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HomeMy WebLinkAbout2009 - Franchise AgreementORDINANCE NO. 09-03 AN ORDINANCE GRANTING TO FLORIDA POWER & LIGHT COMPANY, ITS SUCCESSORS AND ASSIGNS, AN ELECTRIC FRANCHISE, IMPOSING PROVISIONS AND CONDITIONS RELATING THERETO, PROVIDING FOR MONTHLY PAYMENTS TO THE CITY OF SEBASTIAN, AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Sebastian, Florida recognizes that the City of Sebastian and its citizens need and desire the continued benefits of electric service; and WHEREAS, the provision of such service requires substantial investments of capital and other resources in order to construct, maintain and operate facilities essential to the provision of such service in addition to costly administrative functions, and the City of Sebastian does not desire to undertake to provide such services; and WHEREAS, Florida Power & Light Company (FPL) is a public utility which has the demonstrated ability to supply such services; and WHEREAS, there is currently in effect a franchise agreement between the City of Sebastian and FPL, the terms of which are set forth in City of Sebastian Ordinance No. 0- 82-3, passed and adopted May 10, 1982, and FPL's written acceptance thereof dated May 27, 1982 granting to FPL, its successors and assigns, a thirty (30) year electric franchise ("Current Franchise Agreement"); and WHEREAS, FPL and the City of Sebastian desire to enter into a new agreement (New Franchise Agreement) providing for the payment of fees to the City of Sebastian in exchange for the nonexclusive right and privilege of supplying electricity and other 1 services within the City of Sebastian free of competition from the City of Sebastian, pursuant to certain terms and conditions, and WHEREAS, the City Council of the City of Sebastian deems it to be in the best interest of the City of Sebastian and its citizens to enter into the New Franchise Agreement prior to expiration of the Current Franchise Agreement; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, FLORIDA: Section 1. There is hereby granted to Florida Power & Light Company, its successors and assigns (hereinafter called the "Grantee"), for the period of 30 years from the effective date hereof, the nonexclusive right, privilege and franchise (hereinafter called "franchise") to construct, operate and maintain in, under, upon, along, over and across the present and future roads, streets, alleys, bridges, easements, rights-of-way and other public places (hereinafter called "public rights-of-way"} throughout all of the incorporated areas, as such incorporated areas may be constituted from time to time, of the City of Sebastian, Florida, and its successors (hereinafter called the "Grantor"), in accordance with the Grantee's customary practice with respect to construction and maintenance, electric light and power facilities, including, without limitation, conduits, poles, wires, transmission and distribution lines, and all other facilities installed in conjunction with or ancillary to all of the Grantee's operations (hereinafter called "facilities"), for the purpose of supplying electricity and other services to the Grantor and its successors, the inhabitants thereof, and persons beyond the limits thereof. Section 2. The facilities of the Grantee shall be installed, located or relocated so as to not unreasonably interFere with traffic over the public rights-of-way or with reasonable egress from and ingress to abutting property. To avoid conflicts with traffic, the location or 2 relocation of all facilities shall be made as representatives of the Grantor may prescribe in accordance with the Grantor's reasonable rules and regulations with reference to the placing and maintaining in, under, upon, along, over and across said public rights-of-way; provided, however, that such rules or regulations (a) shall not prohibit the exercise of the Grantee's right to use said public rights-of-way for reasons other than unreasonable interFerence with motor vehicular traffic, (b) shall not unreasonably interFere with the Grantee's ability to furnish reasonably sufficient, adequate and efficient electric service to all of its customers, and (c) shall not require the relocation of any of the Grantee's facilities installed before or after the effective date hereof in public rights-of-way unless or until widening or otherwise changing the configuration of the paved portion of any public right- of-way used by motor vehicles causes such installed facilities to unreasonably interFere with motor vehicular traffic. Such rules and regulations shall recognize that above-grade facilities of the Grantee installed after the effective date hereof should be installed near the outer boundaries of the public rights-of-way to the extent possible. When any portion of a public right-of-way is excavated by the Grantee in the location or relocation of any of its facilities, the portion of the public right-of-way so excavated shall within a reasonable time be replaced by the Grantee at its expense and in as good condition as it was at the time of such excavation. The Grantor shall not be liable to the Grantee for any cost or expense in connection with any relocation of the Grantee's facilities required under subsection (c) of this Section, except, however, the