance coordination office, etc. A teletype communications network inrerconnecting the member ispatching offices is, used extensively for carrying out routine coordination efforts and obtaining rapid response to emergency situations. The communication system is also used daily for arranging economy energy transactions to economically allocate generator loadings on a pool basis. Exchanges of capacity and energy to accommodate the foregoing planning and operation" are carried out under rate schedules provided in the pool agreement as follows: A - Participation Power Interchange Service 8 - Seasonal Participation Power Interchange Service C - Emergency and Scheduled Outage Interchange Service 0 - Spinning Reserve Interchange Service E - Economy Energy Interchange Service F - Mheeling Services and Losses 6 - Operational Control Energy Interchange Service H - Peaking Power Interchange Service I - Short Term Power Interchange Service J - Firm Power Interchange Service Schedules A, 8, H, I and J are primarily administered by the Planning Committee in connection with its responsibilities for coordinating generator planning, sharing of reserves and exchanging seasonal diversity power. The remaining service schedules are used under the di rection of the Operating Committee in carrying out day-by-day coordination. Service Schedule F provides for transmission service between member systems that are not directly connected to each other and this schedule is essentially a supplement to a11 of the others.

Estcottct Co eel Ill~ Tsocerhe Oirs fret Oytrottay Ptoaat44 Carlfote satol tttr55C Roe)tert Csee t tt t c Coeeltltt Cceet stet Coeellttt Csntstroo ts ad tete Teel Ttnrr! ssoa ~s

                                                                                                                                       ~ ed ra>orts'.4)        f<<ca as         )trice)le<its Soocooaerr ~          ArfÃe YN1          Se)coo<<Itin Cost a%eel)r!                              tSC Uo ~                        Gtstroaelatsl                 Chstrosoltrltol                    Eartroaecattt Coe )clef Rtsfrtt                                   oft ro c I!'                                                                                                                                                  Atr                               T/lt sr St)toes                        tl               Cost    t)5't$ 4$                                                                                                                                t.o84 Otfrtttoat     Adttsorf     Code.ititf            SoOCortett to IMMcor                                                                                                                 SoacceelVtt  ~                  St'bcoeeit   I lI                 SoScoeetttct Ss5coeelOos   SsOcoeetttst S

tloMlet Itoarttr Snacoeetltll 4l rosser ot est ~ ttr'4 fd noc Tort! ftns CatfreMtatoc attortt 4lros coo et foMoaao Ir<< r ~ CaarWocial tsclto teMr too Srrr 4M SI<<r aer ~ salsa selectors tteastrs Scarf Coorros CooCtr Staff al lroc Toss fans Oa Uol as!clot!tat trrtsoa airer Scoff Coriat ttr twl f<<co Stet~ 4a or of'tro Cecil) ftlssfss I to N SMrf aftra Tnlfeno ad sec Tnl fern N ssn snide!a Os Coo<<fr M tcsC ates Oa Coo)erst Oa lat<<+ Oontod Tns fora lass! ) attn roots tool Ots! err<<4 aoaloM'cototoacao Cessor 4 L taatn no!oint Oor 4 Joist Toss f<<a al )roc Teal farce arMS eor fI or Iae tssatot/daMt~atct Ca tttl att ~ <asst cwts asttssns

0' UPPER HISSISSIPPI VALLEY POWER POOL Operating Planning Committee Committee Coordination Functions Coordination Functions Spinning Reserve - Bulk Power Supply Planning Haintenance Schedules Long Term Load Forecasts Short Term Load Forecasts Generating Reserve Requirements Economy Interchange Transactions Scheduling Capacity Sales and Emergency and Scheduled Outage Purchases in Connection with Interchange Transactions Coordinating Generating Planning Interchange Energy Accounting and Sharing of Installed Reserve

                                           - HAPP Planning Committee Representative
                                           - HAIN Liaison Representative

SECTION 5. ALTERNATIVE STRUCTURES OF A FLORIDA ELECTRIC POWER POOL (FEPP)

0

                                  , SECTION 5 ALTERNATIVE STRUCTURES OF A FLORIDA ELECTRIC POWER POOL (FEPP)

INDEX PAGE 5A Introducti on 5-1 58 Link Pool Structure 5-2 581 Link Pool Organization 5-2 582 Link Pool Membership 5-2 582.1 Participant 5-2 582.2 Associate Participant 5-3 583 Link Pool Executive Committee 5-3 584 Link Pool Planning And Engineering Committee 5-4 584.1 Capacity And Transmission Planning Subcommittee 5-5 584.2 Computer Program Development Subcommittee 5-5 584.3 Production Plant Design Subcommittee 5-6 584.4 Transmission And Substation Design Subcommittee 5-6 585 Link Pool Operating Committee 5-6 585.1 System Operations Subcommittee 5-7 585.2 Accounting Subcommittee 5-7 585.3 Reserve Requirement Subcommittee 5-7 585.4 Relay and Control Subcommittee 5-8 585.5 Communications Subcommittee 5-8 585.6 Computer Coordination Subcommittee 5-9 585.7 Maintenance And Construction Subcommittee 5-9 586 Link Pool Environmental Committee 5-9 587 Link Pool Public Relations Committee 5-10 588 Link Pool Legislative Committee 5-10 589 Link Pool Organization Chart 5-11 5C Team Pool Structure 5-13 5Cl Team Pool Organization 5-13 5C2 Team Pool t1embership 5-13 5C2.1 Participant 5-13 5C2.2 Associate Participation 5-14 5C3 Team Pool Executive Committee 5-14 5C4 Team Pool Planning And Engineering Committee 5-15 5C4.1 Capacity And Transmission Planning . Subcommittee 5-16 5C4.2 Computer Program Development Subcommittee 5-16 5C4.3 Production Plant Design Subcommittee 5-17 5C4.4 Transmission And Substation Design Subcommittee 5-17 5-i

PAGE 5C5 Team Pool Operating Committee 5-17 5C5.1 Systems Operations Subcommittee 5-18 5C5.2 Accounting Subcommittee 5-18 5C5.3 Reserve Requirement Subcommittee 5-19 5C5.4 Relay And Control Subcommittee 5-19 5C5.5 Communications Subcommittee  : 5-19 5C5.6 Computer Coordination Subcommittee 5-20 5C5.7 Maintenance And Construction Subcommittee 5-20 5C6 Team Pool Environmental Committee 5-21 5C7 Team Pool Public Relations Committee 5-21 5C8 Team Pool Legislative Committee 5-21 5C9 Team Pool Staff 5-22 5C9.1 Administrative Director 5-22 5C9.2 General Manager, Planning and Engineering 5-22 5C9.3 General Manager, Operations 5-23 5C9.4 Manager, Dispatch 5-23 5C9.5 Manager, Accounting 5-23 5C9.6 Manager, Power Supply Coordination 5-24 5C9.7 General Manager, Studies 5-24 5C10 Team Pool Organization Chart 5-26 5D T ical Poplin A reements 5-27 5Dl Typical Link Type Florida Electric Power Pool Agreement 5-27 SD2 Typical Team Type Florida Electric Power Pool Agreement 5-59

SECTION 5 ALTERNATIYE STRUCTURES OF A FLORIDA ELECTRIC POMER POOL FEPP 5A, INTRODUCTION Some of the unique features of the existing informal Florida Pool, Florida Electric Power Coordinating Group (FCG), and its history of good operating and ol arming functi onal rel ati onshi ps faci 1 i tates an easy transition into a more formal pool structure with additional advantages. The FCG present'~y achieves five (5) of the seven (7) basic functions (enumerated in Section 3) of an interconnected system to some degree. This section of the report will discuss the concepts of an orderly transition rom the present informal pool into the formal pool of either the "link type" or the "team type." Typical agreements are also included in this section of the report. Organizational charts and descriptive responsibilities of the major functions are in-cluded. However, these charts are in no way to be construed as firm, but rather, illustrative, from an educational nature for the purpose of this report. The staffing should be approached on a career basis within proper levels of the individual parties manpower resources. 5-1

5B LINK POOL STRUCTURE BB1 11 2 P 2~f2 1 11 A possible organization structure of a 1-:nk type Florida Electric Power Poo, '.s shown in the cha -. 'Subsection 5B9). The objective of this type of organiz.,t on is to utilize the

                                                    ~

capability of the individual members on a dedicated pool basis. The on!y paid personnel on the pool taff are admin-istrative and clerical. Other personnel involved in pool management, operation, planning, engineering, etc., are full time employees of the indiv',dual member companies. One of their primary job functions. is to attend to pool matters on a continuous basis. The various committees function on a regular basis and the details of'ach committee will be spelled ou in the following Subsections. This type of organization is a logical step or transition from our present. informal FCG organization to a more formalized organization with a minimum of new resource allocations of manpower and money. The organi zati on can be n:odi fi ed as the need and justification arise. 5B2 Link Pool t1embershi Any electric system operating facilities in the State of Florida f'r servic- to he public, as defined by the Florida Public Service Commission, shall be eligible for membership in the Florida Electric Power Pool (FEPP) as a Participant or Associate Participant. The degree of participation would be consistant w"th the existing Florida Electric Power Coordin-ating Group (FCG) objectives. BB2.1 ~P A Participant is any Party to the Florida Electric Power Pool Agreement (a) llhich owns and controls the operation of gen-erating units having a combined installed capacity of 75NW net, or more; and (b) llhos'e system is normally operated directly interconnected wi th one or niore Par ti c i pants 5-2

5B2.2 Associate Partici ant It is recognized that some Parties to the Florida Electric Poker Pool Agreement cannot fully participate under the.".provisions set forth for a Participant. Therefore, provision is made for such Party ".o participate as an Associate Participant, it being recognized that its primary participation will be through the Participant to which the Party is connected under the prov'.sions of appropriate contracts with such Participant. Link Pool Executive Committee The Parties of the FEPP shall establish an Executive Committee to determi ne policy with respect to all matters within the scope of the Agreement and to arrange for the administration and implementation of the Agreement. The Executive Commit.ee shall pre,vide for the coordination of the planning, engineering, environmental, public relations, legislative, and operating functions of the members of FEPP in order that, to the greatest extent possible, such coordi nati on will be directed to providing for the electric power needs of the State of Florida (excluding Gulf Power Company) as a whole. P X Each Party to the Agreement shall designate a senior officer, and as an alternate, a second officer authorized to act on his behalf, to serve on the Executive Committee. The expenses of each member of the Executive Commi ttee shall be borne by the party he represents. At its first meeting, the Executive Committee shall select from among its members a chairman and a vice chairman to serve for one year from such first meeting; and for each year thereafter the chairman shall be the member of the Committee who served as vice-chairman during the preceding year, and the vice-chairman shall be a member selected by the Committee. The Committee shall meet at least monthly and at such other times as the chairman may determine necessary. The Executive Committee shall review and direct the activities of the Planning and Engineering Committee, Operating Committee, Environmental Committee, Public Relations Committee and Legislative Committee established hereunder. The Executive Committee shall arrange for the services of an Administrative Director of the FEPP and sufficient clerical and technical staff to permit them to fulfill their responsibilities hereunder. The Admin-istrative Director shall act as a liason between the Executive Committee and the Committees; shall attend

              ~ I Changed "Participants" to "Parties"
              ~ g Changed "Participant" to "Party" 5-3 Acc. *(~$. /~ S.

commi ttee meeti ngs'n a non-voting capaci ty; sha 1 1 administer and coordinate the activities of FEPP and carry out such other duties as may be assigned by the-Executive Committee. All expenses arising out of the admin.'stration and implementation of the "Agreement, other than the expenses incurred by each member or alternate member of the Executive Committee, Planning and Engineering Committee, Operating Commi t tee, Environmental Commi ttee, Public Relations Committee, and Legislative Committee shall be subject to the approval of the Executive Committee, in accordance with procedures to be establ ished by the Executive Committee, and shall be allocated among the Parties in a'ccordance with the formula for payment which may be in effect at the time such expenses are incurred. The Chairman of the Executive Commi:tee is hereby designated the agent of each of the parties for the purpose of filing changes in, or supplements to, the Agreement with the Federal Power Commission and other regulatory agencies. The Executi ve Commi t tee shall direct the acti vi ties of the Task Force on Pool Cost Allocation. This Task Force shall be responsible for determining the initial capacity and energy charges for the Agreement within the structure of the Pool Allocation Plan and present these to the Executive Committee for approval. The Task Force shall monitor, the initial charges, after, approval, on a continuous basis and based on information and recommendations from the Planning and Engineering Committee and the Operating Committee shall submit changes as appropriate to the Executi.ve Committee for approval. Link Pool Plannin and En ineerin Committee The Executive Committee of FEPP shall establish a Planning and Engineering Committee which will be responsible for c'oordinating the planning and engineering of all bulk power supply facilities. The committee will review plans and engineering specifications developed by the underlying subcommittees for implementation by FEPP and will present the committee's recommendations to the Executive Committee for approval. Each Participant shall designate the senior individual responsible for electric system planning and engineering along with an alternate to serve on the Planning and Engineering Committee. The expenses of each member on the committee will be borne by the party he represents. 5-4

Each Associate Participant may designate a representative as a non-voting member of the Planning and Engineering Cv-.mittee. The Planning and Engineering Committee shall select -rom among its members a chairman and vice-chairman. The offic. rs shall be changed annually in rotation among the members of the committee. Each year, the vice-chairman of the con~'ttee during the preceding year shall succeed to the chairmanship. Planning and Engineering Committee shall meet at regularly

                                                                'he scheduled times and at such other times as the chairman may determine.

5B4.1 Ca acit And Transmission Plannin Subcommittee The Planning and Engineering Coamittee shall estab-lish a Capacity and Transmission Planning Subcom-mittee to develop plans for the capacity ard trans-mission additions to FEPP. The subcommittee will be staffed by senior planning personnel responsible for studies and reports along the lines of individual Participant system expansion plans. The subcom-mittee shall recommend alternative plans to the Planning and Engineering Committee for their review and recommendations. The subcommittee will select from among its members a chai rman and vice-chairman. The officers shall be changed annually in rotation among the members of the subcommittee. The subcommittee shall meet at, regularly scheduled times and at such other times as the chairman may determine. 5B4.2 Com uter Pro ram Develo ment Subcomnittee The Planning and Engineering Committee shall estab-lish a Computer Program Development Subcommittee to maintain, develop and research computer programs to aid in data collection, analysis, data manipulation, and control for pool planning and engineering func-tions. The subcommittee will be staffed with senior personnel with the proper background for this func-tion from the Participants. The subcommittee shall select from among its members a chairman and vice-chairman. The officers shall be changed annually in rotation among the members of the subcommittee. The subcommittee shall meet, at regularly scheduled times and at such other times as the chairman may determine. 5-5

5B4.3 Production Plant Desi n Subcommittee The Planning and Engineer;r.g Ccr,'ri-ttee shall estab-lish a P"oduction P'.ant Dcs".'gr. Subcommittee to Gfvelop acceptzble design standards or pool gen-Gl ating facili ties. The. 'ubcor::".ittee will be staffed with senior persornel" responsible for power plant design from the Partic'.pants. The subcommittee shall select from among its members a chairman and vice-chairman. The officers shall be cnanged annually in rotation among the members of the subcommittee. -The subcommittee shall meet at regularly scheduled times and at such other times as the chairman may determine. 584.4 Transmission and Substation Desi n Subcommittee The Planning and-Engineering Committee shall estab-lish a Transmission and Substation Design Subcom-mittee to develop and maintain acceptable design standards for transmission and substation facilities dedicated to pool use. The subcommittee'ill be staffed with senidr engineering personnel respon-sible for transmission and substation design from the Participants. The subcotteittee shall select from among its members a chairman and vice-chairman. The officers shall be changed annually in rotation among the members of-the subcommittee. The subcommittee shall meet at regularly scheduled times and at such other times as the chairman may determine. 5B5 ~LikP 10 ~iC The Executive Committee of FEPP shall establish an Operating Committee which shall establish and maintain all necessary rules and practices necessary to coordinate the operation of the bulk power supply systems of the pool membership. These rules and practices shall insure reliability of service and economic operation. Each Participant shall designate the senior individual respon-sible for electric system operation along with an alternate to serve on the Operating Comnittee. The expenses of each com-mittee member will be borne by the party he represents. Each Associate Participant'may designate a repre-sentative as a non-voting member of the Operating Commi t tee .

   ~

Z>>papier gaia jr'/k

The Operating Committee shall select from among its members a chairman 'and vice-chairman. The officers shall be changed annually in rotation among the members of the committee. Each year the vice-chairman of the committee during the preceeding year shall succeed to the chairmanship. The Operating Com-mittee shall meet on a monthly basis and at such other times as the chairman may determine. 585. 1 S stem 0 erations Subcommittee The Operating Committee shall establish a System Operations Subcownittee. The subcommittee shall be-responsible for developing and maintaining a pool operating manual, training for dispatching per-sonnel, control center coordination and other oper-ating practices as may be necessary. The sub-committee will be staffed by senior for system operation from the Partici-personnel'esponsible pants. The subcommittee will select from its members a chairman and vice-chairman. The officers shall be changed annually in rotation among the subcommittee members. The subcommittee shall meet at regularly scheduled times and at such other times as the chairman may determine. 585. 2 Accountin Subcommittee The Operating Committee shall establish an Account-ing Subcommittee to develop and maintain practices involved in accounting for the costs involved with the operation of the pool and will be responsible for the cost schedules within the pool agreement. The subcommittee will be staffed by senior personnel with the proper background to carry out this impor-tant function from the Participants. The subcommittee will select from among its members a chairman and vice-chairman. The officers shall be changed annually in rotation among the subcommittee members.. The subcommittee will meet at regularly scheduled times and at such other times as the chairman may determine. 585.3 Reserve Re uirement Subcommittee The Operating Committee shall establish a Reserve . Requirement Subcommittee. The subcommittee shall be responsible for developing and maintaining adequate reserve policies consistent with good reliability and economic operation. The subcommittee will 5-7

review current reserve requirements and will deter-mine alternative courses. of action should a con-tingency condition develop in the pool facilities. The subcommittee will be staffed with senior per-sonnel with the proper background for this function from the Participants. The subcommittee will select from among its members a chairman and vice-chairman. The officers shall be changed annually in rotation among the subcommittee members. The subcommittee shall meet at regularly scheduled times and at such other times .as the may determine. 'hairman Rela and Control Subcommittee The Operating Committee shall establish a Relay and Control Subcommittee. The subcommittee wi 11 be responsible for developing and maintaining pro-tection and control schemes for pool facilities. This includes installation, checkout, relay set-tings, relay maintenance, periodic review of co-ordination and other related control and protection functions for pool facilities. The subcommittee will be staffed with senior personnel with the proper background for this function from the Participants. The subcommittee will select from among ',ts members a chairman and vice-chairman. The officers shall be changed annually in rotation among the subcommittee members. The subcommittee shall meet at regularly scheduled times and at such other time" as the chairman may determine. Communications Subcommittee The Operating Committee shall establish a Communi-cations Subcommittee. The subcommittee will be r"spons',ble for developing and maintaining an adequate and reliable communications system between the Parti-cipants of the pool. The subcommittee will review and recommend the necessa'ry communication system for good pool operations. The subcommittee will be staffed with senior personnel with the proper background for this function from the Participants. The subcommittee will select from among its members a chairman and vice-chairman. The officers shall be changed annually in rotation among the subcommittee members. The subcommittee will meet at regularly scheduled times and at such other times as the chairman may determine. 5-8

585.6 Com uter Coordination Subcommittee The Operating Committee shall establish a Computer Coordination Subcommittee. This subcommittee will be responsible for deve',oping and maintaining co-ordination of all pool computer facilities dedicated to day-to-day operation to insure maximum uti liza-tion of process control computer applications. This would include system control, system data acquisi-tion, data manipulation, operators log, supervisory control and other such functions as may be allocated to the computer. The subcommittee will be staffed with senior personnel with the proper background for this function from the Participants. The subcommittee will select from among its members a chairman and vice-chairman. The officers shall be changed annually in rotation among the subcommittee members. The subcommittee will meet at regularly scheduled times and at such other times as the chai rman may determine. 585.7 MaIntenance And Construction Subcommittee The Operating Committee shall establish a Mainten-ance and Construction Subcommittee. The subcom-mittee will be responsible or developing and maintaining all necessary rules and practices nec-essary to coordinate the maintenance and construc-tion of the generation and the bulk power supply systems of the pool membership. These rules and practices shall insure reliability of service and economic operation. The subcommittee will be staffed with senior personnel responsible for maintenance and construction from the Participants. The subcommittee shall select from among its members a chai rman and vice-chairman. The officers shall be changed annually in rotation among the subcommittee members. The subcommittee will meet at regularly scheduled times and at such other times as the chairman. may determine. 5B6 Link Pool Environmental Committee The Executive Committee of fEPP shall establish an Environ-mental Committee which shall develop and coordinate aspects of environmental protection and enhancement as they pertain to the planning function of FEPP. Each Party shall designate the senior individual responsible for environmental activities along with an alternate to serve 5-9

on the Environmental Committee. The expenses of each member on the committee will be borne by the party he represents. The Environmental Committee shall select from among its members a chairman and vice-chairman. The officers shall be changed annually in rotation among the members of the committee: Each year, the vice-chairman of the committee during the preceding year shall succeed to the chairmanship. The Environmental Committee shall meet at regularly scheduled times and at such; other times as the chairman may determine. 5B7 Link Pool Public Relations Committee The Executive Committee of FEPP sh'all establish a Public Relations Committee which shall develop and coordinate public relation activities as they apply to FEPP as a whole. Each Party shall designate the senior individual responsible for public relation activities along with an alternate to serve on the Public Relations Committee. The expenses of each member of the committee will be borne by the party he repre-sents. The Public Relations Committee shall select from among its members a chairman 'and vice-chairman. The officers shall be changed annually in rotation among the members of the com-mittee. Each year, the vice-chairman of the committee during the preceding year shall succeed to the chairmanship. The Public Relations Committee shall meet at regularly scheduled times and at such other times as the chairman may determine. 5BS Link Pool Le islative Committee The Executive Committee of FEPP shall establish a Legislative Committee which shall develop and coordinate legislative activities as they apply to FEPP as a whole. Each Party shall designate the senior individual responsible for legislative activities along with an alternate to serve on the Legislative Committee. The expenses of each member of the committee will be borne by the party he represents. The Legislative Committee shall select from among its members a chairman and vice-chairman. The'fficers shall be changed annually in rotation among the members of the comnittee. Each year, the vice-chairman of the committee during the preceding year shall succeed to the chairmanship. The Legislative Committee shall meet at regularly scheduled times and at such other times as the chairman may determine. 5-10

tstcoel et c>>.e0 Tltc Ssj TASC TOOCC tOOL C>>ST ALLOCATIOS ISOL>>TCC ON IletlOA CLCCTSIC ecett TOOL SSS A>>elelsTTATlet Ol SCCI>>t te TI 0$ $ IcsTAL coeee ITTc CfteA1les I>>Mntt ecscl c tc.ATIces colecntc ~ Lkeeles e tecletctlso LCCIXATlet Ceee>>ITCC CO IIO TT CC

                                                                                                                              $$1 SenPO      0<<CAATIOeS                                                                                                   4elcln   s Telese>>OSIoe OIICCee   ITTu                                                                                                          ILAeelec>>escoc<<sntt SSSD A400e Ie                                                                                         sse,t C>>eOCTtt eecsesee sclcc  ..Irtt                                                                                                              OCVCLOTICAT  OISI>>I$01TCC
                                                                                                   <<$ $ 2
                         ~ tsteet    etcCI eO'te 2 See~

FI00<<CTIOe TLAI1 SCSC>>MTICC Otslce>>ISCO;eelntc Oes.) Sle S SRAI e Cce$ $ Ttseleeeelee e SCSSTATIO ~ 0'cceentt OISICe SVSC>>eIAntt SSS.e SI ~ . ~ cceeele I cell ce S sceccwlntt SSS,S cceec tt cooesleATIOe

                                                                           '1  IeeTTCC Ses<<$

eeelefceeecc e resteccel>>e 559 SCSC>>eeel1TCC TYPICAL LIIIK TTPE

                                                        $ $ 1.1                                                                                                                                                       FLORIOA ELECTRIC POSIER POOL ORGARIZATION CllART

5C Team Pool Structure 5cl Team Pool Or anization A possible organization structure of a team type Florida Electric Power Pool is shown in the chart (Subsection 5C10). The objective of this type of organization is to plan and operate the pool as a fully intergrated system under the "on-system" concept including a central pool distaching center. The pool staff of paid personnel will consist of adminis-trative, engineering, operations and clerical personnel. In this type of organization, the Executive Committee composed of member companies'ersonnel still control the pool decisions but unlike the link type pool, the paid staff will attend to pool matters on a continuous basis. The details of pool staff and committee f nc.ions will be spelled out in the following Subsections. This type of organization is a major step from our FCG organization to a more formalized organization. present'nformal This is a feasible approach with the understanding that the central pool dispatch system would not come into being until much later. With the additional staff personnel the total cost would be greater than for the link type pool but savings in member company personnel time sh-uld offset this additional cost. 5C2 Team Pool l1embershi Any electric system operating facilities in the State of Florida for service to the public, as defined by the Florida Public Service Commi"sion, "hall be eligible for membership in the Florida Electric Power Pool (FEPP) as a Participant or Associate Participant. The degree of participation would be consistent with the existing Florida Electric Power Coordin-at',ng Group (FCG) objectives. A Participant is any Party to the Florida Electric Power Pool Agreement (a) Which owns and controls the operation of gen-erating units havirg a combined installed capacity of 75MW net, or more; and (b) Whose system is normally operated directly interconnected with one or more Participants . (~) 3)~l~t < .~/~s /ir (~) Pc l<<i'~~ ~A. r /~r 5-13

5C2.2 Associate Partici ant

           .It is recognized that some Parties to, the Florida Electric Power Pool Agreement cannot fully participate under the provisions set forth for a 'Participant.

