UNITED STATESCL AR REGULATORY COHttZSSION

BEFORE THE ATOMIC SAFETY AND LZCENSIiVG BOARD

In The Hatter Of

Plorida Power 6 Light Company

(St. Lucie Plant, Unit No. 2)

))

) Docket No. 50-389A))

.II

I1

I

II

II

r

~ ~

0 ~

Index of A endices — Volume IZ

)Pages reserved|

fPages reserved]

[Pages reserved]

(Page reserved]

I.Pages reserved]

DOCKEDUSMC

ll Mg 28198~D'ffice

Of the SeCtet8lg'b~ Docketing ff SCWlCO

Branch

Cl-6

C7-8

C9-24

C25

,C26-31

Zn <he Matter of Florida Power & Li ht Com an

MOTION TO ESTABLISH PROCEDURES,FOR A DECLARATION .THAT A SITUATION INCONSISTENT

WITH THE ANTITRUST LAWS PRESENTLY EXISTS AND FOR RELATED RELIEF

-)~

)e

Ii'

~ I

I'

I

I

C

1

AEC Docket No. 50-, "Application forLicenses Under the Atomic Energy Actof 1954 As Amended," for Turkey PointNuclear Power Project, March 22, 1966

Letter from W. J. Clapp of Florida Power Corp.to Parks E. Baker of Seminole ElectricCooperative, December 7, 1955

Press Release, U.S. Department of Agriculture,Rural Electrification Administration, ReAtomic Power Plants Described at REAConference, Hay 15, 1956

PPL Form 12, 1970, 1971, 1972

.,I.Pages reserved]

C32-44

C45

C46

C47-50

C51-67

-

~ I, I

4

4

4I

„'!4 7<>.1'I

I y „4VI

I'

Volume XI

~Pe e

I:Pages reserved]

LPages reserved]

(Pages reserved]

(Page reserved]

LPage reserved]

jPages reserved]

/Pages reserved]

(Page reserved]

Excerpts from Cities'nswer to FPLinterrogatory

Report to Florida Operating Committee WorkingGroup, "A Florida Electric Power Pool," byPower Pooling Task Force, February 25, 1975

Excerpt from affidavit of Harry C. Luff,NRC Docket Nos. P-636-A and 50-389A,April 13, 1976

FPL memorandum, E. L. Bivans to Tracy Danese,re Affidavit of Harry C. Luff, NRC DocketNos. P-636-A and 50-389A, April 26, 1975

FPL memorandum, W. E. Coe to H. L. Allen, reNew Interchange Contracts with FloridaPower Corp. and Tampa Electric Co.,February 20, 1976

Excerpt from examination of E. L. Bivans,FERC Docket Nos. ER78-19, et al.

Energy Broker Smnmary Report, 4/11/77

[Pages reserved]

Lpages reserved]

t:Pages reserved]

C68-77

C78-84

C85-89

C90

C91

C92-132

C133-35

C136

C137-83

C184-298

C299-305

C306-09

C310

C311-12

C313

C314-42

C343-69

C370-85

Volume II

Pacae

i

~Page's reserved]

(Pages reserved]

C386-92

C393-98

Excerpts from transcript, Florida Power & Li ht.Co., FERC Docket No. -9574, 9 28 77 C399-402

Excerpt from Exhibit to Application filedby FPL to acquire Vero Beach, "Evaluationof the Impact of the Offer by Florida Powerand, Light Company to Purchase the VeroBeach Electric System," Ernst & Ernst, 7/76 C403-404

FPL Presentation of Offer Made by FPL forpurchase of Vero Beach Electric System C405-410

A endix D

FPL internal documents showing FPL awarenessof early Key West, Vero Beach and NewSmyrna Beach interest in nuclear power

Letter from Atomic Energy Commission toAlex Radin of American Public PowerAssociation re feasibilty of smallnuclear plants, March 2, 1961

Dl-3

D4-5

Handwritten notes re 1966 Homestead TurkeyPoint request, January 13, 1966

Letter from R. H. Fite to O. R. Pearson ofHomestead re response to Homesteadrequest for wholesale power, October 3,1967 D10-11

FPL Open Letter to Residents of Vero Beachre benefits of FPL ownership of electricsystem, September 4, 1976 D12

Preliminary Proposal of Electric UtilityService for New Smyrna Beach by FPL, 1974 D13-30

"Comparative Analysis of Municipal & InvestorOwned Utilities and the Benefits to TheirCustomers," Financial Planning, December11( 1973 D31-33

Documents showing FPL municipals-cooperativesstrategy, 7/30/76 D34-39

o ume

Excerpts from Cities'nswer to FPLinterrogatory

~Pe e

D40-121

FPL Memorandum from R. J. Gardner toF ~ E. Autrey re solid waste disposal,power generation, Sept mber 19, 1973 D122-30

Letter from R. F. Risavy of Allis-Chalmersto E. Bivans re enclosed paper byR. E. Bathen on proposed Florida MunicipalPower Pool, March 30, 1966 D131-54

Letter from W. J. Clapp to F. S. Black,R. H. Fite, C. A. Lilly, Jr. reR. E. Bathen's "Potential FloridaMunicipal Power Pool," 7/ll/67 D155-58

F?L Memorandum from H. W. Page to Ne McDonaldre legislation for municipal electriccooperatives; municipal power pool,December 21, 1971 D159

Report, "Yankee-Dixie Coordinated Plan ForProviding Low Cost Power to the EasternUnited States," June 1966 D160-205

Report, "The Twelve City Story," Robert E.Bathen, R.W. Beck &, Associates,October 26, 1970 D206-222

FPL Memorandum from B. H. Fuqua to A. M. Davisre legislation for municipal electriccooperatives, 5/3/71 D223-24

Handwritten notes of J. G. Spencer re threatof municipal ownership

FMUA documents re possibilities of municipalinterconnection throughout Florida

D225

D226-33

Excerpts from reports on Hew Smyrna BeachUtilities Commission meeting, 12/12/66 D234-38

Letter from John R. Kelly of Gainesville toA. B. Hopkins of Tallahassee reGainesville v. Florida Power Corintertie cases before FPC, 7/16 68

I

Agenda packet for Senior Management Councilmeeting of 8/6/75

D239-40

D241-53

Volume II

Pacae

Proposal for Hew Charter for Senior ManagementPlanning Council, 8/26/75

Documents showing FPL efforts to obtainindustrial load, 1978

t:Pages reserved]

I:Pages reserved)

Excerpt from Hational Power Survey of 1964,re coordinated planning

(Pages reserved]

D254«58

D259-64

D265-79

D280-308

D309-10

D311-18

Excerpt from "Brief of Petitioner FloridaPower & Light Company," FPL v. FERC,Case Ho. 80-5259, July 28, 1980

Vewspaper advertisement, The Wall StreetJournal, March 30, 1976,'In Supportof Huclear Energy," Edison ElectricInstitute

D319-24

D325

Excerpt from transcript, Florida Power 9 Li htCo., FERC Docket No. E-9574 Phase I S II~6Z7/77 D326-28

APPENDlX C

DooMe Fo. 50-

Qx the Mac er of

FJ.ada Paver & L~c, Campany

APPLECAZEOH FOR LlmrSM

UHD~ TEE ATOiiXC CLERGY ACT OF, 1954

hS At "%ED

'UKKY POSIT i'~ 2C4~c PMLHCT

i~~ 22, 1966

FLORIDA P~c Ea LICK CCMAiTf

APPLICATION FOR CONSTRUCTION P KIT, OP~TING LI~SZ,AND ~ APPPJ3ERIAT- LI~SZS

I Cene~i Xnformat~ on

H.ochfa Power &, Light Company, 4200 r1aglez S~t~Florida, pursuant to the A~c ""ergy Act of 1954, as amended,

and the CcanmLsskon's Rules and Regular~~ thereunder, hereby

applf.es for a11. Lkcenses necnssazy for the constzu~n and

opera~n of a press~ed water nuclear po~er pro5ect at

T~y PoMt, in Dade Counzy, Fl~.The lnformatkon requ9~ to be fished as pa~ of this

appU.cat&n m set out here&, ~uant to Secern 50.33 of the"

Co~~shm's Rules and Regular~~, and M a separate te~caldes~p~n and safety analysis repo~, fund piquant to

Sect~mn 50.34.

There are no~ under const ~Mn at Tuzhey Point tao fossQ.

fuel power plant ~ts kaama as Tu~y Po~~t Un'ts 1 and 2. The

nuc'ea paver project wfLX consMt of t~ reactors of 760 eve

~ss msad "nm calculated capabQJ.ty each which ~sponds to a

max~) cal~ted ~ctor power of 2300 mm and cdx~M ~ be~ as T~y Po&t Units 3 and 4. App13.cant has rese~ed the

opt~4 to f~ up 3. s pur~se of Uaf.t 4 on or beforeX

Nevember 15, 1966 ~

ZX License Aoolkcatiozz

Piquant to Section 104(b) of the Atomic Zaergy Ac of

1,954, as amended, PLor~ Paver 6 Light Company applies for a

cons~An petmit(s) and operating license(s) to acyl=e,possess, and use util~tion facilities for the Applicant's

nuclear p~er pLant project des~ted as Yuoey Point Uni s

3 and 4 scheduled for commercial operation ~ 1970 and 1971

resp~veLy.

Appl'cant f~r ~uests such so~e, spec~mL ~lea-,and by-product materiaL Licenses as may be necessary o- appro-

priate to ~ acquisftion, possession, and operat'on of these

faH~~s

The period for ~ch azz operating license(s) is sought isor forty (40) yearn.

ZEI Ccnnb~~ed Application

~uazzt to Sec ion 50 31 of the Rules azzd Regulations of

~ Cession, the applications for ~ Licenses ~uestedhave been combined

Although Applicant has zzot f~ed Qp its purchase of

Uni 4, the combined applicaNwn is necessary and appropriate

because pouring the foundat~s for, and the Kuscallarwn of,

portions of the p~ent fac~'itias for the tain reactors wU.L

begin at the same tow Cthin the definition Lu Secrion i0.10.

- C34—

- 3

For example, ~ intake and discharge s~ctures are designed,

sKed, and piped for the twM reactors. Constmctmn of these

petmanent facU.ities as well as the waste treatment build~~

wiLL begum as soon as ~ cons~ctmn p~t is issued. Some

coction facU,~cmobs, con~te focns fot'xampLe, wiLL.be

dismancled afte use at Unit 3 and subsequently as-used at

Unit 4. The economic saving f~ such tain. and sequent~

cons~~n procedure amounts to several millions of dolLars.

Site prepa~tion woM and other activities excluded Ln

Section 50.10 are al eady under way.

IV. Des ot~on of Oz'nimation and Business of Applicant

Applicant Ls engaged in the elecMc ut'''ty bush ess ~w

~, Scate of PLor'da. Applicant supplies elec c service ~~

most of the t~ ozy along ~ east atd Lower west coasts of

FLorida (except the Jacksonville area and five o~4 ~ci-pal't'es AM have municipal systems) Lnclud~ che

Cape 'c4maedy a~a, the ag 'cuL~ area arou=d southern and

eastern.Lake Qkeechobee, and poctions of canal and norW

ten~ .=Lorida

At the end of 1965 Applicant served a total of 979,632

customers, up 21. 6'f ove 1960. Revenues fo the year 1965

were $ 249,091,238, up 44.3,i ove 1960. Net ut~&i g pLant

afta deprec~wt~wn at the end of 1965 stood at Si34,655,168,

up 44.3r over 1960.

Applicant is a corporation duly au~4H "sd and ~gati~under the Laws ot the State of Florida. The nanes and post

office addresses of its di~ors and p&mcipaL officers, allof when are citi ens of the United States, a~ as foLlows:

Qeorme W. ~Lish, Ft. Lauderdale, FloridaRobert E Fite~ Coral 'Gables, Flu&&aR C Pulleruon, CoraL Gables, FLoridaRoberu E Y~ReiLL~ Jr, New Youth, New YorkAlf R Nielsen, West PaLa, Beach, Lor~Y~ Qtovit ~ Miasma. Beach, FLoridaBenton W. Powell, Sarasota, PLo&MaWLLELmn A Shands, Gainesvtlle, FLoridaMMreSor Scd.th, CoraL Qebles, H.or'da

?~cital 0 icersP

M~Bor Smi&, Ch;d=mx, Coral Gables, FLo~~Robert R Fite, President 6r, Qen Y~., Coral Qablas, FLo&~R C iClLermn, ~ec Vice esurient, Coral Gables FLo~~E L ALLen~ Vice ~residant, i~~, "Lo~Ben H Fuqua, Vice Presidenr, Cora1, Qabl,es, FLor~Lof~ Johnson, Operat~ Vice ~silent, P~, FLo~~J. WyU.y Ecch, Vice President, Coral Gablea, FloridaJ ~ H Keale, Vice P=esident~ ~4, FLo&~Qe~e ~xnan, Vice ~sident, Miani, FLo&~M B,McDonald, Vice President, Coral Gables, FLor'daF~ R. ~~Lsaps, Financial Vice President, ~, FloraE W Sad.th~ Vice President, Ft. Lauderdale, FLorMaJ. G. Spencer, J ., Vice ~sident, Y~, -LoridaR W. WaLL, J-., Vice President, ~, FLo&~A 3. Wr~t, Vice President, Daytona Beach, FLo~'daB. award Wood, Treasurer, Coral Gables, Flor'daW F. BLayloeh, Se~ta~, Cora1. Gables, Florida

Appl'cant is not owned, con~LLed, o d~4ated by an

alien~ a foreign. corporat44n, or a fore~ gove~t~ and isnot acr~ as gent or represenuative of any othe oe sons amaking ~ application.

— C36—

-5-

V, Use to Which the Facilities V1LL

H.orida has historicaLLy depended upon imported fossU. fuels

as its primary ene~ source Mth residual fueL oil be~ theI

most ately used. The Lo~-term ene~,needs of ~ state and

the mai tenance of Lorida's poLLution-f~ a~sphem

the cpplicat~ of nuclear porc as an One~ source+

FLarida's rapid post-var ~h has necessitated doubling

the Applicant's system capacity appro~mtely eve~ 5 years.. Lx

order to meet the an 'cipated needs of H.orida's rapidly ~v~economy, ~~ Applicant is pla~ to add 3,248,000 kilowatts of

generate~ capacity ~M the nLct 5 yea 5 e

1

The Licensed facU.ity ~ consist of (l) a nuclea power

generat on progec composed of t~ conventional press~edvater ~ctor ex!.ts each of which vtLl supply a mob~ generator

'WM a amd~ caLculated capability of 760 emw ~ss, (2) a

waste ~atnent build~~„(3) main ~fo~e~, (4) t-ansmission

facilities, and (5) additionaL a~~ systems and facilitiesas ~~~.

The spent fuel elements, after sto~e and prepa~t~mnor'hipnent

as ~ui~d by gove~entaL ~gulatimns, MLL be sh'pped

off-site to a reprocess~ plant licensed by ~ Aumtic mayCczaission Simila=ly, any Low LeveL solid vaste wiI.L be sh'pped

to a disposaL area approved by'the ~sion.

-6-

The total cost of ~4 nuclear project (excl~4 Land,

fuel Lwentory, and interest du~~ cons~tion) vQL be ove

$ 133,000,000. Con~ct~~g for t~ uni™s to be conpLeted a

year aper result in very substxn~l saW~s for ~ ent'm

nuclear project

The eject wiLL be cons~ed at Applicant'sTi~y'oint

site, a 1540-e~ ~ct M Dade County on the Flor'da

coast sone 25 niles south of ~i. The Project, together vith~ conventionaL units, villoccupy appro~tely 100 a~s of

this site, m4 read der being set as'de for a ccanprehensivel

re~at9.otal and wildlife nanagenent developnent pro~.

VT. Lnanc~~l Oual ification s

The fin:aucial qualificat~mns of Applicant to engage ~~ ~proposed a~viMes am set forth in Exh~bits 1 atd XX

&bit E is a copy of Appl'cant's 1965 Annual Repor" as

veLL as Facts Ec Figu~s, L956-1965, a ten-year stat'sticalsunna~ of Applicant~ s business.

The en~~ cos- of ~+ ~~m uiLL be paid fo- by Appl~~snt

available f~ uornaL and regula= so~as for con-Csacr~ of additions to all types of its utQ.ity pzope~ies.

Such f~s a~ (1) casu=@ f~s on hand; (2) f~s ave~able

f~ Mt~1 so~s, p -cipal2.y empprop~wted ear~~- s and

-7-

p~sMns for deprecation; (3) short tern back loans; and

(4) the sale of secur'ties when and as ~u9~.

Attached hereto as ~lt IX Ks a tabulat~mn of the

est~~ted costs of the project. The exhibit also sets forAan est~te of the anounts f~ the above sources which

Applicant antic'pates why become available du~~ the pored

1966 though 1970 co provMe for the costs expected to be

cu ed on ~ ~j ct.

Applicant vfJI. obtm~ approp~wte ~~perty and l~bQ~~~ms~ce for chis . ojec and its fuel and wfLL ~e the

Connf&siA7zt accord~ly.0

VIX Tee>~~ cs Qual f cat ons of Aoelkcant

Beg~fag some ten years ago, *ppU.cant pa~cipated with

Plo&da Zover Corporation and Tamaa electr'c Company m a

nuclea= power plant study ~up, and has vo~ v9.th-others'I

active M the nuclear Q.eld. „The object've vas to be ~m a

pos9.tMn to cons~et a nuclear pave plant vhen just~ 9.ed

George Qasnan, Vice WsDent ~w ~~e of eng'=eer~~

power plant cons~~ served as a fou cV~ ~d of the

Southern Lxterstate Nuclear BoaM rspz sent~~ the power

'=dus~..Curtly he i.s the Board 'Aember ~~sent~~

State of "Jornada Ee has been a nenbe of the H.o~da nuclear

-8-

and Space C~ss~mn since 1996 and a3.so setves on Atctd.c

EndusM~:-o~~ Ed3.son =Lee c Lnstf.rute, and Southeastezn

="Lac~ c ~change cosnd.c ees.

Applicant's contemplated ~~g pzog~ 3 eludes the

foLL~:1 Comprehensive cou se tn nuc3.ea- engMe~~, paver zeac or

te~logy and reac oz operon conduc ed by the Nuclear

Zugizx~~ Depart of ~ Uaive~9.ry of PLo&&a forappzozdmately 40 seaior eng~~eer~ and ape~~ personnel.

The cot~e wiL1 include 80 ho~ of classroom vozk and 80

ho~ of Laboratozy vorh on ~ Un3vers~ey of Fla~da Test

Reaczor (UFZR) .

2 Courses iaclud3mg classzoom and opezat~ exper'ence on

press~ed vater reactors conduc ed "by Vest~use over

appmm~atelp' 10-month period fo appzo~teL7 11 s~4

pLant opem~ personnel Lead~ to "cold" S~4r Reactoz

Ooerazor' licenses,

3. A s~-month tour of du~ at ~ San Onofre PLant of Sou~Cal&ozaia Maison Company or a ~up of s~4r plan

opera~ peaonnel acL~4 the T~y Pokunt plant super-

intendent for the purpose of pa~~c~ pat4~ ~ ~ tes~~

fueL Loa~4, and start-uy of mt prospect.

4. Compzehens9ve on-sf.te t~~ for oye~t~~ pemo~L

c~szocm and danons~t~mn woW to be suye~sed

—C4O-

-9-

by West~use. The n~~~ vill lead to Senior Reacto

Operator and Reactor Operator Licenses.

VIII. Con~ctors fo the ~See

The M5ect viL3. be designed and cons~cted by Bechtel

Corporation, AppU.cant's engineer~nsmctor for the tM430 mv caaventional units, Nos. I and 2, be~4 cons~a ed on

the same site. The te~cal quali icat~mns of Bechtel

Corporation are set forth in Exhibit III attached.

The nuclear steam supply system and turbine generators

are being furnished by West~use Ele~ c Corporation.

Westinghouse ~L also provide the ink~~ fuel fax the

~5ecr

The technicaL, qualU~'cat's of Westi ~+use aw scaa~-ed

bit IV attached.

IX Allocation of Special Nuclear material S%

Mere vf.11 be submitted subsequently, as appropriate and

necessary, a request fo a3.location of Spec~~ Nuclear Yate~~l

for m4 W5ect piquant to Sec<on 50.60 of the Rules andC

Regulations of the CmnsissMn Attached as Exhibit V is a

preU"6aazy schedule of SR mated'!. needed for w4 fLat t"wecores for ~ ~5ec .

— C41-

- 10-

X Comolet~mn Dates

Applicant desks a const=act~n pe~it on or before

January 1, 1967, which will aller commercial operat~mn to

begin M the year 1970. The earliest date fax cmxpietion

of the construction of Turkey PoMt Unit 3 is estimated to be

January 1, 1970'nd the latest completion date is est~~ted to

be Janu'~ 1, 1971 ~ Co~spo~ dates for T~y PoMt Unit 4

are one yea later.

XZ Res~c ed Data

Attached as Zxh'bit VE is statement regarding access to

resM cted data.

XZZ T ~ cal Information

The thecal iufoxmation xeq~~ by Para~ph 50.34 of

10 CFR Par SO is set forth in ~ accmxpany~ report

entitled:PBZL3XZi&EEK SAr~ AHALYSZS BEPQRfFLQRZEA POWWOW & LIGaX COMiAHYTURD POILU UHZTS 3 AHD 4

forwarded herewi~M and made a part hereof.'

Zt is requested that all orders, notices, papers, o other

communica~ ensued by the Coxn~sion M connea mn wiM th's'

C42—

appL~cma be aa9J.ed or deLivered co George ~man, Vice ?=eel

debt, For da Paver Ec Ii@t Ccuayaay, P. 0, Box 3100, ~4

PLo~ 33101.

Respeccfully muham.t"ed,

PTORXDA PO~ 6'IGHT C~~ANY

ByVive ~s~~c

— C43—

12

STAT- OP PLORIZA )) Ss.

ComrY OP mm )

&CRQE KZZ~~J4Y, belay fi~t chxly sMoxn, deposes and says:k

That he is a Vice ~sident of FLORIDA PQQZR 6 LION C~AHYy

the Applicant hezein; that he has ~ the fozegoiag appl'catmn

and huws the conrents Mneof; thar. the same is me of his own

kaavledSe, ~pt~ as to the matters ~~ch ave thezein stated on

infonmanion oa belief and as to those matters he believes it to

be ~Thfs day of 1966.

Subs~&ed and swann to befote me

1966.

Hotly MJ c ln and fo ~ Co~tyof Dais, State of rio~da

Ay Commission axpK~s

— C44-

bct R.R.»itc; Llew 5. S~pt Walter 5. Cosdon; W.W. Wolfft H LC&cZcsa;R R. Bzo«a; F DcsrmLa

FIBIDAPOlvER COAPOlts.&OÃ1%0llt04 CCWCR sCLL&40

~ ST PET~BCttG I, FTOlttD*Dec~her 7, L955 PL-3@

'\

P~ ~ Bsher, PrvsideatSeatiaole ~leo~~a Cooperative, Lac

oa, slozida

Qcae Ql ~4seo

Ra~ezcac ls znsd» to our dlscussloa haze caLfovetaher 9th, coacezaia tho possibil "7 of coas ~oa by~ ol u 4S.CQ" '~r . actor'ca" M~ >Lof e~ La - ~ ~th yoc roy@est, e have csade *rathot detailed sa+aceziag tta"'y of the practicability sad cost o{our «haella, »ae~ gcaezatsd by such $ pisut, »ur chazSe fezstaadby caps=', sad m value to us of excess sad/ or o~~™osh

pow»r ~~ such aa Lastallstioa

.results of oar study Ladlcstc that such $eject ~UC =" "—M i- ""o~c beaoflt:o Rc< er '~e coo~emtive or m~ co~say. 17LLLo i. sppe"a c" t:.czo «ouLa bo aoserious. p. obha l=voLvoa La tho -a~co of c"- «hecLLa" ~4

t ~, e do to ~id ".Lace oa the coutpsny (he full zcspon~ibLLLvof supplyiag ~ coopers'.m's aaeds st siL ~es Coasequ~y,oae of ~ pHa~psl . asons .'or our coaclu-Loa ze~S.the Lsc'-of ecoaoMc beae.~~ is thc!~illyof ~~ t-actor pL-"t tb prove~ po«or. bscaxso of f=ogucat thus&~ for ztc~~Muq p~ososas «eiL Oa 4 J»z&c=& g~osese icls Ae~ ~ ex=esslvo costof pzovidla cad natat"Lmg duplicate Sea»rat'.u9 he!Ms. vye szeaow caper!coo~~ ~aity ia keep!ay ou= picots lsd"a ta c 'alt~output duzia~ oiipcs'ou=s Because ot'his f-":. chc pa=cue

of'Qpoahpower «ouid have to be st z=-ss so lo«m4 wy «ould be ofao ec~ beaciit to tho pzopooed pleat .

La ccaaoctiou with the «~eziuteataL sad develop~atcatal aspects of '"e pzoicc- «e . ales M th"se features szedes!sable sad a»cessazy La order to provide'po«cz fo- m f~osad Ltaprovomcats La W cleahc utilityfield!or lo6ds ss woLLas the Moa }Le«ever, iQ bcltove chas the reactor pzoSzm of "eUalvezslty of '-Lozid-, «Lth Lts pote& bw~S of fsdczeL aC statefaads sad ~~~ iatcrosts, co~a sd by a s~~ of ~ably t~dpzofossioasL ~ezts la cutie zcccazch. will provide cho best acsascf sccorqilchiaq this for our st"=o.

Ve Wh to assure you ~4 «o sppreclst$ 7ou= visissad tha oppo~ afforded of offer!a Wse couuueats.

«fctbh

Slacerely yours,/(

V. Z. C'oop, ore»ideas

— C4S-

via J4' "3 ~:; ~::.'!'= l C:-'"4!ill)1.TU:.'"

t)l a fora 1 «ioi hh+» f'o 'g«q a jrL«a+4a»v v Z» C On II' ak 4 4 On

PL "324

C L a 1 ~ J«JOaS

O.. oo ia»o J Mas .1 f. ri«4 'ta o J -t 5"-4 Cc" ercnce.

'=c """ Sys e.-.s which .e active in the "to.='c powerga;='." ""'as "t ~ !';"v c" 'erence ia '.QSM".".tcn SDcnscreQ bJ the

' hho«a ~ l,o ~ l a hfa J o «o rsa«JL~ ~ ~ »«»vv ~ at o ~ l a»o»44o 'v vn ~

-:"-- cc-". '" ace w'" ctten4ec by ne"«ly 100 pervons, representirg ru"al "Qw'rA .. l Lh ' -"i >f. 111o' Ja S «, v ., «a, »o v ~«»o ~ »o ~aco JZa»~ Jta CVL ~ D»» vao C» vsse Cv«ovo) ) 1'

~ i ~ J 5 /ol fl««ital@ h \ hQ 1 J w ta J pe f 4 «~ toh lt 'i »to C+ L }ato ~+r} Bve'0 he 1Q ~~o ~

~ i fo

C . »:- -' 4 VO ' ~ - Wvt + ' "B3 BZ GSS Qf COS vS rOC C nVQnv1on»»«»a vol O

),h l ffoafa1 f1/ o1 hi»+»»a h !1Jh«h«JLi o» 5 ao 9 f r 'the'. gtol1v'4» aav»as ~ sta~av f1 o ~ ., ' «o ~ v o»«v Cvvvvaa «it« f4 p kLJQ ao»PtJQof ) l4 c~4»opc Q«V.O"»t~ "e! 5 Dl "rs Fo ~a e zori,ol.ltvcl re ctc» jzl 4E» ~+ t< cLaa LLc

scl"t'"" cf he" ~ w"ter. The K.chig f1 co""erct've f"vc"sJ 1 3 Oa 1 L ~ ~

c 1're<!»"25 Brj in '""m~xn~ r»lac»"Quits Tl1= ccml"-asv lo ta V o» S S i V 0''4 h'44 hta««1 J«J aor J r.(JR JJ rl 1J «o%»"

~ ~ »«vv C va,l ', ',, r»o» ' o 4«'» v tt «ao v» vs»»»vao(a Vov ~»

Jesuit!

j ~4-"Q ~r»hl C -" 'e Fowl As 5Gci" icn cf "ic R~ verp }'"i'1nesct*p Kspires to Bzl

" tCt." "" +Q 5 1 9 VS V )'C'al W l ia jus 4 Gnc )1 yC~ fOr 1"~ltCMZsce MP VQ' 'vcc cz s4 vo 'hw. '» Zo 'vio ve p ~1~0 q t cltor 5&6 success of.

~ tcl, hr. cc t «ao -'0 4 1 l 5, hl, e»to ac Qn vQ ha eaCQ»r lo 1C, G}1' Dr )) "» COSts»« ~ c..-'-

p 4 13.5 coopl. ''e ece vea R'~ *Q~ vo J~~1ce tho ccsc'r4 .43.csl«toaa j J J h»l«J«oa J f'off 'a«o h

~ ) 1 ~'" .».se l . Ti ~'g ~P>~ Svr-to )L!1C e g'telseno K ?Qs sv"".'.e, cc="=.:..c> Lhe B»Qun cn t}» ~<-tcrest Shown) cc~"anti g t}1"-t 80 percent ofJ oar ~ ~ l r ra f1 of faL a ra I ~i, 1 ~ th»h»«to c

oa')'»»~ t «at' 4 4 a o 4«»«» vi» fav e p» a Sion}f ~

Qet~'g) 4)on"tor G1'™tQn P ~ Sic'erson ( lew I~BY~co) -"nd -% - Qo) J ~

'tlo 4 ---'~ Cto-'B (i,ewa«crc!') whned cg" I..st over cDt~sP'caceral~ j cto«hc~ J«h J l «h«»1 l . 1«l >» fora ll rfvvtlvo vva1v») ~ a~4 C»'ooo ) LC» S wo»» Sgsvvnsa

-»ictec t.,-t »rt will~ " long t'-,e before a Q='c ener)",j'~ 1 1 L ~ l Lsl"" ."":.5 "c" '."t«c.».".1 fuels, a3t'.".Gu"-5 1V t,".ay supple™~eau it f'-*arly soon>"

.-."-'= "--".".-'-.".'-='-" Ccl Dcia e" oat th" 4 goverrr:; st-femcee ru"al syste,s } vcfc pc Jv ic1 p"t ion in cLtv eric encrg c'.eve lo"ment unde t}le at QP

''j''5

p- l'ge e tor ct Foz +~lvolrp V~ gi L"p to vr.

~a ~ ~ ll — -'-»- ~ c 1faJ~ J 'h. cl f Co«i ol 05 C -» .— 5,, ~vv~ la v DQ s . C Cdv j j .Jj Co- n4- Di Go 4~a~ ~

»«i1 J o ) haaL h> L laol «'I hfara 1«1 «7 C. t ~ 4 far 1 h ii rlhJ fa'a h Phha1h«ta 'l h~41» '» ) v 4 )»»Vt av O'asv 4«aoao»ioo»ssg Vt'4 ' C gJ Q 4 4 aoC C» Ca C 'v t a»)

taa ~ r « .h I «,q«J» .ra L to ~,J 1 tlh rac cL taf1 )vo oaht mfa ta»A J'ia 'l«fa» cr ~ t ol tlh t la 41 1 J' « ~ ~ vs» a o'o vlt» va' v ««»A VL v 4~4 sp 4vaaaato 'Jos« 'vaa ~ovsaaoao«vso L 4~v l»4) ~ ~ L J L J ~~»» «»SS '»' jr 2 ao go aoaoaD

p vhe» rs v»» %co j«»L tvcrroWCrto vo ge v» S 44lta1ap

J 4 s "4) vo Sl»atilt Va D GDCS" iof1 vtle SBCGaQ Gu':1 QCCto p Cf~ . Tk'-. '.."..". 54»» t "" e a=nv hans beon ch"'.+'=~ vo ". c B$ $ >Br%it w:1 t:se < cuDSV al l Sa»oa»» V ao» v aa g ta ct ~)

)1 L< ~ .lW)l O t},Q1 problem;;p - Q fC QtheZ'::1 5) Ste~s Without Lnsvn) ~ 'l

1 a .a J oiwa 1 O 1 Col 1 «to l ~ 1 ha ~ tal r«ta l 1 »1 Jta rl» faaaa ~ ',»toA»a I raao r f ir'l t tl ~ f 1Q ' l '' ),) «C w « . ~ oa4aoa 4' 4»» vC i»cvao4aa 'v» v»a 44 taa Cori tfJ~

;..-.'- c "„:=':.'=-, c=o= ="-.'v'c .a -cp»l'lab; -'.p.a.::ac .to aoc.". a hac z c 'coaaucioah ) «J J 1 h o L 1 ~ L»to 1 » JQ Cifl Jyr J 1 rot

~ v ~ ~ ~ 't» t ~ «a '~ v«ao 4'vava ~ any

AalfaaaLof i, q» ih h«hf «al lh J» h 1Lthl h»~ ' >i ~ ' ~ o

4'l 5 l o ~ aao» a 4 ) apr ~ p Pleitl vg (a»o vv loca» ol ~ » vvo»a» f Jaovv

1-'"" =-" =."-='-"-'- .=—-"-=" -"-.c ."."" Qnc""4', ""Qscrv"1" vs "norr "1 cconom.c alcena»Oa ~ . ~ ~

~ fo 4 ~

- C46-

Schdtde I3DEhQiND QN GENERATINQ PLA?~, POWER RECH%X4 AND POWER DEUVERI30, FOR REShLF„hi

THE TIME OF SYS7&vl PEhK LOhD OF THE YEIIIR

1. This schedule and schedules 14 and 15 are intended to show the load characteristics af the respondent's system in a formthat avoids duplication with similar data for other systems. For this purpose the respondent's Hsystem losel" for any 60-minutedock-hour interval is defined as being equal to the aggregate of the energy supplied during that interval:

(a) To ultimate consumers of the respondent;b) To the systems listid in schedule 8 Part A i. e.. to class III and class V systems;

c) To other departments of the respondent; and, for transmission and distributian losses and energy unaccounted

for on the respondent's system: and, for the respondent's electric utility operations (exclusive ot plant use).

Note that the system load as here defined does nat indude tho demands of other dass I and dass ll systems whose power

requirements during the year were not wholly supplied by the respondent's system. i. e„which obtained a part of their require-

ments from their own generating facilities or fram sources athei'han the respondent's system. Oeliveries to such systemsl listediI in HO" below, must be exduded in order to avoid duplication.

2. Class I and dass II systems should furnish the information requested below for the 8Lminute dock-hour interval during

which the system peak toad af the year occurred.3. All of the demand data called for in this schedule should show integrated kilowatt demands for the 60-minute dock-hour

interval durina which the system peak load of the year accurred. Where integrated demands for 60 minute dock-hour intervaIH

I are nat available, it is desired that available data be adjusted to approximate the integrated demand for 60-minute dock-hour

intervals. Adjustments made should be explained in footnotes. Where such adjustments cannat4e made, demand data should

be furnished in the form available.4. Estimated quantitiea (noted MEst.") should be furnished where measured data are not available.

HNHMNHVHlMHHHHi Intearste4 Oeinena

KlloIIatts (as uni~ ar I

ii Dace acxI beats of system peda taad of yeas R~i 3,p~ 3,59} Q-o ~ .,I tyctNII peaxl

Zashern D~~hh TimeI II I

j A. Combined net demand on system generating plants (fram cal. 11, line 36. schedule 1) . i jl 000~ . I

Hlt

I

S. Itemiaed accounting af powet'eceived fram other systems and industrial companies, except Mbordor- II

lineH receipts entered on line 40, schedule 8 part A. I

Name of ocher system

Tampa EXeehric Co., Ruskin, ~~.Jachsoavt3Ze ZLechric Auhh3ritp, (Horglandp Subahation)or1sndo QtiLNies CanmLssion, De1espine, H.oricja

III

Ig

III 2

I 3'I

4=II 5I

sII'.I iI 9

II 10

II11*I

2(Asooo~sooojl,ooo

IIIIIIIII z6g,oooTotal of lines 2 to 10. Indusive.

III

~ I 12-~HHN

I

g,u6,0cOC. Demand on generating plants plus power received (line 1 plus line 11)

P 8~8 '" XYA3RIDA POHER 4 LICE CCRPAHY far the Year Ended Occcmbcr 31, 1970

MHMMMMHHHHHlHHMHMMMlHHHMHHHHHM

O. Itemized accounting af power delivered to other systems for resale, except to those listed in

8 part AName of ocbcc sysccctt

PXoricja Power Carp., Eesr Cocoa, FLoriikaMarina Penfer Carp., Lahe Monroe, KoridaJachacuvdZ3.e ZLechric A1xtharity, (RoMnweod, SubrhaMon)

Total of lines 13 to 21. Inclusive

II

schedule IIIII

IIIIIIIIII

III

I

6a,OOO16, COO

~s000

".. 135,coo

III

'gI

II

= I l33I 14=iII '15=.

I 16=-I

II ly=II taiII19%

I 21

I

I 22

I

II 23I

$ , 001s 000.~l ~lHHllll HMHH lNlNlM

IIIIII

~NNNlNlHl

~NHl\lHlNllNMHMlNlHNMlMllllllH ~

— C47-~MNNllN\NINHNN

I

E. System peak load of the year (C minus 0); This entry should agree with the peak toad of the yearas shown in schedule 14. using the same demand interval I

(24) Rev. (12-65)

P Sy ~ S ~ar ~"~~ ~%A < M~ KMPMK for cbc Year Eadtd Dccttabcr 31, 1971

Sett 13DBI(IIINDON GENEiIATING PLANTS. POWER RZCHVED. AND POWER DEUVEUZ), FOR RESALE, AT

THE TZI(E QF SY~ PEAX LOAD QF THE YEAR1. This schedule and schedules 14 and 15 are intended to shaw the load characteristics of the respondent's system in a farm

that avoids duplication with similar data for other systems. For this purpose the respandent's "system load" far any 60-minutedock'hour interval is defined as being equal to the aggregate of the energy supplied during that interval:

(a) To ultimata consumers of the respondent;(b) To the systems listed in schedule 8 Part A i. e., to dass III and dass V systeins;(c) To other dapartinents of the respondent; and, for transmission and distribution losses and energy unaccounted

for on the respondent's system; and, for the respondent's electric utilityoperations (exclusive ot plant use).

Note that the systecn load as leere defined does not indude the demands of other daaa I ancl dass II systems whose powerrequiretnents during the year were not wholly supplied by the respondent's system, i. e., which obtained a part of their require-ments fram their own generating facilities or from sources other than the respondent's system. Oeliveries to such systecns, listedin "O" below, must be exdudect in order ta avoid duplication.

2. Class I and class I I systems should furnish the information requested below for the 60-minute dock-hour interval cluringwhich the system peak load of the year occurred.

3. All of the demand data called. for in this schecfule should shaw integrated kilowatt demands for the 60-minute dock hourinterval during wbIc!I the systein Peak load of the year occurred. Where integrated demands for 60 minute dock-hour intervaleare not available, it is desired that available data be adjusted to approximate the integrated demand for QLeinute dock-hourintervals. Adjustments made should be explained in footnotes..Where such adjustmenta cannot be made, demand data shouldbe furnished in the form available.

4. Estimated quantities (noted "Est.") should be furnished where measured data are not available.

Intesrate4 Qeiccaneittfewatts (et uine et Itytteet peak)

~I

t3eeiae4,etwv+OQ i ni

5-6 PMAugust 25, 1971

Oaylight Time=: Dare aatI bcxtr of syttcat pcsit

Eastern%&AD%%&%&&& 'Wti

: A. Combined net demand on

&&&W&W&AWW&A%WWW~WQ~QI

5,226,000I

system generating plants (from col. 11, line M, schedule 1)~ttOOM OOOOMO

; S. Itamiaed accounting of power received from other systems and industrial campaniea, except "border- I

line" receipts entored an line 40, schedule 8 part A.., Name af ocher system

IIIIII

I. 2

3I~ 4II 5III yII

I

I

IIIOII

IttI

IIIII

I~lTotal of lines 2 ta 10, induaive 297,000

II

',52'3,000- C. Oemand on generating plants plus power received (line 1 plus line 11)

Tampa Electric Co., Ruskin, Florida 245,000Jacksonville Electric Authority, (Normandy Substation) 51,000Florida Power Corp., Near Cocoa, Florida 1,000

I

~ II

ii O. Itemized accounting of power delivered to other systems for resale, except to those listed in schedule I

8 part AName af other systatts

Florida Power Corp., Near Cocoa, FloridaFlorida Powei Corp., Lake Monroe, Florida .

Jacksonvil le Electric Authority, (Robinwood Substation)i Orlando Utilities Commission, Oelespine, Floriclai

II

i II'5 ~ I

I

II

Total of lines 13 to 21, inclusive'I I

Iystem peak load of the year (C minus 0). This entry should agree with the peak load of the year I

as shown in schedule 14, using the same demand interval II

Mt3086g—- C48-

17 000 I 13

20,000104,OOO

II,OOOItyI

I iaII39

1II5, 000

5,378,000

e>cr ystxm «tsscccnt of «% ««« ~ «««or csz Ec Occcmbcr 31t 19+

t Scitcdutc 13DE3(AND QN GENEqh~G PLh?ITS, POWER RECIBVH), AND?OWER DEUVE:.UZ), FOR RESALE, AT

THE TIME QF SY~c. PEAK LOAD QF THE YEAR1. This schedule and schedules 14 and 15 are intended to show the load characteristics of the respondent's system in a form

that avoids duplication with similar data for other systemst For this purpose the respondent's Msystem lead" for any 60-minutedock-hour interval is defined as being equal to the aggregate of.the energy supplied during that interval:

(a) To ultimate consumers ot'he respondent:(b) To the systems listed in schedule 8 Part i i. e., to class III and class V systems;(c) To other departments of the respondent: and. for transmission and distribution losses and energy unaccounted

for on the respondent's system; and, for the respondent's electric utilityoperations (exclusive ot plant use).

Note that the system load as here defined does not include the demands of other class I and class II systems whose powerrequirements during the year were not wholly supplied by the respondent's system, i. e., which obtained a part of their require-ments from their own generating facilities or fram sources other than the respondent'a system. Oeliveries to such systemst listedin NOM belcw, muat be exCluded in Order tO aVOid dupliCatien.

2. Class I and class II systems should furnish the information requested below for the 60-minute clock-hour interval duringwhich the system peak load of the year occurred.

3, >tll of the demand data called for in this schedule should show integrated kilowatt demands for the 60-minute dock-hourinterval during which the system peak load of the year occurred. Where integrated demands for 60-minute clock-hour intervalNare not available, it is desired that available data be adjusted to approximate the integrated demand for 60-minute clock-hourintervals. idjustments made should be explained in footnotes. Where such adjustmenta cannot be made, demand data shouldbe furnished in the form available.

4. Estimated quantities (noted NEst.N) should be furnished where measured data are not available.

~tNtNMtNMMttttNNNtMttttM ~ttNtMtlNt~ NNtNtNMttMMtttNttltrNtNI In t ear a to 4 Oem an tt—>

Dace aad hour of Iysccm peak load of year YJul" 27 1972 5-6 pH

Eastern Oayl ight Time > Oo>nano inteIvtr60«NMMNNN\NNNNN\tt\NMI NNNNNNNNNNN

i. Combined net demand on system generating plants (from col. 11, line 36. schedule 1) > 5I879I000~ NMM

II I

S. Itemized accounting of power received from other systems and industrial companiea, except Nbordet- I

line" receipts entered on line 40, schedule 8 part i. II I

Name of ocher syscccs I ~ I

Tampa Electric Cot I Ruskin, Florida 239I000 . ,'z

Jacksonville Electric Authority, (Normandy Substation)Jacksonville Electr ic Authority, (Nassau Substation) Il,oooC i ty of Vero 8each, Vero 8each, Florida 15,000

II I 7I 'III

II

I II I 9I III >10NN

I> ~Total of l>nes 2 to 10, Inclusive 310 000 > tl

C. Oemand on generating plants plus power received (line I plus line 11)~MMtN ~ttt

O. Itemized 'accounting of power d elivered to other systems for resale, except to those listed in8 part i

Name of ocher sysccos

Florida Power Corp., Near Cocoa, FloridaFlorida Power Corp., Lake Honroe, FloridaOrlando Utilities Ccmmission, Delespine, FloridaJacksonville Electric Authority, (Robinwood Substation)

Total of lines 13 to 21, Inclusive

schedule 1

III

IIIII

II

, IIII

I

6, 189,000

. 12,00013,00094 I 00059,000

178,000

>13

I taI

11S

>t6'7116I

I>1S> NO

I> 21

II

E. em peak load of the year (C minus 0). This entry should agree with the peak load of the yearas shown in schedule 14, using the same demand interval

I

6~011,000

N>tttt>>ttMt>ttMtttttttttttttttNNttNttt N>Nt ttttttttttt ~ C49(24) Rev. (12%5)

4A Cgi7 ( g~+r Q4+ 5f' S 1+Aoc) y Ayyr O

cps a'0 a l ~ ~ y t A ~As4 «a Q wey.

ar at s ~ ~ I~g p t ~c 'Pth +~ C~~

cotr cQ r o to agee g co~i'gi o»

or )LB cL ~~+~(ct» ec ~~op ar arrwewa rs gath the

Zi <tate t - hasks for vog co~tar~~ og < per i ~p»~ ~~ cg

aLL2'ach ac-," fa''u=e ro ac= arC dcrae - vh'ch scocorv you-

cohte~C cr L~C the'LLd~g, ~e arC ~tLe of t"- "ersonf>re ~ ~ ~'0 " - r~-es co '"~-oc"~. o~ o "e " s= ~

vr'~=- or o~', Z yenc" o= hv t~'eyhore), aced, '~ oraL,

of aLL yersocs yr se"- at, the ~~e the req-es- Mas ~de;da~ of t"~ r"mess; yeaoa to Mhoa the r w~'est vas aC@essed;

LKe of ye"540 @ho resyocdeC to t"e regestr. foR d

esyocse (» e r W~~~~ or oraLt A yczsdL o» 5$ rsLcyh&e)

and, if oraL, a L'st of aLL ye"sots y" seat at t"e me ""='I

resyocse Mas gee"; ycrson co ~hem the resyocse was ad"- sse4;

arC Cat" of the resyotse.,

~~

— C137—

Answer to Inte ocatorv1'L'.

C't'es contend that FPaZ has acted anticompet'tively in the

development of interconnections with Cities by (a) refusing,resist'ng or delaying interconnection; (b) pxedicating inte™on-nec ions on the conclusion of territorial agreements; (c)

recpriring that C'ties bear all or essentially all costs forinterconnec ions even though FP&L benefits from them as well and

(d) refusing, resisting, and/or delaying full use of interchange

schedules. (See also Cities'esponse to interrogatory 15.)

Xn addition, pursuant to its division of territory with

Florida Power Corporation, FPaL has refused to interconnect with

systems in FLorida Power Corp.'s retail service territoryg and is

chargeable as a co-conspirator with Florida Power Corp.'s refu-sals of, or resistance to and delays of, interconnec ion pursuant

to this conspi acy.

Xn generaL, Cities note that while FPaL has Long been inter-connected with the other largest utilities in FLor'da, it did not

»

seek similar interconnections with smaller sys ems, including

Cities. As Hr. Bobert Fite testified at 8 of his September 25,

1972 Gainesville deposi ion, '... we'e never, during my ~

experience with the Company, sought, a lot of interconnections.

We have never actually tried to develop these interconnections

because we have a policy of not serving Cities wholesale. That

existed for a long time.'s Mr. Fite further testified at LS,

some „'interconnec ions came about because we sought to purchase

or to lease municipal distributionsystems.'ities

contend that FPaL has acted anticompetitiveLy in thelt

development of interconnec ion with Cities" with whom it ultima-

rely did interconnect by:

(a) long refusing or resisting the development of intercon»

nections 'ncluding responding to requests for emergency intertieswith takeover proposals;

(b) predicating interconnection on the conclusion of ter i-torial agreements;

(c) requiring that Cities bea" costs for interconnec ions

even though "-PaL benef'ts f=om them as well;

— C138—

11-2

(d) ref sing to agree to firm power and ~ansmission com-

miMents requested in connection with interconnect'ons and

inte change agreemenm.

(e) refusing, delaying or res'sting the provision of serviceunde Schedules C, D and E of interchange agreements-

(~) a~us'ng to frle ~ansmission tariffs, inc'udmg refusalo provide for transmission schedules in interchange agreements

(see response to inte~atozy 14).

Evidence of FP&L's behavior inc'des the foUowing':

1. FP&L's Requirement that Cities bear costs of ~8 terCon-

nection. See, generally August 1D8a!.973 E.L. Bivans Memorandum

to file z'e: P«oposed Znterconnection: City of Hcmestead ("I was

pointed out by the writer that the proposed interconnection would

not be mutually advantageous. The benefits would accrue prica

marily to Homestead The benefits to FPL would be minimal9 since

Homestead would have little or no reserve capacity. Therefore,as with the in erconnec ions that Vero Beach, Pt. Pierce, and

Lake Worth have or will have with FPL8 Homestead will be "expected

to bea the entire cost of the 138 Rv switching station at the

point-of interconnection in the Florida City —Davis 138 Zv

line, and thei connecting 138 Kv tie lin'e." As evidence of FP&L

benefits, see, e.c., (a) pages 424-424-A of PP&L Form 1 Repozts

to PPC; (b) testmony of E.L. Bivans in Florida power & Lichtccaaacv, ccctat Nc. 8878-89 at al. (9taaa 7(, at 888i (c( tact(mony of Robert E. Bathen in Plorida Power & Light Company,

Docket otto. ER78-19 et al. at 671 (d) current experience under the

power broker program.

2. On FP&L's insistence on a terz'itorial agreement as a

predicate to an interchange see< generallya

(a) March 22, 1968 memorandum titled "Major Provisionswhich should be incorporated in an interchange powe agreemen"

by "CSC'Charles Coomes) (PL-402)" (12) Ag cement as to the

territorial boundaries o the respective utilities" and deposi-tions o Fite, Coomes and Hill in Cainesville case.

3. While FP&L's agzeements with Cities generally included a

schedule D for firm interchange power, FP&L has tes ified'hatprior to 1978 FP&L had neither sold Schedule D nor ever can-

— C139—

11-3

sidered the appzoo iate —..ice for such a sale. Flor'da Power a

Licht Ccrioanv, iiRC Docket No. ER78-19 et al. (Phase I), ~. 672

- ( see g however, evidence that FPRL d'd, 'a ac, contemplate orengage in Schedule D type (firm powe ) tzansac fons with other,larger systems) . See zasponse to interrogatory 15. Similarlyuntil recently did not engage in Schedule C economy exchanges on

a significan basis, if at all, with Cities.Attar it entered into economy exchange transactions with some

of Cities, it refused to do so with New Smyrna Beach (see below)

and impeded "brokerage" by insis ing on t"ansmission cont"actswhich include unreasonable ates, terms and conditions (as statedin response to inter ogatory 14) as a precondition to paz-

ticipa tion.4. FPaL has refused to enter into various capacity

exchanges. For example, as is documented in the .ecord ofFlorida Power a Licht Company, Docket No. ER78-L9 et al. (Phase

I) (and referenced urther in response to interrogatory 9)

Pierce sought to sell its excess capacity to FPaL, but FPaL

refused to reasonably consider this offer .—even while allegingcapacity shortages. Fu"ther, by refusing to enter into an

integrated power pool (see response to inter ogatory 15) FPaL .

furler f ustrates such exchanges.

5. On information and belief', where FPaL has provided emez-

gency ties, it has unreasonably util'ed temporary emergency tiesand removed such ties after emergencies thereby delayingrene~ed emergency service and adding to costs of such sezvice.

6. Evidence relating to particular Cities includes the

foliowing:F't Pierce ~ Xn genezal, PaL's zesistance to intercon-

nection with Ft. Pierce is evidenced by the delay between initialdiscussions of interconnection and the completion of an

interchange agreement.

Regarding Ft. Pierce's 1960-61 interest in interconnectionsee

(a) December 14, 1960 memorandum f om R. D. Rill to File ("Iadvised Hz. Padgett (Nayor] and othe s of ouz present policiesbu that I would discuss it (interconnection] further with others

— Cl40—

11 4

'n the event Sere were mutuaL. henefim..." (PL 375)

(b) March 13, 1961 R.D. H'lL/R.H. Fire memorandum re: phone

conversation by Mayor Padgett (PL-373) "."z. Padqet" also b ough

up the ques-'on of when we would be visitinq him agafn to discussinte connection whfch he felt wouLd be of mutual benefit. E toldhim 2 would let hfm know about thfs matter in the near future."

Zn 1965 Ft. Pierce requested an emergency intertie whfch FPaL

(as welL as resisting a tie that would permit operation inparaLLel) responded to wi 5 a takeover proposal. See

(a) 't. Pierce Resolution 65-89 (March 22@ 1965))(

(b) undated newspaper articles (one bea ing file date of May

1966, PL 34 35) stating that FPsL responded wi 4 letter statinqthat tie line would not benefit FPaL and proposing Lease or sale

fnsteady

(c) April 2< 1965 R D H'll/M . R.C. Fullerton memorandum

(PL 29) (re~ meeting with Ft. Pierce regarding March 22, 1965

Resolution: ('2 was asked if FPaL would be willfng to furnish a

connectfon capabLe of handLing 10,000 Kw for a period to 1967.

told them there were considerable ramifications, both fn engi-neerfng and the availability; that we did not desire synchro-

nfsfng into thei 'system, that we were in process of changing

voltages 'n ou transmission system; and that it would be

desf cable, before I could finally answer this question, that a

reasonable amount of time be given for study."

(d) May 5, 1965 letter f=om R.D. Hill to City Commissioners/

City of Ft. Pierce re: our recent discussion in connec fon withyour power problems and the manne" in which these problems mightbe solved." FPaL recommends lease or sale (PL 33)

(e) May 12, 1965 letter from City Manager Harding to R.D.

Hill (PL 36) ("This office fs looking forward to conferring withyou in the very immediate future about the possfbflfty of stand-

by, emergency, stand-by or wholesaling of electricfty. As we

indicated to you prevfously,'ime fs very fmportant to the C'tyfn this matter, and fn my opinion the City cannot run the riskinherent fn any delay fn the consideration of this subject."

(g) June 2, 1965" letter from Harding to Hill (PL 41) re:Hill's May 25, 1965 Letter states that foflowfnq discussions of

— C141—

11-5

he letter at June 1, 1963 Commission meeting the C~wsionvoted ta discontinue negotiations far the Line vi«th FPaL and ta

inv'te lease proposal.

(h) May 24, 1965 Street/Spencer Memorandum (PL 38) m: prise

nary service ta F . Piercee nates that FPSL's estimates have not

provided for parallel operation. See also Peb 159 St h 15 and

June 1, 1965 City Commission minutes.

In L967-68 Pt. Pierce again discussed an emergency tie with

PPrL. FPaL made clear that a ter itar'al agreement.was a precan-

dicion to furler action. See

(a) December 13, 1967 Letter fram R.D. RJJ.L ta C'tyCommission (PI 49) m: nee~6g in Pt. Pierce ("We discussed a

ter itorial agreement, vhich we feel can be readily done .... I)mov you vill agree that this territoriaL agreement must be

concLuded before either the City oc our company can properlymeasure the problem and determine which further action would be

in its best interest... Pending the development of a ter=itorialagreement, and furler decisions, we vill be in a position to make

an emexgincy tie with yaur system. Pearing takeover, Ft. Pierce

also wanted the ter 'riaL agreement. See Decembe" 20, 1967

letter f=an E.D. @skins «ta KLLL (Pt 50) stating "it is our very

definite feeling that subject ter itorial agreement should be one

cancu ent, documents instead of having mare than one agreement."

(n) JsncccJ 1!I, 1968 Ft 9fsccs T.(tens sctfcfs (29 91) "e:

City Commission meeting (Hi'1 told Commission that ter itorialf

agreement would be a'irst step ta Liney Nayor Milton Tucker said

he understood City and Company had a "gentlemen's agreement" g

ELLL said I wanf t be here forever. I'e worked in this area for

years. But the next man nay not knov what this agreement entailsand I think the ter 'tories should be worked out, at least in

outline, on paper"

(c) Eebruary 25, 1969 C.S. Coames memorandum «ta R.D. Billres te. 'torial and interchange agreement City of Pt. Pierce (PL

54) ("The City has asked us for separate territor'al and

interchange agreenents. we have no ch)ection6 providing "Ne

territorial agreement is executed first.",Regarding PPal.'s recuirement that Et'ierce bear the casts

of Lntercannect'on see Octaber 20, 1970 Pt. Pierce News Tribunear icle (PL 59) FPL Won't Share Cost Of Permanent Tie.

Lake Woz"b. Lake Worth discussed Ln etcannection with FPaL

Ln 1968 and 1970-72. On both occasions FPaL insis ed that a

territorial agreement be signed as a predicate, and as noted Ln

response to "14," refused Lake Worth's zequest for a wheelingprovision Ln the interchange agreement. Evidence of thisincludes o

(a)- April 22< 1968 let er f=cm Rober Johnson, Mayor to LD.HL11 ze: Lake Worth power autage; (PL 791) requests meeting an

emergency tie noting that "Z feel that the C'ty Government o

Lake Worth has too long gambled with the lives and proper y ofits citisens by failure to have an emergency electrical intzacon-nection (sic) with your. Company';

(b) September 6, 1968 letter rom Eleanor J. Louis (Lake

Worth City CLerk) to PPaL requesting proposaL for Lnterchange aspvopo~d 4+ Scp~~ p~ I Q> Ct+9 Cb~~~~~a~ ~~n

(G ~C4'0~ 2~, l~&S ~IYl0VdedMrn fY'0yn C.S ~ 'EDQPF 5 K+ %P+g. D. Hill ViC< PrCSid~4- VV'e. ICrri+ar)C.I femrVenk~ Qn~QC+-.'i~mcrg e

( «y 4'.~ic wov& (t')-as+) ("isye~4ed ~ ha.m pvc,meed a. ~ posedp

i>can A leer an+ a.nd,n+v a.cp ~1 e

Znterchange Service vith the City of Lake War~A. This ag cement

is identical with that previously submitted to the City of Vera

Beach except that Ln each case 'Lake Worth'as been substitutedfor 'Vero Beach.'"

(d) draft "Ter itorial Agreement and Contract forZnterchange Service Between FPaL and City of Lake Worth, Pla."dated October 22, 1968 (PL 785)

(e) November 14, 1971 letter from John B. Waddell, attorney(Lake Worth Utilities Authority) ta U.S. Department of Justice,re Hutchinsan Zsland Unit Na. 2.

1. "We have not indicated any interest ta the appli-cant on participation Ln the abave nuclear unit, but wehave been in negotiation for an interconnection.'ApplLcant has expressed an interest and willingness toenter into an agzeement, however, the applicant hasinsisted that a terri or'al agreement bc made a part ofthe agreement.

Znitial contact vas made in June of 1968 and nego-tiations vere carried an until Pebruary of 1969, atwhich time Lake Worth decided upon additional generatingcapability in lieu of an interconnection at that time ~

-.11-7

In October) 1970, discussions were reopened onintercannectian between the two systems and have beenprogressing since that date, however an agreement hasnot been reached. At the present time we aze an iso-lated system as is shown on the enclosed oraposed tez i-tory boundary map o

In all discussions to date, the applicant has indi-cated that all casts of the interconnection are ta bepaid by ou svstem. It is our opinion that a benefitwill be derived by the applicant from the interconnec-

ian and that applicant should cansider paying a partinof the cast of interconnectian. At the present time ourgenerating capabilLties are approximately 150% of peakdemand and, with this.reserve, we feel that we havesamechfng ta cant ibute m the 'pool'n ~)es ofemergencies.'ccording

to CLL ord Blaisdell and Claude L'Engle) FPsL

~fnaliy agreed ta an intercannection on «ke precandition af a

territorial agreement and continued ta refuse t=ansmfssfan and

refused to pay part of the interconnection casts.Homestead. Zn regard to Homestead, Cities contend that (a)

FPaL delayed the development of a parallel fnterconnectfong (b)insisted on a territorial agreement and cansideratfon of FPaL

takeover as a predicate to Lntezconnection; (c) f.".sfsted. unzeas~ ~)ably that Homestead bea the full casts of interconnec fon; and

(d) as noted in response to inter ogatory 14) refused ta providefor transmission service fn connec fon with the interchange

) e

agreement.

According to Homestead representatives (Lncluding James

Bet'ry), Florida Power a Light delayed a parallel tie fo. years.Zn addition to being forced to pay for the entire interconnec-tion) ft was forced ta install additional generation «Rat it didnot want as a price az the interconnection. Zn the early1970's) Homestead's enginee s cansidered Lt essential that the

system obtain a " ansmission tie to FPaL. Zt was being served

thraugh three emergency" dist ibution ties. F?aL insisted on

negotiating through Zen Beasley, the locaL manager of :"PaL's

district office in Na an)a. Homestead's representatives wanted

to meet wf«h somebody wfth the authority to make decisions.Negotiatians were dzagged out. Finally, Mr. Autzey attended

negotiations sessLons, but M=. Beasley would respond toQuestions ~

FpeL zesisted a parallel t'e, contending that Homestead

wanted cPaL to carry its load. Because Homes ead was still being

~44-

served through D ee individuaL systems and operated from foursou"ces of power (Homestead's own generation and three FPSL ies)it was at a great disadvantage.

The system was orced «to buy five dieseL units having 10,300

kilowatts of capacity soLely because it did not have a

t ansmission tie.During the 1973 to 1975 period FPaL continued to insist that=

Homestead must be able to ca~ its own load. „Homestead finallyagreed to instaLL two additionaL 8.8 megawatt units (No. 18 and

19). This was a price for its obtaining a tie ~ During the

negotiations, Homestead made cleaz that it wanted to buy highload fac«tor power.

For evidence of the above see generally documents relating to1973-74 Homestead/FPaI. negotiations appearing as exhibitsFLorida Power a Dicht Ccmoan, PUBIC Docket No. Et78-L9 et al.(Phase L') ~

1. June 24~ 1963 document enti«tied ."Elec"-ical Dist ibutionSystem" on letterhead of Naurice H. Connell and Associates. (PX

'I

97) Notes of meeting amonq Connell finny FPSL and Homestead re:(a) territoriaL agreement and (b) emergency. tie ~ 'With respec to

H

the potentiaL ties fran the .Pat, company to the City of Homestead

dist ibution system, it was generally agreed that the require-ments for a permanent tie to the bus at the Homestead powe plantfor purchase of energy on a long range basis would not be can-

sidered at this time, aLthough this is «the most desirable type oftie connection."

2. July 28, L967 Memorandum to Hite by "7)HF" (Fite of FPaL)

(PD 93) ze: meeting with Homestead Commission on July 27, 1967.

Homestead wanted (a) territorial agzeemen (b) additionalemerqency connection and (c) "a future permanent connection withFPaL" for the puzchase of the service at wholesale for resale by

the C'ty." FPaL made it clear that we would like very much toconcLude a mutually agreeable territorial agreement, but also

, made it clear that this agreement must be concluded before under-

aking negotiations for an interchanqe or to wholesale." FPaL

'also pointed out chat our interchanqe agreement may be more

desireable to the City Dan a wholesale contzac . We emphas'd

- C145-

11-9

again that purchase of the Homestead facilities, or lease of them

should be considered also. At severaL points, it was repeated

that we must have a ter itorial agreement signed, sealed and

delivered, and approved by the PSC before going ahead with any ofthese

ar"angements.'.

October 3, 1967 letter, ~ Fite ta Pearson (PL 86)

You wtLL recall when we met last that the CouncU,, in additionto requesting proposals for an interconnection or a wholesale

power contract, ag eed (without tao much enthusiasm Z admit) taconsider a proposal at the same t~e ta purchase or lease poursystem. We have been working on such a proposal in addition

ta'he

arrangements covering interchange or wholesale cantract."4. June 28> 1968 C'ty Council minutes, at 4 ("Mr. Locke

said our Washington at orney advised the counsel ta go ahead withthe synchrani=ed .tie. Mr. Wittkop said at the last meeting the

suggestion was to negotiate'with Autrey and they were supposed ta

come down. Mr. Rhodes said it was his understanding that we

would go ahead with the peaking units and in the meantime'he

city wauld negotiate with- FPaL Co. for a synchron'"ed tie. M ~

Rhodes said the time schedule is important here. The time

schedule to make an interconnection with the necessary sub-

station, as required, is in the order of up to 2 to 3 years. The

timing required to secure base load additian in the power plantis about the same magnitude."

S. April 17, 1970 letter from J. Be~ to F.E. Autrev reElectric Power SuppLy Feasibilitv Study —(re information from

FPfL "or Smith 4 Gillespie report to Homstead)

6. April 22, 1970 memorandum am K.R. Beasley o F.E.

Autrey re P oposed Interchange City of Homestead (270725-26)

("Jim asked if we would be wiLLing to buy approximately 25,000 Kw

in the event Homestead should install a 44,000 Kw ta 61,000 Kw

unit. I have not checked inta this' assume the answer will be

no. Mr. Spencer telLs me that Jim will be able to canvince us

that the ci ies are doing us a big favor ta establish these

interchanges."

7 ~ 'A Report on a Study for Additional Elect ical Powe"

Supply, C'v of Homestead, Florida," June, 1970 Projec 7002-lg

— C146—

ll 10

by Janes J. Bc~8 Pcbruary 18, 1972 letter 'n J. Berry ta F.E. Autrey re

Proposed Znterconnection —City of Hancstead with FPtlL Co.

(270715) (Homestead would Lance to neet direc"'y with Autrey to

establish full intercannectian)

9. Smith a Qillcspie February 14, 1972 'Prelminary Draft

Homestead P.esentatian Monday, February 14, 1972" to 'M . Mayor p

and Gentlemen of the. Council; Mr. Pcarson, M . Peters, Ladies and

Gentlemen:"

"As we have pr'eviously stated, ane of the mostimportant factors in a successful development of an ade-

~ quate powe" supoly for the service area of the Ci y ofHomestead, Florida, is the optimum utilization afgenerating units naw insta).lcd and being installed inthe Power Plant of the City of Homestead, Florida,therebv permitting the deferment of addi ional capitalinvcstncnt far powc production,

."Circumstances have changed since aur lastdiscussion of the possibility. The PPaL Co. at thattine was not, by legal definition, a public utilityunder the terms of the Pedcral Power Act. Although Ihave not seen a publication af the action by thc SupremeCour", it is my understanding that the Supreme Cour hasnow ruled that the Florida Power and Light Company is apublic utility within the definition as set up under thcPower Act. Wi~& this thought in mind, it appears thatthe City of Homestead nay well be in a different posi-tion than they were only a few nonths ago."

9A,. Pcb 18, 1972 letter fran J.J Be~ to F.E. Aut cv .rc:

Proposed Znte connection —City of Homestead, PLorida with PPaL

Ca i (270715) .

10. Peb. 26, 1972 Be~ letter to Autrey (270717)

Ll. Pebruary 26, 1972 letter fram Janes J. Be~ to Henry C.

Peters re Interconnection, City of Homestead and Florida Power a

Light Company ('I don'elieve that there is any daubt thatt ithe Florida Power and Iight Company had thei way, they would

nat, under any circumstances interconnect with the City of

Homestead. The circunstances are such, hawever, that the entire

pattern of utility operation has changed. No longer is the deci»

sian entirely irk the hands of thc Plorida Power a Light Company."

11A. April L5, 1972 memorandum for record from James Be~re: Possible Interconnection —City of Homestead - FPaL Co.

(270709) ) see also "Memorandum to, File: City af Hamestead"

(2708712); May 17,'972 letter fro'm K.R. Beasley to James J.

Berry (270713);

11-1'2.

December L9, 1972 F=ank Thcmpson Memorandum to File Re:

City of Homestead/FPSL Interconnection (270806) . Talked withBe~. Be~ says the alternative to increased generation is a

tie.13. February L5, L973 memorandum to File f cm R.'T. Culverton

re. Service to City of Homestead (meeting with Homestead revealed

they will need power by 1975 and 'an interchange point wiLL be

required ... Noth'ng is «to be done at this time regarding thisinterconnection. Hey are to study a contract and contact us foranother meeting sometime later."

14. February 14, L973 Memoranda f"om Frank Thompson - South

Dade to Pile re: interchange —(270808) met with'omestead "Mr.

Page explained the rules of interchange and reviewed our

agreement with the City of Vero Beach. He explained that some

mutuality mus be involved in orde for a true interchange

agreement tofunction.'5.

August 4, 1973 letter f om Be~ To Bivans re:Negotiation: City of Homestead with PAL rigarding'nterconnec-tion (270814) Topics of August 8 meeting (a) interconnection (b)

supplemental power purchases.

16. August 9, 1973 James V. Be~ Memorandum for Record,res

Negotiations: City of Homestead, Florida, mterconnec ion withFPaI Company (6-240375) Notes on August L8, 1973 meeting.

17. August LO> 1973 E.L. Bivans memorandum to ile res

Proposed Interconnection City of Homestead (270812) res August

8 meeting. "It was pointed ou by the writer that the proposed

interconnec ion would not be mutualLy advantageous. ~ The benefitswould accrue primarily to Homestead. The benefi s to ."-PSL would

be minimal, since Homestead would have little or no reserve capa-

city. Therefore, as with the interconnection that Vero Beach,

Ft. Pie ce, and Lake Worth have or will have with FPI, Homestead

vill be expected to bear Ne entiie cost of the 138 Kv switchingstation...

18. Septembe 27, l973 memorandum rcm Willis Irwin to Cla k(<

Cook re: Interchange agreement City of Homestead, Florida FPaL

(270818) 'Jim Berry stated that he had hoped to record an

agreement at this meeting on an interchange agreement ut'lizing

11-12

all schedules o the proposed agreement furnished by FPL to the

Ciiy. (Similar to Vero Beach agreement) ~ . ~ P . Be~ feeLs thatFPL has delayed the decision long enough and that the C'y would

appreciate some affirmat've ac ion. ~ ~ The City proposed thatthey would own and construct the stat'on and FPL would cont ibuteone-hald the cost. FPL would operate and maintain it and these

costs would be shared equally.19. Jan. 15, 1974 letter from Mulholland to Pearson

(270893)g

20. October 2, 1973 Be~/F.F.. Autrey re: Negotiation: Cityof Homestead and FPaL Interconnection Proposal (270822).

New Smyrna Beach. In the case of New Smyth Beach, Citiescontend that (a) FPaL unlawfully conditioned emergency intercon-nection with the City upon its agreement to consider FPaL's lease

proposalg (b) FPaL unreasonably refused and delayed the entrance

into parallel interconnection and responded to requests by pro-posing to take over the system> (c) 'FPaL made New Smyrna Beach

bear «the costs of the parallel interconnection ultimately. entered

intog and (d) upon the creation of a paralleL interconnection,FPaL, unreasonably refused to. permit New Smyrna Beach to enterinto the full ange of interchange schedules with FPaL See alsoresponse to interrogatory 28, rec FPC Docket No. ="-8008.

According to representatives of New Smyrna Beach,. in the early1970's New Smyrna Beach wanted a tie with FPaL west of New Smyrna

Beach. It obtained a non-parallel, ldw voltage, isolated tie ~

While the system wanted to purchase par ial requi~ents throughthe parallel tie for base load purses and to peak load on itsown generation, it was forced to accept the best a angement itcould obtain. Fur«ther, the agreements were rest ictive.Throughout this and subsequent periods, FPaL delayed tie nego-

tiations because New Smyrna Beach believes, the company's desirewas to purchase the New 8m~a Beach system.

New Smyrna Beach believes that it could have obtained the

benefits it needed through a low voltage parallel tie. However,

FPaL would not agree. For evidence in support of the above see

response to int'errogatory 21 (New Smyrna Beach) and:

(a) Briefs, exhibits and testimony of Ci ies in Flor'da

LL-L3

Power a 'cht Comoanvd Docket No. E-8008 on the "interchangeissue," and (m particuLar see Zni iaL and Reply Brief of New

Smyrna Beach 'Cn the Znterchange Znterconnection issues d" June 3.L

and July 9, L974, and tes imony of Robert Bathen)

(h) Bsiefs, eshihiss ass easafoosy of ciefea fo ylosfdaPower a Light comoanvd FERc Docket No. ER78-19 et al. (Phase z) ~

Zn par icular see April 12, 1978 Reply Brief at 62-64 and testiee

mony and exhibits cited therein.(c) 'Excerpts f=cm a SpeciaL Meeting of the City Cmmission

of the City of New Smyrna Beach, Florida, held Friday, October 3,1958 ("Pending proposal submitted by N=. Allen Wright, ."-P&K, ViceP=esident stating that ~al wi3.1 provide emergency power, pzo--

vided that the City of New Smyrna Beach agrees to postpone the

purchase of additional generating equipment at this timed. and

vill agree to negotiate the possible lease or sale of the City'elec rical system."

(d) Sept. 13, L96& memorandum from g.B; Wright to R C

Fullexton re C'ty of New Smyrna Beach (210404) ("As explhinedpreviously, the City is accordingly faced with the alternative ofeither selling the enti e system or making a connection with ou=

Company and th's decision will have to be reached at a fa'rLyearly date because of the time factor involved.in obtainingsubstation tranformers and other equipment."

(e) September 25, 1968 memorandum from A.B. Wright to Fw.

C.S.'oomes re: City of New Smyrna Beach (251943) Attaches

copy of letter from John Littlef Directory New Smyrna Beach

Uti3.ities Commission and one from Reynolds, Smith a Hills "which

pertains to several types of connections for furnishing elect icservice to the City." Ztem 2 of ZLttle's letter "refers to a

permanent substation which the City would require in the eventthat we cannot work out some arrangement for taking over theentire business."

(f) october 8, 1968 let er from Alan B. Rrightd Vice

Pres'dent to M ~ J.V. Li t3.e re: September 19, 1968 Little letter(re Ztem 2, "a proposal for a permanent connection orinterchange" i.. "Inasmuch as ~&is requires a rather complete

engineering study and some planning on our part, it is going to

— C150—

LL-L4

~ ~I

require a litt'e more time to prepare bhe p"oposaL."

(g) Octobe» 3, 1969 'tta» a om J J Be~ to John Q

(New ~a Beach Utilities Director)

(h) December 6, 1969 letter from Be~ to J.T. Bensley res

Authoritation No. UCllQ-2-69

(i) Jan. 8, 1970 J.J. Be~ to Ha~ V. St eet re Heeting

Regarding Possible. Laterconnec ion with New Smyrna Beach, Florida

(222129 222127);

()) January 9< 1970 Be~/Bensley re: January 7, 1970 meeting

wiD FPfZ,

(k) April 17, 1970 let er from J.J. Be~ to Wright

(1) July 20, L970 memorandum from A B ~ Wright 'to J ~ Qo

Spencer re City of New Smyrna Beach (26L825) (re takeover

proposal )

(m) July 23, 1970 memorandum rom C.S Coomes to J.Q.

Spencer, Jr. (261032) (re takeover proposal)

(n) July 25, 1970 letter from J. Be~ to A.B. Wright

(261033) (parallel operation wouLd be advantageous)

(o) July 27, 1970 memorandum from A.B. Wright to J. Spencer

(222132) ("Although I think that we should be able to come up

with a rather convincing argument for Leasing, at the same time

there is a probability that the City might continue to purchase

power either under an arrangement such as we now have on a more

permanent basis as recommended by the engineers."

(p) July 31, L970 letter from A.B. Wright to J. Berry

(261036) (FPL would not consider low voltage pa allel operatfons

desirable)

(q) Aug. 20, 1970 memorandum from A.B. Wright to J.Q.

Spencer re City of New Smyrna Beach (222137) (New Smyrna Beach

again requests 13.2 Kv or 23 Kv paralLel tie)(r) Aug. 21 1970 Be~ letter to Bivans (222136)

(transmitting drawings on Wauchula-Florida Power Corp. parallelinterconnection)

(s) Aug. 2$ , 1970 Bivans memorandum to Wright re L3.8 Kv tiewith City of New Smyrna Beach (the proposed 13.8 Kv tie "can'emade providing certain require~ents for relay protection and

operations are met.")

~ ~

I

(t) Sept. 14, 1970 memorandum frcm A.B. Wright ta E.L.Bivans re New 6m~a Beach (222133') (xe alternat've means ofserving New Smyrna Beach after takeover)

(u) October 2, 1970 letter fram Berry to Bensley m:Zntercannection with FP&L ("During the last week Ln July L970

Smith a GLLLesple chginee s, Inc. received word fram FPaL thatthey would agree to a tie line with New Smyrna Beach

(v) Oct 10, L970 letter fram Be~ to Wright re New Smyrna

Beach/FPaZ Co. (26L042) (Encloses two draft letters for FPat,.

The first letter Ls "to establish for the record that you neversaid and we never attributed ta you a statement that the FPSI Co..

was of ering or was Ln a position to sell firm power ta the

Utility Cananission of New Smyrna Beach.'he second canfirmsthis ta FPfI., and states furler that New Smyrna Beach has "notabandoned our hope that an arrangement may be develoaed whereby a

synchrani"ed tie cauld be installed ta the mutual advantage ofI

all concerned."

(w) Be~ draft letters, with mark'ngs (261024-26L029)

(x) Oct. L6, 1970 memorandum to file by C.W. Cogbum reService to New Smyrna Beach Electric UtLlity Customers (261037)

(Smith a QLLLespie stated "that a paralleL tie was gentlyneeded and that because of the successful operation of theFlorida Power Corporation tie to the City of Wauchula, he was

recommending a similar tie between the City of New Smyrna Beach

and FPaL Company."

(y) Oct. 17, 1970 letter ta Wright from Be~ (261029)

(») Oct. 19I 1970 J.J. Be~ to J.R. Bensley (UtilitiesDirector) re negotLations with FPaL.