Grantee shall be entitled to reimbursement of its costs from others and as may be provided by law. Section 3. The Grantor shall in no way be liable or responsible for any accident or damage that may occur in the construction, operation or maintenance by the Grantee of its facilities hereunder, and the acceptance of this ordinance shall be deemed an 3 agreement on the part of the Grantee to indemnify the Grantor and hold it harmless against any and all liability, loss, cost, damage or expense which may accrue to the Grantor by reason of the negligence, default or misconduct of the Grantee in the construction, operation or maintenance of its facilities hereunder. Section 4. All rates and rules and regulations established by the Grantee from time to time shall be subject to such regulation as may be provided by law. Section 5. As a consideration for this franchise, the Grantee shall pay to the Grantor, commencing 90 days after the effective date hereof, and each month thereafter for the remainder of the term of this franchise, an amount which added to the amount of all licenses, excises, fees, charges and other impositions of any kind whatsoever (except ad valorem property taxes and non-ad valorem tax assessments on property) levied or imposed by the Grantor against the Grantee's property, business or operations and those of its subsidiaries during the Grantee's monthly billing period ending 60 days prior to each such payment will equal 5.9 percent of the Grantee's billed revenues, less actual write-offs, from the sale of electrical energy to residential, commercial and industrial customers (as such customers are defined by FPL's tarif� within the incorporated areas of the Grantor for the monthly billing period ending 60 days prior to each such payment, and in no event shall payment for the rights and privileges granted herein exceed 5.9 percent of such revenues for any monthly billing period of the Grantee. The Grantor understands and agrees that such revenues as described in the preceding paragraph are limited, as in the existing franchise Ordinance No. 0-82-3, to the precise revenues described therein, and that such revenues do not include, by way of example and not limitation: (a) revenues from the sale of electrical energy for Public Street and Highway Lighting (service for lighting public ways and areas); (b) revenues from 4 Other Sales to Public Authorities (service with eligibility restricted to governmental entities); (c) revenues from Sales to Railroads and Railways (service supplied for propulsion of electric transit vehicles); (d) revenues from Sales for Resale (service to other utilities for resale purposes); (e) franchise fees; (fl Late Payment Charges; (g) Field Collection Charges; (h) other service charges. Section 6. If during the term of this franchise the Grantee enters into a franchise agreement with any other municipality located in Indian River County, Florida, or Brevard County, Florida, where the number of Grantee's active electrical customers is equal to or less than the number of Grantee's active electrical customers within the incorporated area of the Grantor, the terms of which provide for the payment of franchise fees by the Grantee at a rate greater than 5.9% of the Grantee's residential, commercial and industrial revenues (as such customers are defined by FPL's tarif�, under the same terms and conditions as specified in Section 5 hereof, the Grantee, upon written request of the Grantor, shall negotiate and enter into a new franchise agreement with the Grantor in which the percentage to be used in calculating monthly payments under Section 5 hereof shall be no greater than that percentage which the Grantee has agreed to use as a basis for the calculation of payments to the other Indian River County municipality or Brevard County municipality, provided, however, that such new franchise agreement shall include additional benefits to the Grantee, in addition to all benefits provided herein, at least equal to those provided by its franchise agreement with the other Indian River County municipality or Brevard County municipality. Subject to all limitations, terms and conditions specified in the preceding sentence, the Grantor shall have the sole discretion to determine the percentage to be used in calculating monthly payments, and the Grantee 5 shall have the sole discretion to determine those benefits to which it would be entitled, under such new franchise agreement. Section 7. As a further consideration, during the term of this franchise or any extension thereof, the Grantor agrees: (a) not to engage in the distribution and/or sale, in competition with the Grantee, of electric capacity and/or electric energy to any ultimate consumer of electric utility service (herein called a"retail customer") or to any electrical distribution system established solely to serve any retail customer formerly served by the Grantee, (b) not to participate in any proceeding or contractual arrangement, the purpose or terms of which would be to obligate the Grantee to transmit and/or distribute, electric capacity and/or electric energy from any third party(ies) to any other retail customer's facility(ies), and (c) not to seek to have the Grantee transmit and/or distribute electric capacity and/or electric energy