Therefore, provision is made for such Party to participate as an Associate Participant, it being recognized that its primary participation will be through the Participant to which the Party is connected under the provisions of the appropriate contracts with such Participant. 5C3 Team Pool Executive Committee l The Parties of the FEPP shall establish an Executive Committee to determine policy witn respect to all matters within the scope of the Agreement and to arrange for the administration and implementation of the Agreement. The Executive Committee shall provide for the coordinati'on of the planning, engineering, environmental, public relations, legislative, and operating functions of the members of FEPP in order that, to the greatest extent possible, such coordination will be directed to providing for the electric power needs of the State of Florida (excluding Gul f Power Company) as a whole.

               ~ g Each     Party to the Agreement shall designate a officer, and as an alternate, a second officer senior   authorized to act on his behalf, to serve on the Executive Committee.

The expenses of each member of the Executive Committee shall be borne by the party he represents. At its first meeting, the Executive Committee shall select from among its members a chairman and vice-chairman to serve for one year from such first meeting; and for each year thereafter the chairman shall be the oiember of the Committee who served as vice-chairman during the preceding year, and the vice-chairman shall be a member selected by the Committee. The Committee shall meet at least monthly and at such other times as the Chairman may determine necessary. The Executive Committee shall review and direct the activities of the Planning and Engineering Committee, Operating Commi t tee, Environmental Commi ttee, Publ ic Relations Committee, and Legislative Committee established hereunder. The Executive Committee shall arrange for the services of an Administrative Director of the FEPP and sufficient c'lerical and technical staff to permit to fulfill their responsibilities here- 'hem Changed "Participants" to "Parties" Changed "Participant" to "Party" 5-14

under. The Administrative Director shall act as a liaison between the Executive Committee and the Committees: shall direct the activities of the General Manager of Studies; shall attend committee meetings in a non-voting capacity; shall administer and coordinate the activities of FEPP and carry out such other duties as may be assigned by the Executive Com-mittee. All expenses arising out of the administration and implemen-tation of the Agreement, other than the expenses incurred by

     'each member'r    alternate   member  of the Executive Commi-ttee",

and Engineering Committee, Operating Committee, 'lanning Environmental Committee, Public Relations Committee, and Legislative Committee shall be subject to the approval of the Executive Committee, in accordance with procedures to be established by the Executive Committee, and shall be allocated among the Parties in accordance with the formula for payment which may be in effect at the time such expenses are incurred. The Chairman of the Executive Committee is hereby designated the agent of each of the parties for the purpose of filing changes in, or supplements to, the Agreement with the Federal Power Commission and other regulatory agencies. The Executive'ommittee shall direct the activities of the Task Force on Pool Cost Allocation. This Task Force shall be responsible for determining the initial capacity and energy charges for the Agreement and present these to the Executive Committee for approval. The Task Force shall moniter the initial charges, after approval, on a continu-ous basis'and based on information and recommendations from the Planning and Engineering Committee and the Operating Committee shall submit changes as appropriate to the Executive Committee for approval. 5C4 Team Pool Plannin And En ineerin Committee The Executive Committee of FEPP shall establish a Planning and Engineering Committee from the Participants which will be responsible for the planning and engineering of all pool

   . facilities. The committee will review plans and engineering specifications developed by the underlying subcommittees for implementation by FEPP and will present the committee's recom-mendations to the Executive Committee for approval. The Planning and Engineering Committee shall also direct the activities of the General t1anager of Planning and Engineering.

Each Participant shall designate the senior individual responsible for electric system planning and engineering along with an alternate to serve on the Planning and Engineering Committee. The expenses of each member on the committee will be borne by the party he represents. 5-15

Each 'Associate Participant may designate a representative as a non-voting, member of the Planning and Engineering Committee. The Planning and Engineering Committee shall select from among its members a chairman and vice-chairman. The officers shall be changed annually in rotation among the. members of the committee. Each year, the vice-chairman of the committee during the preceding year shall succeed to the chairmanship. The Planning and Engin-eering Committee shall meet at regularly scheduled times and at sich other times as the chairman may determine. 5C4.1 Ca acit -and Transmission Plannin Subcommittee The Planning and Engineering Committee shall establish a Capacity and Transmission Planning Subcommittee to develop plans for the capacity and transmission additions to FEPP. The subcommittee will be staffed by senior planning personnel responsible for studies and reports along the lines of indi vi dual Participant system expan-sion plans. The subcommittee shall recommend alternative plans to the Planning and Engineering Committee f'r their review and recommendations. The subcommittee will have as permanent chairman the General Manager of Planning and Engineering. The subcommittee will select from among its members a vice-chairman who shall be changed annually in rotation among the members of the subcommittee, The subcommittee shall meet at regularly scheduled times and at such other times as the chairman may determine. 5C4. 2 Com uter Pro ram Oevelo ment Subcommittee The Planning and Engineering Committee shall estab-lish a Computer Program Development Subcommittee to maintain, develop'nd research computer programs to aid in data collection, analysis, data manipulation, and control for pool planning and engineering func-tions. The subcommittee will be staffed with senior personnel with the proper background for this func-tion from the Participants. The subcommittee shall have as permanent chairman the General t1anager of Planning and Engineering. The subcommittee shall select from among its members a vice-chairman who shall be changed annually in 5-16

rotation among the members of the subcommittee. The subcommittee shall meet at regularly scheduled times and at such other times as the'hairman may deter-mine. 5C4.3 Production Plant Desi n Subcormittee The Planning and Engineering Committee shall estab-lish a Production Plant Design Subcommittee to develop acceptable design standards for pool gen-erating facili t;es. The subcommittee will be staffed with senior personnel responsible for power plant design from the Participants. The subcmnittee will have as permanent chairman the General Manager of Planning and Engineering. The subcommittee shall select from among its members a vice-chairman who shall be changed annually in rota-tion among the members of the subcommi ttee. The subcommittee shall meet at regularly scheduled times and at such other times as the chairman may deter-mine. 5C4.4 Transmission and Substation Desi n Subcommittee The Planning and Engineering Committee shall estab-lish a Transmission and Substation Design Subcom-mittee to develop and maintain acceptable design standards for transmission and substation facilities dedicated to pool use. The subcommittee will be staffed with senior engineering personnel respon-sible for transmission and substation design from the Participants. The subcommittee will have as permanent chairman the General I1anager of Planning and Engineering. The subcommittee shall select from among its members a vice-chairman who shall be changed annually in rota-tion among the members of the sub-committee. The subcommittee shall meet at regularly scheduled times and at such other times as the chairman may deter-mine. 5C5 Team Pool 0 eratin Committee The Executive Conmittee of FEPP shall establish an Operating Committee which shall establish and maintain all necessary rules and practices necessary to coordinate the operation of the bulk power supply systems of the pool membership. These rules and practices shall insure reliability of service and economic operation. The Operating Committee shall also direct the activities of the General t1anagcr of Operations. 5-17

Each.Participant shall designate the se..io= in.'.ividual responsible for electric system oper. t'.:.oci al..rc; with an alternate to serve on the Operating Commi.:ee. The . expenses of each committee member will be borne by the party he represents. Each Associate Participant may designate a repre entaI:ive as a non;voting menu'er of the Operating Committee. The Operating Committee shall select from amo g its members a chairman and vice-chairman. The officers shall be changed annually in rotation among the members of the committee. Each year the vice-ch. irman of the committee during the preceeding yea shall succeed to the chairmanship. The Operating Committee shall meet on a monthly basis and at such other 'mes as the chairman may determine. 5C5.1 ~Sstem~oerations Subc omnri.tt ee The Operating Committee shall establish a System Operations Subcommittee. The sub-committee shall be responsible for developing and maintaining a pool operating manual, training of dispatching personnel, control cente coordination and other operating practices as may be necessary. The sub-committee will be staffed by senior personnel responsible for system operation from the Participants.

                  "The    subcommittee will have as permanent chair-men    the General Manager of Operations. The subcommittee will select froni its members a vice-chairman             who shall be changed annually in rotation           among   the subcommittee members. The subcommittee             shall meet at regularly scheduled times and at such other times as the chairman may determine.

5C5. 2 Accountin Subcommittee The Operating Committee shall e tablish an Accounting Subcommittee to develop and maintain practices involved in accounting for the costs involved with the operation of the pool and will be responsible for the cost schedules within the pool agreement. The subcommittee will be staffed by senior personnel with the proper background to carry out this important function from the Participants.

          ~

The subcommittee will have as permanent chair-man the General Manager of Operations. The subcommittee will select from among its members a vice-chairman who shall be changed annually in rotation among the subcommittee members. The subcommittee will meet at regular'y scheduled times and at such other times as the chairman may detexmine.

   ~

Xn~e.~ted ~~~~e "4 I'~ M ~/as /> S 5-18'2ao

Cl 0

Reserve Re uirement Subcommittee The Operating Committee shall establish a Reserve Requirement Subcommittee. The subcommittee shall be responsible for developing and maintaining adequate reserve policies consistent with good reliability and economic operation. The subcommittee. will review current reserve requirements and will deter-mine alternative 'courses of action should a contin-gency condition develop in the pool facilities. The subcommittee will be staffed with senior personnel with the proper, background for this function from the Participants. ,The subcommittee shall have as permanent chairman the General Manager of Operations. The subcommittee will select from among its members a vice-chairman who shall be changed annually in rotation among the subcommittee members. The subcommittee shall meet at regularly scheduled times and at such other times as the chairman may determine. Rela and Control Subcommittee The Operating Committee shall establish a Relay and Control Subcommittee. The subcommittee will be responsible 'for developing and maintaining pro-tection and control schemes for pool facilities. This includes installation, checkout, relay set-tings, relay maintenance, periodic review of coor-dination and other related control and protection functions for pool facilities. The subcommittee will be staffed with senior personnel with the proper background for this function from the Participants. The subcommittee wi'll have as permanent chairman .the General t1anager of Operations. The subcommittee wi 11 select from among its members a vice-chairman who shall be changed annually in rotation among the subcommittee members. The subcommittee shall meet at regularly scheduled times and at such other times as the chairman may determine. Communications Subcommittee The Operating Committee shall establish a Communi-cations Subcommittee. The subcommittee will be responsible for developing and maintianing an adequate and reliable communications system between the Parti c-ipants of the pool. The subcommittee will review and recommend the necessary communication systems 5-19

for good pool operations. The subcommittee will be staffed wi th senior personnel wi th the proper back-ground for this function from the Participants. The subcommittee will have as permanent chairman the General Manager of Operations. The subcommittee will select from among its members a, vice-chairman 'ho shall be changed annually in rotation among the subcommittee members. The subcommittee will meet at regularly scheduled times and at such other times as the chairman may determine. Com uter Coordination Subcommittee The Operating Committee shall establish a Computer Coordination Subcommittee. This subcommittee will be responsible for developing and maintaining co-ordination of all pool computer facilities dedicated to day-to-day operation to insure maximum uti liza-tion of process control computer applications. This would include system control, system data acquisi-tion, data manipulation, operators log, supervisory control and other such functions as may be allocated to the computer. The subcommittee will be staffed with senior personnel with the proper background for this function from the Participants. The subcommittee will have as permanent chairman, the General Manager of Operations. The subcommittee will select from among its members a vice-chairman who shall be changed annually in rotation among the subcommittee members. The subcommittee wi 11 meet at regularly scheduled times and at such other times as the chai rman may determine. Maintenance and Construction Subcommittee The Operating Committee shall establish a Mainten-ance and Construction Subcommittee. The subcom-mittee wi 11 be responsible for developing and maintaining all necessary rules and practices nec-essary to coordinate the maintenance and construc-tion of the generation and-the bulk power supply systems of the pool membership. These rules and practices shall insure reliability of service and economic operation. The subcommittee will be staffed with senior personnel responsible for maintenance and construction from the Participants. The subcommittee will have as permanent chairman the General Manager of Operations. The subcommittee shall select from among its members a vice-chairman who shall be changed annually in rotation among the 5-20

subcommittee members. The subcommittee will meet at regularly scheduled times'nd at such other times as the chairman may determine. 5C6 Team Pool Environmental Committee The Executive Committee of FEPP shall establish an Environ-mental Committee which shall develop and coordinate aspects of environmental protection and enhancement as they pertai n to the planning function of FEPP. Each Party shall designate the senior individual responsible for environmental activities along with an alternate to serve on the Environmental Committee. The expenses of each member on the committee wi ll be borne by the party he represents. The Environmental Committee shall select from among its members a chairman and vice-chairman. The officers shall be changed annually in rotation among the members of the committee. Each year, the vice-chairman of the committee during the preceding year shall succeed to the chairmanship. The Environmental Committee shall meet at regularly scheduled times and at such other times as the chairman may determine. 5C7 Team Pool Public Relations Committee The Executive Committee of FEPP shall establish a Public , Relations Committee which shall develop and coordinate public relation activities as they apply to FEPP as a whole. Each Party shall designate the senior individual responsible for public relation activities along with an alternate to serve on the Public Relations Committee. The expenses of each member of the committee will be borne by the party he represents. The Public Relations Committee shall select from among its members a chairman and vice-chairman. The officers shall be changed annually in rotation among the members of the com-mittee. Each year, the vice-chairman of the committee during the preceding year shall succeed to the chairmanship. The Public Relations Committee shall meet at regularly scheduled times and at such other times as the chairman may determine. 5C8 Team Pool Le islative Committee The Executive Committee of FEPP shall establish a Legislative Committee which shall develop and coordinate legislative activities as they apply to FEPP as a whole. 5-21

Each Party shall'esignate the senior individual responsible for legislative activities along with an alternte to serve on the Legislative Committee. The expenses of each member of the committee will be borne by the party he represents. The Legislative Committee shall select from among its members a chairman 'and vice-chairman. The officers shall be changed annually in rotation among the members of the committee. Each year, the vice-chairman of the committee during the preceding year shall succeed to the chairmanship. The Legislative Committee shall meet at regularly scheduled times and at such other times as the chairman may determine. 5C9 Team Pool Staff 5C9.1 Administrative Director The Administrative Director shall report to the Executive Committee and shall act as liaison between the Executive Committee and the other Committees; shall attend committee meetings in a non-voting capacity; shall administer and coordinate the activities of FEPP; shall directly supervise the General Hanager, Studies and carry out such other duties as may be assigned by the Executive Com-mittee. 5C9.2 General Hana er Plannin and En ineerin The General Hanager; Planning and Engineering shall report to the Planning and Engineering Committee and shall coordinate and develop plans for the install-ation of additional generating capability and trans-mission facilities within the FEPP. The General Hanager, Planning and Engineering shall be the chairman of various subcommittees which wi ll perform the studies necessary for development of the above mentioned plans. The subcommittees will consist of manpower from the Participants repre-sented on the Planning and Engineering Committee and will be activated as necessary by the General Hanager, Planning and Engineering. The General Hanager, Plannning and Engineering shall consult periodically with the General Manager, Operations to insure that any extended operating restrictions are considered in any existing or proposed plans. 5-22

General Hang er, 0 erations The General Manager, Operations shall'report to the , Operating Committee and shall supervise the Managers of Dispatch, Accounting, and Power Supply Coordina-tion. The General Manager, Operations- shall estab-lish such rules and practices as are necessary to coordinate the operation of the bulk power supply systems of the members of the FEPP so as to insure-reliabi lity of service and economic operation. The General Manager, Operations shall consult period-ically with the General Manager, Planning and Engineering and the General Manager,,Studies to insure that any extended operating restrictions or new practices are considered in any existing or proposed plans. The General Manager, Operations shall be the chair-man of various subcommittees which will perform the studies and reviews necessary for the development of the rules and practices necessary to the objectives of good pool operation. The subcommittees will consist of manpower from the Participants repre-. sented on the Operating Committee and will be acti- . vated as necessary by the General Manager, Operations. Mana er Dis atch The Manager, Dispatch shall report to the General Manager, Operations and shall supervise the func-tions allocated to the dispatching of the FEPP resources consistant with the rules and practices. agreed upon by the Participants to maintai n the desired level of reliability and economic operation of Pool resources on a day-to-day basis. The Manager, Dispatch shall consult periodically with the Manager, Accounting and Manager, Power Supply Coordination to insure that the goals of reliable and economic bulk electric service're being maintained within the existing operating constraints for the mutual. benefit of the Partici-pants. Mana er Accountin The Manager, Accounting shall report to the General Manager, Operations and shall supervise the. func-5-23

i tions and personnel assigned to accounting for the costs involved with the operation of the FEPP. These costs would be of both an operating and planning nature. The Manager, Accounting shall be responsible for administration of the cost schedules with the pool agreement. The Manager, Accounting shall be a non-voting member of the Task Force on Pool Cost Allocation and shall act as Secretary responsible for all documentation relating to Cost Allocation and Accounting within the FEPP. Mana er, Power Su 1 Coordination The Manager, Power Supply Coordina ion shall report to the General Manager, Operations and shall super-vise the function and personnel assigned to the activity. The functions would consist of estab-lishing the committment schedules for Generating Units on both a day-to-day basis as well as estab-lishing maintenance schedules for the generating units in the Pool. The Manager, Power Supply and Coordination shall consult periodically with the Manager, Accounting and Manager, Dispatch to insure that the goals of reliable and economic bulk electric service are being maintained within the existing operating constraints for the mutual benefit of the Partici-pants. General Mana er Studies The General Manager, Studies shall report to the Administrative Director and shall supervise the Staff Engineers. The General Manager, Studies is responsible for providing technical assistance to tho subcommittees and arrange for publication of all subcommittee reports and studies. An appropriate Staff Engineer will be assigned to each active subcommittee and will serve as Secretary, Data Coordinator and Report Coordinator of the subcommittee. The General Manager, Studies shall provide technical study support for the General Manager, Operations in analyzing and'eporting sys tern di s turbances, re-viewing existing system operation" for extended restrictions or contingency maintenance and deter-mination of alternative action for these problems. 5-24

The General Manager, Studies shall be responsible for,all FEPP responses,to inquiries, reports, sur-veys, ctc. from Local, State, and Federal Agencies;. Regional and National Reliability Councils; and other organizations.

                                                  ~ .

5-25

PCQITIVC COI>lllTCC TASI IO>CC TOOL COST ALLCCATI>1 a OOLOTCC Of ILO>IOA CLCCltIC >Ovtt ~ CO a ACaal>IST>ATIVC Ol >tCTO> scS SC>, I p>I>>ale>TAL CSHOTTCC 0>PAT>>C ccmTTCC IC >ILATIO>5 COI>aITTCC ~ LMII>C l DICI tt>l>O

                                                                                                                                                                                                                ~                                        LCCI SLAT>VS COI>IITTTC CO a>t TTC C Cc>PAL >Aaactt                                                                             ~

CPC>AL Iaaaactt a CC>ttll Ha>act> 0 ~ t>AT>0>$ STVSICS TLMa I > c ~ ta c I 1 5 t 11 a 0 SP S SC> 5 Ila>lCtt a

                                                                           >Ma    tt                                 >1>lCtt
                       >cora Tl ~ 5                                        0 IPATOI                                  tcv  1 ST>TLT COO>SI ~ AT>01 S">,1                                       SC>, 1 STAT/

PCI>tt>S STSTtac PPATI0>5 CA>ACITT 5 l>A>5>IS>101 SI>COa>aITTCt

                                                                                                                                                                     >Ll>>l>C SISCOIIOTTCC SCS.l                                                                                                                                     SC> J A   CO>TI>C                                                                                                                                             CO~alta>>OC>aal 515"Pt'ITTCC                                                                                                                                              Ot>CLO>>PT SU>CC>>l\TTCC SCS ~ T                                                                                                                                                 SC>.l
                   ~ tlt>>C      >IO>I >tata 5                                                                                                                       ~ >OOOCTIO>  >Llal
                   > 'I CO>'I    lit   C                                                                                                                             OCSI4 5>>CC>>a>litt SP.S
                                                                       ~ TA>r ~ CC> T>CL                                                                                                                                        TNapl55IO>    l sl>>llTIO>

ITTtt CC5IC> SI>CCa>> TlCC SCS 1 COOL> I CAT le> 5 Stl. ~

                            ~

0> I OI I Tl I C SCS.S P~Ttt COO>OI>ATIO> S.>CC>a> Tilt SCS.> SCIO ala I ~ I ta la I t ~ co\ ST >IllI oa Sc>C 0>t TTCC TTtlCAL TEAX TTtE SCS.I PLORIOA ELECTRIC POHER POOL ORGAHIZATIOK CHART

5D ~yy>ical Poplin A reements 5D1 TYPICAL LINK TYPE FLORIDA ELECTRIC POl<ER POOL AGREEtifENT This Agreement made this day of between witnesseth: I. RECITALS The Companies are engaged in supplying electric utility service to the public in the State of Florida. Each Company recognized its responsibility to develop and improve its service in every practicable way. All of the Companies now serve areas that are developing rapidly and each is faced with the problem of providing for the most economical development and expansion of its system in order to meet anticipated growth in future loads. In the past, the Companies have entered into separate, in-dividual contracts with each other and with adjacent electric utility companies for interconnection of transmission facili-ties to assure emergency sources of power and to provide for the purchase, sale and exchange of firm power and surplus energy. Pursuant to these contracts, extensive physical interconnections of their transmission systems have been con-stru'cted arid are now in operation. In recent years, advances in engineering technology and manafacturing techniques have produced high voltage transmission equipment capable of trans-porting greater quantities of electrical energy in an economic-al and practicable manner. Similarly, improvements in the design of generating facilities make possible the construction and operation of large and more efficient generating units. These technic 1 developments now make possible the pooling of 4ulk power generating and transmission facilities and their coordinated operation over wide geographic areas and in cer-tain cases savings will result in the cost of prov'dirsg electric service to the public. Faced with common needs and problems, the Companies have already undertaken joint action in dealing with the problem of continuing to provide economical and reliable service to the public. "s a group, they have jointly sponsored the Florida Electric Power Coordinating Group (FCG). This group operates as an informal pool accomplishing many of the benefits of a formal pool. 5-27

In order to utilize the maximum advartages of recent technical developments, the Compani es be i eve i t des irabl e to under take 1 collaborative effort in the field of the generation and trans-mission of bulk electrical energy. By planning and coordina-ting the power production resources of the Companies with a view to common usefulness, the Companies may be able to attain even greater security and economy of service. Nevertheless, each company will retain its separate corporate indentity and individual freedom in rendering service to the public within its respective area. For these purposes, and with these limitations, this Agreement is accordingly made in order to establish a formal contractual coordination to be known as the "Florida Electric Power Pool" (FEPP). II. UNDERTAKINGS In consideration of the premises and the mutual undertakings and covenants herein made, it is hereby mutually agreed as follows: A. Construction 0 eration and Maintenance Each Company shall. construct, maintain and operate its generating and transmission systems, including inter-connection ties and communication facilities, in a manner consistent with the then current Pool Generation Plan (which shall be a part hereof as Appendix A) and the then current Pool Transmission Plan (which -ha',1 be a part hereof as Appendix B). These Plans, which will provide for coordinated construction and operation of the bulk power facilities of the Companies, wi 11 be added to this Agreement and may be amended from time to time in accord-ance with the procedure set forth in Section F below. B. Benefits Each Company shall share in the benefits', and pay its share of the costs, of coordinated operations under this Agreement in accordance with the then current Pool Alloca-tion Plan (which shall be a part hereof as Appendix C). This plan will be added to this Agreement and may be amended from time to time in accordance with Section F below. C. Additional Facilities Each Company shall construct and pay for all generating stations, transmission lines and other facilities and equipment within its service area, including its portion of interconnection facilities, as may be necessary to attain the full benefits of coordinated operations under this Agreement, and except in any case where otherwise 5-28

0 0

specifically agreed, shall be the sole owner of such facilities, regardless of the extent used or the pur-poses of this Agreement. D. Records and Re orts Each Company shall keep all records that may be necessary for efficient operation under this Agreement. These records shall be kept in such form as .he Executive Committee may designate and shall be available to any other Company on request. Each Company shall make all reports requested by the Executive Committee wi thin the time requested. E. Re ulator Authorization This Agreement is subject to all requisite governmental approvals, and each Company shall diligently seek all necessary regulatory authorization for this Agreement and the performance hereof, including all its plans, appendices, supplements, and amendments. F. Executive Committee Each Company shall appoint one of its officers as its representative on the Executive Committee, and his suc-cessor from time to time as appropriate. A member of the Committee may appoint a substitute to act for him at any meeting of the Committee. The Executive Committee shall be responsible for the study of the coordinated operations of the generation and transmission systems of the members dicess and the formulation, as soon as practicable, of a Pool Generation Plan, a Pool Transmission Plan, and a Pool Allocation Plan (hereinafter referred to collectively as the Plans). After the Plans have been un'animously approved by the Executive Committee, the Plans shall be automatically incorporated into this Agreement as Appen-A,B, and C respectively. Any Plans may be amended arid supplemented in writing from time to time by the unanimous agreement of the Executive Committee and upon ., such changes Appendices A, 8, or C shall be automatically amended to conform to the then current Plans. The signa-tures of committeemen to any Plan, supplement or amend-ment shall be conclusive evidence of approval. The Executive Committee shall meet once each month and at such other times as the Chairman may determine. The Executive Committee may execute such additional appen-dices and adopt such rules and procedures and establish such additional committees as wi',1 assist it in carrying out its responsibilities under this Agreement, which may include an Operating Committee to supervise the day-to-day operations within the framework of the approved Plans. 5-29

 =G. Eff"ct   on Other A reements (1)   Between The   Com anies Other agreements      between two or more companies relating to the interconnection of systems or to the sale and transfer of electrical energy in effect prior to the approval of initial Plans referred to in Section F above shall remain in full force and effect. Each Company covenants, however, that after the initial Plans referred to in Section F above have been approved,         it will not, without the written consent of all the other Companies, enter into any new obligations that would conflict with the obligations under this agreement.          Upon written consent of all members, any agreements, whenever executed, may be incorporated into this Agreement as an Appendix and  administered by the Executive Committee.