("We beLieve Lt would be fair ta say that.xheUtilities Commission Ls not negotiating f om a positionof strength and the alternate considerations which wereLnt oduced, such as the xequest far proposal ta pu chaseor lease the system do not assist in these negotiation.Prima y cancern Ls to have a tie with FPaI by the summerof 1971, which will be adequate to provide a means ofx'elieving existLng power production situation. >m viewof the LnanciaL situation of the Utilities Commission,is Ls essential that this interconnection be provided atminimum possible cast with the specific cansiderationsthat immediate cash recuirements be held ta the absoluteminimum ... All questions 'other than the last i'm havebeen satisfactox'ily resolved. The FPal Ls well awarefrom pxess statements that New Smyrna Beach wants a tieLn any manner Mat they can get it. This is the reasonwe have not accepted a letter or requested a letter up/

1-16

to this t~~e to establish Na Ae City of New 6m~aBeach will make the tie without obtaining paralleloperation as par of the agreement. Zt has been satis-fac orAy es ablmhed that the tie is available withoutthe parallel operation and that we can obtain the tie atmiminum cost. "«owever, in order for 'the UtilitiesCommission to use the tie to its best advantage and in amanner that is most 3,ikely «to permit the UtilitiesCommission to restore itself to full independent opera-tion,, it was considered essential that the UtilitiesCommission have the right to operate the tie cLosed, inparallel with existing generat'ng capability. "Theproblem is, this must, be accepted by the FPaL. We havenot achieved 'rhis acceptance, as yet. We thoughprogress had been made, but find our position adverselyaf ected

'r)

Oc.ober 23, 1970 J.J. Bevy/Bensley ns interconnec ionwith FP%L. "The fact. that the line is needed and will be

regni ed prior to the summer season of 1971 is accepted. Meproposed route of the line is accepted. The point of the inter-face is accepted. The point still not accepted is «the fact thatAe'PaL Co. has proposed that the tie be made on an open or

unsynchronixed basis. Careful evaluation of all factorsincluding the effect of such operation ori the cost of operationof the New Smyrna Beach system indicates that a synchronized orclosed tie would be to the greater long range advantage'of theUtilities Commission of the City of New 6m~a Beach."

(aa) October 23, 1970 letter 'rom J.J. Be~ to Alan B.

Wright re: Znterconnection with FPaL/New Sm~a Beach

(ab) October 24, 1970 Chadwick Bucks to J.T. Bensley, r'e: New

Smyrna Beach/FPaL

(ac) November 2, 1970 letter from Wright to Be~ re: New

Smyrna Beach/FPaL and Berry's October 23, 1970 letter (261039)

(FPLL will make power available, but not 'firm" power; FPaL w111

build the line, buy transformer, and rent to New Smyrna Beach;

30-35 weeks needed to get " ansformerg We are still of the op&3on that i would. not be practical to operate both systems inparallel."

(ad) November 6, 1970 Berry/Wright res New Smyrna Beach/FPaL

(261836) re: October 22 Wright letter. Berry (1) asks or infor-mation on paymentsg (2) states "We recogni"e the position statedin your next to last paragraph; i.e., the FPGL Co. is of the opi~ ~

Pion that it would not be practical to operate both systems

parallel. Z" is honed, however, that we may continue the

'-17

P

discussion w' you and such others as designated by you «to

explore «the possQility of synchroni"ed operation. Ois state-ment however, in no way adversely affects ou interest in pro-ceeding on an unsynch oni"ed basis."

November 11, 1970 Wright/Berry res New Smyrna Beach/FPaL

regarding Be~'i November 2 letter. Sends cost data. Adds

'Although we st~&1 do not consider it practical to operate both

systems parallel under existing conditions we reali e «that atsome future date changes may be made which could result in making

a synchroni"ed operation feasible. At this time, however, itseems best to proceed on the unsynchronixed basis."

(ae) January 28, .1972 memorandum from J.T. Bensley toUtilities Commission and counsel res FPaL Tie-Line Chad Bucks,

and Bensley met with Wright, Pringle and Moore of FPaL on

November 27. New Smyrna Beach asked F?aL to look at two alter-natives (a)'ermit New Smyrna Beach to spend money to synchronizeand (b) install more " ansformer capacity at Bdgewater "They

promised to give these things serious consideration" and get back

in touch.

(af) July 14, 1973 Robert Jabion letter to FPaL, attentionMr. Mulholland w: >closing proposed interconnection cont act(agreement provides for transmission service as well as schedule

A-Dg also for coordination and joint generation).,(ag) October 18, 1973 Marshall McDonald/S. Victor McDonald

City Commissioner ("I assume you are aware that the law firm ofSpiegel & McDiarmid has been cor esponding with the Company can»

cerning an interconnection, but we are assuming that «the of icialattitude of the City is to explore the sale or lease proposal ~

If I do not correctly understand the situation, please let me

know."

(ah) October 10, 1973 letter from Mulholland to Robert Jablon—enclosing a cont act "which we feel more fairly represents the

type of agreement that should be made."

(ai) October 16; 1973 Robert Jablon/Mulholland Re~ FPaL's

letter of October 10 (New Smyrna Beach studying FPaL's proposalwhich is the FPaL/Ft. Pierce Agreement. I do note that New

Smyrna Beach is requesting the availabili y of ransmissiod ser-

11-18

vices, which are not provided at all in the Ft. Pierce

agreement.'a$

) November 12, 1973 —R.W. Beck/R.I,. Pringle (FPsI ) Re:

New Smyrna Beach Power Supply and Proposed InterconnectionAgreement (states 23 Kv paraLLeL prefer ed; Looking forward toresuming negotiations) .

(ak) December 14, 1973 Rober Jablon/Mulholland re! New

Smyrna Beach/Negotiations for Parallel Interconnection and

Interchange Agreement. %closes Docket No. E-8008 testimony;which incLudes proposed. agreement —including transmission schQ—

boule. 'Please Neat the encLosed form of agreement as a defini-tive proposal upon which FPSL should be prepared to negotiate."

(al) December 28< 1973 Mulholland/Robert Jablon re: New

Smyrna Beach: Negotiations for ParaLlel Interconnection and

Interchange Agreemenr,. Acknowledges Jablon's December 14, 1973

letter, says FPaI is asking City Commission about it.(am) January 3, 1974 William E Swope/Mulholland res,

clari ying Jablon's authority.(an) January 28, 1974 R.W. Beck/R.Q. Mulholland re: proposed

23 Kv interconnection.

(ao) January 29, 1974 MulhoLland/Bathen FPaL tells Bathen

that interconnection must be at the t ansmission voltage.(ap) July 23, 1974 W.D. Lang, 'Asst. Nief engineer

FPaI/Bathen. Bathen's June 21, 1974 proposal is unsatisfactory.(aq) August 5, ~ 1974 Karl Porter/Lang re: Asks for backup

study to Lang's July 23 letter.(ar) September 19, 1974 New Smyrna Beach'otion.to Reopen

Record" FLorida Power a Light Company, FPC Docket No. E-8008.

Requests, inter alia right to explain why FPaI should make some

contribution, i the high voLtage interconnection proposed by .PaL

is ordered.

(as) October 23, 1974 Utilities Commission meeting

requesting, inter alia, engineers to proceed with plans for highvoltage inter connection.

(at) December 10, 1974 Letter of R.W- Beck to UtiLitiesCommission, re: benefits of paraLLeL hterconnection.

(au) December 6, 1974 Bathen/Mulholland and DanieL.

C155—

LL-L9

(av) December 20, 1974 SpiegeL/MarshalL McDonald re: New

Smy=na Beach: inta connection procosals aLternative to FPL

acquisi 'on (regarding propsaLs made ~ FPaL at December 9

meeting at ."-PaL's Daytona Beach of~ice) ~

(aw) January 6, 1974 Robert Jablon/Fuqua re: SPEAL-New Smyrna

Beach Purchase Proposal. Re FP('L has,not responded to Bathen's

December 6 reques for information.

(aX) January &, 1975 Jehu Ea ChiShclm/HOn. MiLL~S BeViS re:Florida Powe a Licht Company FPSC Doc}cet No. 74509-yà and offerby FPaL to purchase New Smyrna Beach electric system. For many

years, the Urili«ties Commission has been ~ing m negotiate a

parallel 'nterconnec«ion. For as many yea s, FPaL has refused.'-(ay) January 9, 1975 Mulholland/George Spiegel re: No to low

voltage interconnection; wiLL interconnect at high voltage; but"Zt is FPaL's position that New Smyrna Beach is responsible forall costs attributable to

interconnection.'ac)

January 17, 1975 George Spiegel/Mulholland re: New

Smyrna Beach, Florida. Znterconnec ion proposals alternat'e ~FPaL acquisition. Please provide a specific interchange propo-sal s

(ba) February 19, 1975'ohn KeLly/MulhoLland re: New Smyrna

Beach Regarding Mulholland's January 24, 1975 lette m Fvan

9ILLLiams. New Smyrna Beach will begin construction as per PPaLSs

January 9, L975 letter and will accept FPaL's interchange

agreement, as attached to January 24, 1975 Letter; New Smyrna

Beach adheres to position that contribution is in order, and

reserves the right to litigate; does not waive claims "based on

retroactive entitlement to rate based on interch'ange availabiss

lity, etc."Stashs. Stsas 5955 tha CS y a Sta"hs haa aaaght e tatst-

connect with FPaL to ob«tain power to supplement its own genera-tion and to reduce the need or additionaL capacity. Before

recent negotiations, FPaL either refused such requests, orrefused to interconnect on reasonable terms. The question of a

fai interconnect'on is presently under negotiation.Zn L955 the City approached FpaL to cbtain wholesale power,

which at that ~'~e would have required estabL'shment of an interss

— C156—

lL-20

cannection. As vas recagni ed in an internal company memorandum

of Pebruarv 1, 1955, frcm Mr. Wr'ght, ."-PaL Division Manage" taMr.."-' (see answer ta interrogatory 9), absent such intercon-neet'on Starke would be forced to spend Large sums of money tabolster its system or would have to consider some sort of leaseor saLe ar angement vith the Company. FPaL as a matte of policyrefused ta sell power ta the City. Me City vas forced to add taits generating plant.

PPSL also resisted an adequate emergency tie. At a December

7, 1965 meeting af the C'ty Commission, the Mayor suggested «that

the Ci y go ta FPaL to obtain a tie so «that the C'ty's customers

would not suffer in, the event of a pLant failure. According toCity Clerk Mer ilL Edvards, this vas the beginning of negotiationsthrough vhich the City sought vhatever tie ~s available. At a

City'ommission meeting on September 2, L969, Cammissiane Tuckerannounced that a meeting would be held vith FPaL to discuss the

possibility af a tie in. That meeting vas heLd an September 29,I

1969 at a City Cammission session Ma ian Har ington and BabertPringle, Jr. epresented FPaLg Councilmen Wiggins, MacRae and

Tucker and City Cle k Merrill Zdvards were present for the City;F

bond t ustees T.H. Hasen, Jr., J.C.'ogg and George Plynn, Sr.were aLso present.

Mr. Pringle explained the demand rate schedule that FPaL had

prepared. The City Cammission stated that it wanted emergency

standby pover, ta be used only when tt was needed by the C'ty.Pzingle explici«tly discouraged such an intertie and said that(though he was not prepa ed to quote prices), to obtain such

powe the City would have to pay for moving and reinstaLLlngLarge FPaL trans ormers and that the cost. of «the tie and the

substation would be too great for the City to bear. According toMerrill Edwards, C'ty Clerk, FPaL left the impression that it vas

not truly interested in entering into an interconnection arrange-ment with the City.

Some time in earLy May, 1970 the C' CounciL members met

with Alan Wright, Sr. of PPaL ta discuss a tie. Mr ~ Wright wrote

a letter ta Starke, wh'ch vas read into the minutes dn May 19,

1970, noting that any interconnection would only be made or

— C157-

11-21

emergency pu~ses and that we (FPCI) a e not 5 a position to

supply firm power."

A some point during this period, FPsl and Starke had a nor-

mally open tie through tzansfozme banks ~ Mls az:angement was

not satisfactory to the City.Again, in November, 1973 representatives of the C',

Wiggins, Tucker and Me ilL 'Edwards i met with Robert Pringle

Daytona Beach. P ingle told the City representat'ves that the

Company would not guarantee the City any ext a power through the

interconnection because (according to FPaL) the Company had

insuf icient capacity in the northern end of the State. Again in

June 1974 Tucker and Wiggins contacted FPaf. in an attemot to

ourchase firm power. Again, PPaZ refused to pzovtde firm power ~

Thus up to 1975'hile FPat, was aware of the fact that the

City wanted access to izm power and was necessarily aware that

the established interconnection was m~adequate, FPaf. has efused

to provide a tie adequate for even emergency'ackup. The need

foz interconnection was expressed to Fpai m private meetings as

outlined above and at public fora., Also, representatives ofStarke appeared at a FCG meeting ~i Jacksonville, Florida/attended by a representative of FPaL, Mazshall McDonaldi an'd

demanded an interconnection.

The interconnection was upgraded to a 3,000 KVA tie on June

18, 1976. This tie'was stiLL not adequate to provide reliabilityand not adequate to provide desired power supply alternatives,including interchange. However, FPal does provide PR service foz

part of'tarke's system.

Following construction of the 3,000 KVA line, Ae director of

utilities, MerriLL Dees, sought to obtain a 4 MW pazallel ie.ShortLy thereafter the consulting firm of R.W. Beck a Associates

was hired to negotiate a tie ~ These negotiations have been

underway foz tw years. To date, the cost of the interconnec ion

that FPSL has indicated Starke would have to bea is excessive,

in Starke's view. ~

Gainesville. As detailed by Qainesvtlle in the Cainesville

case, FPaL, pursuant to an unlawful division of territory with

LL 22

Plor'da Power Corporation refused to interconnect wi«th

Gainesv" le. See Gainesville dist ict cour case and Gainesv'liev. Florida Power Car=oration, Docket No. E-7257 and testimony and

exhibits, and Gainesville briefs, generally. These documents

include:

l. July 7., 1966 Kelly/Pite letter (PL 919) (attaching copy4of depositions in Ga'nesviLle v. Florida Power Coro. case)

stating'hat in earlier conversations Kelly had understood «that

PPaL would not serve Gainesville with intertie because of a

territoriaL agreementg seeking reconsideration.2. July 19, 1966 Fite/Kelly letter (PL 920).

'I am fulLy aware of your interest in making anintertie with the interconnected system in Florida andsince I understand that negotiations are continuing beg-

hteen Gainesville and Florida Power Corporatin, I sin-cerely hope they'l be successful and that you willarrive at a mutuaLly satisfactory contract."

3 ~ Aug. 2, 1966 (PL 921) letter f=om Kelly to Pite. Kellysuggests that a meeting of engineers be convened to discuss eco

1

nomics of interconnection.

4. Aug.'L2, 1966 letter from Pite to Kelly (PL 923) statingan interconnection would requi e territorial agreements; asking

KeLLy to comment on benefits of interconnection (PL 924).5. Aug 30, 1966 Kelly/Pite letter (PL 924). Response to

Aug. 12 Pite letter.6. Oct. 10t 1966 Kelly to Fite. Has not heard from Pite

re enginee ing costs. Refers to FPC National Power Survey on

interconnection. Notes Ci y has not heard from Pite re Kelly'sAugust 30 letter. Notes that he is certa'n that Fite has 'keptabreast of the Florida Power Corp. proceeding.

7. October 12, 1966 R.C. Pullerton letter to Kelly. Notes

that FPaL has the letter of October 10 but Mr. Fite is out of the

office for a while.8. October 24, 1966 Fite/Kelly Letter (PL 928).

'I fully appreciate your haste to get your affairs takenof it is understandable, so be assured that we will con-tinue to study the thoughts and ideas you have advanced.As Z said in my letter of August 12 we are recheckingour engineering figures, and as soon as these are morefully developed, we will get in touch with you."

See also Robert Roundtree, "Memorandum to fiLe re .=PaL

Company. Monday, March 27, 1967, 10:00 a.m., Rober Meyer Sotel,

—C159—

11-23

Orlando, Flor'da (notes re meeting of public and private systems)("John Kelly —'Will you (FP&I,) intertie with Cafnesvf13.e?" Mr.

Ffte replied no, that Qafnesvflie should work with Florida Power

Cong ot'ation ~

Tallahassee. In response to Ta3'ahassee's request forinterconnection, Florida Power Corporation (a) insisted on terri-torial agreement as a precondition; (b) refused Tallahassee'srequest to be permitted to par"icipate fn the Florida Power

Pool/Florida Operating Commftteeg and (c) refused to deal withTallahassee f Ceorge Saiege1 or Robert E. Bathen were involved.Hvfdence of the above includes the following:

1. September 8, 3.966.memo to (Florida Power Corporation)file from S. A Brandfmore re interconnection-Tallahassee (PC-

3.059) ~ This memorand~ discusses a meet'ng of that date between

Florida Po~er Corporation and Tallahassee."Mr. Hebb asked Mr. Bathen what hfs deffnitfon was ofemergency interchange versus scheduled interchange. Mr.Bathen that the city would agree to a meaning of those'erms as set forth in the 0"3.ando agreement. He statedthat the city was interested fn being a member of theFlorida Pool. Messrs. Dunn and Pere" assured Mr. Bathenthat there was no pool, that the Florida Operating Croupcar fed no obligation, but was predicated on faith andgoodwill and a spirit of cooperation, and that Ae com-pany could not invite anyone into Ne group without awi13.fngness on the par- of other members to coopera

e.'.

Seotember 29, 1966 memo to file re C'ty of Ta13.ahassee

from Andrew H. Hines, Jr. (PC-2090). This memo records a can-

ffdential Septembe" 26 meet'ng between Hines and Hopkins. Atthat meetfng, Hines told Hopkins that the Company was at odds

with Beck, and

"that we had serious problems fn the Cainesville areainvolving interconn'ection and that we felt negotiationswould be much more productive ff we took a fresh startalong more direct lines without this case becomingenmeshed fn court proceedings, etc. I advised that wewere «%inking of an Orlando type arrangement, includinga ter ftoria1 agreement and a fair and equitable basisfor charges depending on expenses and benefits."

3. September 30, 3.966 memo to Mr. A. P. Pere from P.. BE

Raymond (PC-1052) ~ In re Hines'eptember 29, memo, "It issuggested that in the dfscussions and negotfations concerningsuch interconnection that one of the stipulations of Florida'Power Corporation for such an interconnection would be the

purchase bv Florida Power Corporat'on of «Ne C' of

— C160—

24

Tallahassee's distribution facilities in WakullaCounty.'.

Febzuary 15, 1967 memo to 'Le from M P ~ Hebbg Jr ~

Mz. A. P. Pere" ze City of Tallahassee meeting cf February 13,

1967 (PC-2105). The meeti'ng involved Tallahassee, Po~er

Corporation and Billy Mayo of Ne FLorida PSC. At zhls meeting,Power Corpozation advised that Mr. Ebaugh should be kept out ofdiscussions because he was evolved in the Cainesvtlle case.

"Mr. Ebaugh and M=. Satterfield therefore were left out of the

meeting from the very beginning." Also, "Mr. Etunn made it empha-

tic to Mr. Hopk'ns that i Mr. George Spiegel and M . Rober" E.

BaDen were in any way whatsoever m~volved with Tallahassee< we

could not go any further with our interchange negotiations. Mr.

Hopkins advised that he had stated to our people earlier and now

reaffirmed his position that neither Mz. Spiegel nor M . Bathen

were in any way whatsoever associated wizh the City ofTallahassee.'Mr. Hopkins told us the zeaL'urpose for expe-

diting the negotiations that Tallahassee had to make a de'cision

by the end of Pebruary as to whether'r not they should ~itorder for a generator to be placed in sezvice in 1970.

Tallahassee has in hand bids for a 44 Mw unit and a 66 Mw unit,one of which would be instaLled at St. Mark's. Zf the

interchange negotiation should result in successful agzeement

whereby Plorida Power Corporation could assure TaLLahassee ofsupport after 20 Mw in 1970, then the decision to add generationin the Tallahassee system could be deferred for at least one

year. Mr. Hopkins mentioned if such an ag cement could be

reached it would open the door to Tallahassee for postponing a

~w'enerator until they could they could jus ify a large reheatunit and possibly to develop a new plant site.

"We assured Mr. Hopkins we aze expediting the engineeringdeterminations foz the first phase of the interconnectionproposal..."

I

5. Pebruazy 15; 1967 confident'al memorandum to Mr. W. D.

Shenk =om Andrew H. "'nes, Jr. ze City of Tallahassee intercon-nection and territorial agreement (PC-844). " This again refers tothe February L3 meeting. "The point was made to Mr. Hopk'ns thatthe proposed interconnection would involve a territorial

— C161—

11 25

agreement and that prcgress would be faster and smoother if nego-

tiations proceeded d'rectly between the c'ty and the company.

Mr. Hopkins ag eed to this." The memo conuins furtherdiscussion about the territor'al agreement.

6. February 23, 1967 memo to A. H. Hines, Jr. from J. F.

RoeseL, re City of Tallahassee interconnec ion and territorialaqreement (PC-1090) ~ This document records a February 17 meeting

between Mr. Roesel, M. Hopkins and Mr. Dykes. The discussion

concerned the ter=itorial agreement.

7. March 8, 1967 memo from M . M. F. Hebb, Jr. to Mr. A. P.

Perez, re City of TaLLahassee interconnec ion negotiations (PC-

1088) ~

'Florida Power and the city are to continue thin3d.nqand planning for the second step of this project to seeif Tallahassee can defer the next unit and install alarger one. Mis must be done before three months havelapsed to permit them to protec" their manufacturinqslot,. We feel we should take the ipitiative in this andfind a way to provide a high capaci y interconnectionearly enough for the city to defer a unit untD.they caninstall a.larger one. We should then determine'i wewould be willing to pu chase a portion of this Largeunit so that Tallahassee can be presented with a packageagreemen which will be hard to turn down. FloridaPower can realize revenue benefits f~ such anagreement while Tallahassee would obviousLy stand tobenefit by justifying the large= unit and possiblyobtain some revenue rcm Florida Power."

8. March 14, 1967 memo for file f om Andrew H. Hines, Jr.re City of Tallahassee. Records March 8 meetinq with Mr. Hebb,

Mr. Brandimore, Mr. Roesel and Mr. Hines with Tallahassee.

"There were no indications that either R. W. Beck or Spiegel were

invoLved in this project.9. March 14, 1967 Letter ~m Hines to Arvah Hopkins (PC-

L398). Hines w ites to set forth Florida Power's positionregarding the ter itorial agreement.

10. March 23, 1967 memo to file f om Hebb (PC-1083). Upon

learning that Tallahassee had committed purchase of the 44 Mw

unit and that the commitment had no delay option, I contacted Mr.

Fred Strickland askfng about the status of our negotiations.Mr. Strickland con imed ou information that they had purchased

a unit, that the unit size cauld be changed within 90 days but

the unit could not be delayed without possibly reopeningbids'hen

asked if our aLLure to offer firm capacity or negotiate had

anything to do with this decision, Mr. Str'ckland repLied it— C162—

11-26

definitely did. He also stated that our capacity charges under

scheduled interchange service were prohibit'vely high fo» them Muse in postponing generation. I told that we had concLuded our

engineering testimony and cross-examination in the Gainesv~&le

case and that I would now propose to the management that we

revise the interchange agreement and present it to Tallahasseeinclude firm capacity

purchases.'L

April 11, L967 memo, to file from Hebb re Tallahasseecontact with Hr. F=ed Strickland (PC-1934). Hebb calledStrickland to discuss a newspaper ar icle on a Beck study .orTallahassee. Power Corporation was greatLy disturbed by the

following items: 1) acquisition o Florida Power's Jackson BLuffplant; 2) immediate and long-range interconnection plans g 3) costand advtsability of entering into various pooling arrangements;

4) potential plans for a Florida municipal power pooL~ and 5) "

long-range regional powe supply pLans such as the proposed

Yankee-Dixie plan.d

12. April 14, 1967 memo to files from Hines re Tallahassee(PC«L933). Hines talked with Hopkins about the Beck, newspaper

ar icle.L3. June 1, L967 memo om Hebb to A. P. Peres re

Tallahassee (PC-1932). Strickland "indicated he would present tous a revised and marked-up copy of the proposed contract withBeck and Associates to present at the allahassee Commission.

Tallahassee feels that the evised contract approved wiLL be

innocuous to Florida Power and that it would cover only the

aspects of financing the expansion prog ams so the Tallahassee

Commission would have a hetter understanding of the problems

involved in their expanding utility system."

14 ~ June 9, 1967 memo to A. H. Hines, Jr. from Hebb re

Tallahassee meeting June 8, 1967 (PC-1931). 'At the opening oithe meeting we expressed a strong unwiLLingness to continue nego-

tiating with Tallahassee on an interconnection as long as therewas any chance of Beck a Associates being in the Tallahasseepowe supoly problem." Then Powe" Corp. said they "old the city<inc'hding th ee of five city commissioners that were present,that "if Beck did show up, we would calL a halt to negotiations."

11-27

Power Corp. stated that they were interested and would insistupon a territorial agreement.

Sebefna. As stated in msponse ta question f22. t5e

Qainesville ter.itoriaL conspiracy encompassed refusals by Fpal

to interconnect with systems in Florida Power Corporation's'ter story" and paralleL refusals to interconnec by FloridaPower Corporation. As shown by the following documents, Sebring,which had been refused wholesale service by Florida Power Corp.,sought. to interconnect with Wauchula. Florida Power Corp.f which

had initially refused to interconnect with Wauchula, agreed to do

so following Sebring's development of an engineering proposal forinterconnection with Wauchula. When Sebring then sought inter»connection with FLorida Power Corp., the Company misted on a

territorial agreement as a precondition for the a angemen, and

refused to deal with Sebring if R.W. Beck, Sebring's engineeringconsultants, were involved. Evidence of 'the above include the

foLLowing:

(a) April 12, 1963 letter f om E.S. Hunt, Chairman Sebring

Ut&ities Commission to W,C MacZnnesg P esident T COt

(b) May 31, 1967 transmittal rom R.W. Beck to Sebring

Utilities Commission, "Letter Report on Wauchula —Sebring

Znterconnection'PC 905);

(c) June 8, 1967 R.W. Beck t ansmittal to Sebring UtilitiesCommission re Wauchula» Sebring Znterconnection - Recommended

Policy Resolution;"

(d) May 14, 1967 memorandum rom J.H. PhillipsCommissioners, Sebring Utilities Commission re Sebr'ng MauchulaZnterconnection;"

(e) July 19, 1967 Letter from J.H. Phillips to James J.Berry re FPC Hearings City of Qainesvtlle v. Florida Power Corp.;

(f) July 20, 1967 letter f om J.H. Phillips to George

Bu .is, Superintendent of Public Works, City of Wauchulag

(g) Sebring Utilities Commissin News Release, "Ten Year

Savings From Wauchula - Sebring Zntertie Could aceed

SLi500,000;'h)

Feb 4 g L968 Tamoa' ibune cl ipping, page 14-A, "'Peace

VaLley News" ("FPC flatLy refused ro sell elec"='cal energy to

11-28

Wauchula, which was buying additionaL generators every year orso to keep up with the g owth. But Wauchula of ic'als had an ace

up Meir sleeves in the Lang d awn out negotiations. Wauchula

turned to the C'ty of Sebring for atie-in.'Zt

was learned that after HC appraised the proposed Sebring- Wauchula municipaL (nterchange, FPC o ficials began nego-

tiations with Wauchula officials for «the inte change, which willbe in operation within a few months."

(i) March 7, 1968 memorandum from M.P. Hebb, Jr. to A.P.

?eras re Sebring Interconnection (PC 917);

(g) March 29, 1968 letter frcm J.H. Phillips to A.P. Pere"

(PC 913) g

(k) April 3, 1968 memorandum from M.F.. Hebb, Jr. to A.P.

?eras (PC 912);

(1) April 9, L968 memorandum to file f=om J.E. Gleason re

Sebring Znterconnec ion (PC 909)g

(m) April 10, 1968 lette rcm Maurice P. Hebb, Jr.'to Mr.

L.C. Smith> Chairman, Sebring Utilities Commission (PC 908) g

(n) July 5, 1968 memorandum to file from J.E. Gleason re

Sebring Utilities Commission (PC 907) g.

(o) June 3, 1969 memorandum from M P. Hebb, Jr. re City ofSebring - Summary of Negotiations for Enterconnection (PC 906)>

(p) Aug. 8, 1969 letter from J.H'hillips to J.E. Gleason

(Peres Gainesville deposition, 'Exhibit 16);

(q) Sept. 12, 1969 letter from J.H. Ph'llips to J.E. Gleason

(?C 1255)

— C165—

7~W ~ pcn conte C ~Q NPz ~4 aI ~4 g o Qsh~ C«s q ~ aw gC m crc~C

n BS nr Ce Ve 7 ~ Q~ ao+~enIn C Ignaai Ivy

the Q gg or t~~ ease~% ~ p'e T apeC ate ~ s t q j~~ c anyZ snch

ac"'cn. s~r th has's fc pet" ccn-- -'cn.sped.~'caL'y 'each ac=, ~~''u=a tc ac- anC Ccc=ent Mh'ch

~~orm pen= ccn~" cn. anC ""e "X™~m . na e anC t'"'eof the ye"scn mak~ "q ~e re:est or w Mhe ''"S se+ce:fc~ cf ~~" ~es ('.e., Mz n- c" o~~, ~" ye"scn c-

hp'et

co+one) anC, c o a r a ~ o ass ge sots present an

e the req es- was naCes Cate o "" ries-: perscn a MhcmI

the r~esn vas aC"= sseC; na e cf person who responCeC tc ~e" ~est; fo~ of t e r~ycnse (', vrL " c= crxL, .Myemon c= hp'ele@bene) anC, f. oraL, a J~sn of ~~ yerscns

present an t e Me «e Mense oas g~venr f4~son tc '4hcn the

r sycnse was aCC= sseC; anC Cat of the " sccnse.

14-1

Answer to Xnterrocatorv 14

14. &is answer covers FPRL's refusals to provide t ansmission,

delivery, displacement or wheeling service within the perimeter

of 'ts retail service area. See also answers M inter ogatories

11, 15, and 22.

As FPaI has adm'ttad, prior to the 1977 provision of ~

t=ansmission for New Smyrna Beach's share of CR-3 power, it did

not provide wheeling or t=ansmission services or Cities even

~&ough requested to do so.

amples of this admission of FPaI.'s policy of not providing

t=ansmission services includes

1. October 10, 1972 deposition testimony of FPaI. off'ciaLHenry W. ?age in Gainesville Utilities Department v. Flor'da

Power a Dicht Comnanv. As Mr. Page testified, at L52, FPSL does

not "wheel power 'or any other system. (As testified to by FPII.

official Robert J. Qardner, Mr. Page was an FP6L of icial with

substantiaL responsibilities for both FPaL's tmnsmission system

and dealings with other utilit'es i.n the period 1945-1972. 'See

Flo ida Power 4 Light Company, FERC Docket No. ER78-19 ct al.,(Phase'Z) ~. 449W50.)

2 The May 23, 1975 Letter from Mr. R.G. Mulholland, Group

Vice President FPII.. to Mr. John R. Kelley, Director of

Utilities, Utilities Commission of New Smyrna Beach (Aug.

memorandum, Document No. 26) ~ As Mr. Mulholland stated, 'FPIL

has not hitherto been in a position to offer transmission ser-

vices of the nature generally refer ed to as wheeLing or

displacement." See also identical statement in Mr. Mulholland's

Letters of that date to Mr. A W. Harrington, Di eb"or, System

Engineering, Jacksonville Electric Authority (ER78»19, GT-38) and

to C F. Blair of Clewiston.

3. The position taken by FPCL in connection with itstransmission rate filings in 1977 and '3.978 in Florida Power a

stated, for exampLe, at pages 1-2 of FPaL's June 30, 1978 ZnitialBrief in ER77-175, 'after New Smyrna and Florida Power colludedan agreement for the purchase by the City of a portion of CR-3

—C167—

14 2

generation, the City "equested FPSL to " ansmit its portion of

CR-3 power over F?aLgs -ansmission sys em ... FPsL never before

provided this type o service M any customer...'imilarlyp inappealing the Commission's decision to treat FPaL's t"ansmission

filings as filings under Section 205 of the Federal Power Actp

FPaL contended that 't had never previously provided transmission

setvlee. As amtad atpa. ge lo of gpat's aeply sofef lt ":lotlda

Power 4 Licht Company v. F~RC D.C. Ci ~ Nos. 78-1884, et al.(May 24, 1'979), or example "... there has been no rate schedule

for t ansmiss'on service to these customers krown to either the

Commission or FPaL prior to the t"ansmission service agreements

filed by the Company in the proceedings now before this court on

review. These t"ansmission service agreements provide for a new

service, never before offered to these customers." But see

response to interrogatory 28. Zn the Application forClarification and Rehea ing of FPQL in Docket No. ER78-19 et al.(January 21, 1980), FPaL stated its unwillingness to file a

tariff~ 4. FPaL's 'ling in Florida Power 4 Light Company', FERC

Docket No. E-9574. As stated at Exhibit N, Schedule VZ-2 to

FpaL's application to acquire the vero Beach municipal elec ic

system, "(N)o current wheeling options available."5. The February 17, 1971 memorandum to file from FPaL offi-

cial J.L. Breedlove Re: Meeting Regarding Znterconnection Between

Lake Worth Municipal Electric. System and FPaL. As.recorded inthe memorandump in response to Lake Worth's inqui~ on wheel'ngp

M ~ Breedlove advised that 'we would not and did not make such

cont=actual agreements. Z said thar, we preferred p, ifnecessary, buy the power from Vero Beach or Fort Pierce and sell.it„ to the City of Lake Worth. Z said we prefer to be the agent

and not merely a carrier. Z explained to him that this is the

way we have been ope ating and plan to continue on the same

course."

6. Testimony of R.J. Gardner in Flor'da Power 4 Lichtcoooaov, .=Rc tooket No. fkys-'9 et al. (pease fl. As s atad at"page 16 of M=. Gardner 's prepared testimony and elaborated. on

hereafbe 9 AMr ~ Gardner fmplied that —while not providing

14-3

wheeling —FPaf. h'tor'caLly did "regula ly and customa"'Ly'uypower from one utiLity and resell i z another with a "net

effect ... identicaL to the t=ansaction we «today calL wheeling

sewice." (Gardner prepared testimony, at }6) Nr. Gardner

characterised the service as a "d'splacement type service (

455). Xn regard ~ this clam. Cities rate

(a) Kr. Gardnec's te'stony Mt such activity was

'regularly and customarily'ngaged in by PPaL was based on hear-

say (T . 438) and unsupported by Nz. Gardner on the me i s (T".

432, 440) and con:erned t=ansmission policy and prac ices in a

period which )( ~ Gardner had rat sought to investigate (Tr. 428;

432-434) and was generally unfamiliar with (T". 427-28; 432) t

(b) H". Gardne 's claim «that prior policy represented

the provision of 'displacement'ervice is contrary to the state-ment in the Hay 23, L975 Letters referred to above and

(c) if correc«'y stated by Mr. Gardner, PaL's historicpolicv of insisting on capturing all sales for itsel would be a

further anticcmpetitive practice independent of its policy of

refusing to wheel.

7. Znternal ."-PaT documents,relating to FPaZ's L972-73 nego-

tiations with homestead. These include

(a) An October 23, l973 memorandum to file from "MW"

re: ELectric Service to City of Homestead (see page 4 where LLW

asks if cPaL could t=ansport) (209L40);

(b) a one page undated handwritten ~te from ~M to

Lph" smti.ng 'I agree wi h Berry on SR Pate it wi'L get us o

the hook and dead center —also away from the wheeling problem"

(240393):

(c) a two page September 21, 1973 memorandum initialedWLX and titled "City o Somestead" (290L95); question no. 7 sta~~ "When we meet, if they (Homestead) pose the question "eyeball

to eyeball" chat they want to build a tie to the Keys (sic) and

PPE, ~heeled the power —what would be our answer? "Well —we

have neve" done this before, but let's talk about it —how muchmHWv-~ Ieq~a.power and 'm where2'see also o ";~J

(d) a one page memorandum dated August 20, l973 and

initialed "WFZ" (26L982); memorandum states "We should keep in

— CL69-

14 4

'II

mind the ooss&" ' af transmission difficulties in wheelirg

powe" as the cou=t has stated an investor-awned utMity cannot bc

forced to wheel az sell pave to the dct=iment of its ovn custo-

ms s and awn system.

(e) a one page handwzittcn memorandum (na date) ~ author

unidentified stating, inter alia, 'We will not wheel pave'r ve

vill however provided the interchange is built and in operationN

attcmat ta purchase power Mm other utilities and in turn selL

you paver prov'dirg our t"ans. facilities are adecuate, but ve

cannot wheel (209145) >

(f) An October 5, 1973 FP&L memorandum rcs James J.

Bc~' letter to F.E. Autrey Dated October 2, 1973 General

Camment. As stated at page 3i 'It is our belief that if we

refuse ta selL the City af Pomestead Firm Power they viLL 'immc-

diately request us to wheel from other Municipalities. If we

encourage them ta inczcase their generation where we can purchase

powe from them, we may offset the demand far wheeling as wcU. as

avoid a long-tezm Firm power cammi~ent.'261980)

8. FP&L's position in Floz'da power & Li ht Comoanvg FM,Docket No. E-8008. As stated at page 17 of Fp&L's February 24,

1975 Brief Opposing Exceptions, "Ehc proposed interchange

cont act presented by New Smyrna Beach in Exhibit 77 ... contains

a s"hedulc providing foz wheeling service fram FP&L to it, vhich

the Company opposes Fp&L does nat provide wheeling service for

any municipality, rural elect ic coops ative or investor-ovnedu"ility. "

FP&L's policy af refusing to wheel existed during a period in

which requests far wheeling were made of FP&L. Evidence of such

requests iralude

1. Lake Worth's efforts to obtain a wheeling commitment as

part of. a proposed interchange agreement with Fp&L. See

(a) Novembez 6, 1970 letter from Ever" A. Young

(Reynolds, Smith & Hills) to Utilities Authority re C'ty of Lake

worth, Florida: Interconnection with ."-p&L company (zeccmmending

that thc Lake worth/FP&L interconnection agreement should pro-d lav'de a~ wheeling arzargcment whereby Lake Worth could buy from

OZ Sell ta SOme paver SyStemS Othe than FP&L Ca., but uSe the

— CL70-

14-5

FPaL Co. lines to t=ansmit «he energy";

(b) November 27, 1970 letter from C.C. Blaisdell, Jr. to

J.C. Breedlove, Jr., Division Manager FPaL re oroposed intercon-

nection agreement (231788);

(c) February 17, 1971 memorandum to files by J.L.

Br eedlove, suora;

(d) November 4, 1971 letter from John B. Waddell,

Attorney (Lake. Worth Utilities Authority) to U.S. Department of

Justice re Hut"hinson Island Unit No. 2 ("Applicant has not been

willing to discuss wheeling power in the proposed interconnection

agreement. There are two municipal elec ic systems (Vero Beach,

Florida and Ft. Pie co< Florida) wi.thin 85 miles of our system

and it is possible that, power could be exchanged between our

system and theirs if applicant would allow transmission through

its sys'erna "

2. ~ Documents related to Homestead's 1972-1973 wheeling'equests,including (in addition to «those c'ted above) ~

(a) Jan. 16, 1972 letter ~m J.J. 'Be'rry to H. Frank

Thompson res Interconnection - Cities of Key West and Homestead

(2 A721) J

e

(b) An August 31, 1972 memorandum to Mr. E.A. Adomat

(271263) and a September 12, 1972 one page FPRL memorandum to

file from Frank Thompson Re: Displacement of Power Request

(290181) ("Ken called me and said he agreed with my opposition to

this proposal and suggested that we delay giving@ any answer to

Jim Berry or to the City of Homestead as loay as possible. We

have had similar requests in the past, and are fearful that the

Federal Power Commission may rule in the future that we must par-

ticipate in this type of scheme We are, however, going to hold

up just as long as possible.") g

(c) a December 19, X972 handwritten one page memorandum

(transmit ing attached information) from Frank Thompson to

"Angie" re: the Ci"y of Homestead Displacement of Power

( Wheeling" ) request (271261);

(d) A February 14, 1973 FPaL memorandum to file by

Frank .hompson Re: Interchange: C'y of Homestead (221980);

(e) An August 16, ).972 letter from James J. Be~

Execu ive Vice Presideat, Smith 6 Gillespie Engineers, Ice.

H. P ank Thompson, Dist ict Manager ."-PGL re: Interconnection

(270721); and

(f) Homestead, like Lake North aad New Smyrna Beach

proposed a t=ansmission s:hedule (Schedule P) as part of i s

interchaage agreement with FpaL. See Oct. 11, 1973 Draf"

Contract for Zntesconnection ma"ked 'Jim Berry version'200640)(contains Schedule F —"Power Transmission Interchange Elec«»ic

Interchange Service" ) and compare with "Contract for Interchange

Service Between FpaL and City of Homestead, Florida" marked "as

submitted to Homestead (200676)

3. The Oc~er 31, 1977 letter from C.C. Blaisdell, Jr. to

Mr. R L. Taylor, Manager, Systems Ooeration, PPaL (Aug. 9

Memorandum, Document 26).

4. At an Ap 11 9, 1976 meet'g with Pt. Pierce, Pt. Pier"-e

representatives t=ied unsuccessfully to get, a wheeling ccmmitmeat

from PPRK,. (Minutes of a Special. Meet'ng of the E.P.U.A.) ~

5. Dec. 22, 1976 letter from J.P. Smith to Harry C. Luf;..- (seek'ng coa irmat'on of vmhal understanding); Dec. 30, 1976

let e» from Luff to Sm'ith (confirming) ~

6. Repeated requests for wheeliag services made in connec-

tion with New Smy na Beach interconnection negotiations with

FPSL ~ See

(a) September 14, 1973 letter from Rober" A. Jablon,

Esq. to Ralph Mulhollaad (Docket No. E-8008) t=ansmitting pro-

posed iaeerchange coat act providing, inter alia, fortransmission service<

(b) Oct. 10, 1973 letter from Mulholland to Robert

Jablon (130748) enclosing interconnection proposed agreement;

(c) October 16, 1973 letter from Robert A. Jablon> Esq.

to Mu'holland; explainiag that New Smyrna Beach is seeking

transmission service, ~hich is aot provided for in FPSL's

response (243804);

(d) December 14, 1973 Robert A. Jablon/MulhoU.and

letter re: New Smyrna Beach: Negotiations for PatallelInterconaectioa aad Znterchsage Agreemea (243806); encloses

Docket No. E-8008 testimony iaclud'ng prooosed interchange

— Q.72—

14-7

agreement with t=ansmission schedule.

(e) January 25, 1974 Robert Bathen/Jack E. Ha@hews, Jr.letter transmi ting Qainesville/Florida Power Corp. " ansmission

schedule and proposed schedule for New Smyrna Beach/FPaL;

(f) December 20, 1974 letter f=om George Spiegel, Esq-

to Narshall NcDonald re: New Smy.na Beach, Florida: interconnec-

tion proposaLs aLternative to FPaL acquisition ( New Smyrna

requests an agreement concerning the t=ansmission of po~er both

fmm sources like St. Lucie in the FP&L system, or from other

interconnected elec -ic utilities.... Alternatively, New Smyrna

recues s that ?PAL file with the FPC a tariff rate for

t ansmission service in the orm o Schedule ? on Exhibit 77.

This clearly parallels the t=ansmission tariff which FPC has

filed at the FPC.')

(g) January 7, 1975 George Spiegel/HulholLand rec New

Smyrna Beach, Floridac ~ asking for the specifics of any

transmission proposal FPL would make. New Smy.na ~ach's request

for wheeling was also specifically stated at a January 24, 1974

meeting at ?PAL offices.7. In Sept. L973, Gainesville met with FPaL as recorded in

a Qainesville memorandum,,In answer to a statement regard theIh+I ~CDpossible future ~~hag», purpose> sale or wheeling of power,

the FPLC Staff present stated'hat they coul t make any state-ment of policy or commitment regarding these items." (Hemorandum

from Charles K. Illingworth to file, Sept,. 6, 1973).

In addition to denying wheeling requests made by plaintiffs~?PAL denied requests made by other municipal systems. Evidence

of this includes:

L. Documents relating to ?PAL's L971 denial of wheeling forJacksonville. See February 26, 1971 Letter of H.W. Page, Nanager

POwer Supply ?PAL tO Nr. J.K. Wiley, DireCtOr, Engineering

Jacksonville Electric Authority (s acing FPaL is stronglyopposed" to wheeling) (251726);

2. Narch 13, 1971 memorandum from B.C. Luf to C.H. Stanton

re: Bulk SaLes Summer of 1971 ("Indications are tha futures'gnificant bulk sales will not be made with F?aL, nor will there

be any chance to seLL to J ~ E A through.?PAL );

— C173—

14-6

3 ~ October 26, 1971 let er ~om C-H. Stanton to U.S.

Department of Just'ce re FPt Hutchinson Island Unit No. 2

Coordination of planned expansion ofgenerating capacity with generating utiLitiesof similar si=e to which the Commission is notdirectly interconnected has not been possibledue to failu"e of the directly interconnectedutilities to agree on reasonable wheeling orresale arrangements. A direct request forassistance was received by the Commission inJanuary 1971 f om the JacksonviLle ELect icAuthority. This request involved possiblepurchase of Commission excess system capacityfor several midsummer months in 1971. JEA andthe Commission were hopeful that arrangementscould be made for this exchange by use of amultilateraL agreement involving JEA, FPaLand the Commission. FPaL did not ag ee tosuch an arrangement.

Documents related to Vero Beach's spring, 1976 wheeling

request including

(a) May 12, 1976 two page memorandum to FpaL files f"om

W.E. Coe re: Vero'each Economy Interchange Meeting of May ll,1976 (100340) and

(b) two page June 2S, 1976 "JKD'emorandum titled"FPaL's response to "refusal to wheel for Vero Beach." (100295);.

5. Vero Beach letters to Department of Justice 'ee(a) October 26, 1971 letter from Kenneth Morgan,

Director Vero Beach Utilities to U.S. Department of Justice reHutchinson XsLand Unit No. 2

Direc tor

'3. The applicant controls most of the highvoltage transmission in an area

We believe that complete membership inthe Florida Grid System, as to coordinating,wheeling power, planning outages, expansion,overhauls, etc. ~ould afford us the flexibi-lity needed in cbtaining bulk power fromalternative sources and also coordinatingplanned expansion of gene ation."(b) February 2, L973 letter from Kenneth W. Morgan,

of U ilities Vero Beach to U.S. Department of Justice re

St. Lucie Unit No. 2

'We continue to be interested in jointownership with the applicant of the proposedSt. Lucie Plant, Unit (formerly HutchinsonZsland), as an alternative arrangement, theunit power purchased from said unit

'Perhaps the Florida Operating Group willsettLe the issue of wheeling power; however,at this ~e, it is practical only on'anemergency basis and by contract wf.th he ad)a-cent system. Wi h the exception of the Ft.Pierce 'e, FPSL Company con -ols all of thehigh voLtage transmission in ou area."

— C174—

L4-9

6. The January 27, '971 Let er from J.K. Wiley, Director of

Fngineer ing JZA to Mr. H.W. Page (272381) re:< meet'nq on inter-I

connected cperat'ons, attaching rough draft of 'an agreement we

propose concerning the t"ansmitting of cower through ou sys-

tems, and asking for earLy consideration of the proposal.

September 10, 1969 memorandum from M.F. Hebb, Jr.(Florida Power Corporation) to Mr. A.P. Perex (Florida Power

Corporation) re: OUC Discussion with Mr. Harry Lu f September

10, 1969. (PC-1001) ~ 'Mr. Luff will pLan to pursue coord'nat'onI

with JcA, reccgniciag that he is opening Pandora's box with

respect to the wheeLing program with FPaL and us< this is the

second or third ~e this point has come up."

8. July 22, L'970 memorandum ~m Clyde Hooch, Connell

Associates Inc. re Discussion with Ci.ty Electric System in.Key

Hest (209973) (Key Hest engineers, R N. Beck, proposed wheeling

to cooperative engineers; I advised Mr. Porter that the

agreement with FPaI. Co. prohibits wheeling and that the system's

capability would nest permit any appreciablet"ensfer.'n

addition, Ci ies note that wheeling is an inextricable

component of Cities'cuests for coordinating measures related

to bulk power supply planning of large male economic aLter-

natives, coordination and pooling- FPaI 's resistance to these

measures, as stated in response to interrogatory LS, implies a

resistance to the provision of t ansmission service. Cities spe-

cifically note that FPaI has Long known that Cities viewed iccess

to transmission as central to pooLing. See ~.cC., June 2< 1966

Speech by Robert E. Bathen entitled "Florida Municipal Power

Pool: A Must or Yankee Dixie and July 11, 1967 letter from R.J.

Clapp, President. Florida Power Corporation to Messrs. 'Fischer S.

Black, Bobert H. Fite and Clyde A. LLLLy, Jr.In addition to the resistacae to r"ansmission service implied

in FPai's resistaree to centralised dispatch and integrated

cooling, Cities tate FPQ 's resistance to wheeling in connection

with other forms of coordinat'on. In addition to the evidence ofthis noted above,

1. FPaL has sought to eliminate the possibility that Citieswould benefit f om uni orm interconnection arrangements that have

C175—

14-10

been negot'ated among FPaL, TECO, and Florida Power Cor."oration.

As dccumenss show, FPSL un',ateraLLy resisted an interconnection

orovision that would have provided or third oarty interchanges.

See Testimony of Robe E. Bathen, ER78-19 et. al. (Phase 2),691; documents attached to Bathen testimony as REB-BD) memorandum

from E.L. Bivans to E.A. Adomat (February 11, 1976); memorandum

from E-L. Bivans to K.S. Buchanan (December 5, 19/5).

2. FPaL sought to prec3.ude municipal access.to wheeLing

connection with a proposed interconnection to Georgia. See;

(a) February 19, L974 letter from E. Bivans to Ken

WiLey of JZA, transmittinq February 12, 1974 dra t "500 Kv

Florida Cperatinq Agreement Sugqested Wording';

(b) March 11, 1974 Bivans letter to J.K. Wiley;

(c) February 27, 1974 Wiley/Bivans et a3.. Letter and;

(d) April 16, 1974 Bivans/McDonald memorandum.

3. Bomestead and other cities repeatedly recuested that

FpaL file a general ansmission tariff and agree to improved

terms and conditions with regard to r=ansmissian. Examples forthe C'ty of Homes ead follow:

(a) (i) Letter rom henry C. Peters, Jr. to Rober J.

Gardner, February 8, 1978 ("Proposed Transmission Agreement" ),requesting "generally available pub3.ished tariff"i

(ii) "Joint T"ansmission Wheeling TarifApplicab).e to and Available for All,Bulk Power Transactions

across the State's Integrated T ansmission System" )

(iii) exclusion of the cost of those "-ansmission))facilities assoc~mted with providing reliabilityj

(iv) "Average Transmission System Losses", elimi-nation of rat"het and improved pricing;

(v) elimination of "if and when avaiLab3.e'nd

'sole discret'on" language)

(vi) elimination of FPaL's taking and retaining

title to the. po~er and energy)

(vii) longer term and, other comments.

(b) "Memorandum for the Record", James J. Ber~, March,

1, 1978

(c) Letter from James J. Berry to R. J. Gardner, March

— C17()

14-11

!

2, 1978 "SaC Le=.er of December 9, 1977)'egotiations between the)C'ty of Homestead and Florida Powe a Light Company File No.

7002-33.

(d) Lette" from Rcbe J. Gardner to James J. Be~June 2, 1978 ("Now your attorney has intervened, protesting ratonly the rates, but 'generaL conditions of service' That alsois sat what Z would call good faith negotiations.'t responding to

let er from James J. Be~ to J:K. DanieL, Nay 19, 1978; Lettefrom James J. Be~ to R.J. Qardner, June 29, 197&, responding toJune 2, 1978 letter ("With regard to t"ansmission matters, we

have indicated that FP8L should file a transmission tariffg

including making provision for a 'joint" rate. Through thislettet we reiterate this recues . When we told you to file a

rate without our signature, we believed that'FPaL was fullyplaced on notice that Homestead planned to protest such filing/including the terms and conditions. Me protest as to terms con-

tinue to be general.

(e) Letter f"om H. C. Peters, Jr. to'Nr. Bobert«

Qardner, January,&, 1979 ("The City of Homestead does not agree

with all the terms and conditions contained in said Amendment butis in urgent need of the implementation'of a transmission serviceagreement .. ~ ")

4. FPaL and Florida Power sought to avoid thi d partyinterconnections. ~E.., letter from W.J. Clapp to R.H. Fite,November 1; 1963 (PL-1242)g letter from R.H. Pi e to W.J. Clappg

November 13, 1963 (PL-1243) ~

S.. See also answer «to inte~gatory 15, re FPaL resis ance

to coordination/transmission proposals by other members of the

Florida Cperating Committee.

Xn or about 1977 FPaL ceased its blanket refusals to wheel.

But see let er f=om C.C. Blaisdell, Jr. to R.L. Taylor (Cct. 31,1977. ) While i raw provides some wheeling, it continues tore use to provide essent'al wheeling services requested by Citiesand, insofar as it does wheel, its wheeling p actices are charac-terized by unreasonable delay and price. Specifically:

Since at least 1974 FPaL has continuaLly refused express and

repeated reques-s that FPaL file a general transmission tariff.

- Cl77-

14-12

Evidence of the requests and the zefusaLs includesf

l. Communications regarding FpaL's negotiations wi 5 New

Smy.na Beach. As stated at page 8 of a January 9, 1975 letterfrom Nr. R C. iWLholland to George Spiege'in response

December 20, 1974 letter requesting tarif ) 'FPaL is rat prepared

to hold itself out as a common caz ier of elect icity and there

fore does tat intend to f''e a genera13y applicable tariff foz

the services. Bowevez 'FPaL w~ consider any specific request:

for transmission service.'221586) Zn subsequent negotiat'ons

with FPSL, relating to wheeling of M-3 power, New Smyzna Beach

continuaLly requested a general tari f. See testimony of Robert

E. Bathen Florida Power 4 Lioht Company, FERC Docket No. ER77-

175 at T". 458. See, also Decembe 2, 1976 letter from B.W. Wait

ZZZ to R.G. Hulholland, enclosing New Smyzna Beach's proposed

transmission rates and terms (204425).

2. On November 16, 1976, R.J. Gardnez wrote to Ha~ Luf

in response to the t"ansmission question. The letter states:"We have repeatedly stated in these and other meetingsthat i» any utility tequi es out'.ansmission faci3,ities'to zeceive his share of power f"om any joint pzojedt weagree on, we will negotiate a t"ansmission serviceagreement with that utility for'hat power.... [W)ewere asked why we would rut agree to a general whee3.ingtar'. The answer is that we feel that individuallynegotiated transmission service contracts are the mostecuitable kind of arrangement in that they can compre-hensively reflect all of the conditions and particularcizcumstances ~t.each party finds himself in. ~ ~"

I3. Communications relating to FPaL's negotiations with Ft.

Pierce. See Ju3.y 6, 1977 memorandum to file by E. Menge ze:

meeting with Bob Cardner, July 6, 1977'pril 9, 1976 JRD

memorandum to file ze: April 8 meeting in Ft. Pierce. Me

memorandum states, inter alia, "Zt was explained that FP&L does

not presently have genezal transmission tariffs nor do we antici-pate them in the near future." (262186) See also April 6, 1976

letter from Walter Baldwin to R.C. Hulholland requesting wheeling

to establish alternatives to a sale of the system (262'89).

4. FP6L's position taken in 3.itigation. Zn Litigationrelating to FPaL's proposed transmission ".ates members of the

Cities g oup have continua'13.y proposed a general transmission

'tariff, which FPaL has continuaI.ly opposed. (See, e.a.,

C178—

14-13

(a) testimony of Robert E. Bathen in Florida Power 6

Licht Comoanv, FMC Cocket Nos. ER77-175 and ER78-).9, et al. ~

(b) bz'efs of Ci ies in these dcckets;

(c) briefs of PaL in Docket No. ER77-175; and

(d) the examination of FP6L in these dockets, mos"

recently in Florida Power a Light Company, Docket No. ER78 19 et

al. (?hase XZ) at T". 307-309, 353>

(e) FPaL's apolication for rehearing in Docket No.

ER78-19 et al. (Phase ZX), opposing the order to file a

transmission tari f.since at least 1975 FpsL has continually refused

cities'epeated

requests for a joint transmission rate. Evidence of

requests and refusals includes

l. The June 26, 1975 letter of George Soiegel to R.G.

Mul'ho1.land Re: T"anmission of Capacity from FPaL CR No. 3 Qnitithe April 21, 1976 letter from Robert E. Bathen to J.K. Daniel

Re: Agzeement to Provide Transmission Service between FPaL and

the Utilities Commission of New Smyrna Beach (204363).

Testimony and Pleadings in Florida Po~er & Licht Comnan2 ~

FERC Docket Nos. ER77-175 and ER78-19 et al. See in particular(a) testimony of Robert E. Bathen (on behalf of a joint

rate) in both proceedings;

(b) testimony of Lloyd L. 8113.iams (opoosed to a jointrate) in both proceedings;

(c)

R.J. Gardner (

and, the most recent policy testimony of FPaL's

opoosed to a joint rate) at Florida power a Li ht~cornea, pskc hoakst sos. Ekps-19 st al. (phase 3 ), . 303-

309.

3. Letter and requests f=om vazious cities: ~.cc., June,21,

1978 letter rcm C.C. Blaisdell, Jr. to J.K. Daniel; Feh ~ 8, 1978

letter rom Benry C. Peters Jz ~ to Robert J. Gazdnez; June 29,

1978 letter Cm James Berry to R.G. Gazdner.

Insofar as FPaL has provided transmission service, it has

refused to func ionali e the cost of se~ice. Thus it has

refused a provide a rate that reflects the true cos- of .(a) non-

firm service and (b) sezvice foz which FPaL does not insure

generation reliab'lity. This refusal «a functionali e may be

14 14

provide the service asked for) or a price squeeze (i.e., the

requirement that. C'ties pay for services not rendered) or 'full1'ne'or ing (i.e., the insistance tht C'ties take services not

I

needed) ~ "-vidence of Cities'eques s for Cunct'onalization and

-P&L' refusal of these requests include:

1. Documents and communications relating to the nego-

tiations of Transmission Service Agreements between F?&L and

Cities show Cities repeated requests for functionalization. See,

~e ~ ~ p

(a) January 5> 1976 memorandum from T acy Danese to

Lloyd L- Williams Res Crystal River Transmission Rate (ER77-1,75>

Vol. VZ) which refers to "conversations which we had with Bob

Bathen wherein he wanted to make us consider ocr transmission

cost on a functional basis."

(b) 'Appendix ZZ A Statement of Principles Governing

Transmission Service'204320). Page =7 of this documen which

bears a September 15, 1975" receipt date by Fp&L (it was'

obtained f=om cP&L in discovery), "elates to the development of a

charge or

non-firn

transmission;

(c) the December 2, 1976 Wait/Mulhoxland letterreferred to aboveg

2. Pleadi~, exhibits and testimony in Florida Power &

Licht Comoanv, FERC Docket Nos. ER77-175 and ER78-19 et al.See, in particular ~~

(a) testimony, exhibi s and affidavits of Cities wit-ness Messrs. Bathen and Linxwiler in (both dockets) on behal of

the ratesg

(b) testimony of Mess. s. William, Morton and Bivans

(opposing the rates);

(c) testimony of Staf witness Zero in ER78-19 (Phase'Z)

(proposing a non-fi~ rate) ~

(d) testimony of R.J. Gardner in ER78-19 (Phase ZZ) at

Tr. 518 (a non-'firn ra e is rat appropriate).

(e) testimony of E. Tammy in Docket No. ER78-19 et~1.( unctionalization is an accepted ratemaking method);

—Cl80—

14-15

( ) Apr'1 26, 1976 memorandum from K.S. Buchanan

J. K. Daniel (242312).

FPaL has continually refused Cities'ecuests for access

FPaL's transmission facilit'es through investment in the facili-ties. Bxamples of requests and cont'nued refusals include:

Communications and requests in the context. of TSA"

negotiations. See, for example

(a) April 21, 3.976 Bathen/Daniel let er sugges"'nginvestment (204363);

(b) April 26, 1976 Coe/Daniel memorandum re: Bathen's

April 23., 1976 letter; recommending that FPaL ignore Bathen'sconcerns about poo3.ing and t=ansmission investment (204372) g

2. November 20, 1974 Ben Fuqua/John R. Kelly 3.etter Re:

January 3.3, 1974 Kelly/Mulholland letter stating "Your item 5

suggests that New Smyrna Beach would invest in Mansmission faci-lities raw owned by FPaL We do rat construe the St. Lucie Unit2 license conditions as recuiring that FPL in effect sell a por-t'on of its ex'isting transmission system, and we are not at ~his

e wi13.ing to do so.

C'ties note that most recently, Nr. R J. Gardner, in tes 1-mony in Florida Power a Li ht Company, %78-19 et al. (Phase ZZ)

has indicated t!mt FPaL has no policy on investment in its faci-3.itics.

Znsofar as FPaL has provided transmission under itsT"ansmission Service Agreement TSAS," Cities contend that FP6L's

failure to provide 'or t"ansmission under tar'ff has caused

unreasonable delay and discrimination ih the provision of such

service. As evidence of this, Cities cite:l. Exhibit Z to the prepared rebuttal testimony of R.J.

Gardner in ER78-19 (Phase ZZ). (The exhibit shows up to two

months and more ~m request for serv'ce to effective date,causing loss of opportunities 'or exchanges unde. the procosed

agreement. )

Finally, Cities contend that (in the period in which FPCL

would t=ansmit at all) FPaL'has unreasonab3.y delayed the provi-sion of t ansmission services as evidenced by the following:

1. FPaL has failed to give reasonable s"rutiny to Cities'

C181-

"ecuest for t=ansmission service. See FPaL's la e 1979 testi-mony, in Docket No. ER78-19 (Phase Z=) t.mt:

(a) it had neve performed a wri en study ofCit'es'eneral

cariff proposal (Tr. 293 and 519),

(b) it had rat done a study of transmission policy (T=.

320-24 g 642 );(c) whQe Nr. Qardner testified FPaL could mt provide

tariff service because of the need to study wheeling t=ansac

tions, the system planning department evidently had mt under-

taken any such study. See e.cC., T ~ 739.

(d) and see similar testimony by FPaL witnesses

Williams, Bivans, and Tammy in Docket No. M77-175 (as cited inCities'rief);

Cities note that the deficiercies of FPSL's analyses .(i.e.,lack thereof) wilL be urther detailed in their Larch 3, 1979

Brief in ER78»19 (Phase ZZ) > a copy of which will be forwarded.

4. FPaL acted to block development of a resource recovery

facility in The Fort Lauderdale-Broward County which would have

provided power. to municipal utilites throughout the state of

Florida.Titan Indust ies was a corporation one of whose pu~ses was

organising, financing and operating resource recovery facili ies

in various parts of the country- Titan selected the Ft.

Lauderdale-Broward County area as a likely site or a plant and

proceeded to contact municipal and county governments in Broward

County, securing resolutions f"om many of them which commi.tted

their solid was e,streams to a Titan facQity. I constructed,

this waste would then have been burned in a boiler bs produce

steam to generate elect=ical energy.

The facility was to be located at Por Everglades, approxima-

eely one mile from a generation station of FPaL. Titan planned to

interconnect with FPaL and thus distribute output to othe" utili-ties by wheeling ove" FPQL lines.

Titan approached the City o Gainesville, recuesting that the

city express interest in the output of the proposed facili y.

This the city did in a letter of intent on Sept. 1, 1976 from

Stan'ey L'vengood to A. Dean Tomlinson of Titan. The burden was

14-17

on T'tan a develop the a ange@ants to wheel cower frcn Broward

I'ountvto the Ci~jo

Livengood, calinson and Barry Wright of Seminole Cooperative

net with Ralph SxlhoU.and and other ":PRL representatives to

d'scuss such ar angeraents- FPaL's position was as follows:

1. FP&L would rat agree to interconnecting with the .itanfacility except on the cond't'on that FPaL had ownership and

title to the r Wine generator that would produce electricity as

well as all elec icity that night be gene ated.

2 ~ FPaL would not put up any front noney to finance

construct'on of the carbine generator they would clam ownersh'p

I

The option of Titan owning the turbine generator and inter-connecting with FpaL was rejected by FpaL. The question of

whether the energy produced under FPaL's terms-would be available

for sale to other utilities was not di"ectly addressed but it was

Livengood's understandirg that such energy would be absorbed intothe FPaL sys en. The project was effectively killed.

On infomation and belief, similar rest"ic iona were insisted

upon by FpaL in connection with a Dade County waste recovery pro-

ject.

C183—

A Fi'apori Po /heSmSia~ OP~,~Arms COuui« ~=-

5'OF A IA'8 CP.OUPPTepCll 24

Power Pccifng Tcrsi rare

— Cl84-

Qpil/~

C3RLANC3C3 LAIL!ilEHt C3MMlGStON544 SQL'TH CRANKLE AV6HU ~ P. Q. BCX 3184 ~ QRLAiCQQ. FLQRlCA QZ842 ~ 348/'941-1ZQ4

Zebra=g 29, 1975

Ta: <Me"s af" ~ Ope=aMg Cow~" ee

Can&enm

"-"cwseC yau w~11 fM~" caz=ec~e6 pages ~w ~e~~ ia vau=capv o ""e PaaU"q Task Zc=ces'ego

Yes of the changes a"e Q~ ta-'2L B n2.tume anc'.v LL"2~2 r~ 2~~1~t'on.'a m, C anC D of the @ed~"'on a"c'-.2«ts '" aM~ "~e T281R Pood. 2nd ~c Pca1 wQ 8 de3.8t 4"v ""e C-e"2. '-q Cc~~='ee a im La'cek~ xe t'=q.X~ ""e=e 2 ~x~"e q:estrous cancm'"g "geese ~4qes

ak~se eel f- e ta caM aa oz ane.of t"e a&~ task anceML e so

Sm~ca e'v yau=s,

X~ "qReed'Sask=a=ac Cha,~an

~ ost =Rs

c p'es ~» ~

'4g»4~ ~

M»~»1» 4

4~ 0'4C»~» 0

K. S.~ ~P»4Ai Re0 ~

Z. CA4~e4 Ro

Buc~?»W

"-ozark»nc

— C185—

~~ C.~Y~ HEElRY T. MENE%

yes, aM'cns ~ CeLat'cns ia the repo ent'"~ed, "A =-Lcri,Pa=-'ec=.c Pcwe PccL" ~ssveg hv qe Powe» Pco''"g Task:-o ce to theWo=k'"q C~t e '" Qec "e" of 'L974.

Page L-2: Cc=ecmd the '"s wo~ m &e 'ast L~».e of ""esecond pa=amaph to "a" ".

Page 5-2:

Page S 3-

+age S ac

SM.L Pa~'c'=a.-."

QeLet 6: (c) Wh'ch owm ~ cont=oLs t~sa~ss9.onfac~Li"'es operas 6 at 69 EV or h'@her

. fozai g an. ~tag aL pa"t of. the hu'k,power fac' ''s; anP,

(8) tMch ooe a s or pa~'c""atesthe ope" "~cn o= a 24-hour Uspatchcenter w~ th a e~. ~ on the c~a.-Mcat'on- net~=a connect t™eP~c~ pants e

LMk'ooL =@cont've Ccnu"'tt e

Pa ~c2.pan% to 2art< es" ~~ the f~ -sUse of the ='" oa" graph.

Charged "Pa~' pa"t" to "Pa y" M the i "s<Me of the secon6 pa" g=aph.

L' PooL Oaerat' Co~t ee

Iase~M. "=-ach Assoc'ate Pa~'c-'an anydes'gnate a eprese" at've as anon-vot"'q aeahe c the Ope z"'-cCamped.t

Page S-X3:

~age -"-'

SC2. ~,

C2

~~c~ 'Hant

QeketeC: (c) Shit c'~w aa6 con"mLs "- .sa's-s'on ac'Lkt's o e ted at 69 ZV ohigher lcm-'"g a i"t~ aL

Qa~i ci wa~ke o

QeLete6= ca= cf'"e '=abc -ower Sac='''~-es.

(g) ~men ooe~ ~~s cw ma~4 a4 «ai~s 4 ea

cen~~» w~ ~ a ~~~ aL cr the cocoon~&ca ons work co c ™g,

— C186-

'~-yes, add'"='cns a"4 Be1 t'cns 'z the = part ent'Wed, "A Plrcida=~ec=-'c Pcwe Pcol issue6 hy the Power Pco1'".c T sk Porc tc theWc=2'"g C='" ee ~ Decker o~ 3.974.

Page 9-3.4: SC3 'few Pccl =we~„'ve Ccmm'ttee

Page 5 1.8i

Chang~ Pa 'ipants tc "Pa~~ esnZ~ "st Lira o8 M ='st 'a aq aph..

Changers ~ar~zc~aan"" tc ">a+" e thee o t"e second. -.-a=aq=aph.

5CS 'Ream Pool Qcerat'ac'ommit ee

Tuse~ 8: -h Assoc'e Pa~'c pant maydesi~t a re resent ~v as anon-votinq member of "Ne Qpe"atinComm'me. "

age 9-63:~'

Plann'"e and =-ne'~ee '~c Ccmm' ee

De1eteC:

~ ~

'Z~ the Ccami"we has se ious dis-agreement cn. ~y mat er, then thatmatt= sha3.1 he refer=e4 "c ~~e~~ecu~Mve Ccmm' ee "cr. resc1ut cn."

VX Cae~ ' Ccmm't ee.

De1eteC: "ZZ the Ccmm'"ae has se ious Cis-aqmemeC cn any mat~~~,mater sha11 he re~e=ed. tc the

eczzt~ve Ccmm~ ~me fcr eso1u'cn.'age

5-67- +T'+>cnmenta 1 Cc~i t+oo

Dekete6: "=~ the Ccmm'ttee has se 'cus May=cement on any mat e, then ~tmat~ sha'' he re" ed tc ~>eMc Ave C"mm'tt e "o

reso'u"~cn.'IL>

E,ec~ s'at='ve C~~ «De> etec «2< ~~> C~t~~ +~ se cus

aq-cement cn. anv ma-=er, ""en "".z"

ecu~~ve C mm'~. c esc~" c~

0 4~ NaI sii~ie I ~~4 4 4.oaP ~Q l s C%4aQ»

De1 etc~: the C '" e has se ='cus d's-ag 'men cn any ma==~r, "'"enmat st~ he re=a=a> "- "".eExec" ve CMt -- -+ 'Rsc "«cn ~

— C187—

Oecember 1~, 1.97~

Nr. J. K. Burr f s, Chai rmanFlorida Operating 'omm.f tteeBarking GroupTampa Electric CampanyPost 0"fice Bax 111Tampa,'lorida 33601

Oear Ar. bsrrfs:The Task Farce whfch ycu appafnted ta investigate all.

aspec s af .electric Power Pooling in Peninsula Florida hascompiled the attached report.

The Task For'ce has researched the'oncepts af formal .

'power p'oals and believes that additional benefits to electricutilities'in Florida exfst. Oue ta the camplex natu< af thesubject and the absence of funds for extensfve studies, theTask Farce could noh quantf y the. tatal benefits and/or val'uesta individual systems hat might be a party tc a formal electricpower pool.

For their valua.ble assistance on the Kconomfc Oispatch andUnit Commitment studfes necessary to complete this report, theTask Force wishes ta recognize the work af Gary Nagle and, StevenStein of Florida Power Corporation, Oon Moore and Tom washburnof Orlando Utflities Commission and Oon'enjamin o'he FloridaKlectrfc Pawer Cacrdfnatfng Group.

Respectfully submi tted,Power Pooling Task Force

K. S.T. H.'e

AeO.

C.

Buchanan, Florida Pcwer 5 Lfght CompanyFarrow, Tampa c.1ectric CompanyHarringtan,. Jacksanvf1 1 e Kl ectric Authari -yHornak, Florida Power Corporation4'Kngle, l.ake 'Aor h Utflities Au hcrity

ri if r ri ng Re ay, Qr anac~ti I > -i es Cammi ss i onTask Fa rcz Aha f rman

— C188—

0

TABL8 OF CONTFNTS

L - Summa ryZ. Power Pco1 f ng Concepts

,1

3. Types cf Power Pools

. A. Formal Power Pools

a. Corpor ate Poolb., Team Poc1c. l..ink Pool

8. Ln ormal Power Pools

C. . Generation Pools

Examples of Power Pools

A. New Ycr k Power Pcol

8. 'Upper Nissfssfppf Yalley Power Pool

Alternative Structures ci' Florida Electrfc,Power PoolA- introduction8. Lfnk Pool StructureC. Team Pool Structure0. Typical PcoIfng Agreements

6. Technf ca 1

8-.

L,ntrcduc ion

Opera fons

A ccmpar f son: Endf vfduaI System OispatohYersus Pccl Qf spatch

C. Planning

A comparison: fndivfduaI Sys"am [ns all dReserre Capacity Y . sus PocIEnstaIIed Reserve Capacf ty

7 ~ References

— C189—

9 E'CT ION

SUMMARY

Sfmple farms of pooling consisting of,intercannec edoperation fcr the puraase of sharing reserve generatingcapacity were practiced as early as: mid.1920. As mareinancfal and cperatianal advantages were rial f- d, these

intercannectfons grew into networ ks of high voltage trans-mission 'lines, reliability was improved 'and many differ'enttypes cf operating arrangements resul ted. Oependfng cn thetype of agre ment, Power Paols are broadly classfVfed as

>Farmal ar informal.

En a Formal Pcwer .Peal members are. contractually bound. ta the pool and ar classed as ef ther a Corporate Pool, a

Team Pool, ar. a Lfnk Pool . ln 1970, sixty percent of'henation's generating capacf ty was cantained in Formal Pools.

(a) A Corporate Paol is camprised of thecarparate affiliates of a. holding. companyand fs operated as a single system.

(b) A. Team Poc'I fs made up of corporately non- '

affiliated- systems. Planning and operationsare carri d cut as a fully in egrated systemunder the "one system" cancept.

(c) 'A Lfnk Pool is also made up of carpcratelynonaf iliat d systems. A multi-party poolagre ment provides ,ar caardfnated planningand operations and for interchange af capacityand energy on he basis af pool rate. schedulesfor which pravisfons are. made fn the poolagreement.

Informal Pool s are. sf mf Iar ta Link Pools but hav noformal mul ti-lateral paal agreement. 'Interchange rates forpower and energy are in accordance with bilateral agreementsbetween'ar"i ci pating sys tems.

In or der ta share the burden of ffnancing the developmentof large gener ting faci lities, twc or mar systoms sametimesjointly cans ruct'ower plants whfch suoply power ta the ownersa- at r cti se rates. While these are nc in he -rue sensepower pools, they ar~ sometimes referred a as Ceneratfcn Pools.

The organfz=tfon of a power pool;:=;Ioxibie and can bestruciured wf ih'n the ~iramework o» e~i." ': -. I:.",:s accordf ng tothe cfishes o- the m mbershfp. Two e.amp',a„= o', Formal powerpool organfzatfonaI str~ctures are in"I;";- .". this reporit is desired to ma';e he tran~ ion -r~.: an fn-.orma! poolio a formal poo,, h ~ link pool r „ufrei t.h: minimum additionalresource allocaifon o personne1 and money sfn"e almost allpool'Lunc ions ar'e per-,ormed by the staf= or member systems.The initial organiz -ion o. a team pool is more dfi icult fnthat f t r quires permanent personnel for ihe. pool. sheaf and theestablishment. oi a central dispatching center. A sampleagreement or a link type and a. team type pool fs fncluded in thfsrepori fn Section 5.

To give: some indication of the- magnitude of savings thatmight be realized by f'ormaI pool operation of all. systems inPenfnsula Florfda, a study was made o7 a typical on-peak andoff-peak day-which compared individually dispatch'ed generationcosts to the costs o7 a central or pool dispatched system. Itfs felt that sufffcfent restrafnts were employed to preventoverly opifmfstic results. Oue to budget limitations a modifiedEconomic Oispatch Program neglectfng transmission losses wasu fliz d and the results were favorably checked by a UnitCommitment Program. This study fndicaies thai a rueI savingscould be expected from. a properly executed central dispaich ofPeninsula Florida g neratfng unf ts. The results of ibis study

+are discussed fn the Technical Seciion.Dofnt pl'arming for the development oi'eneration 'and

transmission faciIf ties offers many advantages to the memberso= power pool. KI imination of dupl ication of er7ort in themany steps. necessary to obtain plant site certiffcatfon alongwith transmission aciliiies expansion efforts which show thaplanning is based on common system needs without regard toservice ar a should be viewed with favor by regulaioryauthori iies. The magnf tude o$ savings to be real i zed by largescale development of generation and transmissfon sysiems fsshown in Secti'on 6.

1-2 —C191—

SECTION Z

POMKR POOL[<'f6 CONC"-PTS

As technical advances in- the transmfssfon. of bulk el ectrfcalenergy were made during. Cne 1920's and 1930 "s, the concepts ofpo~er pooling were fostered by the realfzatfon a=,electricutilf ies that fntercannected .pcw r systems cauld pravide greater

'ervfcereliabflfty at a cost less than that af individualindependent systems.

In Che begfnnfng, power pooling consisted primarily ofmutual assistance arrangements which, together .with the growingability ta transmit hulk power over considerable .distances, madef. passible ar fntercannectea uti.lfties to share rase. ves. Thissharing reduced the burden of capf taI cast that the fndividualutilities had ta invest far the same degree of relfability. Aspow r pooling arrangements became generally accepted and Che numberc power pools grew, Che cancepts of power* pooling broadened Cainclude other ar'eas where cooperation and coordination proved Cabe economically beneficial.