generated by or on behalf of the Grantor at one location to the Grantor's facility(ies) at any other location(s). Nothing specified herein shall prohibit the Grantor from engaging with other utilities or persons in wholesale transactions which are subject to the provisions of the Federal Power Act. Additionally, nothing herein shall prohibit Grantor from adopting or complying with "green initiatives" (defined as environmental or alternative energy initiatives including both conservation and the generation or use of electricity provided in whole or in part by wind, solar, tidal, geothermal, ocean currents, biomass or other natural processes) which enable or require Grantor to generate electrical energy for consumption at facilities owned or operated by Grantor, provided that such initiatives and the implementation of same do not violate any of the terms or conditions of this New Franchise Agreement, specifically including but not limited to Sections 7(a), 7(b) and 7(c) of this Agreement as more fully stated above. � Nothing herein shall prohibit the Grantor, if permitted by law, (i) from purchasing electric capacity and/or electric energy from any other person, or (ii) from seeking to have the Grantee transmit and/or distribute to any facility(ies) of the Grantor electric capacity and/or electric energy purchased by the Grantor from any other person; provided, however, that before the Grantor elects to purchase electric capacity and/or electric energy from any other person, the Grantor shall notify the Grantee. Such notice shall include a summary of the specific rates, terms and conditions which have been offered by the other person and identify the Grantor's facilities to be served under the offer. The Grantee shall thereafter have 90 days to evaluate the offer and, if the Grantee offers rates, terms and conditions which are equal to or better than those offered by the other person, the Grantor shall be obligated to continue to purchase from the Grantee electric capacity and/or electric energy to serve the previously-identified facilities of the Grantor for a term no shorter than that offered by the other person. If the Grantee does not agree to rates, terms and conditions which equal or better the other person's offer, all of the terms and conditions of this franchise shall remain in effect. Section 8. If the Grantor grants a right, privilege or franchise to any other person or otherwise enables any other such person to construct, operate or maintain electric light and power facilities within any part of the incorporated areas of the Grantor in which the Grantee may lawfully serve or compete on terms and conditions which the Grantee determines are more favorable than the terms and conditions contained herein, the Grantee may at any time thereafter terminate this franchise if such terms and conditions are not remedied within the time period provided hereafter. The Grantee shall give the Grantor at least 60 days advance written notice of its intent to terminate. Such notice shall, without prejudice to any of the rights reserved for the Grantee herein, advise the 7 Grantor of such terms and conditions that it considers more favorable. The Grantor shall then have 60 days in which to correct or otherwise remedy the terms and conditions complained of by the Grantee. If the Grantee determines that such terms or conditions are not remedied by the Grantor within said time period, the Grantee may terminate this franchise agreement by delivering written notice to the Grantor's Clerk and termination shall be effective on the date of delivery of such notice. Section 9. If as a direct or indirect consequence of any legislative, regulatory or other action by the United States of America or the State of Florida (or any department, agency, authority, instrumentality or political subdivision of either of them) any person is permitted to provide electric service within the incorporated areas of the Grantor to a customer then being served by the Grantee, or to any new applicant for electric service within any part of the incorporated areas of the Grantor in which the Grantee may lawfully serve, and the Grantee determines that its obligations hereunder, or otherwise resulting from this franchise in respect to rates and service, place it at a competitive disadvantage with respect to such other person, the Grantee may, at any time after the taking of such action, terminate this franchise if such competitive disadvantage is not remedied within the time period provided hereafter. The Grantee shall give the Grantor at least 90 days advance written notice of its intent to terminate. Such notice shall, without prejudice to any of the rights reserved for the Grantee herein, advise the Grantor of the consequences of such action which resulted in the competitive disadvantage. The Grantor shall then have 90 days in which to correct or otherwise remedy the competitive disadvantage. If such competitive disadvantage is not remedied by the Grantor within said time period, the Grantee may terminate this franchise agreement by delivering written notice to the Grantor's Clerk and termination shall take effect on the date of delivery of such notice. 