ML18088B177
| ML18088B177 | |
| Person / Time | |
|---|---|
| Site: | Saint Lucie, Turkey Point  |
| Issue date: | 07/29/1976 |
| From: | Jablon R Florida Cities, Spiegel & McDiarmid |
| To: | NRC/OCM |
| References | |
| 50-250A, 50-251A, 50-335A, 50-389A | |
| Download: ML18088B177 (19) | |
Text
UNITED STATES OF AY%RICA BEFORE THE NUCLEAR REGULATORY COMMISSION g zv/~(
Florida Power a Light Company (St. Lucie Plant, Units No.
1 and No.
2)
Florida Power G Light Company (Turkey Point Plant, Units No.
3 and No.
4)
)
Docket Nos.
50-
)
89A
)
)
)
Docket, Nos.
50-250A
)
50-251A
)
SUPPLEMENTAL AFFIDAVIT OF ROBERT A. JABLON that:
I, Robert A. Jablon, being first duly sworn, affirm 1.
I am a member of the law firm of Spiegel a
I'cDiarmid, 2600 Virginia Avenue, N.W., Washington, D.C.
20037; I
2.
I am counsel for the Fort Pierce Utilities Authority of the City of Fort Pierce, the Gainesville-Alachua County Re-gional Electric Water and Sewer Utilities, the Lake Worth Utilities Authority, the Utilities Commission of the City of New Smyrna
- Beach, the Orlando Utilities Commission, the Sebring Utilities Commission, the Cities of Alachua, Bartow, Bushnell, Chattahoo-
- chee, Daytona Beach, Fort Meade, Key West,
- Leesburg, Mount Dora, Newberry, Quincy, St. Cloud, Tallahassee and Williston, Florida, and the Florida Municipal Utilities Association (collectively referred to as "Florida Cities");
3.
- Each of the foregoing cities or authorities and the Florida Municipal Utilities Association for its members
seek the opportunity to have the right to participate in Florida Power a Light Company's St. Lucie nuclear generating unit No.
1 and Turkey Point nuclear generating units No.
3 and No 4, and Florida Power a Light Company's St Lucie nuc-lear generating unit No. 2, which is presently under.construc-tion.
Such participation may be through direct ownership', unit power purchase, wholesale power purchase or otherwise, or any combination thereof, dependent upon legal, economic and en-g'ineering analyses.
They further seek attendant rights as described in their Joint Petition of Florida Cities for Leave to Intervene Out of Time; Petition to Intervene; and Request for Hearing, filed in the above-captioned dockets on 6 August 1976; 4.
On information and belief, each of the factual statements contained in the Joint Petition of Florida Cities for Leave to Intervene Out of Time; Petition to Intervene; and Request for Hearing is correct; 5.
The statistical information contained in the Joint Petition of Florida Cities was either compiled by be or under my direction from published sources or was obtained directly from Florida Cities; 6.
On information and belief, the matters and things set forth in the Affidavits of Robert E. Bathen, Harry C. Luff, Jr.,
Robert. A. Jablon, Esq.,
Osee R. Fagan, Esq.,
and John.
W.
Wilson, Ph.D., submitted in support of the Joint Petition of Florida Cities for Leave to Intervene and Request for Conference
V"
and Hearing, filed with the Nuclear Regulatory Commission in Flori'd'a P'owe'r&it'o'.(S'o'u'th'ade'.Pla'nt),
Docket No. P-636-A, on the 14th of April, 1976, and enclosed herewith, are true and correct; 7.
And the attached documentary exhibits, as listed below, are submitted in support of the Joint Petition of Florida Cities for Leave to Intervene Out of Time; Petition to Intervene; and Request for Hearing:
(a)
Formal Proposal by Florida Power
& Light.
Company for the Acquisition of the City of Vero Beach Electric System, letter addressed to The Honorable Mayor and City Council of the City of Vero Beach, signed by Mr. R.
G. Mulholland, Senior Vice President, Florida Power
& Light Company and dated 27 May 1976; exhibits omitted; (b)
Excerpts from Minutes of a Meeting between Representatives of the Fort Pierce Utilities Authority and Florida Power
& Light Company, held Monday, 1 March 1976; (c)
"FPL's Sale Pinch May KillBill Savings,"
Sentinal-Star, Orlando, Florida, 7 April 1976; (d)
"Power Plant Topic for Gregg Review,"
,. Press-Journal, Vero Beach, Florida, 13 June 1976.
Robert A.
ablon Subscribed and sworn to before me thi:s 29th day of July,'976.
Notary iP'ublic
C'RIOA PO'Vs'cR c; L!G!IfCG.'1P 'l4Y Play 27, 1976 The Honorable Mayor and City Council of the City of Vera Beach RE:
Foxmal Proposal by Florida Power
& Light Company for the Acquisition of the City of Vero Beach Electric System Gentlemen:
At the" request fram the initial committee appointed July 9, 1974 by the Vero Beach City Council to investigat the possible sale of the Vero Beach electric system
("elec-tric system")
and as a result of discussions with a subse-quently appointed committee requesting a proposal from Florida Power a Light Company (hereinafter referred to as FPL) for the possible purchase of the electric system, FPL on February 11, 1976 reached undex'standings and made a
vexbal offer to the 'designated representatives of the City of Vero Beach
{hereinaftex; referred to as City) to purchase the electric system presently owned and operated by the City.
Your representatives, at a public hearing on Feb-ruary 23,'976, explained thi:s verbal offer and made recom-mendations.concerning it.
PPL was advised that the City
'.Council unanimously approved the xecommendations and re-quested FPL to prepare a foxmal proposal regarding 'he purchase of the electric. systmi.