(2) Between a Com an and Others Not Parties to This A reement This Agreement shall not affect the obligation of any Company under any contract between that Company and others not parties to this Agreement in effect prior to the approval of the initial Plans referred to in Section F above. Each Company covenants, however, that after the initial Plans referred to in Section F above have been approved it will not, without the written consent of all the other Companies, enter into any obligation with others no parties to this Agreement whose individual system capability is in excess of 50 Nll that would (a) conflict with its obligations under this Agreement or (b) pass benefits received under this Agreement to such other system in a way that would adversely affect the rights of any other Company under this Agreement. H. Term The Effective Date of this Agreement is This Agreement shall terminate on , unless terminated earlier by the consent of all parties to this Agreement or unless extended in accordance with Section I below. I. Extension This Agreement may be extended for year periods by the unanimous written consent of all parties to the Agreement. J. Ri ht to withdraw Any Company may withdraw from this Agreement at any time 5-30

by giving written notice to every other Company at least three years in advance of such .wi thdrawa1. After the formulation of the Plans referred to in Section F above, but prior to their approval, if any Company concludes. that participation in such Plans is not in its best interests, it may withdraw from this Agreement by giving written notice to every other Company at least sixty days in advance of such withdrawal. Any Company that with-draws from this Agreement in accordance with this section filll shall not be liable to any other Company for any damages that it may sustain as a result of such withdrawal provided that the withdrawing Company continues to ful-the obligations incurred by it under this Agreement prior to such notice. K. Waivers Any waiver at any time by a Company of its rights with respect to a default by any other Company under this Agreement shall not be deemed a waiver with respect to any subsequent default. L. Amendment This Agreement may not be changed, amended, or supple-mented except by an instrument in writing signed by all parties to this Agreement or, in case of Appendices, signed by the members of the Executive Committee in accordance with the provisions of Section F above. H. Inde endent Contractors By entering into this Agreement for contractual coordin-ation of power generation and transmission facilities, the Companies shall not become partners, but, as to each other and to third persons, the Companies shall remain independent contractors in all matters relating to this Agreement. This Agreement is not intended to create any liability on the part of any Company to any'one not a party to this Agreement. N. Assi<Sns This Agreement shall enure to the benefit of, be binding upon, the successors and assigns of the respectiv'e parties hereto, but no assignment (other than one made to a corporation simultaneously acquiring substantially all the assets of the assigning party) shall be made by any party hereto wi thout the written consent of the others. 5-31

0. Local Law This contract shall be deemed a contract made under the laws of the State of Fl'orida.

IN WITNESS WHEREOF each of the parties has caused these presents to be signed in its name and on its behalf by its President, attested by its Secretary, both being duly authorized, all as of the day and year first above wri tten. This day of 5-32

TYPICAL LINK TYPE FLORIDA ELECTRIC POWER POOL AGREEMENT APPENDIX A POOL GENERATION PLAN A. PURPOSE The purpose of this Appendix A is to provide a continuing compre-hensive plan for providing adequate generating facilities by the Companies and the operation of such facilities to meet the power supply needs of the Companies operating as a Pool. B. POOL GENERATING FACILITIES Bl. Estimated Re uirements quirementss The Executive Committee shall establish the capacity requirements of the Pool for not less than 15 years in the future. These re-wi ll be based upon recommendations from the Planning and Engineeri ri Committee. B2. Pool Generation Addition Plan The Executive Committee shall establish a Pool Generation Addition Plan based upon recommendations from the Planning and Engineering Committee for not less than 15 years in the future and revise and extend it each year so that there is always a current Pool Genera-tion Addition Plan to. meet the current 15 year forecast of Pool requirements. In adopting such a plan, the Executive Committee shall follow the basic principle that the installation of addi-tional generating capacity should be related to the combi ned loads of the interconnected systems of the Companies. Each additional generating unit shall be, insofar as practicable: (a) The largest size that the existing circumstances can justify, (b) Timed to meet the requirements of the combined loads, and (c) Scheduled, located and owned in accordance wi th two factors: (i) The preferred location of- the owning Company to serve the prospective combined loads, either in an existing or new site, and (ii) Staggering installations so that in the long run no one Company will have an unreasonable capital investment 5-33

made for the benefit of others and no one Company will be dependent on other Compani.es for disproportionate amount of its capacity requirements. The Plan, among other things, shall set forth, for each of the years covered, the Participation Units to be constructed. B3. Notice of'bli ations The Executive Committee shall notify each Company promptly .of the obligations of all Companies under the current Pool Generation Addition Plan. The notice shall: (a) Specify the Participation Unit or Units, if any, each Company is obligated to construct, including (i) approxi-mate size, (ii) location, (iii) date that the Partici-pation Unit or Units shall be scheduled for Commercial Operation, (iv) approximate cost, and (v) expected per-formance, and (b) Inform each Company of its (i) approximate capacity allocation and 'charge in each Participation Unit, and, (ii) the amount of the reserve, upon which the allocation was based. B4. Com letion of Unit Upon receipt of such notice of obligation, the owning Company shall proceed promptly to design and construct the required facilities in accordance with the notice of obligation. The owning Company will immediately notify the Executive Committee of any change in con-struction schedule and when the new generating unit is placed in Commercial Operation. After the unit is placed in Commercial Operation, capacity and energy will be available to participating Companies in accordance with the previously determined .Pool Alloca-tion Plan. Thereafter, appropriate initial payments of Annual Fixed Capital Charges shall be made on an estimated basis unti 1 the capability of the Participation Unit is established. As soon as practicable the owning Company will determine the actual capability of such unit and notify the Executive Committee in writing. The Executive Committee shall then notify each Company of the change, if any, in allocations of its costs and capaci ty, together with such retroactive adjustments as are required for payments made during the interim period. B5. Parti ci at i on Uni t A generating unit installed in accordance with the Pool Generation Addition Plan shall be owned, subject to the lien of any mortgage, by the Company on whose system it is installed and shall be des-ignated as a Participation Unit during any period when portions of 5-34

0 its capacity are allocated to a Company (or Companies) other than the owning Company. A unit shall cease to be a Participation Unit when its entire capacity is allocated by the Executive Committee to satisfy the. reserve requirements of 'the owning Company. 0 erations Cl. The Company owning a Participation Unit shall deliver full contracted capacity and energy, as scheduled by the purchasing Company, subject to the provisions, of Appendix C, at intercon-nection point or points of the owning Company's system. The owning Company shall be compensated for losses, as provided in Appendix B. The owning Company shall: (a) Operate and maintain the Participation Unit at all times in accordance with good utility operating practice, and (b) Cooperate, when practicable, with Companies participating in such unit with respect to the operation and scheduling of maintenance on the unit, provided, however, that the Company owning the unit shall have the final responsi-bility for and control over its operation and mainten-ance. C2. The Companies participating in a Participation Unit shall furnish the owning Company a schedule of a capacity to be made available and energy to be delivered in such manner as may be agreed upon from time to time, except that such schedules may be changed under procedures established by the Operating Committee. C3. The owning Company may utilize any unscheduled capacity in the Participation Unit until such allocated capacity is called for by the participating Companies. C4, Capacity and energy generated by the owning Company may be produced by the recognized method of incremental loading within. such procedures as established by the Operating Committee. C5. It is the intent of this Agreement that no Company shall be obligated to deliver ki lovars for the benefit of another Company; also that no Company shall be obligated to receive ki lovars when to do so might intoduce objectionable operating conditions on its system. The Operating Committee shall be responsible for estab-lishing and maintaining current operating procedures and schedules in respect to carrying ki lovar loads by one system for the others in order to secure adequate service and economical use of the facilities in carrying ki lovar loads. In discharging such duties, the Operating Committee shall recognize that in the transmission or delivery of power and energy hereunder, the carrying of ki lovar 'loads by any of the members of the Pool, in harmony with sound 5-35

engineering. principles of transmission operation with the systems interconnected, is subject to numerous variables contingent upon loading and operating conditions. existing simultaneously on the systems of the Companies. The current operating procedures and schedules for kilovar exchange shall be in accord with such prin-ciples and shall require each of the Companies to carry ki lovar loads at such times and in such amounts as will be equitable to all Companies. Pool Reserve Ca acit Dl. Each Company may utilize reserve capacity of the Pool for scheduled maintenance outages that create a deficiency of reserves within the Company. Such outages shall be scheduled in accordance with provisions of Section I of this Appendix A. The Pool obliga-tion to supply such reserve to a Company shall be divided equitably among the other Companies in accordance with criteria established by the Operating Committee. D2. Each Company may utilize any available reserve capacity of the Pool in an emergency. The Pool obligation to supply such reserve to a Company suffering an emergency shall be divided equitably among the other Companies in accordance with criteria established by the Operating Committee. If more than one Company is suffering an emergency, the available Pool reserve capacity will be divided among such Companies in accordance with such criteria. If any Company (or Companies) suffers an emergency (or emergencies) of such magnitude or duration that service reliability of the Pool as a whole, or of any of the Companies, is placed in jepoardy and relief connot be obtained from within the Pool, then each Company suffering the emergency shall act immediately to restore service reliability by, directly or indirectly, arranging for additional capacity from sources outside the Pool. When conditions are such that load must be reduced, reduction shall be made on the system or systems) of the Company ( or Companies) suffering the emergency or emergencies).

03. Payment for reserve capacity supplied beyond a 24-hour period by one company for another Company shall be as set forth in Appendix C. Energy associated with pool reserve capacity supplied by one Company for another Company at any time shall be paid for by the receiving Company at the rates set forth in Appendix C.

S innin Reserve Spinning Reserve shall be allocated among the Companies in an equitable manner. New or revised plans or schedules for Spinning Reserve allocation shall be prepared as required in recognition of changed condi ti ons in the Pool. The Spinning Reserve plan shall provide for adequate protection to service reliability. To this end, full recognition shall be given to existing emergency agree-ments between Companies and others not members of the Pool and to 5-36

I any future emergency arrangements that may develop between Com-panies and other companies or pools. The plan shall authorize deviations under emergency or unusual conditions, providing said deviations are within limitations set by the Executive Committee. Any Company may, for reasons of economy or for other reasons, arrange for another Company or a company not a Pool member to provide all or any part of such Company's Spinning Reserve quota, provided that the Spinning Reserve so arranged for will satisfy the Pool's Spinning Reserve requirements, as determined by the Opera-ting Committee, as if it were available from such Company's own capacity resources. Payment for Spinning Reserve capacity supplied by one Company for another. shall be as set forth in Appendix C. Econom Interchan e Fl. It is recognized that from time to time each of the Companies will have electric energy available f'rom surplus capacity on its own system and from sources outside its own system, hereinafter called Economy Energy, and that such Economy Energy can be supplied to other Companies at a cost that will result in operating savings, To promote the economy of electric power supply and to achieve efficient utilization of generati ng capacity, any Company, when-ever it in its own judgment determines Economy Energy is available, shall offer Economy Energy to one oi more of the other Companies Promptly upon receipt of any such offer, any Company which can mak~ use of Economy Energy shall notify the offering Company of the extent to which it desires to use such Economy Energy, and schedules providing the periods and extent of use shall be mutually agreed upon. F2. Economy Energy supplied hereunder shall be considered as displacing electric energy that otherwise would have been generated by the receiving Company at its own electric generating stations or any electric energy received fry sources subject to displacement as agreed to by the Companies. It may be interrupted at any time. Economy Energy shal'] be settled for at rates which shall be pre-dicated upon the principle that savings resulting from the use of Economy Energy shall be divided between the Companies as equally as is practicable. Prior to any transaction involving the sale and purchase of Economy Energy, authorized representatives of the Companies shall determine and agree upon the rate applicable to such transaction. Nondis lacement Ener Gl. It is further recognized that from time to time occasions will arise when transactions under Section F above will be impractic-able, but at the same time one of the companies may have electric energy (hereinaf ter ca 1 1 ed Nondi spl acement Energy) whi ch i t is willing to make available from surplus capacity on its own system and/or from sources outside its own system that can be utilized advantageously for specified intervals by the other Companies. It 5-37

0 0

shall be the responsibility of the Company desiring the receipt of Nondisplacement Energy to initiate the receipt and delivery of such energy. The Company desiring such receipt of energy shall inform the other Company of the extent to which 'it desires to. use Non-.. displacement Energy, and, whenever in its own judgment such'ther Company determines that it has Nondisplacement Energy avaiTable-,,"...'"-;-',.-:. schedules providing the periods and extent of use shall be-mu(ually'::,,~..:-:;- agreed upon. G2. Nondisplacement Energy delivered hereunder shall be settled for by either of the following methods, at the option of the delivering Company: (a) At a rate per kilowatt-hour equal to the calculated average production cost of the highest cost generating units being used to produce the energy required to make the delivery - such cost being as of the delivery points, plus costs incurred in starting additional units if same are required to make the delivery, plus 10% of the above kilowatt-hour and starting costs; or (b) By the return of equivalent energy. . II. ~Oi hi The dispatching or system operating groups will each continue to operate their respective systems in accordance with sound operating practices providing for maximum continuity of service and economy of operation. Each group will, however, recognize the importance of service requirements of the Pool as a whole and will cooperate on a Pool basis voluntarily and also in accordance with instruc-tions issued from time to time by the Operating Committee. I. Coordinated Maintenance and Scheduled Unit Outa es For the most efficient operation under this Agreement maintenance and other scheduled outages for generating units of the Companies shall be coordinated to the fullest extent practical. To accom-plish this it shall be the duty of the Operating Committee to prepare, not later than October 1 of each year, an annual schedule of maintenance outages for -the generaring units of the Companies for the next year and a tentative schedule for the succeeding four years using the principle that adequate reserves will be maintained at all times. When prepared, such schedules shall be adhered to by all Companies except as altered by the Operating Committee for emergency outages of equipment or other reason justifiable to the Operating Committee. 5-38

J. Effective Date For purposes of Section G of the Florida Electric Power Pool Agree-ment dated , the date of the approval of this Appendix is It is intended that the pro-visions of'his Appendix shall be placed in effect as soon as practical, and .the determination of such effective dates shall be made by the Executive Committee, ~rovided, however, that all pro-visions shall be placed in effect not later than (Note: Refer to Appendix E for defined terms)

TYPICAL LINK TYPE FLORIDA ELECTRIC POWER POOL AGREEMENT APPENDIX 8 POOL TRANSftISSION PLAN

 ~Pur ose The Purpose  of this Appendix 8 is to.provide a continuing compre-.

hensive plan for providing and operating adequate transmission facilities, interconnection ties, communication facilities and other facilities necessary or desirable to enable the Companies to meet their obligations and share in the benefits of operations under Appendix A. Pool Transmission Facilities Bl. Estimated Re uirements The Executive Committee shall establish the requirements for trans-mission facilities, interconnection ties, communication facilities and other facilities required for successful operation of the Pool These requirements will be based on recommendations of the Planning and Engineering Committee.

82. Pool Transmission Addition Plan The Executive Committee shall establish a Pool Transmission Addi-tion Plan based upon recommendations of the Planning and Engin-eering Committee for not less than 15 years in the future and revise and extend it each year so that there is always a current Pool Transmission Addition Plan to meet the current 15 year fore-cast of Pool requirements.

In adopting such plan the Executive Committee shall follow the basic principle that facilities will be installed at the locations and at the times that will best enable the Companies to meet, their obligations and share equitably in the Pool benefits. The Execu-tive'Committee shall also recognize as basic the principle that any 'Company which builds a transmission facility classified either wholly or partially as a Pool Transmission Facility shall 'be reim-bursed for a fair proportion of the Annual Fixed Capital Charges and operation and maintenance expenses of that facility by other Companies until such time as the Executive Committee determines that the owning Company would otherwise have required the same equivalent faci 1 i ty. Pool Transmi ssi on Facilities Pool Transmission Facilities are those transmission facilities 5-40

r designated as such by the Executive Committee. The Executive Committee may designate as Pool Transmission Facilities intercon-nections with companies outside the Pool constructed for the benefit of the Pool. The owning Company may make use of a Pool Transmission Facility for other than Pool transactions with prior approval of the Executive Committee. Should the owning Company make use of such facility for such pur-pose, the Executive Committee shall establish what part, if any, should no longer be classified as a Pool Transmission Facility. Additional Pool Transmission Facilities shall be provided by each Company in accordance with the then current Pool Transmission Addition Plan and notice of obligations shall be given to each Company by the Executive Committee, pursuant to Section 0 below. The Pool Transmission Facilities are to be owned, subject to the lien of any mortgage, by the Companies in whose systems they are installed. Annual Fixed Capital Charges (Supplement 1, Appendix C) plus oper-ation and maintenance expenses associated with Pool Transmission Facilities, or portions thereof, shall be allocated among the Companies as provided for in Appendix C. D. Notice of Obli ations Dl. The Executive Committee shall notify the Companies of their respective obligations under the Pool Transmission Addition Plan. The notices to the Companies shall be made at such times as: (a) the Pool Transmission Addition Plan shall have been adopted or revised, and (b) changes in Pool Transmission Facilities previously designated become effective. D2. Notices pursuant to paragraph (a) of Section Dl shall specify the lines and other facilities, if any, including existing facili-ties, which each Company is obligated to construct and/or maintain and operate as designated Pool Transmission Facilities. 02.1 For facilities to be constructed the notice shall speci,fy: (a) Location (b) Design voltage, transformer capacity, line capacity, metering, and other important design considerations, 5-41

(c) Date to be available for service, (d) Estimated cost, (e) The estimated portion or proportion of each facility which will be designated as a Pool Transmission Facility, and, (f) The estimated cost to each Company of Annual Fixed Capital Charges and expenses of that portion or proportion of the Transmission facility designated as a Pool Transmission Faci 1 i ty. D2.2 For existin facilities, the notice shall specify: (a) The portion or proportion of each facility des-ignated as a Pool Transmission Facility, and (b) The cost to each Company. of the Annual Fixed Capital Charges and expenses of the allocable portion or proportion of each facility as determined by application of the provisions of Appendix C. D3. Notices pursuant to paragraph (b) in Section Dl shall specify: (a) The portion or proportion of each facility designated as a Pool Transmission Facility, and (b) The participation by each Company in the Annual Fixed Capital Charges and expenses of the allocable portion or proportion of each facility as determined by appli-cation of the provisions of Appendix C. E. Com letion of Facilities Upon receipt of such notice of obligation, the owning Company (or Companies) shall proceed promptly to design and construct the required facilities in accordance with the notice of obligation. The owning Company (or Companies) will immediately notify the Executive Committee of any changes in construction schedule and when Pool Transmission Facilities are placed in Commercial Opera-tion. When such facility is placed in Commercial Operation, it shall be available for Pool service. Thereafter, appropriate initial payments of Annual Fixed Capital Charges shall be made on an estimated basis until the actual cost data is available. The owning Company (or Companies) shall prepare a cost completion report, together with a calculation of the Annual Fixed Capital charges which are applicable thereto, and shall file this information with the Executive Committee as soon as practicable. 5-42

After the Executive Committee approves the calculation of the Annual Fixed Capital Charges, it shall allocate them among the Companies in accordance with Appendix C, together with such retro-active adjustments as are required for. payments. made during the interim period.- 0 eration and Maintenance Each Company shall operate and maintain the Pool Transmission Facilities, .and other lines, interconnection ties, and communi-ication facilities in its system, in a manner consistent with good utility operating practice. Separate records will be kept by each Company of operating and maintenance expenses of individual Pool Transmission Facilities in its system. These records shall be submitted to the Executive Committee to be used in determining payments to be made by the Companies. Maintenance and other scheduled outages of Pool Transmission Facil-ities shall be specified by the Operating Committee upon applica-tion of the owning Company., Notwithstanding other provisions, the Company owning such faci li-ties shall have the'fi'nal responsibility for and control'ver the operation and maintenance. Sharin of Costs Each Company that owns Pool Transmission facilities shall be reim-bursed in accordance with Appendix C for a proportionate part of the Annual Fixed Capital- Charges and operating and maintenance expenses on the portions or proportions of those facilities which are designated as Pool Transmission Facilities. In determining each Company's part of such Annual Fixed Capital Charges, operation expenses and maintenance expenses, the owning Company shall bear its pro'portionate part. Ca acit and Ener Loss Com ensation The losses associated with the transmission of capacity and energy either within the system of the sending Company or in the system of an intermediate Company, will be borne by the receiving Company. Compensation for such losses will be accomplished by scheduling coincidental delivery of loss compensation.

I. Effective Date For purposes of Section G of the -Florida Electric Power Pool Agree-ment dated , the date of the approval of this Appendix is It is intended that the provisions of this Appendix shall be placed in effect as soon as practical, and the determination of such effective dates shall be made by the Executive Committee, ~rovided, however that all provisions shall be placed in effect not later than (Note: Refer to Appendix E for defined terms) 5-44

TYPICAL LINK TYPE FLORIDA ELECTRIC POWER POOL AGREEMENT APPENDIX C POOL ALLOCATION PLAN A. ~Per ose The purpose of this Appendix C is to set forth the allocation of costs of operation under the Pool Generation Plan, Appendix A, and the Pool Transmission Plan, Appendix B, i'n order that the Companies will equitably share the benefits from the Pool. B. APPENDIX A Allocations Bl. Ca acit Allocation Bl.l Capacity allocation to each Company in all Participation Units shall be on an equitable basis of reserve as determined by the Executive Committee. 81.2 If, at any time, the Executive Committee ascertains tha~ the then current Pool Generation Addition Plan has provided or will provide reserve capacity substantially above or below the actual requirements of the Pool, it may adjust capacity alloca-tions in Participation Units and/or authorize one or more Companies to make arrangements with companies not members of the Florida Electric Power Pool or with other power pools for the purchase or sale of capacity. The expenses and benefits of such transactions shall be shared equitably among the Companies.. Bl.3 If, at any time, the Executive Committee ascertains that capacity allocation among the. Companies is inequitable, in cases such as a Company's errors in load forecoasts, capability forecasts, or any similar reasons, the Executive Committee may make such adjustments, including retroactive allocations (not to exceed 24 months) and/or payments, as it deems equitable. Bl.4 If the net capability of a Participation Unit is reduced below the scheduled allocation of th'e participating Companies because of failure of facilities or other valid reasons, the reduced output shall be prorated among the participating Companies on the ratio of each Company's allocated partici-pation to the sum of such allocations. B1.5 During light load periods on the system of the owning Company when the Participation Unit is loaded at or near its minimum load, each participating Company shall, if requested 5-45 J ' ~

to do so by the owning Company, schedule not less than its pro rata share of the minimum load of such Participation Unit. At the request of a parPicipating Company, the owning Company may at its discretion reduce or relieve the participating Company'or Companies) of this obligation at any time. B2. Partici ation Unit Ca aci t Char es B2.1 The purchasing Company shall pay the owning Company- at a rate per kilowatt equal to the weighted average of the Annual Fixed Capital Charges per kilowatt on the most recent partici-pating steam electric generating unit previously installed on each of the-Companies systems except that prior to the initial installation of a Participation Unit on the system of a Company, the unit of such Company to be used in this calculation shall be designated by the Executive Committee. The formula to be used for this computation is shown in Supplement 1'f this Appendix C. In calculating such charges of each such unit the total investment of such unit shall include all charges made to the present Federal Power Commission (FPC) capital accounts 310, 311, 312, 314,315, and 316 for steam stations, or similar FPC accounts for nuclear stations. In addition to the above accounts, the investment shall include the cost of the main power transformers and associated equipment necessary to deliver the unit's output to the high voltage bus (FPC capital account 353), The charges made to these accounts shall inclu".'.e general overhead and administrative costs, any local charges made in addition.to the engineering contractor or sub-contractors charges on the project, interest during construction and all other charges properly classified to the above FPC accounts. To obtain the corrected total cost of a Participation Unit, adjustments shall be made, if required, to reflect the unit's proportionate share of expenditures made for more than one unit at that site. The costs associated with land, land rights, landscaping, site preparation, roads, administration building, including laboratory, shops and equipment, railroad if facilities, cooling pond ( built for this purpose), coal conveying equipment, ash handling equipment, 'or any other items common to more than one unit shall be adjusted in the ratio that the capability of the unit bears to the total capability for which the investment was made. The computation of the capacity charges shall be subject to review and approval of the Executive Committee and final determination shall include considerations which wi 11 equit-ably share with all participating Companies the benefits from the Pool. 82.2 Capacity charges shall become effective on the date of Commercial Operation of the Participation Unit. B2.3 Prior to the initial installation of a Participation Unit on the system of a Company, capacity sold by such Company 5-46

to other Companies pursuant to the Executive Committee's plan for equitable reserve shall be from the steam electric unit installed on the selling Company's system designated as a Participation Unit by the Executive Committee. In applying the formula for determining the rate for the capacity allocated. (Supplement 1 to Appendix C) actual costs of the unit, or units, from which capacity is then being sold shall be used.