0 Section 10. Failure on the part of the Grantee to comply in any substantial respect with any of the provisions of this franchise shall be grounds for forfeiture, but no such forfeiture shall take effect if the reasonableness or propriety thereof is protested by the Grantee until there is final determination (after the expiration or exhaustion of all rights of appeal) by a court of competent jurisdiction that the Grantee has failed to comply in a substantial respect with any of the provisions of this franchise, and the Grantee shall have six months after such final determination to make good the default before a forfeiture shall result with the right of the Grantor at its discretion to grant such additional time to the Grantee for compliance as necessities in the case require. Section 11. Failure on the part of the Grantor to comply in substantial respect with any of the provisions of this ordinance, including but not limited to: (a) denying the Grantee use of public rights-of-way for reasons other than unreasonable interference with motor vehicular traffic; (b) imposing conditions for use of public rights-of-way contrary to Florida law or the terms and conditions of this franchise; (c) unreasonable delay in issuing the Grantee a use permit, if any, to construct its facilities in public rights-of-way, shall constitute breach of this franchise and entitle the Grantee to withhold all or part of the payments provided for in Section 5 hereof until such time as a use permit is issued or a court of competent jurisdiction has reached a final determination in the matter. The Grantor recognizes and agrees that nothing in this franchise agreement constitutes or shall be deemed to constitute a waiver of the Grantee's delegated sovereign right of condemnation and that the Grantee, in its sole discretion, may exercise such right. Section 12. The Grantor may, upon reasonable notice and within 90 days after each anniversary date of this franchise, at the Grantor's expense, examine the records of the Grantee relating to the calculation of the franchise payment for the year preceding L•� such anniversary date. Such examination shall be during normal business hours at the Grantee's office where such records are maintained. Records not prepared by the Grantee in the ordinary course of business may be provided at the Grantor's expense and as the Grantor and the Grantee may agree in writing. Information identifying the Grantee's customers by name or their electric consumption shall not be taken from the Grantee's premises. Such audit shall be impartial and all audit findings, whether they decrease or increase payment to the Grantor, shall be reported to the Grantee. The Grantor's right to examine the records of the Grantee in accordance with this Section shall not be conducted by any third party employed by the Grantor whose fee, in whole or part, for conducting such audit is contingent on findings of the audit. Grantor waives, settles and bars all claims relating in any way to the amounts paid by the Grantee under the Current Franchise Agreement embodied in Ordinance No. 0-82-3. Section 13. The provisions of this ordinance are interdependent upon one another, and if any of the provisions of this ordinance are found or adjudged to be invalid, illegal, void or of no effect, the entire ordinance shall be null and void and of no force or effect. Section 14. As used herein "person" means an individual, a partnership, a corporation, a business trust, a joint stock company, a trust, an incorporated association, a joint venture, a governmental authority or any other entity of whatever nature. Section 15. Ordinance No. 0-82-3, passed and adopted May 10, 1982 and all other ordinances and parts of ordinances and all resolutions and parts of resolutions in conflict herewith, are hereby repealed. 10 Section 16. As a condition precedent to the taking effect of this ordinance, the Grantee shall file its acceptance hereof with the Grantor's Clerk within 30 days of adoption of this ordinance. The effective date of this ordinance shall be the date upon which the Grantee files such acceptance. The foregoing Ordinance was moved for adoption by Councilmember Simchick The motion was seconded by Counci�member Coy and, upon being put to a vote, the vote was as follows: Mayor Richard Gillmor aye Vice Mayor Jim Hill aye Councilmember Andrea Coy aye Councilmember Dale Simchick aye Councilmember Eugene Wolff aye The Mayor thereupon declared this Ordinance duly passed and adopted this 22nd day of April , 2009. ATTEST: � _----- Sally A. Maio, MC City Clerk 11 • C`,� ,� • •' �� lr II • �/e� l� � -� : , i �� �_, .. . .. Approved as to Form and Legality for Reliance by the City of Sebastian Only: � � Robert A. Ginsburg, City Attorney ACCEPTANCE OF ELECTRIC FRANCHISE ORDINANCE NO. 09-03 BY FLORIDA POWER & LIGHT COMPANY City of Sebastian, Florida May 1, 2009 Florida Power & Light Company does hereby accept the electric franchise in the City of Sebastian, Florida, granted by Ordinance No. 09-03, being: AN ORDINANCE GRANTING TO FLORIDA POWER & LIGHT COMPANY, ITS SUCCESSORS AND ASSIGNS, AN ELECTRIC FRANCHISE, IMPOSING PROVISIONS AND CONDITIONS RELATING THERETO, PROVIDING FOR MONTHLY PAYMENTS TO THE CITY OF SEBASTIAN, AND PROVIDING FOR AN EFFECTIVE DATE. which was passed and adopted on April 22, 2009. This instrument is filed with the City Clerk of the City of Sebastian, Florida, in