Pursuant to further'iscussions with City repxesen-tatives, review'f certain records, and inspections of the electric system, PPL heiewith 'foxmally offers to purchase fram the City all of, the assets of the City's electric system except those lands on which the 'gener'ating stations and the transmission-distribution office are situated, and certain o her assets more 'speci ically defined here'n.
Th' proposal has a value of approximately Forty-two Million Six Hundred Six Thousand Dollars A portion of the funds pro-vided will be used to purchase the necessary securities such that all outstanding electric system bond obligations shall be defeased by the placing of such 'securities in
. scrow.
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This proposal is il ustrated as follows:
Bonds to be def eased Balance
$30,435,000
,232,'000 Sub Total
'nventory Value relating to
- assets, current and other funds system other current liabilities of the electric
$37,667,000 1,390,0002/
3', 54'9, 0002/
Total
$ 42,606,000 This offer is made upon the following terms-and condi-tions:
1.
Xt is based on the fixed assets as of the date of acquisition and the current assets and current liabilities as of September 30, 1975.
The details of accounts to be subject to adjustments are set forth on Exhibit A Sects;ons ZX and XZZ.
The price will also be adjusted to properly
. reflect the amount required to establish two escrow accounts to def ease the electric system bonds as set forth in Exhibit B.
The determination of current assets and current liabilities and the adjustments will be based upon fin'ancial statements prepared by the 'City using accounting principals and formats consistent with-the September 30, 1975 Financial Statements prepared by May, Zima a Co.
FPL shall have 'the x'ight to review the'orking papers and make any audit checks deemed necessary to satisfy itsel'f vith respect to the accuracy and consistency of these financial statements.
I I
2.
Assets to be 'acquix'ed pursuant. to this proposed purchase will include the 'presently existing electric system and all additions thereto through the date of acquisition, less certain enumerated properties more specifically described in Exhibit C attached hereto and made a part:hereof, including, but'ot limited to, those 'items set fox'th 'on'xhibit A
- attached, hereto and made 'a part, hereof, which includes* all generating, 'transmission, substations, distribution'and street lighting facilities, easements, privileges and right-of-way grants incident thereto: all items of inventory relating thereto including fuel oil together with all property,
'eal, personal or mixed, used. or useful in furnishing.-'electric service to customers, and all records necessary for continued service to customers presently served by the'ity's electric system including engineering, operating and accounting records.
-3 2/
or such asser sum as will cause the defeasance o;
such Bonds.
Further, if between September 30, 1976 and the date of acquisi-tion, the amount of bonds to be defeased has been reduced by payments by the City to meet normal scheduled sinking require-
- ments, then the "Balance" shall be increased accordingly.
Subject to adjustment as set forth'n Exhibit A.
0
'0 4
3.
The offer to purchase is subject to certain con-tingencies -which ar set forth as follows:
(a)
All necessary approval of the purchase by-regulatory authoxities, which may include among others, the Florida Public Ser'vice.
Commission and.the Federal Power Commission.
(b)
. Gxant by the City to FPL at no cost to FPL, except as specifically set forth in the.terms of the franchise referred to hereafter, of an electric utility franchise the texms of which are specifically set forth in Exhibit D, attached hereto and made a part hereof, such franchise to become effective as of the date of acquisition.
(c)
Approval by the voter's of the City of an amendment to the City Charter such that the City Council of Vero Beaches all be empowexed to sell the 'electric sys~V.
4.
FPL will offer employment to all those employees whose duties are primarily related to the, 'electric system having permanent employment at date 'of acquisition, at wages and a total empl'oyee benefit package equal to or better than they presently have.
The genera terms and conditions of employment of City's electric system employees by FPL are set forth in detail in Exhibit E, attache'd hereto and made a part hereof.
5.
Contx'actual obligations which have been furnished to FPL are listed on Exhibit F. It is understood that this proposal is contingent upon FPL's approval of any con rac-tual obligations including those entered into or acquired with respect to the electric system from the date of this proposal up to and including the date 'of acquisition.
6.
Xt. is understood that FPL is purchasing the steam and diesel generating facilit.ies presently-owned by the City, including the associated auxiliary equipment; FPL proposes to continue to operate the 'genex'ating facilities at their present locati'on for an indefinite period of time aftex the date of acquisition.,It will therefore be neces-sary for FPL to lease 'from the 'City the'and upon which they are located.
Xt is furthe'r'nderstood that it will be necessary for FPL to lease 'the 'land and buildings presently being used by the City for'he 'transmission-distribution service centex',
a portion of 'the central stores warehouse building and land, and the substation property located at
'the Civic Center site for an indefinite p riod of time.
Tnis offer is therefore contingent upon the City's execution of leases to FPL in accordance with the foregoing and agree-ment herewith by the'ity to furnish 'cool'ing tower make up water from the waste 'water treatment plant effluent and in
the event effluent is not used or not available, to furnish City water at norma~commercial rates.
Copi~ of said five leases are attached~ereto as Exhibits G, H, ~ J and K.3/
7.
In order to properly effect the transfer of the electric system to FPL, it will be necessary for FPL to have reasonable access to all of the electric system properties and records for a period of at least ninety (90) days prior to the date of acquisition and reasonable access to records not transferred affecting the electric system for a period up to twelve (12) months after ac'quisition.
8.
FPL will obtain new deposits from customers of the electric system after the date of acquisition in. accordance with its Rules and Regulations.
So as to avoid any undue hardships on those customers, FPL agrees, whe're requested, to establish a deferred deposit payment plan.
9.
The City shall pay as due 'all debts and liabili-ties relating to the electric system which'rise out of operations or conditions occurring prior to the date of acquisition.