83. Partici ation Unit Ener Allocation Each Company shall be entitled to the engery: associated with its capacity allocation from each Participation Unit, subject to transmission loss adjustments, if any.

84. Partici ation Unit Ener Char es The purchasing Company shall pay the owning Company a rate per equal to the average fuel cost per net kilowatt- 'ilowatt-hour hour of all energy produced by the Participation. Unit during the month excluding energy produced when the Participation Unit is operated with one or more heaters cut out of service in order to obtain capacity for the owning Company. This shall be determined by use of FPC Account 501.

85. Reserve Ca acit and Ener Char es From Other Than Partici ation Units 55.1 ~Ca acit The charge for reserve capacity between the Companies shall be cents per kilowatt for each calendar day or portion thereof, plus additional "out of pocket" expenses, if any, "out of except fuel costs. The determination of additional pocket" costs shall be the sole prerogative of the seller; however, the Operating Committee will periodically review the transactions and endeavor to standardize billing procedures.

B5.2 Fnhrqn Energy supplied with reserve capacity will be settled for at a rate per kilowatt-hour equal to the calculated average fuel cost of the highest cost generating units being used to pro-duce the energy required to make the delivery, such cost being as of the delivery points taking into account electrical losses incur red from the source of such energy to the delivery points, plus ten percent of the above kilowatt-hour cost.

86. Extra Tax Char es or Credits To the capacity and energy charges set forth in Sections 82, 84, and 85 above will be added or subtracted, where applic-able, an extra charge or credit to compensate for any taxes levied directly or indirectly on the capacity or energy con-5-47

tracted for, where such taxes are based upon capacity or energy allocated in Sections Bl; B3, and B5 above or upon monetary receipts associated therewith, except to the extent that such extra charges or credits are included in Participa-tion Unit Annual Fixed Capital Charge as determined in Supple-ment 1 to this Appendix C. llithout in any way l.imiting the foregoing,-it is further agreed that such taxes shall include but not be limited to the following taxes: (a) Gross Receipts Taxes, (b) Sales Tax on Energy, (c) Sales Tax or Use Tax on Fuel, (d) Generating Tax. The owning Company shall notify the purchasing Companies of any such new tax or of any increase or decrease in such taxes. The word "taxes" as used in this paragraph shall not be con-strued to mean Federal or State taxes on net income. B7. 0 eratin and Maintenance Ex enses for Partici ation Units B7.1 From a Plant Containin Partici ation Units Onl The purchasing Company shall pay the. owning Company monthly its pro rata portion, based on its percentage of capacity participation, of the operating and maintenance expenses as listed in the following present FPC Accounts for fossil fuel fired stations or their equivalent for nuclear stations: 500, 502, 503, 504, 505, 506, 507, 510, 511, 512, 513, and 514. B7.2 From a Plant in Which There Are Other Units In Addition to The Partici ation Unit or Units: (a) The purchasing Company shall pay the owning Company monthly its pro rata portion, based on its= percentage of capacity participation, and mainten-ance expenses for the Participation Unit (or Units) as listed in the FPC Accounts ip Section B7.1 above. The owning Company shall set up appropriate account-ing procedures so that maintenance expenses for the Participation Unit (or Units)= can be maintained. To the extent that unit maintenance costs cannot be identified, estimates approved by the Executive Committee shall be used. (b) The purchasing Company shall pay the owning Company monthly the operating expenses for the plant as listed in the FPC Accounts in Section B7.1 above multiplied by its percentage of capacity participa-tion and further multiplied by the ratio of the number of Participation Units in the plant to the 5-48

total number of active units in the plant. 'ctive units shall mean any unit operating during any part of six or more days during the month except that a normally active unit out of service for maintenance or repair will be considered, an active unit. 87.3 If retroactive credits occur in connection with the expense charges provided for in Section 87.1 and 87.2, the Executive Committee may provide for equitable retroactive . adjustment of these charges. 'C. APPENDIX 8 Allocations Cl. Annual Fixed Ca ital Char es and Ex enses A common formula (Appendix 'C Supplement 1) shall be used by all Companies in determining the Annual Fixed Capital Charges expressed as a decimal fraction of 'investment for Pool Trans-mission Facilities installed in a Company's system. This decimal. fraction when multiplied by the cost of Pool Trans-mission Facilities installed in a Company's system determines the Annual Fixed Capital Charges. In calculating such charges for Pool Transmission Facilities the total investment in such facilities shall include all charges made to the present FPC capital accounts, 350, 351, 352, 353, 354, 355, 356, 357, 358 and 359 and land rights and other Nondepreciable Investments shall be included. Operation and maintenance expenses applic-able to Pool Transmission Facilities shall be those included in the present FPC accounts 560, 561, 562, 563, 564, 565, 566, 567, 568, 569, 570, 571, 572, and 573. To the extent that costs cannot be identified, estimates approved by the Executive Committee may be used. The charges and expenses so determined shall be subject to review and approval by the Executive Committee. C2. Allocation of Annual Fixed Ca ital Char es and 0 eratin and Maintenance Ex enses The Annual Fixe) Capital Charges and the operation 'and mainten-ance expenses for Pool'ransmission Facilities shall be distri-buted among the Companies in the ratio of each Company's estimated peak net territorial load, plus sales to non-member companies, to the sum of all the Companies estimated peak net territorial loads, plus firm sales to non-member companies and shall be subject to review from time to time by the Executive Committee. C3. Retroactive Credits If retroactive credits occur in connection with the expense charges provided for in Section Cl. or C2., the Executive Committee may provide for equitable retroacti ve adjustment of these .charges. 5 49

0 0

Force Ma cure In the event that a Participation Unit or a Pool Transmission Facility is damaged, destroyed or rendered inoperable by explosion, fire, riot, strike, act of negligence, act of sabotage, act of war, act of God or other cause beyond the control of the owning Company, the participating Companies shall continue to pay to the owning Company their respective shares of Annual Fixed Capital Charges on the inoperable Participation Unit or Pool Transmission Facility to= the same extent as if the Unit or Facility had remained in opera-tion, subject to equitable adjustment of such charges by the Execu-tive Committee to reflect any resulting reduction in the costs of the owning Company, but the participating Companies shall not be liable for Operating and Maintenance Expenses of the inoperable Unit or Facility, or the cost of repairing or restoring same. The Executive Committee shall determine whether any outage is of suf-ficient magnitude and duration to constitute a Force Majeure pur-suant to this section. Federal Tax Ad 'ustment If at any time in the future the Federal Income, excess profits or other Federal tax laws change in a manner that iIIould adversely affect the relative economic interest of any party to this Agreement, the Executive Committee shall review those provisions of this Agreement relating to costs to be paid by each party hereto and make such adjustments that will protect the interest of the respective Com-panies hereto so far as that may be possible. Effective Date For purposes of Section G of the Florida Electric Power Pool Agree-ment dated the date of the approval of this It is intended that the provisionsAppendix is of this Appendix shall be placed in effect as soon as practical, and the determination of such effective dates shall be made by the Executive Committee, provided, however, that all provisions shall be placed in effect not later than (Note: Refer to Appendix E for defined terms) 5-50

TYPICAL LINK TYPE FLORIDA ELECTRIC POWER POOL AGREEMENT APPENDIX C SUPPLEMENT 1 POOL ALLOCATION PLAN FORMULAE A. PARTICIPATION UNIT CAPACITY CHARGE The Annual Fixed Capital Charge in dollars per kilowatt-year, "FC", for participation capacity is determined by the following formula: D P +ND R FC= ~ i 1 1 1 i=1 Where the subscript "i" refers to the ownership of the unit and "k" is the number of owners in the Pool. P = Investment (original cost), exclusive of non-depreciable invest-ment, in the most recent steam-electric participation unit previously installed on the company's system (or prior to the initial installation of a participation unit, the unit designa-ted by the Executive Committee). '

        =  Non-depreciable investment in the same generating          unit for which "P" is the depreciable investment.

t M = Net capability of the unit in kilowatts. 0 and ND = Annual Fixed Capital Charges on depreciable and non-depreciable property respectively, expressed as decimal fractions of investment in such property. They are determined by the formulae of Section B below. B. ANNUAL FIXED CAPITAL CHARGES ON DEPRECIABLE AND NON-DEPRECIABLE PROPERTY APPLICABLF TO BOTH GENERATION AND TRANSMISSION FACILITIES The Annual Fixed Capital Charge on property expressed as a decimal fraction of investment in such property is: D or ND = I + F + T where I = The annual amount for return on and amortization of the invest-ment. It is the capital recovery factor obtainable from standard interest tables for the applicable rate of return "r" and amortization period "n". The life "n" of non-depreciable property is infinity and its capital recovery factor "I" is equal to "r". The Executive Committee may direct that. specific 5-51

additional factors to compensate for interim replacements of major components be included in the computation of "I". h F = Composite Income tax applicable to return on investment. F= H (I-A) ~r-BG 1-H r in which Capital recovery factor as defined above. Annual straight-line depreciation expressed as a decimal fraction of original investment. It is 1/n where "n" is the amortization period of the investment in depreciable property. It is zero (0) for non-depreciable property. Rate of Return. Ratio of debt to total capitalization. Interest rate on debt. f + s - fs if State income tax is deductible in computing Federal income tax, but Federal income tax is not deduct-ible in computing state income tax, or H'= f + s - 2fs if Federal income tax is also deductible in com-1-fs puting State income tax. In these formulae f == Federal income tax rate s State income tax rate Annual taxes (other than income) and insurance when applicable. T= K+X where K = Property taxes as a decimal fraction of original investment. Other taxes or insurance which the Executive Committee approves as applicable to original investment. 5-52

TYPICAL LINK TYPE

                    'FLORIDA ELECTRIC   POWER POOL AGREEMENT APPENDIX  D POOL   ADMINISTRATIVE AND GENERAL PROCEDURES A.  ~Pur'se The purpose     of this Appendix   D is to provide for general adminis-trative   procedures    for Pool operation under the Agreement.

B. Procedures Bl. The Executive Committee at its option may establish a separate Pool administrative organization or may select from time to time one Company to serve as a clearing house for monthly= Pool trans-actions. These monthly transactions will specify payments, if any, due owning Companies by participating Companies for: (a) Capacity charges, (b) Energy charges, (c) Participation Units operating and maintenance expenses, (d) Pool Transmission Facilities Annual Fixed Capital Charges, (e) Pool Transmission Facilities operating and maintenance expenses, (f) Compensation, where applicable, for taxes, (g) Other services furnished under the terms of the Appendices. Each Company shall be sent a copy of the balancing of Pool trans-actions each month, together with a statement of payments, due by each Company to any other Company (or Companies). if any, Such payments shall be made directly between Companies. B2. The Companies shall render, on or about the tenth day .of each month, bills for the amounts due under the terms of this Agreement for the preceding calendar months All bills shall be due and payable within ten days after receipt. Interest on unpaid amounts shall accure at the rate of ten per cent per annum from date due until the date upon which payment is made. The calendar month shall'e the standard monthly period for the purpose of settlements under this Agreement. Where exact figures are not known by the time for the bi ll, estimates may be used subject to readjustment. Where any of the provisions of this Section B2. are impractical, the Executive Committee shall provide alternate billing procedures. 5-53

t O B3. The Executive Committee hereby establishes a,Planning and Engineering Committee. Each'ember Company appointed shall des-ignate the senior individual responsible for electric system plan-ning and engineering along with an'alternate to serve on the Plan-ning and Engineering Committee. The Planning Committee shall be responsible to the Executive Committee for projecting Pool re-sources and requirements for at least 15 years into the future, using data provided by the Companies, and shall submit such studies to the Executive Committee as directed and shall perform such other duties as the Executive Committee may direct. B4. The Executive Committee'hereby establishes an Operating Com-mittee. Each member Company appointed shall designate the senior individual responsible for electric system- operation along with an alternate to serve on the Operating Committee. The Operating Committee shall be responsible to the Executive Committee for performing such duties and functions as may be required in the day-to-day operation of the Pool, including but not limited to: (a) The preparation of such operating: procedures as may be required for Pool operation. (b) All matters pertaining to operating data and records applying to Pool operation. (c) All matters pertaining to the control of frequency, energy flow, ki lovar flow, voltage and other similar matters bearing upon satisfactory Pool operation of the Companies, (d) All matters pertaining to maintaining the proper level of operating reserve capacity in the Pool, (e) "All 'matters pertaining to the coordination of main-tenance of the generating capacity and transmission facilities of the Companies'. B5. The Executive Committee shall furnish the Companies a record of all official actions taken by the Committee. B6. Should the Executive Committee establish a separate Pool administrative organization, as provided in Section Bl. above, the expenses of such organization shall be prorated among the Companies on the basis of allocation of Pool transmission charges as provided in Appendix C. 5-54

C. Effective Date For purposes ment dated is

               ~

of Section G of the Florida Electric Power Pool Agree-

                                  , the date of the approval of this Appendix It is intended that the provisions of this Appendix shall be placed in effect as soon as practical, and the determination of such effective dates shall be'ade by the Execu-tive Comnittee, provided, honever, that all provisions shall be placed in effect not later than (Note:   Refer to Appendix   E  for defined terms.)

5-55

TYPICAL LINK TYPE FLORIDA ELECTRIC POWER POOL AGREEMENT I APPENDIX E DEFINED TERMS A. ~Pur ose The purpose of this Appendix E is to define certain words and phrases used in the Appendi ces to the Florida El ectri c Power Pool Agreement. B. Definitions Bl. "Ad'usted S stem Ca abilit " of a Company is the sum of the net generating capability installed on its system (a Participation Unit shall be included 100K in the capabili.ty of the owning Com-pany), plus firm capability (other than from Participation Units) purchased from others where the reserve responsibility is that of the purchaser. sibilityty

82. "Ad usted S stem Load" of a Company is its peak net terri-torial load for an ending clock-hour, adjusted in three ways:

(a) By adding firm power sales to other, companies (other than from Participation Units) when the reserve respon-is that of the seller; (b) By subtracting firm power purchases from other com-panies (other than from Participation Units) when the reserve responsibility is that of the seller; and BB. ~l" (c) By and Amendments subtracting Interruptible i<<h F1 as id Bi 1 supplemented, Power Sales. and all of 1 thereto, together with their attached Exhibits AB d the Appendices and d Schedules. d Bd.'"A1FFFC~i1Ch" particular item or unit of investment h<< that accrue each year whether or not the equipment is in operation. Such charges shall include depreciation, return on investment, income taxes, ad valorem taxes, insurance, and all other applicable fixed charges expressed as decimal fraction of investment. They do not include operation and maintenace expenses. B5. "Assi ned Ca acit " of a Company is that Company's Adjusted System Capability plus capacity allocations, if any, assigned to it from Participation Units installed on other Companies'ystems, and 5-56

0 minus capacity allocations, if any, to other Companies from Partici-pation Units'installed on its system. B6. "Commercial 0 eration" is the time when a facility (Partici-pation Unit., Pool Transmission Facility, etc.) is declared by the owning Company to be ready for'se in accordance with. the needs. of the Companies.

               " is            which is B7.   ~Com an        a company             a party to the Agreement.

B8. "E uitable Reserve", is the excess of Assigned Capacity over Adjusted System Load, expressed as a percent of Adjusted System, Load, that each Company is expected to have at the time of its Adjusted System Load and such percentage shall be as determined by the Executive Committee. B9. "Gas Turbine Generator Unit Ca abi lit " is the maximum net output .,that the unit can deliver at the altitude of the installa-tion, when operating within design conditions, with the inlet air temperature corrected to the maximum temperature expected during the period being considered. This capability for a given unit may be certified by an actual test run, and shall be recertified upon request of the Executive Committee. B10. "Pool Generation Additon Plan" is the current plan adopted by the Executive Committee setting forth each year for not less than 15 years in the future the schedule for generating units to be constructed. Bll. "Installed Reserve" is the amount of generating capacity remaining after the Adjusted System Load is subtracted from the Adjusted System Capabi lity. B12. "Interru tible Power Sales" is power being sold to a customer (or customers which may be interrupted instantaneously; this power may be considered a part of a Company's (or Companies') available Spinning Reserve up to a maximum of 75K of the Sprinning Reserve Requirement. B13. "Partici ation Unit" is a generating unit, the capacity of which is allocated to two or more Companies, and which is designa-ted as a Participation Unit by the Executive Committee. B14. "Pool Reserve Ca acit " is the total firm power reserves for carrying load above the sum of the estimated maximum coincident Adjusted System Loads of the Companies, the percentage of whi ch shall be established by the Executive Committee as a part of the Pool Generation Addition Plan. B15. "Pool Transmission Facilities" are transmission faci 1'ities, interconnection ties, communication facilities and other facilities associated therewith which are so designated by the Executive Committee. 5-57

Y 816. "Pool Transmission Addition Plan" is the current plan adopted by the Executive Committee, setting forth each year for not less than 15 years in the future the schedule of Pool Transmission Facilities to be constructed. 817. "S innin Reserve" is the sum of (i) the unloaded generating capacity resources of a Company which are connected and ready to supply power upon demand, and (ii) generating capacity which can be made available upon demand from interruptible or other contracts. 818. "Steam Turbine Generator Unit Ca abilit " is the maximum continuous net output that a unit can deliver when operating within design conditions, with back pressure corrected to maximum cooling water temperature expected during the period being considered. This capability for a given unit may be certified by an actual test run (maximum of 24 hours), with no alterations to the design cycle. The established capability of a unit shall be recertified upon request of the Executive Committee. The capacity of steam turbine generator units installed on a Company's system prior to the initial installation of a participation Unit on that Company's system wi ll be as certified to the Executive Committee by the owning Company (such certification shall be ac'companied by a statement of conditions under which the unit was rated). C. Effective Date For purposes of Section G of the Florida Electric'ower Pool. Agree-ment dated , the date of the approval of this Appendix is . It is intended that the provisions of this Appendix shall be placed in effect as soon as practical, and the determination of such effective dates shall be made by the Executive Committee, provided, hov>ever; that all provisions. shall be placed in effect not later than 5-58

5D2 T ical Team T e Florida Electric Power Pool A reement AGREEMENT made as of the day of , by and among the electric utilities in the State of Florida. Witnesseth WHEREAS, the parties own and operate electric generating, trans-mission'and distribution facilities and are engaged, among in the business of producing and selling electric energy to other'hings, other distributors of electric energy and to the general public in the State of Florida. WHEREAS, the parties believe that substantial mutual benefits may be obtained through the coordinated operation of their, electric systems including increased reliability of service and reduced capital costs made possible by coordinated system planning, and reduced operating costs made possible by the interchange of electric energy for economy purposes; and WHEREAS, the parties desire to achieve optimum coordination in th planning and operation of their electric systems and to provide a means whereby all parties may, realize and share in the mutual benefits which can be obtained thereby; and WHEREAS, the parties established the Florida Electric Power Pool (FEPP) by agreement made as of'he day of  ; and WHEREAS, the parties have established and staffed a pool control center facility located near , FLORIDA, for the principal purposes of (1) coordinating the operations of the member companies of FEPP insofar as may affect the reliability of the bulk, power supply on the interconnected systems in Florida; (2) dis-patching energy requirements on an economy basis; and (3) monitor-ing the internal and external operations of the FEPP to insure unimpaired overall security. of bulk power supply at all times; Now, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein set forth, the parties hereto do hereby agree with each other, for themselves and for their suc-cessors and assigns, to operate the FEPP in accordance herewith. II. Definitions For the Purpose of this Agreement, .certain terms used herein are defined as follows:

1. Maximum One Hour Inde endent Net Load. The Maximum One Hour Independent Net Load of any party for any period shall be the electric energy used to supply the load on that party's system during the clock hour when such usage is greatest in such period.

Such usage shall include electric energy delivered to or for the 5-59

account of other utilities under firm load cont'racts (i.e., inhere the supplier is obligated to back up the load covered by the con-tract with reserve capability) but shall exclude: (a) electric energy delivered within the amounts of genera-ting capability sold to other utilities (including parties to this Agreement) under separate contracts, deliveries of-emergency and economy energy, any other deliveries of electric energy to other-utilities for other than firm load, and the internal system losses in connection with such deliveries; (b) loads which are not supplied from the party's Net System Gapabi 1 i ty; (c) internal system losses incurred in the through transmisson of energy for others; and (d) interruptible power sales.

2. Ca abi lit Period. Capability Periods of approximately six months each are established, as follows: (1) From the last Sunday in April up to but not including the last Sunday in October; and (2) from the last Sunday in October up to but not including the last Sunday in April of the following year, or such. other dates as may be determined by the Operating Committee.

3. ~ii C ilia . ii Ciiiii, i d id separate contract, is gnerating capabi lity which has substantially d

the same availability to buyer as the buyer's own generating capabi lity.

4. Net S stem Ca abilit . The Net System Capability of each party hereto in any Capability Period shall be the following:

(a) the dependable net maximum generating capability of installations on its own system; plus (b) Firm Capability purchases and any reserve generating capability which is made available to the buyer by contract to back up such Firm Capability purchases; less (c) Firm Capabi lity sales and any reserve generating capa-bi li ty which is made available by the seller by contract to back up such Firm Capability sales.

5. Ca abilit Mar in. The Capability Margin of each party hereto, expressed as a percentage of the Maximum One Hour Independent Net Load of such party, shall be the amount by which such party's Net System Capability exceeds its Maximum One Hour Independent Net Load in any Capability Period.

5-60

0

6. Re uired Ca abilit Mar in. The Required Capability Margin for each party hereto, expressed as a percentage of the Maximum One Hour Independent Net Load of such'party, shall be the Capability Margin as determined by the Executive Committee, or such lesser percentage as may be determined under provisions of Section X. 2.

7. Pool Ca abilit Mar in. The Pool Capability Margin, expressed in ki lowatts, shall be the amount by which the aggregate of each party's Net System Capability exceeds the aggregate of each party' Maximum One Hour Independent Net Load in any Capability Period.

8. Re uired Pool Ca abi lit Mar in. The Required Pool Capabi lity Margin, expressed in kilowatts, shall be the aggregate of the amounts, expressed in kilowatts, determined for each party hereto by the'xecutive Committee in any Capabi li ty Period.

9. Re uired S stem Ca abi lit , The Required System Capability of each party hereto for any Capabi lity Period shall be its Maximum One Hour Independent Net Load in such Capability Period multiplied by 1.0 plus its Required Capability Margin expressed as a decimal.

10. Sur lus Ca abilit . The Surplus Capability of each party hereto in each Capability Period shall be the amount, if any, by which its Net System Capability exceeds its Required System Capability.

11. Ca abilit Deficienc . The'apability Deficiency of each party hereto in each Capability Period shall be the amount, if any, by which its Required System Capability exceeds its Net System Capability.

12. Committees. Section a Executive IV (b) Planning and Engineering V (c) Operating YI (d) Environmenta'1 VI I (e) Legislative VIII (f) Public Relations IX

13. 0 eratin Ca abilit . The dependable net capability of gen-erating equipment carrying load or ready to take load within time limits determined by, the Operating Committee.

abilit

                                                      '4.

0 eratin Reserve Ca . The excess of Operating Capa-bility over load, and firm sales requirements, at any time.

15. Re uired Minimum Pool 0 eratin Reserve Ca ab'i lit minimum Operating Reserve Capability which must be provided on the

                                                                   . The .

interconnected systems of the parties hereto, as determined by the Executive Committee.

16. Re uired minimum 0 eratin Reserve Ca abilit . Each party' bilityy.

allocated share of Required Ninimum Pool Operating Reserve Capa-

17. 0 eratin Ca abilit Re uirements. The amount of Operating Capability required to supply a party's load, firm sales and its Required Minimum Operating Reserve Capability.

18. Emer enc Ca abilit and Ener . The Emergency Capability and Energy supplied from the seller's Operating Reserve Capability in excess of its load and firm commitments to others and purchased during periods when buyer experiences an outage and buyer has insufficient Operating Capability to supply its load and firm commitments to others. A buyer shall be entitled to Emergency Capability and Energy only for the period and under the conditions specified in Section XI. 6. hereof.

19. Su lemental Ca abi lit . Operating Capability, other than li Finn Capability or Assured Economy Capabi ty, required to meet Operating Capability Requirements.

20. Su lemental Ener . Energy scheduled within the 1~mits of Supplemental Capabi lity purchased.

21. Assured Econom Ca abi lit ~ Operating Capability purchased for a mutually agreed-upon period when, for economy purposes, the buyer withholds specified generating facilities from service or schedules less than maximum quantities of Operating Capability available under contracts in effect during such periods.

22. Assured Econom Ener . Electric energy scheduled for an agreed-upon period within the limits of Assured Economy Capability purchased.