accordance with the provisions of Section 16 of said Ordinance. FLORIDA POWER & LIGHT COMPANY ��1. � . Pamela M. Rauch, Vice President ATTEST: � Ja e Poppell, Assistant Secretary I HEREBY ACKNOWLEDGE receipt of the above Acceptance of Electric Franchise Ordinance No. 09-03 by Florida Power & Light Company, and certify that I have filed the same for record in the permanent files and records of the City of Sebastian, Florida on this � day of , 2009. (SEAL) S� , �f . City Clerk, C' of Sebastian, Florida 1//� �PL� Dear Valued Customer: I'm writing to make you aware that today FPL filed with the Florida Public Service Commission the required petition, testimony and data supporting our request for a January 2013 change in base rates. With the proposed base rate increase and the latest estimates for fuel and other components of electric service, FPL's typical 1,000-kWh residential bill is projected to increase by about $2.48 a month, or about 8 cents per day compared to today's bill. This includes the proposed base rate increase of $6.97 a month, or about 23 cents a day, offset in part by an estimated $4.49 a month net decrease in other components of a typical 1,000-kWh residential customer bill in 2013. For business customers, due to fuel efficiency savings, current projections of fuel prices, and other expected changes to base rates and clauses in 2013, the net impact on total bills is estimated to range from a decrease of 3 percent to an increase of 4 percent. The increase would not take effect until January 2013, and we expect that, even with the change, our customer bills will still be the lowest in the state and well below the national average. In fact, from 2006 to 2012, FPL's total 1,000-kWh residential customer bill has decreased 13 percent. FPL's business customer bills have decreased, on average, 14 percent during the same time period. Also today we launched a new, online calculator at www.FPL.com/answers so that residential customers can see the impact on their bills of the company's requested rate adjustment. Business customers also will find updated information on this site. Key elements underlying the company's request include: • The need to address the impact of the accelerated amortization of non-cash surplus depreciation, which was part of a 2010 base rate case settlement • Cost recovery for the new Cape Canaveral Next Generation Clean Energy Center, which will use 33 percent less fuel per megawatt-hour of power generated and far fewer emissions than the former plant • The impact of inflation on the cost of many materials and products needed to provide affordable, reliable power • The anticipated addition of nearly 100,000 new customers between the end of 2010 and the end of 2013 • A proposed adjustment to an 11.25 percent midpoint return on equity (ROE), which falls within the range of currently allowed ROEs for other investor-owned utilities in the state. Florida Power & Light Company 700 Universe Boulevard, Juno Beach, FL 33408 We know there is never a good time for a rate increase, and we are particularly mindful that the economy remains uncertain. We've worked hard to minimize the required increase, and we're committed to working equally hard to make sure our customers continue to have the lowest electric bills in the state, reliability that is among the best in the country and top-notch customer service. Clean, low-cost, high-quality electric service is a competitive advantage for our customers and our state. As a community leader and FPL customer, your local stewardship and partnership with us mean a great deal to us. Please feel free to contact me if you would like to discuss FPL's base rate proposal further. A copy of FPL's Petition for Rate Increase is included with this letter, in compliance with Rule 25-22.0406(2), Florida Administrative Code. Sincerely, � �. Pamela Rauch Vice President, Development and External Affairs 1II�� Florida Power & Light Company, P.O. Box 14000, Juno Beach, FL 33408-0420 FPL� Dear valued customer, On March 18, 2009, Florida Power & Light Company filed a rate proposal with the Florida Public Service Commission (PSC) that would support investment in improving fuel efficiency, generating cleaner energy and enhancing system reliability while keeping customer bills low. FPL notified the PSC in November 2008 of our intention to file a new rate proposal because the company's existing rate term expires at the end of 2009. Our bills are among the lowest in the state and well below the national average, and we're working hard to keep them that way by making smart investments to benefit our customers. These investments help to reduce the impact of volatile fuel prices, which in turn help to keep customers' total bills lower over the longer term as well. The typical 1,000 kilowatt-hour residential customer bill is projected to decrease effective Jan.1, 2010 Under the company's proposal, the typical 1,000 kilowatt-hour residential customer bill would decrease by an estimated $4.92 monthly, or 4.5 percent, from $109.55 to $104.63 on Jan. 1, 2010. This bill estimate reflects an increase in the base rate, which is more than offset by reductions in the cost of fuel based on Feb. 9, 2009, fuel price projections for 2010 as well as improvements in fuel efficiency. According to the most