Property taxes and tax equivalents if any shall be prorated as of the date of acquisition.
FPL shall
- assume, and pay as they become due 'after the date of acquisi-tion, all debts and'iabilities relating to the electric system which arise out of operations or conditions after said date.
10.
To provide for the most equitable method for determination of rev'enue accounts rec'eivables, FPL will make provisions for all electric meters to be 'read on the date of acquisition.
Such meter reading data will be made.available to the City for use in rendering final billings under its various rate schedules.
Zt is understood the'ity will cooperate in this effor't by providing meter reading personnel to assist FPL personnel'.
This meter reading data will be us d by FPL to establish the customer record data for future billings under. its various rate sche'dules'.
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ll. - The 'electric system is presently covered by the insurance policies as set forth in Exhibit L. It is under-stood that these policies will rem'ain in full force and effect up to the 'date of acquisition insofar as they provide insurance on and on behalf of 'the'lectric system.
12.
~ It is understood that the City'ill execute a
Municipal Street Lighting Agreemen't with FPL as prescribed.
in Exhibit N attached hereto and made a part hereof, such agreement shall include all street, lights and associated
,3/ Xt is understood that certain information to complete these=-
leases as indicated in the leases has not.been supplied by the City and that when supplied, the leases shall be com-pleted.
facilities as determined within the City boundaries at. the date of acquisitio~
The charges for street~ghting services will be inaccordance with FPL's pr ently effec-tive Rate Schedules "IL" and "SL"= ox subsequent applicable rate schedu es as filed with the Florida Public Service Commission.
It is further understood that Rate Schedule "IL" is a closed schedule applying only to incandescent lighting fixtures which are in service at the Gate of acquisition and that no further additions of street lighting facilities vill be added under Rate Schedule "XL".
13.
In the event'ny of the physical properties or assets to be 'acquired by FPL shall be damaged or destroyed between the 'date hereof and the date of acquisition, the City shall restore said damaged or destroyed properties to the condition that they'ere in prior to the date of such damage or destruction, provided that the City shall have the option to reimburse FPL fox costs to replace such facilities
'n event of damage or destruction to said'properties.
- 14. It is understood that between the date hereof and the date of acquisition that the elec'tric system will be operated in a sound, businesslike mannex'.
'I
. 15. It is under'stood tha't legal. ques'tions regarding defeasance of the City's electric system bonds and the taz-exempt status of interest on these bonds after defeasance must be resolved to FPL's satisfaction, and. it is agreed that the City and FPL will share the responsibility for obtaining solutions to these legal questions.
It is there-fore agreed. that FPL shall pay such legal ez'penses and the
'City shall assume one-half of tnese expenses',
but the City'
. share. shall not be in excess of
$12,500.
Settlement of this account shall b made on the final closing date.
16..
'The 'City shall warrant and represent that (a) it has good and marketable title to all of the 'assets to be conveyed by it to FPL'g (b) there are no creditors of the City whose cia'--.s - =--;- ='==.s
=:
- c a lien on any of such
- assets, (c) it has disclosed to FPL all liabi:lities which
'ay beco...e du a ter t<e acyl>.sition, (d) the accounting, engineering and employee re-ords are accurate, (e) there has
'been no advexs'e change in he assets prior to the 'acquisition, (f) there is no litigation or governmental action, pending
'or threatened, which would affect the 'operation of the electric system, the assets ox the 'transfer'hereof to FPL, (g), the sale of the assets does not. constitute a sale under the Bulk Transfer
- Law, (h) neither the use 'of the assets nor the. operation of the electric system violates any deed'estriction or law, rule or regulation, (i) it has all.
necessary governmental approvals for the operation of the electric system and (j) it will cooperate with FPL in obtain-ing all governmental approvals for the transfer-to'and operation of the electric system by FPL.
These warranties and representations shall survive the closing.
r 17.
The City all cause to b deliver to FPL at acquisition an opinion from the City'Attorney ~rhich shall state (a) the City has good, and marketable title to all of the assets to be conveyed to FPL, (b) the City ha" all necessary governmental approvals for the operation of the
'lectxic system, (c) the City has all necessary easements and licenses for the operation of the electric system, (d) neither the use of th assets nor the operation'f the electric system violates any deed restriction or law, rule or regulation, (e) the consummation of this txansaction is
~within the po~rers of the City, (f) all necessary City action has been taken for the consummation of this txansaction, (g) all governmental approvals necessary for the City to con-summate this transaction, if any, have been obtained, (h) there is no litigation or governmental action, pending or threatened, which would affect tne op'eration of the electric
- system, the" assets or the 'transfer thereof to FPL and (i) all of the closing documents are valid and sufficient for the purposes therein stated and for the transfer of the assets to FPL.
18.
FPL and, the City take cognizance herein of the 77ater Service Agreement dated December 18, 1968 between the City and the Town of Indian River Shor'es.'either FPL nor the City intend that this undertaking srill affec" any rights which may exist under such 'contract relative to water service which the Town of Indian River Shores is now'eceiving pursuant to said Agreement.
- 19. It is understood that the Mayor will be designated by the City to execute on behalf of the City the 'necessary and proper documents conveying title 'to FPL by the City and City Clerk will be designated to attest the 'same.
- 20. If this'roposal is favorably considered by the
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'Catty Council, it is'nderstood tha't the Cha'rtex amendment, contemplated in paragraph 3 (c) shall be 'submitted to the electorate on or before September 3.0, 1976, or if not, this proposal may be withdrawn at, the option of FPL.
21.
Xt is further understood tha should the elec-torate adopt the Charter amendment contemplated in para-graph 20, a mutually acceptable
'date 'of acquisition will be
" e'stablished no earlier than three (3) nonths'or no.later than five (5) months from th
'date of such adoption.