23. ~EE during periods when,

                       . E1 for i   E    g economy purposes, p    h    d the buyer t   iy b restricts the generation of energy from its Operating Capability or restricts the bilityy purchase of energy available under contracts in effect during such periods.

24. Bu er's Value for Ener . The estimated decremental fuel and maintenance cost or purchased energy cost, adjusted for losses on the buyer's transmission system, whi ch a buyer will avoid by re-stricting the generation of energy from its own Operating Capa-or by restricting the purchase of energy under contracts for the purchase of capability, and by purchasing instead the equiva-lent quantity of Assured Economy Energy or Economy Energy.

25. Bu er's Value for 0 eratin Ca abi lit . The estimated aggre-gate of all applicable costs, such as start-up and shut-down costs and hourly operating costs, including labor costs, which a buyer 5-62

will avoid by withholding operable generating facilities from operation or by restricting the purchase. of Operating Capability under contracts for the purchase of Firm Capability, and by purchasing instead the equivalent quantity .of Assured Economy Capabi 1 i ty hereunder.

26. Seller's Cost for Ener . The estimated incremental fuel and maintenance cost or purchased energy cost, adjusted for losses on the seller's transmission system, which a seller incurs in order to generate energy or purchase energy for resale hereunder.

27. Seller 's Cost for 0 eratin Ca abilit . The estimated aggre-gate of all applicable additional costs, such as start-up and shut-down costs, and hourly operating costs, including labor costs, incurred by a sellr to provide Operating Capability or to purchase from other than Pool members Operating Capability for resale.

28. Ener Savin s. The difference between Buyer's Value for .

Energy and Seller s Cost for Energy after both are adjusted for. losses, if any, to the point of receipt on the buyer's system.

29. 0 eratin Ca abi lit Value for Operating Capability and Savin s. The difference between Buyer' Seller's Cost for Operating Capability.

30. ~Part . A signatory to this Agreement.

31. Intervenin Part ies . 'Any party or parties whose trans-mission facilities are required by other parties hereto to accom-modate any of the Operating Capabi'lity or energy transactions provided for under Section XI. hereof.

III. ~Sco e

1. The parties agree to coordinate the development and operation of their respective electric production and transmission facilities in order to obtain optimum reliability of service and efficiency upon the interconnected systems of the parties hereto,

2. The parties in accordance with the terms and conditions here-inafter specified agree to (1) provide and maintain Required System Capability and Operating Capability Requiements; (2) purchase and sell Firm Capability and transmi t the energy associated therewith under separate contract with any of the other parties hereto upon mutually satisfactory terms and condi tions; (3) purchase and sell Operating Capability and energy for the purposes and under the conditions set forth herein; and (4) make the capacity of its transmission facilities not otherwise committed available for transactions involving the purchase and sale of Operating Capa-and energy. 'ility 5-63

3. The parties in accordance'ith the terms and conditions here-specified agree to (1) coordinate the maintenance of 'nafter generating facilities with the maintenance schedules of all other parties hereto; and (2) coordinate planning with that of the other parties hereto with respect to the nature, location, and,date of installation of additional generating and interconnection trans-mi ssi on fac i 1 i ti es.

4. Transactions involving sales of Operating Capability or energy, and the transmission of energy, shall be made with due recognition of each party's responsibility for the supply of its own load, as well as its cooperative responsibility to the FEPP, as provided for hereinaf ter in Sections XI. l. and XI. 5.

5. Any party may enter into emergency and economy interchange arrangements wi th others who are not parties hereto with respect to the purchase or sale of Operating Capability and energy. The parties hereto may contract with each other or with others who are not parties hereto for -the purchase or sale of generating capa-bi li ty to the extent that such contract may be performed without impairing the ability of any party hereto to fulfill its obliga-tions under Sections X. and XI. hereof.

6. Sections IV. through IX. establish an Executive Committee, Planning and Engineering Committee, Operating Committee, Environ-mental Committee, Leg'islative Committee and Public Relations Committee to permit the parties to effectively administer this agreement.

Executive Committee

1. The parties shall establish an Executive Committee to determine policy with respect to all matters within the scope of this Agree-ment and to arrange for the administering of this Agreement and the carrying out of its provisions. The Executive Committee shall provide for the coordination of the planning and operating func-tions of the members of the FEPP in order that, to the greatest extent possible, such coordination will be directed to providing for the electric power needs of the State of Florida (excluding Gulf Power Company) as a whole.

2. Each party to this Agreement shall designate a senior officer, and as an alternate, a second officer authorized to act on his behalf, to serve on the Executive Committee. The expenses of each member of the Executive Committee shall be borne by the party he represents.

3. At its first meeting, the Executive Committee shall select from among its members a chairman and a vice-chairman to serve for one year from such first meeting; and for each year there-after the chairman shall be the member of the Committee who served 5-64

as vice-chairman during the <>receding year, and the vice-chairman shall be a member selected by the Ccm!"'.ttee. Tiie Executive Committee shall meet once each moI!th and at such o+her times as the chairman may deter!!inc.

4. The Executive Commit.tee shall review and direct the activi-ties of the Committees established hereunder. The Executive Committee shall a!. rang for the services of an Administrative Director of the Pool and -u.ficient c'america:. ar!a technical staff and consultants <<o p rmit the Committres to fulfill their responsibilities hereunder, Ine Administrative Director shall as as liaison between the Fxecutive Committee and the other Committees; sha] 1 attend c'!r.':nittee meetings in a no.i-voting capacity; shall administer and coordinate the activities of the Committees of the FEPP; and carry out such othe'uties as may be assigned by the ExecutiIe Committee. The General Ha>>ager of Opera+ions, under the d rection of the Ope!a ing Committee, shall supervise the operation of the FEPP Control Center.

5. All expenses arising'ut of the administ!ation of this Agree-ment, other than the exper.ses incurred by each member or alternate member of the Executive Committee, Operating Committee, or Planning Committee, shall be subject- to the approval of the Executive Com-mittee, in accordance with procedures to be established by the Executive Committee, and shall be allocated among the parties hereto in accordance with the formula which rr!ay be in effect at the time such expenses are incurred.

6. The Chairman of the Executive Committee is hereby designated the agent of each of the parties hereto for the purpose of fi ling changes in, or supplements to, this Agreement with the Federal Power Commission or other regulatory agencies.

Y. ~ Plannin and En ineering Committee

1. The Executive Committee shall establish a Planning and Fngin-eering Committee to coordinate and develop plans for the installa-tion of additional generating capability and interconnecting trans-mission facilities within the Pool. The Planning and Engineering Committee shall coordinate planning between the Pool and adjoining Pools and with other regional power coordi nating <!genci es to the extent appropriate. T!ie Planning and Engineer'ng Committee shall also direct the activities of the General t',anager of Planning.

2. Each party shall designate a senior individual responsible for electric system planning and engineering and an alternate to serve on the Planning and Engir!ee!'ing Com!!ittee. The expenses. of each member of the Committee shall be borne by the party he represents.

  'c. Iefcpf: "If the Committee has serious disagreement on any matter, then that matter shall be referred to the Executive Commit-tee   for resolution."

5- 65

3. The Planning and Engineering Committee st>all select members to act as chairman and vice-chairman. The offices of chairman and vice-chairman shall be changed annually in rotation among the members of the Committee. Each year the vice-chairman of the Cmmittee during the preceding year shall succeed to the chair-manship. The Committee shall meet at regu arly scheduled times and at such other times as the chairman may determine.

4. The Planning and Engineering Committee shall study the need foi additional generating and transmission facilities to best implement the purposes of the FEPP and shall submit regular reports thereon to the Executive, Committee, the Administrative Director, and the Operating Committee. These studies, which shall be made in con-sultation with the Operatirg Conmittee, will include such trans-mission network studies of the systems of the parties hereto as may be required to determine the need for and the best location of additional generating equipment and transmission facilities, additional interconnections wi th other electric systems, and any other matters of a similar or related nature which will aid in achieving the purposes of this Agreement.

5. The parties hereto shall furnish the Planning and Engineering Committee system load and capability forecasts, statistical data, and any other information which may reasonably. be required in the course of the studies undertaken by the Committee.

YI. ~ 0 eratin Committee

1. The Executive Committee shall establish an Operating Corimittee to coordinate the operations of the parties hereunder. Each party shall designate a senior individual responsible for electric system operations and an alternative to serve on the Operating Committee.. The expenses of each member of the Operating Committee shall be borne by the party he represents.

The Operating Committee shall select members to act as chair-man and vice-chairman. The offices of chairman and vice-chairman shall be change'd annually in rotation among members of the Com-mittee. Each year the vice-chairman of the Committee during the preceding year shall succeed to the chairo>anship. The Operating Committee shall meet at regularly scheduled times and at such other times as the chairman may determine.

3. The Operating Committee shall direct the activities of the General Hanager of Operations and shall establish such rules and practices as may be required to coordinate the operation of the bulk power supply systems of the parties hereto so as to insure reliability of service and ec'onomic operation.

c. /c, Fe&;

5-66

0

4. The Operating Committee shall be responsible for modifica-tions to, maintenance, and operation of the physical facilities at the FEPP Control Center.

5. The Operating Committee shall establish and coordinate main-tenance schedules for the Pool.

6. The Operating Committee shall review the Required Capability Margin of the parties hereto periodically in cooperation with the Planning and Engineering Committee, and if experience or the results of studies indicate the desirability of change, shall recommend changes the". eto to the Executive Co~c.ittee.

7. The Operating Committee through its chairman shall submit regular reports of ts activities to the Executive Committee, the Administrative Director, and the Planning and Engineering Committee.

VII. Environmental Committee

1. The Executive Committee of FEPP shall establish an Environ-mental Committee which shall develop and coordinate aspects of environmental protection and enhancement as .hey pertain to the planning function of FEPP.

2. Each party shall designate the senior individual responsible for environmental activities along with an alternate to serve on the Environmental Committee. The expenses of each member on the committee will be borne by the party he represents.

D e. ( egest( ..>/~ (- (') ~

3. The Environmental Committee shall select members to act as chairman and vice-chairman. The offices of chairman and vice-chairman shall be changed annually in rotation among the members of the committee. Each year, the vice-chairman of the committee during the preceding year shall succeed to the chairmanship.

The Environmental Committee shall meet at regularly scheduled times and at such other times as the chairman may determine. VII I. ~Li 1 i C

1. The Executive Committee of FEPP shall establish a Legislative Committee which shall develop and coordinate legislative activities as they apply to FEPP as a whole.

2. Each party shall designate the senior individual responsible for legislative activities along with an alternate to serve on the Legislative Coimnittee. The expenses of each member of the com-mittee will be borne by the party he represents.

      'e      le v'eg ~ I ~      r/g    g 5-67

3. The Legislative Committee shall select members to act as chairman and vice-chairman. The offices of chairman.and vice-chairman shall be changed annually in rotation among the members of the committee. Each year, the vice-chairman of the committee during the preceding year shall succeed to the chairmanship. The Le'gislative Committee shall meet at regularly scheduled times and at such other times as the chairman may determine.

IX. Public Relations Comnittee

1. The Executive Comm'.ttee of FEPP shall establish a Public Relations Committe which shall develop and coordinate'public relation activities as they apply to FEPP as a whole.

2. Each party shall designate the senior individual responsible for public relation activiti es along with an alternate to serve on the Public R lations Committee. The expenses of each member of the committee will be borne by the party he represents.

      '   c. l e.+ac(    / Q g j ') 5

3. The Public Relations Committee shall select members to act as chairman and vice-chairman. The offices of chairman and vice-chairman shall be changed annually in rotation among the members of the committe . Each year, the vicechairman of the committee durino the preceding year shall succeed to the chairmanship, The Public Relations Committee shall meet at regularly scheduled times and at such other times as the chairma'n may determine.

X. Installed Ca ability

1. Prior to the commencement of each Capability Period, each party hereto shall estimate its Required System Capability for the en-suing Capability Period and shall provide and maintain a Net System Capability at least equal to such estimated Required System Capa-bility throughout the ensuing Capability Period.

2. If, in any Capability Period, the Pool .Capability Margin is less than the Required Pool Capability Nargin, the Required Capa-bility Margin of each of the parties hereto shall be reduced pro-portionately in the ratio of the Pool Capability Nargin to the Requi red Pool Cap ab i 1 i ty Narg i n.

3. At the end of each Capability Period after the effective date hereof, the Naximum One I<our Independent Net Load actually experi-enced by each party hereto during the preceding Capability Period, the Required Capability Hargin, and the Wet System Capability of each party hereto, adjusted, if appropriate, pursuant to Section 4.

below, shall be used to determine the actual Required System Capability and the Surplus Capability or Capability Deficiency of each party during the preceding Capability Period. 5-68

4. In the event the generating capability available to a party bilityy during a Capabi li,ty Period due to a change in the capa-changes of generating installations on its own system or on another system from which it is purchasing Firm Capability, the party's Net first System Capability shall reflect the change as of the nearest day of the month to the actual date upon which the change occurs.

If the change occurs on the sixteenth day of a thirty-,one day month, the adjustment shall become effective as of the first day of the month in which the change occurs. A party changing its Net System Capability during a Capability Period shall have its Required System Capability determined as follows: (a) For the months of the Capability Period prior to a change in Net System Capability, a party's Required System Capabi li'ty shall be determined on the basis of its l1aximum One Hour Inde-pendent Net Load experienced in those months. (b) For the months of the Capability Period after a change in Net System Capability, a party's Required=System Capability shall be determined on the basis of its Maximum One Hour Inde-pendent Net Load experienced in those months.

5. In the event of an extended outage of generating equipment or directly related equipment due to any of the circumstances stated in Section XVI. hereof, the following shall occur:

(a) If it is determined that the generating equipment subject to such outage is reparable, and .if the person or persons owning such equipment proceeds with due diligence to effect the repairs necessary to restore such equipment to servi ce, the capability of the generating equipment subject to such outrage shall continue to be included, without diminution, as a component of a party's Net System Capabi li ty pendi ng resor-ation of such equipment to service. The Net System Capability of other parties purchasing capability from the party sustain-ing such outage shall not be subject to adjustment. (b) Notwithstanding the provisions of Section XVI, if it is determined that the generating equipment subject to such outage is damaged beyond repair, the capability of such equipment shall be deemed to be unavailable to any party for any purpose from and after the first day of the month in which such deter-mination is made, and the obligations of the parties hereto shall be redetermined to reflect such determination. (c) The determination of whether or not generating equipment is repairable shall be made by the person or persons owning such equipment. 5-6g

S XI. 0 eratin Ca abilit and Ener

1. FEPP, Control Center personnel'hall schedule and dispatch, bilityy pursuant to information supplied by the parties, Operating Capa-and energy to meet the Pool load and operating reserve requirements, in a reliable and economical manner.

2. FEEP Control Center personnel shall coordinate-the operation of the Pool with other systems or pools.

3. The Required Minimum Operating Reserve Capability to be operated by each party hereto shall be d~termined by the FEPP Control Center personnel in accordance with the method of allocating Required Minimum Pool Operating Reserve Capability established by the Operating Committee.

4. Each party agrees to provide either from its own .resources or through purchase from others its Required Minimum Operating Reserve Capability.

5. All transactions for the purchase or sale of Operating Capa-bility or energy hereunder shall be scheduled by FEPP Control Center personnel, acting within the limits of the rules,- practices and procedures established by the Operating Committee.

6. Any party, when called upon to do so, subject to the pro-visions of Section III. 4., shall supply Emergency Capability and Energy to any other party requesting such service. Such service shall be billed as Emergency Capability and Energy to the extent that the following conditions are met:

(a) Buyer's schedule for the day has provided for suf-ficient Operating Capability to meet its Operating Capa-bi 1 i ty Requirements. (b) The period of such purchase shall be limited to the . time required for buyer expeditiously to start additional generation on its own system, to schedule Firm Capability to which it is entitled by contract or to purchase Supple-mental Capability. To the extent that the foregoing conditions are not met, the service rendered shall be billed as Supplemental Capability and Energy.

7. Subject to the provisions of Sections III. 4., any party when called upon to do so, shall supply Supplemental Capability, if available, to any other party requesting such service. Supple-mental Capability is not to be purchased to avoid Capability Deficiency payments. h 5-.70

a

8. The purchase of Supplemental Capability or of Assured Economy Capabi,lity shall entitle the buyer to schedule receipt of all'r any part of the energy associated. therewith, for the period of the capability purchase, in maximum hourly quantities not exceeding the quantity of such capability purchased. Subject to the provisions of Section III. 4 , service shall not be terminated during such period without the buyer's consent.

9. Supplemental Capability or Assured Economy Capability sold hereunder shall be provided by, the seller in addition to the se1 1 er own Operating Capabi 1 i ty Requirements.

10. Ho party shall at any time remove capability from service for scheduled maintenance purposes unless the Operating Capability available to it from its own or purchased generating sources, is for the expected duration of the outage, sufficient to carry its Operating Capability Requirements.

11. In order to facilitate the coordinated, economic operation of the generating equipment of the parties hereto, generating equip-ment shall be withdrawn from service for maintenance in accordance with schedules established by the Operating Committee.

12. All electric energy purchased and sold hereunder shall be

    . three-phase, 60 cycle, alternating current. Suitable equipment for controlling frequency and inter-company tie-line loading shall be provided and maintained by each of the parties hereto. The par ties agree to operate such equipment in a manner consistent with the coordinated intersystem operation which is the objective of this Agreement.

13. Each party will endeavor to control the flow of reactive kilovolt-amperes upon its system so as not to affect adversely the systems of the'other parties hereto.

XII. ~Char es

l. Each party incurring a Capability Deficiency in any Capability Period shall pay the parties having Surplus Capability. during such Capability Period their proportional share of the Capability Deficiency Charge specified in Schedule 8, attached hereto and made a part hereof. Payments shall be apportioned among the parties having Surplus Capability in proportion to each party's contri-bution to the total Surplus Capabi lity available.

In the event that a party increases or decreases its Net System Capability during a Capabi lity Period, the extent to which parties having Capability Deficiencies are obligated to make. Capability Deficiency payments and the allocation of Capability Deficiency payments to parties having Surplus Capability shall then be deter-mined from the Capability Deficiencies and Surplus Capabilities of 5-71

each party during the months of the Capability Period prior to and following the*change in Net System Capability.

2. Emer enc Ca abilit and Ener 'urchased hereunder shall be paid for on the basis of scheduled deliveries at the aggregate of Seller's Cost of Operating Capability and Energy, as defined in Sections II. 27. and 26., plus ten per cent. The buyer shall compensate any Intervening Party for losses incurred.

3. Su lemental Ca abilit and Su lemental Ener purchased hereunder shall be paid for at the rates set forth in Schedule C-l, attached hereto and made a part hereof. The buyer shall compensate each Intervening Party for losses incurred and shall pay each Intervening Party the transmission facility charge set forth in Schedule C-2, attached hereto and made a part hereof.

4. Su lemental Ca abi lit Without Ener purchased hereunder shall be paid for at the rate set forth in Schedule C-3, attached hereto and made a part hereof, The buyer shall pay each Inter-vening Party the transmission facility charge set forth in Schedule C-2.

5. for Assured Econom Ca abi lit purchased hereunder shall be paid on the basis of scheduled deliveries as follows: (a) The buyer shall pay the seller Seller's Cost for Oper-ating Capability plus the seller's share of the Operating Capability Savings resulting from such purchase. (b) The buyer and seller shall each receive one-half of the Operating Capability Savings resulting from the purchase of Assured Economy Capability unless one or more Intervening Parties participate in the transaction, in which event the buyer and seller shall each'receive one-third of the Operating Capability Savings and the Intervening Party or Parties, collectively, shall receive one-third. (c) When Assured Economy Capability is purchased or sold on a share-the-savings basis from or to a source outside the Pool, one-half of the share of the savings accruing to the parties wi thin the Pool shall be retained by the buyer or seller and the remainder divided equally among the Intervening Parties within the Power Pool participating in the trans-action.

    .(d)   . The buyer shall make;payment,dire'ctly to the seller and to;=any Intervening Party, unless the seller is a source outside the Pool, in which event payment for capability and the seller's and Intervening Party's share of the savings shall be made to the party directly interconnected with the source outside the Pool.

5-72

6. Assured Econom Ener purchased hereunder shall be paid for on the basis of scheduled deliveries at the following rates:

(a) The buyer shall pay the seller Seller's Cost for Energy plus the seller's share of the Energy Savings resulting'from the purchase. (b) If Assured Economy Energy is delivered to a buyer over the transmission system of an Intervening Party, the buyer shall pay such Intervening Party the Intervening Party's share of the Energy Savings resulting from the transaction plus losses attributable to transmission over the Intervening Party's system. (c) The buyer and seller shall each receive one-half of the Energy Savings resulting from the purchase of Assured Economy Energy unless one or more Intervening Parties participate in the tr'ansaction, in which event the buyer and seller shall each receive one-third of the Energy Savings and the Inter-vening Party or Parties, collectively, shall receive one-third. (d) When Assured Economy Energy is purchased or 'sold on a share-the-savings basis from or to a source outside the Pool, one-half of the share of the savings accruing to parties within the Pool shall be retained by the buyer or seller and the remainder divided .equally .among the Intervening Parties within the Pool participating in the transaction. (e) The buyer shall make payment directly to the seller and to any Intervening Party, unless the seller; is a source outside the Pool, in which event payment for energy and the seller's and the Intervening Party's share of the savings shall be made to the party directly interconnected with the source outside the Pool.

7. ~EE p h dt d 111 basis of scheduled deliveries at the following rates:

pidf h (a) The buyer shall pay the seller Seller's Cost for Energy plus the seller's share of the Energy Savings resulting from

    .the purchase.

(b) If Economy Energy is delivered to a buyer over the trans-mission system of an Intervening Party, the buyer shall pay such Intervening Party the Intervening Party's shar'e of the Energy Savings resulting from the transaction, plus losses attributable to transmission over the Intervening Party' system. (c) The buyer and seller shall each receive one-half of the Energy Savings resulting from the purchase of Economy Energy unless one or more Intervening Parties participate in the 5-73

transaction, in which event the buyer and seller shall each receive one-third of the Energy Savings and the Intervening Party or Parties, collectively, shall receive one-third. (d) When Economy Energy is purchased or sold on a share-the-savings basis from or to a source outside the Pool, one-half of the share of the savings accruing to parties with% the Pool shall be retained'by the buyer or seller and the re-mainder divided equally among the Intervening Parties within the Pool participating in such transaction. (e) The buyer shall make payment directly to the seller and to any Intervening- Party, unless the seller is a source outside the Pool, in which event payment for energy and the seller's and Intervening Party's share of the savings shall be made to the party directly interconnected with the source outside the Pool.

8. Any energy inadvertently interchanged (that is, the difference between net energy=import or export as scheduled and as metered) shall be" returned to the supplying parties by the receiving parties as soon as practicable after receipt under load conditions re-asonably equivalent to those under which it was received and in such quantities and at such times as may be mutually agreeable.

XIII. Intercom an Bi llin

1. The'EPP Control Center personnel shall collect, prepare and disseminate all data required for billing for Operating Capability and Energy transactions hereunder.

2. Bills for transactions hereunder shall be rendered by the party providing service as soon as practicable after the first day, but not later than the twentieth day of each calendar month.

Payment of the amount so billed shall be made .within ten days after presentation of the bills.

3. Billing data upon which Capability Deficiency charges are based together with a summary of payment due after each Capability Period to each party having Surplus Capability in any Capability Period shall be prepared by the-Control Center personnel in conjunction with the Operating Committee and furnished to each party hereto as soon as practicable after the end of each Capability Period. "Bills based upon such data shall be rendered by'parties having Surplus Capability not later than the twentieth day of the month following the end of the Capability Period in question. Payment of amounts so billed shall be made within ten days after presentation of the bi 1 l.

4. Billing for all energy trahsacitons shall be based upon scheduled deliveries. The subdivision of the net import or export of energy into the various classifications of energy utilized 5-74

hereunder shall be determined as the algebraic sumation of the ~ . hourly amounts of each of the various classifications, of energy scheduled for purchase or sale by each party. XIV. Points of Deliver and Meterin

l. Electric energy will be delivered and received at the several points of interconnection between the systems of the parties hereto and at such other points of interconnection as may from time to time be established. Appropriate metering devices shall be installed as required to measure the energy flow, at each point of inter-connection.

2. All.metering equipment used to record transactions hereunder shall be read and maintained by the respective owners thereof.