Joint studies cf rorecasted short and long rance powerrequirements fcr large geagrapnical areas allowed utilities ta,coordinate er cr ts, in constructing bulk pawer transmission systemsChat provided greater benefits ta paol members at a lower

cast.'ransmission

systems planned and canstrucC d Co provide farthe flaw af hulk pawer fram one area ta another enabled poolmembers Ca coordinate the construction of generating facilities.Tnf s was acccmp1 f sned principal ly. by staggering power p I antconstruction cr hy the joint ownership of power generatingacili ties-. Sy staggering canstructfcn, a member ar a pcwer poolbuilds a generating facflfty with great r capacity Chan required .

ror its. own needs. The'augh prior agr ement, the building paalmember then sells excess capacf ty Ca other member systems for aspecf fied perfad of tf'me. The pracess fs repeated in turn by atherpool members. Under joint ownership agre ments, Cwa cr mcr e (or,an acc sfcn, the entire pooling body) jofntly constructs, operatesand owns a pawer plant. Karly agr ments provided rar individualawnershf'p cf a portion o the par icular facility, hut ihfs pi QYunwieldy ta admfnist r; the common 'practic today is ror membersca own an undivided. fnter es in the facil i ty as a whale. Bo hcanc pts, stagg red construction and joint ownershfp, ~ I low Chevarfous pool c;embers ta share <n che "ecanam<es cf scale" and Cheassccia= d risks c, larger uni s which c n he construct cche p'er cas» per kilowatt, and in benefits accr sfng f. am Cne Iaw r

2-1 — C192—

I

aaerating casis inherent in the mare efffcfent larger unfts.Principal examales of this tyne of pool fng cooper ation ar theP.J.H. (Pennsyl vani a-Hew Jersey-.btaryl and) Pao I, '<eys tone andCanemaugh mine mouth generating plants with. two 810 megawattunits at e ch plant, and various HEPQOL (Hew England Power Paol)ventures comarisfng both s aggered construction and joint owner-ship. conc pts. Other joint paal efforts. have made the constructiona nuclear plants, with attendant law fuel cost, feasfble. tn thepast several yea~s, envfranmental 'and land use considerations havereduced the number af acceptable sites avai'lable far constructionof power generation facfl f ties. This added burden on util f tieshas.made caardinatfan and,cooperation fn the area of providingnew generaiian facilities. all the mare important.

Although fram the early days po~er pooT members havecooper a ied in s barf ng reser ves, scheduI f ng uni t outages., andproviding ror scheduled a'nd emergency. interchanges, only

recently'asthe coord',naied economic use of available power generaiianunfts within a pool gained acceptance. Thfs concept, referr d taas central iz d economic dispatch, provides that the 1oad beingserved .by. the pool as a whole be met by generatfan from ihe mast

,economical. sources available. While'his. r latf vely sophis~tfcatedoperating technique requires a rather r igid pool organizationalstructure camplei with a centralized dispatching center, staff,and an-line camauter; iis importance and value are.- becoming mar eand mar evfden due ta increasing fuel, casts and a decliningavaf labf1 i ty af al I fuel s, especial ly the mar e environmental lyat raciive Iaw sul fur coal and ail, and naiural gas. guf ter ecen Iy, an addi tfonaI envf ranmeniaI advantage af central f zedpool area dispatch has be n utilized by reducing generation inareas exaerf encing short .term adver se environmental candf tfons..

All power pooling or caordinating graups encompass at leastsame of the concepts enumerat d above. As dfscussed in Section 3,pow r pools can be, and incfeed are, structured fn various deare sof arganfzatfanal camplexity. However, regardless a the type of-paolfng arrangement, there are definf e benefits whfch can accrueta the individual pool members and thr augh them the consumers.This appears ta be p rticularly true where there fs a diversi tyof si ze fncluded in the poa I membership, such as in. the c'se o fNew england Power Pool .(NKPQOL) and iNew Yar fc Power Pool (NYPP),

— C193-

SPCTTOH 3

TY?ES OF POWER POOLS

Tje term "Pawer Pool" is defined in the Federal PowerCommission's 1964 Ratfonal Power Survey as- "twc ar mare electricsystems ~hfch are fntercannec ed and caardfnated ta a greater crlesser degree ta supply, fn the mast economical manner, electricpawer for heir combined loads." A wide range of diversecontractual arrangemenis exist today among systems fram all segments .of- the electric utility industry providing for various degrees andme hods of coordination. These- var fatfons ref1ect differences fnload, diversity, characterfstfcs af'enerating plants, fuel castsand geography'. They. are also a pr oduct- a managerial vfews wf threspec ta planning, carporate rate-base requirements, allacaifon

~ af transmission system casis. between power pool and indf vidualsystem functions and apportionment of bene f ts- among pool membersof disparate size, as well as complex legal and organizationalp rob I e'ms .

Power pacTs can'e broadly categcrfzed as formal ar fn ormaI.The t rm "Formal Power Pool" fs defined fn the Federal Paw'erCammissfcn's l97Q NatfcnaI Power Survey as'twc ar more electr icsyst ms which coordinate the planning and/ar oper aiian of theirbulk power facilf iies far the purpose of achfeving greater economyand reliability fn accordance wf.th a contractual agreement thatestablishes each member's respansfbf1 ftfes ." An "Informal PawerPool" can be defined similarly, except that no member is sacantrac ually abl fgat d, ta other members.

Both Formal and Informal Power Pools pravfde the economicbenefits that became available through performance c- one otmar af the fcllawfng basic functions cf intercanneciicns:

1. Ffra power sales and purchases

2. Reductian af generating r serve requirements

Kcanamic Ica&ng of generating unf ts~

'ravisfanc shart-term capacf ty ta campensatefor unanticipated capacity deficienciesUtflizaticn a lead diversf y ta roduc generaifngcapacity requiremen s

Gre . Iexibflf y in scheduling mafnienanc

- C194—

7. Staggered cans ruction ta ma."e passible instal latfcnof larger .generatfng units wf th. att ndant sharingof ffnancfa~I risk.

A. Formal Po~er Pools

Based on organizational structure, Formal Power Poolscan he categorized as three types-: Corpora.te Pool, TeamPool and Link Peal'.

(a) Ccrcorate Pool

Corporate Pool fs a power pool comprisedoi'he

corporate a flfates or a holding company. ACorporate Pool fs planned and operated as a singlesystem with a central dispatchfng center rar theeconomic dispatch of all generatfng uni ~s.

Examples af Corporate Pools are:

American EIectrfc Power Sys.tern (AEP)

Appalachian Power CompanyLndf ana. & Mfchi gan El ectri c CompanyKent'ucky Power CompanyKfngsport Power CampanyMfchfgan Power CompanyOhio Power CompanySewell Valley Utilitfes, CampanyMheeling El ctric Company

Genera1 Public Utilities Corporation (GPU)

0ersey Central Power & LightMetropol f tan Edison CompanyPennsylvania Electric CompanyMew Jersey Power & Lfght Company

Middle South Utili ies System

Arkansas Pawer &, Light CampanyLouisiana Po~er &, Light CompanyMississippi Power &. Light CcmpanyHew Orleans Public Servfce, Inc.

Sau hem Company Sys am

Alabama Power CcmaanyCeorgia Power Company .

Gulf Power CamparyMississippi Power Company

3 g ~ -C195-

(b) Team Peal

Team pool is a po~er paal comprised af'on-af,f lfated systems. which are planned and operatedas a fully integrated system under the "one-,system"canc pt. AII of the above interconnection functiansare provided.

A Team Pool-has major joint generation-transmission planning and construct)on programs.Each pool member generally pays f ts proportionateshare af the annual carrying charges on alltransmf ss',on facilities which are classified aspool iacilf ties. The annual carrying charges ontransmission facflitfes associated with a jointownership power plant are: generally pafd by themembers which are „'afnt owners fn the same propar fonas their ownership. shares.

A central dfspatchfng center pravides for theecanomfc dispatch of all'.generating unf ts on a ane-system, free-flowing tie basis. There is thus naadvance scheduling of economy energy fnterchangebetween pool members., Billing f'r the resul tanteconomy energy'ransactfons is"determined hni~rly byan after-the-Pact accounting pracedur based onactual pool dispatch casts and own-load dfspatchcasts whfch would have been incurred with operationindependent of the pool.. The.pool, bills the membersmantt'Iy for all interchange transactions, includingthose with nefghboring sys ems and pools.

Examples of Team Pools are:

Mfchigan E1ectric Power Pool

Consumers Powe'r CompanyOetraf t Edison Company

New England. Pawer Pool (NEPOOL)

Bangor Hydra-EI ectr ic CompanyBoston Edi s on CompanyBra f ntre El ectrf c Light Oepartmen tCentral Hafne Power CompanyCentral 'lermant Public ServiceEast r n Utf I i ti es Associa sFftchburg Gas h Elec-ric LightHaIyok Gas h Elec.=ric Oepar-wentNew England EIec"ric Sys- mNew England 'Gas h,. Electric Associat sNar-.he s- UtilitiesPublic Service Company o= New HampshfreThe Unf ted Illumina-ing Company

— C196—

Hew Yerk Paver Peal (HYPP)

Central Hudson Gas h Klectrfc~ Consolidated Kdisan Company af H.Y.

Lang Island Lighting CampanyN. Y. State Klectric h Gas CorporationNiagara- Hohawk Power CarparatfonOrange ! Rcckland Utiliti s, Inc.Power Authority of State of H.Y.

4eRochester Gas i Electric Carparatfcn

Pennsyl vanfa-Hew Jersey-Maryland tnt'erconnectf cn (P JM)

Baltimore Gas 5 Electric CampanyGeneral Public Utf 1 itfes Carpal ationPennsylvania Power h...Light CompanyPhf ladelphia Klactrf c CompanyPotomac Klectric Power Company

ic Service Electric 8 Gas Company,Publ

(c) Link Pool

Link Paal i's a power pool comprised cf nan-afff lfatecL systems with coordinated planning andoperation. A Lfnk Pool 'can provide all'f theabove intercannectfon functions through its multi-party peal agreement and thus achieve cperatfanappr oxf mating tha t under the "o ne-sys tern" concep t.

Each poal member generally pays the annualcar ryfng charges cn all transmi ssicn facf 1 f tf eswithfn its service ter~itory. Joint cwnershfp csame transmission facilities such as'HV lines issometimes provided far by a transmission facilitiesagre ment among the owning systems. A pool memberwhose transmfssfan facilities are necessary fcr.efi'ecting power'xchanges, between twa other paalmembers is paid for such use by the receiving partyin. accordance wi th the- pao 1 a greement.

Exchange cf capacity and energy is made an thebasis cf applicable. pool rate schedules provided inthe poal agr ment. Gill ing ar interchange tr ns-actians is an the basis cf the scheduled fnterchaagecammi~ents between the'paal members and is r nder dby the supplying member ta the receiving member dir ectly.Interchange transactions involving systems cf othermembers ar billed in accordanc wf th a'he I ing servfcschedule cf th po'ol agr ment. tnt rcnaage transact;cnsby a pool member wi "h a neighbaring system cr,"ca I arebilled dfrectly by the supclying party tc the recei ringparty.

— C197—

Kxamples of Link Poc'.s a~e:

?11fncfs-51isscurf Pool

Central Ellfncfs Public Service Companylll=inois Power CompanyUnion Klec rfc Camps,ny

Kentucky-Endfana Power Pool (KEP)

Lndjanapo.lis Power 5 Light CompanyPublic Service Company of indianaKen tu cky U ti 1 i tf es Camp a ny

Nfssouri-Kansas Pool (HGKAH) ',Kmpfre, Oistrict Klectr ic Company =

Kansas City Power 5 Light CompanyKansas Gas 8'lectric CompanyKansas Pawer 5 Light. CompanyHfsscurf Public Servfce. Company

Iowa Pool»

Corn Selt Power Cooperative'owaKlectric Lfaht h Power

?awa-fllinoi's Gas h Klectrfc Campany?owa .Power 5 Ligh t CampanyIowa Public Service CompanyIowa Southern Utflftfes Company

Upper Hfssfssfppf Valley Power Pool»

Cooperative Pawer AssocfatfanQairyl and Pawer Cooperatf veIn ters ta.te P ower Camp any'ake Superiar Oistrict PowerNi.nnesota Power i Ligh" Camoany8f nnko ta. Power Coopera tf veNon tana-Oaka ta U tf 1 i tf es CampanyHorthern Minnesota Power Associatidn

~ Hcrthwes'ter n Public Serrfce Campany,Hortharn Stat s Power CompanyOtter Tai 1 Pawer CampanyRural Coop. Power AssociatfanUnited Power Association

Mfsccnsfn P" ~er Paal

Nadf san Gas 5 Kl tric Camoany'rifscansin Power h. Light C moanyMfsccnsin Puolic Service Corporation

— C198-

+Nfd-Cont nent Area Power Pool (tlAPP} wasformed fn '.g73 by combining these two poolsand a number or other util f tfes into a larger'egfonaI pool whic'h is t'unctfonaIIy similar tothe Upper Hississippi VaIIey Power Pool.

8. ln, ormal Power Pool s

An informal Po~er Pool is sfmilar to a Link Pool.Many of Che beneff is oi a Lfnk Pool can be obtained throughbf lateral and mul tfparty - f nterconnectf on agreements.

Examples of Informal Power Pools are:

,"-1orfda Operating Commf CteeHew Hexfco Power PoolRocky btountafn Power PoolMfsconsfn-Upper Hfchfgan Syst ms

C. Generation Pool

Any two or more power systems can form a jointly ownedgenerating company to provide wholesale power to iheparticipants. Such an arrangement could be termed a GenerationPool. A joint generaifng company could provide sfgnf ficancbeneffis Co the owners, among them:

L. Tt could facflitat the ffnancfng or'e verylarge capital requfrements for construction orChe new. generating capacity needed.

2. Jt could resul t in a lower cost of financing, andCher eby benef f C consumers.

3. It could permit subs antial economies of scale,standardfzatfon oi design and. other financialand, opera tfonal benerf ts.

4. tt could provide a more efficient means for iheadvance selection and governmental approvaI o=environmentally accep tab I e s i Ces ro r ma jo r powersta tions.

— CL99—

SKCT L'13N

KXANPLKS QF PQ'dlKR POOLS

A. ilew York Power. Pool (Team Poo1)

The organfzatian and functfons af the New York Power Pool arerepresentative af team pools. The New'ork Power Pool agreement isadminist rect by an Kxecutive Committee camprised af a seniorofficer from" each memoer ut> i ty and an al ternate for each cammi tteemember.. The Kxecutive Cammi ttee selects fram among .i ts members a

Chairman and Yfce Chai rman ta serve for ane year. The Vice Chairmansucceeds the Chairman at the end or each term ar office. Theagreement provides that he Kxecutive Cammi ttee shall meet at leastquarterly and at such o her i<mes 'as the Chairman may det rmfne.The Kxecutive Cammf ttee's respansfbility fs, to determine policy

h respect tc. all matter s wi thin the scope of the - agreement andthe carrying out of its prcvisfons. The Kxecutive Cam-,.itte alsoreviews and directs the activities. cf the other cammi ate s or thePool. An Kxecutf ve Oirectcr a'cts as the liaison between theKxecutf ve cmml ttee and tne Qperatfng, Pl arming, Knvf ranmen tal andPublic Relations Ccmmi ttees. He is respans fbi e for* the- admini stra-tion and caordination or the acti vf ties af thase commf ttees andcarries cut such other duties. as are assigned by the KxecutiveCcmmi t te e .

'The Oaera inc Ccmmf tee, camprf sed af a seniar executive rrcmeach af the memcers who. is responsible for electrf c system operationsand an alternate far each member, is respcnsfble for the coor dina-tion of the cperatians of the bulk supply systems of the Poolmembers. The Committee directs the. activities of the Power PoofOperating Manager and establfshes such rules and practfce's as maybe required'o coordinate the operation a, .the bulk pawer supp 1 vsystem of the Pool members so as, to insure reliabili ty cf service,and economic operation wi,th due regard far enviranmental factors.The'Committee has established subcammitt s and task farces tc assistfn the carrying out of f ts respansibil f ties.

Ilndar the directicn sr the Operatinp cnmmi ttaean c,cer a tined i -'» f:7 I -: P

ant r..ihe principa1 purpcses cf the'cntrnI Canter era:ccnrdina inc the cperaticns cr the memhar cnmpanias insnrar ashey may afaf c- the reliabilitv of the bulk power supply on the

inter cannec d sys ms in New Yark 5 tat; di spa tching energy re-quirements, and ctcni tcring the in-ernal and external operations a-

he Pool to insure unimpai red overal I security o" bulk power suap1yall times. '4lar speci fica 1 ly, the Cantr al Center aper atf ng s tsf-

sche ules and dispa "ches operating caoability and energy to meetthe Power Peal lead and reserve requirements in a rel facie andeccncmica'I manner; cccrCinates the operation o- the Power Paal ~i thother sys t ms ar peal s; de termi des -he required min Imum r eservecaoabili ty ta ae aaerated by each memoer ar the Pool; schedules a11transactions far the purchase or sale a acerating capabf I i y ar

4-1 - C200-

ener y; determines the cost oF inter and in'.. a Power Pool tran=.-actions'and prepares billing statements fcr such transactions..heoper ~ tine staff operates a Cant'ral Roam at the Control Cen r

dispat hers cn.duty around the clack. Cata essential ta the effec-tive analysis of po~er candi tians are telemetered ta the Can ralRoam continuously. A high speed ccmputerf z d. bulk data syst m isinstalled at the Control Center; This computer system pravid sdata collection and storage facilities, a display medium,cr thedispatchers and a powerful computational tool ta perform securi.tyand ecancmy calculations in real time. The -camputer system isintercannected wf th satellite equipment located in the operatingcent rs,cf the members. The camput r cantinuously monitors systemdata essential to security of operati'cns such as frequency, trans-mi'ssf on 1 ine flows, cpera ting r eserve,, sys tern I aad and sys t~e .

generation. The fnstallatfon also gfves the operating sta f theability ta determine quickly what the system effect. waul'd be snculdcer-ain contingencies'ccur. The Ppol dispatchers are in constant

f communication wi th the member's dispatchers and the Pool computersyst m has the capabilfcy ta communicate with equipment located atthe members'perating centers e

The Plannina Committee cansists of a senior executive frameach member system wnc >s r espon'sible fcr electric system planningand arr alternate fcr each member. The Cammf tte has t'e responsi-bility ta'caardinate and develop plans rcr the installation afaddi ticnal generating capabili ty and interconnecting transmissianfacilities within the Pawer Paol. The Committee is also respansiblfor the cacrdfna~fon af plannfng between the Power Pool and adjoin-ing pools and 'prf th regional power coordinating agencies ta theext nt appropriate. The Cammf ttee has established Subcammi t" andTask Fore s tc assist in the carrying out cf its responsibilities.

Under the. directian af the Planning Camel ttee, s Pl ermineINsnaaer end his staff ar 10 persannel assist the Plsnn>na vammit-. e>n carrying aat I ts. respansihi 1 i ty ta,caardinate and deveIap p'lensfar installation c addftional generating capabili ty and inter'--connecting transmissian facflities within the Power Pool and withadjoining peals and systems. The Planning Staff is also r spansiblfor determining transf r'imi ts between areas wf thin New Yor k Statand betwe n. transmission systems of New York State and that afadjacent and interconrrec-ing areas. Tne Planning Aanager and st =far. located at the Power Poo.l Control Cent r.

The Knvf ronmental Cammi. ee is comprised cf executives andengine rs represent ng acn member syst m. The Ccmmi tte possess sthe knowledge ta deal wi th the technical aspec:s af envircnmentaIpra c.ian and ennance en" as they pertain tc the planning Fane:icnof the Peal. The Canmitte members are supacr=ed by des:natedrepresentatives fram the environmental engineering s a;fs cf theirme ber systems. The Oirec-cr af =nviranmental Affairs is an hestaff af. the =xecutiv ir c-ar ana supper ts tne act.vi ties cf henvi ronmental Ccmmi t-ee and maintains wcrking contacts wf th F ec ral,

<-2 — C201—

State and local c,. icfals iavolved in environmental. matt rs.Oirec-ar cf Environmental Affairs accommodates many

environ.".,cata'raups

wf h inrarmation and gufdance, and arranges ccntac "s be-.;.:.anthese groups and NYPP representatives.

A Public Relations .Cammi ttee cansisting cf a public r I ~ ticns ..repr s ntat;ve,rcm eacn member caordfnat s the public relationsactivities as they apply tc the Peel as a whale. Tha Oirecturcr Public Rale'inns prcvidas supper t to the Puhlit Ra lat>cns

amma -, >mp ements Pool oriented public afrairs and inrormatianprograms and acts as hast ta visitars to the Power Cantral C nt r.

Chairmen and 'Vice Chafrmen af the Qperatfng, Planning, Enviran-mental and Public Relations Cammi ttees are selec"8d and ra".a ed inthe same manner as is dane fn the case of the Kxecutfve Cammitte

B. Uaaer Hissf ssfaaf V Ile Power Peal (Lfnk Pool)

'The crganiza fcn and functions of the Upper 1<fssissippi ValleyPawer Poal are repr esentative c'f link pools. The pool agree,. ntis administered by a Plannfng Commi ttee and an Qperating Cormi tt e..Each member system f s represented. cn bath commi ttees.

I

The Plannina Cammf ttee 'has a broad assfgnment ta carry cut orcaordinate engsneeraog studies relating to expansion o, new bulkpower supply raci1 f ties. It f s assigned speci ri c res'pcnsibil i tiesfor develaament. of load forecast, determfnatfon of generating reserverequirements,'ccrediting generating capabil i ties and schedul ing ofcapaci y sales and. pui chases in connec )on wi th staggering afgenerator additions and u"i lizaticn o seasanal load diversi ty.This planning cammitte fs represented as a unf t on the 8 PP Fl'armingCammit- e and has a liaison representatfan in the HAIN organization.Al locations af reserve are handled thraugh purchases and salesunder est bli shed pool rate. schedules sa that each membe~ providesits established pool pere nt reserve requirement. The membersys ems have a mixture of winter and summer peak loads and thisdi vers i ty i s u i 1 i zed through schedul es of s i x-month seasonal pur™chases and sales admfnf st r d hy. the planning ccmmf ttee.

The Oaeratfna Cammftt e fs assigned r sponsibilf ty fcr develop-ment and aamsn>strat>an or operating practices an a pool-wide b sistha- ~i I I provide aptimum operating economy cansis tent wi th hicnrel iabili ty af service. Speci fic areas of coo< dinaticn ci ted in thepool agr ement are sp'inning r eserve, main tenanc sechedules, economyenergy transac.i ans, short term Iaad forecas ts, and in er changeenergy accounting. A. minimum safnnfng reserve equal tc the largestgener'tar unit in the peal is presently recuired. This amount isel locat d among the. member systems on the basis o-. the larges t uni:in each sys- m and i s annual peak Ioad, equal weight, bein" g ven 'aeach af ches tNa s actors. s<afntenance cutages are cccrd na= cquar:e. Iy'meetings af the Opera "ing Commi ttee. Operating ccor"'ina--.,ian is carrf d cu" ccntinuausly through special, subcammf tte s andratai-'cn af saec, ic assignments among.the indiifduaI sys ms .."-crex male, the dispatching cfffce ci ane member system will be

— C202—

designated's the spinning reserve c"-ordination c;fice, anotherdispa-ching office will act as maintenanc coordination africetc. A teletype communicatfons network fnterconnec ing ~he memb=,dispatching offfees is used ex ansively. far carrying aut rautin:coordination efforts and obtaining rapid response to emergencysituations., The cammunicatfarr system. is also used daily forarranging economy energy transactfons to economical ly al laca tegenerator laadings an a pool basis.

Kxchanges af capacity and energy to accommodate the for cgoingplanning, and oper ation" are carried out under r ate schedulesp ra v ided i n the pool agreement as fa 1 1 aws:

A -- Participation Power Interchange Service8 - Seasonal Partfcfpatfan Power interchange ServiceC:- Kmergency and Scheduled Out'ge Interchange Service

'0 - - Sp i nni ng Reserve tn tercharrge Servi ceK - Kcanomy Knergy interchange ServiceF - Mheel fng Services and LassesG - Operational Control Knergy interchange ServiceH - Peaking Power. ln terchange Servf ceI -- Shart Term Po~er Interchange ServfceJ - Firm Power Interchange Service

Schedules A, O',. H, l and J are primarfly admfnfster d by theP'Tanning Committee in-cannectian with its responsfbilities forcoordinating generator planning, sharing af reserves and exchangingseasonal diversity power. The remaining service schedules areused under the direction of the Operating Commf ttee in carryingout day-by-day coordination. Service Schedule F provides fortransmission service between membe~ systems that are nat directlycannec . d to each other and this schedule fs essentially asupplement ta all of the others.

—C203-

'

designa. d as the spinnfag reserve c""r"iration o-.fice, ana thardispatching o=fice wfll act as maIntenance coordination cfffce,etc. A t letype communications networ '- in".erconnectfng he mern> -..

dispatching offices is used extensively far carrying ou- rau.in-coordinatian effor ts and, abtainfng rapid r esponse ta emergencysituations. The cammunicatfan system is also used daily rorarranging economy energy transactions to economically allocategeneratar loadings an a pool basis.

Exchanges a f capacity and energy to accommodate the =arego ingplanning and operatfan" are carried out under rate schedulesp ra vi ded in the poo 1 a greemen t as fo 1 1 aws:

A - Participation Power ?nterchange Service8 - Seasonal Participation Power interchange Servfce'

- Emergency and Scheduled Outage Interchange ServiceO - Spinning Reserve interchange ServiceE. -- Economy Energy interchange Ser riceF - Wheeling Services and LassesG - Operational Contral Energy Interchange ServiceH - Peaking Power Interchange ServiceI - Short Term Pawer interchange ServiceJ - Firm Po~er Interchange Service

Schedules A, 1,. H,. I and J are prfmarf ly admfnfstered by thePlanning Cammf t ee fn connection with f ts responsibi I i ties farcoordinating generator planning, sharing of reserves and exchangf'ngseasonal diversity power. The 'remaining service schedules areused under th df rection of the Operating Cammit ee in c'arryingout day-by-day caordinatfon. Service Schedule F provfdes fartransmissian service between member systems that are nat directlyconnected to each other and this schedule is essentially asupplement ta all af the others.

UPPER H1SSISS1PPI VALLE'f POWER POOL

OperatingCammittee

Planning .

"Committee

Coo d nat unct o s Coa d n t on unctions

Spinning fleserveHaintenance SchedulesShort Term Load farecastsEcanamy Interchange Transactions.Emergency and Scheduled Outage

Interchange Transactians'nterchangeEnergy Accounting

- Bulk Po~er Supply planning- Lang Term Load forecasts .- Generating Reserve Requirements- Scheduling Capacity Sales and

Purchases in Connection with.Coordinating Genera ting l'lanning

and Sharing of Installed Reserve- HAPP Planning Committee Representative- HAIN Liaisan Aepresentative

SKCTiOH 5

ALliNATVIEFiiUCiilRH OF A

R.ORIOA 2 ~CTRIC POISE PQQt

. (re~)

— C207—

SECT'ION 5

ALTcwfATLVK~i ~ C dRKS OF A R.ORQ3A H.ECTRIC POWER POOL (FcPP)

INGD

PAGE

Intr.duc.f an

H Link Paol Stru~r 5-2

5Bl.HZ

H3H4

H5

- H6H7HGH9

Link Peal Or,anizatianLink Pool MembershipH2.1 ParticipantHZ.Z Associate Parti cf pantLink Paol ~mecutfve Calf tteLink Peal Planning And Engineering Conn tteeH4.1 Capacf~<1 And Transmission Planning

'ubccmftteeH4.2 Ccmputer Program Oevelcpment

~ Suhcarmf t aqH4.3 Pr ductian Plant- Oesign. Suhc~ t eeB4.4 Tranmf ssf an Ance Suhs ~tfcn Oesi gn

Suhccmmf tLink Paol Operating CermftteHS.I. Sysw Operations SubcamitzeH5.2 Accounting Suh~t e5B5'.3 Reserve Requfreaent SuhccfnniMee" '"586,4 Relay and Control SuhccmmitteeH5.5'cmmunfcations SuhcarmfttaeH5.6 Canput r Coordination SuhcarmftteH5.7 Maintenanc And Cans. ruc fan

Suhcarmf t~Link Pool Envf rorsnentaI Caaaf t.Link Pool Public Relations ~i ~Link PacY L~fslatfve Ccamft~Link Pool Organf zatian Chart

5-25-Z5-2C

5-35-4

5-5

5-65-75-70-7

0 9

n'

c 9~-IO&10& I 1

K T~m Pool S~cturTa~~ Peal Organf za&cnTe~m Pacl bteniershfp5C2.1 Par '.fcipant5CZ.Z Asscciat Par fcipatian

'e~~ oacl c"e~utfve C~f ttaeTean Pool Planning And Bgfae ring Camittae5C4.1 C>oacf .y And Transmissicn Planning

Suhman "-~%4.2 Cmpu~er Pr grm Oevelacmenc

Suh~uTi s~~e5C4.3 P..duc"icn Plant Oesf gn Suhc~f ":.5C4.4 Transmission And Suhs ~tfcn Oesfgn

Sub~ tAe— C208—

&13

5-135-13~-135-14

c Ic

5-16

"16

5-17

. 17

5C5

~&re

'K75CSK9

5C10

Tvofca

502

Team Peal Ooeratfng Ccamf tee5CB..I Sys-~ Operations Suhcemft a5CB.Z Acc"untfng Suhcarmftt~5C5.3 Reser Ie Requirment Suhmanf ~.~K5.4,Relay And Control Subcemi t5'.5 *Ceiaunfcatfcns Suhcarnrft ee5C5.6 Caput r Coa&fnatfcn Suhcemnf tta5CS.7 Paint nance And Construction

Suhccmni tteeTeam Pool Envf rcnmental Caami ttee.Team Peal Public Relations Carnri tteeTe~m Peal Legislative Ccamf t e"Team 'Pool. Stai=K9.1 Adminfstrati ve Of rector5C9.2 Gener al Manager, PIannfng ancf

Engfne ring5C9.3 General Manager, OperationsK9.4 Manager, Oispat&K9.5 Manager, AccountingK9.6 Manager, Power SuppIy Coardfnatfon.K9.7 General Manager, Studfes .

Tem,Peal Organizatfon Chart

I Pcalfnc Acr ments,

Typical Link Type r lorica K1ectric PowerPaol Agr ment,Typfcal Team Type Florida K1ec ric PcwerPeal A~ent

PAGE

&17~-1-8&185-195-195-19&-20

&205-215-215-ZI

'

5-22'22

5-235-'235-235-24~=245-26

&27'-27

— C209—

ALi~NATL'('E Si.-.iJ~iRH OF A FLORlOA cia>REC PO!Ace POOL F-PP'I

IiVDiQGUCi7GN

Sane of the unique fe tares of the existing informal Florida Pco1,Florida Elec ric Pcwer Coordinating Group (FCG) and its history o7

~ good operating ard o1anninq functiona1 re1ationships facili tates aneasy transition into a mcr forma1 poo1 structure with additionaladvantages. Tne FCG p. wetly achieves five (5) of the seven (7)basic functions (enumera"~ in Sec ion 3} of an fnt rconne~ dsystem to scme de"r..This sec ion of the report will discuss the cancepts of an orderly~sition frc- tN present informal pool inta the formaI poo1 ofei Her the "link type" .or the "team tjpe.", Typica1 aqrements area1so inc1uded in this section of the'eport. Or~anizationa1 charmand descriotive rwponsfbilities of the major functions are in-c1uded. Hcwever, these charts are in no way to be cans rued asfirn, but rather, i11ustr tive, frcm an educationa1 nacre for thepurpose of this rapop~

The s~ffinq should "e approached on a care r basis within prooerlevels'f the individua1 part..es manocwer, resour es.

5-1 ' — C210-

Link Pca'. 0, an',zsticn

A passible cr:anizatfan s r acture cf a '.;nk hMe FloridaDec-"fc?e'e~ >ca. s sh-wn in the <ra"-..'iu"s ctian 529).ine cbf=-ct e ai',"a.'s >;-,.e cf cigar. "t.n): is c utilize thecapability of, the. individual members an a dedicated pool

'basis ~ ~t)e cn!y paf" personnel an.itf e peal .sheaf=- are admin-istrative and clerical. Ather persanneI ''nvolved fn poolmanagenent, operation, planning,'engineering., e+w., are fulltime enplcyees cf. the indiv dual merrier ~anies. One of

* diefr primary 4cb -.unctians is ta attm" tc peal matters cn acantinucus basis. Tne various caanfttaw func icn cn aregular basis and the details of each c~tte will be

'pelle"ou" in the fallowing Subsections.

This t~e cf arganizaticn is a logical s~~ cr ~sftfan romcur present infaraai FCG organf'zatfcn ta a mare farma! izedorganizaticn ~ith a miniaaan of new rmcurc allacaticns ofmnpuwer and money. The argani at.<an can be m"dffied as. thenet and justi icaticn arise.

Link Paal Hembershfa

Any electric system operating facflitfes in the State ofFlorida for service ta ".e public, as de) ined by the FloridaPublic Service Camfssfan, shall be eligfbIe far meniership inthe Florida Klectrfc. Power Pool (FOP) as a Participan orAssociate Participant. The degre cf par.icf paticn would be

istant with tne existing Florida El~~ric Power Caordin-ating Croup (FCG} objectives.

H2.1 Par -fcioant' Participant is any Party ta the Florida Oectrfc Pcwer

Peal Agreement

(a} Mhfch -rim and cantrcls the aperatian af gen-erating units having a canbfned ins aIIH'capacityaf 7&M net,. or mar; 'and

(b} Mhase sys an is ncrmaIIy aperat d dfr c Iyintercanne ~ad with one cr mcr Par .icipants

— C211-

582.2 Assccfa. Par tfcfoant

lt is recogni zed . ha. some Parties a the F1cr f daElec ric Power Peal Agrcemcr, cannot fully particfpa teunder the prov',sions set. forth fcr a Participant.Therefare,, provfsion i" rrade fcr such Par.y ;"a

partic'pate as an Assocfa"..e Par.fcipant, ft beingrecognized that its primary par.fcfpation will be .<

thraugh the Participant to which the Party fsconnected under the prov'.sions, of appropriatecontracts with such Partfcipant.

Link Pool Executice Commf"tee~ 1

The Partf es cf he FcPP shall astabl f sh an Kxecutf veCommittee ta detarmf.nc policy witn respect to'llmat ers withf'n the scape or the Agreement and to arrangefor the admfnfstra ion and implementation cf'the Agreement.The Executf.ve Ccmmi t:ae shal'I prr vide for the ccordInationaf the plann'.ng,'ngineerfnc, enif ronmentaI,. publ fcrelatians, legfslative, and operating functions af themember's o f FKPP in order that, to,the grea tes t ex tan tpossfble, such coordfnation will be directed ta providingfor the electric pawer needs cf the State of Florida(excludfng Gr.'If Power Company)'s whole.

Each Par-y ta the Agreement shall designate a seniorofficer,. and as an al c mate, a second officer authorizedto act on hf s behal f, -ta serve on the Execu f ve Ccmmi ttee.The expenses of each member of the Executive Commi tteshalI ba borne by he party he represents.

At f ts first meeting, .the K;.ecutf ve Committee shall selectfram among its members a chairman and a vice chairman toser re,ar one year from such first meeting; and fcr eachyear therea ter the chairman slral I be the member cr theCammi t a„who served as vice-chairman during the pr ecadingyear, and the vfce-chairman shall be a member selected bythe Cammittae. The Committee shall meet at least monthlyand a such a ther times as the chai rman may determinenecessary.

The Executive Cammitt shall review and dirac 'heac ivi ies of the Plannfng and Engineering Committee,Operating Cammi tt, Knvironmen-al Cammf t~ee, Publ icReIatfons Commit.ae and I.egf s1atf re Commi.:tae establ f shedhereunder. The Execu 'Ive Ccmmi,t ee shal l arrange fcr thaser rfc s cf an Admfaf'stra-ive Ofrec"ar of the F"=PP andsuf,ic ant clerical and t chnicaI st f.:o permf: them taful ff I I their r espansibf1 i tf es hereunder. Tne Admf n-fstrative Qirec:ar shall ac" ~ s a liascn between theE"acu ive Commf tt and the Ccmmf ":aes; shall a .„nd

MgM ™a= /pan"a" ca ">az~ca".g ChaagecL ~a—~~yacc" ~ ">g-~' C212—

c fMf ' etf ngs f n a nan Yotfng c pacf ty; she I Iadminister and caordinate the acti ri ties cf FKP? andcarry aut such other "uties as may. o assigned by theExecutf v Commi ttee.AII expenses arf sino out of the admin: s "ratfon andfmplementa ian a the Agreement, other than the expensesincurred by each memher or al ter'nate member o

the'xecuive Committee, Planning and Engineering Committee,Operating Cammf tt e, Envfronmen a'; Committee, PublicRelations Commf ttee, and Legfslatfve Commf ttee shall besubject to the approval o f the Kxecutf ve Commf t tee, inaccordance with procedures ta be established by theKxecutf ve Cammitt e. nd shall be, ~ I located among theParties fn accordance wf th the formula .or paymentwhich may be fn effect at the time .uch,expenses arefncurred.

The Chafrman af the Kxecutfve Committee is herehy-desfgnated the agent 'af each if the par ties rcr thepurpose of filing changes in, ar'upplements to, theAgreement with tne Federal Pawer Commission and otherr egulatary agencies.

The Kxecutfve Comm'.t e shall.direc the activities af theTask Farce on Pool Cost Allccaticn. This Task Farce shallbe respansfhl e for determining the inf tfal capaci ty andenergy .charges foi the Agreem nt within the structure ofthe Pool Al location Plan and present these.ta the ExecutiveCammf t ee ror appraval . Tne Task Fore shal I mcnf tar theinitial charges, after approval, on a continuous basis andbased an informaticn and recammenda fons fram the Planningand Kngf ne rf ng Ccmmi ttee and the Opera tf ng Cammi tteeshall suhmf t chances as appropriate ta the KxecutiveCcmmf tt e for approval.Lfnk Peal Plannf na and Knaineerina Cammi tteeThe Kxecutive Cammf ttee of FKPP shall establish aPlanning and Kngfneering Committee which will be responsiblefcr coordinating the planning and engineering o all hulkpower supply facflitfes. The committee will review plansand engf neer ing speci ffcztfans developed by the urrderlyingsuhcammi ttees rcr impl amen ation by FEPP and wi I I present.ne ccmmitte~'s recammendatians ta the Kxecuti Ie Commit".afor approval.

Each Par i c i„-an t. sha I I des f gna te the senior i ad f v i dua Iresponsible ar electric. system planning and engine rinaalong wi th an ~ I - mat ta serv cn the Planning andEngineering Committee. The expenses af each member cnthe cammi t: will be.barne cy the par:y he repr s nts.

- C213—

'Q Associate Participan«may designate a representative as a

nan-voting menher or the Planning and Engineering Cr."...'tte .

The Planning and Engine ring Cemf t.ee shall select -.rcm amangfts members a chair,~n and vice-chairman. i~@ c-,=.ic.. —. ~ saba>I

he changed annually in rotation among the mnb . cf >So.

ccamfttee. Each year, ~ae vice-chairman or the c~-t eeduring the preceding year shall succe d to the chairmanship.

- The Planning and Bg'.'ne'inc Ccamfttee shall meet at regularly'scheduled times and at such other times as the chafrr.-n maydet rmine.

%4.1 Capacity And Transmission Plannfnc Subcenmittee

The Planning and Engineering Ccamf~w shall ~wtab-1',sh a Capacity and Transmission PIannfag iubccm-mit»e to develcp plans fcr the capacity ard trans-mission additions to FVP. The subccmritte wfII besuffed by senior planning persannel r spans<hie fors&dfes and report along the lines cf individualParticipant systen expansfcn plans. The subc —..-mftte shall recarmand alternative plans to thePlanning. and Engineering Cami ~~ee cr thei~ revfmand rec~endati cns.

'he

subcaste.e ~f II select fram amcng fts menbersa. chairman and vie~chairman. ine o=ficers shall bechanged annually in rotaticn among the members afthe subcarmf twe. The subcararft» shall me t. atregularly scneduled. times and at such other times asthe chairman may det rmine.

%4.2, Ccmnuter Program Oevelcament Subc ne.f t,ee

The Planning and Engineering Ccmittee shall es~~b-Ifsh a Ccmput r Pragram Oevelcpmeni Subc"mmitte tamaintain, develop and research computer programs toaid fn data collection, analysis, data maniaulation,and control or pool planning and engfae ring func-

. tions. The subcamitw ~ill be staffed .vf th seniorpersannel xfth the proper background Fcr Nfs 'unc-tion fran the Participanw.

Tne subcamnft~e snail selec fr.m among its manbersa chairman and vice-chairman. The orf'acr s shall bechanged annually in rotation ancng'he marbew crthe subc~i-ta . ine subc~ft:a shall me t a:regularly scheduled 'imes and at such cthe. times asNe chaf man may deta~i.ne.

- C214—

~ ~ I

H4.3 Prcductiarr "lant 6 sian Suhc"..mitt-"e

R4.4.

P anni Ac cine .gi nec. ~ r'g i ~ t ~e '.ha I I es ahIi~h a P-.d ation P'.ant ".": .gr. SubcM ae toce~z cp c..p . 'e desi'ncc ~ ds ar'ool gencrating facili."ies. ~~a "hcr .i<tee will be'taf ed with senicr-per crnel rasper"lb'. ar'ower

~ plan. desicn rrcm the Part'.c.'par~.

The suhcm i.te shall select ".rear amng its mmbersa chairman and v.'.concha'rm n. We officers shall bechanged annually in rotation among the members ofthe suhccrmit . The suhc~t;ee shall me t atregularly scheduled t mes and at such other times asthe chairman may determine.

Tranmrissicn and Subs.ation Oesian Subcarmf ttee

The Planning and ~cgine ring Ccrrrrittee shall estab-lish a Transmiss-',cn and Suhsuticn Oesign Suhcan-

: mitte to. develop and maintain acceptable design~ standards fcr ".ransmissicn and, suhstatian faci I i ties

dedicated tc pool use. The suhccrrrrittae will be~ staffed with senior engineering personnel respon-sible for transmissicn and suhstatian design rrcmthe Participants.

The suhcacnntte shall selec" frcrrr aacng iw menhersa chairman and vie~chairman. The af=ic rs shall bechanged annually in: rotation among the members afthe suhccmmitta . The suhcanni~:e shall me t atregularly scheduled times and at sum other times asthe chairman may det raine

HS Link Pool Coca tine Carrrit.e

The ~tive C~tt e af FVP shall establish an OperatingCcrnnit-~e which shall esMIish and maintain all ne~ ssaryrules and prac fcm nec ssary to coordinate the. cperaticn afthe buTk power supcly sys~ af the paol membership. These.rules and practicm shall insur r liability af servic andeconcrrri c aperati cn.

Ka+ Participant shall designate the senior individual r'espan-sihle for electric sys m aaeratian along with an altarnat~ toser Ie an the Operating C~ii: . The expenses cf each ~-mit „ member will be borne by the par .y he r pr sents.

=-a. 5 Asaac'a"sc ~~ ve as cL

a lese ~~

Qs «» «+ «am~ spy gegi ~p «~ a «~@~~»=cr.-ve '-q mamhe c= "".e Cae~ -'".

"J.r—C215—

I

\ 1

The Operating Carnf-- shall sele t fran amcng its menbers a

chairman and vfc~chafrnan. Tne of.ic rs shall be changedannually fn ratatfcn among Qe menhers of the ccmitte . Hach

year De vice-chairnan or the c."anil during. the prec „diagyear shall succ ed ta the chairmanship. The Oper atiaq Can-mitt shall me t cn a monthly- basis and at such ether timesas the chait.~n may deternine.

SBS. I Svstan Opera fons Subcctrmf tt e

. HS.Z

%9.3

The Operating Cctnmftt shall estahlfsh a SystemOperations Subccnnrfttee.. The subcermf ttee shall beresponsible far develcpinq and maintainfng a pooloperating manual,. traininq far dispatching per-sonnel, control cent r caardination and other aper-atfng prac.ice as may be necessary. The suh-ccnlnftts will be staf=ed by senior persanneIresponsible for sys~ aperation rom the Partici-pants.

The suhcarmftt~ wiII select fram its members a

chafrman and vic=chairnan. The oi'cers shall bechanged annually in rotation among the subccrmft e

members. The suhccmaittae shall me t at regularlyscheduled times and at such other times as thechairman may detarinine.

Accauntf nc Suhcarnri "tee

The Operatinq Ccamf shaIT esMhlfsh an 'Account-fnq Subcaadttae ta develcp and maintain pr'actfcesinvolved fn accounting ar the casts involved withthe operation of the pool and will be rmpansible

. far the cast schedules wfthin the peal agr ment.The suhcannittee will be staf ad by senior personnelwith the proper background ta cari7 cu thfs impor-tant functfan from the Participants.

The subccradt ~ will selec fram among fts menbersa chai rman and vie chairman. T'ne,oi'=f c rs shall bechanged annually in ratatfcn among the subcamnf tmenhers. The suhccnmit- e will meet at mguIarlyscheduled times ance at such ather times as. thechairman may dec rmfne.

Reser ie Reaui~ent Suhc~ .a<

ine Qperat",nq C~t ~e shall establish a ReserveRequirment Suhc~~i t=ae. The suhccmni ~:ae aha 1 I berzpcnsfble far develcaing *nd maintafninq adeouatztwarve policies c nsis- nt ~ith coed r 'Ifabflicyand ~mcmfc cpe~ticn. Tne suhc~i =e ~ill

7— C216-

K4

HS. 8

review curr nt reserve r~uiranents and will deter-,mine al rnative courses of action shouId' con-tingency condition deveIop in the pool facil t.'es.The subcarmitte wi11 be s fied with senior per-sonnel with the proper background for this unctionfrom the Participants.

The subcerad ttee will select frcm among its manbersa chairman and vica-chairman. The officers shall bechanged annually in rotation among the subccmni .emembers. The subcarari ~ice shall meet at ~ularlyscheduled, times and at such other times as thechairman may determine.

. Relay and Control Subcamnittae

The Operating Ccmmitta .shall,establish a Relay andControl Suhcarmitt . The subccrmit~ will beresponsibIe for developing and mainzinfng pro-tection and control schemes or pool facilities.This includes installation, checkout, relay set-

. tings,. reIay maintenance, periodic review of co-ordination and other reIat~d control and protectionfunctions for pool facilitfes. The 'subcarmi twewill.be staffed with senior personnel ~f th theprope~ background for this function fry theP artl cipants ~

Tne- suhccnad tae will select frcm am"ng its ~ersa chairnan and vie~chai.rman. The oi=icers shall bechanged annually in rotation among the suhcmnitteemembers; The suhcarmit~~~ shall me t at regularlyscheduled times and at such other time- as thechairman may det anne.

Carmuni cations Subcarrrit oe

* The Operating Caught shall eswblish a Caamuni-cations Subcarantw . The subccmmittae will be~pons hie for developing and maintaining an adequateand rel.iahle cmnunic tions sys~ between the Par .i-cipants oi the pool. The suhcarmit- e will r viewand r caanend the necessary ~nication system -rgood pooI operations. ine subcamnit „will besufi'ed with senior personne1 with the pr oer backgroundfor this Func ion fran. the Par ic",'aants.

The sub~i a will selec Fran @nona w membersa ~Ha-'im-n and vic chairman. Lne oi=ic rs shaII bedanged annually in rotation anong De succ~'-~ememoers. ine subc~= ~iII me t at r gulariysmiled times and at sujet other times as ~hec2lcD ~n may dc:tei~i1 ne

HG.G Ccmauter Caardfnatian Subcermitto

The Operating Carmit e shall establish a Ccmput rCoordination Subc~itiae. This subcami t-ae willbe rmpansible far dave'.aping and maintaining ca-ordinatian cf all pool ccmputer acilities dedfcat dta day-ta-d'ay aperaticn tc insure maximum utf Ifza-tfon of process control ccmputar applicatians. This~would include system control, system dat acquisi-tfon, data manipulatf,an, operators lag, super iisorycontrol and other such fQnctfons as may be allocatedta the camputar . The subccrmf tte will be staffedwith senior perscnnel with the proper "ackgraund arthfs, function, fren the. Participants.

The subcarmftte wf11 select frcm among its manbersa chairman and vice-chairman.. The offic rs shall bechanged annually fn rotation among the subcmnft aemembers. The subccamf tt~. ~f II me t at regular lyscheduled times and at such other'times as thechai rman may 'detarnf ne.

. H5.7 Maintenance And Construction Subcarnittee

The Operating Ccnwttee shall establish a ~4fafnten-anc and Construction Subcanmrittae. The subccm-mfttae wfII be rwpansf"le =or davelapfng andmaintaining all nec ssary 'rules and prac ic s nec-essary ta coordinate. the maintananc and cans ruc-tfan of. the generation and the bulk power supply.systems of the peal membership. These r Ies andpraMms shall insure reliability of servic and~cmfc aperaticn. The subcnmi ttae will be. sw=edwith senior perscnnel r sponsible for maintanancand, construction from ihe Participants.

, The subcamit shall select fran amcng its membersa <airman and vfc~chafrman. 7~e ar=,ic rs shall bechanged annually in rctatian among the subcaraf ttamembers. Toe; subccmmit- will me t at regularlyscheduled times and ai such other times as thechairman may det rmfne.

=36 Link Peal K~vfrarmentaI Canthi ttee

The 9e~< ive Cmrf i >e of'r..-p shall 4atabIish art =nvfran-mental Ca~it~ whic" shall develop and caardfnat aspects ofenvironmental prctactf an and enhanc nent a. «hey pe~ai n iathe planning rune-ian af F"="-..

= ch P r.g snaIl dasigna. "".e senior ind;vidual r spcnsiblfcr envir anent" I ac=ivi fes alang ~ith an altarnaia ia sar Ie

— C218-

cn the Environmental Ccvmitt e. The expenses or each memberon the calf t. will he horne by the party he represents.

The Environmental Carmitt e shall select fran among its menhersa chairnan and vie~chairman.. The offic rs shall be changedannually in rotation among the menbers of the c~t a . Eachyear, the vfc~chai~n.cf the c~tte during the precedingyear shall suc™eM ta the chairmanship. The EnvironmentalCanaf t ~ shall meet at regularly scheduled times and at suchother times as the chai man may determine.

Link Pool Public Relations Carmittee

The Exe~tfve Ccamfttee of FVP shall establish a Public'Relatfans Ccamrit which shall develop and caardinat publicrelation activitfes as they apply ta i~cP as a whole.

Each Party shall designate the senior individual responsialefar public relation activities along with an alt mat taserve cn the Publfc Relations Committee. The expenses af eachmember af the caaafttee will he horne hy the party he r pre-sents.

The Public Relatians Ccnmftte shall sale~ fram aaang itsmembers a chafrman and. vice-chairman. The- of icers shall hechanged annually in rataticn among the members of the ccm-mfttee. Each year, the vic chairman of- the c~ft ae duringthe. preceding year. shall succ ed ta the chairmanship.'hePublic Relations Comit~ shall. me t at regularly scheduled.times and at such ather times as the chairman-may determine.

Link PacT Lecislative Cannft ee

ine Exemtfve Ccmmftw af FVP shall establish a LegislativeCaaaitte which shall develap and caardina~. legislativeactivities as they apply ta FHP as a whole.

Each Party shall designat the senior fndfvidual responsiblefor legislative activities alcng with an aIternat,ta serre anthe Legislative Cararit~~~ The expenses of each member cf thecamritt e will be horne by the party he repr sents.

Tne L~fsIative Carnrittee shall select fran amcng its mannersa chairnan and vic~chafnnan. The offfc rs shall he changedannuaII> in rataticn anang the members ar Qe cubit:a . Eachyear, Ne vfc~chafrmn or Ne car@i dur 'ng'he'r dingyear shall succeM ta the chairnanshfp. The LegislatireCond . e shall me t at r,ularly scheduIed t mes and at such

~ other imes as "".e chainan may de+ rmine.

— C219—

Cetelllel ~lail

~ACICI at eltaela calalaeI tvca ~'waeeleellal

~IIICIII

~tlCall tlallteea tall telltallto

~al

I ~ eeeeawtea cave ~III

I

~tleellel Oeeetltl

~II

taaall I4lllteICaeeafICC talaelal ~ lallallaaaltaeee lla1

aaa

~ Cllaattel tevalICI

I

QhJC)

I

~ellaea Iel~ ll~ ~

~VIVve lail~Itate IIela ICwanll

Cal CCI II ~ Iaaa W IleII~aaaalaa sacwaclcc

~Ie A~aaeeella taaW+~CCIIIWI teIOoell ~ I

Iae.lr~aeev e I~ Ie ee Ia eave'IIIII

~eaceel eeleewa ~ IKeevvlell

tel. I

eel. ~

~Ce ~ I I Ctelo4Ieeeaeeoellll

ltveel ~ CeaealaalataCallaeee leal

Ill,a

taatetllaa IIeelatleaa leteahallCC

lae.lliat&alee ~ ~ teellelela~caela aeaaava till

IaeA

~ ~

a ooeeovla ~ cvaeaeceeea

I aeevelall

~alv lipIlti(lkLlll lltf

EQ Ten Peal Stmctur

Tean Peal Orcanizaticn/

A passfbIe organization s ructure af a ~m type FloridaHectrfc Power Peal is shown in the chart (Subsection 'C10).The abjec ive of this type af"o~>f zambian is to plan andoperate the pool as a fully fntepy ated system under the "cn~s>w~m" concept includinq a central pool distaching center.The pool staff of pa-'d personnel will cansfst af adminis-trative, engineerfnq, operations and cle.fcal perscnnel. lnChfs type af organf~~tian, the Ex cutivc Cami w composed cfmember ccmpanies'erscnnel stfll can rol the pool decfsfcnsbut,unlike the Ifnk ype peal, the paid sta wiI.I at end tapool matters an a continuous basis. Tne details cf pool staffand cotta "uncticns will b'e spelled cut in the.followingSuhsectf cns.-

This type of organiz tfan is a mgor s ap fram cur presentinformal FCG organization ta a mor Form Iizad or,anizatfan.This is a feasible. approach with the understandfn"„ t.".at themistral paal disaatch sys~~ would nat cue into being'ntilmuch, later. Mith the additional staf- personnel the tatalcast.would be great r than far the link ~e peal but savingsin member ccmpany perscnnel tim shmld offset this additionalccLst~

Tean PcaI Menbershfa

Any elec"ric. sys~ cperatiag facilities in the S"~te ofF1crfda for service. to the public, as defined by the FloridaPublic Service Cawnssicn, -hall be eligibIe for membership inthe Florida Uec ric Pcwer Peal (FVP) as-a Participant orAssociate Partfcf pant The degr af parti cfpaticn wauld becansfs ant with the existfng Florida Electric Power Caardin-at'.ng Group (FCG) cbjec ives.

HC2 1'ar fcfoant

~ A Participant is any Party ta the F1orida E1ec ~c PowerPool Agreement

(a) Mhich owns and controls the opera"ian of gen-erating uni'ts having a coined ins- Ilad caaacityof 791M net, or mar ; and

(b) Shcse system is narmally cperat d dir ~lyinter cnnectad wit!i cne cr mar Participants .

SC2.2 Assocfate Participantam

Lt fs recagnfzed Chat some Parties- to the FloridaElectric Power Poal Agre ment c nna ful1y partfcfpateunder the provisions set far h for a Par Cfcfpant.There ore, provision is made or such Party Caparticipa e as an Assacfate Participant, ft beingrecognized .Chat f Cs primary aarticfpatfon wi 11 bethrough Che Participan Ca whfch the'arty fscannected under the provisions of the appropriatecontracts with such Participant,

GC3 Team Pool Executive Committee~ L

The Parties of the FKPP shall est blish an ExecutiveCammfttee Ca determine policy wf th respecC a allmat ers wf thfn the scape of the Agreement and Ca arrangefor Che administration and implementation of the Agr

ement.'heKxecutive Committee shall provide for the. caordfnationof the planning, engineering, environmental, publfcrelati'ons. 1 egf slatf ve, and operating functions of themembers of FEPP f n order Chat, ca the. greates t extentpossible, such caordfnation will be directed Ca provfdfngfor Che electr'fc power ne ds o'f the S ate af Flor fda(excluding Gulf Power Company) as a whole.

~ LEach Party ta the Agre ment shall designate a senfar'fficer,'nd. as an alternate, a 0 cond ofifcar autharizedta act an his behalf, ta serve an the Kxecutive Cammf teThe expenses .of each member af the Executive Cammitt eshe.ll be borne by Che. party he represents.AC. fts first meeting, the Kxecutive Commf ttee shall selecfrom amang i ts members a cha f rman and v f ce-cha f rman Caserve for one year from such'irst me Cfng; and for eachyear therea.f ter the cha f rman sha11 be the member o f theCommittee who served as'ice-chairman during the precedingyear, and .the vice-chairman. shall be a member selected bythe Cammftte . Tne Committee shall meet at leasC monthlyand at such other times as the. Chairman may determfnenecessary.

The Executive Comm< ttee she.ll review and direct theactf rf ties of the Planning and Kngi'neering Commit ee,Operatf na Camm.'CC, Environment 1 Commf CC, PublicRelations Cammit, and Legislative Ccmmict e escabI f shedhet eunder. The Kxecutf ve Cammi" ee shal 1 arrange far theservic s of an Adminiscra fve Ofrec-ar o h4 F-PP andsuffici nt clerical and. chnical st f-, Ca permi Cchem co ful fill hair respansibili ies here-

Changed "Paz=~c'pcacal™a "'Pm 'ea"~ ~g~ "~az~c='pane" -a "~m~'

C222—

under. The A~nistratfve Oirectcr shall act as a liaisonbetween tNe Executive Ccnmittee and die Carmittaes: shalldirac the activities. af the General Manager of Studies; shallattend c~ftt e me tings in'a'nan-voting capacf y; shalladminister and coordinate. the activities cr FEPP and carry cutsuch other duties as may he assfgned by the Executive Ccm-mi tteeo

A11-expenses arising cut af the administration and fmplenen-tatfon cf'he Agreement, other than the expenses incurred hy.'aN menber or alternat member of the Executive Ccmmittee,

.- P1 anni ng and Engineerf ng Caanf ttee, Operating Camni tte,Envircnmental Ccmnit, Publfc Relations Ccmnrittee, andL~fslatfve, Ccmmf ~ shall be- subject tc the approval af theExecutive Carmftt, fn accordance with procedures tc b

established by the Executive Ccnrnittee, and shall be allac.t damong the Partfes frr accordance with the formuIa 'or paymentwhich may be in effect, at the time such expenses are incurred.

The Chafrnan cf the Executive Committee is hereby designatedthe. agent cf each af the parties for the purpose af rilingchanges in, cr supplements ta, the Agreement «fth the FederalPower Ccmfssfcn and other regulatory agencies.

The Executive Ccmft ee shall direct the actfvf.ties af" thTask,Fare an Paol Ccst Allccatian. This Task Fare shallbe responsible. or determining the initial c pacity andenergy charges far the-Agreement and present these to theExecutive Camittee or approval. The Task Farce shallmaniter the initial charges, after approval, cn a ccntinu-cus basis and based cn fnformatfcn and. r armendatfans'framthe Plannfng and Engine ring Carmine and De OperatingCararitta shall suhnft changes as appropriate tc theExecutfve Cemrit rar approval.

5C4 Tem~ Pool Plannina And Enaineerfna Carmf t e

The Executfve Ccmrft~ af Fc.PP shall eswblfsh a. Planning andEngine ring Ccnmittee fran the Participants wnich will beresponsible =or tNe planninq and engine ring of all poolfacflftfes. The carmiite wfll review plans and engine ringspecificatf ans developed by the underlying subcamf ttees farfmpIenentatfcn by r-~P and will present Ce cmttee's recan-mendatians tc the Executive Cannrit ~e, for approval. ThePlanninq and Engine ring Carmf t- shall also dir ~ theactivities cf he General i4tanaqer cf Planninq and Engine ring.

Ea& Par.ic-'.pant shall designat Ne senior individualrespan'sible -cr ele~ric sys~ planniaq and engine r nq along«ith an alt mat tc ser ~e cn "Ne Planning and =nqine vinaCamittee. Tne 'expenses af each memcer cn ""'.e emit= «illbe borne hy ~he Par J he r ~a sents.

Ead Asscciate Par.icipant may designat a r resentative as a non-voting Inember af the Planning and Engine ring Carmitta .

The Planning and Engineering Ccamtt sha11 seIect fram among itsmembers a chairman and vice-chairman. ine offic rs shall bechanged annual,ly fn rotation among the members cf the carnittee.Each year, the vfce-chairman oi the caanittee during the precedingyear shall succe d to the chafrmanshfp. The Planning and Engin-e ring Connftte shall me t at regularly scheduled, times and atsuch other times as the chairman may det rmfne.

RI. I

EC4. 2

Capacity and Transmission Plannfnc Subcarmittee

The PIannfng and Engine ring Committee shall establish aCapacity and Transmission Planning Suhcanmitt e todevelap plans. far the capacity and transmission additionsto FcPP. The subcamrftt will be sMfied by seniorplannfng personnel respcnsfble far studies and reportsalang the lines of fndfvfduaI Participant system expan-sion plans. Tne suhcannfttae sha11 reccmmend alternativeplans to the Planning and Engineering Ccnmf te fcr thefrreview and'e:armendatf ons.

The suhccmit~ wiI'I have as permanent chairnan theGeneral Manager of Planning and Engine ring. Thesuhamf ee will select fran among its members avie~chairman who shal1 be changed annua.lIy in rota ionamong the members of the sub~i ~. The suhcanmittshall meet at regularly scheduled times and at such othertimes as the chafrman may deternine.

Canauter Pracran Oeveloament Subcarmit ice

The Planning and Engineering Cabiri ++ shall estab-'isha Ccmputer Program Oevelopment Subccnmitte to

maintafn, develcp and research canpu er pragrans toaid fn data collection, anaIysfs, dat ranipulaticn,and control for pool planning and engineering func-tfcns. The suhcamftte will be swffed with seniorpersonnel with the praper bac!aground fcr this func-tian fram the Pa~cipants.

The suhemrft ~e sha11 have as pernanent &aidanthe"GeneraI Manager cf Planning and Engine ring.The sub~i~we shall select rrm among f ts membersa vic~chairnan wha shall be manged annually in

ratatfarr among the members of the subccrmftt . Thesuhcamftt shall me t- at r,ular ly scheduIed times

~ and at such other times as ~De chairman may detar-anne.

K4.3

K4.4

Production Plant Oesicn Subccamfttee

The Planning and Engineerina Carnf tta~ shall mh-lfsh a Praduc.ion Plant Oesign Suhceanit¹e tadevelop ac"~ptable 'design s~dards ror pool gen-.erating facf I f t'.s.. The subccmri tt will bestaffed with seniar personnel responsible for powerplant design fran the Partfcfpants.

The. suh~tta wilT have as per„>rent chairman theGeneral Manager af Planning and Engineering. Thesuhcaaaf tC e shall select fram among its members a

vic chairman who shall be changed annually in rota-tion among the members of the suhcmnf tte . The

subcommittee

shall meet at rguIarly scheduled times~ and at such other times as the chairman may deter-

mine .

Transmfssfan and Suhstatian Oesfan Suhcamttae

The Planning and Engine ring Ccamf t¹ shall estab-. lish a Transmission and Substation Oesign Subcom-mittee ta develop and mafntafn acceptable designstandards far transmission and subsMtion facflftfesdedicated ta peal use. The suhctmmit .wfll bestaffed with seniar engine ring personnel respon-sible far transmission and suhsutfcn desian fr@athe; Parti cipants.

The suhcarnf wilT have as pernanent chairman the.General Hanager of Planning and Engine ring. Thesuhcemntte shall select fran among its menhers avice-chairnan wha shall be changed annually in rat-tian amang the members af'he suh-canft a . Tnesub~ttz shall me t at ngularly scheduled times=and at such other times as the chairmn may det r-mine.

SCS Tem Paal Qaeratina Canm ~~~

The E"e~ztf ve C~ t ee ar ~~P sha I I es zb I i sh an QaeratingCarnnc-a wnich shall es hlish and maint in all ae ssaryrules'and pre~em aecmsar J a cacrdfnata the aperat.'"n a=

Ne bulk power supply sys"~ af Ne pool membership. ineserules and practfm shail insur relic~'lity or service ande""nomic cpemtfon. The Qceratiag C~f t: shall also dir ctthe ac ivities of the General,4anager. ar Qcerat ans.

Ja~4 +it a< t cwall Aes+ ~ate + ~p span+ J4 < ~

" s=ons&le for elec~=ic system ope =.~ ~., al..-.c

pa y Le repr ese ~ ~

~~ Assaciat 3 r~m='pan may desi~.—.. reo,".=sec"- "iveas a non-votin> 'i" "~ - o the Qcera ~ tq or=.'".ee.The Qpez:ann-. Cc~''~l ".elect "" m a—.ang itsmembers a cha'~ an6. vice~~'~ The o= 'cessshall be chang< annu ''y in enation ~ag r".e membersof the c~t="e. ~~ch gaea= the vice~»~". of thec~ttee Su=i"g the p-ac e8ing yea s~'' "'e 6 tothe chai~ship. The Qpera&ag Committ e shal3. meeton a months.y bas's and at such oth "='es- s thecha'~a may 8et~~ae.SCS. l

cCS 2

Svstam doe a ions Suhccmmit ae

.The Q era~g C~ttae shall establish aSystem Qpe"at'ons Suhc '" e. =he suh-ccmmi"tae shall be responsibl fo" cevelcpingaran. ma~~u "g a pcol ope at'"g manual,t=ain'"g o" d'spa~iq pe sana ~, coa=ol

. can~~ cco~~tion and ot.". o"e t'gpzac 'ces as may be necessa~. ice sub-commitme will be stat e6 by se~or pe"sonnel

oasihZ.e for sys~ operation "rcm thePa ~ c par.ts.The suhcommitme wilJ. have as pe~cent cha~--mea t.".i Genem~ Kedge o8 Qpe=a"'ons. Thesubco~~e~ w~~ selec" f~ its memhe s avice-~" 'an who shall be cha gad annually inrotation among the suhcomm'tae me-"ers.subco~t e s~» me t a» regularly.scheduleddms aa" at such o "e Mes as ='"e ca'~~may let~- e.Accountm~c Sabcommkt ee

&he Qpe=ating Committee sha3.l estahl'sh aahcmun~g Suhc~twe to develop ance ~pxac 'ces involved i" account".g c the c-stsinvolveck w'th the operation, of th pool an6 willbe res-.onsMle "or the cost sches..'ules wi~+'" "".epcoI, aq=aemeat. M subcomm" tt e w ~l be sc ~f 4by s~z -. e sonne' M the arouser bac!egmu.".4to ca=~ o~ ™~ lm=o~~ "~c=' "cm >'".e

~e sQc=w'~ wi'l have. as =e= ".ent cha='"-man "e M."~ '~qa o= Qpe-a ons. hesubc~"=' w'~'elec= ==em among its me~"e"sa v"ce- "~an who shall be c.-'~ge> az "ual'y

mta-"'on among ~ subc-mmi"~. membe s..hesubc mm w ~ ~ meet at regula 'cheduled~s ~ at such o—'"~ ~s ~a "5e cha'anmay deW'e. - C226—

- ~ ~

KS.3 Reser ze ReouirenentSubcommittee

SC9.4

GCS. 5

The Operatfng. Cotta shall establish a Reser ieRequf rment Subcarmf ttee. THe subc~f tte shall beresponsible for developing and mafntaining adequatereserve policies consist nt with good reliabilityand econcmfc operatfon. The subcarnftte .will

: 'evfew current reserve ~ufrenents and we'll det r-mine alt rnative courses of action should a contin-gency'condition develop in the pool facilities. Thesubcaamittee will be stained with senior personnelwith the proper background. for this functfon franthe Participants.

The subcararit ee shall have as permanent chairmanthe Gener al iNanager. of Operatfons.. The subcarmf t.will selec fran among its members a vfce-chaf rmanwho shall be changed aanuaIIy in rotation among e.".e

subcamrittee members; The subcermf ttae shall meetat regularly sche~~led times and at such other timesas the chairman may determine.

Re la and Control" Subcarmf ttee

The Oper ting Ccamft~ shall estabIfsh a Relay andControl Subcarmi-e . The subcaraf t will ber sponsible ror developing and mafntaining pro-~on and control schemes d'or pool facilities.Thfs fncIudes fnstallation checkout, relay set-tings, relay mafntenance, penodfc review of coor-dfnation and other related co'ntrol and protectionfunc fcns for poeI. facf Iftfes. The subccamf ttewill be staffed with senior personnel with theproper background for Dfs'unctfon frcm theParti cipants.

The subcamf ttae will have as permanent chairman theGeneral Hanager oi Operations. The subcarnf ttawill select from among its maniers a vie=chairmanwho shall be changed annually in rotation among Desubcamit members. T'ne subcarmit e shall me tat regularly scheduled times and at such other tfmesas the chairman may deternine.

C~nvcatzons Subc~f «~ine Qperatfng Cmtw shall estabTfsh a Cannunf-catfons Subc~ft-.~. The subc~f ttae will 'eresponsible or developing and mainzianing an adequateand r liable cqrnun cat'.'ons system heMe n. the Par:.'c-ipants ov the pool. The subcmnnittae will r vie~and rec~end the ne ssarj c~nfcatfon systems

— C227-

C

for gaad peal cperations. The suhcarmitt e will bestaf ed with senior personnel with the praper back-ground fcr this functfcn frcm the Partfcipants.

The suhcarmitt will have as pernanent chairman theGeneral Manager ar Operatians. The 'subcamni ttewill select frcm among its members a vie~chairmanwho shall be changed annually in ratatfan amang the

'uhcarmftte members. The subcarai tta wf 11 meet atregularly scheduled times and ae such'other times asthe chairman may determine.

Ccnauter Caardfnatf on Subcarmf ttee

The Operating Caanf t shall esMIfsh a ComputerCccrdinatf cn Subcanmi tte . Thf s suhcamnf t= willbe respansible far developing and maintaining co-ordination of all peal ccmputer facilities dedicatedto day»ta»day oper atf an to insure maximum utilfza-tfon of process control canpute'r applic tfons. Thiswculd include sys~ control, system data acquisf-tfon, data manipulation, cperatars log, supervisorycontrol and ather such functions as may be allocatedta the computer. The suhcaaait e will be staffedwith senior personnel wf th the proper background fcrthis function fram the Parti cfpants.

The suh~t~ will have as permanent. chairnan,the General Manager o-.'peratf ans. The suhcarmf ttawill sel~~ fram among 'w members a vfc~chafrmanwha shall be changed annually fn ratatfcn among thesuhccmmf tee members. Tne subcarmittee will meet atrepsIarly shedu.led times and at suN other times as.the chairnan may 'det raine.

Maintenance and Cans ructian Subccnmft ee

The Operating Ccamittae shall esMIish a Mainten-anc and Canstructfan Subcanmittee. The subccm-

wi.ll be responsible far developing andmaintaining all necessary rules and practfcm nec-essary ta coordinate the maintenance and canstruc-tfcn of the generatfan and the hulk pcwer supply.sys~ oi the pool membership. These rules andprac its shall insure reliability af ser <ice andecan~c oper tian. The suhcarni.. will be swr=.edwit!i sanfar cersannel rwponsible for maintanancand c=ns mc='cn f~ the Participanw.

The suh~ ~-~e ~ill have. as pe'@anent chair.-.an theGeneral Manager or Ooe. aticns. The succ-ml t~eeshall selec- fr@a amcng its members a vic -cha manwna shall be c!ianged annually in rotation among C!ie

KCa

subcarmf tt members. Tne subceraitt e will ma t a-ragularly scheduled times and at such other times asthe chai man may determine.

Te~e Pool ~~vironmental Cemittae

The Exa<tfve Ccamftta of FiPP shall establish an Environ-mental Ccamittae which shall develop and .c"crdfnata aspects ofenvircnmantaI protection and enhancement as they pertafn tcthe planning function of FEPP.

Ea& Party shall designata the senior individual responsiblefcr envfrc'nmantaI ac ivitfes alcng with an aItarn&a tc serveon the Environmental Carmft ae. The expenses of each member onthe cannittee will be berne by the party he represents.

The Environmental Commit ae shall select frcm amcng fts membersa chafrnan and vfc~c!iairnan. The o=ficars shall be changedannually in rotation among the members of the ccamf ttae. 'Eachyear, the vic~bafrnan of the cannitta durfng the prac dfngyear shall suc" ed tc the chafrnanship. The Environmental

~ Ccami ia shall meet at ~uIarIy scheduled times and at suchother times as the chairman may datarnine.

Team Pool Public Relations Ccnnii t.~The Exac&~ive Ccnmit- cf ~~P shall esublfsh a PublicRelations Carmit~ which shall'evelop and cccrdinata publ f cr Iatfon activftfes as they apply tc F==P as a whole.

Each Party shall designate Qe senior individual rmpcnsibIefcr public relation activities along with an alt matserve on the Public Relations Cannitta". The expanses or eac!i

. member of the ccnmitwe will he horne by the party he represents.

The Public Relations Ccrarft~ shall seleW„fran ancng itsmembers a chairnan and vfca-&airman. The of fears shall.heDanged annually in rotation among the members of the can-mi~ ~a. Each year, the vfc~Nairman m the conf tta durfnoCe pracading year shall succeed tc the chafrnanshfp. The

.Public Relations C~t o shall me t at regularIy scheduledtimes and at such cNer times as the chafrman may detarnine.

Team Pool Laoislatfye Conf ttae

The Exe~wtfve C~ittae of F~rP shall establish a LegislativeCWt ~4 whfc!i shall develop and coordinate legislativeac-.fvftfes as they apply tc F~P as a whole.

- C229-

Ea& Party shall designate the senicr individual responsiblefor legislative activities along with an alternte ta serve anthe LegfsIatfve Caraittee. The expenses o- each menber of 5".ecamftte will be borne by the par:y he represent.

~ ~

The L~fslative Conf ttee shal1 select f~ amcnc fts membersa &afrman and vfc~chafrnan. The officers shall be cnangedannually fn rota fcn among the members af the carafitee: E ch

'ear,the vfc~chafrman af the carmf twe during the pr cedingyear shall succeed ta the chairmanship. The LegislativeCamdt ae shall meet at regularly scheduled times and at suchother times as the chairman may det rmine.

I

SC9 Team Pool Staff

EC9.1

EC9.2

Administrative Of rector

The Administratfve Ofrec or shall repar to theExecutf ve Ccmmf tta and shall act as Iiaisan bet«e nthe Exemtfve Ccmmft and the other Carmf ttaw;

.shall attend caanfttee meetings in a nan-vo ingcapacity; shall acmfnfst r and cocrdinate theactivitfes cf RPP; shall directly supervise theGeneral Hanacer, Studies and carry out such otherduties as may be assigned by the Executive Ccm-mf NQ4

General Hanaaer Planninc and Enaineerinc

The General Hanager; -Planning and Engine ring shallreport ta the Planning and Engine ring Cca,mf ttae andshall coordinate and develop plans or the fnswII-atfan of additfanal generating capability'and t."ans-missicn racilities within the F~~P.

The General Hanager, Planning and Engineering shall.be the chairman cf various subcaanritt es which wi11perfarm the studies necessary fcr development of theabave mentfcned plans. The subcannf tta s willcansi'st cf manpaw'er rrcm the Participants repre-sented cn the Planning and Engine ring Ccamrft ~ andwill be actfvat d as necessary by the GeneralManager, Planning and Engfneerfng.

The Gener I Hanager, Plannning and E~fne ring shallconsult pericdically «i'he General Hanager,Operations ta insur "rat any extended coeratingrw~~'c-fans ar c"nsidered in any exis.ing crprcpcsad plans.

- C230—

General Nanacer, Oper atf cns

The General Manager, Operatfons shall report to theOperating Cemftte and shall supe. rise the Managersof Oispatch, Accounting, and Power Supply Ccordfna-tfcn. The General Manager, Operations shall estab-lish such rules and practices as are necessary tacaordinate the operation of the bu.lk power supplysystems of the members of the FVP so is ta insurerelfahflfty of service and ecancmic cperatian.

The General Manager, Operations shall consult perfad-fcally with the Gener al Manager, Planning andEngineering and the General Manager, Studies tainsure that any extended operating rwtrfctfcns ornew practfcm are considered in any exfstfng arproposed plans.

The General Manage~, Operations shall be the chair-man of various subcaaaft s which ~f II perform the.studies and reviews necessary for the development cfthe rules and practfc s necessary ta the objectfvesof gacd pool cperation. The subcarmftww wf 11.cansis of manpcwer fram the Participants repre-sented on the Operating Carndttee and will be acti-vated as necessary by the General Manager, Operatfcns.

/Manager, Oisaatch

The Manager, Ofspatch shall report ta. Ne GeneralManager, Operations and shall supervise the func-tions allcc ted ta the. dispatching of the EPPrescurc s consistent with the rules and practfc sagreed upon by the Participants ta maintain thedesir. d level of reIlabf Iity and ecancmic caeraticn .

of Pool resources cn a day-ta-day basis.

The Manager, Oispatch shall consult periodic Ilywith the Manager, Accounting and Manager, PaverSupply Coardfnaticn ta insure that the goals ofreliable and e ancafc bulk elec ric ser ifce arebeing maintained within the exfstinq operatingconstraints fcr the mutual benefit cf the Partici-pants.

Manager. Accauntf nc

The Manager, Accounting shall r por ta the Genera,lManager, Operations and shall sucervise the func-

tions ancf personnel assigned ta accounting for the~ casts involved with the operation or the FE."P.