Xt is further agreed that on the date of acquisition there will be a preliminary'losing ~rhich will include provision for the
. defeasance of the electric system bonds plus cash payment of
$ 6,000,000.
The balance of the purchase price will be paid at the subsequent final closing date, which will be 0
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mutually established at the preliminary closi~ and ~rill provide the necessary time for the final audi+and a joint inventory of materials, supplies and other equipment.
)
Respectfully Submitted
'R.
G. Nulholland Senior Vice President
Hl C; izpg),$ :)7c g1 I
MINUTES OF A h1EETI 'BETWEEN REPRESENTATIVES OF THE FW PIERCE UTILITIES "AUTHORITY AND FLOR POWER AND LIGHT, MONDAY, hMRCH ~1976, 10:00 A.M.,
UTILITIES BUILDING NFERENCE ROOht.
~ Present:
Ralph Mulholland, Sr. Vice President Harry Schindehotte>
St.
Lucie District Manager Xen Daniels, R.
N. Skinner, Chief Engineer Walter Baldwin,Director oE Utilities John Litton, Administrative 'Assistant Bill Bidle,,Director of Finance Ewell E. Menge, Chairman CharLes R.. P.
Brown, Attorney Jack P.
Smi.th, Superintendent Power
- P1ant, T. N. Moulton, Electrical Engineer Charles
- Jackson, City Manager 4 Ex-Officio Member F.P.U.A.
Ann Wilder Linda. Butsch Ron Landy John Picano F.P.GL.
F.P.CL.
F.P.4L.
F.P.U.A.
F.P.U.A.
F.P.U.A.
F.P.U.A.'.P.U.,
- F.P.U<
F.P.U.
F.P.U.A.
City of Ft.Pierce Miami'erald WFTP Mr. Baldvin asked Mr. hfulholland how they felt. about the news media being present at the meetings.
Mr. Mulholland asked if they are present now. Mr. Baldwin said they are. Mr.Nulholland saiL really, especially with them hire,,he has no objections to it.
Mr. MulhoXland said he would like to comment because he doesn',
think F1orida Power and Light or the Authority is trying to do anything to withhold informat,ion from the citizens who are direqtly or indirectly responsible or any decision that's made.
He'thinks the only reason they
~
have mdre or less classified this meeting as a work session rather than a formal meeting is because of the nitty gritty that you have to get ironed out and a lot of the details that get away from the meeting stage and get
=into actual working.
He doesn't think anybody is trying to hold anything away. It is difficult in these stages to make any statements that mean anything.. If the news media would like to si:t in and the Authority doesn'
- object, then they don't either.
Mr. Jackson said he thinks what Mr.. iMulholland is saying is that in working.
with iny public body the presence of somebody that's writing down everything you say probably makes you say substantially less than what you might otherwise say.
Mr. htuiholland said eventually.you are in negotiations.aqd as an example, he doesn't think a salesman Eor an automobile dealersh'ip vould be as free to try and negotiate il his boss werc standing over his
'ead. as he woukd to get. a lot of the sparring done Eirst.
He doesn't think it is a matter of trying to deceive anybody, but a matter of feeling more comfortable working. and not, being quoted on every little statement that' made; It could be misinterpreted.
This is something we ought to be careful vith and he is sure'the press vill do this. It should be interpreted as it is.
meant.
Mr. Jackson said one group he vorked with followed the theory that the ground rules were no quotations, He asked Ann Wi.lder what she would think about that.
Ms. Wilder said when you have ground rules with no quotations and things like tha't, you'e putt'ng the reporter in a very difficult position.
She thinks when you begin to get into limited coverage of certain. areas, you'e really opening a can of worms.
Mr. Jackson said of course the other si'de of the coin is that there is limited coverage because she sends the story down, but shehas an editor and doesnrite the headlines
. If we vere dealing vith Ann that would be fine,, but we'e not, we'e dealing with an ot'ganization
~
Mr. Mulholland said let's try it and see.
Ann Wilder agreed with him that'here vould be no ground rules at this tine.
Mr. Mulholland said he'ould like to c1arify who he has with him.
He introduced Harry Schindehette, St.
Lucie District Manager, who lives here ance operates out oE here.
He then introduced Ken Daniels.
He stated his home should be Daytona
- Beach, but they use him so much in areas oE this nature.
One of the main reasons is that they are very complicated areas.
such as Bob Skinner would know what he is talking about vhen he 'talks about
. interconnections and interchanges, so that they are consistent system-wide and so that they try their best to treat, everyone the same when it comes to dealing with wholesale power.
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Page 9
Mr.. Daniels asked if there is a breakdown in the information given them
'of "the different classes oE customer's. 'Mr. Bidle said no.
Nr. Hulholland
.said that is one thing they need
- a breakdown by customer class.
-'Mr. Sidle said the total income last year including interest and everything was'1.8 million.
Fromsales only and streetlighting was 10,841,000.
~ This excludes ipterest and other income.
The other was income on '
t co tr gran uction funds which we can use and interest on investments.
Mr. Skinner i
me on in crest, said he thinks they will find a breakdown in here as to classifications.
Mr. Bidle. said there are only residential and commercial.
Nr. Skinner said it is an FPC.
Mr. Baldwin said it's on the FPC report. Everything on. the list should be in thepacket, Mr. Bidle gave them.
C
'Mr. Nulholland 'said if that is the case everyone has helped considerably in saving time.
'l T
C r. Sxinn'er said we think we have a very good systen and think its very e&Siciently operated:
Ne reali e the big problem facing us is not the high cost of fuel or the hefficicncy of our system, but the inefficiency as comnared with putting aiL into a larger boiler and turbine.