Procedures with respect to maintenance, testing, calibration, correction and registration records, and presumed tolerances of all metering equipment shall be in accordance with good operating practice and with standards which may be established by the Operating Committee. XV. Records Each party hereto and the FEPP Control Center-shall keep complete and accurate records, meter readings, and memoranda of its oper-ations hereunder and shall maintain such data as may be necessary to determine with reasonable accuracy any item required to be estimated hereunder. The Executive Committee and the FEPP Control Center personnel shall have the right to call for and examine all such records, meter readings and memoranda insofar as may be necessary for the purpose of ascertaining the reasonableness and accuracy'f any estimates or statements of costs relating to transactions hereunder. XVI. Uncontrollable'Forces A party hereto shall not be considered to be in default in respect of any obligation hereunder if prevented from fulfilling such obligation by reason .of storm, flood, lightning,'arthquake, fire, explosion, equipment failure, civi disturbance, labor dispute, act 1 of God or the public enemy, restraint by a court"'or other public authority, negligence on the part of any employee, servant or agent, or any cause beyond the control of the party affected. Any party unable to fulfill its obligations by reason of any of the foregoing shall exercise due diligence to remove the disability incurred. XVIII. ~Liabiiib Each party agrees that it will'ndemnify, protect, and save the other parties harmless from and against any and all loss or lia-5-75

bility for or on account of any injury (including death) or damage to=any person or property, due to the negligence or. misconduct of itself or any of its officers, agents,. or employees in or about the performance. of this Agreement. XVIII. Waiver Any waiver at any time of the rights of any party as to any default on the part of any other party or parties to this Agreement or as to any other matter arising hereunder shall not be deemed a waiver as to any default or other matter subsequently occurring. XIX. ~ll The written consent of all other parties hereto shall be required to effect an assignment of the rights or obligations of any party to this Agreement. XX. Effective Date and Termination

1. This Agreement shall become effective as of the date it is accepted for filing as a rate schedule by the Federal Power Commission, and it shall continue in effect unti 1 terminated as of the close of any Capability Period by the unanimous agreement of all persons then parties hereto.

2. Any party may withdraw from this Agreement effective as of the close of any Capability Period upon three years'ritten notice to each other party; provided, however, that any party submitting notice of intent to withdraw shall be obligated to pay its alloca-ted share of the administrative expenses of the FEPP for the full calendar year within which such termination shall become effective.

XXI. Su ression of Prior A reements The Agreements among the parties are superseded in their entirety by this Agreement. XXI I. Short Ti tie This Agreement shall be known as the Florida Electric Power Pool (FEPP) Agreement. IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed in its corporate name by its proper officers, and its corporate seal to be affixed hereunto, as of the day and year first above written. 5-76

TYPICAL TEAN TYPE FLORIDA ELECTRIC POWER POOL AGREENENT SCHEDULES A, B, C-l, C-2, C-3 The above schedules will be determined by the Task Force on Cost Alloca-tion and approved by the Executive Committee. These schedules will be similar in content to the ones illustrated in the. Appendices of the Link Type Agreement in Subsection 5Dl. 5-77

SECTION 6 TECHNICAL A. INTRODUCTION The prime goal of any power pooling arrangement is to attain a more economical operation for all pool members with a secondary goal of increased reliability. A methodology has therefore been included which has.the capability of addressing the question of whether economic benefits do in fact exist, and-if so, whether these economic benefits are of a suitable magnitude to justify the existence of a power p001 . Due'o the exploratory nature of this repor t, initial efforts were focused on a means of indicating the economic strengths or weaknesses in power pooling through statewide economic dispatch. The economies to be realized by pool operations are difficult to quantify but they do include positive aspects such as: Fuel savings. Lowering of reserve r'equirements and attendant lower investments in production facilities. Investment economies of scale for production and transmission plant. Reduced expenditures in the site approval processes. Offsetting these economies are cost increases such as: Increased investments in intercompany transmission facil i ties. Additional costs of pool staffing. Central i zed LDO f aci 1 i ti es .and indi vi dual interface equipments. OPERATIONS

l. State-wide Dis atch Studies.

A review of available methods to analyze the operation of 10 of the largest utilities in Peninsular Florida resulted in use of a computer load dispatch program which has output capability in fuel consumption (Million BTU) as well as monetary terms, when an assumed fuel cost and availability are input. Initial. conditions were chosen for a peak month of the year, using a peak day and an off-peak day, which include each hourly interval of the day. Further, various combinations of'uel availability, size of units treated as mid-range, and 6-1

capacity factors were considered in the analysis of the State-wide Economic Dispatch (SWED) on the bus-bar basis. An in-depth review of these cases, of

   ,. which   13 major cases, were considered      (See Tabl'e I for   detail), resulted in the identification of many areas of concern which will be discussed in detail. In an effort to identify the basic implication of these studies, comparisons were made  on a basis of minimum fuel input (Million BTU). One case, using a unit commitment type program, verified the magnitude of possible savings for pool dispatchinq versus individual dispatching. Copies of the output of all SWED cases are available for review upon request.

II. ~Anal sis From the above 13 cases analyzed (See Table I), economies can be obtained by SIAED as compared to dispatch on an individual basis, as would be classically expected. Parameters that would effect the magnitude of these savings, are as follows: ( a) Transmission system capacity and losses. The cases, as studied on a bus-bar criteria, imply the assumption that all the necessary transmission facilities exist, and that optimum operation on a heat rate basis is also optimum on a transmission loss basis. Since neither implied assump-tion is correct, means must be de-veloped to identify where additional transmission facili ties may be re-quired, and what the system losses are under each dispatch configuration. results in the need for multiple 'his load flow cases to'answer and quantify these questions, as well as the ulti-mate need to include a suitable loss matrix with any computer program used for statewide economic dispatch. (b) Fuel type and avail abi li ty. Constraints concerning fossil fuels are typi cally: (1) Avai 1abi i,ty in 1 that only a limi ted amount of natural 6-2

gas is obtainable, and often on a "take or pay" basis; (2) Under fuel 'shor'tages, dispatch may be by fuel avai abi i ty and not(gas/oil) 1 1 econ-omy; (3) Dual fuel plants can shift their relative economic position dramatically when changing fuels; (4) Fuel costs at each indi-vidual plant must be considered to reflect all costs sustained utility, whether by pipeline byor each barge, from a bulk terminal'oint; (5) Ecological constraints as to the time and amount of fuel that can be used at any particular plant; and (6) Only one utility has coal avail-able and is limited by supply. (c) Dispatch considerations Suitable dispatch programs will be required which recognize the cost of transmi ssi'on osses, costs of start-1 up, hot stand-by, shut-down, mi nimum load, as well as which units are base load type, are swing type, or are in a "must run" commitment. Table I is a summary of the 13 SWED cases studied for varying constraints on (1) avai lable fuels, (2) capacity factors, and (3) units used as base load or for mid-range loading. Cases 4a and 4b were selected for analysis because all fossi fi red steam units were constrained to oil usage, 1 which resulted in allowing only one parameter of the dispatch model to vary. By use of this input constraint, a direct comparison of the economies to be obtained in the use of SWED could be defined. Table II is a summary of the results of the economic dispatch calculations for a eak day. The assumptions of Table II are important because o e implications of, the results. Yieaningful numbers are presented which demonstrate the possible magnitude of savings'or bus bar dispatching when all generating resources in the 10 Florida Utilities are treated as "one system". When "one system" dispatch is compared with an individual system approach to meeting the same load, a decrease of 65,759 million BTUs resulted for this typical day. Also the average daily heat rate improved 2.5X from 10,348 to 10,085 BTU/KWH for "one system" dispatch. Table III is a summary of the results when units of 100 NW or less are allowed to cycle when necessary to meet the load and is an additional constraint for the case analyzed above in Table II. On a relative basis an increase of 108,697 million BTUs was observed when the Florida Group individually I 6-3

dispatches as compared to the "one system" type of operation. It is also to be 'noted that the average daily heat rate improved 4.0X- from 10,348 to 9,933 BTUs/KMH for a "one system" dispatch. e A study of what effect transmission losses have on the individual versus "one system" concept was performed for the two cases described above. Load Flow cases for 6:00 A. N. and 6:00 P. N. were simulated, both for individual system dispatch and for statewide dispatch. Under the 6:00 A. N. li ght 1 oad conditions, power 1 osses increased 20'~ under the statewide dispatch. However, under 6:00 P. 4. heavy load conditions, power losses decreased 6Ã under statewide dis-patch. Studies of typical load cycles would be necessary to document the effect of these transmission system losses. Conclusions There are probable savings in fuel for the "one system" dispatch of the 10 Florida Utilities. These studies indicate great economic opportunities for Florida Utilities pooling. If if they choose to pursue Formal further studies are required, it is suggested that these studies be implemented by an Ad Hoc committee with adequate budget and staff to accomplish the scope of work within a reasonable period of time. PLANHIHG I. Generation Plannin The "one system" concept in the generation planning area shows obvious benefits in the sharing of installed generating reserves. To illustrate this effect an exampl'e of five (5) individually planned systems combined into a formal pool is pre-sented. Figure 1 and Table IV are the illustrations supporting the following discussion. Table IV is the reserve requirements for the 5 systems when they are planned on an individual basis. Mi th a total system peak load of 20,000 NM, the installed reserves would be 6,400 NM, with an effec-tive reserve of 32.0X. Referring to Figure 1 which is the reserve re-quirement for a "one system" concept the same 20,000 NM total system peak load would require 4,400 NM or 22K reserve with a largest unit of 880 NM. Comparing the 4,400 HM "one system" reserve with the 6,400 NM "individual system" reserve shows a re-duction of 2,000 NM 'in required reserve. Assuming an 6-4

annual fixed cost (i.e., interest on money, depreciation, taxes, fixed maintenance, etc.) of $ 25,000 per megawatt per. year, an annual savings of 50 million dollars results for the formal pool arrangement. The present informal Florida Pool based on-individual generation expansions, has. achieved a substantial portion of the potential savings that exist in a formal pool. Formal pool generation planning on a "one system" basis is a real opportu-nity for all systems to obtain additional savings in the future and share in these savings on an equitable basis. Transmission Plannin Transmission planning will be necessary to meet both the reliability needs of all pool members, and-, to meet the through-put capacity required to carry the power flows from the most efficient generating point to the point of utilization as seen by economic dispatch. Limited real estate and environmental considera-tions make joint planning of future transmission facilities necessary i n order to conserve capital. Based on the 'fact that 500 KV is now the highest operating transmission voltage in the state with an established underlying 230 KV bulk power grid, it is reasonable to assume modifications with proper cost allocations to the future transmission requirements for a "one system" pool can be achieved. Joint long range transmission studies have illustrated effective optimization of the transmission grid is possible if a joint generation expansion plan exists. The main ingredient that differentiates the state-wide dispatch transmission needs from the indi-vidually dispatched needs is thegreater distance of generation from the equivalent system electrical center. Thus, the consideration of state-wide dispatch may have the effect on bulk power transmission of reassigning the priorities of construction programs, as well as the possible relocation of and addition of new transmission facilities. 6-5

TABLE I STATEWIDE ECOHON I C DISPATCH CA'SE DESCRIPT ION Case Ho. 3a - 1 ----------Peak Day Data Base 3a - 2 ----------Off-Peak Day Data Base Constraints for both 3a cases were: All but Gas Turbines on line and assumed base load operation. 3al - 1 ---------Peak Day Data Base 3al - 2 ---------Off-Peak Day Data Base Constraints for both 3al cases were: All Gas Turbines on line and assumed base load operation with coal units at 801. capacity factor. 3b 1 ----------Peak Day Data Base 3b 2 ----------Off-Peak Day Data Base Constraints for both 3b cases were: Oil fired steam units less than 50 NM assumed to be mid-range. 3c 1 ----------Peak Day Data Base 3c 2 ----------Off-Peak Day Data Base Constraints for case 3C - 1 were: Oil fired steam units less than 100 HW assumed to be mid-range. Constraints for case 3c - 2 were: Oil fired steam units less than 50 thW were removed and 50 to 100 HW units assumed to be mid-range. 3d 1 ----------Peak Day Data Base 3d 2 ----------Off-Peak Day Data Base Constraints for both 3d cases were: Same as 3c cases except no gas was available. 3dl - 1 ---------Peak Day Data Base Constraint for this case was: Same as 3c - 1 except no gas available and coal units at 80K Capacity Factor. 1 ----------Peak Day Data Base Constraint for this case was: Same as 3a - 1, but included Crystal River Nuclear, and did not have coal or gas available. 4b 1 ----------Peak Day Data Base Constraint for this case was: Same as 3c - 1, but included Crystal River Hucle'ar, and did not have coal or gas available. 6-6

TABLE I - CONT'D 4c - 1 ---------Peak Day Data Base Constraint for this case was: Same as 4b' 1 but all nuclear units at 60/'capacity factor. Note: 1974 data derived by increasing 1973 load data by 10'A and use of common fuel prices for all companies. 6-7

TABLE I I

                                         ~RES UL   S STATEWIDE ECONOMI C DISPATCH STUDY TYPICAL PEAK LOAD DAY ALL GENERATING UNITS BASE LOADED Case     a UTILITY                  STATE                   ,

INDI VI DUAL DELTA DISPATCH DISPATCH ii arne Mi 1 1 i on BTU Mi 1 1 i on BTU Mi 1 1 i on BTU !PL 1,253,182 1,396,246 116,064 i:PC 592,185 608,665 16,480 TECO

EA-392,866 336,480 (-) 56,385 204,394 205,103 709

 'UC                       120,494                          ,566 (-)    46,928 akeland                    31,579                     48,331          16,752 tallahassee                  38,894                     49,816          10,922

.t'ai<<esvi le 1 22,843 24,786 '15943 Lake Worth 7,852 11,706 4,054 <<'ero Beach 10,086 '12,235 2,149 I'vtd I 2,674,175 2,739,934 65,759 i'A l LY HEAT RATE Bl u/KWH 10,085 10,348 263 or 2.5X sum tions for Table Al 1 uni ts except Gas Turbines operating and assumed base loaded Units include Crystal River Nuclear. Fuels exclude the use of coal or gas because of future availability. Unit heat rate data is a mixture of design and actual performance. 6-8

TAB LE I II RES ULTS STATEWIDE ECONOMIC DISPATCH STUDY TYPICAL PEAK LOAD DAY ALL UNITS SMALLER THAN 100 MW MID-RANGE LOADED Case UTILITY STATE I ND I V I'DUAL DELTA DISPATCH DISPATCH Name Mi 1 1 i on BTU Mi 1 1 i on BTU Mi 1 1 i on BTU FPL 1,305,476 1,369,229 63,753 FPC 5,84,132 608,665 24,533 TF. CO 404,609 336,607 (-)68,002 JEA 190,134 205,103 14,969 OUC 112,529 73,566 (-)38,963 Lakeland 17,604 ~ 48,331 30,727 Tallahassee 12,113 49,816 37,703 Gainesvi lie 3,028 24,780 21,752 Lake Worth 947 11,706 10,759 Vero Beach 769 12,235 11,466 TOTAL 2,631,341 2,740,038 108,697

                                                                                 'AILY HEAT RATE BTU/K'kH                   9,933                     10,348         415   or   4X Assumptions   for Table III.

Same as in Table II,except all units smaller than 100 MW are mid-range loaded. 6-9

TABLE IV GENE RAT ION RES E RVE RE UI REMEND. INDIVIDUAL SYST M CONCEPT System System Size of Unit Required Required Peak HM t~~l Reserve Reserve M'Ll A 10,000 880 32 3,200 B 5,000 440 32 1,600 C 2,500 220 32 800 D E 1,500 1,000 110 110 '828 420 3SO 20,000 .32 6,400 (TOTAL) (EFFECTIVE) (TOTAL) 6-10

l00,000 90)000 00>000 70,000 PERCENT RESERVE REQUIRED FOR LOSS OF LOADTO BE EXPECTED ONE DAY EVERY TEN EO>000 YEARS, BASED ON: 50,000 I GENEI>ATOR FORCED OUTAGE RATE OF 2% 40,000 2. LOAD FORECAST ERROR- STANDARD DEYIATATION OF < 3%

3. SCHEDULED MAINTENANCE FILLS UP 0)000 SEASONAL LOAD VALLFY.

4. SYSTFI>IS CONSIST ENTIRELY OF INDICATED SIZE UNITS 20,000 IO,OOO 9,000 0,000 7)000 880 I>I'lY UNITS G)000 5 000 440 I)IVI UNITS 4)000 3,000 220 IAN UNITS 2POO IIO I)IO UNITS PAN UNITS I) 000 0 5 10 15 20 25 30 35 40 45 50 REQUIRED PER CENT RESERVE FIGURE I

SECTION 7 REFERENCES The 1964 National Power Survey The 1970 National Power Survey (Part I, Chapter 17)

2. Power System Operation by Robert H. Miller Chapters 2,' and 8

3. A Treatise on Pooling by Edwin Vennard & John J. Kearney

4. Transmission Problems in Establishing a Power Pool by Robert Brandt, Consultant

5. Contracts for Electr ic Uti1 i ty Interconnections by L. B. LeVesconte

6. IEEE Transactions-on Power Apparatus and Systems Volume 84, No. 6, June 1965

7. Carolinas Virginias Power Pool Agreement, July 1961

8. New York Power Pool Brochure "Organization and Functions" New York Power Pool Brochure "Agreement"

10. New York Power Pool, "Description of the History, Purpose, Organization, Functions and Operations of the New York Power Pool", March 1972 (revision January 1973)

PJM - Americ'a's Pioneer Power Pool Brochure December 1969 and December 1972

12. Edison El'ectric Institute "Report ori Interconnected Electric Power Systems in the United States", May 1967

13. Edison Electric Institute, Rate Research Committee, "Power Pool Rates", January 1972 7-1

.4 ~ ~ 7 f\ I 'i 7;

                                                                                      ""i '~

1 II .i'I ): 3l i';l i%[ l,'i 5 .' i'i I s:' r'.< ~ 7()o iir)'J rii Ar)h 'I& ~ CHU.T

                                                                                                                                 'r)XLLt%1 IA~ >     >         3.') 1

[ t$ )A 'r r:Lcprlo 4e. 901 >e.'0 l001 cj. J,. CeQ.o eath Cr.a ilTiGrl Florida r.',1..ctric Po.iver Cma~nating Croup 402 R~ Smelt Sui~~ 103 T=" ~~, r lorida 33609 D=~= tlr. CulbrcaL'n: legislation in recent >:..vrs has placo3'a responsibility urn .Lh's Cm'ossian iIhich re@.L~cs us .to cori'-n curse.r.ves ?lot on1$ vi).th t la s=rece ct~~zac~risLr'.cs of individuat electric utilities, but alcso wfi ",r Lh ch:"J.""ct istics of the .)toto as a. %"hole I -.uote l:rca 366;0"-. (3), F.S. ef fcctive July 1, 197~': TfÃ'CRC'sioil shall Clirther ~ have jim'is(iiction OVc~r t: .(1 UlilL1!1.UlgI deVelo,-tVMt c~Za'.l rrra.iritencln e o" a ccord.I~>tel electric po:re grid throughout Flor3.da i For 'h" 1980-2000 Lirr'-." fx'a. r and oiirsuant to th= Fl()cida El."ct -ic Pi:zr Pla~t SiLing .ict, the Ccrmissicn's E.i@i~1="r~rizg Staff intends tO evil'.:at>>"."-. r!S-..'cr .-.d(riticnal pO:i~W plants On t'rla 1XrSiS Of a c;illy coo":ilin.tel p="Aizlsula irid;. px;or leone. Vr(mtexl by financial (:"ns i('-.lr rtron: j:.10 l(.i Po':= r ColT()t aizo.r 1r l<ovI "i'.j tc'rrct?.d ]0Lrlt (-.:.-;.=r-"r!'.:~ of its po;;-.~r plarl~ <<hich is b.it on;. f(..:rture of pv:;cr pool 0 72 ai'. r.(:A. (e ilo,"(! LhiL l.lr:1 F1or r.:::1 j lmtrr.c j'cz:,~ r Crv)i-.(jr.ir.rr.'ir::j Groir[i (j'C.'C), Lil;1 r:::'...r:!<in t;h'rt ri"ov.i(b".; for (i "r 90".i nf ! j .1 j... r. lir:<xl.r=...'j 1

                                                                     .r in Plilrir!:, h.'. wi hri'..i.j" r:1!'.;, Lii.;1 irir!..::ji..< rr:rr (il e.:(~at i:;.

i:'(es:Lre 1'.0 nrr".'.r l.'.1L" "':'.~'r fv9l 'llKj con<.'." >j'.A ! 0:: ): 'rl Il'.ciLLci F lo'. id.r. I iti r T .".<7 Lh..".:;.Co .'.~ lixgLle:iL.i:1 0!:.lt by vi.'il".. (if ~o'ir <'(~. )".r els C(la.i<<r"-rn r t'1! L <C yo'1 lir1r1(j j... C() r:c your j:::'racer t rvi", C('!jli;e's' t.'a ~ co'1' r..a'~l J:1 OL tr'3 t::lDX Of Vrr )'r:ir1'.r C(by1rratl.".i~ %'3 cl',iil:j iriii t e."(7 i. DrV

                                             >                                                                                               cl'i
                                                                                                  'l

plagal". Co'::~".~i".i;-.ula T lorica:L~a a". a w'nole;<i.tnout rcq.u:cl to inMirL.uual OX') hl) t L L 1 tory clu3 s'i1ih pX'tl~wllrLx C:I p~ll3'11S Oa 1 ti! Xol e OC ZA co l JLLlct10"L %".Lt'1 Ul se eco'.1QBl.& tu E.LGB 9's fiLl 1."BA Lx..::= . sol1clt ' ': lo;i~ On l.orii'cll O':Iec . 3~ 0 .ratio".L cLG 4'l Bs 1.Q&lt3. k,'~ appx".ci;.>>" your coop xation zuv3 loo'.c Roaia.rd to yom xes"ouse. Very C:ruly yoLLxs, E!Bit/SS/c".1

FLORXDA ELECTRIC PONER COORDINATXNG GROUP TECHNICAL ADVXSORY GROUP A meeting of the Florida Electric Power Coordinating Group TAG was held in Tampa, Florida, on June 12, 1975. The meeting was called to order at 10: 00 a.m. by Chairman, Mr. J. D. Hicks. Those in attendance were: E. L. Bivans Florida Power & Light Company C. C. Blaisdell "Lake North Utilities Authority R. T. Bowles Florida Power Corporation Rod Brooker Tampa Electric Company R. N. Cochran City. of Lakeland M. R. Gent Florida Electric Power Coordinating Group R. C. Kuether Jacksonville Electric Authority W. R. Lesnett City of Lakeland S. L. Livengood Gainesville/Alachua County Regional Utilities H. C. Luff Orlando Utilities Commission t Harry Luff commented on the May 23, 1975, Pooling Task Force Meeting and read the Task Force report submitted to J. D. Hicks on June 4, 1975. The report proposed the following for consideration of TAG: POOLING TASr< FORCE REPORT

1. The Operating Committee should be commended for their excellent= work in completing the Power Pooling Report.

2. The Power Pooling Report should be returned to the Operating Committee for minor changes and corrections prior to issuance of the report for general use.

3. The Power Pooling Report recognizes that the members of the Operating Committee are presently operating as an informal link power pool and consideration should be given to formal recog-nition of this fact.

4. Action should be taken, where necessary and mutually advantageous, to complete the transi-tion from an informal link power pool to a formal link power pool. Initial action to be taken should include the following:

6-13-75 Page 2 (a) Establish uniformity of interconnection contracts between Operating Committee'embers. (b) Continue to encourage joint'wnership in large generation projects by large and small utility systems and implement the necessary joint generation and trans-mission planning to accomplish this objective. After some discussion, it was concluded that Hicks would ask the Operating Committee to appoint a task force to draft appropriate interconnection contract schedules to be used as a guideline for contract standardization. The TAG Pooling Task Force was asked to draft a pooling agreement which would reflect the present status of pool operation as it exists today among Florida generating companies. E. L. Bivans was asked to coordinate with the Committee to make the necessary minor 'perating corrections in their Power'ooling Report. These corrections will be sent to all present holders of the preliminary report and additional copies of the final report will be prepared for distribution out-side FCG. M. F. Hebb, Jr., Formula Task Force Chairman, was FORMULA TASK not able to be presentat. the meeting and no report FORCE REPORT was submitted. R. C. Kuether reported that all systems had responded favorably for approval of the final drafts of the Florida-Southern Reliability Coordination RELIABILITY Agreement with the exception of Florida Power COORD'INATION Corporation and City of Fort Pierce, which had not AGREEMENT been heard from to date. I/icks will ask the Executive Committee for app'roval to circulate the final agreemeni for signing. Relative to the Florida Public Service Commission letter of May 1, R. T. Bowles suggested that an FCG planning workshop should be held to better FPSC LETTER acquaint the Public Service Commission and Division OF MAY 1 of State Planning staffs with the activities of the FCG Planning Committee. This workshop would serve as a forum for exchange of ideas on some of the questions raised in the FPSC letter. TAG supports the concept of the workshop. Bowles will prepare

October 17, 1975 Hr. 'J. D. 1)icks Tampa )'.lectric Oompany P. 0. Box 111 Tampa, FL 33601 Dear Hr. )licks'. The System Planning Committee met yesterday in Tampa to determine the method for developlnp the information necessary to answer thc Public Service Commission's questions in their letter of Hay 1, 1975. The study will be developed as a comparison of an independent plan and a state plan. The assumptions used will be the same for both plans. They are:

1. Florida Power 8< Light's capital, fuel, and operatinp maintenance cos ts will be used.

2. The only assumption that will develop vill be different is that each utility w'ill not provide any type of Joint a plan that participation between companies except the one that is already in existence Crystal River 3.

3. A 16-month time period was felt to be the minimum time period required to provide the information the Commission requeste<l. Tf we were able to start by February 1, 1976, the stu<ly should be completed in June, 1977. I know this sounds like a long time, but the Committee feels that we ace<1 sufficient time to develop a stu<)y to present the facts as we best envision them.