These casts wculd be of both an operating andplanning aat re. The Manager, Acccunting shall beresponsible far achinfstratfon of the cast scheduleswith the pool- agreement.

The Hanager, Accounting shall be a aan-voting memberof the Task Farce orr Pccl Cost Allaca ian and shallact as Secretary responsible far. all dacumentatianrelating ta Cast Allccatian and Accounting withinthe FPP.

H3.6 Manager, PcNer Suaal Coardinatfon

The Manager, Power Supply Coardfnatfan shall reportto the General Manager, Qperatfans and shall super-vise the function and personnel assigned ta theac.ivity. The functions would consist of estab-lfshfng the ccccaittment schedules far GeneratingUnits an bcO a day-ta-day basis as well as estab-

lishingg

maintenanc schedules far the generatingunits in the Pacl.

The Manager, Power Supply and Caardinatian shallccnsult periodically with the Manager, Accountingancf Manager, Of~ate tc insure that De gcals ofreliable and economic bulk electric: servfc arbefag maintained within. the exfs fag operatingcans~fats far Ne mural benefit oi'he Parti cf-pants.

'C9.7General Maaacter, Studi es

The General Manager, Studies shall report ta theAdmfnis ratfve Oirecwr and shall. supervise theStaf Engine~

Tne.General Manager, Studies is responsible farproviding technical assistance ta thc subcaarrit emand arrange fcr publicatiorr of all subcanmittereport.and studies. Aa appropriate Staff Engine rwill be assigned ta eel ac ive subccmmitw aadwill serve as Secretary, Oata Caardinatar and ReportCacr inatcr of the subcarmftta .

~ The GeneraT Manager, Studies shall pravide technicalsCdy suapcr far the Cener I Manager, Operations iaanalyzing and r pcr. ag sys~ dis~~rcanc s, rvfeefng existiag sysw cperatfcns for ~~- ndedratrfWaas or contingency maiaw~aace =ad deter-mination cr alt raatfve acian for these. problems.

The GeneraI i4anager, Studies shall be responsiblefor al1 Fc9P responses Co inquiries, reports, sur-veys, ctc. fran Local, State, and. F~eraI Agencies;Regional and ilational ReliabiIity Councils; andother organizations.

1 ~ ~ ~

'

C233-

~ ~

tsstasl+ AasaCACO

'

~ Satall V Osaasa OICISS$ ttasi ISO~ toaoolsloSASI

~CICCM

la so Nil(~ssa lail CIIK Aso

loose+4 A%los) MIKIast wasllsl toss st Collw\ soooIQO ~4 saasat ~ ColssltssstAsoo ACI

~wkAs at so aao IIII

~ Isaloaa oaaasl ~

Vlsalssat~ ~ ~ tasse Oaasslt

Kata lla Nal lao Oaaasll

loaaassl 4 Oatasllsaot

~AA

I ~

o mall>sstwlsal

Hs,l

a osassllKLos los

wssllIMIhei}O Osossaaatlsa

IcsA

a llslt~a444444

~assi% sslaaAsa ~

I saawAICKl.~

~Iassai ~ SAC aSWIsos~fall

Ill.I

~CssaallatWssoaa III4

~ SS as ~ I lao ta~ao 4 ' III

Kl,~

CassAA I Isaawlsalo~ssaacat oastlaaolLCC

~ICA

~ ssssclaoa taaalKAla Oaastoo loll

Ks.l

~oatoll4 ~ sossao

KaOVWI VstoooAIIKs.~

Kaa& Iaaoa ~ Wllalasa~slala OOSOaaaASC

IC ~ ~

~a as ISa a a II ~ Soa H4IIIO~+l.........

~srasls lsssssaalssa~ Saooollll

KLI LCI~IIOIICL IIIH1!IC

R Typical Paalina Agreements

TYPIC'L LINKTYPE'LORIO%

EI ECHOIC PQWB POOL PGREBiBT

TRIs Agrasmaea made aMs: day arbe&emwfMessetn:

I. RECITALS

The Canpanfes are engaged. in supplying electric utility serviceta the publfc in the State. of FIorfda.

, Each ~any rmagnfzed fez responsfbflf~g ta develop and~ improve its service"in every practicable way. AII of the

Companies now serve areas. that are developing rapidly and eachis.facM with. the prablan. cf pravfding far the mast ecanamicaldevelopnent and expansion af fts system in order ta me tanticipated g~N fn future loads.

In the past, the Ccmpanfes have ent red inta separate, in-dividual contra~ with each other and. with acgacmt elec rfc'tflftycancanfes cr fntercannec fan, of transmissian

facilit-

iess to assure emergency source of power and ta pravide farthe purchase, sale and ex&ange of firm power and surplusenergy. Pursuan ta these cantracts-, extensf ve physical

~ interconnections cf thefr tnnmissfon sys~ have be n can-struc~d ard are new in operation; - In re nt years, advancesfn engine ring t~lnclcc~,.and manafacturing techniques havepraduc d high voltage transmission equfpaent capable of trans-.porting greater quantfties of ele~caI aneray in an ecancmfc-al and practicable manner. Similarly, fmpravenents in thedesign of generating facfli i'es. make passible'he canst-.vctfanand ogeratfon af large and mare efficient generating units.These technic-I developments naw make passible the pooling cfbulk pctNer generatihg and transmission facilities and thei~

'"ardinat.doperation over wide geographic areas and ia cer-tain cases savings wfll result in the cas cf pravidingelec sar rfc ta the. Publfc.

Fac& wi 5 c~an neHs and pr biens, the Ccmpanfes havealready under >ken joint ac ian in deaifrrg wf > the prablarr c-.cmt''nufng ta p~fde ecan~c I and reliable servic ta '".e„"'blfc. w a g~p, they have jointly spcnsar d "e.FlcrfdaEI~c Power Cccrdfnat-'ng Gr up (,=CG). infs graua operatesas an fnfarmaI pacl ac"~aiishfng many of Ne benefits of aformal pacl.

—C235—

': ?n order ta utilfz the maximum advai~ges cf recent t chnicaldevelapments, the Ccmpanies believe it .desirable ta undertake.collaborative er=,art in the rfeld cf 'ie generation and trans-mission of hulk elec.rical energy. Sy pIanninq and coordina-ting the power praduc.fon resources ar the Caapanies with avfew ta carman usefulness, the Companies may be able ta attaineven greatar semrity and ecancmy af service. Nevertheless,each caapany will retain its separat corporate indentity andindivfdual f~cm in rendering service to the public withinfts respectfve area. Far these purpcses, and with theseIfmftatfons, this Agreement fs ac"crdinqly made in order taestablish a formal contractual cacrdinaticn to be known aq the"Flarida Electric Power Pool" (FOP).

„ET. UNQERTAKINGSE

ln ccnsfderation of: the prmrises and Ae mural under wkfaqsand covenants herein made, ft is hereby mutually agre d asfollows:

A. Cons ruc.ian. Ooeratian and Hafntenanc

Each Company shall construe , maintain and aperat ftsgenerating and tranmissian syst~ , fncludfng inter-ccnnectian.ties and carmunfcatfon facilities, fn a mannercansfs~t with the then mrrent Pool Generatfon Plan(which shall be a par- hereo= as Appendix A) and the thencurrent Pool Transmission Plan (which shall be a. parthereof's Appendix 8). These Plans, which will provide

. far coordinated, canstructian and aperatian of the hulkpcwer facilities of the Canpanfes, will be added ta thisAgreement and may be amended fran time ta time in acmrd-'nc . wi 0 the prac dure set forth fn Section F below.

E. !leneTfts

Ea& Ccmpany shall shar fn the beneffN, and pay itsshar of the casu, af caardinat d operations under thisAgreement fn accardanc with the ien nrrmt Peal Allac-tian Plan (which shall he a part he~f as Appendix C).Thfs plan will be added ta %is Agr~ent and may beamended fran time Ca time in ac"ardance with Sec ian Fbelow.

C. Addi.i anal Fac. 1ities

Each Company shzII ~s~.c. and pay for all generatiacs~tians, transmission lines and other facilities andequipment ~ithin its serac area, includinq iw por ..'an

af intercanne~ an facilities, as may be necessary taa~in W~e full benefiw of c"ordinated operations under'iis Aqr emend, anci exc pt in any ewe ~her other~isa

— C236-

speci fcally agr d, shall be the sole abner of suchfaci.li'ties, regardless of the extent used or the pur-poses af Dfs Aqr ment;

O. Records and Reaorw

Each Company shall keep all recards that may be nec ssaryfor efficient operation under this Aqr ment. Theserecords shall be kept in such form as. Ne KxemtfveCcamft~ may desiqnat and shall be available ta anyother Ccmpany on request. Each Ccmpany shall make allrepor w requested by the Exemtfve Ccamft~ ~f thin thetime reques M..E. 'eculatarr AuthaÃzatfon

This Agrement is subject ta all'equfsf e goverranentalapprovals, and each Company shall'iligently se k allnecessary nguIatary authorization far this Agrement andthe performanc hereof, incIudfng all its plans, appendfcm,supp I ements, and amendments.

F. Executf re Ccamf ..ee

Each Ccmpany shall appoint one af its of fcers as itsrepresentative on the Executfve Carmf tt~, and his suc-c ssar from time ta tfme as app~rfat . A member of theCcmmft may appoint a substitute ta ac for him at any~ng cf the Ccmnfttee. The Ex~tive Ccmmittze shallbe responsible far the stucfy of the coordinated'perations

'f.the generaticn and transmfssfan systems of the membersand the formulation, as scan as pra~cable, cf a PealGeaeratfon Plan, a Pool Transmission Plan, and a PoolAllocation Plan (herefnaf r refer~ ta callec-ively asthe Plans). Afar the Plans have bem unanimauslyappraved. by the Exemtfve Camnf t e, the Plans shall beautcmatfcally incarparatad into this Agr ment as Aapen-dfcm A;S. and C respectively, Any Plans may be amendedand. supplement d in ~rftfag fran tfme ta tfme by theunanimous aqrement of the Exemtfve Committee and upansuch changes Appendices A, S, or C shall be automatic llyamended ta conform ta the then cur. wt Plans. The signa-tures of ~ wmen ta any Plan, suppleaent or amend-'ent shall be canclusire evidence of approval. TneExemtfve Ccamft~~ shall meet once each manth and atsuN other times as the Chairman may det mine. oneExeetive Cmii~~e may execute such additional appen-dfcm and adap- such rules and procedure and establishsuch addi tfcnai ~t~s as wf'.I assist it in carryinqout fw r spcnsfbilitfes under Nfs Aqr ment, whfcN mayinclude an Ope~cinq. Cmit=~ ta superrise ".e day--a-day operaticns ~fthia ".e frmarcrk cf Ne approvedPlans

G. E'f c~ cn Other Acrements

(I) Setwe n Tne Ccmaanfess

Qther agr ments betwe n t~a ar mare cmpanies relatir.gta the fnt rccnnectfon of sys~ or ta the sale andtrans er oa electrical energy fn effec prior ta the

; approval of initial Plans referref to in Section F abaveshall rmafn in full force and effec . E ch Ccrripanycovenant, however'that after the fnftfa1 Plans referredta fn Sec fan F abave "ave be n approved, it will nat,without the written consent of a.ll the other Caapanfes,enter inta any nm obligations that would conflict withthe obligations under this aqrement. Upan wrft n

'consent of a11 ctenbers, any aqrements, whenever execut d,,may be incorporated inta this Aqrement as an Appendfx

. and adminfs ~red by the Exemtfve Carrnf tt~.(2) Between a Canaan and Others s'(at Parties

ta This Aarement0

This Agrement shall nat af ec the cbliqatfcn of anyCanpany under any contract beWe~ that Ccmpany andothers nat parties ta this Agrement fn effect prior. tothe approval af the fnitfal Plans referrei ta in Sec icnF. abave. Kach Canpany covenants, however,. that after theinitial P1ans refrrrH to fn See~4cn F abave. have beenapproved f t wi11 not, without the. wrf wn cansent of allthe other Caapanfes, enter fnta any oblfgatfan withothers hara parties ta this Aqrement whase fndfvfdual

~ sys~ capabf If~i fs fn excess of 80 Sl that wauld (a)conflie with its "obligations under thfs Aqremen or (b)pass benef'its received under Dis Agrement ta such othersystsn in a way that would adversely affect the rights ofany ather Company under this Agrement.

H 7am

~ The E~ectfve Oat af this Aqrement is

IAgrement or unless extended fn accardanc„o with Sectian Ibelow

Kx ~nsian

This Aq~ent nay be ex- nded rcr year per 'cdsny tte unansmuus sr t: n cessant ni~ai sar.-',es:u neAqr meant

J. Rich a N.hdrew

Any Mpany may ~fthdraw fran Dfs Aqr ment at any fee

- C238-

by giving writ ~n rtotic to every other Canpany at leastthree years fn advance oi'uch wfthdrawaI. A".t r thef'omulation of the Plans r averred to in Section F above,but prior to their approval, fi any Canpany concludesthat participation fn such Plans is not fn fts bestinterests, it may withdraw ham this Ag~ent by givingwritt n rtotic to. every other Ccmpany at least sfxcy daysfn advanc of such wfthdrawal. Any Company that withdrys frcm thfs Agr~ent'fn accordance with this sectionshall not be liable to any other Company f'r any damagesthat. ft may sustain as a r suit oi such withdrawaIprovided that the withdrawing Ccmpany continues to fuI-fill the obligations inmrred by it under this Agr mentprior to such notic .

K. Maivers

Any waiver at any fme by a Canpany oi fts rfghts withrespect to a default by any other Ccapany under t!ifsAgreement shall not be deemed a waiver with .respect toany subsequent defauTt.

L. Anendment

This Agreement may not be changed, amended, or supple-mented except by an fnstrument fn writing signed by allp~~ es to this Agreement or, fa case of Appendic~w ,signed by the members oi. the Exemtive Ccmmft ina~rdanca with, the provisions oi Sec ion' above.

M. ?rtdeoendent Contrac.ors

Hy entorfnq inta thfs Aqr meat for contraMwaI coordin-ation or'power generation and ~smission facilfties',the Companies shall not beche partners, but, as to e~chother and to third persons,'he Canpanies shall remainindependent c".ntrac.ors in all matters relating to thisAgr~nt.. This Agreement is not intended to create anyliabili g on Qe part oi'ny Company to anyone rtot aparty to this Agreement.

N. Asslans

This Agr ment shall enure to the beneri~ or, be bindingupon, the successors and assigns of the rwpective partiesher to, but rto assignment (other than one mace to acorporation simultaneously ac"„uiring subs ~ntially allle assam o. ~he assignirtq par".g) shall be made by arty

par."J net to wi "bout Ne written consent oi he others.

0. Local Law

This contract shall he de eed a contact made under Oelaws oi'he St of Florida.

Iif M~ii ESS 'AHrREQF each oi the par fes has causedthese presents to he signed fn fts name and on fts behalfhy fts President, attested hy fts Secretary, both heingduly authorized, all as oi the day and year f'frst abavewri tten.

TMs day af .

— C240—

TYPTCAL LLNX TYPE

FLQRlOA ELeCVTC PC<6 POOL AGREBBT

APP lOIX A

POOL Gc;IEBATiOH PLN

A. PIJR)llSE

The purpase of this Appendix A fs ta pravfde a continuing caapre-hensive plan fcr providing adequate generating facflfties 'by the.Companies and the cperatfcn of such acili ies ta me t the powersupply net of the Ccmpanies operating as a Peal.

8. POOL GBIHATTlM FACILIi I™iS

81. Es imat d Racuf amounts

The Executive CcInmftt e shall establish the capacfty requfrenentscf the Pool far nat less than 15 years in the future. These re-qufrenents wfll be based upon ncarmendatfcns fran the. Planning andEngine ring Cannf t~.82. Pool Generation Addf tfcn Plan

The Exmtfve Ccanft shall es&Ifsh a Pool Generatfcn, AdditionPlan based upon re:camendatfcns ~ Ce Planning and Engine ringCalf ttze for nct less than 15 years in the future and revise andex~wad it e 0 year sa that there fs always a current Pool Genera-tion Addfticn Plan to meet the nrrmt 15 year forecast of Paalrequfrements. In adapting such a plan, the Exe~~tfve Ccmdt~~eshall fallacy the basic prfncfpTe'that the fnswl1atfan cf addi-tional generating capacity shculd be related. ta the ccmafned loadscf the interconnected systems af the Ccmaanies. Ea& addi tfanaIgenera fng unit shall be, insofar as prac icable:

(a) The largest sf z that the existing cf raanstancm can)ustf fy)

(b) Timed ta meet the requf relents of Ne aebfned loads, and

(c) S&eduIed, .Iccated and owned in accardanc with aoac "rs:

(i) ~i preferr d lccatfcn a~ the cwnfnq Canpany "aserve the pr spec.ive c~bined loads, eithe. in anexfs-ing cr nev sf, and

(if) Staggering ins ~IIatfcns sa that in the Icng run nocne Canaany will have an unr ascnable c pi™tal fnves~ent

- C241-

made fcr the benefit of others and aa one Canpany will bedep'endent an other Companies ar dfsprcportfcnate amountcf its capacity ~ufrments.

The Plan, among other things, shall set far>, far each o7 theyears covered, the Partfcfpatfon Units ta be construe.M.

83. Notice of Obligations

The Exemtfve Canmf ttee shall notify. eath Campany promptly„af theahligatfans af all Companies under the m~t Pool Gener atfonAddition Plan. The notic sha11:

(a) Specffy the Participation Unit ar Units,'f any, e ch'ompanyfs obligated ta construct, including (i) approxi-

mate sfze; (if) Iccatfan, (ifi) date that the Par.ici-.. patian Unit ar Units shall be scheduled.far Ccamercfal

Operatfcn, (fv) approximat cas, and (v) expected per-fcrmanc, and . I

(b) inform eaN Ccnpany cf fts (i) approximate capacity.allacaticn and charge in each Parti cfpatfon Unit, and(if) the amcunt af the reserve, upon ~hich the al,locationwas based.

84. Canaleticn of Unit

Upon rec ipt of'uch notfc .m oblfgatfon, the cwnfng Canpany shallproc ed promptly ta design and construct the nqufred facilities inaccardanc with the notice of obligation. The owning Company willimmediately natify the Executive Ccmmft.e of any change in can-st. zMcn schedule and when the'ew generating unf t is placed inCaanercial Operatfcn Af~~r the unft is placed fn CarmercfalOperation, czpacf ty and ene~~ will be available ta particfpatingCcmpanfes fn acccr~ce with the pr viously de+~mined Pool Alloca.-tion Plan. Ther ~fter, aaprapriate initial payments or AnnualFixed Capital Charges shall be made co an estimated basis until thecapabflity of Ne Pa~cfpatfcn Unit ts. established. As saon asprac.fcable the awning Ccmpany will determine the ac~waI capabilityof suN unit and nctf=y the Executive Carmf t fn wrfing. TheExe~fve Cannft e shall then notify each Ccmpany of Ne change,if any, in allocations af fts casts and capacf ty, together withsu& r tr."ac-ive acgustzents as are required =cr payments madeduring the interim period.

SS. Par ..'cicatf cn Unit

A generating unit fnswTIed in ac-ar".ance with the Peal CeneratfcnAddition Plan shall be owned, sub4ec" ta ".e lien of any mortgage,by "Ne Cmany an wncse sysw i is installed znd shall be des-fgnatH as a Par '.cfpatfca Unit during any period wnen par".fons cf

34- C242-

its c pacity are allccat d to a Company (cr Ccmpanies) oCher thanthe owning Canpany. A unit shall c ase tc be a Participation Unitwnen its entir capacity fs allocated by the Becutfve Carlotta tcsatisfy the reserve r~uirenents cf'he owning Company.

Ooeratfons

Cl. The Company ormfng a Participation Unit shall deliver .~uIIcontracted capacity and energy, as scheduled by the purchasing

'cmpany,subject to the provisions cf Appendix C, at fntercan-nection paint or points oi the cwnfng Company's hays~. The cwningCanpany shall be caapensated for losses, as provided in Appendix 8;

The owning Company shall:

(a). Operate and maintain the Participation Unft at'all timesfn accordance with good utility operating practice, and

(b) Ccoperata, when practi'cable, with Canpanies particfpa ingfn su& unit with respect. ta the'peratfon and schedulingof mafntwance on the unit, orovided, however, that theCanpany nnnfng De enft shall have she~rina resnnnsf-bility, f'cr and control over.fts operation and mafnten-ancee

CZ. The Caapanfes participating in a Participaticn Uni shallfurnish the owning Canaany a schedule or a 'c pacity w be madeavailable and energy to be delivered in such manner as may beagr d upon fran tfme to time, exit that such schedules may bechanged under proc<ures established by the Operating Ccnmft

C3. The cwning Ccmpany may utilize any unscheduled capacity in thePar.icipation Unit, untf1 such allocated capacity fs called;or bythe par "fcfpatfng Companies.

C4. Capacity and enero~ generat d by Ne owning Ccmpany may beproduc& by the rec~nized method or fncrmentaI loading withinsu& procedures as es&~Iished by the Operating Ccmmfttee.

CS. It is the fntant ot'his Agr ment that nc Company shall beobligated to deIfver kflovars. roz. the benefit eP another. Ccmpany;also Pat no Ccmpany shall be obligated to receive kilcvars when todo sa might fntcduce objectionable operating conditions on itssysw. The Operating Cadent+ shall be reponsibIe ror eszb-Ifshing and mafntafnfng. cur. nt opera fng proc dures and schedulesfn ape~ to carjing kilcvar loads by one sys~ -or r%e othersin order tc semr ade,uat service and e~ncmfcaI use af theacilf t'.es in car-.ifng kilcvar loads. tn discharging such duties,

"he Operating Cm't-ee shall rmgnfze ~hat in the ~ansmfssion ordelivery m power and energy he~ander, the carrjing or kilcvarloads by any o= the members m'he Pool, fn haracny wi > sound

—C243—

engine ring principles af transmissian cperatian with the sys~~fntercannec d, fs subject ta numerous variables contingent upon .

loading and operating conditions 'existing sfmultaneously an thesys ~ af the Ccmaanies. The current operating procedures andschedules, ar kilavar exchange shall be in accord with such prin-ciples and shall require each of the Companies ta carry kflovarloads at such times and in such amounts as will be equitable ta allCcmpanf es.

. Peal Reserve Caoacf

01. Ea& Ccmpany may utfliz reserve capacity of the Paol forscheduled maintenanc cutages that'create a deficiency of reserves.wi Din the Ccmpany. Such autages shall be scheduled in ac"ardancewith provisions af Section j af this Appendix A., The Pool obliga-tion ta supply such r serve ta a Ccmpany shall be dfvfdeck equitablyamong the other Companies fn accordance with criteria establfshedby the Qperatfng Camdtwe.

02. Each. Ccmpany may utflfz any available reserve capacity.af thePool fn an energency. The Pool ablfgation ta supply such reset seta a Caapany suf ering an emergency shall be divided equitablyamong the other Ccmpanfes, in ac"ardanc with crf teria esublfshed .by .the Cperatfng Ccnrnfttee. Ef mare than ane Canaany is suf eringan energency, the avaflable Pool reserve capacity will be dividedamong su& Ccmpanies in accardanc with such crit rfa.Ef any Ccmpany (ar Companies) suffers an emergency (ar emergencies)of such magnitude or duration that ser rfc r liability af the Pealas a whale, cr of'ny af'he Companies, fs placed in jepoardy andr lief'annot be obtained fram wf.thfn,the. Pool. Men each Ccmaanysuf ering'Re emergency shall ac. fnmedfat Q- to rwwre servicerelfability by, df rectly ar indirec ly, arranging for additionalcapaci.g fran scurf cutsfde the Peal. Mhen.candftfans are suchthat lead must be reduced, reduc ian shall be made an the systemor sys~) of the Company ( or Canpanies) suffering the emergencyar mergencf es).

M. Payment ror. reserve c pacity supplfed beyond a 24-haur perioby ane ~any far another Ccmpany shall be as set forth inAppendix C. Energy assccfat d with pool reserve capacity suppliedby ane Company far another Ccmpany at any time shall be paid rar bythe re:efvfng Ccmpany at the ratm set for"5 in Appendix C.

Soinnirtc Reset Ie

Spfnnirg Reserve shall'e allccatad anang the C~anfes fn anequi ~~le manner. L'(ew ar r vised plans cr schedules far SoinnincReser Ie allccatian shall be pr pard as r qui~ in re ccn'tfon "-.Danced ccnditicns in the Peal. The Spinninc Reserve alan shallp~fde far adequat prat =ion ta se. ifce r IiabfIi~j. To thisend, full r ccgnitian shall be gfven ta exfsNing emergency acre~mmes be~~em C~anies and others rtat menbers of Ne Peal and ta

— C244-

any future emergency arrangenents that may develop beSe n Ccm-panfes and other companies cr paals. The plan shall autharizdeviations under emergency or unusual conditions, praviding safddeviations ar wfthfn limitations set by the Executive Ccmrnftte .Any Ccmpany may, for r asans of economy or for other reasons,arrange for anccher Ccmpany or a canpany nat a Pool menber taprovide all or any part of such Ccmpany's Spinning Reserve quota,provided that the Spinning Reserve so arranged fcr will satisfy thePeal's Spinning Reserve'nqufmnents, as determined by the Opera- .

tfng Cannittae, as ff it were-available fran such Canpany's cwncapacity resources. Payment for Spinning Reser re capacity suppliedby cne Ccmpany for another shall be as set, forth fn Appendfx C.

Ecancrnv Intendance

F1. It fs rec gnized that fram tfme ta time each cf the Ccmpanieswill have electric energy availab.le fr@a surplus capacf ty on itscwn system and fran source outside its own system, her fnaf~rcalled Kcancmy Knergy, and that such. Kcancmy Ener~ can be suppliedta other Cmpanfes at a cast that wfll result in operating savings.To prcmote the ecancmy of ele~rfc pcwer supply and to achieveef fcfant'utilizatfcn cf generating capacity, any Canpany, when-ever ft in fts cwn )udgment deternfnes Kcancmy Energy fs available,shall of,er Kcancmy Energy ta cne cr more. of the other Ccmpanf sPranptly upon rec ipt of any su& offer, any Company which can makeuse of Kcancmy Energy shaI.I nctffy the offering Ccmpany of theexit ta whfch it desf res ta use such Kcancmy Energy, andschedules pravfding the periods and extant. cf use shall be mutuallyagreei upon.

FZ. Kcancmy Ene~ supplied hereun'der shall be cansi dered asdisplacing Iectric energy that otherwise wculd have been generatedby the re oiving Ccmaany at fts cwn ele~c generating stations or.any electrfc energy r ~ fved frcm sources subject ta dfsplacanentas agre& ta by the Ccmpanies. It may be fnterruptad at any time.Kcancmy, Energy shall be settled ar at rates which shall be pr =dfcatM upon the principle that sa'vings resulting fran'he use ofKcancmy Knergy shall be dfvided be&em the Carpanfes as equally as.is pr c icable. Prior ta any transac icn involving the sale andpurchase of K ncmy Ene~, autharfzei r presantatfves of theCompanies shall de+ rnrine and agre upcn the rate applfcable tasu& tr8mac-f cn.

Ncndf so 1 accent Enercv

Gl. It fs Rr Her re~gnfz M that rrcm time ta time ac~~fons ~iIIarise when tmsac .ons under Section F abave will be fmar actic-aale, but a" z.'re same time one of the canpanf es may have electricenergy~ j,'he~fnaf- r c lied Acndispiacmen Energy) whim it iswillfng ta make avaflable ~ surplus c pzci.j cn its own systemand/cr frcm source~ outside its cwn system ~".at an be utiIizedadvantageously fcr specified intarraIs by the other C~anies. It

8-37

shall be the r spansfbiIfty af the Ccmpany desiring the rec ipt ofNcndfsplacment Energy ta initiate the receipt and delivery cr suchenerc~. ~ne Company desiring such r eipt of energy shall informthe other Ccmaany of the extant ta which it desfras ta use Nan-displacement ~bargy, and, whenever in iw cwn judgment such otherCompany determines that it has Ncndisplacement energy available,schedules providing the periods and ext nt of use shall be mutuallyag~ 'upon..

62. Nandfsplacment Energy del fve~ hereunder shall be set Iedfar by either of the follcwing methods, at the option of thedelivering Ccmpany:

\(a) At a rata per kilowatt-hour equal to the calculatedaverage production cast cf the highest cast generatingunits being used ta praduca.the enerc~ required ta makethe delivery - such cast being as o the delivery paints,plus casts incurred in sMMng addfticnal unfts'f sameare requir d ta make the deliver J, plus 10 of the abavekflcwat:hour.and starting casu; or

(h) Sy the return of'quivalent energy.

H. Dfs"atchina

ine dfspaMing cr sys~ cperating grcups will each cantinue tacperata their ~pec ive sys~ in ac"ardanc 4th scund cperatinapra~cas provfding fcr maximum continuity af service and ecancmyof operation. Ea& graup wiII, however, recagnfze the impcrtancaf sarvic raqufrments cf the Peal as a whale and will cooper zan a PcaT basis valuntarily and also in accardance with ins..vc-tfans fssued fry time ta time by the Operatfng CcIrmft

Coordinated bfafnt nanc and Sch'eduled Uni t Outgoes

Far the mast efVfcient operation under this Agr meat maint nanceand other scheduled cutages far generating units of the Canpaniesshall be ccardinatH ta the fulles exit pra&caI. To ac"aa-plish this ft shall be the duty cf the Operating Carmitta taprepare. not later than October I of each year," an annual schedulecf maint ~anc cutages far the'generaring

unfed

of hie Canaanies.ar the nex- year and a tmtative. schedule far the suc" Ming rcur .

years using the principle ~iat adequat reser res will be maint inedat all times. %hen prapar&, such schedules shall be adhere:a byall Canaanies except as altar d by t!ie Operating Camittae =armer ency cutaces af aqui pnenz cr ct!ier r m~on lustf fiable ta ""'eOperzting Cwf i ~.

J. Kffer~ive Oate

For purposes of Section G of the F1orida Hectric Paver Pool Agr e-vent dat d , Che date o the. aporoval of thisAppendix is it is intended -.hat the pro-visions of Chis ppenct~x sna be placed in effect as soon aspractical, and the det raination of such effective daCes shall bemade by the Exacctive Cmnni ttaeg,rav$ ded, hcwever r shat a11 Crc-visicns shail be Ciacad in arfect nnt 1st r tnan

('iota: Refer co Apoendix c". for defined tares)

—C247—

TYPICAL LINK TYPE

FMREQA ~ ""CHIC PQMH PQQL AGREE".BlT

APP NOIX 8

KOL TRAt&~IISSION PLAN

A. Pumase

The Purpose of this Appendix 8 fs ta provide a contfnufng compre-hensive plan fcr providing and operating adequate transmissionfacf I fties, interconnection ties, caanunf cation faci I f ties. andother acilitfes necessary or desirable ta enable the Ccmpanfes tame t their obligations and share fn the benefits af operationsunder Appendix A.

B. Pool Transmf ssian Facf lities

81. Estimated Recui ~entsThe Exeastfve Carmf ~ ~ shall estahlfsh the ~ufrements far trans-missicn facilities, fntercannectf cn tfes, ccmmunf cation faci I i tiesand other facflftfeS requfred for successful operation cf the PoolThese requirements ~fII be based cn-recarraendatfcns of the Planningand Engineering Canaf ttae.

82.. Pool Transmf ssfan Addi tian Plan

The Exemtfve Ccnnf~i~ shall esMIfsh a Pcol Transmfssfcn Addi-tion Plan based upcn recarmendatfons af the Plannfng and Engfn-e ring Camft far not less than IS years fn the future andrevise and. axed it each year sa that there is always a mr. ntPool Transaissfcn Addition Plan ta meet the current. IS year far~cast of Pool requf renents.

In adapting such plan the Executfve Ccmmf —.ee shall folic~ thebasic principle that facflftfes ef II be installed at the lacatiansand at the times that wfII best enable the. Ccmpanies ta meet theirobligations and shar equitably in the.Pool beneffe. The Execu-tive Caamit~ shall also r cagnfzs as basic the principle that anyCanpany ~hfA builds a, transmission facility classffied efther~hoIIy or. partially as a Paal Transmission Facility shall be reim-bursed far a fair prcacr.ian cf the Annual Fixed Caoital Chargesand coeraticn and mafntmanc expenses af that facility by otherCancanfes until such t me as the Executive C~i~~~e determines

Na~ the cwning Company would cthe~isa have r .u-'r d "1e sameequival ent faci I f -.g.

C. Pool Tr nmissicn Facilities

Pool Trwsmfssfcn Facflftfas ar Nose ~nsmissfcn facilfties

— C248-

designat d as such hy he Executive Carmittee. The ExemtiveCannf t may designate as Paal Trans@i ssf cn Facil ities fntercan-nectians with caapanfes outside the Peal construct d fcr Ne

'henei'ft of the Paol.k

The cwnfng Canpany may make use af a PaoI,Transafssfan Facility farother than Pool transac.fans with prior approval af the ExecutiveCamftte .

Should the awning Company make use cf such facility for such pur-pose, the Executive Cotta shall establish what par, f any,shculd na longer he classified as a Peal Transmission Facility.

Additianal Peal Transmissfan Facilities shall he provided hy eachCompany in accardanc with the then current Paol TransmissianAdditfan Plan and notic of 'abligatfans shall be gfven to- each~pany hy the Qamtfve Camitt e, pursuant ta Section 0 belcw.The Paol Transmission Facflf ties are tc he awned, subje t ta theIfen cf any mar.gage, by the Ccmpanfes in whose systems they ar

, ins wl led.

Annual Ffxed Capital Charges (SuppIenent I, Appendix C) pIus aper-atfcn. and maintenance expenses assaciatef wfth Pool TranmissfanFacilities, or par fcns ther af, shall be allacat& among theCanpanfes as provided fcr in Appendix C.

0. Hatfc af Ohlfcatfons

01. The Exemtfve Cmxfttee shall notify the Canpanies of iefrrespeWfve cbligatians under the Peal Tranmissian Addf tian Plan.Tne notf cm m the Canpanfes shall be made at such tfmes as:

(a) the Pool Transmission Addftian Plan shall have been, adaptM ar revised, and

(b) c!ianges in Peal Transmission Facflftfes previauslydesigna- d became erYec-f ve.

02 ilatf~ pursuant ta paragraph (a) aT S~ian 01 shall specf fythe lines and other facilities, if any, includfng existing facilf-tfes, which each C~any is abIfgated ta c"ns mct andlar maintainand cperate as desi gnatad Peal Transmission Facilitfas.

02 I Fcr facflfties ta be construe.ad the notice shall

spiffy:

(a) Lac tfcn

(b) Oesign voltage, t. ns-.armer capacity, linecapaci~j, met ring, and ether fmpa&antdesign c"nsfderatfans,

- C249-9W1

designated as such by the Executive Calf ttae. The ExecutiveCalf may designate as Pcol Transmfssfcn Facilities int rcan-nectfcns with companies outside the Peal constructed iar thebeneiit cf the Pool.

The awning Company may make use af a Pool Transmission Facility forother than Pool transactfcns with prior approval of the ExecutiveCalf ttm.Should the awning Canaany make use cv such iacilfty far such pur-pose, the Exemtfve Cannf itae shall establish wha part; if any,shculd no laager be classiifed as a Paol Transmfssfan Facility.Additional Pool Transmission Facilitfes shall be provided by eachCanpany in accordanc wf th the then current Pool TransmissianAddition Plan and notice of cblfgatians shall be given ta eachCanpany by the Exemtfve Ccamf ttae, pursuant to Section 0 belcw.The. Pool Transmission Facilities are tc be awned, subject ta thelien ci any mortgage, by the Canpanfes fn whose systans they arefns ta1 Ied.

Annual Fixed Capital Charges .(Supplenent I, Appendix C) pIus aper-aticn and mafntenanc expenses assaciat d with Paol TransmissionFacilities, cr portions therear, sha11 be allocated among theCanpanfes as provided fcr in Appendfx C.

0. Hotfce af Qbl fa'atf cns

01. The Exemtfve Camrftta shall notify the Companies ci theirr wpective cbligatians under the Peal Transmission Addition Plan.The notfcm to the Ccmpanfes shall be made at such times as:

(a) the Pool Tr'anmrfssfcn Addition Plan shall have beenadapted or r vfsed, and

(b) changes fn Pool Transmission Facili fes prevfcusIydesignat d became ei'fec.ive.

02. Hotic s. pursuant ta paragraph (a) ci Section 01 shall speci=ythe lines and other iacilfties, ff any, fncludiag existing

facilit-

iess, ~hich each Canpany fs cbIfgatzd 4 construct and(or maint fnand operate as designated Paal. Tramnissfan Facilities.

02.1 'or facilities to be constructed the notice shallspeci fy:

(a) Locatf cn

(b) Oesfcn voltage Orms-.a~r capacity, linecapaci y, me+wring, and ather fmaar.antdesign c"nsid r tfcns,

C250

02.2

(c) Oat ta be available for servic,

(d), Estfma+ d cas ,

(e) The estimated partfon cr prcparticn of eachfacility which will be designated as a PoolTransmission Faci lity, and,

(f) The estfmated cast ta each Ccmpany cf AnnualFixed Capital Charges and expenses of thatportion cr prapartfcn of the Transmi.ssianfacflfty designated as a Peal TransmissionFaci1 fty.

Far exfstina acilities the notice shall specify:

(a) The parti an ar proportion cf each facf lity des-fgnated as a Pool Transmission Facfiftj, and

(b) The cast Ca each'Ccmpany of the Annual FixedCapital Charges and expenses cf Qe allcc ble

, portion or prapcrticn cf each facility as. determined by applicatfcn of the provisions cr

Appendix C.

03. Natfcm pursuant ta paragraph (b) fn Section .OI shall specify:

(a) The portion or proportion of each facfli g designated. as a Pool Transmfssfcn Facility, and

(5) The particfpatfcn by each Canpany in the Annual FixedCapftal Charges and expenses cf the allocabl'e pcr.iancr proper.fcn of e ch racflfty as deternfned by appli-catfcn cf the pravisicns of Appendix C.

I

Canal etf cn of Facf I ftfes

Upon rec ipt of such natfc cf chlfgatian, the owning Ccmpany (czCcmpanies) shall prac d'prcmptIy ta 'design and cans ruc- theaequi~ facfiftfes in accordance with the notice cf cbligatfon.The cwning Ccmpany (ar Companies) will immediately natf ry theExemtfve C~tta or any Ranges in cansi.uc fan schedule andwhen Pool Transmissfcn Facilities are placed fn Ccmnercfal Opera-Can. 'Den su& facflfty is ylac d in CcmaercfaI Operation, i™shall be available for Poal servic .

Thereafter, aparaariata fnftfa,l'ayments cf Annual Fixed CapitaiCiar,es shall be nade cn an ~mismated basis untfI '".e ac="al c"szdata is avaflaale. The owning Ccmaany (ar Companies) shall pr parea cas-. caaaletfcn r part, tcgether wf th a calnlatfcn cf '".e AnnualFixed Caaitai charges whim ar„applicable Ner ta, and shall -ilet.".is infer..ztfcn wiC the ~emtive Cmft-«as scan as prac=fa"'Ie.

— C251—

Af~~r de becutfve Ccrrnf «~e appraves the calculaticn cf theAnnual Fixed Capital Char,es, it shall allocate "'ren among theCanpanies in ac"ardance with Appendix C, together with such r traac.ive adjustments as ar r~uired far payments made during thefn.crim period.

Coeratfcn and Maintenance

Bach Company shall aperat and maintain the PooI TransmissfcnFacilities, and other lines, fntercannectfan ties, and carmuni-icatfcn faciIftfes fn fts systaa in a manner consistent with goadutiTity cperatfng practfc .

Separate recoHm wilT be kept'y east Ccmpany of operating andmaintenance expenses or fndfvidual Pool Transmissicn Facflitfes fnf a sys~~. These records shall be submitted to the ExecutiveCcamtt« to be used fn de@ rnrinfng payments to be made by theCompanies.

Maintenance and other scheduled cutages of Pool Transmission Facil-fties shall be specified by the Operating Canmfttee upon applfca-tian of Ne cwning Canpany.

Na>fthsmdfng a Her provisions, the Caapany awning such facili-ties shall have the final r wponsfbflfty for and control over thecperatfan and mafntanancs.

Fllarfna cf Casts'

Lach Company that cwns Pool Transmission facfli ies shall be r im-bursed fn accordance with Appendix C for a. proportionate 'part a.the Annual Fixed Capf taI Charges and cperating and mafntmanceexpenses on the portions ar proportions cf thase facilities .«hfch .

ar designated as Pool Transmfssfan Facilities. 1n determiningeaN Ccmpany's par of such Annual Fixed Capi wl Charges, cperatfcnexpenses and maintmance expenses, the awning many shall bearfts propo~anat part

Cacacit'r and =we~ Lass Canaensatian

me Icssas assccfatad wf D. the transmission af capacity and er !rgyeither within the sys~ cf the sending Canaany ar fn the system ofan intermediate Ccmpany, will be borne by the r ceiving Company.Compensaticn ar sum lasses will be accanplished by schedulingcafncfdent I deIivery of less rmensatfcn.

- C252-

Kf ective Oa

Fcr purpcses ci'ec fcn 6 ci'he Flcrfda Electrfc Pever Pco1 Agr =ment dated , the date c$ the apprcval ci thisAppendix is lt is int nded that Che prcvfsicns

and the de~~rafnat''cn cf such effec fve dat s shall be made by theKsenntfve Cnnnfa e, erevfded havever that a11 prnvfsfnns shallhe plat& fn rfet. nnt later dran

(Hcte Refer Ca Appendix F. -,cr defined Cams)

— C253-

TYPICAL LLHK TYPE

R.ORIOA B=CTRIC PQ'MB PQQL AGRESBiT

APPBiQIX C

PQQL ALLOCATION PEN

A. Puraase

The purpose of this Appendix C fs ta set forth the aITccatfon ofcosM af operation under the Pool Generation Plan, Appendfx A, andNe Pacl Transmission Plan, Appendix S, in order that the Ccmpanfes

'fII equi MIy share the beneff u fram the Pool.

8.. APPBIQIX A Allocations

81. Caaacf tv Al1acatian

81.1 Capacity.allacaticn w ca& Ccmpany in all Par fcfpatfanUnits shall be an an equf~~ le basis of reserve as det minedby the Exemtfve Ccmnit- e.

BL.Z Lf, at any time, the Executive Caanitta ascerwins tha+the then ermt Paal Ceneratfan Addition Plan has provided crwf 11 provide reserve caaarfty subs ntially above or below thea~a1 requirenents of the Paal, it may adjust capacity allcca-ticns in Par icfpatfan Units and/cr autharf ze ane or moreCanpanfes to make. arranqements with canpanfes, not mmhers afRe Florida. Elec rfc Power Pool ar with other pcwer pacls forthe purchase ar. sale of capacity. The expenses and. benefitscf such transac.fans shall be shared equitably amcnq the~anf es.

81.3 If, at any time, the Executive Ccrmftt asc rtains thatcapacity allacatian amanq the Canpanfes fs inequitable, incases such as a Ccmpany's errors in load farecaasz, capabilityfar casu, ar any similar r ascns, the Executive Carmftw maymake su& adjustments, fncludfng re~ac ive allacatians (natto exc ed Z4 rznths) andlar payments, as ft dms equitable.

81.4 . I. the. net capability af a Participation Unit is reducedbelow the scheduIed aIIccatfcn m >e oar icipatfnq Canpaniesbe~>use af failur ar fac;Iities cr gOer valid r~~ons, thereduc d output shall be prarat d anoaq the par. cfpatfncC~anfes an the r tio af e ch Canaany's allcc t d par-.fci-patfcn:a the sum of such aIIoca~-'ans.

Bl.:" Ourinq liqht load per '.ads an Ne sys"m a-: ~he avnincmany ~hen ~We Paricfpatfon Unit is Iaaded at ar near i+mfnfaam lead, each par:ic-'patfnq Canpany shall, ir r „uested

— C254-

ta da so by the'owning Ccmpany, schedule nat Tess than its proraM shar cf the minimum lead cr such Partfcfpatfon Unit. Atthe ~est of a parnfcfpatfng Canpany, the cwning Ccmpany mayat its discretion r„duc or relieve the participating Ccmpany(or Ccmpanfes) of this coligatian at any time.

Participation Unit Cacacitv Charces

92.1 The purchasing Ccmpany shall pay the awning Ccmpany at a.rate per kflcwat» equal ta the weighted average of the AnnualFixed Capital Charges per kflcwat- on the mast rec nt partfcf-pating s~aa electric generating unit previausly fns~iIIed cn.ca& of the Canpanfes systems exc pt that prior ta the fnftialfnstal lathan of a Parti cfpatf cn Unit an the system of a Ccmpany,the unit or such Ccmpany ta be used fn this caImlatfcn shallbe designated by the Executive Cannftw . ine formula tc be.used far this canputatfcn fs.shown in Supplement I of this /Appendix C. In caIculatfng such. charges of each such unit thetatal fnves~t of such unft shall include all charges madetc the present Federal Power Carmfssfcn (FPC) capital accaunts310, 311, 312, 314,315, and 316 fcr steam stations, ar similarFPC accounts far nuclear stations. In addition ta the abcveace"unts, the fnvesMent shall fnelude the cast cf the mainpower transfarners and associated equipment neck~sary tadeliver the unit's output ta the high voltage bus, (FPC capf talaccount 353). The charges made to Nese accounts shall inclu"general overhead and. admfnfs ratfve casu, any local chargesmade frr addition ta the engineerfng contractor ar sub-contractorscharges cn the prospect, int res during ccnstructfon and allother charges praperly classified tc. the abave FPC acwunw.

To cbtafn 4Ne carrectad total cast cf' Participation Unit,adjustments shall be made, ff nqufref, tc r fleet the unit'sprcportionat share of expendi~res made for mar than cneunit at tha sf ~. The casts assccfat d with land, landrlgh&, landscaping, sit preparation, roads, admfnfs~tfcnbuilding, including laboratory, shops and equfpnent, r af lrcadfacilities, cooling pand ( if bu$ 1t fcr this purpose), coalconveying equipment, ash handlfng equipment, or any otherftens cannon tc mar than cne unit shall be adjusted in Deratio that the capabfli y of the uaft bears ta the totalcapability far which the investment was made.

The caaputaticn of the capacity barges shall be subject tcrevierr and approval of the Executfve Ccrmf t ee and finaldet rnfnaticn sha11 include ccnsidersticns which wi 11 equit-ably shar wi 5 all pa~cipating C~anies De benefits r~the Peal.

82.2, C pacfty char,es shall bee~ affective cn Qe dat cfCmer ial Operaticn cf the P wcipaticn Unit.

82.3. Pricr Ca the initial ins~IIaifcn o- a Par.icicaticnUnit cn Ne sys~ of'a ~pany, c pacfty said by such Ccmpany

- C255-

83.

Co other Ccmpanfes pursuant to the Executive Ccnmf ttee's plan ~

ar equf MIe reset ie shall be fran the stem~ electric unitfnstalled cn the selling Canpany's systan designated as aParticipation Uni by the Exemtfve Carrnf t . [n applying thefcrnula far determining the rate far the capacity allacatad(Supplenent I ta Appendix C) actual casts cf the unit, arunits, frcm which capacity is then being said shall be used.

Participation Unit Enera Allccaticn

Each Canpany shalT be entitled to the engery associated withfw.capacfty allccatfcn fran each Participation Unit,

subject'o

transmission loss acgustments, if any.

Partfcfoatfan Unft Enera Charges

The pu~asing Company shall pay the awning Canpany a rate perldlcwatt+aur equal ta the average fuel cost per net kflcwatt-hcur of all energy produced by the Participation. Unit duringthe month excludfng energy praducef when the ParticfpatfanUnit is operat& with cne cr more heaters cut cut of ser Iicin order to obtain capacity for the. owning Ccmoany. Thisshall be determined by use cf FPC Account:QI. ~

35. Reserve Caoacf and Ener Charges From 0 Jr'er Than Particf oatf anuni w

He.I Canacftv

The charge far reserre capacity between the Canpanfes shall becmts per kllcwatt fcr each calendar Cay cr pcrt4cn

tnermv, plus accHtlcnal.'cut cf packet" expenses, l-, any,,exc pt fuel cosw. The det minaticn cf addi tianaI "cut cTpacket" cosw. shall be the sale prerogative af the seller;however, the Operatfng Ccnrnf ~ e will periodically revfav thet. ~sactfcns and endeavor to s~dardfze billing procA~ures.

88.2 Enercv

Energy suppHed with swerve capacity will be settled rar a> arate per.kflcwat-*cur equal to the calculat d average fuelcos of Ne highes cost generating unfts being used to pr=duc the energy required to make the delivery, such cos beingas af Ne delfverj paints ~king fnto ac unt electricallasses ines~ fran the source of such ener-y Co ~We deliverypoints, plus can permit of, the abave !dlcwatt-hour cost.

Tax C".ar es ar C~df ~

To the capacity and ener~ charges sat far~a in Sections 3Z,34, and 3"" abave wfII be added cr subtract d; wner apal'ic-able, an ex m charge or credit w caapensat rar any ~xeslevied dfr ly cr fndfr 'y an the capacity cr enemy ccn-

— C256—

trac ed for, where suN taxes are based upon capacity crenergy allacatad in Sections 81, 83, and 85 abave or uponmonetary r c ipts associated therevith, exc pt ta the ext ntthat sum extra charges or credits are included fn Participa-tion Unit Annual Fixed Capital Charac as determined fn Supple-ment I to this Apaendfx C. Mfthcut in any way limiting theforegoing, it fs further agre d that such taxes shall include.rut not be Iimf'M ta the follcwfng taxes:

(a) Gross Rec ipts Taxes,

(h) . Sales Tax cn Energy,

(cj Sales Tax cr Use Tax an Fuel,

(d) Generating Tax.

The awning Ccmpany shall notify the pur>asfng Ccmpanfes cfany suN nev tax cr ci'ny incr ase cr decrease fn such taxes.The word "taxes" as used fn this paragraph shall not be can-s~ed ta mean Federal cr State taxes cn net fncane.

87. Ooeratina and blafntenance Expenses far Particioatfcn Unfts

87.1 Fram a Plant Cantainina Participation Units Only:

The pur>asfag many shall pay the cwning C~any monthly'its pro rata paMcn, based cn fts percentage of capacftypartfcfpatfcn, of the operating and mafntmanc expenses asIfstad in the fallowing present FPC Accounts for fossil fuelfired stations cr their equivalent for nuclear swtfans::00,'02, 503, 504, 505, 506, 507, 510, 511, 512, 513, and 514.

87.2 Fram a Plant in Mhfch ines Are Other Units fn Addition .oihe Pa~icicaticn Unit cr Uni w:

(a) The purchasing Ccmpany shall- pay the awningCanpany monthly its pra rata portion, based cn its.pert ntage of capacity participation, and mint n-anc expenses fcr the Par "icipatfcn Unit (ar Units)as Ifs ed in the FrC Ac"aunts in Section 87.1 above.The arcing Canpany shall set up appropria+ acc=un-ing proc dures sa Mat maintenanc expenses fcr DeParticipation Unit (cr Unf.w ) c n be mfnzained. Tathe ex nt that unit maintananc c"sts cannot beidentified, estimates approved by the ~~ecutiveCami=e shall be used.

(b) ine pu~asfng C~aany shall '„"ay 5e awning Ccmoanymonthly ~he cperat;ng expenses far r"'.e plant 'sIfs- d in ~he FPC Accounts fn Se "icn 87.1 abavemultiplied by i~ pe.c nudge c= c pacity paric-pa-ticn and fur her multiplied by the ratia af thenumber af Par=icipaticn Un w in the plane ta "Ne

tatal number of active units in the plant. Ac.iveunits shall'mean any unit operating during any partof six or mar days during the mcnth except that a

narmaIIy active unit cut cf service fcr maintenanceor repair will.be considered an actfve unft.

87.3 If retroactive cr dits cwr fn 'connection with theexpense charges provided for in Section Sl.l and S7.P., theExemtive Carmit may 'provide far equitable r traac ive.adjustment of these charges.

C. APP&~6IX S AIIccztfcns

— Cl. Annual Fixed Caaital Charces and Exaenses

'A canaan forruIa (Appendfx C Supplement I) shall be used byall Companies in det mining the Annual Fixed Capital Chargesexpressed as a decimal fracNon cf fnves~nt fcr Pool Trans-mission Facilities fnstaIIed in a Ccmaany's system. This

.decimal f~action when multiplied by the cast af Pool Trans-mission Facilfties installed in a Company's sys~ det rmines

. the Annual Fixed Capftal Charges. In calculating such charcesfar Pool. Transmission Facilities the..total investment in suchfacilities shall fnclude all charges made ta the prwent FPC

capital accounts, 350, 351, 352, 353, 354,. 355, 356, 3H', 3Hand 3H and land rights and other Handeprecfab1 Investmentsshall be included. Operation and maintenanc expenses appl ic-able ta Peal. Transmf ssf cn Facilitfes sha11 be those includedin the present FPC accounts 560, 561, 562, 563, 564, 565, 566,567, 568, 569, 570, 571, 572, and 573. Tc the extant thatcash cannot be identified, estimatm approved by ~he ExecutiveCcmmft.a may be used. The charges and expenses so determin'edsha11 be subject ta r view and approval by Ne Executive

C2. AIIccatfcn of Annual Fixed Caaital Char es and Oaeratina andMaintenance aenses

The Annual Fix+ Capital Charges and the cperaticn and maintan-anc expenses or PacT Tranmissfcn Facilities shall be dis rf-

;buted ananq the C~anies in the ratio af each Canpany'sestimated pe k net territorial load, plus sales ca nan-mmaercaapanfes, ta the sum cf all the Ccapanies estimat& peek nette~toriaI loads, plus firm sales ta non~member c~aanies andshall be sub>e<= 4 review from time ta time by ~he me ctiveCcGw ttae

Qetraac i ga Criirlfi'

retwac re credits ccmr in connect".cn with >He expensecharges pr vided cr in Se~cn Cli. cr CZ., the =""ecuticeC~. may pr.vide fcr. aquf able r traac".ive acLjus~enc ofthese char-es.

v

Far„e sv t«>re

In &e event that a Participation Unit or a Paal TransmissfanFacility is damaged, destroyed or rende~ incper ble by exalosicn,ffr, riot, s rike, act of negligence, ac of sabotage, act of war,act of Gad ar other cause beyond the control af the cwning Canpany,the participating Ccmpanfes shall continue ta pay ra the awningCanpany their respective shar s of Annual Fixed Capital Charges

an'he

inoperable Participation Unit ar Peal Transnrfssfcn Facility tothe same extent's if the Unit ar Facility had remained fn opera-'ion, sub)ect ta equftable acQustment af such charges by the Execu-tive Cami tte -ta reflect any resulting reduc".ian in the casts ofthe owning Company, bu the par icfpating.Canpanies shall nat beliable for Operating and Maintenance Expenses af the inoperableUnft cr Facilf ig, or the cast of repairing- or restoring same. TheE."ecutive Carnitte shall det rnrine whether any outage is of suf-ficient magniNde and duration ta canstf Nte a Farce Hauteur pur-suant ta this secticn.

feral. Tax A 'ustments

If at any time fn the future the Federal Incline, excess profits arother F deral tax laws change in a manner that would adversely affectthe relative economic interest of any party ta this Agreenent, theExe~tive Ccnrnit ~ shall review those provisions of thfs Agreementr lating ta casts ta be paid by each party hereto and. make suchadieus ments ~rat will protect the int rest of the r.spective Can-panies hereta so far as that may be possible.

Eff~ve Oate

For purposes of Sec ian G of the Florida Electric Power Peal Agree-ment datat , the dat ov the approval oi this Appendixis It is fntended that the provisions afthis ppencix srra oe piac& fn effect as scan as practical, and%e dec rmination of such effective datum shall be made by theExezntive Cnrni,.ae, rnvided, hcwever, that a11 previsinns sha11he pIan& in erect n-n,t azar shan

(NW: Refe. tc Aapendix "-, ar derined terms)

- C259-

~ ( iTYPICAL LINK TYPE

R.QRIDA EI eCTRIC PSlB POOL AGR~~<BlT

APPENDIX C SiJPPLB<Bli I

PQQL ALLOCATION PLAN FORNULAE

A. PARTICIPATION UNIT CAPACITY CHARGE

The Annual Fixed Capital Charge in dollars per kilcwatt-year, "FC",far participatfan capacity fs determined by the fcllcwfng formula:

k 0 P + ilD RFC~,f i f ii~i i~f

Rhea the subscript "i" refers tc the cwnershfp af the unft and "k" isthe number of owners. in. the Peal..

kr

P Investment (original cm ), exclusive cf ncn-depreciable inves-ment, in the mast recent s~am-electric participation unitpreviously fnswIIed an tfie ccmpany's sys m (ar prior tc theinitial fnsuIIatfcn of a participation unit, the unit desfgn~-t d by the Exec<tive Ccamf ice).

R ~ Hcn-deprecfable investment fn Re same generating unft fcrwhich "P" is the depreciable investment.

N ~ Het capabf If'fthe unit in kfIowa~~

0 and ND ~ Annual Fixed Capital Charges an depreciable and nan-dep~fabIe property respectively, expressed as d cimalfra~cns m fnvestaent in such property. They aredetamrined by the fcrmlae cf Section 8 belcw.

8. ANNUAL FIX-D CAPITAL CHARGES ON OEPR CEABL AND NON-OEPR CIABLEPROPERi ( APPl CCABL= 0 BOTH GcllEBAi ON ANO <PANSbl 55CON FACCL< IES)

iae Annual Ffxed Capful Charge cn prcpe~ expr ssad as a decimalfrac"ian of fnves~t in su& property is:

OcrHD~ I +F+.Twnere

I ~ The annual >vaunt cr r turn on and amor-i@ation c". the invest-ment. It is Ne c pi- 1 rccvery factcr obtainable framsirdar" interst tables =cr t.".e acplicable r te af return "r"and amor-.f atian period "n". ine life "n" af ncn-depr~cfabIepr.pe~j is lnffni~g and its c pit I r very -actor "I" is~al tc "r". ine, Exemtive C~ittae may dfr c- 'Sat speci=ic

- C260-

additional iac.mrs w ccmpensata for int rim r placments o7aajor ~onents he included in Pe ccmputatfon or "I".

F» Composite. fnccme tax applicable to r Mrn on fnves .ent.

F ~ H (I - A) ~r- aalMH r

fn whi&

l»

r»

Capital recovery factor as defined above.

AnnuaI s&fght-1fne depreciation expressed as a decfmalf'ractfon of origina) fnvesNent. tt fs I/n where "n" is theamortization period of the fnves~ent in depreciable property.lt fs z ro (0) f'r non-depr viable property.

Rate of'e&rn.Ratio of debt ta total capftalfzatfon.

8» Lnter st rate on debt.

H»

f + s - f's ff Stat fncane tax is deductfble fn c~utfngFederal incane tu, hut FederaT fncane tax is not deduct-fble fn canputfng state fncane tax, or

v + s - 2 s ff Federal fncane tax is also deductible in can-

puting State fn~e ~.Ln these o~Iae

f » FederaI inde tax rates» Stat fnem tax rate

T» Annual ~~as (other %~an inane) and insurance when applfcable.

T» K+X

K» Proper y ~ as a de imal raMon of original fnves'mnt.

X» 0~her t~"es or insurance which the ~~ecutfve Ccmrittapples as applicable ta original fnvesment.

TYPICAL LINK TYP'E

R.ORIDA ELZ~iIC POMER POOL AGRMIBP

APPENDIX 0

POOL ACNIiHISTRATI'lE At<D 6&ERAL PROCEDNES

A. Paraasa

The purpose af this Appendix 0 is to provide fai general adminis-trative prcmdures far Pcol operation under the Agr ment.

B. Prccedur s

SI'. The Executive Caaait~ .at. its option may est blish a separatePool administrative organize-ian ar may selec fram time w timeane Company to serve as a clearing house fcr monthly Pool trans-actions. These monthly transactions will specify payments, if any,due owning Companies by participating Companies fcr:

(a) Capacity charges,

(b). Energy charges„

(c) Participation Units operating and maintmance expenses,

(d) Pool Transmission Facil'ities Annual Fixed Capital Charges,

(e) PaoI,Transmission Facilities operating and maintenancexpenses g

(f) Ccmpensatian - where app1icable, ror ~es,(g) Other servicm furnishecf under Ce t ms af the Appendic s.,

Ea& Canpany shall be sent a copy af the balancing cf Peal trans-ac icns each month, together with a statement of payments, if any,due by each Company to any other Ccmpany (cr Canpanies). Suchpayments shall be made dire~ly be&em Ccmpanies.

82. The C~anies shall render, an ar about the e nth day of achmonth, bills for Ne amounts due under the t rms of this Agrement

ar the precefing calendar month. All bills shall be due andpayable ~ithin tan days af~. r c ipt. Inter s" an unpaid anauntsshall ac=or at the r te of tao per c~mt per annum ircm date dueuntil the date upcn which paymenz is made. The calendar month shallbe the standard manzhiy period cr the purpose of settlements uncerthis Aqr ~ent; Nher ~~ac- figurw are not known by the time fcrthe bill, estimates may be used sub3e~ to readjustment. 'Ahe. e anyaf the pr visions cf this Sec icn 82. ar imaractical, Ne Execut veCcmntt„shall prcvide alt mat billing proc dur w.

—C262—

83. The Executfve Ccnmitta hereby estabIfshes a Planning andEngfne ring Carmt . Each member Canpany appointed shall des-,ignate the senior individual respcnsible Far electric system plan-ning and engine ring alcng with an aIternat ta serve cn the Plan-ning and Engine ring Ccrarfttae. The Planning Cermfttae shall be

".responsible ta 'Ne Executive Ccrnrittee fcr prajectfng Pool rscurcas and requirmants For at least 15 years fnto the Future,usfng data provided by the Canpanfes,-and shall submit such sudfesta the Executive Ccmntte as dfrec~4 and shall perform such otherduties as the Executive Ccmritta may direct.

84. The Executive Carnrfttee hereby establishes an Operating Can-Eam member-Company appointed shall designate the senior

individual responsible for electric syste'm operation along wf th analternate to serve cn the Operating Commit.e . Tne OperatingCanni ~~ shaIT be rapansfble to the Executive Ccwf ttee forper,arafng such dutf es and 'Functions as may be required in the day-ta-day cperatfcn af the Pool, including, but nat Iimfted ta:

., (a) The praparaticn of su& Operatfng pracedures as may befred i'or Peal operation.

(b) All matters pertafnfng ta. operating data and recardsapplying'a Pool cperatian.

(c) All mat ors perwfnfng to the control af Frequency,enercy Flew, kflovar.Flaw, va1tage and other sfmflarmatters bearing upcn satf sfactary, Pool cperatf cn of

~ the Ccmpanf es,

(d) AIT mat rs pe~mining ta maintaining the properlevel ai aperating

reserve

c paci y in Uie Pcol,

(e) ATI matters pertainfng ta the caordinatfcn of main-~~ance of the generating capacity and ".ransmfssfcnfacilities of the Ccmpanfes.

85. The Executfve Ccamfttee shalT Furnish the C~anfes a remrdcf all official actions taken by the Calf ~we.

M. Shculd the Exemtfve Carmft~ es~l fsh a separate Pooladmfnfs.mtfve organization, as provided fn Sec fon 81. abave, theexaenses or such organization shall be prorated amcng the Canpanfeson the basis of allcc tfcn of Peal transmission charges as pr videdin Aaaendix C.

C263—

c'Ffec ive Oate

Fcr pur„-cses of Se~ion G of'he F1orida Oectric Pcwer PccI Agre~ment da ed , the dat cf the aoprcval of this Aopendix

A

de~rnination cf suS effusive dates sha11 be mad by the Kxecu-tlve ccsrsrttae. ernvrded, hcweven, that all pvnvislnns shall bep'laced ln ef ac-.tunas asar chan

~ v

(Meta: Refer w Aoaendix = For defined te~.)

TYPICAL LEilK TYPE

R.ORIOA E~ =CHIC PGMH PQQL AGRE-iEHT

APPBIO'EX E

OE.=THEO TENS

A. Puraass

The purpose of this Appendix E fs ta define certaf'n words andphrases used ia the Appendices tc the F1orfda Electric Power PoolAgre~~nt.

S. Oeffnf tfons

S1. "Ad usta'd S st~ Cacabilit " ai' Company fs the sum of thenet generating c paoi ity inst lied an its systen (a ParticipationUnit shall be included 1CO» in the capability cf the awning Ccm-pany), plus firn capability ('other than fran Partfcipatian Units)purchased fram others where the reserve responsibility is that ofthe pu~aser.

SP.. "A usted S stem Load" oi' Canpany is its peak net terrf-tcrfa cad.far an ending,.clock-hour, adieus 8 in thre ways:

(a) Hy adding firm power sales tc -other ccmpanfes (otherthan fran Participaticn Units) when the reser re respcn-sfbiTfty is that of. the seller;

(b) Sy subt. ctfng fina pcwer phases frcm other can-panfes (other than fran Participation Units) when thereserve respcnsfbilfty is that cf the seller; and

(c) Sy subtracting Int rruptible Power Sales.

83. "Aar ement" fs the F1orida Ele~rfc Power Pool Agreement dard, as supplemented, and'all cf Ne Appendicm

and Anenaments th r to, together wf th thefr attached Exhibits andSchedul es.

S4. "Annual Fixed Capital Charces" .are those ccsw r'atfng to aparticular i ~«or unit oT inves —.ent .that accrue each year whetheror not the equfcment. is in aperatian. Rch charges shall includecfep~fatfan, r turn cn inves ent, fncme taxes, ad valor'axes,insuranc, and all other aoolic ble fixed char es expressed asdecimal rac-fan af investment. They do nct include aperatian andmaintmac ex"ensas.

35. "Assigned Caaacirr" af a Caapany is that Canpany's Adust d'.,":: ps~ Capaoil>ty plus c«pacfty allccatfans, i= any, assigned w i.-~ rYr .'cf patian Units installed cn other Canpanfes'ystems, and

minus c.pacity allcatfans, ff any, to.other Canpanies fram Partici-patian Units inswlled cn its systen.

86. "Carmercfal Oceraticn" is the time when a facflfty (Partfci-paticn unit, Pcc Transmission Facility, etc.) is declared hy theawning Ccmpany ta he ready far use in accordance with the ne ds ofthe Ccmpanies.

Bt. "Cnsnanv" is a cmpany which is 'a party tn the Aprement.

88. "Ecuftable Reserve" fs the excess aF Assigned Capacity overA4ustea System Load, expressed as a percmt cf A<)usted Sys~Load, that each Canpany fs expect to have at the time of ftsAdjusted Systan Load and such percentage shall be as determined bythe Executive Carmftw .

89. "Gas Turbine Generator Unit Caaabilit " fs the maximum netcutput tnat the unit can de iver at the a titude ai: Ne insalla-tian, when operating within desfgn canditians, with the inlet air .

tmperaKre corrected ta.the maximum tmper atur expected duringthe period heing cansfde~. This capability far a given unit maybe c r.ified by an actual test run, and shall he r certified upcnreques af the Exemtfve Carmit

810. "Peal Ceneraticn Addftcn Plan" is the current plan adapted bythe Exemtive Carmit- setting farth eaCh year rar nct less than1S years fn the ruture Da schedule fai'enerating uniu. ta becans~c. d.

811. "Ins.alled Reserve" is the amcunt af generating capacityrenafnfnq after the Acfjusted System Load fs subtrac.ed i'rcm theA@us ~& Systan Capability.

812. "Interruatible Power Sales" fs power being sold t" a custcmer(ar als~ers whicn may 0e interrupted insuntaneausly; this pcwe.may he consider& a part cyf a Company's (or Canpanies') availableSpinning Reserve up ~a a maxfmn af 78» af the Sprinning ReserveRequi rment..813. 'Pai .icicatian Unit" fs a generating unit, the capacity ofwhich is a lacac c ta ceo cr mare Canpanies, and which is designa-ted as a Par fcipatfcn Unit by the Executive Canmitta .

814. "?ccl Reserve Caaacftv" fs the total firn power r serves farczrryinq oac abave tne sum ai the estimated maximum coincfdentAdjust d Sys~ Loads of the C~anies, the pere ntage af whichshall be established by the Execrative Ccrmi-- e as a par af t.'iePool Generatf an Rddf bien 'Pl an.

818. "? ol Transmissicn;aci"li iesta ar transm'.ssfan -acili -ies,intarccnnec=ion ties, c=.mvnlczticn -acilities and other -acalitiasassociated the~it!i which ar so desfgnat& by -".e ma tiveCami t-«.

— C266-

816. "Peal Transmissicn Addition Plan" fs Che cu~t planadoptee by the executive Camittae, setting farth each year for notless Chan I5 years in the future the scheduIe of Peal TransmissionFacilities Ca be canstmc-ed.

1

817. "Soinninc Reserve" is the sum of (i) the unloaded generatingcapacity resour.es or a Company which are cannec.ad and ready tasupply power upon demand, and (fi) generating capacity which can bemade. available upan demand fran interruptible or other cantracts.

818. "Steam Turbine Generator Unit Caaabflf " fs the maximumcontinuous net output Chat a unit can de iver when operating withindesign conditions, with back pressure carr c. d Ca maximum caalingwater Canperature expec~ during the periad being cansfde~7nfs capability fcr a given unit may be cert~fied by an actual- Castrun (maximum of Z4 haurs), with no alter atfcns Ca Che design cycle.The estaalished capability of a unit shall be rec rtified upanrequest of the Exemtfve Carmittee. The capacity of s~am turbinegeneratar units fnstaIIed cn a Company's system prior Ca Chefnitial fnswIIaticn cf a partfcipaticn Unit cn'that Canpany'ssystem will be as c r fffed Ca the Executive Carmf Ctee by theowning Company (su& c rtffication shall be accanpanied.by asMtment of canditians under which the unit was rated).

C. K-.=ectfve Oate

For purposes cf Section G of the Florida Electric Power Pool Agr ~ment dat d , the date of the approval of thisAppendix is . Lt is intended that the provisicns cfChe det rminaticn cf such effec"ive dates shall be made by QeExacntive Ccnni ~e, nvevidadhcwe,venthat ,all prwisinns. shallhe plac d in ev-,ec nant a-ar >an

- C267-

Tvaical Te»m Tvoe Flcrida "lectric Power. Pool Agreement

AGR~BF made as of the day ofeiec:ric ntiIfries in he~ta-a cf Ficrica.

Aitnesseth

, by and among the

WHBN, the parties own and operate clem"rfc generatfng, trans-mission and distribution facilities and are engaged, amcag otherthings, fn the business of praducing and selling electric energy taather distributors cf elec".ric energy and ta the general public inthe. Stat of Florida.

'AHUEAS, the parties believe that substantfal'utual beneffts maybe obtained through the caordinat d operation of their electricsystems includfng increased reliability of ser rfce and r ducedcapital casts made passible by caardfnatH system planning, andreduc d cperatfng casts made passible by the interchange cf electricener~ for economy purposes; 'and

MH~~ , the par.ies desire ta achieve cptfmmr caardfnation in theplannfng and cperatian cf their electric systms and ta provide ameans whereby a11 partfes may realize and share in the mutualbenefits whfch can be obtained thereby; and

MH~~ , the parties esta»blished the Florida KIec rfc Power Pool(~P) by agre»tent made as ef the day ci'ndIhIHER~~, the parties have established. and sta7fed a pool cantralc nter acfl icy Iacated. near , FLORLQA, fcr "heprfncipal purposes of (I) coordinating tne operations cf the meabercaapanfes cf FPP insofar as may affect the reliability a- the bulkpower supply. cn the fntercannec~M sys ~ in Flcrida; (2) dfs-patAing eneray requirements an an economy basis; and (3) monitor;-ing the int mal and ext mal operations of the HP ta insureunimpair d, overall senrity af bulk power supply at all times;

Ncw, iAH~~ORE, in cansideratfcn of the premfses and cf the mutualcavenants and agr ments her in set for 5, De parties her ta daher~Ay agr wiD each other, far themselves and fcr their suc-cessors'nd assigns, ta operate the FVP in accardanc herewf d.Oefini icns

Fcr the Pur„ase c. this Agreement, certain " rms used her in ardefined as =allows:

~4aximum One Hour fndeaendent Net Lead. The Maximum One Hourfndepencent Hec 4aad cf any par y Pcr any period, shall be -"'.e

elec=.ic aner~ used ta supply hNe load cn that par g's systemdur'ng ~".e clcck hour when such usage is gr~wtm- in such per cd.Such usage shall include ele . 'c energy delirered ta cr ar ~re

ac "unt of other utilities under firm load contracts (f.e., wherethe supplie~ fs obligated ta back uo the load cave~ by de can-tract with reserve c pabfli y} but shall exclude:

(a) electric energy delivered within the amaunts of gener-ting capability sold ta other utilities (fncludfng parties tathis Agreement} under separate cantracw, deliveries ofemergency and ecancmy energy., any other deliveries af electricenergy ta: othe~ utf lftfes'ar, other than firn load, and thefaternaI sys~ losses fn connection with such deliveries;

(b) loads which are not suppl fed f~ the party's Net SystemCapabi I fty;

(c) internal sys~ losses fncurred in the through tranmfsscnof enerc~ ror others; and

~ (d) interr cptfble power sal es.

2. Canabflftv Period. Capability Periods of apprcximat~ly sfxmanths each are esublfshed, as follows: (I) Fram the last Sundayfn April up ta but nci including the last Sunday in Qc".aber; and(2) f~ the last Sunday. in October up ta but nct including, thelas Sunday fn April cf the oIIcwfng year, or such other dates asmay be det mined by the Qperatinq Ccnrrf tta .

Fi C I'. M d ldseparate cantrac", fs gneraang capability ~hie!r has substantiallyW~e same availability ta buyer as the buyer's cwn generating.capahi 1 ity.

4. Net S tm Cacabilit . ine Net Sys~ C'pahility or aaN partyhereto in any Capaaf i-J Pericd shall be the fallowing:

(a) Qe dependable net maximum generating capahflf ty affnsw11atfcns an its cwn system; plus

'

(b} Ffrm Capability pur Bases and any reserve generatingcapahfli g which is maCk avaf lab'le ta the buyer by contract taback up such Firm Capabilf ij pur Bases; less

(c). Ffrn Capabf ling'sales and any r serve genera ing c aa-bilfty which is made available by the seller by conic taback up such Firn Capability sales.

S Caaabf I f tv Mar 'n~ L ne Cacabf Ifty Mar",in of each par.y hereto,

exprwszc as a percentage cf >We blaximum Gne Hour lnde~endent BetLoad of such par-.y, shall be the amcunt by ~nfch such par y's 'letSysm Qpabflf:y. exceeds fts Maxim'ne Hour independent Net Loadin any Capability P r 'cd.

G. Recuir d Caaabilftv Marcfn. The Required.Capabf'Ifty Margin for'achpar™y hereto, expressed as a percentage of the Maximum One

Hour Independent Het Load cf such party, snail be the CapabilityMar,in as deternfned by the Executive Carmfttee, cr such lesserperca~wge as may be determined under provisions cf Sec.icn X. 2.

7. Pool C aabflitv Narafn.. The Pool Capability Margin,'expressedin kf lcwatw, snail be the amount by whiN the aqq~ate of eachpar."J's Het System Capability exceeds the aggregate of each party'Maximum One Hour Independent Het Load fn any Capability Periad.

8. Recufred Pool Caaabili Margin. The Requf red Peal CapabilityMargin, expr ssea tn ki cwans, shall be the aggregate of the.amounts, expressed fn kilowatts, determined far each parry heretaby the Executive Cararftt e fn any Capabflfty Period.

9. Recufr d System Caaabf lit . The Required System Capability ofea& party her ta -or any Capability Period .shall'e its MaxfmunOne Hcur Independent Het Laad fn suN C pabflfty Period multipliedby I.O plus fts Required Capabilf tg Margin expressed as a decimal.

h 5 I" Mll:hereto in eacn Capaaility P ried shall be the amount, ff any, bywhf& its Het Sys~ Capability exce ds its Required Sys~oCapabi I i ty.

11. Caaabf1f Oefici nc . The Capabflfty Oeffciency cf eachparty her ta >n each pabflfty Period shall'be the. amount, if any,by which fts Required. Sys~ Capability exceed fts Het SystanCapab f I f .y.

12 CCFiAft iees, ~

~acxamtfve .

(b) Planning and Kngfneerfng(c) Operating(d) Envf ranmenta 1

e Legislative( ) Public Relations

SeetlcrtCV

YVjVjj '

VjjjIX

I3. Oaeratfno Caaabfli~ . The dependable net capability cf gen-eratUg equipment carrying load or ready ta take load within timelfmies dec rmined by Oe Operating Ccrmft ~e.

14. Oaeratina Reser ie Caaabflftv. The excess cf Operatinq Capa-bility ever cac, wa.rim sa es requirements, at any time.

15. Remi~ Minimum Pool Qaera inc Rese. ~e Caaabili~r. Themfnfmm Operating Resar ie Cacaos islay wnicn must ce praviced .n;heint . nne""~ sys-~ cf '".e par-.fes he. t", as determined by the="e a-ive C~t-.e .

—C270—

I6. Re ufr d Afnfmen Oceratinc Reserje Caaabilitv. Each party'allccat& snare of Required i'iinimum Pco Operating Reserve Capa-bf If ty.