recent data available from the Florida Municipal Electric Association and Edison Electric Institute, FPL's total typical 1,000 kilowatt-hour residential customer bill is 18 percent lower than the average electric bill in Florida and 17 percent lower than the national average, even as FPL has made investments to make the company one of the most efficient and cleanest energy generators in the United States. As a result of the company's emphasis on operating efficiently, FPL's retail base rates are 17 percent lower now than they were in 1985 — the last time a general base rate increase was sought and granted — despite inflation of 99 percent for the same period. The total bill increased 31 percent over this period of more than two decades, driven primarily by increases in pass-through fuel charges, on which FPL makes no profit. We're investing to make the infrastructure stronger, smarter, cleaner, more efficient and less reliant on any single source of fuel While we are mindful of the difficult economy, we are also responsible for making prudent, long lead-time investments in the electrical infrastructure. We're investing to make our infrastructure stronger every day, in good weather and bad. We're investing in smart technology that gives customers more control and improves reliability. We're doing our part to fight climate change by investing in even cleaner energy. And we're investing (more) an FPL Group company to increase fuel efficiency and diversity of fuel supply. By doing so, we are strengthening our state's essential infrastructure and creating jobs while helping to secure Florida's energy future. A general base rate increase will support capital investments in: • Strengthening the transmission and distribution system to enhance its reliable operation day to day and during extreme weather conditions. • Advanced meters and other "smart grid" technology that will give customers more information and control over their energy usage in the future while enhancing the company's ability to manage the system more efficiently and to predict and act on potential reliability issues before they occur. • Existing fossil fuel power generation facilities to enhance their efficient and reliable operation and to lower fuel costs for customers. • Existing nuclear power generation facilities to ensure reliable performance over their lifetimes, which have recently been extended by an additiona120 years. FPL's base rate proposal also includes funding to cover the cost of repairing damage from future hurricanes. Currently, base rates do not include the cost of storm restoration, and insurance for such costs is not available. Floridians expect affordable, reliable, clean energy solutions now and in the future, and we at FPL have a plan of action to meet this expectation by investing to make our infrastructure stronger, smarter, cleaner, more efficient and less reliant on any single source of fuel. As both a community leader and customer, your local stewardship and partnership with FPL mean a great deal to us. Please do not hesitate to contact me if you would like to discuss FPL's base rate proposal further. A copy of FPL's Petition for Rate Increase is included herewith, in accordance with Rule 25-22.0406(2), Florida Administrative Code. You will also find more details at www.FPL.com/ourcommitment. Sincerely, �Q- t-�' L1 Pam Rauch Vice President, External Affairs FPL� Dear Government O�cial: RE: Florida Power & Light Company Petition for Base Rate Increase Rule 25-22.0406(4), Florida Administrative Code Last month I sent you a copy of Florida Power & Light Company's (FPL's) petition to the Florida Public Service Commission (PSC) for a base rate increase, which we filed on March 18, 2009, with new rates to be in effect Jan. 1, 2010. The purpose of this letter is to provide you a synopsis of FPL's request, as required by the above-referenced rule. At 19 percent below the state's average, FPL's bill is among the very lowest in Florida and below the national average as well, even as FPL has made investments to make the company one of the most e�cient and clean energy generators in the United States. Under FPL's proposal, the typical 1,000 kilowatt-hour residential customer bill would go down by an estimated $4.92 monthly, or 4.5 percent, from $109.55 to $104.63 on Jan. 1, 2010. This bill estimate reflects an increase in the base rate of $12.40, which is more than offset by a$17.83 reduction in the cost of fuel based on Feb. 9, 2009, fuel price projections for 2010 as well as improvements in fuel efficiency. It is helpful to understand that the largest part of the FPL bill is comprised of two components. Base rates represent 37 percent of the total bill. As a result of our emphasis on efficiency, FPL's retail base rates are 17 percent lower now than they were in 1985 — the last time a general base rate increase was sought and ganted — despite inflation of 99 percent for the same period. If our base rates had increased with inflation since 1985, a typical 1,000 kilowatt-hour residential bill today would be more than $165, not $109.55. The second major component of the bill, fuel, represents 51 percent of the total bill. FPL does not profit off the cost of fuel. Nevertheless, the company has focused significant time and money to improve fuel