The following is a short outline of how the System 1'lannins Committee feels the study should be approached:

1. Forecasts a composite'load area will be <levcloped and forecasted for both plans.

2. Generation Plan a central. ized loon of load probability criteria, selected area sLtes, the required mix of generation, and nn optimal computer progr<<m will be used for the generation plnnninp ao that wc can relate reliability and cost to unit size, etc.

3~ 'ransmission plan a transmission system will bc developed'which transfers reserves between ar<.as, a system will be developed which shows ownership of the lines proportioned by the area in which they fall, and the load flow analysis will ba performed for all 20 years.

Hr. J. D. Ilicks Page 2 October 17, 1975

4. Results the independent plan will be compared to the state-wide plan on capital operation and maintenance cost per company.

The estimated coot of the study is ,"325,000 which io broken down as follows: 0 . Load Flow Analysis $ MO,Onn Loni, RanI,"e Transmission Study 51,000 Looo of I.oad Probability Study 48,000 Optimal Generation Study 25)000 Production Costing Rune 12,000 brea ForecaotinL, 5,000 Report Analyoio and WritinI3 34)000 Continpencies 50 000 TOTAL $ 325)000 The System Planning Committee feels this is the minimal approach that can be tal(en to provide the answers to the Commission's questions in their letter of Hay 1, 1975. If there io any additional information that you would require, please feel free to contact me. Sincerely yours, R. T. 13owleo ) Chairman PCG - System Planning Committee R CI3/lw cc: Hr. ?I. F, llebb, Jr.

      >Ir. II. G. Wells System Planninp Committee

ji,~)(i,=z t ORt ANDD LlTlt lTtEB COMMlSSIC3N 500 SOUTH ORANGE AVENUE ~ P. O. BOX 3'l93 ~ ORLANDO, FLORIDA 3260P ~ 305/641-1230 November 12, 1915 Mr. J. D. Hicks, Chairman FCG Technical Advisory Group P. 0. Box 111 Tampa, Florida 33601

Dear Mr. Hicks:

The TAG Pooling Task Force met this morning to consider composing a Florida Power Pool Agreement draft. The Task Force discussed pooling alternatives ranging from a fully integrated power pool agreement to more limit ed concepts. Each member of the Task Force was asked to express his views as to the appl-'cability .of the various alternatives. Xt was determined at this time that Florida Power and .Light Company does not feel that it a pooling agreement at, this time. is in its best interests to enter into The members of the Task Force feel that additional time is needed to explore possible alternatives to a statewide pooling agreement before a Task Force recommendation can be submitted to the Technical Advisory Group'. Very truly yours, FCG

                                                                  ~~               v Technical Advisory Group HCL:vc cc:  Mr. E. L. Bivans Mr. J. E."Burris Mr. B. L.      Griffin Mr. R. C.      Kuether bc:   Mr. C. H.      Stanton Mr. L..E. Stone Mr. Xrving Reedy Mr. D. E. Moore GROVER C,BRYAN       DICK GIMiP60N               'GAM G. WILKINS .      CARL 7. LANGFORD       HENRY 7. MEINER PRESIDENT C~": 'l FIR67VICEPRE6IDENT
                               ....<~!ION  .;;.'!'. 

6ECONDViCEPRESIDEN7

                                                                -','gEN76 MAYOR       IMMEDIATEPASTPRESIDEN7 r-'FNI'RAL MANAPcR

nc ~

                   ~ ~

BEFORE TIII! FLORIIIfh PUBLIC SERVICE CQfIISSION In rc: Gcncral investigation to ) resolve thc problems bctwccn thc ) DOCKET M. 760006-CI Grid Bill, Florida L'lectric ~

                                             )

Power Plant Site Act, and Comm- ) ission ratcn>aking. )

                                             )     ~    ORDER NQ.       7080 The following Commissioners participated in the disposition of this matter:

WILLIAMT. hRYO, Chairman 1>IILLIAM H. BEVIS PAIJLA F. HANXINS

                                                                                   ~c ORDER    INSTITUl'ING INVESFIGATION A'.ID TYKE BY TIIE CNItIISSIO>Y:

This proceeding is initiated on the Commission's own motion pursuant to Section 120.62, Florida Statutes, for the purpose of in-vestigating implementation problems arising from the interaction be-tween Chapter 74-196 and 73-33, Lavs of Florida, popularly kno>>xx as the Grid Bill and the Po>boer Plant Siting Act, and thc Cennission's general responsibilities under Chapter 366, Florida Statutes. Jurisdiction is vested in thc Commission by Chapters 73-33 and 74-196, Laws of Florida and Chapter 366, Florida Statutes. It is our intention to undertake a thorough and comprehensive investigation of this >natter. This includes, among other things, analysis of the implications of the Plant Site. Act on the Grid Bill; service characteristics of thc state as a >>hole; present and futuro transmission intertie needs and plans; present and future needs and plans with respect to >>heeling and related problems; thc consequences of future uncertainties in availability and price of fuels and of plant;. fuel emergency contingency plans; and related matters, in-cluding economic uncertainties. I>'ith respect to such issues, thc Commission vill ascertain what action, if any, needs to bc under-taken pursuant to the forementioned statutes, and >>hat revisions, if any, should bc made to those statutes. Because of thc nxm>bcr and complexity of thc issues involved, the Conxnission >>ill conduct this investigation in several stages. Thc Q.rst ste will bc submission of certain preliminary data as he carter orderc . The scco.fI s will hc an infor>nal >>coxkshop Ior interested parties an Conxuission staff as hcrcaftcr ordcrcd to further define issues, followed b submission of statements thcrcon t>y thc parties. Ti>xs su>n>xssxon investigation can then h< transi'orred 'into a Cornel >rncecdi sufficiently we clxned to result in the most cxpc xt,ious ttcatmcnt of thc >natter. Based on thc foregoing, it is thercforc, ORDH0 D by thc I'lorida Public Service Conxnission that a for>nal agency investigation is hcrcby initiated on thc matter of in>plemcntation problems arisinp fren thc interaction of thc Grid Bill, thc Plant Site Act and the Con>n>issio>x's gcncral rcsponsibilitics under Chpatcr 366, Florida Statutes. It is furtl>cr s ORDERED that each c,cnr >atinv u ili ', includinp municipal utiiitics, subunit infonant.ion rcsnruins ftfct coss~t~s,~ssqi wLsts, or n rotation that a utility eicos not possess such iafonoatioa whcrc appropriate, topcthcr with nn explanation of x>ndcrlying assumption, no later than Fcbru:>ry 6, 1976, on fox>>>s attached hcrcto. It is urx cr I f'

     '/

,/.

       ~   DOCQT     M. 760006-CI

~

   .      'ORDER NO.        7OSO PAGE  TllQ-I  I      j  Il ~l u  ~     g> ~   ~   ul      ~~ t ~ sgr~rg~    ~   ~ ~ g  I  ~

ORDERED that all electric utilities regulated by thc Coaniission, including those municipal systems and rural electric cooperatives over, which the Commission has jurisdiction for thc purposes sct forth in Chapter 74-196, Laws of Florida, and thc Florida Electric Power.Coodinating Group, Inc., as well as'other intcrcstcd urged to attend an informal conference with thc Commission staff persons'rc An agenda, therefore,>>ill bc issued in accordance with 'allahassee. the requirements of the Administrative Procedure Act. By ORDER of Chaiman lYILLINIT. h5LYO, Commissioner WILLIAM! H. BEVIS and Coraaissioncr PAULA F. ERBKIiVS as and constituting thc Florida Public Service Concussion, this 15th day of January, 1976. 1 y ~

                                                                        .'Pilliam B. DeMilly COHHISSION CLERK I

C.. a. >, ~

         '(SEAL)
                  'I
                                                       'I
                                                            ~     lI
                                                                                  '  e
                                                                                                        ~ il
                                            \

I

                                                ~ ce ta     ~   ~ z
                                                                    ~
                                                                         'V                           I t

g I"

                                                                                                   ~              I
                                                              ~ l                         ~ ~

UTZI ZY SEBRING UTILITIES COMMISSION

                                  ~ .FORECAST OF CAPACXTYF DEMANDF AND SCHEDULED MAXNTENANCE AT TZWE Or SUl S R PEAK Qa Total               Firm                  Total Znstalled           Cabacity             Available        Peak          Margin Before             Sched. Margin After Capacity                                Capacity                           Maint.                Maint e          Mainte
                     ~lnI       I Xmport 1 fI.T                MIN Demand
                                                                                                                        'II       'I MM        )9 oz PK; I

1966 20. 4 0 20,4 0 0 0 0 0 0 1957 20,4 . 20.4 9.1 11. 3 124. 2 0 ~

11. 3 124, 2 1968 23. 1 0 23. 1 8.6 14. 5 168. 6 0 14. 5 168. 6 1969 23,1 0 23. 1 10. 9 12,2 111. 9 0 .12. 2 111. 9

 ')  570                23. 1                  0                   23. 1        14. 2      . 8.9       62. 7              0        8. 9         62. 7
                                                                                          ~

1971 23. 1 0 .23. 1 15. 1 8.0 53. 0 0 I 8.0 53. 0 1972 23. 1 0 '23. 1 ~ 15. 2 7.9 52 ~ 0' 0 52,0 1973 23. 1 2~ 0 25.1 . 18. 8- 6.3 33,5 0 6. 3 33. 0 1974 23. 1 3.0 26,1 23. 0 3. 1 13. 5 0 ~ 3.1 13. 5 1975 23. 1 6.0 29,1 21. 9 7;2 32. 9 0 7.2 32. 9. 1976 23. 1

                                                    '.0 29, 1        24. 9        4.2       -16. 9               0.       4. 2         16. 9 1977      ~ ~         26. 8                                                   27. 4
  '978                  26. 8                                                   30. 2 1979                  26. 8                                                   33. 1 1980.                                                                         36 ~ 4  ~

19~1 40. 0 19o2 44. 1 9ol 3 48. 5 1924 53. 4 1985 = . 1986 1587 1988 . lc89 1990 2500 a) C.pacity addit'ons and cha..ges nns" be cede by M~431 ".o bc considered in'effect at thc t)na'f he so-,n r peat. All values are scrber Met I'.I. b) Actcal 19fd through l.'73 . ~Foolootoo

  ~ ~ o    ~     ~ Po    P I l)o i  .
                                       '

• Ant leg) t I il a(yp I'hl If fl)) tf.

S a 9 9I

t ~ 1

     ~

Pean 2. Page 1 of 2 UTILITY SEBRING UTILITIES COMMSSION HISTORY AND FORECAST 0" ENERGY USE

~  ~

RURAL 5 RESIDENTIAL COMI!ERC IAL ~ INDUSTRIAL ~ ~ AVERAGE KWH AV . RAGE* AVERAGE" NO. OP CONSU~!PT+0 ÃQ ~ OP VO. OP YEAR (I) G'AH CUS O>~RS PER CUSTOMER GWH CUSTOMERS CUSTOYiERS 1966 1967 (2) 16. 6 3, 016 5, 497 12. 0 588 None. None

13. 584 n n 1968 (2) 18. 3 3, 089 5, 924 3 ~

1969 (2) 21. 9 3,338 6,560 14. 3 592 1970 (2). 27. 0 3, 482 7, 744 16. 5 622 1973. (2) 29. 8 3, 826 7. 777 16. 9 bby 1972 35. 8, 4, 237 8, 449 21. 2. 605

                 '973

43. 6 4, 691 9, 294 23,1 606 1974 44. 5 8,684 22. 7 613 II 5, 124

                                                                                                       ~

3.975 46. 2 5, 374 8, 605 24. 5 632 1976 49. 3 5, 810 8, 468 23. 8 630 1977 53. 5 6, 370 ~ 8, 399 24. 7 ~ 640 1978 .59. 6 6, 930 8, 600 25. 5 650 1979 66. 1 7, 500 8, 813 26. 5 660 1980 73. 4 8, 170 8, 984 27. 4 670 ~ ~

                                                                                                                                     ')

1981 81. 2 8, 840 9, 186 28. 4 680 1952 89. 8 9, 620 9, 335 29. 4 690 1cp3 99. 3 10, 510 9,448 30. 4 700 1984 109. 7 11,400 -= 9,623 31. 5 710 1 985 1936 1987 1989

          ~9c0 2000
                         *Use Ave"age o en'-'of-a.onth custome"s       for. the calendar'ear.

b) Ac"ua3, 1966 "h ough 3.975 rt~c~l vial en'!!ne o/30 cvccvt aa not> R.

                                                                                                       ~
                                                                                                         ~

Po~ .2 Pago 2 of 2 UTXLZTY SEBRING UTILITIES COhfMSSION MD FORECAST OP ENERGY USE 'IZSTORY OTHER TOTAL S REET 6 -SALES TO SALES TO 'ALES UTXLXTY NET IIXGHVAY ~ ULTXM'E ULTXMATE ~ POR USE & ENERGY LXGHTXNG CO'ASU>!ERS CO>HSU:"IERS RESALE LOSSES FOR LOAD Pw(I}, ~G."4 v'H GI'IH Gi>H ~GMH 2) G>lH ~ ~ 1956 1957 (3) None ~ 31.4 (4) None '2. 0 (6) 33. 4 1968 3 II 34,1 (4) II 2. 0 (6) 36. I

38. 7 (4) II 2. 7 (6) 41. 4 970 (3) II 49. 2

~ 971(3) 49. 7 4 ~ u 5.H(1 54. 9 1972 II 57. 0 II 8.4 65. 4 1973 u 66. 7 9,4 76. 1 1974 67. 2 'l l. 7 78. 9 I > ~ 1 975 n  ; 70.7 9.1 79. 8 >~ 1976 73. 0 )3.0 86. 0 1977 78. 2 n ~

13. 7 91. 9 1978 85.1 II ~ >

14. 9 100. 0 1 079 6

                                                                          '2.

16. 2 108. 8 u 100. 8 17. 7 118. 5 1 981 1 092 )09. 6 19. 2 128. 8 15S3 u 119. 2 20,9 140. 1 j~

                                                                                                                                            ..l I

j 19S4 129. 7 22. 8 152. 5 ~ ~

                                                                                                                                                 ~

19S5 141. 2 24. 7 165. 9 1586 1987 19SS 1989 1990 sNot estimated after this date. 2000 Footnotes: (1) On fiscal year basis ended Sept. 30 except as noted. (2) Includes street lighting, City and interdepartmental use as well as losses except as noted. (3) Based on fiscal year ended May 31 ~ (4) Includes lighting and city use. (5) Included in Utility Use h Losses.

         ~ jj ~       >. ~ \

f c Porn 3 UTXLXTY SEBRING UTILITIES COMMISSION PLANNED AND PROSPECTXVE GENERATING FACXLZTY ADDXTXONS AND CHANGES THROUGH '2000

                                                                                                                                       ~e 1

CONST, CO)l'L XN GEN MAX NET CAPABILITY UNXT LOCATXON PVEL START SERVICE NAMEPLATE SUP>1ER HINTER PLY NATE NO, (EF '.EOHN) &YP'o PRI ALT ~vo YR VO/YR> ZH MW MW Crystal River' 3 Citrus Co; N - . 6/68 9/76 3. 69(1) ~ 3. 69(1)

                                                                                                                                   ~   ~
     "Th~s column     is to  he i:scd also fox dates of "etieen.ents and changes.

Footnotes: (l) Crystal River 83 is owned jointly by twelve public and private Florida utilities including Sebring and the principal owner and operator, Florida Power Corporation. Scbring's ownership share fs 3.69 hfW

                                                                                                                                   ~ ~

FORM 4 UTILITY SEBRINQ UTILITIES COMMISSION FORECAST OF PLANT CAPITAL XNVESTIMENT ($ /KW) COM II COAL OZL . STEA.'4 V/ STEAM v/a COMBUSTION COMBINE --i1( NUCLEAR ET-AN DESULFURZZATZON DESULFURIZATION TURN YNE CYCLE ~ i

                                                                                                                            ~ ~  ~

Y 1975 ) 1976 1977 $ 553/1'1) ~ f~ A g 1978 1979 1980 1981 1982 ~ ~ 1983 Y ~ 1984 1985 ~

                                                                                                                                        ~

I 1o86

                                                                                                                                   ~

1987 1988

                                                        ~
                                                      ~

989

~ 90 2 A 0 YY       Footnote: (1) Total direct construction cost as estimated by Florida Power Cornoration of Crystal River

Form S QT>LlTQ SEBRING UTILITIES COMMISSION FORECAST OP PUEL COSTS NUCLEAR COAL

                       .IGii SULFUR ' LOi') SULFUR
                        $        e                   C           OIL 86           SULPUR             01L 52 CEAR    ~C/MMB U       TON      HBTU      . TON  . 24BTU       BBL         MMBTU CONTENT       ~BBL            i 'vfBTU 1975                                 None                    11. 93     189. 36                12. 87        218. 92 1976    22. 5                           II                   13. 12     208. 30                14. 16        240. 81 1977    g2. 5                           n                    14. 44     229, 13                15. 57        264. 89 1978    19. 5                                                15. 88     252. 04                17. 13        291.38 1979    18. 6                                                17'7     '77.24                   18. 84        320. 52 1980    17. 6 1981    18. 6 1982 ~

19. 5 1983 22. 7 1984 .23. 4 1985 24. 1 1986 24. 8 1387 25. 5 1988 26. 3 1989 27. 1 1990 27. 9 2000 28. 8 Assumed Heat Contempt"t O6 Of1 ~ 150,000 Btu/ga1. O2 OL3. ~140 000 Btn/gal. Coal ~

0Not estimated after this date.

Poem 6

                                                                                      ~       ~

UTXLXTY SEB ~G UTILITIES COhMLSSION I OTHER UNXT 'DMA - 1975 (EXCLUDXNG ,~ FUEL)

                           "L VELIZED              PULL LOAD             0  6 M 5~

o CARRYXhlG HEAT RATE COST t CHARGE BATE (MXLLS/XMH)(2) L

                                                   ~DTU KWH                               I  ~I

~ 0 0 1M Fuclea" Nf Coal w/o desulufurkzatkon

        <'.N w~".h desul<<

c ur za on

12. 65 N'rF 03.1 (1) Nh, 14, 000 6. 36 0  !<M CoWined Cycle Turbine

                                                                                           ~     ~
                                                                                              ,I
                                                                                          ~     ~

f (a) indica"e size (Nameplate rating) Footnotes: (1) Steam tu bLae (2) Cost per kWh oI net generat(on

Florida Electric Coordinating Group Technical Advisory Group Pae2 with a total expenditure of some $ 350,000." Chairman Hicks was to make this recommendation to the Executive Committee on January 28 in Miami. Mr. Gent explained the problem of coordination between T.A.G. and SERC-TAC. He recommended the SERC-TAC Subregional Representative be made an ex-officio member of T.A.G. The recommendation was unanimously approved. Mr. Stone will be invited to'ttend future meetings. Mr. Gent reported on the success of influencing the format of F.P.C. Form 12E-2. After some discussion on the fact that the data required by April 1 is almost ident:ical to the data due February 13, Mr. Gent was asked to request omission of the first filing. (See Mr. Gent.'s letter of January 23, 1976, attached). Mr. Luff reviewed the history of the Pooling Task Force. After some discussion Mr. Bivans proposed that the Task Force continue to function"'and to study the proposal of a pool of peninsular Florida without the. Florida Power & Light Company system. This recommendation was approved. Mr. Bivans gave a brief report on Florida Power 6 Light's negotiations with Georgia Power Corporation for a trans-mission interconnection. Their negotiations are still incomplete. The meeting was adjourned at. approximately 1:30 p.m. Florida Electric Coordinating Group Technical Advisory Group meeting of January 27, 1976.

SKHVI CK COMMISSION 700 SOUTH AOAMS STREET I'I)%IHISSIOIISILL TAI LAHASSEE 33304 WIILIAhlT. hlAYO, OllhlllbIAN TELE&<ONE 004 488 1001

   $ 1LL IIllVIS b11LS. PAULA F, HAWKI.'IS February 24, 1976 TO'LL PARTIES OF            RECORD RE:     DOCKET NO. 760006-CI - GElVERAL INVESTIGATION TO RESOLVE THE PROBLE)I)S BEl')1'EEN T))E GRID BILL, FLORIDA FLECTRIC PO)l'ER    PIM')'ITE ACT, A%) COII&)ISSIOIV RATEiiMING.

As provided for in Order Number 7080, there will be an initial inforlnal workshop in this 'Docket on March 9, 1976, presided over by Dr. Jay B. Kennedy, l=zecutive Director. This workshop will commence at 9:00 a.m. in Room 21, House Office Building, rather than in the Conlmission's offices as set forth in the Order. The primary purpose of. this workshop will be to discuss procedure. and to give consideration to the need for subsequent workshops in this Docket. Inherent in the workshop format is the need for a >>orking group of reasonable size. Accordingly, the parties in this Docket should begin to deterlnine among themselves appropriate individuals to form a working group, bearing in mind the fact that the nccd for particular individuals may vary as the topic of a particular>>orkshop varies. As a starting point for discussion, and to facilitate selection of appropriate individual;Ils, attached are specific study topics suggested by thc Commission's Engineering staff, and related matter. Conllncnt on thcsc sllggcs ted topics is IIlv)ted 'lt the'>>'01'kshop, and a further time>>ill bc provided for written conuncnt or suggested changes. As stated, the prinlaly purpose oF the )L)arch 9 works)lop is to develop procedures for use in this Docket. WILLIAM) )3. DHLIII.LY COED) I SSIOIV CLE)di Att lchlncnts (SEAL)I

PUBI.IC SERVICE CO>iRJSSIOA SUGGESI'llJDY CATEGORIES DOCKET l>0. 760006-CI The following is a study outline suggested by the Com)))ission's Engineering Department for this docl<et. The proposed sti)dy is divided into three major areas of investigation with some other related factors:

1. Full Inte rated Generation Ex ansion Three generation expansion stiidies are envisioned:

one for peninsula Florida as a whole and one each for a western and eastern subregion as pictured in the )ttachod map. The area liest of the App)lachicola River is e'xcl))ded from generation exllansion studies because that area is fully integrated into the Soi)them Company power pool, and because that ')rca is ilot effectively intertied >>ith the peninsiila. Each cxl)ansion plan >>ill be compared to a h:iseline consistii)g o, the ciiri.cntly plann(d>>enor;)t)ng>>nit a(lditions nf (')ch i)ti1ity. The (>enerat ion ('xll-)). ')on pl )ns for <<:ich region will opti)))i"c all p)'oiect<<(1 cost,s )'c'1:)1('d to g>ene)':lt )on>>') th i)nd>>'1thoilt 1!1<< constr))i>>t of ))))cle;)r;)nd fossil fue] <<)ivc)'sifi<<;it ion, both Ils t 0 Jv>i 1')b I 1 ) t y:)nd 1"it ('s 1 L.'ill))'ge(l t0 c> >n+) )I'le) s .

   'Jhe   r('I!Ional >>('i)ei':it ion expansion        sti)>11<<>> sr)ould )'(         t ](ci load    )i)cN3cls  only; act;iil(d tra)isml:sion li))e              I)))d c:  ~

i)t)"11):(( dispiitch stii(lies shoiild l)e m;i(le ()I)ly nl'ter. a (>en<<)':)t ii>n (Ajla))sion plail is, sel(ctod

e PSC SUGG&rED SruOY Tl<0

                          'AGE

2. Centralized ~Co uter Dis etch for Current Concretion/

Yransmicsion tine l~ix ansion Plans This study is to examine the. economic feasibility of a peninsula wide central dispatch capability which selects the most efficient generation mix for any given load pattern. Data for this study will bc obtained from the presently planned generation and transmission line configuration.

3. Contin enc Plans This area of. study is to develop contingency programs to be implemented pursuant to Chapter 75-256, Laws of Florida, if a fuel shortage emergency is declared by order of the governor..

Detailed transmission line,'centralized dispatching, and other studies should be made only iE fully integrated gcncration expansion practices are found to provide benefits I beyond that already dcrivcd from the existing informal arrangements bctwccn clcctric utilitics. As a consequence of the studies o<rtlincd rhoyc inhcrcnt corrfljcts, if any, among thc underlying statutes should hccoinc <<pp'rrcr)t, and appropriate remedial legislation can then bc suggcstcdt.

PSC S<<<<; IF!STBII STUDY Ch'I'I:<>Ol'I I:0 O'I"I:I:T '.IO. 7r>0006-C I I ~ <I a<<XI

                            ><l ~
                            <>I 0                                          <l> <>I                                   I+

0

                                                                                                                         <>I
                            & CJ                                               +                                     0A                                 0
                                                                           <>I                                       <>:

M <>I a al <>

                                                                                                                                                        <O IQ                                                                                                                      O a

I:Xl'ANSIOM STUDY IV <: In': i O) GCNEI(ATIOV EXPAVSION l I) PEW I NSUI A 0 I H> FUEL C CAP 1TAI> COST FSTI>1ATES

   . GFtICILATION FINANCIAL FACTORS RELIAIIILITY               I CRITL'Rlh                                                                                                                                              l.-)

WESTERN UNIT DATA PENINSULA (IIEAT BATE) } F.O.R. ECT.

                                }
                                 }          PENINSULA LOAD HODEL FLORIDA PENI!:SULA EASTERN PEN INSUIJl                                  OPT  1 HI Z CD                                                                               (t I*                                                           FOR HIHI!IUH                                                                      I   ..)'