That's where wc're getting caugh. short on the heat rate input to the boiler.
Ne have a
problem competing with FP6L favorably today because it r presents around 654 roughly. of the cost of doing business, the cost Eor Euel oil.
1Vhen you consider that we might. nake LOS profit that whacks it in the head.
Nr. Daniels asked when thc proposed crossing to the beach is'planned: Mr.
.Skinner, said we haven't gotten to that stage yet. It is preliminary right now, but we have approval for a permit to cross'he river. It has been
~.
extended one year.
Hopefully, sometime this year we would generate enough
~
. funds to do the job and'get under construction within the next 10 or'L months..
'4r. Skinner said if we can depart from our general. discussion, what Harry is
'sking is an the problem of feed to the South Beach.
He said we'e been working C.very hard on this with FPCL and Mr. Sam Humphreys and Ken Daniels, he under-stands.
Ne're wanting to consider as an alternate Eeed to the South Beach have an agreement with FP((L to feed the South Beach area generally with a feed from a net substation which is now under construction on Hutchinson Island.
That would delay the construct.'on across the river. That's ua in the air right now, but hope to get it j.elled very soon because build:ng has been
- aff. In (hc Fort Piercc area for approximately a year and a half to two'years and every indication is that it's going ta pick up.
Mr. Mu1halland asked haw the bui1ding is over on the beach.
Mr. Skinner said it's stopped right now.
He is. getting concerned with aur feed ta the South Beach by itself. It's a radial feed and'e felt we werc getting too many customers over there to
'rely on one feed.
Mr, Mulholland asked Eoz a rough figurc as to the number
. of customers and load on the Beach.
Mr. Skinner said we have approximately 5 megawatts of load on peak.
He doesn't know how many custoners.
. Mr. Daniels asked if the Authority peaks in the summer.
Nr. Smith said that is correct.
Me peak onc summer and the next winter it peaks up.. Mr. Mulhollanc asked if we peaked morc this winter than summer.
Mr. Smith said yes.
He said
'FPCL did too for the first time in years..
Rr.'aldwin said Mr. Skinner mentioned that funds might be available this
{
)mr.
Me haven't got a goad chance of selling bonds with this process going on so he doesn't know when it will be.
He hasn't talked with the Authority yet,
.but hc d'oesn't think we will go ahead with our bond issue on this basis.
'Hc doesn't sec how we could.
He doesn't see anyone buying bonds without knowing what the future holds.
Mr. Daniels asked if the bonds are revenue bonds covered 'by the revenue of all utilics. Mr. Baldwin said the last issue was.
Mr. Brown said the others were combinations.
Mr. Daniels asked iE he last one, the 75 series was covered by revenue.
Mr. Qidle said this is correct.
Nr. Baldwin said the earlier anes were water and electric.
Mr. Mulholland said that is 'headache number, one.
Mr. Baldwin said that's why we have experts.
Mr.Mulholland said
. Hr. Baldwin is right. That's when we need experts.
~ -'Rr. Skinner asked if he cauld bring up a subject that is not on thc agenda.
He said we are wondering what would be the passibility iE any, of the City of'Fort Piercc purchasing wholesale power for the entire'rea, possibly buying
~
power Eron FP4L for our base load and us taking the peak load, from the ezistin
- pLant.
c asked if th n ract to buY maYbe 30 megawa the year, around.
He asked if we co' contra c as e if ther
, a contract of that type that t}
could offer the Mr. Scinner has a contzac of that type already
~.
n.'is an s for the interchange agreement.
Mr. Skinner said it doesn't have to see those.
Actuall FP L d e
igures.
Mr. Mulholland said that's right and Mr. Skinner would I'k y,
6 oesn t real ly have any firn power wich anybody er wou not i e p
er for somebody unless the generating company e vou n't want Co have Eizn over guarantee. If the did
't',
a so, guarantee hin firm power.
They don't have any firn pow y ','
s awfully expensive.
Mr. Smith asked how they er o
an c
la es Co-ap.
Mr. Mulholland said it isn't anymore firn that 'his house They can't guarantee it.
They can do their best but cannot gua
,g azantee, but they can't do.it.
IC makes it most unc verybod wants a
u 1
zan ee xt.
'b s question,.
he th~nks it ~ould be uneconomicaL attem ti:
orta le; To ansverBob'n o go with their sale for resa'le rates with the Authority with their distributi system.
Then y'bu get into a demand charge and a
ratchet because f
h d
g s and then 3 or 4 or 5 months, you really only needed 20, coul n't be expected to standing by with that much generation.
That's the Q o e ballgame.
The ratchet --,that's a nice word because everybody doesn' dun crdstand it -- means that for the next ll months you hive to pay that sam lik h
horror story for somebody'-that's t.ying to operate same c t xs. To answer your quosti:on, he doesn't think that's the answ H
y '
nice as he can say it. He had to say it not long ago.
He er.
e s t
n s you ought to either ger out of the business or stay in the business.
en you get in half of it, it never seems to do too well.
He doesn't k
h in btedness of t}c plants and things.
He doesn't know that now w at:
t at's a vise way to handle it.
He guesses maybe you could t d
ddl you find anybody that'l give a lot of money for th' ry an pe e
.'}fulholland ask n
asked to let hen know, because they'e hunting it, too.
Nobody
'em, seems to give any money for it because it. is all labor taki i
d g
a putting xt together 'again.
He thinks they'ze talking a ing t
- own, nov:arqund
.10 or 20 cent's on the'dollar.
You can't operate like that with the nvestnent you'e goc.