I7. Oaeratina Caaabilitv Re ufrements. The amount cf OperaifngCapabi iiy requcrm to supp y a par.g's load, firm sales and ftsRequired Nnfmm Operating Reserve Capabi I f ty,

IS. Emercenc Caaabilftv and Enercv. The Btergency Capahil.iiy andEnergy supplied rrcm the seller's Opera<i'ng Reserve Capabflfty fnexcms of fts lead and ffrnr ccrrnrf~nts ta others and purchasedduring periods'hen buyer experiences an autaqe and buyer hasfnsuf=icfent Operating Capability ta.supply fts load and- finncaanftm'ents to others. A buyer shall be entitled ta Emergency

. Capability and Energy only far the,per fad and under the candi dansspecified in Sgctfcn XI.'6.

hereof.'9..9uaalenentaI

Caaabflftv. Operating Capability, other thanFfrn Capabi lity or, Assur d Ec"nay Capahil,f ty, required to me tQperatf ng Capaaf If.y Requf renents.

ZQ. SuaalenentaI Enerc . Energy scheduled within De Iimiwoi'upp

1 ementa Capabi s -y purchased.

ZI. Assur d Econ'aaahi If . Operatinq Capahf 1ity purchasedfar a mutua y agr W-upon period when, far economy purposes, thebuyer withholds.specified generating facilities fran service crschedules less than maximum quantities af Operating Capahilftyavailable under contacts in ef'ect during such.perfcds.

22. Assured Eccncmv Ener . Electrf c energy scheduled far anagre~-upon peNac1 witnin the limits cf Assured Economy Capabilitypurchased

23. Ecancmv Enerav. Elec".rfc Energy purchased cn an hourly basisdurfnq periods wnen, or ecancmy pu'rposes, the buyer restricts thegeneration of enerc~ fram fts Operating Capability ar r strfcw thepurchase or energy available under ccntrac& fn effect during suchperi cds.

24. Buv r's Value ar oner v. The es fma~M decrement I fuel andmafntmanc cost cr purmasea energy ccs, acfjusted far losses cnthe buyer's ~imsmfssfon sys~, which a buyer will avoid by r~sWiping the generation oi ene~ fran iis own Oaeratiag Capa-biliijcr by res .ic=nq the purchase af ener~ unde. c"ntracw fcrthe put rase a= c pabiIfty, and by purchasfnq instead the equiva-lent quanti g c= Assu& E=neny Enemy ar Ecancmy Energy.

29. buyer's Value far Oae~-inc Caaahilit . The estimated aqqr„-cat m zii aopi>caaie casa, sucn as sv.r.-up arid shut-dcwn c"stsand hourly oper 7'fng c sos fncludfng labor cas~, which a buyer

will avoid by withholding operable generating acflitfes f~operation or by r s rfc fng the purchase of Operating Capabilityunder cantrac.s for the purchase of Firm Capability, and bypurchasing instead the equivalent quantf ~g. of Assured EcancmyCapability hereunder.

26. Seller's Cost for Enema . The estimated fncrementaI fuel andmaint nanc cwt or purchased energy cast. ac@usted for Icsses onthe seller's transmission sys~, which a seller incurs in order tagenerate energy or purchase energy for resale hereunder.

27. Seller 's Cast for Oper atfna Caaabflf . The estimated aggre-gat or a app fcaa e accitsonai casa, such as star -up and shut-down cas+~, and haurly operatfng casts, including labor casts,fnasrred by a sellr ta provide Operating Capability ar ta purchasefma other than Pool members Operating Capability rcr resale..

28. Ene - Savfnas. The difference betwe n 8uyer" s YaIue farEnergy anc e er's Cast far Energy after bath are adjust d forlosses, if any,'a the point of receipt cn the buyer's system.

29. Orreratfnc Caaabf lit Savings. The difference beWe n 8uyer 'sValue rar Operating Capaai ity and Seller's Cast for OperatingCapabi I ity.ZO.. ~pea." . A a$ aae'cary aa tMa Aaaemeaa.

'

31. Inter Ienina Pa -. ies . Any party or parties whcse trans-mission raci ities are r~ufrzd by other parties hereta ta accaa-madat any of the Operating Capability cr energy transactionsprovided for under Sectian XI. hereof.

IEI. Scaae

TIre parties agre ta coordinate the deveIopment and operationof'heir respective eIecMc production and transmission facilitiesin order ta obtain optimum reliability af ser Iic and ef Tcfencyupcn the interconnected systems of the parties hereta.

2. The parties in accordance with the terms and conditions here-fnaft r speci fed agr ta (I) provide and maintain Required SystemCaaabflf y'and Operating Capability Requfemerrts; (2) purchase andsell Firm Capabilfty and tranmf t the enema~ assacfated theravithunder separate contract with any of the other parties her to uponmut'aIIy satfs=acwry rms and canditfans; (3) purchase and seIIOperating Caaability and ene~ far the pur,.csas and under t!rec"ndi: cns sat far r her in; and (4) make De capacity of itsMnmissfcn acflitfes not otherwise mnf t ed available for .

"~nsac=icns involving the pur casa and saic of Operatinc Czpa-bili I and derv.

- C272—

~ ~

= 3. Tne parties fn accordance with the t rrrs and candfticns herfna ter specified aqr e to (I) caordinate the maintenance ofgenerating facilities with, the mafnt nance schedules of all otherparties her~to; and (Z) cacrdfnat planniaq with that of the otherparties. hereto wit r respect tc the nature, location, and date cfinstallation of additicnal- generating and fnt rcannec icn trans-mission faci1 f ties.

4. Transacticns involving sales af Operating Capability or energy,~ and the transmission of energy, shall be made with due recaqnf tfonof, each par.j's respcnsibilfty fai the supply of its cwn load, aswell as fts cooperative responsibility ta the FroP, as provided fcrher inaftar fn Sections XI. 1. and XI. S.

5. Any party may enter inta emergency and economy interchangearrangements with others who ar nat parties her ta wiD respect ta.the pur 'rase or sale of Operating Capability and energy. Thepar".ies her to may ccntract with each other ar with others who arenot parties hereto fcr the pu~ase or saTe cf generating capa-bi lfty ta the extent that such cantrzct may be performed withcutimpairing the ability cf any party hereta ta fulfill fts cblfga-ticns und r Seasons X. and XI. hereaf.

6. Sections Pl. through IX. establfsh an Executive Ccamfttee,Planninq and Engine ring Carni tt~, Operating Ccrrrnittee, Envi rcn-mental Ccamft"ee, Legislative Ccmnittee and Public Relatians-Ccrnrrftta ta permit the parties ta effectively administer thisagreement.

Executive Ccnnit~~~o

1. The paMes shall establfsh an Executive Ccmrit~ ta det rrriaepolicy with respect to 'all matters within Ae scape of this Agre~ment and ta a~nqe rcr the administering of this Agreement and thecarryinq cut cf its provisions. The Exemtive Committee shallprovide rcr the coordination of the planning and. operatinq func-tions of the members of the F=rrP fn order that, ta the great stextant passible, such coordination will be direc:ed ta prcvidfng,ar the ele~c power ne ds of the State af Florida (excludinqGulf Paver Company) as a ~hale.

Z. Each par.g ta this Agreement shall designate a senior offic r,and as an alt mate, a second offices author'd tc act cn hisbehalf, to ser"ie an the Executive C~itta . The expenses ofeach member af the Executive Ccrnrrittee shaTI be borne by thepal ~j he i~pr&ents

3. At fts irst me «ing, the Exec~tive Camittae shall selecancnq its mern"'ers a c!rair..an and a vice-chairman ta sar re

for cne year m such first.me «frrq; and far eac.'r year dere-aft r '",e chairaan shall be ~e memce. o- the C"~ittae whc serve

—C273—

~/

as vico-chairman dur ng tn are edfng year and the vfcs-chair. anshall be a member selected by»e Cc=.'t-.ee "ne Ex cutiveCamritt shall me onc. = ch month and at such cder imesas the chair..zn may de a .rine.

4. The Executive C~f'.t shall r vi~ and direc the activi-ties oi'he Carmf ttaes estab! isned he. eunder..he ExecutiveCcamf ttee shal 1 arrang= for the sar I'css oF an AdministrativeOfrector o= the Pcol, ard su-.-.tcfent clerfca'. dna technicalsuf and cmsultanty ~~ petit the Caenft-.~es to fulfill theirresponsibf lit'.es hereunder.. fhe Admni trative Oleic cr shallas as lfaiscn between -".e executive Ccaeittae anc} the other

'onnect.os; shall a tend cmf'..'ee me tin» 'n a non-vntfnqcapacity; shall adminis:er and coordinate the acNvf ties oi the.Cmft ~~ ot the FEPP; a i carry out s'wch othe duties as maybe assigned by the Ex.:" t- e Camftt~. ine General Ha»a~ero Operations, under tne d:rection oi the 0 era"ing Comfitshall supervise ~be.operat'.on oi the FV'P antral Canter.

S. All expenses ar'.sin= out of'he adiafnfstr tion of'his Agr„~ment, other than the experses, inc rred by ea~~ member or alternatem~er of the Executive Conf tt, Cperating Ccn-.f ttae, or PlanningCars i-.ee, shall be sub„'ect ta the approval nf the Executive,Caa-mf t a, in ace@roan a wii a 'pr"endures to be established by theExecutiv Crmittee,'and shall b . ai1cated zing t.'ie partiesher to in accor"ance;:fth >".e Formula whfci; m"y be in ef ect at thetime such ~Mpenses are 1ncu~6. The Chafrmaa oi the Exemtfve Ceamittee is herDy desfqnatedthe agent of each'of the parties hereto for, the pur.ose of ilingd;anges in ot suppT~+nw to, this Agreement with the. Fede.alPcxer Canafssion or oth r regulatory agencies.

Plannino and cnofneerinc C~fttee

1. Tne Exe™wtfve Ccm't- e shall establish a Planning and Engin-e ring Camitt e to coordinat and develop olans for the installa-.tion m additional generatinq caaabi lity and interconnecting trans-mission facilities within tre Pool. one Planning»d EngineeringCaamfctee shall coordinata olanning be-~een the Pool and ad|ofningPools and wf 0 other ~fonal power coordfnatfnq aqenc''es to theextant appropriate. in~ Planning and Engineer'ng C~w ttee shallalso dir c- the acti Ifties or the Gene. ai Vkna-er ot Piann;ng.

2. Each par y shall designate a senior individual respons ble 'orelec:rfr sys:m plann nq .."."'nq.'ree.ing and an alternat to sar reon ~,e Planninq and nain".ring C"~"tee. ine expenses or eacNmenber or che ~f t:e shail be borne by t:".e oar-y '.".e r pr sents.'- l~~M: ">~ the C~ cae cae ca='one disap„aeaeac aa aay ~cce",

chan ""ac ~c=e= chalL ce "a=e M -e Ne ="a~c've C~c-caa ~or caeainc'cn."

- C274-

3. The Planning and Engine ring Comit. shall select members toac as chairnan and vice-chairman. The af".ices cf chafrnan andvie~chairman shall be changed annually in rataticr; among themembers cf the,Carnittee. Each year the vfc~chairman af theCoal'ttae during the preceding year shaII succeed ta the, chafr'-manship. Tne C~itt shall me t a , gu'.arly scheduled imes andat such other times as the chairman may d termfne.

4. The Planning and Engine r 'ng Cannftt~ shall sWdy, the need fcraddftfcnal qeneratfnq and transmissfan facilities ta. best implement5e purpose" of the F~7P and shall submit regular reports thereon

. ta the Executive Ccrmfttee, the A&infstratfIe 5frectar, and theQperatfng Ccaaittee. These studies, ~hich shall be made in-con-sultation wiD the Operatirg Cmtta, will in..lude such trans-

'ission newark sMdies of the sys~ ci the par 'fas hereto as maybe required tc deterinine tre need far and the best ',ccation cf

. additicnal qeneratfnq equitant and .~smissian facilities,addftfanaI interconnections with other electric sys~, and anyother matters of a sfmiiar cr related. nature which will aid fnachieving the aurposas of this Agreement.

5. The par.fes hereto shall furnish the.Planning and Engfne ringCamitw system Iaad and capabfIfty for casts, statfs ical data,and any c ier in ormatfan which may reasonably be required fn thecourse af the s&dfes under~Ran by the Ccmittee.

'G. e Oaemtf na Carnf ttee

I; The Executive CcnrntLe shall as&I ish an Qperatf nq Caaf ttaeta caardina~ the aperations af the parties h rounder. Each paMjshall designate a senior.- individuaI rmpansfble =ar el~rf csystem cperatfcns and an alternative ta serve an the QperatinqCaraftta . The epenses of each menber of the Operating Ccrmi te'shall be borne by the party he represents.

r

~ Z. The Operatinq Comit: shall select members ta act as chair-man and vic chairnan. Tne a==its af chairman and vic mNairmanshall be.Ganged annua11y in r tatfon aaanq members of the Can-mit ~. E ch year the vic chairaan af the Camitto during thepr cMinq year sha11 suc- ed ta A~e chairmanship. The QperatinqCarmi~.a shall are t at r ~ularly scheduled times and at suc!iaCe» times as the chairman may determine.

3.. ine Oper ting C~i~ shall dir - the ac-ivi i s cf 'ieCenera1 Hanaqe. of Operations and shall <atablish such ruIes, ardpr c=ices as Inay "e njuir d ta coordinate the ape»ation af:hebulk power suaoly systems c= the par-.fes he. to so as ta insurr liability ci'ar Iic and aconanic cperat cn.

—C275-

4. The Operating Ccmmft.e shall be responsible f'r madf,fca-tfcns ta, maintenance, and cperatfcn ci the physical facflitiesat the F:-cP Can rcl Cent r .

5. The Opera fng Cuff t ee shall esahlfsh and coordinate main-twance schedules fcr the Peal.

6. The Operating Cbrit ee shall review the P.equfred CapabilityHarqfn a= the par f es her ta periodically in cooperation with

~ the Planning and Engineer'nq Cemft:e; and fr experience or theresult of studies indicate the desfrabflf.y or change, shall

annen6 changes thereto ta the Executive C~ .

T. The Oper ting Ccamri te thrcugh its chafrmn shall submitreguIar 'reports oi 'ts ac.fvf.tfes ta the Executive C~f tee,the Administrative Ofrectar, and the Planning and Engfne r 'ngCcamt t-

vjj. Envf rcnmental Cement ee

one Executfve Comit.ee cr FPP shal'I establish an Environ-mental Ceraft e wni.ch shall develop and coordinate aspects afenvfrcnnw~taI prctectian and enhanc ment as they, pertain ta theplanninq iunc ion cr FDP.

2. Each par.j shall desicnat the senior fndfvfdual respcnsfblefor envfrcnmentaI a~fvftfes alcnq with an aIternat ta serve anthe EnvfrcnmentaI Camftta . Tne expenses c- each menber cn thecanmiw will be horne by the party he represents.D c. f c.f+ %/g p/) )~

3. inc. Envfr"nmentaI ~ ae.shall selec members ta ac 'schairman and vice-chairmn. The oi=fcm ar chairman and vie~chairman shall be. changed annually in rotation anang the membersof the c~ttee. Each year, the vfc~chafrmn cf the carmftteeduring the precedfng year shall succe d ta the chairmanship.The Environment.l Commit ae shall me t at requIarly scheduIedtimes and at such other times as the cha.frrzn may dete~fne.

VITE. L~fs7ative Calf ttae

1. The Executive Ccnmtte cf r~c,. P shall establish a l. gfslatfveM;t.a which shall develop and coordinate legislative activitiesas they apply ta FEPP as a whole.

2. Each pang shall designate the senior individual r sponsible~cr legislative ac-=.vitf s along with an al enate ta serve an aet ~fsTativ C~f tee . The expenses cr each me ber o-. the can-

will be borne by the par-.y he r pr sents.

=l xr jq s

- C276—

3. The Legislative C~itte shall selec menbers ta ac. asQafran and vic -c!iairan. The ofrfces of repair..~n and vie~cnairman shall be changed annually in ra«ation among the ~i.i ersaf the c~f tee. ""ach ye r, the vice-~~ irman of the ~it aCuring the pr ceding year shall succ ed to the chairmanship. TheL~gisiative ~ttee sh 11 me t a- regularly scheduled times andat such other times as the chairman may det rmine.

Public Relatf ans Carmiztee

I. The Baastfve Ccrc'.ttee o-. FVP shall establish a PublfcRela icns Cmf:e which shall doveIap and m"rdfnate public '

lation actfvfties a they a@pl," ta ~cPP as a whal .

Z. Kad par f shall desfpat 'ae seniar 'ndividuaI repansfble-far public r latian activities along with an alternate ta serve anthe Public R Iatians C~ittae. The expenses cf each member of the~ t e wiII be borne by the pa~ he represents.~ 0 c.! c.+W ~fgs-/q.s

3'. The Public Relatf'ans Ccmft e . shall select mmhers ta act aschairman and vic~chafrman..The. offices of chairman nd vice-chafrmn shall he changed annually in rotation among the members ofthe caraf ~. Each'year, the.vicachairnan of the cern( t e Curinathe precedfng ye r shall succ~ ta the chairmanship. The PublicRelations Carait".e shaIT me t't reguIariy scheduled times and atsuch other times as the chairman may determine.

Installed Caoabilit

1. Prior w the ccaamcanent of each C pability Period, each par.yhereto sha'll es fmate its Requir d System Capability far the en-suing Capability Period and shall provide and maintain a Net SystemCapabili g at I'e st equal to suc!r estimated Required Sys~ C'pa-bilfty throughout the ensuing Capability Period.

Z. r... fn any Capahilf ty Period, «Pe Paa1'apability Hargin isless than the Raqufnd Pool Capability Harafn, the Requf red Capa-bility Margin cf each af the parties hereto shall. be reduce pra-par fanateIy in the ra io of the Paal:Capability i<iargin ta theRequired Peal Capabi I 1 ty Harain.

3. At Ne end cr each C'aability Period after the ef-.ectire dateher r, the Haximum Cne Hcur fndepencent He Load actually expe. i-anc~d by e ch par.r hereto Curing the precMing Capability Perfcd,the Requir d Caaahili y Hargin, and the i'Net Sys ~m Capahili y ofeach par-y he. ~a, ad~us- d, i= appropr ate, pursuant ta Section a.below, shall be used w Ceternine the ac "I Re uired SystemCapahili-y and Ne Surplus Capability or Qpahility Oer'cfency.o-.e A par.y Cur',ng the pre cding Cap hili:y Period.

4

- C277—

4. In Ne event the generating capabilfty available to a partychanges durfng a Capability P riad due ta a change in the caoa-bility or generating installations an fts c~n system cr an anothersyst m from ~vhfch it is purchasing Firm Capability, the party's HetSys~ Capability shall reflect the change as af tIe ne r st ffrs~day af the manth to the actual date upon ~nfch the cnange ac"urs.If the change occurs an the sixte nth day of a thirty-one daymonth, the a4jus~ent shall became eff ctive as of the first ~ y cfthe month in which the change actors.

A pa~ changing fts Het Systsn Capability during a CapabilityPeriad shall have its Required System Capability determined asfal less:

(a) Far the months of the Capability'Period prior ta a changefn Het Systan Capability, a party'."Required Systmr Capabilityshall be deternfned an the basis of f ts Haxfmun One Hour Inde--pendent Het Laad experfencM in those manths.

(b) . For the mcnths af the Capabflfty Perfcd after a change inHet System Capabf if~i, a party's Required Sys~ Capabilityshall be dktermfned an'Ne basis cf fts 'Maximum One Hcur Inde-pendent Het Load experienced in those.months.

K..In the event of .an ex. nded outage af generating equipment ordfr c ly rela.ted equipment due ta any of the cfr~wces statedin'~cn XVI. hereof, the fallcwing shall ac-ar:

(a) I it is det rained that the generating equipment subjectta su@1 cutage fs r parable, and ff the person or personscwnfng such equipment proceeds ~th due dfligenc ta effect

- . the repairs necessary ta restare such equfpmen- ta servic ,Ce capability cf the generating equipment sub~ec. to suchoutrage shall continue ta be included, ~fthout diminutian, asa canpcnent of a party's Het System Capability pendfng resor-atian of suc!i'equipment ta service. The Het System Capabilityaf other pa~es purchasing caaability fram W~e par.j sustain-ing such outage shall nat be subject ta acfjustzent.

(b) HotÃths~dfng the provisions cf Sec.icn NVI, if it is.det mined that the generating equipment subjm- to suchoutage is damaged beyond repair, the c pabilfty af such ecuf pmentshall be de~d ta be unavailabIe ta. any par.y for any aurpasefrcm and after the firs day of the manth in ~nfch such deter-mination is made, and the cbligatfcns cf the parties heretoshall be redeternined ta r flee. sucn detenrinaticn.

(c) The deterninatfcn cf wnether or not generating equim>entis r pair ble shall ce made by the pecan or persans caningsuch equipmenc.

- C278-

XI. Oaeratina Caaabflf v andEnerc'.

~P Control Cent r personnel shall schedule and dispatch,pursuant ta in=armaticn supplied by the par-ies, Oper ting Capa-bi lity and energy~ ta meet the Pool load and aperating reserverequirments in .a reliable and ecancmical manner.

2. F~c= Cantral Canter personnel shall. coordinate the cperatianof Ne Paol with other systems ar pools.

3. The Required Nnfmum Operating Reserve Capabf1fty ta beoperated hy each party hereto shall be determined by the FEPPControl Center persannel in accordance wi'th the methad ofaIIacatfng Required. Hfnimum Peal Operating. Reser Ie Capabf Ii yestablished by the Operatfng Ccamfttae.

4- Each party agrees ta provide ei.her from fts ovn resourcesor through purchase fran others its Requfred Minimum OperatingReserve Capability.

S. All transac fons i'ar the purchase or sale ar Operatfng Capa-bility cr energy hereunder shall be scheduled by F~c. P Control

. Center perscnnel, actfng within the limits oi the rules, prac ices,and procedures esMIished by the Operating Camittee.

6. Any party, when called upon ta da so,, subjec to the pro-visions of Section IEI. 4., shall. supply Emergency Capabflftyand Energy to any other party'equesting such servic ; Suchser Iic~ shall be billet as Emergency Capability and Energy tathe exit that De olloving canditfcns ar met:

(a) Buyer's sdmduIe fcr the day has provided fcr sui-ficfent.Operating Capabilfty. a me t f ts Operating Capa-bilfty Requirements.

(b) The period.of such- purchase shall be Ifmf&d ta thetime required f'r buyer expeditiausly a swrt additionalgeneraticn on its cwn system, to schedule Firm Capabilityto ~hich it is entf Ied by cantract or to purchase Supple»men wI Capabi I i ty.

To the exit that the far going canditians are nat met, theserrfc r zde~ shall be billed as Suppienental Capability and

Energy~.

1. Sub~ec ta the pr Iisicns ci Se icns fTI. 4., any car-.y:vhencalled upon a da. so, shall supaly Supplemental Capaoili g, f.available, ta any cthe. par y request ng such servic . Su"ple-menMI Capaai Ifty is nac ta be purchased to zvaf d Caoabi I i ty .

Oericiencj payments.

— C279—

XEE.

8. The purchase or Supplemental C*pabflity or of Assured EcancmyCapabilf y shall entitle the buy r to schedule rec ipt of all orany par of the energy assaciatad therewith, for the period af thecapability purchase, in maxfn~ hourly quantitfas not exce ding thequantity af such c pabilfty purchased.'ubfect ta the pravfsionsof Sec=ion III. 4., servic shall rot be t rminated during'uchpe~~ad wi Chau the buyer's consent.

9. Suppl cmental Capabi I f ty or 'Assured Economy Capability soldhereunder shall be provided by the seller fn addition to theseller 's ovn Operatfng Capability Requirements.

IO. Ho party shall at any tfme rmtove capability fram service fars&eduIed maintenanc pur;„ases unless the Operatfng Capahilftyavailable ta i fran its own ar purchased generating saurces, isfor the expect d duration of the outage, sufficient ta ca~ ftsOperating Capabf I f ty Requirements.

11. In arder to facilitate the coordinated, economic ope.ation ofthe generating equfpnent of the parties hereto, generating equip-ment shall be withdrawn fran servfce for maintenance fn. accar"ancwith schedules established by the Operatfng Ccnnnfttee..

IZ.,AII electric energy purchased and sold her under shall bethre~hase, 60 cycle, alternating cu~nt.. Suitable equipment fcr.controlling frequency'and inter-cenpany tfe-Ifne Iaadfng shall bepravfded and maintained by each of the partfes hereto. Thepa~es agree to operate such equfpment in a manner cansfstent withthe caardinat d fntersys~ operation which is the objective ofthfs Agreement

13. Each party will endeavor to control the f1ow oi'eactivekflovaIt-~er s upon fts sys~ sg as nat to af.ec adversely Nesys~ ai the aDer par fes her to.

Charaas

I. Each par.g fnmrrfng a Capability Qefici ncy in any CapabilityPerfacf. shall pay the parties having Surplus Capability during suchCapability Perfod theft proportional share of the CapabilityQeffcfency Charge spe iffed fn. Scr'edule 8, attached her to and madea part her af. Payments shall be apportioned anang the par feshavina SurpIus Capabilfty in prapartfan to each par g's cantri-butfan, to the total Surplus Capability available.

In ".e ven that a par.g inc. ases or de~ew~es its iNet SystemCapability during a Caoahf llty Period ~ le Kc ant to which par „eshaving Capability Qeffcfencies are cblfgat d to mak CapaoilftyQeffcfency pzjments and ".e aIIoca fan of Caoabflity Qeficiencypayme.'its t par '. es havf na Surplus Capabi I i ty shal I then be det r-mined f~~ the Capability Qeficfencfes and Surplus Caoabilft es af

- C280—

each par.y during the months af the Capability Period prior ta andallowing the cnange in tiet Sys~ Capability.

2. E~ercenc Caoabf I f tv and Fnera purchased hereunder sha1 I bepaid rar an ae bases or scnedu ea deifverfes at the aggregat ofSeller 's Cas- or Operating Capability and ."-nergy, as deffned inSections jj. 2?. and 26., pius ten per c nt. The, buyer shall

~ canpensate any [ntervenfng Par.y.for losses incurred.

3. Suoalenentai Caaabili ami Suoalemental'Ene purchasedhereunaer sha be pa>d rar at the ratm set rara'n Schedule C-I,atMched hereto and made a part. hereof. The buyer shall ccmpensateach lnt r Iening Party ror lasses fncurred and shall pay eachjnterveafng Party the transmission racility charge set farth fnSchedule C-2, attached. hereto and made a part hereof;

4. SuoolenenMI Caaabflft Mfthaut. Enercv purchased hereundershall be paid far a- the rate set rorth in Schedule C-3, attachedhereto and made a part hereof. The buyer shall pay each Inter-vening Party the transmission aci lf~j. charge set forth fn ScheduleC-2.

5. Assur& Econ, Caoabfli v,purchased hereunder shall be paidfar an the basis of scheduled deliveries as follows:

(a) The buyer shall.pay the seller Seller's Cost far Oper-ating Capabflfty plus the seller's share of the OperatingCapability Savings resulting fran such purchase.

(b) The buyer and seller shall each receive ane-half of theOperating Capabi I f ty Savings resul tfng f~ the purchase ofAssured Economy Capability unless ane ar mare lnt r cenfngParties partfc',pate in the transac ion, in which event thebuyer and seller shall'each receive ane-third af the Operating.Capability Savfngs and, the tnt rvening Party ar Partfes,collectively, shall rec ive ane-Nfrd.

(c) Ahen Assu~ Kcancmy Capability is purchased ar sold ona shar 'the-savfngs basis fran or to a saurc outside thePaal, ane-half of the share o= the savfngs ac ruing ta theparties wf thin the Pool shall be r Mined by the buyer arseller and. the rmafnder divided equally anang the jnter IeningParties within the Power Poal participating in the trans-ac ian

(d) Tne buyer shall make payn:ent dfr .Iy ta >Pe seller andto any tnt rrening Par.g, unless the seller fs a saurccueide the Peal, in which event Paymenc for caaability and

. -".e seller's and jnt rienina Par-J's shar of ate sav ncsshall be made ta the oar.y df ectly interconnectad wi tN thescurce cuff de Ne Pool .

- C281-

6. Assur 8 Economy Energy purchased her under shall be paid for anthe basis cf.scneduled deliveries at the fcIIcwing rates:

(a) The buyer shall pay the. seller Seller's Cast fcr Energyplus the seller's share of the Energy Savings resul ing fernthe purchase.

(b) If Assur B Ecancmy Energy is delivered to a buyer overthe transmission system af an Inter ~ening Party, the buyershall pay such Intervening Party the Intervening Party's shareof the E'nergy Savings resulting frcm the t'ransacticn pluslosses attrfbutahle to transmission over the InterveningParty's system.

(c) The buyer and seller sha11 each rmeive cne-half of theEnergy Savings r suiting fram the pur>ase of Assured EcancmyEnergy unless cne ar mare Inter iening Par.ies par.icipate inthe transaction, in which event the buyer and seller shalleach receive one-third of the Energy Savings and the Inter-vening Party cr Partim, callec"ively, shall receive one-third.

(d) Mhen Assured Ecancmy Energy is purchased cr sold cn ashare-the-savings basis fran cr to a saurc outside the Pool,one-half of the share'f the savings accruing to.par ieswithin the Pool shall be retained by the buyer or seller andthe remainder divided equally anong the Inter evening Partieswithin the Pool participating in the transac.ian.

'

(e) The buyer sha11 make payment direc.Iy to the seller andto any Int rvening Party, unless the seller is a saurccutside the Pool, in which event payment ror energy and theseller's and the Inter rening Party's share of the savingsshall be mad ta the pa~ .dire. Iy interconnected with thesource outside the Peal.

7. Econcmv E..e purchased hereunder shalT be paid for cn Qebasis cr schedu ed deliveries at the fallowing rates:

(a) The buye~ shalT pay the seITer Seller's Cast. rar Energyplus the seller.'s shar cf Qe Energy Savings resulting frythe purchase.

(b) I Economy Enero~ is deliver d ta a buyer over Ne trans-mission system of an Intarreninq Par y, the buyer shall paysuet Inter reniag Pa~j'".e Intemeninq Par.y's share of theEne~~ Savings r suiting f~ the transaction, plus Tossesa~butm~'e ta t. nsmissicn aver the Inta. rening ?ar.y'ssystM

(c) one buyer and seller shaIT ean r~ceive cne-half c= ~heEner~ Savings r suiting "ran the purchase of Econ'nemyunless cne cr mar Inta. evening Par ies participate in che

—C282-

transaction, in which event the buyer and seller shall eachreceive one-third of the Ene~. Savings and he interveningParty or Parties, collectively, shall receive one-third.

(d) Mhen Kconcmy Kne~ fs purchased or sold on a share-the-savfngs<basfs f~ or t:,o a sour c outside the Pool, one-hal=of the shar of the sa~lngs ac~ing u par-.ies wf-'rin 4ePool .shall be retained by the buyer or seller and the re-mainder divided equally among the Int rven4ng Parties withinthe Pool participating in such transaction.,

(e). The buyer shall make payment directly to the salle'ndto any tntarvenfng Party, unless the seller fs a sourceoutside the Pool, fn which event payment for energy and theseller's and Intervening Party's share of the savings shall be

~ made to the party directly interconnected with -the sourcoutside the Pool.

S. Any energy inadvertently interchanged (that is, the di far encebetween net enero~ import or export as scheduled and as metered)shall be r Nrned to the supplying parties by the rec iving partfesas soon as practicable ar r receipt under load conditions re-asonably equivalent to those under whi& ft was received and fnsuch quantitfas and at; such times as may be mutually agreeable.

XIII.. Tntercanaan Bf1 Ifno.

1. The FPP Control Canter personnel shall collect, prepare anddisseminate. all data requf~ ior billfng for Operating Capabilityand Kaergy transac fons hereunder.

2. BfTIs for transactions her ender shall be render d by thepar.j providing sarric as soon as practicable ante. Ne rfrst day,but not later ban the. ~entfeth day. m each calendar month.Payment. o7 the amount so billed shall be made ~ithin tm days avatarprwant tfon or. the bills.3. Si11ing data upon which Capability Gef'fcfency barges are basedtogether with a su."mry or payment due aft r each Capabflf>i P riodto each party having Surplus Capabflfty in any Capability Period.shall be pnparH by the Control Canter personnel in conjunctionwi 0 hNe Operating Carmft and rurnfshed to each pa~ hereto assoon as prac:icable af ar the end of each Capabi'tfty P riod. Billsbased upon such data shall be rendered by parties having SurplusCapability not later ~Ban the t."ientfeth day af the month rollowing'le and o-, Ne Capability P riod in question. Paymmc of amounts

so billed snail be made within t~~ days aita" presan~~tion- o= cNebf II.

Bill:ng for all aner ~ transacftoas snail be based uponscheduled deIive~es. ine subdivision of t.e net imoor. or ~~ or.m ene~ canto the various ciassi~fcatfons o$ ene~~ utf Iized

- C283-

XIV.

hereunder shall be det rmined as the algebraic su+nation of thehourly amounts of eacn cf the various classifications cf enera~scheduled fcr purchase ar sale by each party.

Pafnw cf Oelfverv and Metering1

I. E1ec rfc enera~ will be delivered and rec ived at the severalpaints cf fntercannection between the systems of the.parties heretoand at such other paints of intercanne'ctian as may frcm time ta

'imebe established. Appropriate metering devi ms shal1 be installedas required ta measure the energy f1cw at each paint of fnter-ccnnecticn.

X'I.

2. All metering equipment used ta record transactions hereundersha11 be read and mafntafned by the respective owners thereof.Proc„du~ with respect ta maintenance, testing, calibratfcn,ca~ion and registration recards, and presumed tolerance a allmetering equfpment shall he in accordance with gccd cperatfngpractice and wfth standards which may be mtablfshed by theOperating Commit-~ .

Rear~a

XVI.

Each party hereto and the FinP Control Center shall ke p caapletand accurat r cards„meter r adings, and memoranda of its cper-aticns her under and shall maintain such data as may be necessary.ta determine ~ith reascnable accuracy any iten required ta heestimated her under. The Exemtive Carmitte and the FVP ControlCenter.personnel shal1 have the right ta caII for and examine allsu& re ards, met r readfngs and memoranda insofar zs may henecessary far the purpose of ascertafnfng the r ascnableness anda~racy of any estima~ ar swtenents of casts r Iating tatransac-i cns hereunder.

Uncontrollable Forces

A party her ta shall not be cansfdered ta be fn default in respectof any obligation hereunder ff prevent d frcm fulfilling suchobligaticn y re~man of surd, fload, lightning, ear.hquake, Rrexplosion, equfpnent faf lure, cf rf I disMrbanc, labor dispute, actof Gcd or le public enemy, ra aint hy a ccur cr other publicauthorf g, neglfgenc an the part af any employee, serrant oragent, cr any cmse beyond the control cf the par .I affec-'~d. Anypar."g unable ta fulfill fts cbligaticns by r ason of any af the=a~cfog shall exer ise due diligenc ta rancve the disabilityfnmr. d.

(II(. L:@hill

<~O par.g ac~a'hat i. will indennify pratect, and save theother par .'es harmless'~ and agafns- any and aII less or lfa-

—C284—

bility for ar cn account af any injury (including death) or damage

ta any person ar property, due ta the negligence cr misconduct offtself or any cf fts officers, agents, or anpioyees fn. cr abcut theperfornanc cr Sfs Agreement.

XVLIE. Vaf ler

xjx.

Any waiver at any time ar the rights of any party as ta any defaultcn the part of any other party cr parties ta this Agr'ment or as

ta any other mat r arising hereunder shall not be desired a waiveras ta any default ar othe~ matter subsequently occurring. .

'ssfdnÃent

The written cansent af all other parties, her ta shall be ~ufredta ef ect an assignment or the,rights or obligations of any partyta thf s. Agreeaant.

Kf=ec fve Oate and Terninaticn

XXl.

l. This Agreement shall became ef ective as af the date ft fsaccepted f'cr filing as a rat .schedule by the Federal PaverCanrissfon, and it shall continue fn er=ect until ternfnated as afthe close or any Capability P ried by the unanimous agreement ofall persons then parties hereta.

2. Any pa~ may withdraw frcnr. this'Agreement effective as of theclose of any Capahilfty Period upon three years'rfttm notice taeau other party; provided, however, that any par.g suhmf .fngnotice of intent ta wfthdraw shall be obligated. ta pay its alTaca-tH share cr the. adminis rative expenses of the ~P fcr the fullc lendar year within whiN such rnfnaticn shall beccme ef.ective.

Suar ssfcn af Prior Agreements

The Agre~ts amcng the. parties are superseded, fn their entiretyby thfs A~ent.

XXIL. Short Title

Thfs Ag~ent shal 1 be known as the Florida Cle rfc Power Pool(F="-P') Agr ~nt,IN 'ATDE35 NHHHF, each cf the pa~es her ta has c used thisAgreement ta be ex mtad fn fts corporate name by fts propercr ic m, and fts carpar te seal ta be af ixed hereun:a, as cr "'.e

day and year firs. abave written.

- C285-

TYPiCAL TUa'( TYPE

FLORiQA P -"~BRIC POMH PCOLAGREB[EVi'CSEVuLa

A, 8, C-I, C-20 C-3

The above schedules will be deternined by the Task Farce on Cost Alloca-tion and approved by the Executive Carmitte . These schedules will besfarilar in content ta the ones )llustrated in the Appendices of theUnk. Type Agreement fn Subsec ion 501.

- C286-

~ ~

ScCTIOH 6

. TECHNICAL

INTROOUCTTON

The prime goal af any power. pooling arrangement is ta'ttaina more econamfcal operation far ail pool members with

a secandary goal 'of'ncreased reliabf lity . A methodologyhas therefore been included which has the capabflity ofaddressing the questfon af whether economic beneff ts do infact exist, and ff so, whether these economic benefits areof a suitable magnftude tc justffy the exfstence af a powerpeal.

Que- to the explcratary nature o thf s report, inf ti alefforts were focused cn a means af fndicatfng the economic

- str ngths or weaknesses fn power pacl.ing through s'atewideeconomic dispatch. The economies ta be real i zed by pooloperatfons are dff fcult ta quantf y but they do includepositive aspe'cts such as:

Fuel. savings.Lowering af reserve requirements and. attendant

lower invest~ents fn production facilities.Investment. ecanomfes of scale for production and

transmissfon plant.Reduced 'expenditures, in the site approval processes .

Offsetting these ecanamfes are cas fncreases such as:

Increased investments in fnt rcampany transmissicn-facflities.Additional casts'c4 pool staf'ng.Centralized LOO facilitfes. and individual

interface equipments.

OP%RATIONS

I .. Sta e-wide Oisaatch Studies.

,A revf ew af available methods tc analyzethe cperatfcn o 10 af.the. largest utflitfes.fn Penfnsular Flarfda resulted in use af ~

computer laad dispatch program which hasautput capahi lfty in fuel cansumptfcn(N I.lian 8TU} as well as manet ry terms,.when an assumed fuel cas and availabili yare input. Initial candi ians reer chosenfcr a pe k month cf the year, using a peakday and an cf -peak day, ~hfch include eachhourly interval of the day. Further,Yarf cus cambf na "icns cf fuel avail ah i 1 f ty,size af units treated as mid-range, and

- C287-

capaci ty factors «ere cansfder d in heanalySfS Of the State-wide KCanamfC OiSpaCCh(SMEO) on the bus-bar basis.

An in-depth review af these cases, ofwhfch 13 major cases were considered (See TableI far'eCafl), resulted in Che.idenCificationof'any areas of canc rn which wi 11 be discussedfn detail. In an effort ta identf fy the basicimalf cation of these studies, camparfscns weremade on a basis af minimum fuel input (l4fll

fcn'TU).

One case, us,ing a unit commi tmen"„ typeprogram, verified the magnitude of passiblesavf ngs for. paal df spatchf nq versus indi v i dualdfspatchfng. Copfes or, the output cf all S'AKGcases are available for review upon request.

I t.. Ana1vs1s

Fram Che abave 13 cases analyzed (SeTable I), economies can be obtained by SBKO

'as ccmpared .co dispatch on an individual. basis,as wauld he classically expected. Paramet rsthat would effect the magnf Cude af these savings,are as fol lows:

(a) Transmfssion system capacity andlasses..

The cases, as studied on a hus-barcriteria, imply the assumptianthat, a I I Che necessary tr ansmi s sf on

.f'acf 1f ties exist, and. that optimum~ operation an a heat rate basis is

also ap tfmum cn a Cransmi ssi an loss. basis. Sface neither. implied assump-tion is carrect, 'means mus be de-veIcped ta identf y where addf t|ona Itransmission facilities may be re-quired, and what the system lossesare under each dispatch conf 1 gura tf on.Thfs resul ts'n Che need for muitfpl.eload flow cases tc answer and quantifythese ques tians, as we I I as the u I Ci-mate need ta fnclude a suitaole lassmatrix wi .h any camauter program usedfor s at ~ide ecorom c dispatch.

(b) Fue I tjpe and avaf I aha I f ty.Cans train ts concerning fos s f I fuelsare typi cal ly: (I) Avai I abi I i ty inthat on 1 y a 1 imi ted amoun t of natural

- C289

gaS is obtainable, and often ona "Cake or pay" basis; (2) Underfuel'shortages, dispatch may be

~. by fuel avail abfli ty and n'lX econ-omy:, (3) Qual fuel plants (gas/ail)..can shift their: relative eccnomfcpasf tion dramati'cally when changingfuels; (4) Fuel costs at each indi-vidual p I an C must be 'onsidered torefIect all costs sustafned by eachutility,. whether bv pf peline orbarge, fram a bulk t,rminal paint;

~ (5) Kcologfcal canstrafnts as Ca the- tfme and. amount of fuel Chat can beused at any partfcular plant; and(6') Only cne utility has .coal avail-able and fs limited by supply.

(c) Oi spa tch ccnsf derations

Suitable dispatch programs will berequired which recagnfze the cost oftransmission losses, casts of start-up, hot stand-by, shut-dawn, mfnimumload, as well as which units are baseload type, are swing type, ar are in a"must run" cammf Cment,

Table l is. a summary of the 13 SMKD cases studied farvaryfng constraints on (I) available fuels, .(2.) capaci tyfactors, and (3) uni Cs used as base laacL or rar mid-rangeloading. Cases 4a and 4b were selected far analysis becauseall ossil fired steam units were constrained a oil usage,which. result d in allowing only ane parameter of the d$ 'spatchmodel tc vary. Sy use af thf s fnput constraint, a df rectcomparison of Che economfes ta, be obtained in the use orSMKQ cauld be defined.

Table KE is a summary df the resul ts of Che ecanamicCLTabIe Ll are fmportant because ar one implicatians or Cheresul ts. 4teanfngfuI numbers are presented whfch demans Cratethe possfble magnitude of savings for bus bar dispatchingwhen all generating r escurces in the 10 Flarida U"ilitiesare Crea" d as "one system". Mhen "one sysc r" di spa-ch i s.'compared with an individual system apcroach Ca meetinc thesame laad, a deer ase af 69,7.9-mi I i fan 87Us r sul t d =crthis typic I day. Also the average dailv heat rat imprcveCZ.= fram I0,348 ta 10,08S GTU/<'AH far "cne system" dispatch.

Table l f E f s a summary af the resul ts when uni s a f I COHM ar 1ess are allowed tc cycle wnen necessary Ca me t theload and is an addi tfonal constraint'or Che case analyzedabove in Table I E. On a r lativ basis an incr asz af IO8,697mf llfan BTUs ~as nhc~rvorl ~'non ~ha ci~~4Ai

dispatches as compared ta the "one system" type afoperation. tt is also to.be noted that the average daily.heat rate improved 4.0~ from 10,34'8 Ca 9,933 GTUs jiUAH fora "one system" dispatch.

A study of what effect transmission lasses have an Cheiadfvidua1 versus "ane system" concept was performed forthe two cases described abave. l.aad Flow cases for 6:00 A..'l.and 6:00 P. N; were sfmu1ated, boCh for fndivfdual systemdispatch and for statewide dispatch. Under .the 6:00 A. bt.light 1oad condiCfans, power losses increased 20" under thestatewide dispatch. However, under 6:00 P. N. heavy loadconditions, power 1osses decreased. 6 under stat wfda dis-patch . Studies af typf cal load cycles. would be necessary Co.

document the effect of these transmission system lasses .

Canclusfans

'There are probable savings fn fuel far Che "anesyst m" dispatch of the 10 Florida Utilitfes. Thesestudies. indicate great econamfc apparCunities for.Florida Utilities ff'hey choose ta pursue Farmalpoa1ing. . lf urther studfes are requfred, it fssuggested that these studies be implemented by anAd Hac cammfttee with adequate budget and staff taaccomplish the scape of work within a reasonableperiod 'of time.

C. PLAilHli'fG

Generatfon Plannfna

The "ane system" concept fn the gener ationp1anning area shows obvious benefits in the sharingof fnstalled generatfnq reserves. To illustratethis effect an example af five (5) individuallyp]armed systems cambined inCo a formal paaI is pre-sented. Figure 1 and Table I'I are the f llustratians

.supportfnq. the fallowing discussfon.Table I V f s Che rese r ve requi r amen cs for the 6

sysCems when they are planned an an individual basis.'Af Ch a total. system peak load of 20,000 HM, Chefnstal led reserves would be 6,40d i".'A, wi th an ef ~ ec-tive reserve a 3Z.Q

Referring a Figure 1 which is the reserve re-quir ment far a "one sys C m" canc P the same ZQ,QGQi".M .atal system peak load would requfr 4,400 HiA orZZ r serve with .a Iarqes t uni C a f 880 Hl<.

—C290-Comparing the 4,400 HW "one system" reserre wi Ch

the 6,<00 H~A "fndi vi dual sys Cem" reserve shows a

annuaI fixed cos (f.e., fnterest cn money,dopr ciation, taxes,. fixed maint nance, etc.) ofSZB,QQQ per megawa t par y r, an annual'avingsof iQ mi I I ion dol lars resul ts for the„ formal pool.arrangemant.

.The present fni'ormaI Florida Pool based onindfvidual generation expansions, has achieved asubstantial portfon of the potentfal savings Chatexist in a formal pool. Formal pool goneratfonplannfng, on a "one system" b.sfs is a real opportu-nity for all systems to- obtafn addi Cfonal savingsfn the future and shar in Chose savings on anequitable basis.,Transmission PIannfn

Transmission planning will b necessary Co eeetboth Che reliabflf tj needs of'll pool members, andto meet the through-put capacity r equf red Co carryChe power i'Iows fram the mosC erffcient generatingpoint to the point of-utilfzation as seen byeconomic dispatch.

t.fmf Ced real estate and envf ronme'ntal consfdeza-tions make joint pl'arming of future transmissionfacilities necessary fn order to conserve capf tal ..

Eased on the fact that 500 KV fs now the highestoperating transmissfon voltage in Che state with anestablished undarlyfng 230 KV bulk power grid, f t isreasonable Co assume modiÃcatf ons wf Ch; proper costallocations to the future transmission requfr amen s.for a "one system" pool can be achfeved. Joint Iongrange transmissfon studies have illustrated ef'rectf veoptimfzation of the transmission grid fs possiblea )oint generation expansion plan exfsts.

The main ingredf ent Chat differentfates thestate-wfde dispatch Cransmissfon needs fram the indi-vfdually dispatched needs is the greater distance

oi'enerationFrom Che equivalent sys m electricalcente . Thus, the consfderatfon ov" state-wide- dispatchmay have the erfect on bulk power transmission oireassi gning the'r fori ties o-, cons true tf on progr ams,as well as Che possible r location oP and additionof new transmission =acf If ties.

- C291—

TASLK I

STATZ~IOZ FCONQMIC O!SPATCXCA'SE CKSCR I P T ION

Case Ha.~a- 1 —---—P-eak Day Data Dasa3a - 2 —----—-0ff-Peak Ray Qata Base k

Constraints far both 3a cases were:All but Gas Turbfnes on line and assumedhase load operatian.

3al - 1 ————-Peak Oay Oata Base3al - 2 --——-Off-Peak Oay Oata Base

Constraints far both 3al cases were:All Gas Turbines an 1 inc and assumed baseload operation wf th caal uni ts at, 80" capaci tyfactor.

3b3b-

3c3c

3d-3d-

3dl

4a-

I —-------Peak Oay Qata Base2 —-———-0 f-Peak Oay 0'ata Base

Constraints i'or both 3b cases were:0il fired steam units less than. 50 MM assumed~ . ta be mid-range..

1 —----—Peak Oay Oata Base2 —---—--Off-Peak Oay Oata Base

Constraints for case 3C - 1 were:Oil fired st am unf ts less than 100 MM assumedta be mid-range.Constrafnts 'i'ar case 3c - 2 were:Oil fired steam units less than 50 MM were removed.and SQ ta 100 MM uni ts assumed ta be mid-range.

' 't———---,-Peak Oay Gata Base2 -»---—-Off-Peak Gay Oata Sase

Constraints far bath 3d cases were:Same as 3c cases except no gas was available.

I ————Peak Oay Oata BaseCons tr af n t for thi s'ase wa s:Same as 3c - I exc pt na gas available and coaluni ts a 80 Capaci ty Factor .

I ——--—P~ak Oay Oa a BaseCanstraint far t'his case was:Same as 3a - I, but included Crystal Rive.»Nuclear, and did nat have c'aal ar gas available.

C292-

4b - I —-———-Peak Oay Oa a SaseCan s traf n t for thi s case was:S'arne as 3c - I, but included Crystal RiverNuclear, and did nat have coal ar gas available.

4c - 1 --'--—-Peak Oay Oata BaseConstrafnt for. this case was:Same as 4b -- 1 but, all nuclear unfts at60" capacf ty factor.

iVote: 1974 data derfved by fncreasfng 1973 load data by 10and use of common i'uel prf ces f'r all companies.

6-7 ' C293—

ra J

TABLEKE5 J't. i a

STATKMCOK KCQNQMCC QCSPA'H STUQYTYP I CAL P EAiC LQAO OA Y

ALL GENERATING UNCTS BASE LQAOEQase a)

:a TC LITY .

;ama

:PL."P C

ECQEAUCate land

. all ahassee"af«esvfI leLake Norths ro Beach

fa ta l

STATEOISPATCHMi I I f on BTU

1,253,182592,185392,866.204,394120,49431,57938,89422,843

7,85Z10,086-

2s674sI75

INQ I V I DUAIOISPATCH

'illfan GTU

1,396,246'08,665

336,480205,103

73 a~6048,33149,81624,78611,70612,235

2,739,934

QELTA

Mfllfan 8'TU

116,064~ 16,480

(-) 56,3"-5739

(-)46,92'6,75'0,92~

1,9434,0542,149

65,759

0 i:.LY HEAT RATE, I:a/XMH IQ,085 10,348 263 ar 2.5n

.".s~~mations far. Tablea

~ l ..All uni ts. except Gas Turbines aperatf ng and assumed base laaded.,Unf ts include Crystal River Nuclear. Fuels excIude. the use afcaal or gas because of futur e ava.ilahili y.Unf t heat r ate data fs e mixture of desfgn and ac.ual per=ormance.

6-8— C294—

TAG LE E E E

1IEESTATKMEOK KCQNONEC OESPATCH STUOY

TYPECAL PKAiC LOAO OAY

ALL UNE;z ShALL R 7!t'AH 100 "t!3 NEO-RAt~Gc, LOAOEO! ase

UTILiTY

Name

FPLFPCTcC54EAGUCt.ak landTallah sseet afnesvilleLake dearthVera Oeach

TOTAL

STATcOESPATCHMillion STU

1,305,476684,132404,609190,134IIZ,629Ijs60A-12,113

3 F028947769

Z,631,341

iNO E'I EQUALOESPATCH

Mfllfan 8TU

1,369,2Z9608!666336,6G7206, I 03

73,866~48,33149,81624,78011,70612,'236

2,740,038

OKLTA

.Nfllfan BTU

63,75324,533

(-)68 00214,969

(-)38',96330,72737,70321,782'0,759

11, 466

= 108,697

OAELY HEAT RATc.STU/K'rN 9,933 10,348 415 or 4»

Assu!n" fans far Table ii?.Sane as fn TahIe E?,except all units smaller than 100 btM are !nfd-range Iaaded.

~ 6-9 — C295-

TASLE IV

GENERATION RESERVE REQU f REAcH o

Sys t"emPeak HM

Size af Ua<tf4

RequiredReserve

Require'dReserve

HM

10,0005,000

. 2,500I,SOO1 QQQ

20,000(TOTC<).

8804'40'20110110

3232

. 322838

32(EPrECTr VE)

3,2001,600

800.420

3c3Q

6,400.(TOTW<)

6 10 — C 96—

ICQ,CCO90,CACCPCQT~CQCHOCO

IO,CCCQCCQ$4CO?,QOQ

54CO

~~AC

ZCgCO

Q

l

I I I I 1 I

P"'RC ~IT RESKrVK RKQUIRKQ FOR tCSS QP

IJJAQ TO SE K-PKC i M CHK OAY KYERY T 'lY~MRS, 8ASED C'4:

I. GG{~~iATQR FORCED CUT~K RATE Cf R%2. I CAO FORECAST EPROR STAHQARD

0 YIATwiiQH CF ='3~,~eO'CHKDUL~0 UAIHTE.IAHCKFILLS UP

SEASQtIAI, LCAO YA J ~o

4, SYSi~~ COHSIST ~~~ QP IHOICAiiDSfZK UHITS ~

8~0 'LlYl UHITS

I I I I I I

ZRO QVf VHITZ

IIO bAf UNITS

I CCQQ a IQ Ia, ZO aS W - 3a W aa 'O

R~~IRKD PKR C~ RESERVE

FlGURK I

—C297—

.SKCT ION 7

RKFKRKHCKS

2 ~

The L964 National Power SurveyThe L970 National Po~er Survey (Part L, Chapter'L7)

Power System Operation by 'Robert H. Hiller.Chapters 2, 4 and 8

3. A Treatise an Pooling by Kdwin Yennard. 4 John J. Kearney

Transmf ssfon Problems fn Kstablishfng a. Power Pool byRobert Brandt, Consultant

Contracts far Klectrfc. 0 f If ty .Interconnections byL. B. LeYescant

6.

7.

LO.

.11.

I Z.

13.

[KE"= Transactions. on Power Apparatus and SystemsYolume 84, Ho. 6, June 1968

Caralfnas Yirgfnfas Power Paal Agreement, July 1961

Hew York Power Pool Brochure'Qrganfzatf cn and

Functions"'ew

York Power Pool Srochure'Agreement"

Hew York Power PaoT, "Oescrfptfan oi the History, Purpose,Qrganfza".fan, Functions and Operations af the New YorkPower Pool', March 197Z (revision January 1973)

PJM - America's Pioneer Power Paal BrochureOecember 1969 and Oecember 1972

Kdfson Klectrfc institute"Report cn Interconnected. K1ectrfc Power Systemsin- the Unfted Stat s", May 1967

Kdisan Klectric ~nstf tute, Rate Research Cammf ttee,'Power Pool Ra es", January 1972

7-1

- C298-

STATE OF FLORIDA:

COUNTY OF ORANGE:

AFFIDAVIT

BEFORE ME, the undersigned authority,-.personallyappeared HARRY 'C. LUFF, JR., to me known and<known to me to bethe person named herein, who being first duly sworn'deposes andsays as follows: l

My name is Harry C. Luff, Jr., and. my res'idence isi950 Terrace Boulevard, Orlando, Florida. I am AssistantGeneral Manager of Orlando Utilities Commission, a positionwhich I have held since 1967. I have'een empl'oyed by theCommission since 1946 and have served in Operations, as PlantMechanical Engineer, Assistant Superintendent of Power,Superintendent of Power, Manager of Electric Operations, andAssistant General Manager. I hold a Bachelor of Science degreefrom Brown University, majoring in mechanical engineering, and.am a member of the American Society of Mechanical Engineers.

Res onsibilities: My responsibilities'with theCommission include serving in the absence of'he. General Manager,long-range facility and financial planning, attending powerindustry meetings as official representative of the OrlandoUtilities Commission, and participating on a number of industrycommittees, primarily in the Florida Electric Power CoordinatingGroup (FCG). I have been involved in meetings and other policylevel discussions from the inception of FCG. I served asPresident of Florida Municipal Utili'ties Association in 1972.

I am personally acquainted with-those persons whomanage operations of electric utilities of the State of Florida,including the Florida Power and Light Company, having beeninvolved with them in many committee assignments of the FCG. Inthe FCG I have served on the Steering Committee, which presentlyis designated as the Technical Advisory Group, which includedpersonnel of Florida Power and Light, and whose purpose wasgenerally to direct the functions of the Operating and PlanningCommittees of FCG. I was involved in the early development and,forma ion of the Florida Electric Power Coordinating Group andserved as meeting Chairman of the Formation Committee on severaloccasions in 1972.

The Orlando Utilities Commission desires the oppor-tunity to have access to nuclear generation because variousengineering studies performed by the Commission's consultingengineers, Black and Veatch, have shown nuclear capacity to betne lowest cost alternative generation source available. These

—C299-

studies have also shown that the Commission is unable to financean investment in nuclear capacity on an independent basisbecause of the Commission's size and financial capability.Based upon my total knowledge and the information available tome with the Orlando Utilities Commission, it is my belief thatunless the Orlando Utilities Commission has the opportunity toobtain nuclear power resources, its competitive situation willbe seriously impaired. Apart from any other factors, a jointventure would b'e necessary for Orlando to participate in nuclearcapacity.

The nuclear capacity available to the Commission inthe near future is the 13-megawatt share that it was able topurchase from Florida Power Corporation's Crystal River Unit 03.This provides an example of cooperative effort at joint develop-ment in Florida. However, this 13 megawatts. amounts to only1.8 percent of the Commission's presently installed generatingcapacity. It is significant that this 13 megawatts will reducecosts to Orlando system rate payers by approximately $ 900,000annually.

I know of no other presently planned nuclear genera-tion in Florida other than that apart from Crystal River 53 andplants being planned by Florida Power and Light Company. Should.the Orlando Utilities Commission be excluded from nuclearcapacity apart from its 13-megawatt Crystal River share, in myopinion it would seriously impair the available opportunities tothe Commission.

Moreover, the Orlando Utilities Commission has beenfaced with a virtual cessation of natural gas deliveries, whichin 1972 was the source of approximately 65 percent of our annualfuel requirement. Coal is not available to us in the short near-term future. Since Orlando is located inland and since peninsu-lar Florida and the adjacent Southeast does not have significantcoal resources, this genera ing source has limited access atreasonable costs. Further, it presents problems of conversionof existing plant and environmental constraints.

The Orlando Utilities Commission does not have accessto hydroelectric generation.

Fuel oil is presently available, but in recent yearsits costs have risen more than threefold.'I

In this situation, there is a present impairment ofOrlando Utilities'bilityto compete with Florida Power and.Light, which has both nuclear and gas available for much of itsgeneration. As an official with the Orlando Utilities Commissionand as one familiar with municipal generation throughout Florida,I am concerned that such competitive conditions can erode support

- C300—

for municipal electric systems, thereby reducing competition forwholesale electric power services in Florida. In my opinion,not only would this be unfortunate from the standpoint of ulti-mate consumers of electricity, but as an immediate practicalmatter, assuming the stability of the Orlando system, if othersystems go out of business or if their financial health isimpaired, it limits the sources and outlets available to Orlandofor bulk power sales, purchases and exchanges.

Early engineering studies by Black and Veatch in thelate '60s indicated- the advantage of coordination with otherutilities enabling installation of larger generating units and ~

sales of excess generating capacity during 0he early years ofoperation of these larger units. Engineering recommendationsadvised the Commission to contact other utility companies,including Florida Power and Light, to determine the feasibilityof coordinated activities. Contacts .with Florida Power andLight representatives in 1969 revealed no interest in .this typeof coordination on the part of Florida Power and Light Company.Spokesmen for Florida Power and Light stated that they had nointerest in this type of coordination because of the very smallamount of capacity that would normally be made available fromthe size unit the Commission would install, considering the veryhigh growth rate of Florida Power and Light. The amount ofexcess capacity that Orlando Utilities Commission could offerwould only cover several months'rowth in the Florida Power and.Lignt system, and would be impractical over an extended period.Florida Power and Light suggested that this type of coordinationwould be more practical for Orlando Utilities with other smallersystems.

In September 1972; Mr. Ernest L. Bivans, presentlyVice President of Florida Power and Light, contacted Mr. IrvingReedy of Orlando Utilities and Mr. J. K. Wiley of Jacksonville

'lectricAuthority at a meeting of the Florida OperatingCommittee and indicated interest in -joint discussions for develop-ment of coordinating generating capacity. Mr. Irving Reedy,

'irectorof Power Transmission for Orlando Utilities, advised meof these contacts and, as a result, a meeting between Mr. MarshallMcDonald., President and Chief Executive Officer of Florida Power .

and Light Company, Nr. Curt Stanton, General Manager of OrlandoUtilities Commission, and myself was arranged in October 1972. Atthis meeting representatives of Orlando Utilities Commission indi-.cated interest in holding joint discussions for joint developmentof large nuclear and fossil generation projects. Mr. MarshallMcDonald responded favorably by suggesting that the engineeringstaff representatives of Orlando Utilities Commission and FloridaPower and Light hold meetings to discuss possible alternativegeneration projects. Mr. Curt Stanton suggested that JacksonvilleElectric Authority had also indicated interest in participating

in such meetings. At this suggestion, Mr. Marshall McDonaldcalled Mr. Louis Ninnard, then Managing Director of theJacksonville Electric Authority, to inform him of the meeting inprogress and to inquire as to Jacksonville Electric Authority'spossible interest in participating in talks at the staff levelMr. Ninnard responded favorably, indicating that JacksonvilleElectric Authority would have a representative attend thescheduled talks. This meeting led to later meetings, the firstof which was held in December 1972, in which the staff partici-pants from Orlando Utilities Commission, Florida Power and Lightand Jacksonville Electric Authority agreed. to investigate otherjoint generation projects in the United States in an effort todetermine what would be the best form of agreement to be usedfor a joint generation project. The efforts of this joint studygroup were announced by Mr. E.. L. Bivans at a meeting of theFlorida Operating Committee in December 1972. The CoordinatingGeneration Study Committee, as this group was later named, metagain in February 1973 to discuss assignments of the individualCommittee members. Florida Power and Light indicated that theirinitial reaction from comments made by Reid and, Priest, Florida.Power and Light attorneys, was that the best arrangement for ajoint venture would most likely be under the tenancy in commonarrangement with an undivided interest. 'r. M. F. Hebb, of theFlorida Power Corporation, participated for the first time inthe February 1973 meeting as a result of the announcements madeat the Florida Operating Committee meeting inviting all interestedparties to participate in these discussions.

During the course of discussions held at these meetings,Mr. E. L. Bivans indicated that capacity from the St. Lucie XXnuclear project was needed by Florida Power and Light for theirsystem and was not available for sale to other utilities. How-ever, he assured the other participants at the meetings of FloridaPower and Light's willingness to share future generating

capacity,'oth

nuclear and non-nuclear.

These meetings culminated in an exchange of correspon-dence initiated by Florida Power and Light, on May 1, 1973 as tothe interest of Orlando Utilities Commission, Florida Power '

Corporation and Jacksonville Electric Authority in purchasingcapacity from generating units in three alternate expansion plans

'n

the 1979-1982 period. Orlando Utilities Commission,Jacksonville Electric Authority and Florida Power Corporation allresponded to the May 1, 1973 inquiry from Florida Power and Light,indicating the amount of desired capacity.

No formal response was ever received from Florida Powerand Light to the letters indicating interest in the alternateplans that had been proposed by Florida Power and Light in May1973. Verbal inquiries in late 1973 as to the Florida Power and

— C302—

Light position on the Orlando Utilities Commission response wereunsuccessful in obtaining any commitment. The stated reasoningfor Florida Power and Light's lack of response was the constitu-tional prohibition against joint ownership by municipal andinvestor owned svstems in Florida.

Zn late 1970, Jacksonville Electric Authority con-tacted Orlando Utilities Commission indicating an interest inpurchasing excess capacity from the Orlando Utilities Commission'ssystem. Mr. J. K. Wiley, of Jacksonville Electric Authority,made several contacts with Mr. Harry Page, Florida Power andLight Company, to determine if an agreement could be made forFlorida Power and Light to wheel energy from the OrlandoUtilities Commission's system to Jacksonville Electric Authority.Orlando Utilities Commission had excess capacity and JacksonvilleElectric Authority was capacity deficient. The question of abilateral agreement between Jacksonville Electric Authority andOrlando Utilities Commission for the contract changes for thecapacity and energy was discussed with Mr. Page, who stated thatthis was unacceptable to Florida Power and Light, but that per-haps a multilateral agreement might be arranged. Mr. Wiley

and'r.

Page discussed, this possibility in detail and. I was informedby .Mr. Wiley that there appeared to be a real possibility for asuccessful culmination of such a multilateral agreement, whichwould involve a purchase of capacity from Orlando UtilitiesCommission by Florida Power and Light and a resale of suchcapacity to Jacksonville Electric Authority. I was told byMr. Wiley at a later date that Florida Power and Light haddeclined= to enter into any direct arrangement between OrlandoUtilities Commission and Jacksonville Electric Authority. Mr.Wiley said that because of this position taken by Florida Powerand Light, the purchase from Orlando Utilities Commission byJacksonville Electric Authority would not, be possible, and thematter was not pursued further.

More recently, Florida Power and Light has taken theposition through its representatives at FCG that OrlandoUtilities Commission and other. smaller municipal and cooperativesystems should not have a legal ownership in the proposed 500 KVtransmission system'hat would strengthen interconnections amongFlorida utilities and with the Southern Company, although theyapparently are not adverse to other systems participating in thecost of-construction on a limited basis.

Again, through its representatives to FCG and else-where, Florida Power and Light representatives have stated thatthey are unwilling to participate in a.statewide power. pool andhave not been willing to enter into coordinated development, ashas been discussed above. Ernest Bivans had stated early in .thediscussions for formation of a power pool in Florida that

— C303—

Florida Power and Light did not favor a fully coordinated powerpool, but a more limited concept which reflected in essencewhat the utilities in Florida were presently doing under exist-ing agreements. He further stated that the concept of jointdevelopment on large generation projects and the exchange ofeconomy energy would provide the equivalent benefits to that ofa fully coordinated pool, but with the flexibilityof present-contract arrangements. This position, which had been indicatedin May of 1975,'as completely altered in October 1975 byMr. Bivans in a meeting of the FCG Technical Advisory GroupPooling Task Force in which Mr. Bivans indicated a completeunwillingness on the part of Florida Power and Light to partici-pate in any pooling arrangement in Florida.

'he

above activities are in the context that the StatePublic Service Commission has requested the FCG to make studiesto determine the benefits of a statewide power pool. This isillustrated by the attached directives from the Florida PublicService Commission that have been given to FCG.

Florida Power and Light, through its .legislative repre-sentatives, opposed a proposed local law submitted by the OrlandoUtilities Commission that would have allowed the. rights ofeminent domain outside Orange County. Such law would have.allowed Orlando to build off system generation, thereby avoidingenvironmental and other problems associated with building new.generation in Orange County.

Florida Power and Light opposed implementinglegisla-'ionof the constitutional amendment passed in 1974, which

legislation would have allowed joint 'financing by municipalitiesthrough use of a municipal power authority for participation in.joint. venture with cooperative and investor owned utilities.

Within the last nine months, Florida Power and Lighthas bought economy energy from the Orlando Utilities Commission.Florida Power and Light has not done so in the past although theUtilities Commission made known its availability.

Although Florida Power Corporation has purchased sub-stantial quantities of firm power from Orlando UtilitiesCommission, Florida Power and Light has never done so'.

Zn my discussions with Florida Power and Light over thecourse of time, Florida Power and Light has indicated that one oftheir major concerns in entering into cooperative arrangementswith municipally owned utilities is that such arrangements mightreduce power costs for municipal utilities and thereby strengthentheir competitive position as compared with Florida Power andLight Company.

Considering the relative sizes and territorialxestrictions binding the municipal systems in question, it ismy opinion that the fear of competition expressed by FloridaPower and Light is unfounded.

STATE OF FLORIDA)SS.

COUNTY OF ORANGE)

Harry C! Luff, Jr.<', /V

Sworn to and subscribed to before me this 13th dayof April, A. D., 1976.

(SEAL)

~ ~

Nosy Public

Notary h;tlic, Stato of Rorida at hago'y

Coo:waai n ca~~ lJy 22. 87&looloa ay Arooocorr Piro 4 Cor~ Co

- C305—

~ C'7 ' 8 8'4 CA 1C I 'a! i S~~I~~O ~

+ ~~4~ ~ 'WMMM

+ i~44 ~v~w>am0

P ~ I

ScvM- ~a>e Nr:c1ea= Pc~e~ P~ ~~tN.~C Becket, Mc P 636K e =Q-389 A

C PCS aO

X have ve~ c f~ye p have

-eM ""e a 'cav'" hv a r C.

-" ~g ce~ '" s "e~a~ qA4Iwss» ~

Pace a i 3 «~~ ac K~$1

c "~e hes c =r -~~, 8'6 -c~ car. zc ~~ . Bee yH'~ >ey w Sec~a~&~ 4~72 a~ a =ee~g c~ ""e

= c=8" t -e=z~q Cc='"™ e.

Z vault have'ha4 ra a@a= ta can c"""~ ~ca="'-~ ~ 'c==z 'czar ~ a a=pcseP ".c'=~~7~ ~ <~» ~~ e 4~~>g~iq' as c~~ o

New @as. w wet=-g c~ ~e =~c=='P~ C=e=z~~~oe '" Se.a~a 4~72

2 0 ~'e Aw~s~ U72 -~eMg c+ the -~c~"'P~ 0-e=aK"gC—m~~ee< -" ''e aC emcee. hv:m q:.e c.v a=c.

g vzs c 'c e dec ~ Z 3 W ev

3% we~4m eaasge~mq c 4'~eb ~$ c~ Q Qeee~ls 4 ~g Qm~ wise~was '- Qc="e= X972 Z 8'P. ma~ at "8. 5hz ~e~'"qas I was w =a=-e c= vacua~

Sys~ Pa~ce . Supp'y. Ras=cas'~' ' c- svs"-p was wCe» Me Ca~e~ M~ e='-q Ce a

C Z~~ hac, c== ~c~ 8~ha'' '"chic z'~ a'v.

q a ~sz eve t5~ %s 2 " lac

e~ -e <7= "c ex=™~ '"e -css-'~- . '""m~. c= -:c'-='v

=e me C=~ a"- Za~c=v='' '

C306-

C N7~~ 'r3YS r wlMS ~ca n,'l~~t .cat autasYMcI 'rcptfC%4 locs ACv.

0

«C«

Zc e. ««p c1 s«A « ~ oe «

'I

e L c««S ~~«eCe ~ ~

N g««g~o~«C«««1 ~«4 ~~ ~ J SM«1

hes" s ~ ~~l~, = hat ss s"-sama~ ~=s 'seT-~~ c= any~ ~1 e '" OUC '- ~~69 Pcweve=,

X. N «mme= | e c ~a~~ w'~u ~~~ t~a w~ wh'ch hesm d. ~"a~ | -~1-cc van P~l"a'"e N ms~ N p. Ju "cCeca~m ~ cm "~~ mc ='"c ccas~ "1 e, p=='-<~

hy HX, ~- c ec" "- w-'"" 5". Lv.c='e Zc. Z,~Se QZ~T«CC ga 41 4 eel gg ~~~pi ««bog ~««oaSC«Q %el 4 es~

+Z«e «~a + 4~1 4 Coe 4e ~«4«Mt~< S

es w Q

Pace 4, 2 8 ea~~a

Pace 4 ~

=SSM~ ~~1 p 4r'C= " Clem=, We=o C==='-e4 M

«g~eeeve ~~i«C« ~«A Jg~C«~ 1 '1 o ee a~«ee eel ~van.s='' ~~-a ve~ ~dZy —""e~ was ~ c''Ma= c= she ce =lc='8 Pare= a tU~= Ccma gi

~1 y«CC geek '1 i eei ~ss ~ntw~eo SggrZ We««Qgg~4«p S«e««CWeZ g~«ee S4 e~e i «eI«e S~ Ce«e«al a«O~

- c Zc—"can "-" ~ Based. c= - ' je ac'.'chic'~wc' c~~~ -'"r. '" 'M se~"c a a~ " c C=~l-da Q "~e, L ~w U70's.

geseJ p«Q glsg «Z«or«o~eaie

~48c ~«zc" Q ~ p QCLt g ~11 6 C~ p

~~eel go $+he« ~««w4 ~~4«~1 +««~44 4 e~e4 pg~ei «

0 esse-'~~p aecKLSe e ~+~ Cwas m ec' 'mt='-~,Hc™ rm~'"'a

Z4eeeaa~a~ ~, ~h~A p ~««se4 k««eel ~««1 ~«use ~«w C««1 4

he pauK'K c=~wM N '" C=ml-m p=C sac!acr.—.~»'sac =assaaa s a ~ ' ao=~'~ ~e

S~ ~WW~ ~~ ~~"'~1 ~C==~ ~~seC '- M174.

V45 ~ ' ct S ~«s«+~gg Q««~e« ~Tly ~ 4 «e «g Jal 1

~4» '1 1 y«4 rave CA p ~«« ~ 4»«~

mc'e =~e= =~1= c= 480' ar."'.ac= ~ c—Po~l~4.~=ese= =' ~ ~~ -"- was e—'=-aL~ s —'"

— C307—

Ave»«««

'"e

sa~ c

« ~T'T

-a- e St=a= aS 19Ti . Kcweve=, hecsme ca1 «~P ~«'«««ss ~»e4 te

~4 «Ctg S~»g«1 ctP

76-

pee esSce Qtsee ~~4» p« ~ Ate C m C+<«s««e««at «ts tete «~ «e"c- -a a~ — ga e -- c-

4C» k~~eh4tes g ««ZS~» ~ f »See ~ ««ee«a~4e s» «Z«»~ C 'p»)c ~ » ~ v r~e!«QQe» 0 z« ~4 ~fc ezs

Pace 5, "-~ amc=mix

~e r~~~p c~ z Sdd ~ ~~=~~'vs™ ~~ mc-~cv.~A Ca@—z was has&.m a~ g stan~g ~ac.~--a.M sac=6 haswess a~ c'ales, ma t~~''"-'es scale,r~ ~ "~~s'~ ''"~ "«a a

We'- " ~ —«. «e~~c, sc!cent Mec cg waste hW8. eat ewa Ss" at 'ca af ~ SQQ cw'.c='~mg ~ e'- cw' '-q su ' s=~

—Gee=-w. HL wea'~ h~t md cwa "'-e Sea Jrr ~tt---~ se~" '~ "~c='''"'es, a ~c=~ Parte=C =c~~r,.vc~~" g~~ a= c«~ '-e Sod ~w-«seW-c -' ~sc'''8'-a ""e Sdd hv "-'e ~w Cac=w a-> zsscc='z > Kdd Rv

elec='c ac~ca m= s'' a - ~tc=c sws~ '"Pw~='ca, '~ @as p~caec hy HL, ~W, a=~ hC"w. I a 4

f « ~ «~«'f g jeegt Q~»'f Q Qte4 '7 4 se4 ~ta~a ="~ 'c C=a~ .~ save~' ' —'c-'-a'~y

@RAN s~ c e e e M ~ v~»~~bee M ~c '~ ="sa. a=as Z~~, ~. L'™reve= se~~ly =-csee a~ c "e w= c c~~'-'=

c pay"'' ' hene '8 -ac 'WPcLce 5 ~ ~zs a~c»N ~ cLQB Pace 6 t ~~'5»P~r ~K

~ ham «~m a ~"~~ ~~~ ~~~ ca= =~m=~c-' w"'" a=3~~, schscat~~, s=e'c~ = i ~~ Pr~e C~, Vew Sea&, => P'e~

a ~ Ea3ca bc~, M~~w ~ ~e=sh'p Z=P pa==='w~~s H M ~ec Pcwe Cw~~ ~-- Cwap>

~4 VZW~ C««~ ees~e4 ~«e4 i» «a ~~i~t» ke«g Qeae~»~4» wa='~,. we s =-e, ~ t~ heea c„-e~ '"p ts a ~i. '

~a ~ seve~ ~~, a-~ ezc"' eve~ ~e= c

e~«t>~ eeS toke«»«~«S0

~~ ~c c-" - y rz ~««~Q 'p s«~»~ ~ c~p «c «

c e~ ~ a ~«~ «Qca a se ~ c e

- C308—

~ ~ ~

II

a=''''es mc?6 =ass-'~'v "e"a~'v sm a

he"e='~a ~a @ca'P ac w >w =-L's ra~"~w. - ~ac

4w''saithLe e 4s''' e s ~l,a ~ess e 4 c'a ~ ''T 4>'as'==-z=~ A ~ = --c"~- c™s& e'e~ —c

4se~ anal 4 0 g~~ oesaosaw st~a'' c= '" ec"=c~ c= sc 'e c= ' r~ w'"'-cc.= he =--'"ea ~$ mwem ~me sueeo~oro~~

New ~ a t"e C&he= 3 I- ae "q su~6 ""a-%~ was w='~P~'"q = a~ M~™"e=c w ~~ a'SM~~~" ~ 3. -- ~4 asc~ ~v -+sky g'we=. T.~~ s~~C a~ ~ ~~~c ~» =PL wc~ eac t ~peMe crt.-e= c"-''~ ~es M ~c~ a se~C @cod wh'W wca'"~m he a =~ately ea < i= si"e w K2~~, a6 ""amac'P. ~ au= a~=~~ whe~ eas~~~ ~p pass'~Le,r ~cse ~~9=~» ~~~ '~ ~~ ~~~~~-~ ~~~ w~he mcka~ ~ ""a e st ~c', ~ jc'" z=d. "z 'pa

P ace

$c '~ '" ~e L~80%2 =e='~6 w>c~wr -'-'~ = F.