GENERATION

                                 }           WESTERN                                         COSTS PEN IN>SUI>h I
                                         +  PENI NS(ILA I

FLORIDA t OPTIHI ZED t 'EASTCRN FOR PEH INSULA HINI IUH COSTS I SUD.IFCT TO TI!E CONSTR>>' NT WESTDRN ANDOt'UCI.IÃ>R PENIHSUI.A FOSSIL D1 YF RS I I' CATION ~ l>01)UCTI ON C Chl' Thl Ol' NDIUII><>hl I OSTl NG PhhNS OM Sh:lit

                                }     ..:.,"

r<hsts hs ION I'LhtIS

                                                   >1OIN'<.Xl'ANS>

O2 PENINSULA Wl UC Dl SPATCII I'Ot<

URRCNT TRANS!IISS IO:

GCNFIIAL EXI'AtlslOM PLANS Il'UII I I'ITIN<A"'I'I> DI:Vt:I.OP CO'ITlN<:LVICY PLAN,> F:;:. OUI,IN<, I.,Itis>TI I'>'ON<>.'.I I< I'I hi<LE: '1'III'=- Pckl'<)l,>I TI<ANSH I SS I <:;: h! I,Y I LINE, <. I V I'I::>I~ I Zl:II I Drsp.iv;.-," 0:It: R ~ S'I'tlt I L S Fr Nhr. Rrvnt:T I'Rl:I'hl(ATION

                                                                                                                     ~'I'.S.(>>

P!<I::IIUVTATION To F<ilt At'I'I;<<V'(i. 1

     ~ LOAD   )IOI<lil. <XVI Y     - DOthll o<<>I'vo) txel <ltt<1>htrh I'tu<rle<< exoln<li <) ht           th<<1 Li<><o <1<<<'n nt>n<><<<<

of )>ON l )><>nt L>>'<>>n<>>i ><5) o<I I l<<< i >I<>t<<) lt>

ORLANDO LITILITIES OMMISSION t 500 SOUTH ORANGE AVENUE ~ P. 0. BOX 3193 ~ ORLANDO, FLORIDA 3280'2 ~ 305/841-1230 March 15, 1976 Mx. J. D. Hicks, Chairman Technical Advisory Group FCG P. 0. Box Tampa, ill Florida 33601

Dear Jim:

The FCG TAG Pooling .Task Force met March 3 to review comments on Draft 0 of tne proposed Florida Electric Power Pool Agreement. The meeting was attended by Bill Griffin, Ray Welch, Ron Kuether, Harry Luf f, Jim Blanchard and Nike Gent. Florida Power Corporation submitted a new proposal patterned after the Nid-America Powex Pool Agreement, which was adopted by the group as Task Force Draft l. After review of this draft and general discussion, the Task Force agreed to have a technical committee, chaired by Irving Reedy, review and make necessary changes in this draft before final adoption by the Task Force. The Task Force is stillSouthern studying the questions of interfac-ing the FEPP with FPGL and Company and the integration of FEPP within the framework of FCG. Ron Kuether has mailed copies of Task Force Draft 1 to Ernie Bivans and Grady Smith so that they may consider the interfacing question fox'ater dis-cussion. (See attached letter.) We plan to keep you informed of the Task Force activities through these informal summaries until final recommendations of the Task Force are ready for submittal to TAG. Very tx'uly yours, H. C. Luf , Chairman Pooling Task Foxce henri= HCL:vc Enclosure cc: Attendees bc: Stanton; Stone, Reedy S Moore Nr. Ernie Bivans DICK SiiViPSQN SAM G,WILKINS HENRY T. MiEINER CARL T. LANGFORO GROVER C. BRYAN PRESIDENT FIRST VICE PRESIDENT SECQiND VICE PRESIDENT MAYOR IMMEDIATEPAST PRESIDENT

                         --- ~ ~ -  ~ ~    ~ ~  rvr~inhi,         nnrclnrhi'r

r r o rr r rr rr wP' a lr r. r r. s E a v r r r: l: f) M M 1 S S I 0 5

                                        '4r I IIIIIWWlt41                                                                                           ;I ~ I 'i Nl1 1 hlIhV';
                                                                                                                          ~     1          'IlI   I I

~ JAVI Y hlAYII,I rlhlllIIIAN Id'IIJ lhl 1 hl lb'!'1 I I,I 11 1l I'lll>41 ~+II I>'~1 ~ '~ '= llll.l.rlv.vr.'1 birr~ I'hlIrA Y IIAWhlN< b1arr:h 16, 1976. TO: AI.L PAR1'IES OF RE(:ORD RE: DOCKE1',O. 760006-CI - GENERAl; INVL'SI'IGATION TO lU!S()LVE i'ilt-; PROBLHS BETi'r'L'EN TliE GRID BILL, FLORIDA ELECI'RIC P()h1:R AQ', AND C(MIISSION RATEQKING. PIJW'ITE Pursuant to Corrrmission Order No. 7080, an informal workshop >>as held March 9, 1976, in the above styled docket in Tallahassee.- At the workshop, the three phase study outline suggested by the Commissiorr staff and previously mailed. to all parties was presented and discussed. Phase I consists of generation expansion planning studies; Phase li consists of a study to determine the feasibility and desirability of centralized dispatch; and Phase III consists of contingency planning for uel related emergencies. Since Phase II, and to some extent Phase lll, cm to follow sequentially and to build on the data generated by Pirrsc I, it,was decided'o defer Phase II and Phase Ill at this time, especially since the same resources in people.and equipment >>'ovid-be required Phase I and Phase lI. for'oth A specific proposal to accomplish the Phase I study was presented by several representatives of the Florida Electric Po>>cr Coordinat.ing Group, Inc'., hereafter FCG, an association formed by the investor-o>>veri, municipal and rural electric utilities which account for virtually all the generating capacity in Florida. FCG has both operating and plar.ning functions. 1'he FCG proposal, consisting of a detailed study rcquirirrg about 58 weeks, was discussed. The study is divided i.nto parts, consisting of: development oF a composite data base; developmc>>t of u>>sited individu'ri system and peninsula system plans; development of thc peninsula sited generation plans", development of the final report. Copies of the were distributed to all parties at the workshop; additional F(:('roposal copies are available on request to FCG or the Commission Clerk. Thc FCG proposal was deerrred a satisfactory approach to the Phase I study requirements. Gulf Power Company, serving that area generally west oi thc Apalachicola River, will interface with thc Ph rse I study, but will not be a participant therein, because Gulf is primarily clectrir;rlly intertied >>'ith, and is a part of, the Southern Company system.

Ilx'.hl I'). /lsnllfll> <'.I I~i I AT'..Oe) I(>, I>>7< I:ol lowing an i<<it in I i>>gati'It lonal In.'riod, tho I'ha>>o I >>t<<dy wi I I hcgin May I, I976, and will he coiid<<cted primarily l>y the I:C(i System Planning Committee, with review hy certain Commission staff members. Interim reports will he mailed to parties of record and discussed at s<<bsequcnt workshops. 'I'he twelve iveeks required for thc first part oF thc Phase I study will end July 16, 1976, and the worl'shoI) I'or that part is now shceduled for .July 23, 1976. In thc event that work>>hop i>> held in I'allahasscc, it will begin at ll:00 a.m. to allow parties to fly in that morning and Ieave the same afternoon. S<<h>>equcnt workshops will be shceduled as appropriate, and all parties will be afforded an opportunity to participate therein. A list of the part.ics of record is attached; persons present at the March 9 workshop are indicated hy an asterisk. IOTLLINI 8. DBIII.LY CQ NI SSIOi'l CI.F.RK Attachments (OkA L)

A'l'TA(;IVII';HT - DOCKET NO. 760006-CI - NAPiCH 16, 1'976 I'<<rr<<<< lkiv<<r I! I<<~ tric (:coper;rtivc, Enc. I'l".1 rrl I'i<<t Irov I 51()

                             ~

IU:IIII IIIII:I I' l) I' t I:r 33873 trh<<l <<rruhc ltrrr:r I ill<<ct r ic Mcrrilrcrship (:orporat iorr I'ost t)I'I ice. Box 98 Nahrr>>t;r, Georgia 31553 I.cc (:o<rnty Iilcctric (:ooperative, Enc. Post Oflice Box 345S Nor'th I:ort flyers, Florida 33903 Gull Coast I:.lectric Cooperative, Enc. Post Oflice Box 217 IUc<<'ahitchka, Florida 32465 Glades Electric Cooperative, Inc. Post Olfice Box 517 Moore Haven, Florida 33471 Florida Keys Electric Cooperative, Inc. Post Of'fice Box 377 Tavernicr, Florida 33070 City of Alachua Box 8 Alachua, Florida 32615 Barto<< Municipal Light and lUatcr Department Box 1969 B'rrtow, Florida 33830 Blo<rntstown Municip rl I:.1ectric I)cpartmcnt 125 IUcst Central Avenue B loulltsto161, Florida 3242 I lkrshnell (Jti lity l)ep:rrtment Box 115 l<ushnc11, Florida 33513 (:i ty ol Ch rt t;rchoocircc City llal I (.Ilrlt taclroocllcc, I'101'ldrl .~2.> C le@i s ton I 1ectric;md 4';r tcr Sys tera Box 698 Clewistorr, I'lorida 33440 Fort Mctrdc Electric [)cp;rr trrrcnt Box S18 Fort I fcade, Florida 33811 City of Gaincsvillc 555 So<rtircast Fifth 'Averruc Box 490 (i.rincsville, Florida 3.601

St:rr'kc I.iglrt;>>)rl Ki;)ter PI;mt l)rrx I()5(> St:rr'kc, I'lr)r'i(i:r 3 ()I) I Vcr'o I<c<rcll lhllllclprll I Irllrt I)ox (r7 Vcro l<c;rclr, I'lor'id;r 32!)(r(l IArrrchul;r ~hrnicipal I.ir>ht ancl I>ater I)cpartmcrrt i<ox 818 li'arr<<htr I;r, I'lovicla 33873 lfi I I i>>ton ~lurricip;ri Iilcctvic I)clr:rrtrrrcnt lfr I 1 s t oil r I'] or'd(l .l ()r)() I'rrlr I rc ('.orrr)>>c I

• Ilol land l<ui lding Trrl];rlr:rssce, I:loricl;r 3 304 I:lovrd;r Prrhlrc Utr irtrc>>

I'ost. Ol tice 1)r;neer C liest I'r lm l<c'rclr, Fi.orid;r. 33402 Florid;r I'uhl ic Uti I.itics Company I'ost Oflice l)ox 418 I'crnandina Bcacir, Florida 32034 I)'ithlacooclrcc River lilectric (;oopcrativc Inc. Post Ol lice )<ox 278 Lrde ('.ity, I'lorida 33525 li'est Florid;r Iilectric (:oopcrative, Inc. Post Oflice'Box 127 Gra<<cv i 1 le, Florida 32440

   'I'r i   Cor>>) ty    I:. lect ric Coopera t ive,        I nc.

Post. Ollicc i<ox 208 M;rrlisor), I: I orid:r 323'10 Su)i;rnncc V:r I lc) Iilectric ('.oopcv;rtivc Irrc. Irost Ol'I icc i<ox l(r0 l,ivc 0;rk, I:lovid;r 3206() Surrrtcr'ilcctr ic ('noire) at i vc, I rr<<. Srrrotcvvi I lc, I:lorida 33585 Ccrrtr'r1 I:lovid:r I:.Iectr'ic ('.oopcr;rtivc, Inc. I'ost Ol fice I<ox 8 Chic flrrrrd, I:Iovidrr 3'(i2(r (.Iroctrlh'I4ltcllcc': lect 1'r c Cooper'el t' vc, I llc ~ I'ost ()I I ice I/ox 512 I)cI'rrtrlrlk Spl'Jrrgs q I'Iol r(ia 324 '>3 O. Clay Iilectric ('.oopcr;rtivc. Inc. I'ost Ol I ice I<ox 308 Key>>to))c Ilcrl>I)ts, I:Ior'id;r 3 (r56

Mr. L'. I.. Bivans and bfr..J. S. Bell ~ Florida Power and I.ight Company-Post Office Box 3100 bfiami, Florida 33101 II<. l;. I'. ll<<<~I:<n<f <'Ir..I. II. flies'ks + 'I.<IIII<:< I. I<<' I << I.<< <<II<:Ill)< I'<<"I I)I I I<.( Il<<x I I I

'I'aml)a, I: I or i da 33609 Mr. C. D. hlclntosh, .Ir. and Mr. Robert lf. Cochran                        ~

Department of'lectric and h'ater Utilities 1000 fast I)arker Street Box 368 I.akeland,. F1orida 53802 hfr. Don Moore ~ Orlando Utilities Commission 500 South Orange Avenue Box 3193 Orlando, F1orida 32802 Mr. R. N..Jones

• Barnctt Bank Building Tallahassee, I'lorida 32304 l,akc flclcn i~iunicipal Electric Light Plant Box 423 I.ake Ilelen, Florida 32744 City of I.eesburg Box 630 Leesburg, I lorida 32748 Moore Ilaven l funicipal h'atcr and Light l)cpartment btoorc I laven Florida 33471 City of Mount Dora Mount Dora.

Florida 3)757 Newl)erry Board of Newllerry I'lic li'or] s I'lorida 32669 New Smyrna Beach Utility Coinhiission Box S19 New Smyrna Beach, I:lorida 32069 @liney Municipal Electric Light and I~'atcr Department Drawer 941 Qtincy, florida 32351 St. Cloud I'uhlic lJtilities Commission 1300 Ninth Street St. Cloud, f:lorida 32769

Mr..l. I'au) Smitl>

• I:or t, I'ierec Elti I i.ty Authority 3I I Nurtii in<lian I(iver I)rive I'iu t I'i< rx'e, I:lor ida 33450 Mr. (iary I.awrcncc
• City of 'I'tll~hassee 2602 Jackson Bluff Road Tallahassee, Florida 32304 Mr. C. C. Blaisdell, Jr.
• Utilities Director Lake Worth Utilities Authority 114 College Street Lake Worth, Florida 33460 Mr. R..). Gardner
• Florida, Power and Light Company Post Office Box 3100 Miami, Florida 33101 Mr. Frederick M. Bryant and Mr. Mac H. Cunningham
• Florida Municipal Utilities Association Post Office Box 2402 Lakeland, Florida 33803 Mr. James A. Bauer ~

City of Kissimtnee Post Office Box 340 Kissimmec,'lorida 32741 Mr. E. C. Shreve, Jr.

• City of Ocala Post Office Box 1270 Ocala, Florida 32670 Mr. Iiarry W. Wright
• Seminole Electric Cooperative, Inc.

2410 Eiast Busch Boulevard Tampa, Florida 33612 Mr. J. II. Phillips

• Sebring Utilities Commission 2l3 South Commerce Street Scbring, Florida 33870 Mr. Lec Willis ~

Attorney at Law Post Office Box 391 Tallahassee, I'lorida 32302 Mr. Jim Fort and Mr. Stan Livengood* Gainesvillc-Al.achua County Regional Utilities Post Office Box 490 Gainesvillc, Florida 33602

<'1r. I:<I 1<ii I.<:I.'<<>> ~ I:I<ir'i<in l(ural lilcctric (:oopcrativcs I'ost ()I I'icc i)ox 590 'I'a] Iahasscc, I: I or id>> 32302 Mr. I.< <>>> li. lV<>>vc r *

         ~

'I'a l<l<> lil<<') ii. Co<>Incr>> t

                       <              ivc, l>>c.

I'<) .l III I'I<. ( Il<e !)III

                   ~

l(ui>><.'y, I:Iorida 32351 Mr. Ilal ililliams

• Florida Power Corporation Post Office Box 14042 St. Petersburg, Florida 33733 hlr. Tom Krilowicz
• Division of State Pla>>ning 660 Apalachec Parkway Tallahassee, Florida 32304 Mr. II. S. Oven, Jr. "

Department of Environmental Regulation Koger Office Center hlontgomcry Building Tallahassee, Florida 32304 Mr. A. Bice Ikopc

• Attorney at Law Post Office Box 1307

(<ainesville, Florida 32602 hlr. Robert E. Rountree

• Gainesvillc-Alachua County Regional Utilities Post Office Box. 490 Gainesville, Florida 33602 Mrs. Katie Nichols ~

Post Office Box 94S Tallahassee, Florid ) 32302 Growth and I ncrgy Committee ~ llousc ot Representatives ThcCAI' TOL Tallahassee, Florida 32304 hlr. Tommy Chisholm and hlr. Lyman Shivers ~ Gulf Power Compa>>y Post Office Box 1151 Pensacola, Florida 32502 hlr. R. T. Bowlcs and hlr. hlr..G. C. Moore

• Florida Power Corporation Post Office Box 14042 St. Petersburg, Florida 33733

Mr. 13. III. Nait, III.* Sebring Utilitics Commission Post OfFice Box 6817 Orlando, Florida 32803 Mr. Robert N. Claussen

• lt. W. Beck and Associates Post Office 13ox 6817 Orlando, Florida Green Cove Springs Union Flectric Light Plant Green Cove Springs, Florida 32043 Havana Power and Light Havana, Florida 32333 Homestead Power Plant Northwest First Avenue

                           '40 Drawer 429 Homestead,    Florida Jacksonville Electric Authority Attention: Mr. Edward Rich ~

City Hall .Jacksonville, Florida 32050 Key Nest Utility Board Drawer 1060 Key Nest, Florida .33040 City of Homestead Attention: Mr. Henry C. Peters, .Jr. and Mr. R. Louis Gittings* Post Office Drawer 429 Homestead, Florida 33030 Mr. Mike Gent

• Florida Electric Power Coordinating Group 402 Reo Street Suite 103 Tampa, Florida 33209

pubic C-eg FCG/3-9-76 FLORIDA ELECTRIC PONER COORDINATING GROUP OUTLINE PENINSULAR FLORIDA GENERATION EXPANSION PLAN 1976-1990 The System Planning Committee of the Florida Electric Power Coordinating Group has prepared an estimate of the effort required to compare the method of generation planning proposed by the Public Service Commission, "generation planning without regard to company boundaries," and the present method of each utility independently planning its own generation. To accom-plish this comparison, it will be necessary to develop plans under both methods using a common base. The Committee suggests the following approach be utilized: A. Independent plans of each utility be developed based on a common cost basis and with no consideration given to the plans of any other system. B. A statewide generation expansion plan be developed jointly by all participants on the same base as "A" and without consideration given to system boundaries. C. Cost comparisons be made between the aggregate of the individual plans and the jointly developed state plan to determine any potential savings on both the state and individual system bases. It is assumed that all member systems of the System Planning Committee would participate in the study. It is further suggested that the staff'f the Public Service Commission be invited to also participate (see Attachment I). As each major milestone is reached in the study, an interim report would be prepared and presented for the Commission's review. Each of these reports would summarize the progress to that point and state any conclusions possible up to that point. A reasonable schedule or these reports (from Attachment II) would be as shown on the following page. t> I

After Re ort, Would Include 12 Weeks Com osite Data Base (load model, capital costs, fuel costs, OaM costs, reliability criteria, etc.) 24 Weeks Unsited Individual S stem and Statewide 36 Weeks State Sited Generation Plan (sited generation requirements) 58 Weeks ~1 including transmission requirements) General Stud Outline I. Independent Plans In order to compare the aggregate of the independent plans to the joint generation plan, it is suggested that each utility proceed under the following guidelines: A. All plans be independent of any participation with other utilities (i.e., no future joint generation projects be shown) except where contracts exist at the present time. B. All utilities use the'ame mutually agreeable composite estimates for:

l. Fuel Costs

      -2. 0aM Costs

3. Generation Equipment

4. Transmission Lines and Rights-of-Way

5. Substation Equipment Note: It is estimated that each utility could require up to 200 manhours to update their present long range .

generation program to reflect the composite fuel and capital costs.

II. Joint Generation Ex ansion Plan The System Planning Committee ha's reviewed, the major

   ~

requirements necessary for the development of a joint generation expansion plan for- the period of 1976 through 1990..... The Committee suggests the following procedure

be followed:

A. Load Forecast A composite of the system load forecast should be developed for the major load centers of the Florida Peninsula. B. Generation Expansion In order to deve op the expansion plan required to meet the desired reliability levels, suggested the following tasks be undertaken: it is

l. A loss of load probability (LOLP), reserve, or equivalent reliability criteria should be agreed upon for the State.

2. The proper mix of generation should be developed using a generally accepted optimal generation planning computer program. This will make it possible to more quickly develop guidelines relating to the proper percentage of base load, intermediate range, and peaking capacity for the State. Also, this will allow for an adequate number of alternative generation types (e.g., nuclear, coal, combined cycle, gas turbines) to be considered in a reasonable amount of time.

3. Because of the difference in financing situations of the participants, agreement will have to be reached on a general financial approach to be used in the study for cost evaluation.

4. Generation'ocations will be designated by general area and not necessarily by specific site.

C. Transmission Plannin As a result of .the composite load area basis for the load forecast, the associated transmission system should be designed to satisfactorily transfer rLserves between areas. In order accomplish this requirement, the to'dequately development of a separate transmission expansion plan for each generation planning approach will be required. The estimated costs of these expansions will become an integral part of the total cost estimates. The development of the transmission expansion plans will require:

1. Two long range transmission planning studies based on the joint generation plan for the State and the composite of the individual system plans.

2. Approximately 20 years of load flows to determine the sufficiency of the trans-mission system to handle the increased generation. It was agreed by the System Planning Committee that all lines would be owned by the utility in whose area the lines were constructed.

D. Financial Anal sis The output from this joint generation expansion program should be broken down into a total cost per year and subdivided into capital cost of transmission and generation and operating and maintenance cost. Each of these costs will be shown on a yearly basis. In order to adequately assess the impact of any developed plan in regard to its effect on rates charged to consumers, it will be necessary to at least roughly consider the financial requirements and their forecasted satisfaction. This portion of the study may well require the expertise of individuals other than system planners and therefore may expand the study for a short period outside the general area of the System Planning Committee.

FCG/3-9-76 ATTACHMENT I PENINSULAR FLORIDA GENERATION EXPANSION STUDY FCG SYSTEM PLANNING COMMITTEE Participatin Sys tems Florida Power & Light Company Florida Power Corporation Tampa Electric Company Gulf- Power Company Jacksonville Electric Authority Orlando Utilities Commission Gainesville-Alachua County Regional Utilities Board Lakeland Department of Electric 6 Water Utilities Tallahassee Electric Department Lake Worth Utilities Ft. Pierce Electric Department Vero Beach Municipal Utilities The Florida Public Service Commission

ATTACHMENT IE FCG/3-' PENINSULAR FLORIDA GENERATION EXPANSION PLAN 1976 - 1990 ED W I I MW W ~ Cl

                                            ~~+

I EL D ~W CI

                                                                                         &  C)

W CD I~ ~

                       ~ j                  W VJ I

I CI CI A I W l lal I I & ED ~ C)CD MINIMUM TIME TO COMPLETE (WEEKS) 12 12 16 I 1 LOAD NOBEL I (12) t STATE GENERATION OPTIMIZATION OEM,FUEL Im CAPITAL COST (12) ESTIMATES (I) LOCATIHG OF GEHERATION (SITING) TRANSMISSION GEHERATIOH (6) PLAHHIHG FIHAHCIAL (STATE) FACTORS () I) FIHAL (3) SITE REPORT AVAILABILITY PREPARATIOH RELIABILITY (6) (6) CRITERIA (3) UNIT DATA INDIVIDUAL (2) SYSTEM PRODUCTIOH, PLAHS AHD CAPITAL ()2) COSTING OF IHDIY.PLANS TRANSMISSION (12) TECH. DATA TRANSMISSIOH PLANHIHG IHOIY.SYSTEM (16) TRAHSMISSIOH F)HAHCIAL DATA (4)

                               +   -  INTE RIM REPORT FILED.

(X) " INDICATES CALEHDAR WEEKS FOR COMPLETIOH.

ELECTRIC UTILITYGROUP MAKES PROPOSAL e FOR STATEWIDE GENERATION AND TRANSMISSION EXPANSION STUDY The Florida Electric Power Coordinating Group (FCG) made a proposal today to the Florida Public Service Commission which would commit the utility group to a 58 week study of the expansion of the statewide generation and transmission system for. electric power during the period 1976-1990. FCG is an organization of some 34 electric utilities throughout Florida which include investor-owned utilities, municipal systems and REA electric cooperatives. Altogether the group represents 99% of the electric power generation in the State of Florida. The proposal was made at the Florida Public Service Commission workshop which opened the Commission's investigation of the planning of the state's power generation and transmission facilities. Under the proposal made by FCG, the study wou]d begin on May 1, 1976 and would be concluded early summer of 1977. Altogether the study, which would be performed by the staffs of 12 participating systems, would cost about $ 400, 000. The proposal also requested that the Public Service Commission staff participate at all stages of the study. Interim reports would be forthcoming at several stages in the study. The participating systems are: Florida Power 4 Light Company Florida Power Corporation Tampa Electric Company Gulf Power Company Jacksonville Electric Authority

Orlando Utilities Commission Gainesville-Alachua County Regional Utilities Board Lakeland Department of Electric 4 Water Utilities Tallahassee Electric Department Lake Worth Utilities Ft. Pierce Electric Department Vero Beach Municipal Utilities

i1 f') 1 t

      ~

I I I

• }}