Mr. Snith has heard that if there vas any need, foi
'e rand new unit, we would get a return of";about 30 cents on thc dollaz.
cfz.. Mullholland said that would depend on if you found a buy H
Ld ez.
e wou say
~
ould be a good one and it's about as efficient as you can get
. is vha
. vith a small unit, but the labor of taking it down and putCini g it up again
'i't was urel n acade t
eats then up alive.
This is a problem we all face.
M
.Sk' p
y p enic question, but 'he wanted to clarify tabac point because r..
inn r sax
't at is one area we will'consider
- buying power. We can't go int th' nitely going to sell it and have that as the only alternate.
We o
is an ave to have some alternates to nake a presentation to our connissi'on and Authority members.
'C Mr.-'Baldwin.said this is a fine beginning.
Mr. Skinner asked if anyone
'else had anything.
Mr. Jackson said he has a couple of things to talk to Chen about, but it do'csn't involve what we'e meeting about.
Mr. Skinner wondered if he could, ask us to make a formal statement Chat will Cake us all off the hook in 'regard to news releases.
They vill eat us up.
'f they call the Mayor, he's going to report on this meeting but he wasn' better if ve had here.
Mr. Jackson or anyone could give a report but h Ch k
ld. b e
ins itwou e
e had a uni orm system of releasing reports in regard to our di'scussions today.
He asked if that is wise.'Mr. Baldwin said. he does.
Mr.
.lo ical a
Jackson said'Mr. Skinner is the Chairman and he would think th t h a
e xs as that a
w g'lace to turn to as any.
Mr. Mcnge asked if Mr. Skinner is a k
~ ritten news release be'made of this meeting.
Mr. Skinner said he i
as ing
- would "bink that would be logical.
We'e probably already on the radio.
'Mr. Mcnge said the only thing that will be on the radio is a fev out of context remarks that don! C mean anything.
Nothing has been decided, we'e
'just agreed that we'e going to start vozk.
FP6L has a reed the
'll.
k p
y and that s an imporcan" step as far as we'e concerned.
ulholland would suggest and it is strictly a suggestion tha h
b 11 s cou.t nov.
He would suggest that Mz. Skinner or someone i n, at t e
a dna e the statement to the news media oz back to the Authority or whatever.
He*
sa d that if they'e
- asked, they'ze j u'st going to say thar they came up at
't e Authority's invit'ation to infoznally discuss the subject natter and that h y s inappropriate at this tine -- in face they can'c go into any f too many people try to report on it-you nay run into probl ns etail.. If.
If it's an a
y assurance, t ey re not going to say anymore than that, because l
e
~ he doesn't know anymore than that.
They haven't studied.this.
Mr. Baldvin said John L'itton could handle that.
Mr. Skinner asked Ann Wilder if she could see what wc're getting at.
Ms. Wilder said she could and'hinks it's d
o the point of view of the press when there's someone available that "hey goo
~
.:can calL and arcn'old Chat in 3 hours3.472222e-5 days <br />8.333333e-4 hours <br />4.960317e-6 weeks <br />1.1415e-6 months <br />.ve'ze having a press release, s what
~a I'
comport>nt
~
They don't like being told that someone is out of the office
,Ear five hours and it's tough.
The O'ERALD has a Elexibility because they
.. Con't seqd until late in the afternoon, but there is a TV station and radio strati'ons that will be panting for something in five minutes.
If they can' get hold of John there will be calls to Walt, Ewell., Jack.
It is really a
question of availability.
" She thinks it's a help to have someone to go to.
Mr. Skinner said thc next step is scheduling the 'next meeting.
He asked about a meeti'ng a 'month from today. Nr. Baldwin said it would be resolved by the
~ '. 'ork itselE. Mr.:htulholland said that's right. They'e going to have ro run a
financial analysis on it to s'ee where they are.
They may from time to tine need to get with some of the Authority's expertise in diEferent ar~as and get their
'counterparts with them. Until they can delve into this and see where they are financially and see ho<< the kilowatt hours are compared to their rates that they would be applying to see what their revenue would be to see how it affects coheir rate-payers and shareholders and look at the bonds a little bit, he C iinks we'e in accord that if we can get together and make this work, wc'll ao it. 'If'we can', we'l part friends on the thing and still be interconnected Hc thinks a month is about the least tine we could do. Hr. Baldwin told him to feeI welcome ta call anybody here.
That's why everyone is here today, to find out what the situation is. There will be no red tape or fornality.
We can get iriiormation for you in a hurry.
We are completel.y neutral. until, the bottom line tells us where we want. to go.
Mr. Mulhalland said so that we don't call or write ta too. many di ferent people.
he would appreciate.it -- he will be available at anytime, his door is always open --if thermae is anything that needs to be discussed if the Authority would call. Ken. Danica,s.
He can leave his phone numbers here.
Hc would. like to coordin
- ate it through one man so somebody doesn't call him, Ken, their financial
- people, even though he has no objection to it, the sand starts falling through
'the crack if you start, operating like this. Mr. Baldwin said Bob Skinner would represent the Authority in that case.
He is available almost all the time or on
'~ ery short notice.
R. Nulhol1and said he guesses there i's one other iten that the Authority could think about and that might make FP5L more comfortable, and that is an overwhelming majori y of the City Council that is in accord with what is being done.
Then they know bath bodies are ~orking together on this.
He isn' expecting any committment that'they're going to da it, but he thinks they'houI have some sort oE overwhelming agreenent that they'e in accord that this is what wc should bc doing and that if it would work aut within some reasonable amount of money that it would be to their benefit that they ~ould endorse it.
If the two bodies are not in concurrence, we'e wasring our time..He 'knows wc're all busy, He thinks we'e done about all we can do.
