Reso 2009-1419 - Laserfiche WebLink

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Page 3 provided to us via the GAF Tariff. FPL promised the MUUC, and confirmed this to the PSC staff, that they would deliver to the PSC in April 2008, their proposal for savings from O&M. FPL did not deliver a credit, FPL delivered a 1% increase in the cost of underground service. The MUUC objected to the tariff being implemented and now we must proceed with a full evidentiary hearing before the PSC to make the case for greater savings instead of an increase in the cost of underground service. The savings to be realized here is potentially the same that each community currently receives from the GAF Tariff (a 25% savings) that is in effect. The second item this funding request will pay for is extending the 25% credit to the new construction CIAC in circumstances where properties are being retrofitted with underground utility service at the same time as vacant tracts of land. Why should the vacant land portion of the project cost 25% more for underground service in such instances than the cost of converting existing utility facilities at existing properties? Negotiations with FPL were fruitless and amounted to foot dragging in the opinion of MUUC. Extending the 25% credit to the new construction contribution in aid of construction Numerous cities have encountered a situation where they want to do undeveloped areas (raw land about to be developed) with undergrounding at the same time they are converting existing developments to undergrounding, only to encounter a problem from FPL about extending the 25% credit to the areas being newly developed since that is not in the existing tariff. FPL was unwilling to work out this issue with the MUUC. We have one more issue that remains and it will not be taken up until the 4th quarter of 2009 and that is the corporate overhead add-on issue with FPL. Therefore, this is not the final payment request. You can anticipate the final payment request in FY 2010 for $12,000. That hearing should be over by April 2010. The current hearing which is the subject of the current payment request should be over by approximately September 2009. If you have additional questions after reading this email, please feel free to contact me. We need all of the financial help we can get now and in the future to enable local government in the FPL service area to deliver more affordable underground utility service.