$ ~re~ z~c +4~ w ~ ~~se c4 le4 e ~~~4a4 ac~s a 230:a'" =-ec=c", W QCC's "=csee," >'ac= Na. 2 ae==mts= X M ~ QCC ~zs—"'-c e ~a'' a N ar a'" I—~'m-'"q t'-'-~ CUC's =~el ~ - 200 m, ac ~~~ =K w~ad, h~ ""ee~~ "~e= ~ QUC a™ a ~~~ hase' Me'- '"c

QQC ~e6 ~~'s c e= —hcveve, CUE'M" ~0~'wA ~ww ~%1 7 +4+ $~~w ~4+ +~4~ +@M $~ +4c1 A e~ e~~K ~ - e~M cR Pcs C ~cL~

Pace 8-, L~~ a~c ~aI'

~~~itch ~ ~~ly cc Sc a ' c Fc sz,~~~ v- ~ '"-. Lv~ wee hee ~4 ~~ ==asM 'K "~a=~M we~ nee~ ta se~ c—can c~-~, a=" ~ ''

c ~~~~ i~egeie=~, s~c my ~~~ c:-~ ~~M ~e~ w™aT c~ ~ ~ ~5~ccC4 My ~w~ M h~Ce= ~M ~—e~ec c c~M ~'s ~~-~m '-c'='-q 'M whc'esca ~—e~.

I

I ~ ~

C309-

g'L Il aao ~ ~ ~

~re

e aot P'oD T

~-- »-- -- .-r-, --pnp;t C

~ \ov I «via l Q «

ttt «~ ~ ~

o l '

LOCATION iu«~siL' - lO«l+~caTs .=8n @a~ 20, l976

tt ~ ~ wO 8 COPIES TO

s '5JS i'a pa 'c» c Co

Ov Q/Q e /7 «

gy s««L~»«D r~«««gC«~ go «L:-:.==''a «ovD Cc -. ancps y«T 5 reooa ~

~ ««« ~

«i tal« te« ia

a

h8 eve seve=a ' "~~ e=e s m erne "s we=8 '.c'ie', „P 3 1 eD«e««

~ Ll~'Va"W -~ L"'~ SeVe~~ ='~eS y Ken 3tCCLar~ On aor aSc~ =La ==epos'' con~c= "La ve=e v'~hw Lm a ea o" =espon-a o a»o t o «ro «, «7 > «o ir««a or) ~

o ~ ~eche= 5,le=D= ~ zen, several hou=s we=8 spe".;=.=.'-.g =O 8.. ~D'" ."=. 3i~ me ==ave=cnS O "L Ccn=-aC«roar goo««) D«D««D ««ge«oL o rL qD 8«««gaoiogo) V «ate«S «g aS

4 ~ os««, »DD o~ DP '«. '

~

a o es 'we 8»+ c s g«er «~ y 3o vaooos as"e' s ve=a'=Le= c= 'c -s 'z "58 c==any s'ace 's=~ es" > ov .=. ? G. i~~&o a"" =z cnlv -'use "ho ve=e=8 =--.8lv ~=''a= "='"4 '"."e=~'.ge con ac«s a-.." has some= s=cns="-'''=~ =o= Gem he asia u mice %8 o=e '-'".a~ =ev«

A ".e =~o ~~~~ sake~~. ~~ ~=. acv Danese.

) ~«D «D+ 4«o «~~ i«p 4«vs ge«D «eso) vp «««)8 o 4o «p l co«m

I'«'~ .'." .v S 8 «Sor ~1a L «8 82~4L: Cn

aa= =ev'ew sess'"".. he he'=. -m '". ande" a= 'sa" =-.e3'.~=W '~"'" he aSRM "- ella~ h='S "Se='OCS COn D ..Sso

v a

a o

«to» DSetrrtt

CM8 St8 t\v

c=le=e' =-.aLa=e «»s tP 3o toais

ya ~ «e««e P4 r «4 y« llr Paw a2 I o Dt «'4»l 1~ t) ~ t ~ o'a«««ooa F S C v»OnS «OM+ «t) ~ae

cs r« ~ s sgDa»D««5~ s i« «r .rrtto«r 1 «sara«r«bsr«~ v 'a, ~ v «o» «av CQ«aaa ~t Caa Re»a«'a v aa v v«8 S

«'ZS ~e O'«8 St v '«8S A Se~' ~ N» 'a 8 Kk ' ha a)e'D 8«D««» ga AS r:ae~s a «Cog o «r go a «O««Dreo grta I

a..V = «..S «ea a «Zaios '»'aS 8S«C SA ' O ' aSS 8-~ o r 5«4 ao 4 > ~ ~ o « ~ 1S-'-.re, .~»' ha «aS t -8 P=eS= en= C" PO'-8: SCOOlV, he maCe nO

> ~DS r v aps«J aat.»~ »r «D srr ra s ~ a»C oa««o» D«r wear» «i««««4 v»t «o ) v ~ «o v ~ o ~ « ~ ~ a» Cta)F yva C«

—C310—

843

BY MR. GUTTMAN:

g. No, is your statement there, as you have just read

it, and as I have read it, the company's position? Current

5

6

7

8

10

ll12

13

14

15

16

18

19

20

21

22

23

24

25

position?

The company has agreed to formulate, participate in

a study to evaluate the economics of central dispatching ifthere are any.

Q. And if a study of the economics of centralized dis-

patch shows that there will be operational economies to FloridaP

Power and Light, will Florida Power..and. Light support centraliz

economic dispatch?

L If tnere are benefits to be gained for Florida Power

and 'ight Company, I am sure'that we will consider participati n

in such structure and. organization.

g. Will you support it, if there are benefits?J

MR. HALL: I object, Your Honor. He answered the question

HR. GUTTMAN: I won't go. into this. area. at any length,

but again the company has over the last two decades been willine c l~ J'». ~(~{ b..

to consider~e~. Mt is willing to consider ~hkag wer to

Ft. Pierce or Homestead. The only question is is it going to

do so or just go on considering it. I think there is a distinc

tion between the witness saying he would consider it after a

showing of benefits, or after a showing of benefits they would

support it. That is what I would like Mr. Bivans to comment on

THE WITNESS: My answer is that we would consider it, we

- C311—

gl,4y» e.+»~YyJ

~pf

»

ski

'g4

P

»

gpss~

: -aft %p

'P

844

O

lVOCV

z,0

PQ

0U

z

oW

DOU

v

8

10

11

12

14

15

would evaluate all the ramifications of the agreement, and itdepends on the final terms and agreements in the contracts

worked out, and it is impossible for me or anyone else to sithere and say "I will blindly support an organization for which

I do not know all the terms and details of the contract".

And I am not authorized to commit the company to such a position

"BY HR '.GUTTHAN:.

Q. Who would;.be .authorized'2.

A. I presume our board of directors,.aftex'ecoming

familiar with the terms and agreements. of. all.the. contracts.

Q.... Has.the. board. of. directors. ever. been. presented a

study of the economics of centralized.dispatch?.

There has been no study to my knowledge; or a comple-

tion of a: study to my knowImRge of the economics of centralized

dispatch.

45 5~™

\

~4P.

'ri g

gQ

18

19

20

21

22

g. Has -the bcrard:of directors-ever been presented ~with

a study oS 'the economics of a formal integrated state-wide1

power pool'P

A. There has been no study completed of the economics

of a state-wide powex'ool.

g. You say no .study completed . Has,FP&L undertaken to

make a study. either of.centx'alized economic dispatch or an

integrated state-wide power poo3.2 z4

Florida Power and Light was instrumental in instigati25

a study of this nature on the sponsorship of the FCG.

— C312—WQ,~4

\

~~~4 L4:i~~~ 8/QWi ..: ...', ~~~R%i~il~~i:NP.''-:

PM P - .~adS .~W—''' '~... ' -'-.'~ ~ ~——~i ~i ~Q. K~~ .~

QRBR'7

. %l . 5 ', 58 '$ .",': ".':.S.:: ';-','$::" . 4. '::, '$-.'

~ ' ~, "~ ~ ~

~ P.' PCKCJk.. ~.. ~4 P, Sw&e@ .;„,HW,.:.,NM..;:.:~P'?f-''.'-„'~ "...;.,'.".:,'."-:

." P" 'fCR" '5 ~~5 . M4Q . 85rfi7&..', ~SCL . SW

iP .„. SP ~W,::.-, Z'::, 5T "S:,...48~ . SKAX',:7= 4.;.:,6Ãkkb".'- ..-'.',-"."

R.: ~%; . Q$~R . ', CK 'Z~: . -:CKTAf',;22XW ."~~':::-'4BSJF=''.-:;.'.:.: .. '.,',i.':-."';;: ',

'a.:..-'~, "~~'LH-.': X%....'CVW '-'.. SQfW'2i%95 %~''885i4$ ""'

~ .'P. ~:LM -'~.W5 . ZS:... %PM,.. UCLR.; ~'%W:.','.ZMAQg-..; '~ ~" Q~~+@ .- ~~,. ging~ " "~~@; ~~. ~g: ~;;~~ ".. „;c.'.

5PW- .':..5%5 ~~~..;4 8:~, SW...; SM',-. 25~~)

~ ~~, . y~~t ~.C/4$ , '' yO', ~ ~u@aX ~ W~44T0 tl m%e 'Agyelh<'''~ply@'.

iR. ~ XI'' .. -'..~.:: fQf4cf -.-." ~4M .. WM .'. ~k..:,.8MM:-:,'. - .'„

'BZQW ..Whi5M ~ ~ Ã1~:5$Q 0 -.::, %. N. CPi& K4'5»,„'' 2$Qf',<::;

K. ~KM i,RCLP7... ~~" (PRIES~; P4C' ~~LAX 1Sf4N;„.. ~jR~~:f

~ f:.:

'/

1 t

g,'

t 1 '

P

,I

RE5EARC)i AND DEVELOPMENT ACBV)1)ES

I ~ I>«><i ~Ia ««I 'sli<liv I»'hi<a'us>s ws<'siss<'<I <<><I 1<<' 'i>I<siss <I>nag«' <I<<ra<is >Isa'<'elc lac< w'Is'cclicgi<;alsa s«aia li ii«i( alrvc l<i(su>«wl )u«ji' '>4 i»i>ii>«c). ru»>i«i» a) <ir ~ ca«rlwils»I <4»i«g

>hc'c»c.

Ilc I»»> 'ilia< sac)>pc>cs ><a sl>ll<'ss <I<<«i>sg >I><'<'ilr fc»'««sill"spi»sic<<'a'cl )i<alji'<'1~ . I)t< ~

ai)»i «> iiw>w li« iilc w>ilir<)ifullilinw<l) Pcir n«y ra>«nra li .iuil ih'v«I»I<<ii«»c asa»I. a;i<ai<c)<ili Icy >II<'c'>I»us<la's>l >ss vs)Is< Is >II<'rl's ~ s)s,<<siss <lf < «4>'s 'iv<>ls <Ilh<'ss, 'st>ail« ss'Il,<soil'Iy14«rrs)»i>i<4'<ll 5 s Ii's> (air II><1 yss<r csssil ~ cls> rlsuig«ulilr ws u<4«ss. I.'4'c il«li><i>iu« ii)'ca ~

w.isa'li un<i <4'a'a l<q»w< wi in Ilwifi>i»iSf>ca csc <cf ha'a'«»n>s.)

lc>cl>a'»sa'<s «'<hiss>as Iu) <I>II)s<'i<lib' )Ass>Is< u>«la>, ns sha ~ li'sl I»'halva l>sl sss s«)is<isis (li)Iuaij«a >s ~ ais>iwg )!>,INN) <ir «w>sa, bsirl)y <I«s<'silung sh«. SI» a'i(ia< nrc» ii( c'rs< usa'Ii ~ ir <41 ~

I~ I ass 'sss I <'I u's f s'l '>y >< >I <ilu>>c s I)'I ' u) pli' r, I II wi ». r inc»4 s. ii u 4.>i«», a'>r.). I<rwss w»clrr )5,(NNI ais.'<y I»1 grc.«i» <I by cL><silica>ic»s.

h. I'.I«r>sia Ihi)isy It gc I) I'ccliirwirc) )Vi>his> (5»»punys

(I) I'iisvrr I'I»<s>s a-n. I)y<haiIs. I'iissi) I'au I S>ma>ic. Ins«r«nl (lwwhus>iun<I. h«iwii»a.. Ilia«< i (5>«vrrsuus

I") S)s>a'sis I la<>is><sg I sly><sir<><sg «Is><I ()I».riuiun

I'.I) 'I'i»«s»>is<i<i» (i<>alia'»w <Iva'ilia'»ai u<»I «<isla'rg< ~ <ill<<I I>>Illa <'ss 'sl'lan<caw'I) )( I) fsis>riha>aiucs

(5) (44«r (iw< tiuling i>«»ss in a >ca'ass <if )5,lggl),Ilc) I'«s»i (hie I w< wrr< i)

II. ('I«i'>sia' Siti>y It gc I) I'< sliu«i«a) I)u>siilc'tw'5»»pass) .

(I) It< sc;ice 4 Scat>l»>cl sis >lir I 4<'>ri<'ta s«arrl> (4>wnc'i)

) Itcs«naa 4 Slit>IN>rl >» I':cliu»> I'.I«'Srii'ns>i>wi«(l) It«arnis'4 .'hip)»»s ua Nuc lrnr I'»svc:r (Ic«<>ps

(I) It< sanra'4 Siip)»cr» u ()>I» ss

(5) ()<Iw.r (i«a.)»cli»g i>«a»s in car< ss a>f $ 5.IN)0)Ili) 'I'as>ot I»>s> I««aur<.c)

l. Shc>sv iu ~ ulci»w> (c') nti r<n>s i»caur«il ~ Iwci»g shc ca<scca>> year. Sl»>av i» r<ih»ilia (<I) >hcus»aiww>s n«uolly a»pi>otic«al uwc) ah»rgcc) >u pl»ass uccuu«is clwring >4«rsissrni ycnr anilin au)»«wi (a.) ihc ursa<a) n«w>ai»c ~ a burgci) ~ Iuri»g Shc cairrc«> ycur Sn shr a's)»'ass<'c ~

ca<wc>is litic ac<as «f Ils«I<'s>s «)colic<I u<s 7> cali>i(i)clc<l )>osis \vi)I lu sbcisvw in c«twi»»s (c))ossa) (c) vchcss sh«pr«ja.a'>s nr«a'4»sac)»nc) i«is ivhcn slic ru>ss ucc i»a airs<»ll.

(. Ifa.cis>s hnva. au» I»'c» srgsrgn>rcl fiir rcs«orris un<I <Icvclup«>ms nrsivi>irs ur pc«jas'ss,asii»isucs iwny b«sash<»i>&ca) fiiraic)w»isis (r), (<I) u«a) (r), viih swr)a N»i<wiwis iila wiili«a)

Iiy "I si.".5. It<'pc>rc 's< I»<isa>a'Iy sa'sc»ca)s 1<<i<I Scl <w'<I >cs>i«g Iarili>ics <>per»>ca) Iiy >lie. <ca)co<sita'<c> ~

o

Q

IAHAO

os

Closaificoiion

(o)

R & D Per fo naad outs idethe Col» an

Edison Electrical Insti-tutew ls I>

l(asearch Support toOtherss> s> 1< ll

00>rcip>ioa

Ih)

Research SubscriptionPlutonium )tescarch

Pouer System InstituteOverhead Distribution Besearclt

Total

Cos> ~ Incw<oal

Co<con> You<(c)

30>000100000

14,7001& 40571 105

Plans(g)

fapens ~

(cl

30,00010,000

14,70016 40571 105

Ayaowcls aho>57<<) sa

swccnl yauc >o

C

c(

os

O

RHEARC)l AND DEVELOPMENT ACT)V)TIES

I. Ilrsrailu .w»l al»ov brl»w a usia inc >i<rr>l uiul ura'<wu><s < I».rga'cl ~ I»ring liar I' .a< li>r Icvh.w«h>gii Nl ~ as«air)> u»il alcvrl»lwa>ra>< Iir»jrc'Ia i»i<in<<<i, r<w><in»«<I <>r a»or)»<le<I ~ I»sing Ilw>

yIN> I<i'p»>I >>la» 'swl>law< Ili iwh<'55 ill>r>»g Ilia'cilr fl>r j»>»<ly'SINN>si><l'll I>cl>jl1'Is (Rca'i)Neo< aiwasc IN'>lrn<ilirclil ollilia<r>l.) Vor «wy rrsrxrrh xwil <Irvrh>pwaro< av»>la rar<ircl>NI liy <Ii> sa sp»wih.n< in avliic.h <hr<r is u slmrwig uf rus<a wi<li c><l>rrs slw»v si'pari><i'lyIli>'c's)N>l>ih'>I< 5 ri>'ll fc>r Ihc yaw f uwll ii>sl I huigcilbll'i> iwl>I'I's (S>1'. >I>'l>»ii>cwi ~ 0 rc. ~

~ > In ~ h xw>l llc'vl'li>p»ic'»I I>s I i»if>>rw> Sysic'>1> i>I h«L»ww<s.)

~. Iw>lic'>><a in 1 >ilii>ww (u) «ppli«'. I>I« rlnssilic'u<bw>, ns Slwaavu Iic loiv', lis< iw I'»b>ww> (0)pr»lac <5 a.iisiiwg )5,000 <ir uwwc, biiclly ilrseribiug <hc 5)N a ifir;irco i>frrsi.ira'la >ir ilr;I' I»pwirw< (u>c li iis f»r 1'>fi'Iy, uw<»win<i>»i. <y)N' J'>i>pb.iwrc', I>ollw<iiiii~ i»>ra>bu>. ioii>b>~

<i»w, a:ia.l. Ici >ws uiwlrr $ 5.(g)0 a>any br, g«iwpu cl liy a.Lcssi(iex<hins,

h. I'.Irc <sar l<iiliiyII Ik II I'crloowail 'bi<bin (N»wpxoy:

(I) I'l>'iv>'I''lan<s--u. Ilyclri~b. Vi>5'ill Vwl'I Sicoli>I'.. I»I«I »xI ( Nwwlw>acbw>

~ I. h<»wiicr. I <i<ra< CN»>vrrai»w

Sys<rsw I In»wing Es>gina'r<<og u>icl ()pcfo<ilw>

(0) 'I'r.iwwwiasi»n lw>alien<a uvr>l>c n>l noel w»ila rgr»wncl p<iijm'ls si'para<a.ll')

(() lliuriliu<ion(5) (Iilirr(iwc liiili»g iirwis iw rxa'rss nf $ 5,000)(Ii) 'I'c>ixl (un< lwc ura«al

II. Ftc'a<>ic'l<ili<y II g> (I I'cafe>rw>ail ()w<sicli. Ihr Gwwl>xoyl(I) )i< 5>arab Sl>pp»f< w ~ Ihc I )ca<i<« Re>ex<ah fhiu>w'il

( ) IIL>L>rl'h >l>p)N>c'I <u Lcllscw> bi«La>sa:l»5wlw<i'g)

l(rwNrc h!iulqu>« <u Na>rlcxr I'»>vcr (>rc>wps

(I) llascuirh S»Igni>I wi ()<hers(5) ()ihrr (iwrl»ili»g iia nis iii rxrrss uf )5,(H<0)(li) 'I'cw;>I f»u li>c'wrrc:il

Sh»\v Iw Li>li>lwii(<') wll <nus inrwirrcl ah>ri»g ihr, Lucien< ycxr. Sluna'u ~ iiluiwn (cl) <hc

>ww»aw><s»l'Ii> >II)'slp><xi>ca'>I u>iil el«a<ac'>I u> plow< ia«L'cww><s during <lic cur<co< year anal

Iw L»how<> (c) <hl'LI»ol uwl»ww<'I charge'cl cll><log'Ihc curse»< yc»r Iu Ihc cxl>ensexr'»uwis

)<Iii: r»a<»f lwa>jer<s clear«<i uw a auiwplc<ccl linais will hr sls»ivn i<i culuinns (>I)

su»i (c) when Ilw pai>jra.<s «ra: c I«urr4) uiwl a»i< avhcn <bc ci>a<s acc inc:urrc<I).(. II ~.a»<s huv«>w>I IN cu Segrcgx<rcl fur rcaeurc.h noel clcvrlupo>cw< oe<ivi<irs or prujc«a,

css>o>i><cs >l>xy hc'1>how<ical f»r cl>I>wows (L)~ (II) >coil (c), ~vail> swrh i<<wc>uo<s <clew<>I>rcl

by -)is<.".5. R«IN><I sl'pufusrly Sr>cosa Ii aiwl rrlxiccl I«5<i»g fncili<ies »peru<ed by Ihc resin»>clew<.

l>neNo.

C I0 a ~ Ifico< Io a

lol

R (t D Performed outsidethe Ca>5 an

Edison Electrical Insti-tute

Research Support toOthersIS W w II

De>c>lp<ioa

lhl

Research Subscription

)souer System InstituteOverhead Distribution Research

Total

Coals lnru>ce JCo<>en< Yen>

(c)

60 0000

14,7002 500

77 200

Plo>I<

(Jlfepens ~

( ~ I

60,000

14,7002 500

77 200

Amoun<a cbo><<e J an

Su<<en< geol lo

RESEARCII AND DEVEtOPMENJ ACTIVITIES

I. IIC>crihc huil shuw hch>w co>i ~ incurrcil aiwl accounts charac>I durh><t ihc year fur sccli-s>i>li>glcal rcicaicli al>il ilcvcl»lx'>scil< IKQJccss <n«<a<cd> cl>i><in>scil <>I ciinclllllcililliiisig<I>c

year. Itrp»s< hlw> suplxin to o<licrs duriwg <hc year f>K jointly.spun>lcd pr»jcc<s. (Itc-cipicnt uwwi lic idcnii<icd if«llilih<cil.) for auy rcscarch iwwl ilcvclupiwcnt wui'k car<icilun liy <lic resp»nilcnt in whicli <licrc is a sharing Qf costs williu<licrs, <liow scphrh<cly<hc rcslxwwlrn<'s cos< f»r <hc year anil coal chargcablc tu others. (Scc IIcf>nition Qf rc-scarih aiwl >lcvcl»p>new< in Unifors» Sys<cwi Qf hccouw<s.)

2. Indica<c in r»liin>n (a) applicablc cia>silica<ion, as sliuwn hclu>v> lii< in culunwi (li)pr»jn:<6 c>w<swg g5,000 ur Inorc, bric<)y dcscrihlng <hc spccilic area of re<catch ur ilc.vcloplllcll< (i>ii:h as f>ir safety, a>i<i>i>>a<i>>ii, <yl>c of xi>pl>a>>i'c, Ix>Ill><>i>ll,corro>io», s>1>lilh-siun, c<r.). I<cw>s >wider 55.000 w>ay bc gruupcil by cia>silica<ion<.

h. Elcuric Iniliiy II 8> II I'crfiwswcil Within Cow>pany:

(I) I'uwcr I'lan<s-u. Ilyilw>b. VuiiilVi>cl S<cawic. Internal C~wbus<iun~I. h<QU>icc. Ilircc< Chw>vcr>ion

(2) Sysicui I'lhnning, Enginccring a>wl Operation

(2) Trawwnisib>n (iwilich<c uvcshcad aud unilcrgruunil pruj cr< ~ scphra<ciy)(() Oi><ribw<iuw(5) O<hrr (iwi:luiliwgi<c>ns in cxccss uf $ 5.000)(6) 'I'ushl C»st I»i.'usted

Il. El c<ri'J<ili<y II 6< fI I'cif»s wc I Outsi Ic <I c Cuw I. ny:

(I) IIC>catch Swpliur«n <hc Electric IIC<carcb Council(2) ltc>catch hl>pi>>K«Q Elis>uii Elec<Ac Iils<i<U<c

. (5) IIC<carch Swpixws <u Nwclcar I'ower Cruups(J) kcicarch Swplx>r«u Others(5) O<I>cr (inc!wiling iicwi~ iw cxccss of i5,000)(6) Total Cx>ss Incurred

3. Show in c»lunwi (c) all ciists iucwrrcil during <hc currcns year. Slww i» colunin (d) <hcawiuuwts actually capi<aliscd and cliargcil <u plau< accuun<s duriiig ihc currcn< year aiwllu culwwin (c) Ihc actual hwiouu<s charge>I >lwriwg shc currcut year <Q <lic cxpcnsc ac-counts (<hc cuu uf prujcc<s clcarcd on h cow>plc<cil basis will bc shuwn in coluinns (d)and (c) when <hc pr»j cess arc I'.Ichrcd an>I no< when thc costs arc i>>cur<cd).

d. Ifcosts I>ave Iiut bccn scgrcgaicd fur rcscarcli aud ilcvclopiwcnt activities or projects,cis<illa<cs ill>>y Iic <lib>>I«<cil lof colww>ws (c) ~ (>I) al>ll (c) ~ will> such ainuun< ~ idcn<ificdhy "Es<.".

5. Rcpoi< scphrx<cly rcicaich a>i>I rclaicd testing fhcilitics opcraic>I by <hc resin>ndcw<.

o

I laoNo.

Clos ~ i f>cation

IQI

2h - Hone

Doscsl p<loa

lbl

Co><i <»conedCusroa< Yoos

lclploa<Idl

txpsnso(sl

Aaao»h> ~ choir<ed laCviisht yoos to

28 - R & 0 Performedoutside the Corn an

(2 Edison ElectricItlstitute

(4) University ofFlorida

(4) Ceneral Electric Co

Various Pro)acts

Pouer Systeat Institute - Support to ProgramLightning Research

Total

$ 54,936

24,5005 200

<04 636

$ 54,936

24,5005 200

<~04 636

ss

RESEARCII AND D'EVELOPMENT ACTIVITIES

I. II«<iril>e and slxiw lx low rusts i«iurrrilauil are«un<a rharltrd du<in<< Ihe year fur Iixh-uohigii'Al irsrairli anil Ilcvch>pi«ru< priijea<s lni<ia<rd, run<inueil or cuiul«iles ~ luring Iheyear llrlx«IAlni triplo>it Iu u<hrrs il«ring Ihc year liirjointly spun>i>icd ixiijrc<s. (Ilc-rilxr>II««i>< lx idrn<ilird ifallilia<r<I.) For iuiy research and dev«lopment wu<L rar<irdixi liy Ihr srsfx«>>le>i< iii whicli <lierc is a sharing nl'cu>I ~ with othe<a ~ <liow separatelyIhi'«ax««lrn<'a ross for Ihc year aml co>< cliargcahlc Io «<hers. (Sre dcf>«i<ion of te.-tra« li anal ilrvrhipmr«l in Llnifi>ru>Sys<cn> uf Accounts.)

2. I<«lira<« in cull>l«l> (a) applicable classification, as shown below; lis< in cidumn (h)pi«jr«<a r«I<i«g $ 5,000 or <nore, bricny ilcscriliing Ihc specific area nl're<carel> or ile-villlplllc«II>«I h As for s»frly, aiitiuua<ion, lyl>e of applianrc, l>ullu<iun, corri«ion, in<i>la.lian, c<r.). I<rma «micr $ 5,000 inay be gr««lxd by classilica<ions.

A. I'.Irr<<ir Il<ili<y Il t<r II I'crfiir«>ed Within Cuu>pany:

(I) I'1>wcr I'IA«1$--a. I lylliub. Fussil I'url S<ca«>C. In<Ca>>al CA>ll>hi>i<>on<I. A<«i«icc. Ilirrc< Cxinvcrah>n

(2) Sys<cn> I'lanning, Enginccring anil Ol>eraiion

()) 'I'ransn>i<sion (in<lira<e uvcihra<l anil uuilcrgruund projects scpara<cly)(() Distr>l>«<u>n(5) 0<her (incluiliug i<co>s ir> excess of l5,000)(f>) 'I'>Ital CA><I Incurred

Q. Flei'I~ ic Il<ili<y ll gi Il Pesfi>rmrd Out<i>le Ihc Company:(I) lie<car>h Suplx>r< 0> Ihc El':Itic IIC<rarcb Council(2) llcscarcli Suplx>r< Iu FAliion Electric Institute

~ (3) Itrscarcb Supiior< Iu Nuclear Puwcr Oro«ps(I) llcscarcl> Supp«i< Io Others(5) Other (i«rlmling i<en>s in cxccas of $ 5,000)(0) 1'otal CA><I Incurrcil

3. Show in colon«i (c) all cows incurrcil during ihc cur«co< year. Show io colun>n (d) Ihcan>«un<a aci«ally capi<aliard and charged Io plall< i>ceo>>nls during Ihc c«<rent year andin culumn (c) Ihc actual an>nun<a charged during Ihc current year Io Ihc cxpcnsc ac.counts (<he cost of projects clcarcd on a co<«pl«<cd basis w'ill bc shnwi> in col«inn< (d)anal (c) when ihr. projects are clcarcd aiul not when thc costs arc Incurredj.

(. If««s<a have nu< bccn scgrcga<cd fur research and dcvelopmcnl activities or projects,ca<ima<cs n>ay br s«l««i<teil fur columns (c), (II) and (c), with such ainu««I ~ iilcn<ilicdby "Es<.".

5. IL«put< scpara<cly research and «cia<cd <«sting faciliiics opcratcd by shc re<pondcn<.

Ill>~

Ho.Cloi<ifiro<ion

(4)

04 I«IIptloll

Ihl

Co>< ~ IncurredCU<ronI yooi

(i)pioIIldl

Kxpoos ~

( ~ )

Amoim<> short<ad hi«>«rant year lo

2A - i(one

28 - R 8< D PerformedOutside the C

2 Edison ElectricInstitute

()I) University ofFlorida

()I) Id.ghtning (t

Transient ResearcInstitute

Various Pro)sets

Pfnfer,System Institute — Support to ProgramReseal'ch to improYe operation

of Distribution lines andassociated equipment

Tota1

$6o,ooo

2l),500

$ 6o,ooo

2)I,5oo

kE$CARCH AND DQ%lOPMENT ACllVITIES

I. Describ and show below coals InchlccchI and aununls c)largcd during Ihe year for Icch-

~ nological ccaeacch and aicvcJopnhcnJ proJecls inlliaicd, continued or concluded during lhcyear. Rclhocl also suihpon lo oh)hers 4htring thc year for Jointly-sthonsoced projects. (Rc;~ cipicnl must bc idcnlifhad ifaffhlistrd.) For any rcsehaccII and dcvclopmcnt wocih carriedon by lhr ccspondcnl in which lhcfc Js a shacing of cons with others, shaw scltaratclyIhe ccspondcnl's coal for Ihc year anal cost chafgcabJo Io olhcra, (Scc slcfhnilion of re-~

~ ~

~

~

~

~

aeacch anhl dcvclulhment in Uniform Syslcnh of Account ~.). Indicale in column (a) applicablc clssai6cation, as shown Ilclolv; cist in column (b)

proj ul~ cualing $ 5,000 or morc, bristly describing Ihc sihecifhc arcs of research or de-vclopmrnl (huclh as for safrly, automation, lypc of appliance, pollution, corrosion, insula-lion, clc.). Ilcma under $ 5,000 may bc grouped by claasifhcalions.

h. Electric Utility R gh D Pccfhtrmcd 'within Company:

(I) Power Plsnls-a. Ilydcob. Fossil Fuel Stcamc. Inlccnal Combustiond. hlomicc. Direct Conversion

(2) System Planning, Engineering and Operation

(3) Transmissmn (indicate ovcrhcad and underground projects scpacatcly)(4) Distribution(5) Olhcr (including items in cxccss of $ 5,000)(6) Total Coal Incurred

II. Elcclcic UlilityR ga D Pccformcd Outside Ihc Company:(I) Research Support to lhc Fjcclcic Research Council(2) Rcacacch Support lo Edison Electric lnslilulc(3) Research Supporl lo Nuclear Power Groups(4) Research Suppocl lo Ollhcrs(5) Olhcr (including items in cxccs ~ of $ 5,000)I6) Total Coal incurred

3. Sthow in column (c) sll costs lncuned dudng Ihe current year. Sthow ln column (d) tihe

~ccount nhxhhber charged with expenses dLhdng tho year or Iho account lo stddhamounts were chhpltatlxed dhcbhg tho year listing amounts In sccouhht IN, Constnhclion Work ln Progress, Grat. Show ln co umn (e) the amounts related lo tho accountcharged ln cothxnn (d). Slvhw ln cothxhhn (f) Ihe lotal hxhacnonlzed accaxhhutatlon ofcoals of phoJects. '1bo lotal of Cothxhhn (fh wilt sepal Iho betsahce ln account 18tt,RcscarCh snd Devdopmsaht Expenditures, outstanding at tho cnd of tho year.

4. If costs have not been segceghhted for rosesrch and development sctlvltics or criers,estimates may be subnlltcd for colhxhsh (c) ond (o) wlgh such amounts IdcntaSed byuRabhh

5. Rcport separately research and ccloted testing fsdtt ties operated by Iho ccspondenb

LineIto.

Ctasatscstton

23 - R 8I D PerformedOutside the Co

Dcscrlptlon

(b)

Coals bhcucced

Cucrcaht Yoar(c)

bc count(d)

hmount(e)

hmounts CkacgCurrent Year lo Unamortized

hcaaxhhul ation

(I)

5 SouthernNuclearEngineering

lfeterological Consultation anl theAntis of Meteorological Data atTurkey Point anl Hutchinson Island. 107 77,3oG

11

12

13

14

IS

16

17

IS

19

20

(5) Florida Engin-eering andIndustrialBcperitgentStation (University ofFlorida

(5) BechtelCorPoration

TJJermal Effects Studies in LotrerBiscayne Bay and Carl Sound, anl1tydrograyhic Studies at HutchinsonIsland.

Circulation Water Temperature Studyat Turkey Point.

(Continued)

54,o45

193s934

107

107

54,045

193s934

~ ~ ~ ~ ~ ~ ~ ~'

~

~~

~ I

~ ~ ~ ~ ~ ~ ~ ~

~ I~

~

~ ~ P I ~ ~ ~

I ~ ~ II ~

~ ~ ~ ~

~ ~ ~ ~

~ ~

o ~ I

~ '

~ ~ ~ ~ e i'l ~ ~ ~

~ ~

Ol ~ II ~ 0 ~ I

~ ~

~ ~ ~ ~ ~ I

~ ~ ~ ~ Ot

~ ~ ~

~ ~ ~ I ~ ~

~ ~ ~; ~ ~ ~ II ~ 'I~ J I h ~

I II ~ ~~ ~

~ ~

~ ' ~ i I 0 ~

~ I

~ ~

II~

~ l ~

el I-aII ~

~ ~ I

~ ~ I l II

~~

4 II ~

~ I ~

I ~ ~ ~ I ~ ~ ~

~' I ~ ~ ~ ~ ~ '

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

~ I

~ ' W I

~ ~ 'l ~ ~ ~

I ~ I I ~ I

~ $ l ~ 'C ~ I ~ ~ I ~ l ~ ~

~ 'l ~ ~ ~ I 'l ~ ~ I ~ ~ ~

NESEARCll INO OKVELOPMFNT ACTlVlllES

l. Dcarritm and show below coats inotricg snd accounts charged during tho year for tcch-nolosical research and clcvcjopmenl prat)octa initialed, contjnucd or concluded during tlacyear. Rciaort also support to cuj>ers during thc year for Jointly-siaonaorcd projects. (Rc-cipicrit must bc identified ifsffalistcd.) Fof any rcaeprcia 4nd development work carriedon b~ respondent in which thcfc j~ a sharing of coats with others, show scitaratelyahe radii'pndcna' coat for thc year and cost chatgcattjo to others, (Sce dclinition of ce-acarcl~mwl development in VnifoimSystem of Account ~ .)

2. Indic If(in column (a) applicablc clasalfacallon, as showct ltclotv; jlat Irl column (h)projc (i cussing $ 5,000 or morc, bristly describing thc spccisc arcs of rcscarch or do-vclop fcht (such aa for ssfrty, automation, type of appliance, poilution, corrosion, insula-tion, ). Items under $ 5,000 may bc grouped by classifications.A. Electric Utility'R gc D Perfqrmcd Wjthin Company:

(I) Power Plants-'. liydrob. Fossil Fuel Stcamc. internal Combustiond. Atomic'.

Direct Conversion

(2) System Planning, Enginccring and Operation

(3) Transmissum (indicate overhead and underground prctjccts separately)(() Distribution(5) Other (including items in cxccss of $ 5,000)(6) Total Coat incurred

B. Electric VtilityR gc D Pcrformcd Outside thc Company:(1) Research Support to thc Electric Rcscarch Council(2) Rcacsrch Support to Edison Electric lnstitutc(3) Research Support to Nuclear Power Croups(4) Research Support to Others

~ (5) Other (including items in cxccas of $ 5,000)l6) Total Coat Incurred

3. Qaow ln cotaxnn (c) all costs incurrod haring the cuacnt yosr. Show ln column (d) tho«ccount rsanber charged with expenses during tho yosr or tho account to wldcbamount ~ were capitalized haring the year Ilsllng amounts ln account 107, Conabuc-llon Work ln Progress, Grab Stmw in co umn (e) tho axnoamts related to tho accountcharged in cotaxnn (d). Show ln cohxnn (1) tho tobd unsnmrttzed accumulation ofcosts of projects. Tho total of Cotaxnn (A witt equal tho balance ln account 188,Research and Development Expenditures, outstanding st the ond of tho year.

4. if costs havo not been segceguted for research and development activities or nmtert,estimates may be aubnltted for coiaxrsa (c) ond (o) saith such scnounta tdentaacd byuEst."

5 Rcport separately research and rclatcd testing facittttea operated by tho respondent.

UnoHo.

1

2

3

Q4

~ tu6

I

8

9

10

11

12

13

l415

16

17

18

19

20

CtaastGcstton

2B - R (): D PerformedOutside the Com

2 Edison ElectricInstitute

(5) Florida Engin-eering andIndustrialExperimentStation (Uni-versity ofFlorida)

(5) Bmw and Root,Inc ~

Dcscdption

(b)

Support to Various Prospects

Thermal Effects Studies in LowerBiscsyne Bay and Card Sound, and1~rographic Effects at HutchinsonIsland

(1) Cooling Water Study and Pilot Res-ervoir Study at Turkey Point, (2)Research in connection with the expan-sion of the Sanford Plant Reservoirs(3) Research to determine the value ofland for the Sanford Lake, (4) Resenrc

(Continued on Page 448-A)

Costs incurred

Oarrcnt Year(c)

90,000

9$ 201

104,428

Amounts charge lnCurrent Year to

Amount(c)

Account(d)

107 9,201

107 104,428

930 $ 90,000

Unumo cat xed

AccLsnut ation

(n

(5) Ebasco Services,Xnc ~

(5) Southern NuclearEngineering

(5) BechtelCorporation

(5) Aqua Tech, Inc.

(5) University ofMismi

(5) Conserv tion.Consultant s ~

Illc~

(5) Dr. Donald D.Dunlop

(5) Environmenta1Engineering,Inc ~

in connection with a site selectionstudy for a fossil fueled powerstation.

(1) Buoyant get discharge study, (2)Ocean Circu1ating Mater Intake SystemStudy, (3) Dye Release Studies at1lutchinson Island

Catalytic 1fyhrogen Hecombiner ProgramStudy, Meterological Consu1tation,An~sis of Meterlogical Data, Eva1-uation of Gs1t Water Cooling Towers,Fish Entrapment Study and HAD WasteStudies at Turkey Point and HutchinsonIsland

Circulation Mater Tiemperature Study atTurkey Point

Design and construction of a uniquepiece of cable installation equipment

Study of Cooling Mater and ThermalEffects in Card Sound

Biological and Ecological Studies ofFuture Plant Site at Port Manatee

Research and, Consultation on EnergyPolicies

11utchinson Island Marine Survey

(Continued on Page 448-B)

$ 124,736

148,530

247,302

50,418

300,696

69,450

12,447

28,026

107923

107930

584

107

107

107923

107

95,46629,270

143,5305,000

247,302

50,418

300,696

69,450

97011,477

28,026

0(5) Gee and Jensen

Consulting Eng.,Inc.

(b) (c)Study Report of South Dade Power Plant $ ll,803Site, Central Florida Study Reportand Turkey Point Cooling Canal System

(d) (e)923 $ ll,803

(5) WestinghouseElectricCorporation

(5) Bio»OceanicResearch

Environmental Survey at Turkey Point

Permanent instrument station main-tenance at the Hutchinson Island Plant

17,000

5,000

923

107

17,000

(5) Agustin A. Recio Study of Cantilever Forces on horizontalpost insulators due to short circuitcurrents

5,000 923 5,000

(5) Bernard E.Jhward

(5) Ray L. Lylerly

Study of Cantilever Forces on horizontalpost insulators due to short circuitcurrents

Cooling Water Study Consultation, RAD

Waste Systems, Breeder Reactors,Marine Biology and Air PollutionControl at Turkey Point

5,000

13~979

923

923107

5,000

6, 2197,760

(5) Reynolds, Smith, Environmental Impact Study, Propertyand Hills Survey and. Thermal Report at Turkey

Point

(5) Nat Harrison Research and. testing of pipe type cableAssociates, Inc. and the Hialeah Substation in

connection arith heat reduction

13>273

9,460

923107

564

9,3423>931

9,460

Continued on Page 448-C)

(5) Other ItemsUnder $5,000

Various Prospects 192375

$~~12 $ 12

107923921571583930

9,4029,070

4004213

360

$~1~25 ~12

'annual reoort of ~ .~~. ~ ~~~ + ~~

e ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ .Year ended Oecember 31, 19.7R

RESEARCH AND DEVELOPMENT ACTIVITIESescribe and show below costs incurred and ac-

co8f charged curing the year for technological re-sear ch and development projects initiatede continuedor concluoed during the year. Report also support toothers during the year for jointly-sponsored projects.(Recipient musi be identified regardless of affilia-tion. ) For any research and development work carriedon by the respondent in »hich there is a sharing ofcosts «ith others| show separately the respondent'scost for the year and cost chargeable to others, (Seedefinition of research and development in UniformSystem of Accounts')

2. Indi cat e in column (a) the appli cable class i fi-cation, as sho~n belowI list" in column (b) all R 8 0items performed internally and those items performedoutsid'e the company costing 35i000 or sore> brieflydescribing the specific area of research or develop-ment (such as safety, corrosion control, pollution,

Class i f i cat ion

automation. measurement. insulation> tvoe of aooli-ance> etc.).

Itasca

under )5i000 may be grouped by classifications provided that the number of items so grouped is indicated. Under Other> A (6) and 8. (4) itemsshould be classified by type of research oi developmentact)VS ty ~

Classifications-A. Electric Utility R 8 0 Performed Internally

(1) Generationa. Hydroelectrici

i. Recreation, f I ah and ui ldlife

ii. Other hydroelectricb. Fossil fuel steamc. Internal combustion or gas tunbined. IIucleare. Unconventional generationf. Siting and heat rejection

(2) System Planninge Engineering and Operation.

Oescription

2

3

5

6

7

8

9

10.

1112

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

3132

33

34

3

3637

8

2A - RS Performed.Within the C

23 " RK ~armed.

2 Z on ZmicbricZnstitube

(g) S gael C~-poratian

(5) Brawn a Zoab,ZZhC o

II |-. i3'~

A program inaugurated at the TurkeyPoinb Hazrb far the use of a fueladditive in connecbion with thePoll12bion A'bateneub Program

Hesesrch Subsumption, Heparb on ESTash Force

Y~ication to Turkey Potub 5 sPecialassignmenbs in suhebations 5 trans-mission (l) Geo~logical a~isaf ~osed cooling canals at TurhapPoinb (2) Circulation water temperaturestudy (3) S~ of liquid 8 gaseouswastadisPosal system far Tur}sayPoinb units 3 0 4

448 - Q325—Rev 5 73

l Cooling Water S udge at Turfman Po~2 Site Selection StIILies

(3 Research 5 design of cooling water reservoirat Tur~ Poinb

(4) Services M connecbion with the follairing:Design of cooling reservoir af NmateePlanb; temperature evaPoration and.salinity computational ana~es for Turns@Poinb cooling reservoir; Study far PeaceRiver watershed and. Water Supp~ S~

~ , ~ ~ .. ~ ~ ~ . ~ ~ ~ Year ended Oeccaber 31i 19'jg.

RESEARCH AND DEVELOPMENT ACTIVITIES (CDTltinued)

(3) Transsissiona, Overheadb. Undergraund

4 Olstributian5 Environsent (other than equipsent)6 Other (Classify and include iteas in excess

of $5i000i)(7) Total Cast Incurred

8. Electric Utility R 4 0 Perforsed Externallv(1) Research Support to the Electric Research Coun

cil or the Electric Power Research InstituteResearch Support to Edison Electric Insti tuteResearch 5 ppart to Nuclear Paver Groups,Research Support to Others (Classify)Total Cost Incurred

Shaw in colusn (c) all casts incurred for R 8 0

perforsed internally and colusn (d) all coats incurred

for R 40 perfarsed externally during the current year.Show in colusn ( ~ ) the account nusber charged vith ex

pensee during the year or the account to which asauntswel ~ capitalized during the year> listing aoounts inaccount 107, Construction Mark in Progress'irstiShov in calusn (f) the asounts related ta the accountcharged ln colusn ( ~ ). Show in colusn (g) the totalunasartized accusulatian of casts of projectsi The"

total of colusn (g) vill equal the balance in account188, Research and Oevelopsent Expenditures,. autstanding at. the end of the year.

4i If costs have not been segregated for, researchand developsent activities ar pro jecti estioatee oay,be

'ubsitted for colusns (c)i-(d) and(f) vith suchaaountsidentified by "Est."

5. Report separately research and related testingfacilities operated by the respondent1

l.inNao

1

2

3

5

6

7

8

9

10

1112

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

Costs Incurred InternallCurrent Year

c

95,8A

Costs Incurred ExternallyCurrent Year

d

m),366

225,0&'ccount

e

Asountf

95,6th

IX',000366

aa5,ox6

6%,ma3 >0595s096

AMOUNTS CHARGEO IN CURRENT YEAR TO UnasortizedAccusulat i on

29

30

3132

'3

34

35

36

3738

448A - C326—Rev 5 73

Kgb POWER 8a L):~ CCHPgPf ~ year ended Oecesber 31i 19. ~ ~ ~72

RESEARCH AiiD DEVELOPMENT ACTIVITIESscribe and show belo~ costs incurred and ac-

counts" charged during the year for technological research and developsent projects initiated, continuedor conc)uded during the year. Report also support toothers during the year for jointly-sponsored projects.(Recioient aust be identified regardless of affiliation ) For any research and developaent work carriedon by the respondent in which there is a sharing ofcosts with othersi show separately the respondent'scost for the year and cost chargeable to others. (Seedefinition of research and development in UniforuSystem of Accounts. )

2 Indicate in coluon (a) the applicable classifi-'cation, as sho~n belowi list in colusn (b) all R 8

0'tessperforned internally and those itess perforsedoutside the cospany costing $ 5,000 or sore, briefly

'escribing the specific area of research or develop-sent (such as safety> corrosion control> pollution>

autoaationi seasureaent> insulationi tvoe of aooli-ance, etc.). Itess under $5,000 say be grouped by class-ifications provided that the nusber of itens so group~ d is indicated. Under Other, A. (6) and 8. (4) itclsshould be classified by type of research or developnentactivity.

Classifications-A. Electric Utility R h 0 Perforned Internally

(1) generationa. Hydro electr i c e

i ~ Recteationq fish and 4ildlife~

' i. Other hydroelectri'cFossil-fuel steaa~

c'nternal cosbustion or gas turbine'.

Nucleare. Unconventional*generationf. Siting and heat rejection

(2) Systes Planning> Engineering and Operation.

, Linet Noi

1

2

3

5

6

78

9

10

11

12

13

14

15

16

17

18

19

20

21

2223

24

25

26

27

28

29

30

3132

33

343f

3637

8

Classification

(5) ConservationConsultants,Inc o

(5) CouV~zztalShei~ Asso-ciates, Inc.

4

(g) Da s a Were

(5) Ebasco ServicesIQC o

(g) EnvironmentalEnginee ingInc.

(5) i~xrida Depart-QRnt ofPollutionCcaztro1

(5) Vni~sity offlorida (In-dustrialEngineeringZxperimnha1Station,College ofEngineering)

g i~(Qi1,qr

Oescriptionb

Conservation consulting port - Manatee

Hutchinson Zslaa9. offshore instruin ntstations 5 s~wies. EmrLrormmntalsur~rey in Biscapae Bay 5 Card. Sound.

Grounlm4er monitoring and. investigationsdeep

aquifer

research azL consultingfor Turk~ Point

(1) Site selection studies (2) Buoyantget discharge mcle1 st~ (3) Studiesof ocean water circulating system forautchinson Zsxara (4) Wa er Suop~ forWest Coast plant site

(1) Hutchinson Zs3azL Ma~e Surrey(2) ~ieze air sam Zing program in

W HZav Site vicinity

Mathematical nrxLe3. in the Port Manateearea of Tampa Bay

(1) A~ma. contri~io to the el ~~engineering research program (2) Card.Sound. 8e Turkey Point St~ca

448 ~B - C327—Rev 5 73

HDBEDA POWER 8s Lt:G82 COMBATAnnual report of ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~.......... ~ ~ ~ ~......... ~...., ~ . ~ ~ . ~ ~ . ~ ~ ~ ~ ~ ~ ~ . Year ended Oeceaber 31) 19i7R

RESEARCH AND DEVELOPMENT ACTIVITIES (Continued)(3) Transaission

a~ Overheadb. Underground

4 Oistribution5 Enviransent (other than equipaent )6 Other (Classify and include iteas in excess

of $5)000+).(7) Total Cost Incurred

B. Electric Utility R 8 0 Perfaraed Externallv(1) Research Support to the Electric ResearchCaun

cil or the Electric Pover Research Institute2 Research Support to Edison Electric Institute

Research Suppart to Nuclear Power Groups4 Research Support to Others (Classify)5 Total Cast Incurred

3. Show in colusn (c) all costs incurred for R 8 0perforsed internally and colusn (d) all costs incurred

for R hO perforsed externally during the current year.Shov in colusn (e) the account nuaber charged «ith expensee during the year or the account to «hich aaountsvere capitalized during the year, listing aaaunts inaccount 107) Construction Work in Progress) flrst0Shov in colwn (f) the aaounts related to the accountcharged in coluan" (e). Shaw in coluan (g) the totalunaaort i zed accuaulat ion a f costs of pro jectsi Thetotal of colusn (g) vill equal the balance in account188) Research and Oevelopsent Expenditures,,autstand"Ing at the end of the year.

P

4i If casts have not been segregated for: researchand developsent activities ar project) estiaatee.aay.besubsitted far colusns (c)) (d) and(f) vith such aaountsidentified by "Est "

5. Report separately research an I related testingfacilities operated by the respondent+

.I.inNo+

Costs Incurred InternallyCurrent Year

c

Costs Incurred ExternallyCurrent Year

dAccount Aaount

f

ALlOUNTS CHARGEO IN CURRENT YEAR TO UnaaortizadAccuaulation

1

2

3

4

5

6

7

8

9

10

1112

13

14

15

16

1'?

18

19

20

21

22

23

24

25

26

2?

28

29

30

)132

'3

34

35

36

3738

aS3,630

76,033

6,000

3075809Z3

107930

448-C— C328-

g8,)4'I67,hag

32 $337

m4,H9900

27>R@

76,033

6,000

35',006)43,O4O

Rev 5-73

Annual r coo rt o f ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Year ended Dec esbel 31) 19 ~ ~ ~72

RESEARCH AND DEVELOPMENT ACTIVITIES~Oescr ibe and show below costs incurred and ac

o s charged during the year for technological research and developsent projects initiated> continuedor concluded during the year. Report also support toothers during the year for jointly-sponsored pro jects.(Recipient aust be identified regardless of affilia-tion.) For any research and developaent work carriedon by the respondent in which there is a sharing ofcosts with others> show separately the respondent'scost for the year and cost chargeable to others (Seedefinition of research and developsent in UniforsSystea of Accounts )

2i Indicate in coluon (a) the applicable classi fication> as shown belowi list in colusn (b) all R S 0i tens perforsed internally and those iteas perforsedoutside the cospany costing $ 5,000 or sore~ brieflydescribing the specific area o$ research or develop-ment (such as safety, corrosion control, pollutione

autosationo aeasureaent> insulation> tvoe of aooliance> etc.). Itess under $5,000 say be grouped by class-ifications provided that the nusber of itens so group-ed is indicated. Under

Other's

A. (6) and 8. (4) itemsshould be classified by type of research or developsentact ivi ty.

Classifications-A. Electric Utility R k 0 Perforsed Internally

(1) Generat i onai Hydroelectric)

I ~ Recreation> fi sh and Qi ldlifeii. Other hydroelectric

bi Fossil fuel steawc. Internal cosbustion or gas turbined. Iiucleare. Unconventional gener ationf. Siting and heat rejection

(2) System Planning, Engineering and Operation.

ineRo

1

2

3

4

5

8

9

10

ll121'3

14

15

16

17

18

19

20

21

22

23

24

2526

27

28

29

30

3132

3334

37

Classification

(5) Dr. Ray L.Lylery

(5) aeyno~,Smith 5 ~~Zvc.

(5) Soxxth~Rxc1earEngineering,ZQC e

(5) Un veracity of

(5) rightning ~TransiexxtResearch

. 2mtitute

(5) other gemsVoder $5,0CO

Descriptionb

(1) research on sWee ter corn~ t~a@6 coo1ing reservoir at Turkey Point(2) Srbero1ogy consulting at Hutchin-son Zs~ (3) Had.ioactive wastesties (jI) Stact emission contro1program (5) Off-Shore pmfer p1antsiting stories

(1) Exxvtronmenta1 impact st~

(1) Metero1ogy station and, exxvtronnmxrhrenart (2) Sa1twater coo1ing ~~ tojeep abreast of Ir6ustry status (3)Pish entrapaexxt ster (jI) AruQpsis ofreservoir performance (5) Researching~~~ c~~~ (6) a~~Wivwaste systems report (7) TemneratnreanL sa1inity calniLation from coo1ingreservoir

Research servLces In connection Wth astudy of coo~~ eater axe. thermZ,effects in CarcL Scnxnd.

Ccmgletion of testing of arrestors,chechLng ahKitiona1 181'xxL atherarrestars at high energy 1eve1s

Variaus Prospects

448 N Q329-Rev 5 73

Annual report of. KR~ .~ ~ ~............. ~ ~ ~ . ~ " ~ . ~ . ~,"" ~ ""i"i ~ .Year ended Oeccsber 31c 19e e.

RESEARCH AND DEVELOPMENT ACTIVITIES (Continued)(3) Transsission

a, Overheadb. Under ground

4 Olstribution5 Environment (other than cquipaent)6 Other (Classify and include items in excess

of $ 5g 0004)(7) Total Cost Incurr cd

8 ~ Electric Utility R d 0 Pcs formed Externallv(1) Research Support to the Electric ResearchCoun-

ci 1 or the Electric Po~er Research Institute2 Research Support to Edison Electric Institute3 Research Support to Nuclear Paver Groups4 Research Support to Others (Classify)5 Total Cost Incurred

3. Shov in «olusn (c) all costs incurred for R d 0performed internally and column (d) all costs incurred

for R d 0 performed externally during the current year%Shov in column (c) the account number charged with ex-penses during the year or the account to which amountsvere capitalized during the yearc listing aaounts inaccount 107c Construction York In Progressc first+Shov in coluan (f) the amounts related to the accountcharged in column (e). Shov in column (g) the totalunamortized accumulation of costs of projects Thetotal of column (g) vill equal the balance in account188m Research. and. Oevelopaent Expcndituresc outstand-Ing at the cnd of the year.

4i If costs have not been segregated for: researchand development activities or project> estimates eay.bcsubsittcd for coluans (c)c (d) and (f) with such amountsidentified by "Est." .

I x

5. Report separately research and related testing'acilities operated by the responocnti

I. inNoo

1

2

3

4

5

6

7

8

9

10

11

13

14

15

16

17

18

19.

20

21

Costs Incurred Intcrnall Costs Incurred ExternallyCurrent Year Current Year

c d

$ 246,889

59>785

-uO,254

Accountc

Amount

%3s315

58,2633.,522

Xm,2Q

AMOUNTS CIIARGEO IN CURRENT YEAR TO UnamortizedAccumulation

23

24

25

26

27

28

29

30

3132

'3

34

35

36

378

78,431

L7>297

448

78,43>,

5,000

m,4955,802

Rev 5 73

0330—

innual reoort of ~ ~ XNRXPA.~+ ~ ..R.GIBE.CORN% ~ ~ i ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ Year ended Oecenber 31~ 1973.

RESEARCH AND DEVELOPMENT ACTIVITIES1, Oescribe and shou belov costs incurred and ac

ounts charged during the year for technological re-search and developsent projects initiatedt continuedor concluded during the year . Report a)so support toothers during the year for jointly-sponsored pro jects.(Recipient aust be identified regardless of affilia-tion.) For any research and developsent vorh carriedon by the respondent in rhich there Is a sharing ofcosts vith othersq shou separately the respondent~scost for the year and cost chargeable to others'Seedefinition of research and developnent in UniforsSystea of 4ccounts. )

2 Indicate in colunn (4) the applicable classificatione as shovn belovi list in colunn (b) all R 8

0'teasperforned internally and those itens perforsedoutside the cospany costing $ 5,000 or sore, brieflydescribing the specific area of research or developsent (such as safety> corrosion controls pollution,

autosatloni seasurenent, insulationv tvoe of aooli-ance> etc.) I tens under $ 5~000 say be grouped by classifications provided that the nusber of itens so group-ed is indicated. Under Other> 4 (6) and 8. (4) itensshould be classified by type of research or developaentactivity.

Class if icationsA. Electric Utility R k 0 Per forced Internally

(1) Qenerationai Hydroelectrice

i. Recreatione fish and wildlife' ii Other hydroelectric.

b Fossil fuel stean ~

c Internal coobustion or gas turbine "

d. Nucleare, Unconventional generationf. Siting and heat rejection

(2) Systes Planninga. Engineering and Operation.

ineNo+

1

2

3

4

5

6

7

8

9

10

1112

13

14

15

16

17

18

19

20

21

22

23

24

2526

27

28

29

30

3132

33

34

356

Classification

2B - 8&3 PerformedOutside the C

(5) 'may Dr"U.ingInc.

(5) Applied Biology

(5) Bechte1 Corpora-tion

(5) Brown & Root,Inc ~

(5) ConservationConsultants,

Inc ~

Oescriptionb

Dr'illing'''s test w'ster well'Re:'F3.oridsn'quifer

Water Supply Investigation, Dade Caunty

Biolagical Ssmplcmg Hutchinson IslandField. Station Environmental Study

Services st Turkey Point Plant re: CirculationWater Temperature Study, Assistance for Start-up,Piping snd cable tray seismic analysis, CoolingLake

Investigation of Water Resources of the State ofFlorida

Fuel Oil Supply StudySite Selection and Envtrazmtental Control Study

Services at Turkey Point Plant re: Temperature,evaporation, sud salinity canputatianal analysis

Engineering and Design Services re; Design of a

cooling water reservoir at ManateeEngineering and Design Services re: Sanford

reservoir drainage snd well water quality aspectsof release of rainfall frost the reservoir

Engineering and, Design Services re: studies sndpermitting effort for Manatee Cooling WaterReservoir

Engineering Services re: preliminary engineeringand environmental impact statement

Engineering Study for the Peace River Site Selection

Ecolagica1.Imrestigation in the Little Manatee Riverat Willow Site Facility

Les~ ~

448 - C331—

Rev 5 73

Annual repo) t of. ~ ~ ~~ ~

~ . ~ .. ~.... ~ ~ . ~ Year ended Oeccsber 31, 1973.

RESEARCH A%3 DEVELOPMENT ACTIVITIES (Continued)(3) Transsission

~ , Overheadb, Underground

4 Oistribution5 Environsent (other than equipsent )6 Other (Classify and include Itess in excess

of $ 5)000 )(7) Total Cost Incurred

8. Electric Utility R d 0 Perforsed Externallv(1) Resea) ch Support to the Electric ResearchCoun

cil or the Electric Pover Research Institute2 Research Support to Edison Electric institute3 Research Support to Nuclear Pove)'roups4 Research Support to. Others (Classify)5 Total Cost Incurred

3 Shov in coluan (c) all costs incurred for R d 0perforsed Internally and colusn (d) all costs incurred

for R d0 perforsed externally during the current year.Shov in colusn ( ~ ) the account nusber charged vith ex-penses during the year or the account to vhich asountsvere capitaliaed during the year, listing asounts inaccount 107) Construction Vork in Progl ess) first.Shov in colusn (f) the aoounts related to the accountcharged in colusn ( ~ ). Shov in colusn (g) the totalunasortized accusulation of costs of projects Thetotal of colusn (g) vill equal the balance in account188) Resea) ch and Oevelopsent Expenditures, cutstand-lng at the end of the year.

4, If costs have not been segregated for research.and developsent activities or project) estioatee say besubsitted for colusns (c)) (d) and (f) vith such asountsi dent i f i ed by "Est."

5. Report separately research and related testingfacilities operated by the respondent.

i.inNow

Costa Incurr ed InternallCurrent Year

c

Costs Incurred ExternallyCurrent Year

d

AMOUNIS CHARCEO IN CURRENT YEAR TO

AsountAccountUnasortiaedAccusulation

1

2

3

4

5'

7

8

910

ll12

13

14

15

16

17

18

19

20'2l22

23

24

25

26

27'28

29

30~ 31

32'3

34

35

36

37

48,517

376,351

107

107

107

465,o88 107

107

107

107

107

25 F000 107

I.75;810 ..: ..;..... 107.;: g.. a.75,810,

48,517

320,079

5 a000

28;31822,954

212s142

7,58o

6;618

155,041

83 s262

25,000

448A Rev 5 73

— C332

Annual reoort of PLORXDA POtv~ 8e LIGHT COMPLY Year ended Oeccaber 31, 190.

RESEARCH AND DEVELOPMEilT ACTIVITIESl. Oescribe and shou belou costs incurred and ac-

counts charged curing the year for technological re-search and developaent projects initiatedq continuedor concluded dur ing the year. Report also support toothers during the year for jointly-sponsored pro jects.(Recipient wst be identified regardless of affilia-tion.) For any risearch and developaent vora'arriedon by the respondent in vhich there is a sharing ofcosts vith otherse shov separately the respondent~scost for the year aod cost chargeable to others (Seedefinition of research and developaent icr Unifora

~S stea of Accounts. )

2. Indicate in coluan (a) the applicable classifi-cation, as shovn belouI list in coluon (b) all R 8 0iteas perforaed internally and those iteas perforaedoutside the coapany costing )5,000 or sore, br ieflydescribing the specific area of research or develop-sent (such as safety, corrosion control, pollutione

autoaation. seasureaent, insulation, tvoe of aooli-ancee etc.). Iteas under $ 5~000 say be grouped by classifications provides that the nuaber of iteas so group~ d is indicatedi Under Other, A. (6) and 8. (4) iteasshould be classified by type of research or oevelopaentact ivity.

Classifications-A. Electric Utility R A 0 Perforsed Internally

(1) generationa Hydroelectr i c e

I ~ Recreatione fish and VildlifeIiiOther hydroelectric

bo Fossil fuel steaac. Internal coabustion or gas turbined. Iiuclear~ i Unconventional generation

Siting and heat rejection(2) Systea Planninge Engineering and Operation.

ineMoo

Class i ficationa

Descriptionb

1

2

5

6

7

8

9

10

1112

13

14

15

16

17

18

19

20

21

22

23

24

2526

27

28

29

30

3132

33

34

35

6

7

8

(5) Dsmes 8c Moore Groizndwater monitoring and investigation, leep~uifier research, canal beam stability cooling canalsystem, research and. consulting for Tur|zey Poiat

Site Selection StudyConsulting services for the production test well and,

the governmental represeatative meetingPlorilsn Water Supply Xnvestigstion Cooling Canal

System at Turkey Point

(5) Dr. Donald Dunlop Managemeat Consulting Services re z environmentalresearch

(5) Ebasco Services,Enc.

(5) EnvtronmezztaaEngineering, Inc

(5) Gee a bensonConsultingEngineer's, Xnc.

~UNCS+

Physical Property Operations Residential Unlergraund.~ Distribution ResearchStudies of ocean circulating eater inta)ze system for

St. Lucie Plaat Environmental ReportEngineering Services at St. Lucie Plaat to provide

information for preparation of envtronmental meetings

WiZlev Site - ambient air monitoH~ pragrsm in,thevicinity of the Cutler Plaat

Hutchinson island Reine SurveyResidential Underground Distribution ResearchAmbient Air Ssznpling Survey on Martin Plaat SiteAmbiezzt Air Sampling Survey on Cutler Plaat

Engineering Services re: Cooling Canal System atTur)zey Poizzt Plsat

(5) Coatineatai Shelf Environmental Surveys in Biscayne Bay and, Carl Sound.

Associates, Inc.~ Studies at.Hutchinson Island Offshore. instrument

Stati.onHutchinson island Thermagrsph Station

448- B

- C333-

Rev 5 73

Annual report of., ~ ~ .iN8eUk.20%8, A.QGVZ.CNPAK................. ~ ~ Year ended Oecesber 3Lq 1973 .

RESEARCH AND DEVELOPMENT ACTIVITIES (COTLtintled)I

(3) Tranasissiona Overheadbi Underground

4 Oistribution5 Environaent (other than equipsent)6 Other (Classify and include itess in excess

of $ 5~000~)(7) Total Cost Incurred

8. Electric Utility R 8 0 Perforsed Externallv(1) Research Support to the Electric Research Coun

cil or the Electric Paver Research Institute2 Research-Support to Edison Electric institute3 Research Support to Nuclear Pover groups4 Research Support to Others (Classify)5 Total Cost Incurred

Shov in colusn (c) all costs incurred for R 8 0perforsed internally and coluan (d) all costs incurred

for R 80 perforsed externally during the current year.Shov in colusn ( ~ ) the account nusber charged vith expensee during the year or the account to vhich asountsvere capitalixed during the year, listing asounts inaccount 107a Construction Mork in Progresse first,Shov in colusn (f) the asounts related to the accountcharged in colusn (e). Shov in colusn (g) the totalunasort I ted accusulat ion of costs of pro jects Thetotal of colusn (g) vill equal the balance in account188e Research and Oevelopsent Expenditurese outstand-ing at the end of the year.

4.. If costs have not been segregated for researchand developsent activities or project~ estina4es say,besubsitted for colusns (c); (d) and (f)»ith such aaountsidentified by "Est.n

5i Report separately research and related testingfaci lities operated by the respondent.

Costs Incurr ed InternallCurrent Year

No,

Cost s I ncurred Ext ernallyCurrent Year

dAccount Asount

f

AMOUNTS CXARGEO IN CURRENT YEAR TO UnasortizedAccusulat i on

5,403 107 2,000

5

6

7

8

910

11

12

13

14

15

16

~ 17

18

19

20

21

22

23

24

25

26

27

28

'29

30

3132

33

34

35

36

37

~ ~ 4lg $ i

302'19

11,671

35,487

35 $ 377

28;87j4

„... 107,

107

107

107107

107

107

107

107

107580107923

107

..637 .

2,766

12i4 017

80,8576,176

91,469

11,671

)4,250

30;657

4,759

20s932200

5>3794,107

2,938

448- C Rev 5-73

— C334—

A nual resort o f Year ended Oecember 31, 159.

RESEARCH AND DEVELOPMENT ACTIVITIES1. Oescribe and shov belov costs incurred and ac-unts charged curing the year for technological re

search and development projects initiated, continuedor concluded dur ing the year ~ Report also support toothers dur ing the year for jointly-sponsored pro jects.(Recipient must be identified regardless of affilia-tion.) For any research and development vora'arriedon by the respondent in vhich there is a sharing ofcosts vith otherse shov separately the respondent~scost for the year and cost chargeable to others (Seedefinition of research and development in UniformSystem of Accounts. )

2 Indicate in column (a) the applicable class i f ication> as shovn belovi list in column (b) all R 8 0.I'terna performed internally and those items performedoutside the company costing )5,000 or sore> bri ~ flydescribing the specific area of research or develop»ment ( such as safetye corrosion control> polluticne

automation ~ measurement» insulationo tvoe of aooli-ance> etc.). Items under $5,000 say be grouped by class-ifications provided that the number of items so group-

edd

is indicated. Under Other, A. (6) and 8. (4) itemsshould be classified by type of research or developmentactivity.Classifications-

A, Electric Utility R k 0 Performed Internally(1) Generation

a. Hydroelectric s

I ~ Recreatione fish and 4ildlifeii. Other hydroelectric

bi, Fossil-fuel steamc Internal combustion or gas turbined. IIuclear~ . Unconventional generation

Siting and heat rejection(2) System Planninge Engineering and Operation.

ineRo

1

2

.3A

5

6

7

8

9

10

ll12

13

1A

15

16

17

18

19

20

21

22

23

24

2526

2?

28

29

30

3132

33

34

35

Class ification

(5) Gee 5 JensonConsultingEngineers, Inc.

(contd.)

(5) Georgia Insti-.tute ofTechnology

(5) ZVB E~ine ring,Inc o

,[5) Arthur D. LittleInc.

(5) Ray Ly rW

(P) Mid-Valley, Inc.

Oescriptionb

Surveys and Calculations re: P object SeminoleEngineering Services at Southwest OkeechobeeEngineering Services re: .Intake Tube at Riviera

Beach PlantBroward. County Land Study

Zcological Studies of a Subtropical TerrcstialBicme - Microbial Ecology

Consulting and instrumentation in support ofnitrogen oxide emission tests

Paricipation in first phase of Solar Climate Coatrol~ Prop cot

Consulting Services in Power Plaat Engineering re:Turkey Point Cooling Reservoir, Cooling Tamrand Meterology

Future Plaat Sites and, Stack Emission VisibilityProgram

Misc. Assignments, Conferences and Seminars,Turkey Point - General, St. Lucie Meterology,Stack Emission Control Program, Biology,Hydrology, M'eterology, Radioactive Waste Studies,8~in Plaat Site, Manatee Plaat Site, Electro-static Precipitation Program, Sulfur DioxideRemoval Program, Nitrogen Qxide Reduction Program,Environmental Inspection - Existing Plants, SouthDade Site, Plorida Coordinating Group HQx Hearing

Dade County Site Selection StudyEngineering and Design Services re: Prospect

Seminole

0/950

AA8 - D

C335-

Rev 5 73

Annual report of. ~ . ~ ~~ ... ~ ~ ." ~ ~ .. ~ ~ Year ended Oecesbef 31'$ 3o ~

RESEARCH AND DEVELOPMENT ACTIVITIES (Continued)',(3) Transsission

a Overheadbi Underground

4 Oistribution5 Environsent (other than equipaent)6 Other (Classify and Include itess in excess

of $5,000.)(7) Total Cost Incurred

B. Electric Utility R & 0 Perforsed Externallv(1) Research Support to the Electric Research Coun-

cil or the Electric Power Research Institute2 Research Support to Edison Electric Institute3 Research Support to Nuclear Pover Croups4 Research Support ta Others (Classify)5 Total Cost Incurred

3. Shov in colusn (c) all costs incurred for R & 0perforsed internally and colusn (d) all costs incurred

for R & 0 per forsed externally during the current year.Show in colusn ( ~ ) the account nusber charged with expensee during the year or the account to wnich asountswere capitaliaed during the years listing aaounts inaccount 107~ Construction Vork In Progresst first.Shov in colusn (f) the aaounts related to the accountcharged In colusn (e) Show in colusn (g) the totalunasort I ted accusulat ion of costs of pro jects. Thetotal of colusn (g) will equal the balance in account1SSA Research and Oevelopsent Expenditures, outstand-Ing at the end of the year.

4. If costs hays not been segregated for . researchand developsent act'ivities or prol'ect, estioatee say,besubsittect for colusns (c)A (d) and (f) with such asounisidentified by nEst "

5. Raper t separately research and related testingfacilities operated by the respondent.

i.inNo+

Costs Incurred Internall Costs Incurr ed Ext ernallyCurrent Year Current Year

c dAccount Asount

AMOUNTS CHARGEO IN CURRENT YEAR TO UnaoortisedAccusula t Ion

1

2

4

5

6

7

8

910

11

13'4

15

16

17

18

19

20

21

22

23'4

25

26

27

29

30

3132

'3

34

35

36

3738

37,o8o

60,768

7,500

331,o66

253s157

107

511...

183

107

923183

107

183

107107

448- E

m,5@7991

~;.1,)446

37,o8o

38,12322,6)45

7,5CO

155,851

17s079

158,136

2Ba,96112,ops

Rev 5 73

—C336-

o f FIDR32)A PC5KR & LlGHT COMPLY . Year ended Oec ember 31, 19....

RESEARCH AND DEVELOPMENT ACTIVITIES1. Oescribe and show below costs incurred and ac

counts charged during the year for technological research and development projects initiated, continuedor concluded during the year. Report also support toothers during the year for jointly-sponsor ed pro jects.(Recipient must be identi fied regardless of aff iliation ) For any research and development work carriedon by the respondent in which there is a sharing ofcosts vith others, show separately the respondentiacost for the year and «ost chargeable to others, (Seedefinition of research and development in UniformSystem of Accounts )

1

2. Indicate in column (a) the applicable classi'fi-catione as sho~n belovi list in column (b) all R 8 0items performed internally and those items performedoutside the company costing $ 5,000 or more| brieflydescribing the specific area of research or development ( such as safety, corrosibn control, pollutione

'L

automationi seasurementl insulationi tvoe of aooli-ance> etc.). Items under $5t000 may be grouped by class-ifications provided that the number of items so group-

edd

is indicated. Under Other, 4 (6) and 8. (4) itemsshould be classified by type of research or developmentacti vi ty~

Classifications-A. Electric Utility R 8 0 Performed Internally

(1) generationa. Hydroelectr ice

I ~ Recreatione fish and kildlifeilwOther hydroelectric

b. Fossil-fuel steam1

ci Internal combustion or gas turbinedo Ituclealei Unconventional generation

Siting and heat rejection.(2) System Planning, Engineering and Operation.

ineRoe

1

3

4

5

6

?

8

9

10

Il12

13

14

15

16

1j18

19

20

21

22'23

24

25

26

2l28

29

30

3132

33

34

5

3j8

Classification

(5) Mid-Vali y, rn .(contd)

(5) Haleus - Weston

(5) Reynolds, Smith8 Hill, Znc.

(5) Southern NuclearEngineering .

(5) Turner, Y~on&, Solomon

XO~g~g

Oescrlptionb

Engineering Services re: Boca Grande OilTerminal Extension

Process Water Study

" Site Survey - General

Site Identification and, Evaluation StudyPhase 2 - Lake DexterPenney Farms Site SurveyEnvtrozanental Impact Study

RR% F- 8RRFent Lake

Cooling Reservoir - coordinate additional tempera-ture and, salinity calc~tions.

Fish Entrapment Study - investigate and, report onCentral Power 1 Light Co. fish diversion techniques

Radiation Waste Systems - final report and sunnnarixerecamnendations

Various consulting services at Turkey Point Plant and.

Engineering ie. Mechanical Cooling TaiyerAttend, AIP meeting on environmental criteria aud.

environmental task specificationsTritium Concentration ProgramEngineering and Consulting Services for St. Lucie

PlazrtCondenser Cleaning Study

Engineering services re! Long Term IndustrialFuel Forecast

448- F - C337—Rev 5-73

PLQRIDA POSER 0 LIGHT CCHPANY 73Annual report of. ~ ~ ~ ~ ~ ~ ~ ~ "~" ~ ~ ~ ~ ~ ~ ....... ~................. ~........ ~ .. Year ended Oeccsber 31, 19.. ~ .

RESEARCH AND DEVELOPMENT ACTDGTIES (Continued)(3) Transaission

~ . Overheadb Underground

4 Oistribution5 Environsent (other than equipaent )6 Other (CIassify and include itess in excess

of $ 3~000+)(7) Total Cost Incurred

8. Electric Utility R 8 0 Perforsed Externallv(1) Research Support to the Electric ResearchCoun

cil or the Electric po«er Research InstItute2 Research Support to Kdlson Klectric Institute.3 Research Support to Nuclear Power Groups4 Research Support to Others (Classify)3 Total Coat. Incurred

Shov in colusn (c) all costs incurred for R 8 0perforsed Internally and colusn (d) all costs inc.urr ed

for R 40 perforsed externally during the current yearShow 'in colusn (e) the account nusber charged «ith ex-penses during the yiar or the account to which asountswere capitalised during the yeare listing asounts inaccount 107, Construction Work In Progress, first.Show in colusn (f) the asounts related to the accountcharged in colusn (e). Show in colusn (g) the totalunasortized accusulation of costs of projects Thetotal of colusn (g) will equal the balance in account188, Research and Oevelopsent Expenditures> ouistanding at the end of the year.

4 If costs have not been segregated for researchand developsent activities or project~ estinatee say.besubsitted for colusns (c)e (d) and(f) with suchasountsidentified by «Est.s. "

5i Report separately research and related testingfacilities operated by the respondent.

Costs Incurred Internall Costs Incurred ExternallyCurrent Year Current Year

No+ c dAccount Asount

f

AMOUNTS CNARGEO IN CURRENT YEAR TO UnaoortizedAccusulat ion

1

4''?8

9

10

11

12

13

14

15

16

17

18

19

20

21

23

24

25

26

27

28

29

30

3132

'3

34

35

36

37

8,170

45,419

51,514

107

183

183 .

183

107

107

107

107

107107

8,102

8,170

18,316

5131,254

627154593'[I9,693

ls170

3 130

10,490

610

20019,784

6,437

18,798

448' QRev 5 73

- C338-

, Annual reoort ofPLOHZDA H%~ 8s LIGHT COMPAHY 73.......year ended Oecember 31, 19....