He thanked the people for inviting him up.
MEETING ADJPURNED.
t'7. 40>t tolls takitA, Aoi>ae sleet Jcaa..cfdtcr
<<f) 20$,CH 5 Ilgwu CrfcaJa A[A-.7. -76
~
Jt
. Q8 [):::'JI,1V~CJ]l
'tvay lo pet: tea ')>ower fiatill.
.. &c>>ti>>[.fK~tnl'B.VB~J,
~
~
~
~
r
,3 It/
,ito I
,t[ I I 4 nf.ftF; TIIOifhS.
go thtoupJ> with lhe sale ol the" power system.
and a
recent
'resentation ol thc Ol}C poivcr purchase p)an lo Fl'L olticlals mct whh.a "nspatlvc"'rcrocllon, "V(hat woufd you do Ifyou vrcrc:,'n their pht)t)on?". UIVc askari.
PPI.
has consistently res)sted; attcnipts to usc its lines as a
comnmn carrier for other sy.>tents
~
and oiocs,rot even.have a sct; char,".e for.such usc: )mu>>n es; "ivitc~ciin,""so that thc ru:nun\\ nl savings to c)ly custoincrs by; pure):nstttT our potter, It FPt stsl>ott Slat Si>ii
.: Orlando tn Ycra ftcac)s ls over "VfftO IIFihC)) Florida Pow-..FP!. I)nes, and Iha plant Jsrf('itL.".
er and llbfs.dcsiie fokcep the ulii!Iy ls rcluclanl lo cooperate.'iessuic ion the city to sett lts power systrnt tuay doom ctforts, Thc, y
cft u'itit custoincrs to pain aprccd, In piinc pic; tn a rccohi ~
~ 'ibndv, selnrfda SECTIOII ';-
Ii': Iota"-"'
ior y
ole rebel,this summer tram nwndatlon n
y p p I
f ehiuai t
ursue eitrhno:nical ictcctrlc btl)s, )t was p
suit attcm ts to si i lhc numiclpa.
icarncd, this wrc..
d,t!
h.
City btnnagcr Jehu l.litle has tln'!h>>
lt: f. ~,
>Is beets trytisg rii'letty over the Past 'tpch)J>IP TII). otlfy reason fo"
'snth lo i""ik oui tui arrange
[ha council.tto cqnsiucr se)Ijiifo.that.,
ment with thc Orlando Vt!Iltlrs system is tha h)ph co.:t <<f loca[lyt
~
~
4 c RIV,OE,,
Ct Reit Cnnimisslon (Ol)C) to puichnsa
'eacFss poster lo hi[set a ptedlclcd 2S pcr cent himp ln the fuel cd[uslnicrt charpc that >vill comb tvhCn thC Chy IS forced tn Start p r o d u c e d electricity, I PL !s reluctant to d[t hnythtnp
.Ih l wouM lend to ?educe the price and thus reine)re,sitntc of lite ttrgcncy felt bSI> tile pub))c.dnd A ril 7 1976 agreed to coopcriitc. canrot be rt ftr dcternllned novr, f.bile said.
LITH.V.,BA)f)[t FPt rcfdses lo-
- uscrs, and not an alternative to'grf hloor,:i'Ith.)I)e'icctucst (o nsc" o
" li',c.
[h)$'.taint'left '[hd.city,
~
Cr>ttf!)'-Pft".t[t.cfi)ytt.5dt such'n.
hi[Itsp'Wscl'u!of p)['"Ihe City,.lh,ttle.,
u'>tice'I'itnrtbUle j dtft)oil "nf. lieth',i
- uttt~) [.pLhiring'ryfnp [o.work,out,i
. n"[hi ",ct'pfcc1nQ[,-ytt Ihe 's nic"..
thne.ts
t".It.'g'o rctiM. be fonsMer.. t Ltttlhfsttta q
( II I' I:
chio!>d? OLIO poivcr'dtihl nitty";ttV'Cctt City aru ln lhe p)an fs tile ottly bc.a tetnparary'elief for.luce( 'as'ose)bfe as I
, ~
> ~
~
n
>o FVL rates na vrfilc[I Pv&")f'P[IV.'fdfusek [bscdof)<r<<.-
an lnducemei.t to athtivtth" Ihc'c)ty'll nt!empts loot
~
<<..':,,)purchase
.orlando'nivcr, L)tc)d'rt
)Sniil.)he[j'lt'4 [IOSS)bifft)t thC City I
,colt)d "p!Irdsatc Ff'I.. povter to
'.help keep electr)c blils dosrn this siihlhit'r,
~. '.Ir ".IAnn'1'ca)'httivj[rrc I 'gct.lt
. 'tqIii,r.:[f[Vkso~tli; f'thai) Iti)rrgene?I!I)ltft.>Cctst~
I, able."
The ht)c>I Is
~
~
Wing lalV SulPhur luC) early tlitf City alfie)a)S Vrhd are !tie)If,JI !Fr)."SC! )rtp the Sye,em.
~
- ~.r.' 'djuslnient )charge:of nti)ta ILktno,t ihnyttt'I>+',z'azstdot to",)',o[p'(hft'I f,lTTI.C'A)A hfnnt!ay IJtc f)l per ),0&kflnsvatt th>urs'.s) eit Suhtntcr I sea)t,to. In.[t
. g))t)c.
ITIC Sa V.IIP>
O c sav!Isgi io stern Dcacli clccttlc 'umntc(-
'>c. ':. j'; p..,>l'fTf.".['IQJI'I C'Q
. Q [;I P r itstoamvers [
~ '
'td Itl a t,stre)i tii"'Gait s to [tee I)uis:ctf'ar'ff 'tba.