efficiency and mitigate volatile fuel costs in order to benefit customers. As a result, our fossil fuel power plant fleet is the most fuel-e�cient among large-scale utilities nationwide. Looking to the future, FPL continues to work toward even better fuel eff'iciency. For example, our West County Unit 3 in Palm Beach County will be one of the nation's most efficient of its kind, saving customers more than $330 million in fuel costs over its lifetime. In addition, modernizing the power plants at Riviera Beach and Cape Canaveral will reduce fuel use per kilowatt-hour by 33 percent. Copies of the enclosed synopsis also are being distributed to each main county library in the areas served by FPL. Please do not hesitate to call me if you have any questions or concerns, or if you would like to discuss this matter further. Sincerely, �����u.�lG�. �.c.� Pamela Rauch Vice President, E�ernal Affairs an fPL Group company 25-22.0406 Notice and Public Information on General Rate Increase Requests by Electric, Gas and Telephone Companies. (1) The provisions of this rule shall be applicable to all requests for general rate increases by electric, gas and telephone companies subject to the Commission's jurisdiction. (2) Upon filing a petition for a general rate increase, the utility shall mail a copy of the petition to the chief executive officer of the governing body of each municipality and county within the service area affected. (3)(a) Within 15 days after it has been notified by the Commission that the Minimum Filing Requirements (MFRs) have been met, the utility shali place a copy of the MFRs at its officiai headquarters and at its business office in each municipality in which service hearings were held in the last general rate case of the utility. Within 15 days after the time schedule has been mailed to the utility, copies of the MFRs shall be placed in the utility business office in each additional city in which service hearings are to be held. Upon customer request a copy of the MFRs shall be placed in a utility business office not located in a city where a service hearing is to be held. The copies of the MFRs shall be available for public inspection during the utility's regular business hours. (b) In addition to the locations listed above, if the Commission determines that the locations listed above will not provide adequate access, the Commission will require that copies of the MFRs be placed at other specified locations. (4)(a) Within 15 days after the time schedule far the case has been mailed to the utility, the utility shall prepare and distribute a synopsis of the rate request. The synopsis shall be approved by the Commission or its staff prior to distribution and shall include: 1. A summary of the section of the MFRs showing a comparison of the present and proposed rates for major services; 2. A statement of the anticipated major issues involved in the rate case; 3. A copy of the executive summary filed with the MFRs; 4. A description of the ratemaking process and the time schedule established for the rate case; and 5. The locations at which complete MFRs are available. (b) Copies of the synopsis shall be distributed to the same locations as required for the MFRs, to the main county library within or most convenient to the service area and to the chief executive officer of each county and municipality within the service area affected. (5) Within 30 days after the rate case time schedule has been mailed to the utility, the utility shall begin sending a notice approved by the Commission or its staff to its customers containing: (a) A statement that the utility has applied for a rate increase and the general reasons for the request; (b) The locations at which copies of the MFRs and synopsis are available; (c) The time schedule established for the case, and the dates, times and locations of any hearings that have been scheduled; and (d) A comparison of current rates and service charges and the proposed new rates and service charges. Such notice shall be completed at least 10 days prior to the first scheduled service hearing. (6) At least 7 days and not more than 20 days prior to each service hearing, the utility shall have published in a newspaper of general circulation in the area in which the hearing is to be held a display advertisement stating the date, time, location and purpose of the hearing. The advertisement shall be approved by the Commission or its staff prior to publication. (7) When the Commission issues proposed agency action and a hearing is subsequently held, the utility shall give written notice of the hearing to its customers at least 14 days in advance of the hearing. This notice shall be approved by the Commission or its staff prior to distribution. (8) After the Commission's issuance of an order granting or denying a rate change, the utility shall give notice to its customers of the order and the revised rates. The notice shall be approved in advance by the Commission or its staff and transmitted to the customers with the first bill containing the new rates. Specific Authority 350.127(2), 366.05 FS. Law Implemented 120.569, 120.57, 364.01(4), 364.035(1), 364.04(3), (4), 364.05(1), (2), 364.19, 366.03, 366.041(1), 366.05(1), 366.06(I) FS. History—New 9-27-83, Formerly 25-22.406, Amended 5-27-93, 5-3-99.