RESEARCH AND DEVELOPMENT ACTlVITIESl. Oescribe and shov belo» costs incurred and ac-

@unto charged during the year for technological re-search and development projects initiated, continuedor concluded during the year. Report also support toothers during the year for jointly-sponsored proj acts.(Recipient aust be ident i fied regardless of aff illation. ) For any research and development voric carriedon by the respondent in which there is a sharing ofcosts vith otherse show separately the respondent~scost for the year and cost chargeable to others (Seedefinition of research and development in UniformSystem of Accounts. )

2. Indicate in column (a) the applicable classifi-cations as sho~n belowi list in column (b) all R 8 0items performed internally and those Items performedoutside the company costing $ 5 ~ 000 or sore, br I ~ flydescribing the specific area of research or develop-sent ( such as safety> corrosion control, pollution,

automation. seasuremento insulationi tvoe of aooli-ancea etc.) ~ Items under $ 5~000 say be grouped by class-ifications provided that the number of items so group-s d is indicated. Under Other, Ai (6) and 8. (4) Itemsshould be classified by type of research or developmentact I VI tye

Classifications-A Electric Utility R C 0 Performed Internally

(1) Generationa. Hydro electr i c a

I ~ Recreat iona fish and 4il'dlifeii. Other hydroelectric

b. Fossil-fuel steamc. Internal combustion or gas turbinedi Nuclear~ . Unconventional generationf. Siting and heat rejection

(2) System Planninge Engineering and Operation.

ineNoo

Classification Oescription

3

4

5

6

?

8

9

10

ll12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

3132

33

34

35

6

7

8

(5) United Engineers4 ConstructorsECCL

(5) University ofFlorida

(Znd.ustrialEngineeringExPerimentStation)

(5) University ofMiami

(5) Dr. Nancy We~>

Engineering evaluation study of an offshore nuclearplant as an alternate to land based nuclear or oilfired. Plants

Numerical Modeling Study at Turkey Point - CardSound and Biscayne Bsy

Physical examinations of Plorida PoIfer 8c LightcI5ployees at Turkey Point

Study of the role of microorganisms as indicatorsof obliging emrirolmtental conditions in theMangrove Community

Nutrient level testsEcological Study of South Biscayne Bay and, Card,

Sound

Consulting services re:Turkey PoizrtSouth DadeSt. LuciePort ManateeMartin CountyExisting PlantsNorthern SiteSanf ord. PlantWestern SiteCentral Site

448- < Rev 5 73

- C339—

FIAEZDA POKE 8s LXGHT COMPAHY73Annual report of ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ i ~ ~ ~ ~ ~ ~ .."~.... ~ . ~ ~ ~...„...,.Year ended Oecesber 31> 19....

RESEARCH AND DEVELOPMENT ACTIVITIES (Continued)(3) Transsiesion

ai Overheadbo Underground

4 Distribution5 Environsent (other than equipsent )6 Other (Classi fy and include itess in excess

of 45,000.)(7) Total Cost Incurred

8. Electric Utility R & D Perforsed Externallv(1) Research Support to the Electric ResearchCoun

cil oc the Electric Power Research Institute2 Research Support to Edison Electr i c Inst i tute3 Research Support to Nuclear Pover Groups4 Research Support to Others (Classify)5 Total Cost Incurred

3. Show in colusn (c) all costs incurred for R & Dperforsed internally and colunn (d) all costs Incurred

for R &0 perforsed externally during the current yeariShow in colusn (e) the account nusber charged with ex-penses during the year or the account to which asountsvere capitalized during the yeart listing asounts inaccount 107a Construction Work In Progressa firstoShov in colusn (f) the asounts related to the accountcharged in colusn (e) ~ Show in colusn (g) the totalunasortised accusulation of costs of projects Thetotal of colusn (g) vill equal the balance in account188a Research and Oevelopsent Expendituresq outstand-ing at the end of the year.

4. If costs have not been segregated forresearch'nd

developsent activities or project> estinatee say,besubsitted for colusns (c)~ (d) and (f)»ith such asountsidentified by "Est "

5o Report separately research and related testingfacilities operated by the respondent.Costs"Incurred Intarnall

Current YearNoo c

Cost s I n cur red Ext smallyCurrent Year

d

69,297

Accounte

Asountf

923 $ 69,297

AMOUNtS CHARGED IN CURRENT YEAR TO UnasortisedAccusulation

LO,8LL 107 10,8LL

10

11

12

13

14

15

16

17

18

19

20

21

23

24

25

26

27

28

29

30

3132

3334

35

36

37

48,306

86 Q5g

107

107

107107

107

256

28,388

816L8,8I46

.6,LLZL6,1227,987

LL,&715,960

69578746209220259

448.- I Rev 5 73

- C340-

~iQKZA PGb~ 8s LIGHT COMPAHY .. ~ Year ended Oecesber 31, 1973..

RESEARCH AND DEVELOPMENT ACTIVITIES1. Oescribe and shov belov costs incurred and ac

ounts charged curing the year for technological re-search and develoosent projects initiatede continuedor concluded during the year. Reportalso support toothers during the year for jointly-sponsored pro jects.(Recipient suet be identified. regardless of affilia-tion.) For any research and developsent vork carriedon by the respondent in vhich there is a sharing ofcosts vith others> sho» separately the respondent'scost for the year and cost chargeable to others (Seedefinition of research and developsent in UniforsSystes of Accounts. )

2. Indicate in coluan (a) the applicable

classific-

ationse as shovn belo«I list in coluon (b) all R 80'teosperforsed internally and those itens perforsed

outside the coopany costing $ 5~000 or sore, brieflydescribing the specific area of research or deveiop-sent (such as safetye corrosion control, pollutione

autosatlon, oeasurenents insulation. tvoe of aooli-ancee etc.) ~ I tens under $ 5~000 say be grouped by class"ifications provided that the nusber of itess so grouped is indicated. Under Other, A. (6) and 8. (4) itessshould be classified by type of research or developaentactivity.

Classifications-A. Electric Utility R 8 0 Perforoed Internally

(1) generationa. Hydroelectrics

I ~ Recreat I onq f ish and '4ildlifeI Ii Other hydroelectric

b'i Fossil~fuel steasc. Internal cosbustion or gas tu< bined Nuclear~ i Unconventional generationf. Siting and heat rejection

(2) Systes Planninge Kngineering and Operation.

ineNow

1

2

3

4

6

1

8

9

10

11

12

13

14

15

16

1?

18

19

20

21

22

23

24

2526

27

28

29

30

3132

33

34

35

6

Classification

(5) Dr. Zancy wells(contd)

(5) vari C. ve) er

(5) Other IteoIsUnder $5,000

Oescription

Orange Sizings Mtg.AlliedBiology Sear twasApplied Biology Biologist

Plant Site Studies

Va ious Prospects

448 - JRev 5 13

Annual report af....FXQRIM.2%ERki TIGHT.C032AHZ . ~ ~ ~ ~ . ~ ~ ~ Year ended Oecesber 31i 19i7Z

RESEARCH AND DEVELOPMENT ACTIVITIES (Continued)

Costs Incurred I nternallCurrent Year

No+

Costs Incurred ExternallyCurrent Year

d

(3) Transsissiona Overheadb UndergroundOistribution

5 Environnent (other than equipsent)6 Other (Classify and include itess In excess

of $5 ~ 000e )(7) Total Cost Incurred

8.'lectric Utility R 8 0 Perforsed External)v(1) Research Support to the Electric ResearchCaun

cil or the Electric Paver Research Institute2 Research Support to Edison Electric Insti tute3 Research Support to Nuclear Power Croups4 Research Support to Others (Classify)'

Total Cost Incurred

3, Show in colusn (c) all casts Incurred for R 8 0perforsed Internally and coluan (d) all costs incurred

4. I f casts have not been segregated for researchand developsent activities or pro jecti estinatee say besubsitted for colusns (c), (d) and (f) vith such asauntsidentified by "Est "

5i Report separately research and related testingfacilities operated by the respondent.

UnasartizedAccusulation

AMOUNTS CNARCEO IN CURRENT YEAR TO

Asauntf

Accounte

for R 80 perforsed externally during the current year.Sho» in colusn ( ~ ) the account nusber charged vith expensee during the year or the account to vhich asountsvere capitaliaed during the years listing asaunts inaccount 107, Construction Mark In Progresse first.Shav in colusn (f) the asaunts related to the accountcharged In colusn (e). Shov in calusn (g) the totalunasort I aed accusulat Ion of costs of pro jectsi Thetotal of colusn (g) vill equal the balance in account188e Research and Oevelapsent Expenditurese autstand-Ing at the end of the year.

3,8>3Z,6,000

107 u,jingo

10

11

13

14

15

16

17

18

19

20'1

22'3

24

2526

27

29

30

3132

'3

34

35

36

378

P~gsao

4484 K

ig,8688,545

~42 7~)00

Rev 5 73

FLORIDA PO|dcR 6 LIGHT CCLfPAÃY Yoot d~ oocaeket sl, l9 66

CHARADES FOR PROFESSIONAL SERVICES (CONTIHUEQ)

(d) Charges :or tne year and account chazged-

Account Ho.107 ~ 1

242

262923

Amount5 1,317, 783. 25

TitLe oE AccountConstruction Work in ProgressHf.scellaneous Current and Accrued

Liabilities - Contractors'etentions 55,030.00PubLic Personal Injury - Legal Expenses 565.60Oucslde Services Ssmloyed - Other chan LeSal 2 012.37

Total 51,375,391. 22

Nane and AddressAud~loco.

H '. llL701 ALfred i. du Pont Building."eia2ai, Flozida 33131

Total Char es Eoz YearAccouat Amount

242 $ 23 9200.00«aincenance Order. Clearina 5 500.00

5 28,700.00

Bf.shropoic/Creen/Fielden, Inc ~

336L S. M. 3rd AvenueNia2ai, Floz'da 33L45

LethalScott, !fcCazthy, Steel, Hector 6 DavisL414 First 1"ationaL Bank BuiLdingHia2ef..".-Lozida 3313 L

Reid 6 P"..iestTea Rectoz StreetNe~ York, Ne~ York ,L0006

913)916)930)

923'928

923

$ 1315438.45

5 L06 9629.075 580.00

$ 112,209.07

S 68,315.25

354-A

-C343

~,~~ . FLORIDA POMgl 6 LIGHT COlfPANY

CHARCES FOR PROFESSIONAL SERVICES (CONTINUED)

(d) Charges for the year and account charged:

Yeech ee4e4 oeceenf999 31 t9 6

Account fto.107 ~ 1

242

Title of AccountConstruction Work in ProgressMiscellaneous Current and Accrued

Liahiiities - Contractors'etentionsOutside Services Employed - Other than Legal

Total

eenune$ 4,391, 213

219,S5027 920

$ 496389983

Total Char es for YearNa222e and Addr ss

Adve rti sineBishropic/Creen/Fielden,, Inc.3361 S. V. 3rd AvenueMiami, Florida

33145'eal

Scott, HcCarthy, Stee1., Hector 6 Davis1414 First National Bank Building"iiami9 Florida 33131

*eeeune

913

923928

Aenune

$ 113 9539

130, 741~13 42

$ 1449 169

d ~ PriestTer Rector St"eetNe~ York, Ne~ York 10006

923 $ 529901ffafnn nanna 0ede= - 01eanfn$ 13 000

$ $ 7,901

354-AC344

FLORIDA PO~ & LICHT COMPANY g~~o ~ gi ip 68

CHARGES FOR PROFESSIONAL SKLVICES (CONTINUED)

(d) Charges for the year and account charged:

Account No. Title of AccountL07.L Construction Work in Progress242 Miscellaneous Current and Accrued

Liabilities Contractors 'ctentionsTotal

Anaunt$3,742,403

137 475$3,879,878

Total Char cs foz YearName and Addzess

Advert i sineBishropic/Green/Fielden, Inc.3361 S. W. 3rd AvenueMiami, F1orida 33145

Aataunt

913

Ataunt

41789341

~Audi ttnHaskins & SellsL701 Alf.ed 1." duPoat BuildingMiami, Florida 33131

242251

S 2396009 750

$ 33,350

Consultant (Coastal Susinass SS Civ4sion)S.t Snttt

River Shores Apartment B 4102970 N. E. 16 A~enue-Foz- Lauderdale, Flozida 33307

S 27,000

Southern Nuclear Engineering, Iac.P. 0. Box 10Dunedin, Florida 33528

Construction Work ia Pzogress 4 79,144- Eagineering Orders

F inane ia 1

L. (a) Bankers Trust Company, 16 Wall Street, Nei York, Ne~ York

Anount$68, 119

20 710$ 88,829

(b) & (c) Services as Testee ia connection vith the administration of 1stMoz gape and Deed of Trust dated January 1, 1944, Regist ar for LstMortgage Bonds, aad Interest Paying Agent

Account No. Title of Account930 Miscellaneous Geaeral Expenses251 Unamortized Premium on Debt

(a) Hozgaa Guazanty Trust Company, 30 West Broaduay9 Ncv York, New York

(b) & (c) Services as Stock Transfer Agent, Dividend Paying Agent, andPension Fuad Trustee

Account No.926930

Title of AccountEmployee WcLfare KxpcnscsMiscellaneous Genezal Expenses

Antont5 45,258

95 049$ 140 9307

(Cont iaucd)354 A C345

9099049 rt. FLORIDA PO4ER, 6 LICHT COHPA4lY, Y0or 9494tr4t cocrr4brr 1t, lf68

CHARCES FOR PROFESSIONAL SERVICES (CONTQJUED)

~Le alScott, HcCazthy, Steel, Hector 6 Oavis1414 Fi"st National Bank BuildingMiami, Florida 33131

Reid & PriestTMo Rector StreetNew York, Ne~ York 10006

923928

923251

$ 125,6168 693

$ 134,313

$ 64,62230 000

6 94,622

Fulbright, Crooker, Freetttan, Bates 6 Jaworskf,Bank oE the Southwest BuildingHouston, Texas 77002 ~

$ 31,500

354-B

C346

~~ a....HQHZDA. 0|9~. 82. LXGHT COMPANY, Yger ~ Oacgsket 5 le t 0.'vg

me~ WR CUZSZO"= «WOZmSZ0NAL AND aZZZ C0NSULTArZrZ SmVXCZS (COmZruZD)

~we ~m (Cont'd)

(b) 4 (c) ~~ "eM~, procuremxt and const~tion of Sanford Unit,<4 forwhi ch Mid-Va3ley vas paid or vt1l be paid a total of )4,610,000.

Acccu tZcar er

107.1242

Title of AccountCons ruc.ion 'stored in ProgressMiscellaneous Cu ent and. Ace~ed Liabilities-

Contract or Ret entionsTotal

592O v 759

48 4613~9v22O

2 ec'-'~='.-I

(a) Vach~~ Cor««ation, P. 0., Hcx 4093, R.aad., «~mrida 33101

(o) 8c (c) Sec~".y services rendered during vorh stouuage covering Company'sentire area. of operations and other security services dm~ the ye

Accol'~tgasser Title of Account

923 Ocsside services esgiayed - caser vvsc legal gl,i2~37Leall. la) Yses ss, Osecrce 2 Eulice, 1530 Ee<esge Life gcdlddrg, J'scksavrvtvV.e,

'PM da

(b) 9~ (c) Legal se rLces ~~ research, study, confermces and courtappeases regar~ City of Qainesvtlle v. lorida Paver 8s Light Company.~»eg on fee basis ~.AccountHmher Title of Account

923 Oceside services. ecgvlared - legal

(a.) Rei" 5 ~est, TMo Rector Street, New York, E. Y. 10006

$19,064

('o) 8s (c) Legal and professional services including borh on FLorida gasrates5 ZW (J'urisdiction), FLorida gas c~i&cate mt er, state regu-~mtory statue, general insurance natty and other general nat ers.Paid on retainer plus fee basis.

Account|OVvsr

707923251

Title of AccountHLLntenance 0rder - ClearingQutxLde services employed - legalUn33a3o~zed P "eazLu3a on Debt

Total

Scvvccc$ 15,OOO

40,576~K470,576

(a.) Mershon, Sa3gyer, Johnson, Dunwoody 5 Cole, 1600:irst National Bank.3ui~, Miaa3i, . lorida 33131

(b) a (c) Legal and. prof ssional se Bees or c~™ and othe general legalvarh c" a ee basis.

(c~w~~)

C347

ZEORZDA ~ 8s ZZGR2 COMPAHY Yady ended Oaddedsee li, 1%.69

CMGW "OR OUZSXM H30PZSXOllAL AiG) OZZIE COllSULTATXVZ SZtVXCZS (COHTZKZD)

Leaa~ (Cont '6)

AccauntNiobe Title of Account~2 ~iurdes !k Daesges deserve

923 Outsid,e seduces eanlayei - LegalTotal

l. (a) Scott Mc ~ Steel Zector 8c GaWs, Ll'l4 P~~st National Bank3uiLLSag, Mxsx3i, H.orida 33131

Annunte17,117

4.

$2, 101

(b) 8e (c) LegaL a@6 professional services on retention as ca~rate attorneys

Accountgunne

923928

Title of Account(hxtsMe seduces mnlayM - LegalRegulatory commission emense

Total

$178,L15

Pub~~c Relations* ",ee .'.8

(b) 8c (c) Public relations wert on a fee basis.

AccauntBanner Title ox Account

923 Outside services etelayed - ether than legalAmaunt~33,CCO

1. (a) Zaah Heye Associates, Xnc., Penthouse, M7 Lincoln Boa4, 1 bmrL 3each,33139

(b) 5 (c) Public x ~7 tions ver on a fee basis-v

Accountguah 8 TitLe of'ccount

923 Outside set"vices esalayed - ether than legalAnentyG,OOO

Weather ForecastL. a ~tern AirLines, Xnc., Mhuai Xnternational Airport, Miami, PLorida

(b) 5 (c) 7h7eather forcast~ services an>i oue atianal research inclur&nginformation on thule storms, ~~~ sees, h~canes, saeci Lcteme~tures, ant general temperatures ant veather caruKtions.

Accountgunner TitLe of Account

923 Outside se~ces eealayed - ether than legalAaau"-t$3~92 I

Conti ~zM)354-P

C348

.LQEKQA. ~ 8s L'EGBT CCMPAHX Yeech ee4el Oeteeket 31> 19....69 ~

CWZmS am OUTS'onSSZomZ, AHD mZa COaSar.muZVZ aZVZC.S (ComrnZO)

Consultant (Cont'4)

John H. Stevenson 8o Associates610 Gulf Sta.es 3ui~D~~, Texas 75201

Z. C. St~2231 S. V. 2021 St eetMismi, "Iorida

Daniel P. Sullivan622 3iscapne EzLl~~gMiszd.,: Iorida 33130

Oscar V~»730 S. V. 39th Court

w~r da 33134

Dr. Morton 3. Vfe~msteinDivision of Zaclear Y~c~mediversi y of Mimed. School of F~cimeMiami, ~~daJ. St~g VeiP. 0. 3cx 882c te itsy ~~~r da

Dr. Charles 3. Mur'.xLaS~~ Coikege

'9 4

~~ A..Yurt, Zr.P. 0. Drome 340Sta-.M, ~~~ da

921

3g500

1,000

~>039

g,3/7

-'~950

2,016

~iZ 'sn V C~ell221 E. Silver ~~s 3eQevard.Ocala, ".Ior'da

Cons~ Zc Pcwe1L1900 >esca e Center RNs~~"AtIanta, Geo~c a 30303

Dickens, Graham, Mille.r, Mshorne»8a Linn

~. 0. W ydZT2LLAML8seeg Iox da 32303

~ ~ Le 3~re329 St. uo~ AvenuePaLatM, ~mrida

L,OCO

1,2CO

9,870

4,533 .

(C~inu d)

C350

""XDHZDA PINER 8s LI~ CCHPAiVI Teer eeetol Ooceeaber 0l, lf

C.mamS ~ CUZSZrZ raonSSXormZ A??D ~ COmn.xaZZVZ SZZVXC S (COmZZZZ)

~ra. (Cont d,)

.Lmaaiag, 0'Bryan 8e ~mam~P. 0. Drave 4187: t. La~~e, Lo&da

333'reen

5 StrasseP. 0. 3cac 5566Day dna 3esch, PIor'da 3'cdiswrence Zanier8640 S. W. 89th AvenueHiemal, » Lo&da 33143

~Ter 8s P~"~te 601, 1CO Siscapne Rnxlevard<'aud., ~da 33132

Bossy Eo~ 0 Coz J2810 "-. Ca}mlitt ark, 3~~ard: ~. Emderdale, Pwr'da 333C6

Z. 2m ~eroer1495 Heritor Ci~g Houllvrard"-m, Goalie, Lorlda 32935

Sanahe" DR&ms 5 K'"221 CentsTallshassee, ~mH da 3230L

Hay 3. SnaoaL710 H Str et, H. V.Was~on, D. C. 2CCC6

Stone, 3ittel, Ledger, 3Lass8c Cor

4CO C'ty National Zeal 3ldg.25 Vest ~~lier StreetK'snL, zeldaMichael Tobe1099 Ponce De Leca 3c~~Coral Gahles, .".Lo~ da

~~IL 8s W a&aeIL12 8s 14 DeSota AvenueArcad" a, ~~ldaUochmch, Vga~ 0 Upc?z~W

Range 3mb 3uL~lSt. Ampxs ~

~mazda

923

.',371

1,880

625

8,155

2,625

2,880

6,820

3,3CO

3,800

(Cont~d)

C351

~ Il' 0l t'R ~ I

~ ~ 'I ~ . ~ A I ~ ~ 0 OO ~I ~ '

t4 'I

et ~ ~

~ 'l 1 ~ 1 ~ ~ ~ ~ ~ ~

0 ~ ~ ~ ~ IO ~ ~ ~ 0 tll~ ~ 0 ~ I ~tile ~ ~ ~

0 ~ ~ ~ ' ettll~ ~ ~ II

0 ~ I~

~III~

~ ~. ~ lee 0 ~

~ ~ I~ I ~ 0 ~ IO

0 ~ ' ~ ~ ~ ~ eo 0 ~ 0 ~ - J

4 ~ ~

~ ~

~ ~ ~ ~ '

elllle ~ It ~ ~ ~

el ~ I~

I 0 ~ 4 4

~ N

~ ~ ~ ~

0 I~

~ Ilt~

0 ~ 'e ~ 0 ~ ~ ~ 0

0 N I~ 0 NO

na

1 ~ - ~ Ittt ao 4 4 ~I 0 ~ ~ Qll 0 ' ~ el ~ ~ 4 ~ I~ ~ ~ ~ I~

~ ~ 4 ~ el ~ I~ ~ I ~ ~ ~ ol ~ et ~ ~

0 ~ 4 ~ ~

0 ~ I~

4 tel ~

~ ~

04 ' ~ ~

Dlltte ~ t ~

I ~ 0 ~ 4

~ ~ ~

I~ ~ ~ ~- 0 ~ ~ ~ 4 'l ~ t 4 ~ I' ~

~ ~ .

~ ~

~ 0

0 ~ I ~ Itti '

~ 0 OI4

~ 0 ~

0 ~ ~ ~ 0 lll~ ' Il'

OI ~

little 0 0 ON I ~ 0 ~ I~

~ ~ QTI\I~ 0 ~

~ ~ ~ ~ 0 ~ ~ 4 ~ 'tm ~ ~ ~ ~ 4

0 ~ ~ ~ A ~

~ ~ ' ~ ~ ellll~ 'Q ' ' 4 ~

0 II t ~ 4 Qt ~ 0 ~

e ~

e ~ I~

l Ottee a 0 0 I~ ~to IO

~ I ~ Qlleo 0 ~

~ V

~ tt4 0 ~

~ I 0 ~ ~ ', ~ 1 ~ ~

4 ~ ~ 0 ~ ol ~ ~ 0 ~ et ~ ~ 0 ~

0 ~ ~ ~

~ 40 ' ll

~ ~ 1 ~ I 5 1 0 0 ~ '

0 ~

0 I~

~0 ~

~ . ~ Dll00 0 ~

~ ~ I I ~.0 I~

~ ~

0 ~ ~ ~ 0lit0 ' ~ ~ '

0

0 . ~ ~ l ~

~ ~ ~ 0 ' ~ ~ ~ ~ ~ ~ ~ 0 ~ ~ ~ '

~ ~ ~ 0 ~ ~ ~ 0

~ ~ ' II ~ 0 0 ~ ~ I ~ ~ ~ ~

~ W ~

0 ~

~l0~ 0 IO tl0 II~

~ . ~ Dl0l0 0 ~ ~ ~

~ ~ ~ ~I ~ ~ ~ ~

~0 ~ ~ ~ S, ~ ~ I0

00 ~

~ ~ 0 ~

0 ~

~ ~ . 0 ~ ~ 00 0 ~

~ I~

~I~ ~

~ ~. ~ Qlltl~ 0 ~

0 ~ ~ I~ .0 ~

~ ~ 0 ~

~ ~ ~ ~ ~ ~ 0 ~ 0 ~ ~ '~ 0 '

~ ~ 0 ~

~ IIII~

~ I ~ Ql I~ IO 0 ~

0 II I ~ 0 ~

0 ~ ~ ~

~ ~ 00 0 0 ~

~ 0 ~ I~ ~ ~ 0 0 I ~ ~

~I 0 ~ ~ ~ ~ I ~ ~ ~ ~ 0 ~ ~ ' 0 ~

\ 0 0 0 ~ 0 . \ 0 ~

0 I~

~ Ill@

~ ~ ~

0 ~ ~ ~ 0

NI~ ~ '

0 0

~ II I~ 0 ~

~ ~0 ~ 0

0 ~

hanual Report ot.7PWVA.V~@..~.~Z C.os%................. """"~~~~~~~ CHARGES FOR OUPHE PROFESSIONAL AND O'IHER CGNSULTA'GVE SERVlCES (COHT D)

is

Jack Shatter626 N. W. 6th AvenueMf.saxL, FIorida 33l23

Acaaaat

930 683

Benito and Associates3535 1Y. Cocoa BIvd.Cidea Park O~ce B~cKagCocoa, Florida

Kenneth Jackson5 Venetian DriveDelrap'each, PIorida

James W. Junkin, Jr.Snite 304IMBrickeII Aveme~xL, Florida 33131

Marion, Baber, P$ 1aga, Zaisr~,and SneIZ,

230 Ropa1 PaIm WayPain Beach, PIorida, 3348)

107932

107.1

6,12415'>139.

6,485

CansnItant

Adair and.Brady'.

O. Bax 967Lake Worth, PIorida 33460

Martin AIIard.105 TaIIvaod RoadJacksonville Beach, Plorida 32050

John M. Baiar7425 S.F. 34th TerraceMiami, P3.orida 33155

Bil3. Bayerc/a Harris, Buggelin, and, Brumby, Enc.3CO Biscayne B1vd,. W~Mia1EL y PIorida

James L. Beirdarf and Associates1706 S. D~e Avezme

era Beach, ZIori

3.07

107'30

2~552

I,I25

1,0CO

1,200

4,637

ContinuedC354 ~ (l2 70)

~ 4II ~ ttell ~ t

~ ~ 1 ~ . ~ 4 > ~ ~ ~ Dl ~ I ~ I'

~ ~ ~ ~ 01 ~ ~ 0 ~ l ~ l~ a ll~

~ ~

~ ~

~ ~ ~ ~

~ ~ 0 ~ ~ ~

' ~ ~

0 ~ 0 ~

~ 0 ~ ~

0 0 ~ ~ ~ ~

0 ~ ~ll ' ~

QO w at ~

~ 1

0 0

al

~l~ al ~ ~ ~ or 0 ~ ~

~ ~

~ ' ~ '

~ 0 ~ ~ ~ 01 ~ 0

~ l ~ ~ l

~l 0 ~

~ 0 ~ ~ ~ 04 ~

'0 0

ala ~ ~

0 0

~ l ~

al ~

~ ~

~ ~ t ~

~ '

I ' .

~ al ~

~ 0 ~ ~

~ 0

~ 0 ~ll00 ~

~ ~ ~ ~

al ~ ~O

~ I ~ ~ ' ~ ot ~~ ~

~ al0 ~

0 ~

'I~ ~ ~

0 00 0 ~ 0 ~

ll~ ~

0 X ~ ~ 1 ~ ~ W > ~ ~ ~ l5 JO

0 ~ ~ 0 ~ ~ ~ 0 I~ 0

~ ~ ~ ~ 0 ~ ~ ~0 ~~ ~0 ~

~ ~ I~ 0 ~

~ ~ 0 ~ ~

0 ~

~ - ~ ~ 0 0

~ os 0

I .q 0 ~ . 0 . ~ sl ~ ~ ~

~ ~ 0 ~

~ ~ 1 4 ~ OQ'

~

HO 0 ~

0 ~ ' ' I IH '

~ ~ 0 OIO ~ ' ~

~ ~ ole ~ ~ 0

~ 0

0 sl ~ 0 ~ I~ 0 ~ ~ ~

~ ~ I~ 0 ~ ' ~ ~ ~ 000 ~I', I ~ ~

110 0 ~

0 ~ ~ ~ ~

~ 0 ~

~ 0 OS, 000 ~

~ 0 ~ ~ 0 ~ 0 0 ~l

~ ~ ~ I~ I ~ 0 ~ ~

ol~ 001oo ~ ~

OIO ~ ' ~ ~

~ HS

I ~ Olos ~ ~ ~ ~ ~ ~ O ~ l ~ ~ I ~ 0 ~~ ~ 0

~ ~ ~ ~ ~

&0 0 4 I~

~ 111 ~

0

0 ~

~ ~

00 ~ DO ~~ ~ ~

~ ~ 110 ol ~

0 ~ BIO ~

t

Annual Report of. FLORIDA POt'21R 8s XZGEV COMPANY ...,, . ~ ~ . ~ ~ ~, ~ ~ ~ .Year cndcci December 31 19 7 ~

CHARGES FOR OUTSIDE PIcOFESSIONAL AND O'IHER CONSUI TA'IIVE SERVlCES

1. Rcport the iafoanatioa specised below for ailcharges made chdng the year iaciuded in Zay account

(including plant accounts) for outside consultadve and

other pcofeszional services; such as services ccacemingrate, management, constmctioa, cagiaeedag, n search.Snanciai, valuation, legal, accountiag, pucchasin~advertising, labor reladoas, 2nd public relations, tendered

the cespoadeat uader wattca or oral acrcmgemsnte for%teach aggtegate paymrata dtlriag Che year ta aay Cnlperee

tion, paltaecsidp, orgaaizatioa of aay khan or Lncavidual

(ocher thmc for services as aa employee or for paymcatsmade for medical 2nd related selviccs) Zmounted to $5,000

ia the case of a Class B company or $10,000 ia the case0! a Class A company lncduchag paymcmts fot legisladveservices ezccpt those which should be cepocted ia Account

426,4e Ezpcncktaces for Certain Civic, Political 2nd

Rciatad Actividem(a) Nano aad adchess of person or ocganization lendcriag

(b) description of scnvices ceceived dudag year 2nd pco

j ect or case to which services telstar(c) basis of charges, r

(d) total charges for the year detailing utility dcpactmeat

and account chacgecL

2. For aggregate paymeats to any one incgvichs4

gtouP or PactnecsidPS by Class A comPanies of less than

$ 10,000 aad in the anount of $600 or more 2nd aggcegate

paymeats by Class B companies of less than $5,000 aad

ia the amount of $600 or mole, there shall be cepocted the

name of the payee, the pcedomincact aature of the servicesperformed and the amount ofpayment.

3. For aay such services which are of a continuingnatuce give date aad term of coatract 2nd date of CZm

mission authodzatioa, if contract ceceived Commissioa

appcnvaL4 Desigaataassociated companies.

1

2

3

5

6

7

8

9

10

ll12

13

14

15

16

li18

19

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

3j38

39

41

42

9139ZL916

Title of AccountAdvertising ExpenseOffice Supplies and, RrpensesMLsc~aneaus Sa1es Expenses

Tata1

A1lsSIEC

450>! 09951

~li339

hitect

(a,) Robert C. Abele, 4Q S. Di3cie Highway, Miand., Florida 33146

(b) 85 (c) Architectural services including the completion of Schematics,e

AccountEesaes Title of Account

107 Cdssesseeles trol}t C11 P'seczessAmotnrt~29, 250

1. (a) Rader and Associates, First National BanIc. Building, Miami, Florida

(b) 5 (c) Architectlxral and Zhgineertug services in connection withet~et lighting design.

15805885902629S53

(Contintxed)

Title of AccountConstruction Warjf. In ProgressOperation Supervision 5 ~hgineeringMiscellaneous Distribution ~nsesMaintenance Supervisian 5 Zhgineering~uries and Damages ReservesOutside Services unplayed

Total

Amount$W5,937

aa,956

10,1001,7T?

4~22

dvertisa Bishanric/GreenjPielden, Inc. 3361 S. W. 3rd Avenue, Miami, Florida

(b) Ea (c) Advertising services includ:Kng preparation, scheduling, and,production of al1 advertising through various media. Bil1ed onregular agency fee (lg) for space and time used. plus productioncasts ~

C357—Rev. (12 70)

~ El ' Dl 'tf ~

~Q '%M ~ ~ g s ~ ~

0 ~ ~ ~ o ~ ~ ~

~ I

~ ~ ~ 0 ~ ~ 0 ~ 0 ~ 0 ~ 0 0

0 ~

0 ~ 0 0 ~

~ - ~ ~ 0 ~

0 0 ~ INlI ~ ~ ~ ~

~ 0

I~ ~ ~ ~ ~

~ ~

~ ' ~ ~ ~ ~ I ~ ~

~ ~ ~ ~

0

0 ~ 0 ~ ~0 ~ ~

~ II~ 0 ~

0 - ~ ~ = ~ ~ t Nl ~ ~ ~'I

I ~ ~ 0

~ ~ 0 ~ ~ ~ ~ 0 ~

~ ~ 0 ~ ~ ~ ~ ~ ~ ~

~ ~ ~ lf0 ~ N ' ' ' ~ ~ ~ 0 ~ 0

~ ~

N ~ 0 ~ N 0 ~

0 ~ I0 0 ~

~ ~ 0 ~ ~ ~ Df0 ~ '0-~ ~

~ ~ ~ ~ ~ ~ 0 ~

0 ~ 0

Nl ~ 0 ~ N 0 ~

5 NI~ 0 ~

~ 0 ~

~ ~ ~ I~

~ ~ ~ ~ ~ ~ I~ 0 ~ ~ ~ 0 0 ~ ~ ~ ~

~ ~ ~ 0 ~

~ ~

I IN ~

: ~ ~ l NI ~

0 f ~ ll0 I~

~ 0

~ ' ~ 0 0 ~ t ~ 0

~ 0 ~ ~ 0 ~

~ ~ ~ Ill ~ ~ ~ 0 ~ ~ 1 N 0 ~ ~ ~ ~

~ ~

0 ~

~ 0 ~ ~ ~ N 0 ~

~ - ~ QIIII0 0 ~

~ - ~ ~ ~ - ~ ~ ~ ~

0 ~ 0 S 0 ~ 0 ~

~ 0 ~ '~ 0

~ lI';. C.'ll ~ l 1

Ql K ~ '

e ~ ~ ~ ~ ~ H e ~

~ ~ e ~ ~ ~ ~ ~

~ ~'

~ ~ ~ e '

ee ~

h 'e

He::- ~ ~ '~ ~ t ~

~ ~e ~ ~ e

e ~

ll e ~ : ~ -; ~

N ~ ~ tOee ~

ale

~ tl ' ~ ~ ~

~ ~ ~

~ e ~

~ 'le e ~

~ ~ ~ ~ e ~ ~ . 4I ~ ~

~ 0

~ ~ e ~ ~ 0 ~ e e ~

'l ' ~ e ~ ~ ~ ~ ~ ~ 0

Dll. ~ '

e ~

1 ~ ~ ~ elo

~l

e ~ A~

e ~ e ~

e ~ e ee

~ ~ '

e ~' e

e ~ 0 « ~ ~ ~

~ 0

e ~ ~ ~

e ~ ~ '

FLORIDA. POSER Ze LIKKCRONY Yeech eeelel Oece~ 0 l, l9.7.

CHARGES FOR OUTSIDE PROFESSIOHAL AHD OTHER CONSULTATIVE SERV1CES CONT'D

~Zeal (Cont 'd)

Parsed.an and. Ferro2IQ River StreetEachensack, H. Y. 07601

WiXLLam J. Roberts135 W. person StreetP. 0. Smc 1386TaUMassee, Fla. 32302

A J, Ryaa,, Jr.140 South Fed.eral $KghmgrDaILLa9 F1orida

A1an Z. Sword114 Forth F1a Ave.Demand., Fla. 32720

Walter A She13.ey, Attorney313 S Palmetto Ave.Daytona Beach, F1a. 32014

B. M. Spiegel4570 San Jose B1vd,.Jachaonv3QZ.e, Fla 32'7Spencer and TapXorSuite 1105Biscapne Bui1dingHhmd, Florida 33130

Fred ~ . Topper405 North Ocean 31'. Apt. 1607Polayano Beach, F1a 33062

Upchurch, Upchurch, 8s Qpchurchexchange Bank 3ui1dingSt. Augustine, F1a.

Sumaers WardenSuite 2R IZT Budding300 Sevi:3'venneCoral Gab1es, ZXa. 33134

Account

107

455

Total

1,610

4,375

2,100

2,451

2,184

1>579

Radio Announcer

EXrby Brach@7740 S ~ W

33143

Bob Lcm4301 S. W. X6 StreetHhmd,, F1orida

{Contira~i)

i 913

— C36l-

8,434

&TO

I

A»~1 R~«f ~~ .HSER 82 L'tgKP COMPASS....,............, ......ye ended Decanber 31c 19 ~ 7~

CHARGES FOR OUTStDE PROFESStONAL AND O'IHER CONSULTA'11VE SERVlCES

1. Report the infocmadon specised below for allmade dnring the year included in any account

(including plant accounts) for outside consultative 2nd

ocher professional services, such as services concerningrate, managancnt, coasbuctfoa, engineeang, ~arcic,6aaacial, valuation, legal, accouating, pucchasing,advercisfng, labor celacioas, and public celadonsc cendeced

the respondeat under writtcn or oral acrangannnt, forwhich aggcegate paymeats dcring the year to any cocpoca

tioa, pactne~ ocgccaisadoa of aay kind, or incRvidttal

(other than for secvices as an employee or for paymeatsmade for mecKcai acd celated services) anouated to $5,000in the case of a Chuas B compaay or $10,000 in the caseof a Class A cocnpaay, iaclucSng paymcats for legislativeservices except those which should be cepocted ia Accouat426.4, Expea4tuces for Ccctahc Civic Political and

Related hcthithccu(a) Nacne cacd access of person or ocgacdzatioa cendaring

(b) description of services ceccived dudng year and pco.

ject or case to which services relate,(c) basis of chacges,

(d) total chacges for the year detaillag utility depactment

and account cha egad.

2. For aggcegate payments to any oae individual,

gcoup or pactnecridpc by Chess A comtian of less thaa

$ 10,000 2nd in the anouat of $600 or more and aOpegate

paymeats by Class B companies of less chan $5,000 2nd

in the amount of $600 or more, thece shall be cepoctad the

ncane of the payee, the pcedocniaant natuce of the secvicespeel'armed and the amount of payment.

3. For any such services which ace of a conticauag

natuce give date and term of contract and date of Qxnmissioa authodsathncc if coatcact cecnived Cocnccissiocc

appcuvai4'esignate

assocria

te compacdes.

1

2

3

4

5

6

8

9

10

11

12

13

14

15

16

11

18

19

20

21

22

23

24

25

26

27

28

29

30

31

3233

34

35

36

31

38

39

41

42

Advertis1. a Bishopric and. Fielden, Xnc., Mead., Fla.

(b).-'82 (c) Various advertising services, lllediaadvertising, de ekopmnt and. production afcamroercials.

(a) Ei2~ byroom, m.fbi, Florim(b) 8e (c) Provide services as a radio annot3ncer.

ArchLtectura1a Fergusan~gaw', Schaster, Xnc., Coral

Gahles, Florida(b) a (c) Servic s far Perrine S~ce Cent~.

1 . a) Sanders 8 Thamas, Xnc., Pattstcnfn, Pa.b) 5 (c) Architectural services in developing

staahaxd. floor plans axxL site lapaahs.

Audit1. a Hssfefus and. Sells, KiamL, Florida

(b) 8s (c) Professional services on rate case,emuxLnatian of financial statemeats, servicesconnected Mth sales cd.'ecurities, preparationof a fi1)ancial selllinar training coarse.

Consultantstc * * *.(b) a (c) Services as Zaak appraisers.

1. (a) Conservation Consultants, Inc., PfQnletto,r lorica

(b) a (c) Zc~gi~ s~ in Port m tee ~ea,vagus atmo services.

1. (a) Dr. DonaM D. DmQcp, Fairfax, Va.(b) 5 (c) Report on issies, policies and devdhcp-

mats in energy research and develoament.Cantoned

— C362-

Acct. Zc.

9l3921930

1%2422142g.928930

'161,720. 3,2A

238fa2)5,222

419>079

$ 76,66630.5 069

4c 9>~735

f Y,OC047,OC0

3 25004,5oo

18,067~2000

$ 2,23926 6 2

Rave (12.7C

FMR3DA PCS's LIGHT COMPANY Yeech Ondel 02Ceeket Ol 19 +Acct. Na.

n ~iW (Com'd.)

( )(b) 8s (c) AcMzg as trustee far SM~ Pa@3. Debexxbures,

aud. abher financia1 services.

1 (a) Maxgan Gusranby Trust Ca.9 Hew Yark2 H.Y.(b) 5 (c) Service as Stock Transfer Ageab, Dividend.

Paging Ageab and. Pension Fuxd. Trustee.

921930

214926930

I2,418l~x,isa

7,560I24,345

1. (a) Hex York Stack Exchange, Hew'arh, Hew York(b) a (c) Fees far listing C~n St~ ~ Z~

Marbgage Bcmhs due 3.975.

$ 2,500~46 200

(a)(b)

Register aud. Transfer Co., Jersey City, H.J.8o (c) Services as regLrhzsr for Campaxqr's Camnon

and. Pref err'tacks.

6622,496

~,197Lel. a) AusXay, Ausley, Mc~n, McGehee 5 ClLreQlers,

Tallahassee, ~iorida(b) a (c) V~ia~ 3 ga. s~ces in r gard to Tu ~

Poinb generating plaxxb.

1 . a) Craner 8s Haber, W'ashtugbon, D.C.b) a (c) Vsriaus legs services on a retzdzxer basis.

(a) Fulbr~, Croo~ a Jawarsm, Houston, Twas(b) 8 (c) Lega3. services.

1. (a) Ze~, Black;, Black 82 Zeal, MismL, Florida(b) 5 (c) Legal services in reference to a cordem-

natian case»

l. (a) Lawenstein, Heeaasn 82 Reis, Mashingbon, D.C.(b) a (c) Various Iega1 servLces in regard to

Turkey Poixxb power planb.

(a) m ~, Heu.~, mes ~, S, Aves, J~~o~e,FI .(b) 5 (c) Professiaaa1 services renderecL in regard. to

qr Po9zrb siting and. peradttiag. Harbin PlsabMemaa3. palllxbion rules, thenaal stamhmds axxlwater use pcs?KLt»

107

~,0009 829

le~9~ 29

@4,9n

W9,375

$50,000

$62,342

$20,000lQ 207

@0,207

(a)(b)

Mathews, Osborne 5 Zhrlich, Jachsaavt31e, Florida8 (c) Varialls legal services rendered in regard.to caurb cases.

445,195

(Ccaxbtuned.) — C363—

(s,) Me~by, Steel, me<bar, and. Davis, mamL, alar(b) Zs (c) Legal and. professional services, on rebention

as corporate attorneys.

307

253.262923928

4 5239630

15,5645>770

I1,943 I

4,23.54I19298208,462

$P53,~

PLORIDA POWER 5 LZGHT COMPANY

S~~ (Cont'd)

(a) Z. C. Wat~, ~tm, n.~ida(b) 4 (c) Land. surve~g services remi~ to the

CCCp&QP'

Weather Forecasta Eastern Air1ines, K.and., P1orida

(b) 8s (c) Ccmyuter services~ weather forecastingservices ~

Zagr ended Oecaeker 0'le I9

Aaaa. Ka. Anauna

g3~18

ceo

2 - Vnasaa1 Hon- Xtems 1ess than ~ 000

C. S. CcxaaesM. James B.. LackeyEerbert S. S~irShor, PLttmsn, Paints 5 2rowbridge

46,3235,6898,z.g44,A(A

Bechhoef'er, Snags 5 Triype3pe, Dye, C1earp 5 ScottJohn M. NcCarhy

1tesesnahTnahaning 8e Tnsnsienas Eeseenah Inst&aha, Zna.

4,ops3 >7491~000

7,500

354-H- C365-

annual Report of vVO~.+PER. 8c LIGR2 CCKPA5Y o o .Year ended Decanbet 31, 1973.

CHARGES FOR OUTSIDE PMFESSIONAL AND 0'IHER CONSULTATIVE SERVICES

Report C«r infoenacion speciQed below for allcharges cuide duiag me year included ia any account

(including plant accouncs) for outside consultative and

ocher professionsl servcces, such as services concenung

rate, maaagcment, constructions rntpneeaag, n sesrche

5naaccal. valuaaon. legal, accnundn~ putchasin~adverccsing, labor raiadona, and public relations, nxtdared

the respondent undet vnitten or oral amstgrmsnt, for«hich aggregate payments dcring the year to sny cotporsnon, pannership, orgsnixadon of any kind, ot iadivichal(other thea for services as an employee or for paymcncs

made for medical std rdated services) noocxtted to $5,000

ia che csee of a Class 8 company or $ 10,000 in the aaeof a Class A comp4ary, including paymcats for legislativeservices except those «hich should be reported in Accounc

425.4, Expenditures fot Certain Civic, PoHticai aad

Related Accivieem(a) Name atd ackhess of person or orgsaizadon renderin

service+(b) description of services received chang year mtd pro

j ect or case to which services relate,(c) basis of chatges.(d), total charges for the year decailing utility dcpanmcnt

atd account chatgecL

2. For aggregate psymcncs to any one in4vidual.group or pann~p, by Class A compmues of less than

$ 10,000 and in the anouat of $500 or more and aggregatepayments by Class S companies of less than $5,000 andin the amount of $500 or more, there shall be reported Ihenaae of the payee, 5te predominant nature of the servicesperformed and the amouat ofpayment.

3. For any such services tvhich are of a continuingnaaue f$ve date and term of contract and date of Cbm

mission authodzsdon, if coatzscc received CommissionapprovaL

* Designate associated companies.

1

2

3

4

5

5

7

8

9

10

ll'2

13

14

15

15

17

18

19

J)21

22

23

24

25

25

27

28

29

30

31

32

33

34

35

35

3940

414'2

Advertisi1. a N. W. ~ 8s Son, Iac., Philadelphia,

Pennsylvania(b) 8s (c) Partici~tion in ELectric Ccaroanies

Advertising Program 1973.

(a) Ki ~ a I, ~, Florida(1) 5 (c) Provide services as a radio announcer

for "FLorida Stories" Program.

l. (a) ~homeric and Fielden, Inc.(b) 8c (c) Various advertising services, metLLa

advertising, deveLogneat aad Production ofcommercials.

Architectural1. a Fereadino, Grafton, Syillis, Caadela, Inc.,

Coral GaI3les, F3urida(3) cts (c) Architectural services re: North

Bade Sales Office, 5Kaad. Bistrict Custa)terService, aad Nev Office ~ding at S. W.

92 Avenue aad West Flagler Street.

(a) Sanders a nabs, Inc., Pottstcwn, Pa.(1) 5 (c) Architectural services in developing

standard floor plans aad site 15pcUts ~

Aud4 t1. a Has~ aad Sells, Miami, Kurida

(I3) 8 (c) Professional services on rate casesexaaliaation of finaacia3. statemeats andservices conaected )fith sales of securities.

( Continued)

Acct. No.

930

930

913921923926930

107923

181

242926928930186

$69,002

$19 r 080

@.57,I)33

7,026196

15 7C6$1R%15

$249,128

4875'95»97

$ 19,00010, COO

1CO,5003, CCO

10,8542,0007 000

c 152 «ls

Reve (12.70)

I CIRE',~ 8s LXGHT CCMPANY Ywr ended Oecss4ee aI, IV.I.4

Acct. No..Mneerimz (Cant'd)1. a riestinghause electric Corp., Pittsburgh, Pa.

(b) 8: (c) ~ineering services at Turkey Pointand start-up engineers for Turkey Point Units~3 85 A. Se~ce of nuc3.ear supply systems,engineer producing and reviewing the on sitestart-up for the i%SS and associated. systems.Personnel to investigate and supervisecar ection of cantsminatian af lube oil onreactor coolant pumps on Turkey Point Unit

Test npxipment specialist in egard torental af analog reactivity ccmputer.Zconamics Correspondence Caurse.

107524923'9Z.,5647,677

499~553

Pinsncial111a Beagle"s ~t Ca., ¹nr Yark, Nev York

(b) 8s (c) Acting as trustee far Mortgage andDeed af 'Zrust dated 1-1-44, UMerIIriting~ement for Public Utilities Reports.

l. (a) Plorida First iYational Bank of J'acksoaville,Jacksonville 5 Florida

(b) 8: (c) Acting as trustee for Mortgage andDeed of Trust dated 1-1~.

181921930

930

) 38,533

137,~82141775 9

$21,500

3.. (a) Sngan Guaranty Trust Co., ITev York, Eev York 214(b) 8c (c) Services as Stock Transfer Agent, Dividend. 926

Agent and Pension Pund ~stee. 930

$ 10,382I16,316I37 i~7o2

+~5 90

>maal~l. a)

(b)

3.. (a)

(b)

(a)

(b)

(a)

(b)

Aus3.ey, Aus3.ey, Me~en, McQehee 83 Carothers,Tallahassee, Plorida

8: (c) Legal services in regard to Seminole Siteat b~~in County, Villa~ Site at Manatee County,and various lega3. memorandums affecting allsites and coIIIpany in genera3.

Br~t, Dickens, Rumph, ~imsan 83 Mild.er,Tallahassee, r~rida

5 (c) Legal services in connection Wth Dade'CountyPollution Control Revenue Bonds and other matters,Burns, Middleton, Zarre3. 8 7aust, PaIm Beach,FLarida

83 (c) Legal services regarding variaus Isndpurchases.

Coble, McKinnan, Reynolds 8o Rothert, DaytonaBeach,: lorida

Ec (c) Legal services regarding Rotaler Corp.far Port Orange-Volusia Line.

3.07923

923181

@3,738~13 51

437,257

$ 88,72435 000

$~n3,72,

$105399

$10,275

(a) Cramer 8 saber, washington, D. C.(b) 8c (c) Various 3.egal services aa a retainer

basis.

f22,849

( Continued ) — C367-

Ywt esdo4 Oocee4or l l> l9.I3,

2 - Unnma1 Non-recur"in Ztems less than 410 CCO (Cont'd)Itlltllllt

Robert: A. ~H~8s ~Ee. Sng, Evans 8 ~altonHop'le, Gentry, Zones 5 Plannigan

6451.9522,l357>500

Harold P. Ger 9.sh 1,200

h~, ~ - .'a P,P, ~ '''„... ', "; 'CH,C .

'r... '

4'e'r .,, i5 p. Z'." jyrzr ' .~ i, ''W ', '4..;, ~

, CP,

z

k'\ ~I z

j'1 I

C1

J

'zr h w

I,/ Py jphll

~ z

h -h

Q,Q% hhh +) 4: b~hS$

~3i')»

'Yz)hz'Z

h

11

h

e$h

1i

k

, ihhh,'

1

.ICh

zr,1

t, 1%k

~ z

KV.

hh-'r

IZ

4

( I

''S '

C370—

Nfl » r ~

h

CRESPOIIDRI@.

THI5 MUST GE A REALLYIMPORTANT EX@BIT-THEY'VE

ASlcEO EVERYONE TO SEE IT..WONDER WHAT Il"5AIL

AGOUT '7,',»» .t

E

"B

'T,wg» Nr

'

thIIVE HEARN IT5 THE 6REATEST( 940-ALLAGCUT'-

A5'CZ&KFiYEA5Y'ANCIWHATIT CAN CO FOR ALLTHEFOLÃS WHO USE ELECTRIC CURRENT.

~(>~A»mph»

'»PM~w

g '.;:)FAN

»

»S,»

'»

»

I: -':.";Jt»

HOW OO YOU QO, LAOIES ANUCMNILEMEN./AYNAME IS JOHN GLAINE ANCI Z'M HERE .„'TOhTELI YOU AND SHOW- YOU ABOUTTHE'.lI7GNANCI

ELRTglCJTY-RNP.NSWER'NYv

QUESTIONS YOU MAYkfAVEON'HISIMPORTANT'UBJECT!

WB'RB lLLOF US USED TO MODERN CONVENIENCES.MO USED TO THEALTHATWE SCARC EI.Y REMEMBER

'THE. WORLD OF'JUST THIRTY'ElRS:lCOITHESE ARE:-r»'I y r SOME OF THE THINGS WE USED'THEN. TAKEl'

» LOOK»AHDREMEMBERTHATIH THOSE DAYS . »'Ih|',, THE AVERACE VSE PER AMERICANHOME:" WAS ABOUT I,000 KILOWATTHOURS A YEARI' j

» ~

'»Ce. » ~

'+~»I,

» tf I<t

i "Chl

»

, » v

~

$'

I ~

Q»»

» jfg

»h

j

:Ji

MY ELECTRIC GILLS HAVE.SURE/ACEFASEDlASSUME THAT,THE COST, OF ELECTRICITY.HAS'" "

GONEUP/YOU'E CERTAINLYUSIIIGAfCYTE

:BZCTRICITY(THANEVER BEFORE.GurhSI'ATI5TIC5 SHOW THAT%HE,UNITCOSTOPI; A'LOWATTHOUR OF ELECTRICITY

HAS'ACTUALLYGONE EWE5UBSTANTIAUY--'HILE

MOST OTHER CO5T-OF'UVING ITEMSHAVE CUMGED STEELY/ YOUR ELECTRIC»CQMPANY5 BEEN~ TO OO THI5 CUE

TO',IMPROVEDEQUIPMENT-APIO'GPTER .'PERATIC EFFICIENCY.( '.

~*'

.Ihhr»»v

jr .~»

I, ~ k\»'

4

' '+. PRESENT(~AYIAYERA6E HOME CONSUMPTION OF ELECTRICITl, ~ lE;~TAKIN.EXCBSPOP'$400 KILOWATTHOVRS ANNUALLY .PIVOT TO%i: v'"-: »SDT77MES ASNUCN'ASIBEFOREI~-."»h t. >~~~ ~ »v

(a»aC»»»»» (,gl

Ir(

» ~

»'I

h~ \»

I '„~»"ciZ'S .( '.

< n)»I

r(I~ ~

. ~ t'~

I I .to~~ „4~ ».. i', $T'. =.fi'~~-'. ' Q>y;,- 'gy- '<~'.;.I'>'..'.t .'.,'6»tPI~ IW4I»t CUSTOMCOeC4 ~ 3II MII~P~,gy~g,'I

- C371-

~ ~

n.');"

«

I

i 'i4's

ELECTRIQTY CAN EE GENERATED 8YSPIMNIN6 ANA5NET INSIDE A COPPER COIL.—THIS WAY.MOSTELECIRICALGENERATIN& EQUIPMENT IS.SIMIL/tR-. EXCEL KRTHE/IIETHOOGF

SPINNIN6 THE MAGNET«}

//c .// ~

? X/I/'w

c

1 /

««

/c

„.MOW'ITWAS MA?FS TVRM TO ASIC A OVESTIOM

THIS TAL?c'c AECUT ELECTRICITY-THEIIE'5ONE THING L DO%i UNDERSTAND. MOW

I5 ELECTRIQTY MADE~

~ S/.'ct

VHgRlk

IS9laLOR:IRC 4% OAS

cc

. THERE ARE TWO KAVOllWAYS.OF SVPPLYlMC EMEROT TOSPIN THATJLiCMET. MERE&'LLFLASH THEkl OM 4 «tSCREEH SO TOV CAH SEE THEkl FOR YOVRSELFI".

c

K4 ~ -g.

\ c'

~ I~t

c

*8c

Ic/(w''

9/'gy

„c t ~/5'... 'c ~ cc/

I/'«

4/cy /"w:c ~

~\ /

I,/ ~ ',,

t/. '

gl

/c"c

«

"IT-'S MY TVRPfMOWIAREM'TpEVSIMC VP' 'z, . '«~ c

. 'VCE OVAMTITIES'OP COAL AMD OIL lMTHE"'JQNVFACTVREOPE CTRIClTYI"

CIUE511ON. IR. RANE! 5EC'AUSE THEREJlJST'SHOVLDTHINKWATER IScCT EJVCVl5//EQDhO-~STHE QI~ . NI/G4L WATER FDWER

SOVez-SO WHv ISN'r'OMEETTHE DEMANDELECTRICITYMADEc'OR'ELEClRICITY,WHICH

~; FR+a Ir< "'- —.'eumEYERY'Ta. YEARSIACIUAILY,THECNLY

PRA&CFkWAYIS - ~

<".TINOUSH THEUSE

$ .g,b., ~~0~/~» j+/.g1956;, r~",:c...," .~ 4c

IC«'W ~V.

Z

, crcci

- ri.

",L

O QI

II,

~ C c, Q),

.:V,OYER4:.'OO,OOO;OOOT.i".iTONS c'-"'.

/

~ /

/I

c

c,,$~~„)) ~

LE

AU.'NDUSTRY HAS INCREASED ITS USE '.~, 'Of THESE FUELS! HERE'5 AN EXAMPLE'AS. „

FAR.A5 ELECTRICAI 'UTILITYCGVPANIES"'/c /"'r'r

~' 'RE'CONCERNED»

-'>,".i9?r.'33jaO,OOO TOHS.".--".;-

C/,«P C I/.I c«

i

c

I/~ QI"-c >

-WBI THEN-WON'TWE '

EXHAUSTOUR SUPPUE5-OF COALANDOIL'F WE-' .

KEEP CN USIH&- 50 NUQff'/

~ I

i//. WI

„.. ~)A,

1

c

!c.t~ c

.)

-. -s

~ IN'THE ES ELE

r/I«'IRK POR EEA

fUTURE",EUT ll'5CETIIN&MCRE .~<Itfg42 M(gE~5)~/1/cG TO 'TRANSPOIU'HESE FUELS:TU c

PLANTSITES EVERYWHHK AND'4","THATCCUlD

INCREASE'OSTS

3Q THE COI'ISLIhhER./ p~" "~~@.C~84i

EUTlHERE'IS'AN ANSWER TO THESE INCREASEDCOSTS ANDTHAT/ANSWERLlES INTHE USE OFhf/ C&%EiYEiISYIN THE C<NERATION OF ELECTRI".,CnVl: NUCLEAR ENERSY;mE MIRACPRODUCT

..OF THE SPUTTING OF",THE cc9TCHt/

i

3

c

~ ~ /c

- C372—

t

~

« I

rBE5T WAYTD EXPLAIN NUCLEAR ENERGY IS IN ig39> SCIENTISTS DI5COVERED THATVIHEN

A BRIEF HISICRYOF THE DIS~OF THEAIUhUC URANIUMAIOhlS WERE BOMBARDEDWITH NEUTIIOIIS... PREACTION. FIRST- THIS IS AN ATOM. ITS>MADE UP THE ATOMS SPUl INTU SIMALLERATUIliS AND ~ .;:4

EiVFA5YWAS RELEASED IN THE SPLITTING! .,OF THRE KINDS OF PARTICLES-PRO>YESJI/EF/7XCvMS'ND FJECTRGVS. THE ATOMSOF. AU. ELEMENTS HAVE DIFFERENI NUMEER5". OFTHESE PARTICLES IN THEIR MAKEUP.

>I

.H4 ~

P

~ ~

>>>>>»> »M>»»> ~ aeaaoc

~ 'l>R.>;«I

4>

*

«>

4 i«

w, .~ .s»

,V

«~

OVRIHC WORLD WAR 2, UHDER THE LEADERSHIP OP'" '"

,j 'r~g ITHE'CREAl SCIEHTIST'EHRICO FERMI, l SECRETi i '.~ ~ = COVERHMEHT PROJECT WAS LAVHCHED AT THE

> P UHIVERSITYOP CHICACO.OUR'RQJECl IS

..TO INVESFIGATE THE. POSSI BIUTYOF STARTING"'ANDCONTROLLINGA CHAIN REACllON IN

~'RANIUM!~HERES> a@MODE

WRAC'ACCT. 'Mj;VSEn~~'

« I'J/ 4jgi

~ l

!

5CIE

RECgISOHSLT,,

i'OH

DECEMBER 2, II>42, THE RODS WERE SLOWLYI. '. ',, .WITHDRAWH A PISS!OH CPQIH REACTIOH STlRTEO

;.'IHTHE VRlHIVM THEN STOPPED'AS THEr ~ "> COHTROL RODS WERE REPLACEDI"

EI'.>

.AT5'-IEEIRXERPAES'.

I~ IVR'..

SMYTHEPUBLIC'IDNT

KNOWANY

~>".n> p'

«>I

.'FTHIS--NOTFOR'NOTHER'2'.YEARS','f", CUR FIR51 NUCLEAR'.I>, ."

ACHIEVEMEhFP. A.;-.p',I':c > i6t&N//It'8P/M >

; THAT PRODUCED A ';.'s:~",9~ CONTROLLEDCHAIN> %> J>I

..REACllON WAS>THE,' 'KEYTHAT>'OPENED

=THE WAYTG'THF'5Q&P.

~KVE7'ad

. lSTRai@arr k

— C373—

~ ~

Z~ tl ISSIO;r «h

tCOAEtglr'.bat$tY@jertIO .,5lfCIDt94kC.;OPI KCYRbVfCIltIY$4tt QUIIKILICRHSSS p

r

',~.>„t" .IH'194$ Clkel CREAT NILESTONE IH NUCLEARg~)iihh+~ PROCRESS WITH THE ESrl BLISS EHT OP THE VrSrit-

i m '~ ~S ATONIC ENERCY CONkllSSIOH TO SUPERVISE'ALL ~

PEACETIME lPPLICATIOKS OF NUCLEAR ENERCY

'-'-",'- @Nlrb, rHeReweRerwoulSOROEYELop"'.'AGENTS.'HE SUBNARINE NAUTILUS, OVR

+;:. PIRST NUCLEAR POWERED HAYALVESSEL,BECANE OPERATIONAL THIS SANDIE,YElR

~ SAW THE PASSACE OP THE ATOIVC ENERGY~:., ACT WHICH PERJlITTED THE ELECTRIC

CONPANIES TO RESelRCH NUCLElRPOWERED CENERATINC EOVIPNENT.

i

r ~

. ~>Vh.

~i.Jl

. ir

r \-~ rh

K~~E

r

IBISI~jq$!i

ht lA

«1,~

r i«rC

Sr~$ .v.e~~

I"v(~ ~ ~

p 40

i

ri~. hht~r

j'g '~ ~ a

l-:=- --'hg W~A CI$r"

3IIIDES$8D0&gIRCEIIESbAI~P~

~a hSHIPP IN@PORT NUCI.EAR POWER STAT(ON"''..

SN ItPIIC r0$trr . PAP% 000 N CT'0 LSCTR ICAL KILOWATT.'CAPACW' m "s

XS. INEANTHAT-.'THEY USED '

tIS~&R'QtYE'RTO

. GENERATEFZRFfP/~THAT.FAR BACKP

Sr

4

i+~~'~PERHl PS YOV.'EWONOERIHO HOW COAIE ALI THIS',.

!-.:",:-, .„-'. i ~~~ RAPID PROCRESS, WITH-NUCLElRPVEL So:TRENENOOVSLY~~ ~'wrh EXPENSIYEI: WELL; IT'S NOT REALLYEXPENSIYE

AT'~~~,--.ALtrHOFWHEN YOV RelLISE THAT THE SNA'LLEST'I.

~wOP HUCLEAILPUEL DOES:A.LOHC,.LOHO,WAYI

L@0

I jcg4.

Q gi

~ «

'IITWA5 EXPERIhhENTALATTHAT

EARLYDATE, BUTNOWITS PRCVWIT5EIF iOO%! GTARTINGIN196> .

ANDCONTINUINGTHROUGH XKW,ANDINTOTHE'FUTURE, NUCLEARENERGY HAS BECOME CO~Y'.PRACTICALIN THE PROCUCTION OFELECIICITYl'Yi967. 16 NUCLEAR

GENERATING PLANT5 WERE OTING THROUGHOIJI «THE.

UNITED 5TATE5!

'.-9

I

tiS I

'.":It

'„ I q-j

„''I(j"I

L

S

,0 hr" 1

p

>c

M~

+$~q+t'~sw~ r~~i «g~+oQ+'st~i. 'h w~p +A,.Lgf'ygf'ifgttgtsrijs0+~q tt $ ~s+ r~r+<r~trggo iY «~o~>gr~8 (hq+j ~r~4~=t4~iyq; ~~ZyySI f:VI~4+j Q (bdjhgs~~Sc' ~ try~~

h ~

g ~

—C374—

~ '»r».\ ~

d,»

,,dlI:...,...'

i».'j

'ddl

~ I)'P\

'."AAO THERE ARC A LOT SORE ADrANTAOES Ta NUCLEAR', PUELI IT'S CLEAN IN USEI THCRC'S NO COIIBVSTIOH

~ A.r {P.$ » e

l) ~ r»d <IIrr ~ i»

i )4d

i" >

)

~ )

')'I)~

'»r) f

I

.;~,,fAHD OCT THIS»»THCRC ARC HO STORACC PROB ~

LEHS WMEH THIS WONDERFUL PUCLIS USED» IPLANTS HO LOHCER MUST STORE RESERVECOAL OR TANKS OP, Olt ~

' w,«w,y.'r .j»< .. »I':C

r 'rr ' -+<+STW ~

e,) „rrd»r

"c.<)e'r d» p

~»dd

d qadi.

'-) 'r""

Cg 'dl": y..

~ ~ ~

I,

,er I«-.j

~ A». c''"

» ) ~ ~ '. »,

"THERC ARE SEVERAL TTPCS OP REACTORS USED INNUCLEAR ~,CCHERATIHC PLAHTS CAS COOLEDI BOILIHCWATER, ',

, PRESSURIZED 'WATER AKOHC OTHERS, THREE OP THESE.REACTOR SYSTEMS ARC SHOIIH DIAORAJNATICALLTHERF'»rw

"'I

rl.(y

i'JL

r'

'». »Ir:r "

~) rj

ASP

maUSEZ T+5'XLme

F.~)@W%ge d Cd~ Id»d I"pkINddr~d'~Q '~jw'j"''rd'A)rr)»W»

p~rgg'I''',. p;~,, I,

gwrir

'"-QW$P~

< +,1'

.j g')" POSSILPUEL STEAM OCHCRATOR .

V )

~ ~

> ~PIetACrei-.>~"."e, -~4'e~d~>~'i" ~

~ )

P»»)»'~drer//P»»)dr»g'~r t ~ W r «~~ »~ e)dr)drd»C4$ IIPNIOP+)1(

Cuii&'VIUAVIE.„O~~amvahg'TItRODVCCD;MKZHLHVCCEIUI»4'.~

eSAECARRICLna.qaEC'I~~TIVLW~

TERAI'STEEVE'HERA&a

bfyeeklnt~CRTSWJ,TEKVITUXtE~IVCOACIIR,'

~ TO))THEIREAdCTOt,'TO'»IINDDUFNORCINEAk

.-"pzr~ ward%)' »~d»rd) hei i».)U"eAr»»gee@;»»«»r>»dr;e») g» drralgpp@y

dg)d)»»e)r 'd ())Id)gr».'$"'

T<~dg;M~«5~'~g draw" g ~ CACXQKCOOLVIOÃA'QOkrSOdN~

»,C

gd

r)

«2A)eP),4 :rS~ASe4~-'8'r)dt P E)~ r 4»,')e wr'Ied) I )+» «4» . »)»~ »I ~r),'fktpr. weP~Tg~& rX~>~

QP@

"'h"

. r~~-~,Tjw,„~tP>~~)', ~~q'r~j~M ',A w'jy,k~r-'r»>f~4'~~+~m'

C

s, ' - " .. ' 'd~+,'".~Qp(y rII»»Vr)edw.»" " Wg~~~~ 9 )» gIA„ed b') e

— C375—

«.C

&xi',

JgC'««

~

~«r )«

«mr> i«.«Ii.«

hhg. SLAINE,~'N MOST CA5ES FROMDCES THE WATER LAKES RIVERS ANgTHE

CCFAE FRCFA THATCONDENSES THE

"5TBVhE'~~%~)gcQQ~~

«

r

~ I0"THE RODS ARE.OROUPED TOCETIIER'TO FORk A:

«4; FUEL ASSEMBLY'H(CHLOOKS LIKE THIS«

I ~ ~ e

L~«a.i

wv ~ N V i «(I.'At"GOINGTO ANTICIPATE,YOURNEXl QUES-

pTION—..WHAT'HAPPENSWHEN THEFUEL IS U5ED.:. IJP~WELh" ALLOF I75: NEVER EXHAUSTEDATTHE ..-.SAMETIhhE. 'IHE FUEL RCOS IN«THE C94TER.OF THE>ASSEMBLYGIVECUF FIRST AND ROOS FROM-"«I~ROUTER'EGIONS ARE MOVED?N TURN".-'- .

~lRDS'HECENTER.,".

e '~i«C"'r i

~ L«A ~

IX ~

'p C«i

))i i «)'

C376—

ONE'HIHO I'D LIKE TO KNOW. HOW DOTHE ATOMS'ACTUALLYWORK IH A RE

'., ACTOR THAT'S USED TO MAKE'ELECTRICITYT~

SEE THIS GAOGET ?IERE 'F IT'5 CALIED'A~«qOCI. NOW, EACH ROD CONTAIN5

NUCLEAR FUEL IN THE FORM OF URANIUMOIOXIOE

), ~

«

: ~II) INTERSPERSED AMOHC THEPVELASSEMBLIES "-*~";)+.ARE CONTROL RODS, HHICH ACT AS 'BRAKES«:;,';f;

.= ') >i.'ON THE PISSIOH WHEN THE RODS'RE ALL .~". ~). )~=;.ii '«THE HAY It?, THF PISSION REACTION'STOPS) ~"-') .-~

I A ',jt'AS THE RODS ARE,PULLED UP JHE,FISSION«:.;„~~~+I

m ~

Ppg« I&~ ~ l)ll t" ~,"4

%')N';«'I

'«it«i p. '~A«p

I~<'

gP

«It). A gI«'A~+;g.

I«UBt'. '

i

„«p

l~ ~

- REACTOR VESSEL

SO THESE ARE THE THING5; YCIJRE GOING TO GEITHATGOON IN A NUQEAR YOUR WISH RIGHT NOW!GENERATING PLANT. I'0 -FLASH THE PICIUREOF,'URE UKE TO GET A'CX/R'FK4V7ON THE .

LOOKATONE/ 5CREEN; TOM!

~'

.t'«

'J

s «A

S{" 4 1':'

ih1

r

tv't -(~

rrt~» +f~NQgg5g$ -

S'

/

1 tt ~ eWt h'hit

SSS'S?',+(~'.

'. ~ 11r

,SS; .'Fl

I

S

~ -'< ~» 'littp&$~'4'P,

Sf

gk ~

h

\

W~

gr{~ '-''-":-JL. 1'.r "f>p

6 ~ h'' i ~ .'i

g'1

it

-' '~~:: "';i",",.o'No,',-.TYvo,'-'NUcLEA.'~g' '.-:,',@~''„",L'INITS- SENERAT; N "

. '- .- '.-.;".,:=-;:;-:. ~'A:LAhosT,-.TPY/C

-':":-'.",f'oL{T{.uvop';:ay~::3" -" '. ",;-:.,'.~;-';"; 8'.-'PcANi:.S]-C~ ' b.i

S

D .~AS~

g

: .::.-;THE;ERYs7AE E/k&'.;-,--,-,,'-;=:.-:,=WAArr,o|=:.,rLoziDz,:.:,:,::.;: ..'.;-:.„;-.

~+~~P~~-'--~'<~~,"".',.'." ".4?GUYED.:.CORPORATO¹~:=-...:,+-':".:-.;:,--j$-;",'

: "-"t".'-,-'-'.EWCFCGA'L;=,.Fl{SlED.'

C377—

sc ~ t

~ 1

'v

t:!;, t t tttgg

AOgh+'>

V ~M ~g

'1.6

' t

C ttt

~ '.

.>ttttAt

'

~ t CCmV

re - t." --, ". +V~gtfr

t

Jhow

tt ~

K

CC,

"', cia/

C ".

,' cr f,g

''r> '>br

t ',I

tt'l~-'... ~ '."', 't

}

— C378—

~"

| ~ » P~ )

THERE'5 SOMEIHIMI'0 LIKETO KNOW.) 00 NUCLEAR GEN-'RATIN&PLANTSHAVETO BE BUILTINAtrYR4R7/CUIT

LOCATION~.I

,i '~a~

t

'4

WELL,THE 5ITES MUSTBE APPROVED BY THEATCNICENERGY COMMISSION . INADDITION,THERE tfAS TOBE AN ABUNDANT5UPPLY

OF COOL WATERAVAILABIE.'UTTHE USE OF IIUCLEARFUEL FREES ELECTRIC

'OlmPANIESFROM SUCtfPRCBLEMS AS RESIDUE

015POSALAND THEHIGH'RAN5PORTATIONCOSTS

OF CONVENTIONALFUEL5!

„~f>pi%kttF

IVEGOT TO ASK MA'M,THERE'5 CONSIDER-THIS- IStTTTHERE AELYCE55 RADIATIONFROth

50 DANGER FROID SUCH A PLANTTHAN FRCt/I,RADIATIO)VIN THE THE RADIUMON THE DIALOF.". VICINITYOFA YOURWRISTWATCH! LETMENUCLEAR PLANTg . TEU.YOU A FEW THINGS

ABOUTTtfl5 RADIATIONBU5INESS

~;

~ r

*~ 'ji I

.JT'ftak»A ~

rr

~

AC

')

')I", .RADIATIONSlRE MADE'VP OF TNE PARTKLES" ."' )»'AND RAYS ClST OPF. BY THE CENTRALPlRT OP.

THE ATOMAS'IT SETTLES-INTOSHAPE.AFTER.SPlJTTlNO. lND THE THREE MAJOR FORMS OF

'<',RADIATIOHARE KHOffN:ASALPHA, BETA lND ''»

LPHk RADIATI HSQREjTINY,"PARTlCLES>~~),THAT)CAtr)BE'STOFFED BrEVE+'A'Fee.«MDAYERS,OFI PA PERP BET*RADIATlONSI~~X'~

'AR~DE'.VP?OPiELECTRONS PROM%!rm~,. >~RAOIDACTrvd~iofLYANacltrsasTo'P.'"

C~~w~$+~ESRBYIA":SHINsNEET;DP ALUMINUM'Mg4~~QQCAkUCA?RADfkTIONS-lR~IMICAJC. ZO'ÃJtAYSAHO."Q,

'I

4 s~~<~CAgB EgFF ECTIVELY)8CDCKEDJBY;LAYERS'OPfZAD~~; -"OR<OHCREXa;.IN)AuhHmCNCZaiHESE RAO!A'*-~~ '..„".f:,,''«TJ~E,'A'Cd ..ECrZVEirSNIECDED==.=e-" -'

i>~'S ):~))+)~" r + I„'>>'» 'gi~ ~

-..;«~~qO .

~ v )1 ~

I ~--

~ »C ki»

~ g ~

cceaae„AL'PHA PARTlCKES~~'~~„„„~<BETAPAILT!CEE+>

?m

UP'A QUESTION'VEHAP."y"„''LON&TIME./-

~ r ~ P,'4r.

«,

FOR»

gft)gl

THElerrOF MEASUREmENT OF aerATION IS CAUEDTHEAT/CLIEEAf;AND SClENCE. HAS'PROVED THATTHENORMAL BACKGROUND RADIATIGN.PRESENTIN.A ))VOCOEN HOUSE IS iiMILLfREMSPERYEAR„VIHEREAS'A NUCLEAR'PLAN|:ADD&Of)ILYMILLIREMlUTHE NORMALBACKGROUtIDRADIA-

INTHE'tNIRONMENTI'M,GLAP TO

THAT!.IT,CERTAINLYCLEARS,'. e

»\ VI+I')s'y .,Agg~

4q

C/~ ~ )~1@ ~l~ft)r,.

» "FLIGHTS FOR EXAMPLEt;. W MANYCASES.THEY'E FAR GRE'AT-ER THAN RADIATICN ~

FRCM NUCLEAR

'CAU5E THE, j5:".» '~~i(': SLIGHTEST c"f ." '.)

4-'OUVE

GCK3U-KEEP IN MIND

THAT'UMAN

BEINGS 'ARE'.5UBJECT TO MAIIYIO c 'I",'"'F.

RADIATION IN.DAY~ TO OAY LIVING - IN:";. -: "$AA

'MOUNTAINVACATION.AREAS. ANP JE'T' ' ."s~33

) p

~)c'

~ e ~

— C379—

»A

»L

A5OUTA5C2&R8$ 4C7Ug»3, NOIY-WEVEALLCCITTOREAIEJHBER THAThhAN'5 BEEN LIVIN6WITH THEA FORQUITE A FBV YEARS NOVA WIT?fWO PRDBLElAS WHAT-,SOEVER! ANO THIS INaubES TH PEOPLE UVINS ONATTIC5UBS ANDATOMICSHIPS, AS WEtLAS THOSE

'ACTUALLYWORIVNS IN ANDAROUND THE!6 NUCLEARISENERATIN15 PLANTS %READY IN EQSTENCEi THE; ELECTRIC CQVIPANIES ARE~ CCNSCIOUS OF'ADIATIONPROBLENS 'HO HAVE SUCCESSFULLY

SCCViR7 THEN!