8 ~
c O.
Sun., June tL tete, V<<ro Seectr, Fte>> PRKSWOIJRNAL'CA vi".r'-'PI n.i':To it."':
~ ~
~'
l V
. propossL should dcUvcr theft Qndhgs h.
20 days
,. The-councilman chimed the dolhr
~
- differential-If the. sty combhecL'vfth i
.'PjfcLat thdptoposcdSthg mfU!On wou!d
, save the city."fn cscasn of $4 nJU!on
- .;The, prfmiry-'. beacf fcfary.,OL. the
.savings;he.notocf'voafd be thi out~It S<<n Juno tr>tera.Van ncecnl.ptd
?
Thewaythctthecfthcnsof Vav Beach are being brshvashcd fato thinking that' they are gofntpto.gain snyQdng by.the sile of their powa.:phntuto. Fierce Povct'Is mcsL'snucdng
- "Whohas; wbo:willor who csnrsay thar
~
'ur ciccttfcMhvillbo less IIwe scU to.
'han? Hov mach h thecity paying to our
'hy~trnectpowcr plant forthe cfear~
J 'for thc many sttccc~Ughts thd trstQc, Ughts, the water'dcparancnt thrsewsge-'teatfng pfarn;M partS depernnent; thar comm~craters the"dtyu'
- poUce department snd Qre dcpettmmtKC Then whaL'Pfl?.Florfda Power.charge.
- as for this'scrvfce?~ ~~~ ~oct"',:
- 'hen aEOC thcse quests hive bcca'.
'onsfdcrcd ftmaytlan cut thssthesma!I:
"smounc we'stand to.nce foe"oun powcc:
~: plant <<!deb h paying Eocftscf?:snct has'
""corJtfbutcctm!Ufons to the genera?.fund; Jhnot as gooc0adca? as we srcbcfng fccf.
to brUcr<<cosy!u~,'~
- MV."Nf...h.,:.-.-...........,, "..
. ttrO IndLuiRfver Boafervardts...'uc"..:
'cro BcschMs'"=> m~~~~i
~
. -.'I 1
r h
,.city usas, vho are htccd to pay hlghct,
~ cfccttfc costs -,.' "
~
.Out<Mty, users're chargccL a. 10~
. pcrccat surcharge, he said. '"Ihh.was,:]
. not Ihe.'Intent when lt was p oa the.-
booksthccouncfmsn conLrnaccL ~
Grcgg.ihtcd several alternatives to the
. sale OIthe munldpel phut. "We whh.vo, hid bctta'.n'ews," he rcnarkccLr:,'; '
. Oae. altcrnatfvdrvoald be to scckcsr
. shard.h:tho nudcsr cspsdty o?
FP'he noted;ben added such a move could' Invo!ve. a'Qve year!awsa!L Ir.hss bc
~, alleged;thar FPEcL' attempting.. to pÃnopolha thd'Jlacfcsr~opadty fn.
- ante an/'sever&~Ss IQ Florida haveII.
QlccLjuftaq.,cafe ~ ~
,;, hnothei optfonhGrr'gg.Ihtefavis'ag sscek'i share fn the JOSEF!Cr!da Nudear ~
'Power snd Lightsyacn. But thh Mca h.'l0 to IS.ycsrafn the-haute, he safd'
- won' solve oar ace&am prob!an,". the
( cnancflmsn rcnlsrkccLq"
~
~
burTakfagL Coartl SCL~On Florida.'iksnsmhsfon Company to. gfvei
~. 'apasbaroo?natura!gas vasoutffncd as'0
';another;.Op6xir.-Bat; Grcgg
~ said.he..{ '
qaestfonecLbow.much gss would be ob q
'. tshecl I? the sdt'was successful
,ThecQnaL'ahcrnstfve would be,ts ";
,:pIltcflaser.'power:?lorn another source.l Grcgg sckndwfcdgccL A!~hugh ccd d.
, fnthestatdcoufdhelps~ly Veto Beach I
. ft ",vouldn't solve the ptoblcn." he safcL I '
r'.ThereJSOalyaQVeyeargaararned,and,
~:.puch. a.solution lh not."priafcsf.
~
'cooomlcsL'.I hd notccL To ad4to'the dQcnme,lGrcgg ssfd
,there h.no guararsce that FP&f rites:
i wQItansln unchanged. Inisa he noted.
after Hutchhson,hhad was opcrsmg
..'PgcL.
would probably alk.lor a-rate;.
- "Wo'vcr got real problcns",. brass!de,
~
.. These sra bird times 'c.)
~~wAl.hBut!Grcgg.stresMd that lt vouhL-
'robsblybo,"fn ~h best fmcrests" ol'"er,.
city I? the sile were cocapfacd bctwecl FPgd. H sho anph~ tea:
gash'Nt gohgto be thc saf radon of the CLZol c VetoBeach's c?cctrfc system."
s t ~
,u h1slh', '
~
~ ~ ~
~
r
~
P
~
I
-~-
,':. Po e
a p
I
- For. G'i.egg: Review Vao Beach Cty Wcndcsdsy reviewed Power.. snd. Light (FP?cL) before tho pohls of the proposed sale ol the mcnbcrsof the lad!La River Taxpsyas
. city's munldpal power phut to Florida Asgcfstfoa..s
~.
~ + '..
~
~
~
~
In lbs.group s fast schcduf antEr gcptcnbcr,. Grcgg outUned, th
~ proposal and.ssf4it vas,"the best thing >
the city;csn. possibly do under the.l lc,.",1
,,: He sddcdkthst Ernst md Ernst.the. I
~, auditing Qrta..which.'wss chosen by thd
.councQ tor.review and evaluatethe