«HVCLEAR'REACTORS ARC 8VILTWITH SAFETY IMHINDI TAKE A LOOIC AT THIS DIACRAIL OQSERYC.THE COHCRETE AHD klETALSHIELDIHC WHKHCVARD AOAIHST RADIATIDMI«

THE BAIANCECF'

THE SYSTEM ISQOSED- THE WATERDIRECTLY HEATED

. l»r»»g

j~

, ~ . ~ j+ '.ms.

3.r

»3

~i

NEVER IS RELEASED.SINCE IT IS.,CON.STANTLY RECIRCU-LATED

INSIDE'HIELDED PIPES~ THEREFORE RADIA-

TION CANNOT

ESCAPE!'RETE.SIVELD+

~ ~~

».- «HER~'SHOW ll'ORKS IM THC CLOSED WATERSYSTEMS',i

OP, TWDDIPPEREM TYPES OF REACTOR THE COILIHC, '<.WATER,REACTOR AHD I'HE PRESSVRIZED

WATER''"Y

REACTOR

'" H++~,'i 8OILlHO'ATERREACTOR'."i.W>~i~r> 5 LI""I»I;'~4+IIVCL«SCICNTLTfNRICHCD URANIC OXIDC HCOCRATOII»..»»II.COIL'IHCWITfRo COOLANTL5 OI LINC 1ATCR»PATCR ~ r:~C CHTCRSRCACTDRI 15'HCATCD PASSIHC SCTQC CH

»fT~3»CLCNANT5 Cf HQCLZAR fUfI',000 I'OVH05 I'CR'J4ONVICIHCNfftSSVRC fRCDVCC STCQI WITHE

IICTCHftRATURC AHO ftf55VRC CREAT CNOUON FOR'

BECAUSE'CFOUR ADVANCINSTECHNO- '~LOGIES, ANO FAVORABLE ECONONCS,

/HAhl/PAORE NUCLEAR 5EilERATIN8PLANTS WILLBE'BUILT,'!

iv « ':~'P~Yl P r .'. ggp0

» 'e~

rr( l~~rl4

r ',~

r.

L'r

»

"g~~FI'fr»lf"

$$i

r,Wr.»r;,~ '4c.a.

Ii

I ig'L

hgPQ'g,.=. ~4obig VIII«"'".

'T.'..«~CA W~g".'i.'3'. Yl:Hr SY

Xf

»»Igloo

4

,l+g>Q>if''giw

Q'$'tsei.,*85QICetf.,I. r'ea

, rr

it,00

:SAHCFQCC»HODCRATOR AllO CDOCANT»WATCR»''WATZIQPASSIHQ SXRCQCItRCACTCR DOCS XOWCILr«»~'>+

~RC55QRt CtfATCR TNAN THAT Of COILIHOWATfRLRC ',:jACTOR fttHITLIIAT5R TO bC H CAT CD TO H CARLY,~00. DtfttfS.f '.WITHOUT CDILIHC'XCATtDCATCC".< gi" .~"

~ CCICS TOST!AllCCHCRATORI HAKCS TXCSTCAIAr~"'~

~ .

'L/

1 UNDERSTAND THATAFTER THEY'E&iYOU'E FINISHED WITH THE FCUHO TO BENUCLEAR FUEL, ITCAN SITU. - CIREATLYUSEFULBE'USCD FCR OTHER PUR- i IN Af6D/C/AEPOSES;,~»+ FOR OHETHIHS-..LlÃE" -";~ '; AIIDIN /POC/5UV

VIHATt .'. - '

AHDuaCE...RFS&WGY'.

AS WELL!j.

,-j$)'Igqri»3T»»5'.:

% 'g'I

WYp+'Y»'V~S

~ Q5)

'.'i' ~, I~ A .' . '

— C380—

0 0~ r e ~

r r

~ 4 t~ ~

«,p+ !g

%j rt

~ ~ ~ ~

~ ~ ~ ~ ~ ~ ~ ' ~ P '

~ ~

~ 4 4 ~ ~

p .;. ~." y

A

.fv~c . W x1~ JQ~W&~~glk kl:~~

a' ' a Wf ~ J

e

" <'-'~l4%'@fr~"'5f(»7~i,~""~jf.„~~.+

~ ~ ~ '

<.c+«

~r>

D<»&<~.'4'rgP<

m K'OHa Td'DETECT TIIE,"KEYEi;'~DtCONTAINER~ISKEEP LEYE~D{'.<

'$»HZT+

,"ILe;

.yy~'ICTECTD{{tTHC LCVQLOS LlgUIDIH CANS OP CCYER «+t»IX~ACE:IktROPERLY PILL'ED>CAHSARC EJECTED:INTO.'r,j„:-) g'THE PU>+T LECT .r <'J<»U ~ 1>I<<{»> Ar '<" <k>»'h>><

Ph

.",XM Jj.',).[ „y

,<PD RTACC,K."><» w(>JIADIATIO

IELI<'DNIRCE.P,DR{I/"

ADIOSCWCCSteL~

~Ot<{.k>»< J«p8> Kg+AVCIIARIIIC<tingJ.I{CD„HCSH4D<>O++

<JOtt DCTECTIOH. ~. 1HSDREK THE~ $$„RELIACCSTT~~44'tOH CH{F,'gp aM" 'RPL'AHa~g„PUSCLAOCtYA~

AHDIHOH.:+IE ItCSIUR K 'l",

<crt g

"RADIOlCTIYEISOTOPES ARE YITlLIN THE PIELD OP'ADIOCRJIPHY».TAKINOPICTURES OP INTERHAL

~ STRUCTURES OP SOLID OBJECTS.»"

Qx, '. >mi

,-.THE LIST COULD 60 ON-ANDON .. E>UT ALLTHESE SHOULDGIVE.-"'XXJA GOOD IDEACF THE IMPORTANCEOP RAOIOACllVENATERIAtS.

'LSO, TtIERE ARE TVVCI'OTHER IMRKTANTAREAS NAKIN&AMAZIN&.PROC~ THROUGH THE USE OP ATONIC ENERGY-lÃ4VSRX7«<l-.e TEA'ON &%77/ANO 7R4VSFtÃTrf7XA'NSPACE.f"

C,'<<

~-,r,<I>

Tti-gIO~~H:

I .~l>-P

0%'TIIEI

VS.~)+~:<~<',

P{{<<~<

' '~~:~g'L, litADDITIOlt NVCLEARPROPVLSIOH .['. -P'.A". VNITSARE BE!NO DEVELOPED FOR'> '

I.f+jg".SPACE TRAY~VCHAS THIS:l»'. II»>'r'..'QHERVA'VNITSNONHHERE " 4 ~ '6~ >$~>t,q «I HERYA,STANDS FOR NUCLEAR.

'<VAr VEHICLE'i><r V~1 ENDING'POR.ROCKET>

YES, ATUMICRESEARCH IS PRC6ING ALLAREASOP CUR LIVES, NOWANO POR Ttk FtflURE! RIGHT *

NOW SCIENTISTS ARE WORKINGON NUCL&&AIRPLANES, AUlO>QOSILES, TRAINS-ANOJUST AECUT

'NYTHIN&ANO EVERYTHINGTHATMOVES UNOER IT5OWN POWER! WEVE EN~ED THE Ab'CAFE~

THAT.VVILLNAKEOUR UVING>EAR&VANOhCREPRCOUC77I>L.«'

(

r

«I'> ~~ I

<r

CO'.PURR!DR{R'ENCOAP

IHl

«, IITIEIECD~.Tt<RIISI{>

+'g.~~ ~~+ > «+

r

- &82-

~ IF YOU WANI PROOF, WHAT'5GOINGJUST CONSIGER THE HAPPEN TQ THE

huff NUCLEAR RANTS 'LO ELECTRIC'PERATING THROL(GH - 'EMERATIM&.

CUT THE NATION!.. PLANTS'f "

AS THEV BECO>t>IE UNECOhlOhhICAL, THF/ANYBE REPLACED EIV MODERN NUCLEAR

~ 1NSI'ALLATIONS/THE END PRCXXfCT, OPCOURSE. WILLBE THE SAINTE-~MORC

'VEREPT, AND ITS TRANRNSSION FRCNTHE NUCLEAR PLANT'IO HO(V(EANVINGU5TRY WILLBE THE Sv4HEAS INTHE OLDER

CONVENTIONALPLANT5. THE GIFFERENCE..WILLBE ENOUGH CURRENT FOR OUR.: ""'.

'RO>VIM6NEEOS-.AMO EVENTUALNEER»TANTSAVINGS I. "...'.-s,,„p~" "'

I

c

~-

'I t

>I*

--k &4.

1C'

~'

rt('I

I

«. I4, ~ '

~ L, ~ 'I~, ~

1 ~

1

I«

c"

1'

«ra, r..'l«C:'r

~ ~

~ ~

«

! >c r4: Ccc IC,

c

.!

Ic«»««~~~ 44(»c ~«%mu=~cratt'tat(ORTitt t Cleat. (ruat ~~«iOZSFREAO>ttttltattataf ttL>WORLCLOF'ltt(C'(c "

AtlttttATO%-'l>L'(tHTSK~« XQlt.'Fet~ '„gawtosAu.vttst;mTHastAxit'IamtsATt ~~~~~ ~~tttttltClÃCTO(AT/tL~OCMttOASCE'tCXC~y r~~~~~

~~V&RCIS;5 +tta~fgtClBtCE'ttakltTSP~a~~s«-cFY&48X ~5+k4T ~~~%i~ SMc

,. ~«;cl

I r".

,pp

'" 'Igj.

Fc i"t'i>6"

~)~ ~ 1

'.«A

~ (,'.>t

c, ~

't

~

ILr

~ ~ 'I

I

~ 'T L' C,'(«I

g> Sr/» 124Irr X.c>P„CSII '«« ~»+

c

I1 -cc54

Q ~l

..>r Cert«4 W'«c.

I

t.C>>t «r,

«S

!,«IrcI

~Qrc~jgc cW~ >'j '

I

c

- WI>rr!,,osHSRATCRc,.<~(.gPjj 1

,vrbE«I

»«8"'lcI/$Q

~'

p rr >. (ict«,

'c p%e'i«liW;

ij'g

tr.cc

c'

I

c(ac ~

t ~>"r~..i'5-'(NTKRCCSR(SC(SCH '..."

-;P. S(uCLRAR rutLW(TROSTVR RRACTOR..;-»'- 1> l», «4». -:.„m~~ ~:-.«'~CLTuaaSWana (RSO) TO STRA(S IYRLL'OWI'''.; c

'"'' '!Y ~ WH(CRSRO(STRKSnASLT(iRR(R! '"-'> 41(

gy+i'RO OF Tat TORRO4ZRRRATOR', '""p>.4 '4>SIAN« ROTAT(NO CRRCRATOR I(AXu

>I>1 tACTuatstLRCSRICtataOY OILutl I'I, -«» -TSS~SRStt

»ac

iI««'I„~

4 ~ 1

c

WIIH C(HSR. COSOAlltf'

~g g»Mic~g~~i

c,~ ~

I

— C383—

r-~-

j @@rrVIP.:

ANO NOVI ITS TIME PCR ARECAP TIiMETQ UhVAAR.-

'i4ctyr„ IZE THE I/AFORTANTAD-YANTA6E5 OF NUCLEAR ',

A ! 6ENERATION OF ELEC-TRICITY! THE5E NEW "

- r 'UCLEAR PIANT5 WEPTPRODUCE

SBfCIhE''"'";

OR SOCF 'N'

'HIHB, I ]$):

OR .'C USED FOR HEATIHOrrc ~ ~

>A;'PRIHE'SOURCE'OF''/IIR'POC&B7OH WIEI'BEC8 «I7EIR TED«"OIL;g 'SFJRED HE'ATIHOIEr.~>~g

cc

AfrPL'AHTSAREP~c+CLEAl4;ODORLESS:AHO«'Ir„.OEHERATE

ELECTRICITT'Z.'JftCHL)r

CORPETITIYE«'RATESI«~c.6i~.r

NOW THATYOUVE IMOVEO INIOTHIS

HIGHER<

P c\

c«rc«

c

'c

ic

rc

~ '

PPI -.:,;.

':.'P~'a%~~,c~ FOELREOIIIRES .«'~<..~~~.AFAR'LESSSPACE ~" rc'~

c" ~+~X%.: AHO OIL BOIH'Tv<'-, ~/WE i''HAVETO BE STORED.;.

~ c~e- '>~~~COHVEHIEHCE.

c

rr rc".«+I?

tv.~.. «re«~~

NO, THEY'ETHE5AMEA5 WE HAO IN -;THE CIO APARTMENT/ ',

rt

rL

r ~s«

ANI7HERE'5 ANOI?IER IMPORTANT'AOVANTA6EFCR ALLCCNSV/AERS.

'HROU6HNUCLEAR PLANTS.'IHECOST OF'ELECTRICITY CAN SEHEIO DGW'OE5PITEH/&KFCO5T5 IN MOST AREAS CF.

CUR NATIONALLIFE/

~ ««p.«

I

'.: . 'ONE.THIN6'5 5URE-. I75'6OI

ANOl?IANKYCXIFOR 1HE OPPORTUNITY TO SRIN6rYOU THE STORY'OFA5~F5kVER IN ELECTRICALPLANT5. PLEASE REMEMSER THATYCUR ELECTRIQ CCM-PPNY WILL'CONTINUETU EXPLORE ACC MEAN5TO SRIN6XXl.ELECTR(CITYATTHEZOlYE5TFUS5/BLECCI57;r .

+~I% i L':

~ c

crr p

-'~:

CI «

c

-V

f SRNR«

~~~"CÃhc~r r

«r7

rl

7

+4«

j«$~«jrt@c)+ pe

77IF. Ei/DPr'ccrrrl icr UJA.j

- C384-

t4+~> .

'Ar

>'> ~

t','.':.:;

S.

S ~

fr ~

v

i~~ r:.'.:»

3»i '

e

'h'-@"':4",;!'GUL'FOP.:;',>;",'r~~-„

)+i ~ 4/ S

r»>SS'r!V i>r+ ~++

+1M"ga'f~

ag',»;~>~i,~~~j $

~~OSWWNt,Ij~g'r P Oli

'~J ~~M>...

>>'r gy~ 'k~iv»rrv>qy~

~f,

.r>~r

-- ~ ">8 ~Z SraAPA-.;>,-'KECTRIC:PI ITS..

~~~-'s-. GENERATE'"MCRE:~~;~.: lNAN.5;SOO;CXXy:g', j<'~ i<It'OWATTS'OF~',"»

= '.~-'ChVI: FQM'"'~:; -',.':iPPROX>WTay ~

.'. j 370,000CU5MRS'g'-".

s', IN-'THE.32. COUNTY ..

;: 't -".;":,'"..'SYSTEM OF,',".'„-i'." " F.LORIVA POWER:

c

>tq~4

~4

S

T«1 .f»i

~v«r>p

S»V'CO+

~'q~Wj%g~p~. ) ~Z~~- >»~~'-,.''*$~~~„j~~y~M~~~> i> ',q . P

r.

r>

~ 4

r'gS>+vvP>

g~~'~e-.«~S '~ v>>i~ g>>'~+Sg Q~. 0,'.«h,. ~ 3',. s

: r"~.~p~.'F'.OVfER:.'CORPORATION'~,$J ='~4'~57~-„-",-,~

"V<» ~ > sr. i ) v Sg, a p'r> 's~;,44~>,>rf~, ( 7», g«SSS> ~wgjp ~ «

rv>S>> ~ :l

~ ~

~.';(.

- «:(»'

>'a1$~

: ~ S.>44

M>~~A

»',, rr>SI

~T>> '

'f)7~x

ri\

S

~ W '>

I"(r'i

2/10/65

FLORIOA OPERATING COMMITTEESTUOY GROUP FOR JOINT LONG-RANGE PLANNING

MINUTES OF JANUARY 2 . 1965 MEETING

The meeting was called to order by Chairman Buchanan at 10:35 a.m.January 21, 1965, in a Conference Roam at Tampa Electric Company.(The 1965 stability study and 1967 load flow study were discussedprior to this meeting and will be reported an separately.) Inattendance were:

Messrs. K. S. Buchanan Florida Power F Light Co.J. G. Raine II II II II II

C. L. Bal lard II II II II II

J. K. Wiley Florida Power Corp.G. E. Marks II II . II

- J . R. B r i ce Tampa Electric Co.Bob May II II II

P. Foltz II II II

Irving Reedy Orlando Util. Comm.

R. L. Gittings . City of JacksonvilleR. L. Thampson II II. II

E. C. Na 1 1 e II II II

J. C. Hartiey General Electric Co.s

It was decided that the penalty factors for preliminary productioncosting were to be determined by using the 130 bus, scheduling loadflow program as suggest d by Or. Wood. The 1967 load flow presentlybeing assembled by the Flopida Operating Committee Study Group willbe used as a guide for reduction of the State system to 130 buses.A 70/ load level will be used with this 130 bus s»< "."

~ tsar determingthe penalty factors. The bus numbers for each ~ 'll'itywill be asfo 1 1 aws:

e'a stAl TYFACTORS

Bus Numbers Inclusive

OUC

JacksonvilleTECo.FPC .

FPsL

1 through 78 through 15

16 through 3738 through 9293 through 130

This load flaw data is to be ready for running by March j. iir. Hartleyis to supply each participant with ;he input tones and instruction manuaifor this matrix load flow program.

2. Each utility is to arrive at its own unit investment cast data in TOTAL $and $ /KW for the particular unit sizes that it forecasts for use in gene-ration expansion Plant g1 and othe", plans. The cost data of each utilityare to reflect its own rating and design practicesp such as number and INV-STMENT

typ of boiler feed pumps, type of fuels, throttle pressure, number ofgenerator step-up transformers, high vol tage termination, etc. REQU I REMENTS

- C386-

~ rst tl i".<C

4a

2/XO/6gPage 2

The cost data should indicate whether the installation is an initialunit or an extension. The cost data of each utility should be brokendown sufficiently so that it can be ;.. rged into one value for eachunit si e for use in the initial phases of investment costing. Thecost data are to be as of 1966 prices. Each utility and GE are toestimate inflation factors (if any) to be applied to these pricesthrough 1982. Preliminary cost data are to be avaiiable by March 1so that final values may be agreed upon by Aorll 1.

General Electric will furnish cost data on nuclear plarts in Florida.They have made contac- with several utilities in Florida to determinethe present cost of fossil plants, f'r comparison purposes with theNational average so that they will be able to relate the Nationalaverages on nuclear plants to Florida Utilities. They will make

this'ataavai'labia by March 1. The ur.iiities were requested to submitadditional cos- dare an nuclear plants, if available to them.

A breakdown of the level fixed charge rate for production plant ofeach utility is to ba available by March 1. These rates must bemerged by Aoril 1 into a composite fixed charge rate for use In atleast the initial phases of generating investment cos;ing. A ccmpositevalue of minimum acceptable return (cost of money) must also be agreed .

upon by Aorll 1 for use throughout the study. The determination ofthese two cormposites will probably be based on weighted averages of thavarious components.

\

Mr. Hartl'ey passed out an exc llent GE paper, "Revenu Requirementsand Fixed Charge Rates" by W. D. Marsh (Attachment 7'y'). Mr. Buchananre""mmended three articles on engineering economics that have beenpublished in the Westinghouse Engine r during 1 8.. The titles areas follows:

I NVESTMENTCOST DATAREQUtREMENTS.(Cont'd)

"Financial Concepts for Economic Studies" byP. H. Jeynes, C. J; Baldwin, WestinahousaEnoineer, Jan. 19@, Pages 8 - X4.

"Financial Mathematics For Economic Studies"by P. H. Jeynes, C. J. Baldwin, WestinahouseEneineer March 296b, Pages bl - S7.

"Methods of Economic Comparisons" byP. H. Jeynes, C. J. Baldwin, WestinahouseEneineer, July 1964, Pages 122 - ~&8.

3. All particioants have mailed their historical hourly load data cardsto Dr. Wood. The list of abnormal load days during the historicalperiod of 1962 through 1964, was reviewed and accepted. (Attachment 42)Mr. Raine has mailed this list to Dr. Wood ogether with the maximumload change from one hour to the next (Attachment 43) for purposes ofchecking the hourly load data in Schene'ctaciy.

HiSTORiCALHOURLYLOAD DATA

- C387-

(((ij

2/3.0/65Page 3

All participants have completed their 20-year monthly peak load fore-cast and this data has been assembled into a single forecast for theFlorida Pool (Attachment jj4). A summary of the individual seasonal peakloads and average growth rates, and' composite of the Pool is as follows:

TWENTY-YEARSUMMER (AUG/S EP) WINTER DEC/JAN) HONTHLY PEAK.„-

Peak Load-mdiv Average Annual Peak Load-mw Average Annual LOAD FORECAS i3-3 . 373 3 7'.3

JAX 853 2852 9. 0 ." 715 2390 9. 0

TEC 985 3565 9.6 LL30 . 4080 9.6FPC 1300 6800 L2.6 1600 7200 1L.3FPL 4025 15,950 10.2 4550 3.7, 200 9. 9

POOL

POOL

7444 30,025(Aug/Sep) (Aug/Sep)

7401 29, 879(Sep) (Sep)

10.5

8258 31, 638(Oec/Jan) (Dec/Jan)

8253 '19628(Jan) (Jari)'0.3.

5.

6.

70

8.

9-

It was agreed upon by all members that the 15-year study period shouldrun fran April 1, 1968 through March 31, 3.983.

Price quotations rec ived from General Electric (J. C. Hartley's letterof December M~ , 1964, to K. S. Buchanan) for additional cases was re-viewed by"the group. (See attachment to 1/8/65 notice of'his meeting)

Authorization for billing of Joint Long-Range Planning Study has beenra e by each utility in accordance with agreed upon percentages:FPL 44%9 FPC 200/o9 TEC 16/9 JAX 12%9 OUC 8/0.

The number of maintenance intervals per year was agreed on; L3 - 4 weekperiods. For purposes of the study, an actual 5-year maintenance cycle3of say 4»2-2-2-2 weeks could be given as 44-0-4-0 weeks (or L-L-O»L-Ointervals). Other maintenance cycles may require similar modificationsor perhaps the ccmbinl:ng of the cycles of two or more units of like size.

ft was agreed that the peak loads for the maintenance intervals are tobe arrived at by the method suggested by Mr. Buchanan. (See attachmentto 1/8/65 notice or this meeting.) Florida Pool peak loads of the main-tenance intervals, April 1968 - March 1983 are given in A'ttachment ~~5.

This tabulation was sent to Dr. Wood on 2/5/65. Dr. Wood was asked tofurnish us with the maintenance interval peak loads for 1952-1964 sothat a comparison with monthly peak loads could be made.

The 10-year (1955-1964) historical monthly peak load data should besent to Hr. Raine by Februarv L5 so tha- Pool totals can be compiledand converted to interval peak loads.

STUDYPERIOD

PRI CE

QUOTAT I OiNS

FOR ADDITION/CASES

AUTHOR I 2AT I Oii

FOR BILLING

MAINTENANCEI NTERVALS

PEAK LOADSOF

MAINTENANCEI NTERVALS

3.0-YEARHISTORICALLOAD DATA

Mr. H'artley passed out information pertaining to the transmissionplanning section of this study. 3ne booklet "Transmission Planning"is self-explanatory, thus no discussion was held at the time. Thetuo tables on p.6, "Typical Values of Line Cata" and'ine CapabilityData'i are of particular interest in the present preliminary trans"mission planning phase of the study.

- C388—

TRANSM I SS ION

PLANN ING

((<r

2/10/65Page 4

12. The data requirements for the various s ctions of the IndividualGenerating Unit Data sheet were discussed as follows:

(A) Maximum Caoabiiit - The maximum capability figure will beused in the servic reliability calculation and the pro-duction costing program. Since these are two separate pro-grams, two different numbers may be used for calculation ofthe service reliability and the spinning reserve requirements(In the production costing program). Any utility that requiresthe use of two values to represent properly the maximum capa-bility of its units (e.g., one value for spinning reservecalculations corresponding to generation with wide open controlvalves and normal steam pressure, and a second value for servicereliability calculations which is 5 to 10%%u, higher and is ob-tainable by such measures as cutting top feedwater heater andincreasing steam pressure) should clearly identify the two valueson the data sheet.

INO IV I DUAL

GENERATINGUNIT

DATA SHEET

(B) Size of Units - Data is to be gathered on units of 15 mw sizeand above. If the total number of generators (76) is exceeded,then some units can be lumped for probability calculations.

(C) Maintenance C cle - The data sheet does not provide for specifi-cation of the maintenanc interval of a given uni to occur in a

particular interval, such as Interval f32 - February. While'hismay not be required, we would like Dr. Wood to advise if (and how)this could be done. Perhaps this could be handled as a pre-scheduled capacity variation similar to season 1 derations ofcapabilities.

(D) Thermal Data - Dr. Wood advises that all data in this section isto be on a gross basis: Gross Gen ration (mw), Average Heat Input(Btu/gross kwh); Incremental Heat Rate (Btu/gross huh). Capabilitydata and Operating and Maintenanc data should also be on e grossbasis.

The question arose as to whether or not a unit may be added or retiredat the beginning of any maintenance interval dur ing the study year, G ENERAT I ON

rather than only at the start of the study year (April 1). Two examples ADDITIONS

in which this would be desirable were discussed. ANO

RET I REMENTS

Example 2: One year three units may b required to get through thecomplete year to meet the accumulated service index. Actuallyone or more units might be delayed until fall when the winterpeak comes on.

Example 2: fn the plans'where some other than service index is used,the unit installation date might be specified by a particularutility at other than April 1. The service index for the particularplan is to be calculated.

— C389—

2/10/65Page 5

Dr. Wood has since advised that there would be no problem on pro-duction costing. However, on probability calculations and invest-ment costing he reserves cotment until he can study the problemfurther.

14. Or. Wood's cents on forced outage rates, as contained in hismarrorandum of January 12, 3965 (Attachm nt 6 to these minutes),were reviewed. Subsequent to the meeting, the forced outagerates experienced by the Florida Pool during the 1955-"963 period(as contained in Attachrent 4 oF the minutes of the„18th meetingof the Florida Operating Camnittee) were regrouped by unit sizewith data on "rare occurrences" included in determining poolaverage rates. These Florida Pool rates are listed in Attachment 7to these minutes, together with forced outage rates from EEI 3.960-1963 data, National Power Survey Advisory Committee Rep'ort No. 24(Attachment 8) and Table I of Westinghouse paper, ~'ThetEconomicOevelopment of Mine&outh Power Plants, EHV Transmissiop andNuclear Generation in the United States" by J. K. Oil lard andC. J. Baldwin, World Power Conference, September 3964 (Attachment 9) ~

Note that the National Power Survey rates are stated to be conservativeenough to include partial outages, such as half-capacity boiler feedpumps. Note also that the N.P.S. Report No. 24 recommends that thelisted forced outage rates be doubled for the firsg two years ofoperation of units which are in the upper portion of the size rangethen available.

FORCEOOUTAGERATES t.

At our nest meeting the proper forced outage rates for'xisting andfuture units wil I be determined, based on review and discussion ofhe above forced outage rate data and any additional data that can be

obtained frcm General Electric and others. It appears that the under"1 ined values of Attachm nt 7 are satisfactory forced outage rates forthe various sizes of units to be u" il ized in our study. Cons iderationmust be given to the use of higher rates for the»immature» period ofthe large." units~ however, the doubled values seem excessive.

15. Oata required, for service reliability calculations for April 1955-March 196k period are to be avaiiabie by riarch s. in addition to thehistoricai conti:iy peak load data and -;arced outage rates previouslydiscussed, the following are required:

a) In-servic dates oF units added during this period.

SERV I CERELIABILITYCALCULATIONS3.955 3.964

b) Maintenance cycle of each unit; year one will be April 1955-March 1956 for units in service at start of this period; year onefor added units will be the first sou 'ear in which the unit wasout for annual maintenance.

c) Oe-rated r,;aximum capabilities.

Refer to Attachment 6 for Or. Wood's c".—,.„ents-on service reliabilitycalculations for this historical period.

- C390—

L(~

2/10/65.Page 6

Under Generation Expansion Plan ~~~~ the generation expansionpattern is to follow an individual futility need rather thanthe Pool expansion needs as related to unit sizes. Under thi'spremise, each utility has to arrive at Its own individual gene-ration expansion plan based largely on its past policy ongeneration additions. FPQ., FPC~ and City of Jacksonville hadthis plan available and distributed copies at the m sting. OUC

has subsequently mailed its plan to the other participants. TECo.will distribute, by mail, to the other participants its expansionplan as soon as possible so that each participant may review allfive expansion plans before the next meeting. These preliminaryindividual plans are to be ccordinated so that adequate reservesare maintained on an equitable basis over the 15-year peiiod.

GENERAT I ON

EXPANSIONPLAN rr3.

It was recommended that an adequate installed reserve for theFlorida Pool in Generation Expansion'lan gl (and similar plansin which the timing of units is specified rather than added tomaintain a preselected service reliability index) be 150/ to 200%%d

of the Pool 's largest uni t.Consideration must be given to determining an equitable basis f'rproviding the required Pool installed reserve. For the purposes ofthis study, perhaps a f'ormula similar to the one presently used todetermine spinning reserve obligations and ready reserve obligationswould be satisfactory.

Mr. Harti."y distributed some additional reference mat rial:"Reliability Calculations, Interconnections andUnit Siz " by W. 0. Marsh and A. J. Wood.

REFERENCEMATERIAL

'~i,odern Generation Expansion Plarr.ing", by J. B.McClure.

Ilr. Buchanan reconmended the F.P.C. National Powe, 'Survey-3.964 as anexc llent reference source for several phases of this study. Includedas attachments to these minutes are the following:

410 - Excerpt frcm National Power Survey on Generating Reserve Re-quirements, pp. 1S7»197.

- Excerpt from N.P.S. on Fiscal Ass mptions and Fixed Charges,pp. 282.-283.

432 - "Average Net Plant Heat Rates for Various Size Units - -"SteamConditions Change With Unit Size", p. 64 N.P.S. AdvisoryCommittee Report No. 7.

~13 - N.?.S. Advisory Commjttee Report No. 6, "Criteria for A-C Trans-mission System Performance".

— C391—

2/10/65Page 7

P4 - N.P.S. Advisory Committee Report No. 3.0, "Es imated InstalledCost ror EHll Transmission Facilities".

415 - N.P.S. Advisory Committee Report No. M~ , "Typical Constants forPower System Components".

~~36 - Excerpt from N.P.S. Advisory Committee Report No. l5, "NuclearDevelopment", ppe 175~179'86e

The tentative date For the next meeting is March 9, 2955; please letme know if this date is not satisfactory. In these minutes and theminutes or the December l, 1964 meeting, various data was indicatedto be due or available by February 22, 3.965 and March 1, 1965. Allof this data wi)1 have to be compiled and/or coordinated at the nextmeeting before being mailed to Schenectady. Therefore, bring thisdata to the nex- meeting rather than mailing at the earlier dates.

MEET I NG

At the next meeting additional generation expansion plans are to bediscussed. Each oarticipant should determine the Pool, generationaddition policy which it favors for use in these additional plans.Some plans would perhaps be similar to Plans 2 through 5 of Mr. Hartley'sStudy Outline.

KSB:hkAttachments (A~)

K. S. SuchananChairman

~ ~

0'1~

E(CHIC FRCcN NAiZOHAL POWER SURVEY ADVISORY CO MTTRT NO. 15, pp. 175-179, 186

Attachment 816

NUC1.EAR DB/""LCPM~i37

A. tntrodvdionThe domestic-nuclear power prayazn is broad,

and includes research and development, design,constzucfiion and operation oE many types and sizes

of nuclear reactors. Experience must still be ob-tained from the operation of many types underdcvclapment to dcznonstratr. their capital and op-erating costs, dependability, and flcxibiHcy. Butthe record established by thrc= large reactors(Dresd~ Shippingporz, and Yankee) has donemuch to establish conndencc in thc reliabBicy, anddcpcndabBicy, af the water modezated and cooledvariety. Thus, while nuclear developments with-in this and the following decade, the period of thissurvey, may demonstrate the advancages and im-portance of ocher types, the projections prescncedin this rcport are based primarily upon reactors ofthe water moderated and cooled types.

G. Operating B:perience

Thc power generating record csmbHshed atDresden Shippingport'nd Yankee is shown infigures 1, 2, anc, 3. As oE Dccmiber 1962, these

three stations have generated a total of ave". 5

billion kilowatt-hours of eleccricip.The pcrformaa = aE these three large water re-

actors, ap"arcing extewively as power pnsducczsoa utBicy systems, has demonstrated the abiTity toexceed thc original asnsezvacive design capacity.Ia addiYion, these units are demonstrating a highdegree of flexibiHcy in zespoase to load changesand pzozzdse to achieve a high degree oE avail-abiTicy. The Duquesne Light Company has re-porte that the Snippiagport reactor followed allsys~ load changes at a Easter rate than any mod-era conventional power plant oa thar systan, andthe others are performing ia a comparable manner.Excluding thc dowacaae to cazzy out special trnaand for refucHag, aad in chc case oE Dresden amajor shutdown ta modify control drives, reactoravaihbiHcy has exceeded 90 percent (see figure 4).Dresden as weB as Yankee apeman for seve.dmonths at 1GO percent racer avaihbBicy. Duringcbe fiat QKO equivalent full power hours, Yankee

175

had only one week of outage attributable to thcnuclear plant (excessive leakage in primary phntvalves), and during thc life oE the first core thc reac-

tor was available to produce stcam 90 percent ofthe time ia spite of the nccd to conduct special

tests. During the 15 znonth operation with Seed

2 the shutdown for z aiatcnancc at Shippingportwas less than 3 percer. Ahhough thc statistics arc

limited, further data. on the operation of the waterreactors arc expected to substantiate that depend-

ability, flexibBity, and avaihbilicy (including allow-ance for refueling which initially can result in adowntime af 10 to 20 p~nc) of these stations

willbc comparable to that of modern fossil fueled

staaoasExperienc with these rcaccors has also demon-

strated that each is capable of much higher po'wer

outputs than provided for in the original consczva-

ave design. Shippingport with extensive modifica;tion will increase its output fram 68 to 150 mega-

watt (gzoss electrica, equivalent), and Yankee has

gone from 110 to over 160 megawatt and Dresden

from 180 to over 200 megawatt (net electrical) .

C. Size

There is a capital cas. differential againsc nu-clear units as compa. ci to Eossi) fuel units. This

. difi'ezential dec.~~es significancly with iacrease

in unit racing. In m respect the trend coward

h.~e: size un'n central power stations is vczyiznportant to the econoa:ic application and growthoi nuclear power. Although fossil fueled plantshave pieced a moving target to campetiYion,

preliminary studies incHcate that far future large

sizes, say 1CCO MNe, the c=pital cost differentialbeavem nuclear arM EossB fuel plants may not be

g~A Eew~ ago it was generally believed that the

hrgesc unit size af the water type reactor that could

be built would be limited to 300 ta %0 bee.Since then it has become evident that units twice

as hrge, aad probably larger, could be built. Howeve:, it is natal that such large unit sizes may bc

Hmited to sites which are accesable. to barge c~-port; a 1CGO hDYe reactor uaic might require, a.

C393-, ~

y

176

900 ton'ressure vessel having a diameter, exeluding thc nobles, of 19 to 20 feet. For otherreactor types, such as sodium or gasecoolcd, thereactor would not appear to b the limiting facto.in unit size. Thus, the size of nuclear plants wiHprobably be determined by the increment of electricdemand which can be dependably and cconomicaHyincorporated into a power s)astern at the nuclca:station site.

The possiMity of a nuclear incident—no matthow remote, and in the absence of adequate expci-cnce —dictates a prudent attitude in order to safe-guard the pubhc against such an event. As a consequence, nuclear power installations arc designedto contain any fission products which might bc re-leased from the zeactoz and have been located awayfrom population centers. The guidelines to ac-complish this have, of necessity, been somewhataribitrazy. This has resulted in economic penal-ues, and a further limit=tionon. suitable sites whichare already'restricted duc to the requirement ofample supplies of cooling water.

Offsettin isolation and containmcnt require» .

ments of a nut.lear plant, however, is thc absence ofthe aiz poHuuon problem. In the past decadethere has been a growing awayness of the problemof proper dispezsion of thc gaseous products of com-bustion from central stations. Although acceptablesolutions for air poHution resulting f~ conven-tional piano of sizes of 1000 megawatts and largercan be accomplished by mals of dust coHcctingcquipmenz, high stacks, and other developments,.such equipmcnt b costly and ofzezs to the compet-ing nuclca: plant a point of economic advantage.In addition, although the solution for the convcn-nonal plant znay be accep~e, the conditions of-fered by the nuclear plant whew products ofgaseous coznbustion are nonexistent would bc

preferred.Thus, while th~ would appear to be no pzoocn-

cal «onstzucnon or operation lunitation on tho sizeof nuclea: plants, though there are other factozs tobe «onsidczed, the application of current safccyguideHnes restricts the availabiiity of suitable eco-nomic sites for very hzy phnts. As more reactoropcclting experience ls obtained, cxpczimcntJsafety tats ~ ~uhtcd, and improved designsincorporated m reactors this limitation is expectto be liberalizedo In this connection it should b

'aa eo yaa eeoc ioe aeueuee oeuel eione, eeeioL'=movable head sod miscdhaeous ftems.

noted that recently an application has been submit-ted to the AEC for a permit to construct a

nuclear'eactor

of 2000 megawatts therznal output in Metro-politan Ncw York, and it has also been proposed toinstall a large reactor in the vicinityof Los Angeles.

D. Ntscle=r Power Economics

Since the trend is to ever larger unit and plantsizes, the present survey has been limited to nuclear

power reactors greater than 100 mcgawat ts

electricaLThe latest estimates of the unit capital cost of

large single reactor plants which would be initiatedfor construction today, and which would be placedin operation about 1966, are given in figure 5. Dueto increased core performance these plants are ex-pcctcd to achieve an increase in power, output ofabout 10 percent after five years of operation. Fu-ture improvements in core design as well as reactorcomponents, and'.better overall performance areexpected to result in inc.eased spccific powers andhigher net outpuots so that unit capital costs indi-cated in figure 6 may be resized.

Nuclear fuel costs'~ achieved to date are in therang of M to 3 mBb/kilowatt-hours with a pluto-niuzn metal credit of $30/gram guaranteed by theAEC T)w guazanteed pzice expires in 1963. Fora plutonium fuel value credit of $8/gram (as thenitrate) .these fuel costs are v to 5 mills/kHowatt-houzs. A considerable reducnon in nuclear fu 1

cosats is expected duringthe rmnaindcr of this decadeas shown in figure 7. The basic assumptions forthe achievement of these fuel costs have been re-ported by Pittman s and are in accord with cstimatcsavailable from the nuclear industry. Thcsc reduc-tions in fuel costs should bc achicvablc through in-

'creased electric energy yields (EMWH/KgU), rc-sultLag frccn increased buznup (Mwd/EgU) andhigner the~ emdcncies, without any significantchange in the net fuel charges ($/KgU for fabrica-tion, processing, fuel consumption, etc.). Tne in-creased cost for fuel enrichment to realize thehigher burnups is expected to be compensated forby eedueuoeu ia fuel fabrieauon. Cueeene quaea-

'yeuen, W. L. "yue aeuoee oa boolean Po~VL,"157, No. 20 Electrical Wodd, New York (21 May 1962).

'Fuel Cycle Costs for Speei6c Power Resctors, TID-13293 USAEC, Wzihicgton, D.Co (july 1961).

~ Pftcasii, P. K., hn hnalysls of the Report to ihe Pzesi

deney 19o2 hnnusl Coyifereoeee htomic iibdustzisl Forum,Waihliygtoa, D.Co {November 26, 1962).

- C394—

tions fram fuel sup pliezs inciicate equilibriumnuclear fuel costs in thc order af 2.0 mills/kilowatt-hours for zeaccozs operating about 1967.

During thc fallowiz:g decade, 1970-1980, ic isreasonable to expect impmved core performanceand further cost reduction for the fud cydc, partic-ularly for fuel fabrication, which may permit therealization of net fuel cydc costs in the range of 1

to 13 mills/kilowatt-hours by 1980. Since volumeis an impoztanc factor in bringing about cost reduc-tions, thc above estimates are pzcdicatcd upon agrowch oE che nuclear eapabili'ty as indicated in thenext sect!one

Privately owned single reactor plants of 300 to500 MWc capacity, ifbuilt for service in 1966-67,are e~ccced, aEter 5 yeazs of operation, to havegenerating casts comparable to fossil-fuel plants inhigh fud cost areas of thc United States (30 to 404/mBTU); larger plazcts, 500-1000 ~ie capacitybuilt in thc neet decade, are acpeeted to achievegeneratin casts comparing favorably to fosselofudstations in many areas of the United States. Theestimaccd level of compctitivencss for nudcar powerplants in thc United States ufility systems is indi-aaed in tables la, lb and figure 8. For a 500MWe nudear plant, operating the latter part ofthis d~de, tota1 power casts af about 6 mills/kilo-waa4auzz (net) ae now esnmated 'ith che ec-peetation of a decrease to a cost approaching 5 to ~

53 mills/kilawatt-haurs by che end oE the fo!lawingdemd Large phnts (500 to 1000 MWe), builtduring the 1970's, arc expected ta achieve evenlower gcnczating costs —in the range of 4 to 5 mills/kilowatt-hours by 1980.

K Grow'n or Nuclear Power

The present installed nudear power capabilityin the United States is approaching 1 million kilo-watts, or abaut one.!Mf p.~c of the total elec-tric power capability. As shcnvn in figuze 9, pro-jecions indicate th"c by 1970 this may increasefive-fold to 5 millionkihwatts. By 1980 the nudearcapability may be 40 nuTfian kilowatts, supplyingabout 7 percent af the total kilowattcapacity which,ac thc higher annual lead factor chat t!ee nudeareapeeity woold opetatewould ae,toeet to about

'tetot upee ueb eaetwt eee fuel ecto tluee la Ibit teport, 13 porcrnt/yrar financing ch row, 80 percent plantfactor, anti operanon anil znaintenanca cosa cons parableio fossi>(isdaf stations.

10 pe:cent of the annual kilowau-hour genezation.Figurc 9 abo shows up to 1980 the percent of totalcapacity which is expected to bc nuclear.

Although this survey has been limited to thepcriod ending 1980, and has emphasized the watermoderated reactor concept, it mighc bc pcrtincntto indicate the situacion regarding our nuc!ear fudresource and its impact upon the trend in reactordcvclopment. At present chere is, ar soon will be,an oversupply oE uranium in the open markcc.However, in relation to projected cncrgy require-ments beyond 1980, the amount available, accard-ing to present estimates, is noc vezy hrge if basedsolely upon the low efiiciency of fuel utilization inpresent water reactozs. On this basis, by 1980 icwill be desirable to develop improved convertcrsand breeder reactors to dcvclop thc full potentialof our nudear fuds and c'onsiderably extend theultilization of our nudcar resources.

F. Conclusions

The present report has been limited to theperiod to 1980, considers~~ essentially the watermoderated and cooled reactors. However, manyother reactor types arc in varying stages of devel-opment. Should any o! these concepts prove eca-nomically more atmctive than the water type chcresult will bc to accele.—te thc growth oE nuclearcapability during othis periad.

There is now su2dent operating experience onc Mn types oE converter reactors co provide abasis for confidence in t'"e reliability and Rcxibilicyof such plants for cen~ station service, and toencourage confidcncc in the ultimate attainment of

'ood economy. TE's basis oi operating experiencis expanding rapidly boch in terms of kilowatt-hours aE generation and in tezzns af the range ofnuc!car technology represe"-tecL

It is noted that while at !east sozne types oE

nucl=- plants can oc built in very large sizes,

the application of curtent guidchncs restricts theavailability of suitable nudear plant sites. As more

op ~fianal and test data are abtained, and izn-'rovements in ciesign achieved, this problem should

be grmtiy reduceIi the projections of nudcar power casts as a

function of p!ant size and time as given in figures

5, 6, and 7 are realized, a significant part of new

c padty additions will be nuclear. Areas af highfud cost will be the fizzt to increase their nuclear

—C395—

~ \ ~ ~

capacity, but when nuclear costs are sufficientlyreduced, other areas are likely to install nuclearcapacstyo In some cases t't may be that reasonsother than cost, pc:haps such as the reduction inair pollution, willplay a par

It appears that with a vigorous development i"breeder reactors, the fast breeder has the potentialof bei".g econotnieally competitive as wdl as con-tributino importantly to the cxtensfon of oururanium resources for the future demands for

electric power. It is interesting to note thas theAtomic Energy Commission, in a recent reportto the President,s stated that by 1980 it will bencccssaty to develop improved convcrtcts andbrccdcr reactors to convert fertile isotopes to fis-siotuble materials and thus ma)te available thefull peteauet eE the aueteer fueh.

'Civilhn Nudesr Power, A Report to the Presidentl962, USAEC> 1Vsshington, D.C

TABle '.4

Lovol of Competitiveness, Nuclear v . Co") Station installed 1%7»)9SO(After 5 Years of Operation)

e

~\~ ~

1. Yesr?hnt Placed in Service..Qutputo MWe ~ ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~

3o Type of Plane ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

4. Cstpitol Cost, 5/R.'hVe....: ..5. Capital Cost Diff'erenee,

$/K&e, Nudesr vs. CoaL

1967300

Nudear Costi180 200 125

50-75

1967500

Nudesr Cod160 185 120

1972500

Nudear Cool145-160 115

3~5

15801000

Nudeer Coal125 105

&. Cost Diuerenttal, Nudesr over~ Cosl Station, Mills/KWh.

Cso 'oil sSo pl ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

ho Operation 0, Msintensnee.

e

1. 1-1. 50.2

L9 1.40. 1&o 2

L7 1.00.1

0.5~ ~ ~ ~ ~ ~ ~ ~ ~ o

c Totsio ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

7. Nudeor Fud Cost, Mills/KWh(5 Yeiss After Inidsl Operohden)

8. Level of Competitiveness(Cos of Cook).

s Mins/KYlh(Itaa 6+7)...h g/nsBnso ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

. e. hssuehed Hest Rsue, Btu/KWh

1. 3 1. 71. 8-2. 0

3.1 3.73~28500

1. 0 1. 6l. 8-2. 0

2. 8 3. 632&18800

0. S-l. 1

1..3-1. 7

2. 1-2. 824-338600

0.51. 0-L 5

1. 5-2. 018-248500

s B—d upon e ltdm zaow adopted by the Fed& Pow Co-..snir'on 9: othe ofstfoasl Powe Survey —13 percent/yr.eaidtsl chere mt f the nudesr phut, which indudes rueiesr Gsbiiity uuu~ end 12 percher/yr. for the cost station;ptsnt fsc—,SO~ 5sr both conve=donsl end nudeer.

~ ~~ ho ~ ~ ~

17&

—C396-

TABLE lB

(y:

lovel of Cotnpotltlvonoss, Nucloor vs. Oll Z. Gas Station Instctllod 1967-1980(kfler n Years of Qperction)

1. Year Hant Haccti in Service,.2 Output ihilVC~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

1967300

1967500

19&%

50019801000

3. Typeof Hant.........o....o4. Capital Coat, S/KWe........5. Capital Cost DUfcrcace,

S/I've, Nudear vs. OilGas.

N~ Oil*Gas'180-200 110

Nuclear Oil &, Gas160-185 105

5&80

Nudcar OilC: Cas Nudcar Oil&,Cas145-160 105 125 95

40-55 30

6. Cost Diffcreatht, NudcarOver Oil 6t Gas Station,hgth/KWh.

Capttal o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ t

~ b. Operation 8t Maintenance.1.5 1.8''

0.21. 2 1. 6

0. 150.9

)o2'.40

0.70. 05

e Tool ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

7. Nudcar Fud Cost, Mills/KWh (5 Years'.After initialOperation).

8. Lcvd ofCompctiYivcacss (Coteof Od & Cas)a. Mits/KIVh(item 6+7)...b. g/mBme ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

c. hssumcd Heat Rate, Btu/KWVh.

1.7 2.01.8 2.0

3.~,03~58900

l. 35al. 751. 8-2. 0

3. 15-3. 753&438800

1. 0 1. 31o 3-1. 7

2.3-3.0'7

358600

0. 751. 0-1.5

1. 75-2. 2521-268500

t Based on c=p& charge rates adorA by tw F~W Power Comtmstion fta chc >4dM Power Survey 13 percent/yr.fo: nudcar smtt&a, whidt iadudcs liability hsumacc, and 12 percent/p. for chc cwvcatiod teton; phat facau; 80percent for boch coavcadonal aad nudcar.

179

— C397-

'0

LEVEL OF COMPETITIVENESSNVCLEAR VS COAL STATION>~ 1ghS 1980

50(after 5 yrs. ef operation)

20

IVl0 30

2:O 20IC

u 100

1.8 1.7

~ INDICATES ASSUMED NUCLEAR FUEL COSTAFTER 5 YRSe OPERATIOiN, MILLS/Kwh

R~4GE OF VALUES INDICATES VARIATIONIN ESilMATESFOR COST AND,PERFORMANC OF NUCLeeR CORES

YJC INSTALLED 1967I

1972

I

1976

I

1980

100 200, 300 '4 500 600 700 . 800

NET FLANT OUTPJT, MWe

SOURCE TABLE I*

~ iFIGURE 8

- C398-

y i teaseVolume No. 4, Held at Vero Beach, Florida,

'rfednesday, September 28, 1977)

CONTENTSL'HTNES SE S DIRECT CROSS REDIRECT ACROSS

Harold L. Brooks 281 296 302

Frank Ko~:a d 319 322

Jerome F. Kramer 362 367

PUBLIC lrTN-..SS'TATE~KNTS M Q3E

R. Dale Patchett

John. Z. Gallagher

2 2 'x

228

10

11

1P

13

14,

John S. Blair

James L. HcCoy

J. B. Norton

.Harden L'. Cravzord

.'ob rt 1'<; NcPazland.h

230

234

237.

239

15

16

James Verdi

Nary Barn y

248

251

C. S. Puller 254

18

19

20

Raymond Z. Scent

william Koolage

Lewis Z. Zallmyer

Myrtle Rudd.

258

267

269

22 Thomas Crelly 275

Robert Jackson

Zvan Z e K12.ng azIa i

Zerry L. Keen

316

317

—C399—

361

OO

CVaCV

XO

CD

5

6

7

8

In closing I would 1'ke to ask why all this unnecessary

procrast'nation and delay? Nhat has happened to Democracy?

The City of V ro Beach has the discretionary power to sell its

system to Florida Power a Light. Xt is a business judgment-..

The people of Vero Beach d sire to get out.*of the elect ic

businessi and it is costing us. approximately $ 300,000 each

'onth;..we are delayed.

I do not und rs and how the sale of our little electric

system can be causing such an uproar in Hashington.

OCD

R

O

a

0CD

10

11

12

13

14

.15

Thank you.

(Applause. )

PALMER: Thank you.

PRESIDING JUDGE.: Thank you.

(Trlitness excused.)

MR. PALMER: Your Honor, the next individual who would

like to make a statement is Mr. Jerome F. Kramer.

PRESIDZHG JUDGE: Mr. Zramer, do you 'ntend to make a

oi 8

= XC)

01 Fs

18

19

20

21

s atement as a public witness for the record here?

THE WITNESS: Your Honor,. I am appearing vo1untarily in

favor of the sale of the power plant, and if what I say is

persuasive, it can be most effective on the record as evidence.

22 I choose to be sworn.

23 PRESIDING JUDG=-: Very well. Stand and raise your right

hand, please..

—C400—

JERO&K F . KM~41ER

was called as a witness and, aft r having be n first duly

sworn, was examined and testified as follows:

DIRECT E:QUCZiTATIO?1

5

6

7

8

THE WI&lESS: Ay name is Jerome F. K™am r. I reside at

985 Reef Road in the'ounty outsid the city. I am a user

of the city electzxca2. service. I th'ink it would be useful

'o give some background in terms oz my auali ications for

assessing the situation in terms of the history and my

10 involvement in it.11

12

13

14

15

I am a practicing attorn y in Vezo Beach. I have a

'ackground in engineering having araduated as an electrical

engin er and practic d as such.

I was employed prior to coing to law school with a major

util'i y sexving the City of Clev land in northeast Ohio.

I worked. for the General Elect ic Comapny as'n engineer in.

fields rela ed to u~ality auipment. I was fam'lia with some

of the problems involved in competition, alleged competition

betw ™n municipally owned plants and privat .'.utilities.20

2l

'ndeed there was such a conflict in the Cleveland issue.

It was my impz ssion, based on that experience, that i..

22 most cases a municipality built a utility and attempted to

23 engage in the business of generatinc and sell'ng electr'c'tyas a, competitor to a p ivato utility in an effort to manage

25 or balance the rates. 0 course. it was also mv impr ss'cn

—C401-

376

Q What about the possibility of purchas'ng some

ownersh'p in a nuclear un', if the company allowed that?

A Nell, that is a very "ify" question. It is not just

whether the company would allow it. I think there are a lot

5

6

7

8

of other actors. you have to take into a'ccount.

that that is even an alternative that is even available. to this

community.

Q 7vhy is that:?

A It has not been offered to them, for one thing.

10 If it were offered, Mr. Kram r, do vou see anything

11

12

13

14

technically prohibiting such an alternative, assuming Rat

the city wants to put up the money to buy a small share of a

very large nuclear. uni ?' Zs there anythingtechnically'rohibiting

that'P

Q

I am not sure wha you mean by "t chnically."

As an electrical engineer, do you se any diff'culty

in the city sharir.g ownership in a large nuclear uni and

18

19

20

21

obtaining power from that unit?

A'n the. isolated frame of your quest'on, no In the

context of this situation, yes, a lot o difficu1ty.

Q <'hat would those c'fficulties be?

22 A As I indicated before, this community coesn' want

2Q to maintain an elec =ical system at the costs that. "a y have

to look orward to. They don't even wan to bother, as Iunderstood the i..port o thei" vote, tryi.".g to look for

C402—

~ ~

NMcD EXHIBIT NO. 26

3XT N

EVALUATION OF THE Ii'>PACT OF THE OFFER,BY FLORIDA PONER AND LI6HT CO)"lPANY

TO PURCHASE THE VERO BEACH

ELECTRIC SYSTBt

PERFQRNED FOR THE

Crn oF YERo HEAcH

I

rr,

g'

Ji)t v 1976

ERNST 8 ERHST

CERTIF I ED PUBLIc AccoUiRTAiHTs

ORLA>too; Ft oRroA

C403—

'a

8cIIIULTIIIIg, HDI tUclfg 'Hfgos IlLUIIALTSAHATg

SOUHCL'S " tHASg Off Sfly CCHNATIOH

Saaaae Alcoraass lv» ~ I'assllal ~ g»saal as

'I'rubabl1Lty ol Aclalau luggets Iwvuls Mlclaln »SX

of I'L'l,l. A $ )OO,UOOC»nasal I'u»4 Co»crlbutlon

Mlc4 I aa I Yua re OI»cus»lon Ossa H»cds and Octa»r Con»la'Ieraslaaas

~ I Suck ovc avd unc»r Into )oint vsaaturopover Iaro]aces ulth aaare favorable totalco»t coudlclAas tlasu soll-goneracloncoaa»I J»ring buth Cho f taaod and vartabl ~cost ~ ~

a»a»

O.l Soak ovC au4 obcaln futuru poverpurclaosa arrange»outs ulalcla vill provlJsfuturo pouor needs ac »aura lavorsblocost ~ Itornutlvus tlaan coif gencratlan,

54orc ter»a ~ I'usslbla no cia»ago, (111)Loug Cur»a - to»sible appruclaLla

Iularnvsuoaat, (1.4,)

Short tera» to»sible no chango (111)Long Curu I'os» I bio a»I nina)

~ Iaaprovsuvnc. (I,a.)v

Hoc tcobabl ~ (h)

Hoc trobobl ~ (h)

2 ~

h ~

S ~

6 ~

la

2 ~

h ~

S ~

Tlaae I ~ tla ~ aaajoc pru4lcu laors. Thurs I ~

apparently no Isaac diets opportu»lty on4 slaort-tcraa rove»us roalutruu»ut ~ uovl4 set ll lao»a CoLo uuC ~ ~ a

Dotaat palctclpatII)H uuuld raalutro addIClonoldebt sorvlca a hlcllauou14 bu a partial oil»»cto savlaags ln laaul cost ~ ~

Ocla»r caplcal ospendltvrcs coul4 I s reatutrcdCo provide for I»crea»cd Inccrconnsctlon cspaclcArraaagcaasaacs uoul4 laavo co ba aaad» for vl.»clingof puvor II ciao eyscsaa on ulalcla clac proJ»ct lsbuilt ls not ad)»coast co Voro go»cia. Uhcsltog~sill a44 sddlCloalal costs Co Incuaatng paverHo cvrr»nt uhsellng options sr ~ available.Dec ~ »code Inclu4o knoulcJgc of puaaar pro)ecc ~

being plsnnc4, dutorulnacloa of capital sndvsrlsbl ~ costs ~ decsraalnacloo of ubcellag costsco be Incurroda decenalnatton of traaasulsslonconstruction cagulrc4 ~ luccrcal ~ Clou»hip vl tlaVera L»acb syaccu puuor »usda, progress lur~ ttrllucloa or ~ asia Llatlon of tov»r plantpersonnel' co.llae sysc»aa curroncly lass lltcl~ If any noc4for laacr»asu4 pouar fcou che cellallllcy uta<4-polac Jve co tlae rcccnt addlclou of Uaalc ha ~

Ouclelons u a»i bo assdu as Io hou co operac ~

V»ro haacla s'ysccn ~

As self-generation I ~ s'cplacod Ly pvrclaascdpaver Ln lncrcaslng a»ounce, Ibc ublllcy topurclaaso oaa an scone«y basis decrees»s vhlle

~ tho aaauvnt of ours oaapsaastvo "firn"paver villlaacrossu,O»bc sorvloe usn be redvccd ovec Ilas long run,but not elan short cvn.As IHC

O.L-L Other csplcal cspondlturcs util larcgulro4

g.l-h Hlacollog wy Lo nccces»ry$ .1-6 Ho current nsc4 for Incccsss4 pouur,

Csea nocal ~ taclvdo knouledgs of povvr avsll-a41 ~ for aalu, price, ulauvllng con»Id»callo»osCc'snsul ~ ~ lon con»Cructlon, laccrc»laclonslalp~alch Vero buac4 ay»tea» pover needs ~ progcaufor ~ sslntlacloa oc ~ Ctrtcloa of paver plantpersonnel'cc,Oecl ~ lone suet Le wde ss Co lauu Io oporut ~

Veto 'goach pysccu,

WFLCOtG TO cÃBLIC

HANK YOU TP:

PRESS, FOR. A BZG ASSIST ZN CR ATZNG AWAF "NESS

11 BANK OFFiCES ZN TOWN WHO ASSISTED

THANK YOU TO TF" TRUSTE S OF OUR FZ¹ CO'.!!UNITY THEATRE

FOR USE OF FACZLITiES

THE FOHN OF PRESENTATION )lELL BE QUIT» Si>PT-

a) PRESENTATION Or OUR STATUS REGARDING Ei"CTRIC POWER

5), PRESENTATION OF AN OFFER IV2)E BY FPL

c) " EVALUATION OF THE r.PL OFFER

d) RECOKKblDATZONS

e} QUESTIONS FRON Trà PUBLIC

f) O'J"STZONS BY COUNCIL.

g) ACTION BY COUNCIL

5., HISTORY OF REC"NT COUNCIL ACTION

6. INVOLVZPKNT ZN PLEA OF: C

a,) RAPID ESCALATZON OF CAPITAL COSTS FOR PO'tP" R. PRODUC:

1) F99 DLY ESCALATiQG COSTS OF COhi~aPi,ZONAL :U"L — OIL

c)

d)

RESULTANT ESCALATION iN TOTAL COST OF ELECTRZCZTY T(

THE USER

DETERIORATING NARMT FOR ~!HiN! ZCZPAL SECURZTZES

7. OUR PROBLENS

a) LOOK AT AVAZLABLE OPTIONS

B} . PURSUE THAT OPTION HOST ADVANTAGEOUS TO Th" LONG T~.

BEN" iT OF THE USER. AND TAXPAY:"R

—C405—

8. OPTIONS

JVL a) 7NCRZASE Er™FZCi~ilCY OF PRES@.HT OPERATION

1) PURCHASE POW R. MiD RESELL

c) LEASE FAC7LZTZ:-S TO OW»RS

d) SELL FACTLlT>rS TO OT KRS

TERSE AND VPEZAT7ONS NZH CONS7DErHM

P. OUR DECTS10N >fAS TO "XPLORE TK~'Z <R~<. S -NZHGLY POST

ADVANTAGEOUS.

ALL FURTHER CONS7DERATEONS ARE BASED ON EVALUATTNG FPL

TO Vr&O BEACH ) PAST PRZSENT AND FUTURE.

- C406-

HlI'URE

LAST 0 7" ZS ~r ZCZHZC P~l:-~b:" 9:"TM CO!~~=UTXOW TO Gc ~ ruiiD >lAS

Z<Su—:=ZC:=-~TO ~~ SX,8CO,OOO aZZUVW TO C01~C~~ C~~ZT~Z. W~u:SZO~r.

2~ 1W~ ~~2, PADS Sl,000,000 W D~ SWACK rrt0&i g.2I4 BOND iSSUr„.

S~OBZ T:"".'1 1<CD (6 YMZ) TO LROVZP. rOR (1) M+VE )Z2 P»QZ3= Q50gOQP

ZN D~T S~ZC".

8 klj:GK JQ~ZJSZM >lOK) iZSULT 3~ $100,000 DCLUDZsG:-'iZiGZ FOP, ~ZzJ~CSYSTEM.

LOW. SV "UR 03K COKZ .4ZD $l'.$6/1,000 K'F2 TO Wx~~ P "YZ OF CAPACZT . ~ P;;ZT

V<w TO PROPS 'ZEAL CDXZ~.= $1,000,000 PLUS (COOLING TO':H PROB%

Or>S~~S ""'rlCwDCY).

6. 7 P 6 L ~~0ilS WCR" 48~MG SYS~i 5 FOR NUCL=4R POii~ 22 — 27~.

7. ST. LUG~ P CO< "S OtT L~u= ~~S M~K.

- C407-~i

~+

QUESTlONS

q. C T PO'v>M USE

A. B~ TO ~CCZ BUDG:"2 .~~

3, SAV "IGS UIIDW CQi"=~CL'> P~~~".

2. CQV23™I:QN 0 ~» G~<~~:-Ui<ID

A. PROT ~ T ~OUGi..:VIM~IT . GND-M VAL0~4 T~KS MID ~~C.ZSE r~.CM CChROL vs. ST.~~K PSC COIFL,OL

A ~TB CLZi Quota STGE H~"SHE'D"-ZZ'Jr, i:4S .QZZJZ ADVQC~ BBZGRG

KmmCC:~.~~ W"-~B ~uiIDcM PSC m"~ CE~~ CPSNCT ESTAB'~~ P~~M 1 A

.QPB. P~Z?:"CT'"."

B. RA~ '~PP~ SY COiiISULTWG fG~S.F»~~ AD VALOR~< T'WS

A. 4FiDED TO GW~~~ OP~<i.VG COSTS.

B. APP:"'~S:W ST&~r~E WZZ.

>BC'" '-6g ace QF CL~ AD VZOw4 T~

B. i.fC~~E Zf ~E ON LOCAL ~~4..

6. Wr.O 3EAC.= FG."UH" R.C~S

A. F10 GU>~

B. LQV S~UP,.

C. D~ S~rw CE.I

$ 12N Issue81. pi~i ssue

$1,000,000.00/ yr.ggO,COO.CO/ yr.

D..OSS~ C.=QIGE Zf QGT-C~x SURV URGE.

E. POSS~ WMMGE ZT RAZM TO VAR QUS CLASSES OF CUSTOi~

P. ADDZZONK CAPZ'AL i~S1) P'K ~CFGNGZ $7/0,000.00

—C408—

PAG" 2.

G. GP~c >iAG:" ."-ZlD PURCHASES u&clABD ~~Sly.iw

T. FEZ 'rrr~Z R.~~M

A. NO GUAM~Z~S.

B. PQSS~ LOSS OP iVMWK4L GAS-

C. ST. LUCW g1 QN T ~a Zf i~ 1976.

D. UFrjAW . "SSVP QÃ VAG:"S Xi~ID PER'Q~M ~

8. LOSS OP LQCM~ PGRCr D~iG POv.~H

A. r PEART TO OPHf DZS~i'CT OFFZC".

B. POSS~ 7'VxG3" LOSS Or POSED@„PMi>x SP~~<ZM

C. CO'Z~QD~:"S PVRC" 4SZS 9~~ BfSZVlmZC~

, ~ ~

—C409—

HLSELL

(PM l OULD i! Sc UHL) S i CRCM DY Cov~ ORD)R)

DECUMA CM3G-

68,coo r.' $~.78Bee&':"4ZGE

1.94 PDF. o 2')goo,coo83K ADJUSTiK'x

.18 /K'r~ e 2q~,=co,ooo

PUR~E COST

Sq,089,480

4) 4/2) 700

~)),ciao

87,937)120

Pob~ COST

BPGR.

GUSTO:W S~ci aCZ

Nor -D~~~w~~z (25$ )

GhA

v~7)937,120

$61i700

7)100

18o,cco

lg7)500~47, 700

A'971)12o

TOTAL COST >ZSK~vG NO 0~i. SMV CZ ~~8)971)120

ASSUi. R L 3, C ~00 000

89)471)120

OULBZC-:~i S~7~~~ LPGA'2:-"r i~a.

AD

VALOR'7)800)000~787, oo

$7)012)5001%,000

~~6,872,500 ~6872 00

82,598,620

—C410—

APPENDIX D

THE KEY NEST CITIZENMarch 5, 1956

eyM'cxpaaQ ouz'1cczrtc'systemut"1 thc . expense -of - io'cal electric

"3f'the Nivy pu0s o'ut or'cuuti.~'

own~. which. hoWippcned-be~,'Pro> w~ ', will still"have."to'~y,'

oH the,'electric bond hsui,'1nost;likely":.'ith'.gristly increised

~ iectrlc., rates to'.people who'would hayo afroody., been '.sub'-

'-jected. to o "foiteriny economy"'he 'release 'o id.:". „-:

",Bccause of,these facts,:I havealready''et'he'wheels m maQon,relative to.thc subject" FernandczsaM.~,Thc prcii rcleise addi'.d thatprcseriQy.Fcrnandci is 'yaiQag for

~st. tnformaQan from Q. S. Con~grefs'man "Ilantc".;FasccQ'on the~

gewinheg'.iafd, ."We have iso-%ted city.liad on Stock Island thata!auld.b''deal 'for thc location.'Ifeei..c'anfMeat,that the:city uould.gladly'!donate the "property as acanstrucQon site.,r:: "..:.

"Engineers hform me that ra-dio.' acUve wa'ste materials cancailly be diipoied of 'from thisarea iidthout aay daager to ourfishing areas," the release

saldo'Fernaadezsail that he was.is-.'isuh1g the press release to'dispel=ay rumors on the subject and toCIarify the siuaQbn.. '.,'.". ', .

~ n. '!

City'commissioner',Qde 'Fc'raan.

jdcz sai'o5y"Sat"he.'iai-b'em4orha scherzi i'ceits'aa'We'.posy

sibGity. of gettmtg anatomic.ycac-.'tor

belt ia licy West'foi'the @va'-

po e of making, elbctricityi f'.-."";.".-'n

a press.zclcaie;the'commii-'ipaer

dcicribed"th'e liter 'Kio'w-ledgc~ the" iit'aatiaa '-.as'. being"cncou aging ."E«j-'~ .«1 g >!. ilaw~.

'Fornsndiz,:satd'he",f! jsl; cori .

tactid inyineers"an8 jppropriato'".people 'seato firn'i''ayo,;when hediscorrred,the. >fsaeril: yorernmeat vis 'seorchiny for locitions''for.buiMfny experimintai plants .

in ttf!e. Vnited 5tetes,,. Acgldiag'. to Fcrnandcz, hc hascontacted aad consultel with Ro;bert,X:gite; prcslgcat and gea-.

iral ijaaagcz'A1f Nc!Florida Poor-'r

cad Eight'Company,.about theirfatal atomic y1anscanti the

passi«'illtyoMka'.!itamic..pic) m KeyVest dt thc. lowe( Eel+~.('~..'e ~

FPP is.already'!va-.i'm anstymie.'lant'.u JQ „jQ1er dewey

«After stud jipy.'the situation,'„).1 sm convinced; 'as'others har'e,!b'een'..fecontly..."c'onvjncod, that z!

Koy Vfost!s tho moft ideod'spot|~n the. action fpi o test reictor->'So bt Jilt+>r pu'rposes of mak 0

~fny.olictricity,!'Zirnondes said.~4i .'Ehc prcsi release went on: "Bc-tcause& local ecaaomy,being Qcd

tin very:cia ely with thc Navy's;develop=.octal activities here, andiMc present. +,6N,NO baal'ssue,".'nn experimental attamlc'reactor !for purposes of inakhg C1ectricity',

L

would bc Meal for aur situaQoa.'<Fctaaadcz coa!Qaucd!. 'Evfn'if itj

,fuvaishcd Navy power aalp,'kiwauld greatly rcIJeve the pressurcslof. the necessity of borrowing

moa-,'fualt'ou

Called Eiicoura~iu~..

„'L''jLIt~''":- ii -',-'.-".-'.LI',"oui'i-,':::.'." ':

'II;olnlC."-, CRC OjL'.":;:, 0t

".:"4R

Trom an a&icle in Ae Vero Beach pape"-it looks Lance they are thin~g of maMuxg arequest the s~e as =ort Pierce fong4f~c'-~energy plant.

@60~~p gg g6

LxcidentaQy, the Te o Beach Cityh[anage 's nance is Eugene Lyon. X believeyou.3axow ~ as he was formerly in CoralGable s.

D2

~ \I 444 PA4t *$2 8 oo secs ooose

CLlPPJNG SHE T%essa t» 3f«a Xanoosot4ttotor 'res

)tosara to lt tt ltonoea4 Orrtcs M~ Fto =-D Once

Sss Ve=e oisces p=ess Jeu=~ oopses FQR

VVtstt~oo CtroalactostttaMorsaaaoat Roooro'rottoes Stsoatot Ftto

.-. M il'~k.the 'invest ent ofstnhng„fund,mnnfyr.'

'ISCV5SlaHJ)fscussfon -~f the 'azfoasted=ee"'"g 12St %day

The Cotmc2 also sctotfon bond or~sancc

changes to able the CQ'l: bo~ ~.OOO dt = t"e

on~a 2gamst ef~~cvc uc carat ngs ~ ' ~

~ 'e~e xWO mOVCS,2re" baxedpo" recommcncauons 0y '"e

Kayoz's Tax ShbL'Ity 2nd DebtSaf~, Co -'teee..of whicht'; Ziat 's ~wi" 2nd

by'hecits 5"2nc!21 'dvise~'y, Vroheefc. & Aller„ inc:

C.'r~sdoo " .

V. S. ~I AT,ONCE

A tot21 of $350,COO a

de"='2i Ls"" "< An CS~ted~ M "00 wU "c udgetcd new

wtth ln cs~~tcd %CO ~

000 .'= '"e LOA pcsr.

GobbIIng u p pzevicuslybud eted:tcms or s-eet Ifht.

-w=c KM.OOO spent for.I s th 5tr t be2Ch " C,VC

2nd '"e 'outhwest'sac ~cs a. 2 2nd OOOO

the tie A oMC eo

~u cQ. 2n Jscx Zcphgs'd smt the. Coundl ap 1

done 2S'SOOn 22 pOSSfbfeo Hepointed.out that north U. 8 -"L~'P s ect Gghts,phased bythe'rope~ owttma before.tftwas "wldt cd scvcts ycsxseggdee

s' ORDfNAHCRt CHAHCcs.s

~'oonfis C: bceuf Jr.'f Or.Iandd.WaS prCSCnt at she meet.ing 2nd submiehxt.* foui-part

s cotnMdatfon calculated tofan~'tate. th'e sale. M $3,000,000in reVenue CerMCsteS -s~

s

. Etnc. 2nd'YLMLOOO thefollow-'ng

'.June. Mcy ~e adoptedby the: CouncfL sand vicre, tfnbxie'Xs.R~ the net Carningat'o-c,co<'he deb ..payments

by.50 percent!or ohe.past twoyears mthcr than Mce yearn'. Orderly. sch~~e of.pay-ments into the essive a~tmtof t"e stnsf"~ 'tmcL

3. Recfufrc th2t 0 percentof the net revenue of the elec.'=;c. system be used either for:c"ewal 2ttd repfaccme"t or torctfze oua~dfng debts withthc Mafnf"g SO pe:cent to'beused. by Ae city ln any IswfuImanna «

problems governing thc above.brought"i ~ mllowlng: com-

~ ~

-,.City"Manage 22tgene Lynn.Spcfte fn faVar.af SOme.~aodfarzactfve 'iieet Ifghmg.,polexathe."" than.'remated. wootL:.

~ .He~a'fd 5t Js his oplnton eAitit would be dcsfxuble to reducethe ennuaf contributions 'f-ome>essefeeeiC, X CVenue ~d td'thecity'.gen'eral amund. to,ypproxi.mately -equal', the .'.~chfsemoney vshfch ~ould:bc'pairs tothc city ff:2 privmepnver com-pany'p~tcd~~:,:-„'-:,...".;.

'Mayor': 4Efut ~ said thats',thenew" 'cfcc&c expansion 'ro

was planned ta'get awayom the.previous'abit of pro.

ccaQqg..ham'. ~ to c~with "cwsh". pro~

Counmlntaii C. Reed ~dghtasked" ff'be'tew plans haveany built& brakes in case ofserious iecession 2nd 2 de-crease or fevcfttg "of. in de-mand fox'ower m acro 3c2chAnswc was that'bout '"eMe the new ~CO fdlowatrsteam plant.'gets into produc<tfon.the engneas wfQ be neecitMg to start plans for the next,

se

'A LDyear xCeet hg"~M'ro. Prove'II pianS fcr ~t'E t'tg~ to cmr R'*0.000, 2II 2c- tttg 2nd Councflmsn Bob-:~e *2 ed that the metch of

U. 'R -"L. fzom MLwclc'IICea='gS waS Lu"2ted by the to the norA city Ifmfts be 1fght-'ero 3cacn.C.> ~ CotmcH at 2

~htch wfii hhJy bc. LLNO M2n'd that if.. the .d~~- d hasslowed'he phnnin" catt slowdowtt accordingly

s~.':..

City Manager.. Lyon pointedout . thar ave~ consumpdoniof,power m We- Or~do areais 5400 kwh pc .ttfer pe. yea."„

tL"that it is atm:P,'250'erc,!withp'pparent ~.~xn ease.'.

t;~Auncflman Scn'w~'ed.that ~e begin new.'h taL..C'everystep yossfbfe towbmfn

caitnent 'ced'.<'2'nwcs"sosoo oiooi ios&e eoeGessosssso. ooo ooosfoo'iiioo 'SisswffI bo opened~ month...Question-waf'"iskcd. ffi~ores

s42n SL000,000 tn'street'lgh:-'ng

.'wfiI .not-..~catfy . inc=easethc.,ctty's cos 'or. c"~t forthat'Ifghffng!~he 2nSwei-vraS,..Yes." but ftlM alee'.Uerbs3esch . the best: "ghtcd.- s=211city. m F1orfda=.tdot2I of shout%,000 pe" pear ts now spe"t.'rlando sold circ rcvowuebonds 'this month at '3.S3 in~

tereSt rates ItS Wtfng 12 AA.."V~ Rcsch's zaxfng on its

elec .'c system fs 3AA. It ashooting foz an A.'Its present'.calculations are that the

wozstt'ute~

rate it will Ltkefy havctto psy 12,4.s5, hue ail conc~cd j2ze hopin to bette" that'.con-ISfdmubfy, 2nd tO 2VOid. "Csissuance of -itmfoz". or second-}mortgage:bonds

03

~~ i

~hi)g il

UNls~ SiA~ATOMIC ~ERGY COMMISSION

WA5HINCTON M~ o c

I+~ 2 fS8f

H=. Alex ~~Gene»~~aw»o~ %~%i ~ o~~» Qsocl at< cn929 lSth St ~t~ ?f. V.Nash'~ 6, D. C.

~s ~m o adv se you ~t the Cc 'ssion has decided. not toaccem ~ o the ~s~ ~» c~ecticn Wth the ~~

As ycu Mcv Ae v~"' ~pcs~~ ~ "ec»t chide t"cnm e "cse ~~''y the C' Js es =~ Vev ~c"I ~the M-g~~- ~eve" Ccaye~t've w Wsse V~ sccnsw. Lxv'mr ~ ~e adve=se "evimr by ~ c the sites '"'~~

sed., these ~opcssLs >~ be "evise'o =eflec. ccmM-ew"i~> a~s~ cut o ""e use o site~a e sites acce~>leto ACBS M as such ~~~cd'"e4 un avc. ble cast act s ~ to

>e —o'~ >scms'cm ve e he~~ cr'th ~~~land. and, < +

Za s:~m ~ ~:e M60, ~~ a a ~ o esclve cu s~~cb'~, but ese ~e ~ucces~.

.'Iec " s "'es cn the c t situs end. eccxcnic pollen'o'ize

nncles= ".coeds i d'c e =lsn s based. cnex's + temcg c ~~ s=e not econ+i~ a~<tive«c ~ ut'~'".ies oec~e c "'~ capi~ ccs s a"d. zes 'e-'ve s'~'"" -~m ts. 'Ee ecc"a'c Ment&. ~c such

p~~ "ts ~ c > ~> specia""& actions does notames= avc. ble at ~Ms t™~. Lx vier N c~ ~sis c="e s-.~"™s ~ ac-e=ience M " the ~R —object it is ccn-cl''~~~ ~~. ~e~ v-' ae Saic. use uy m—'' >lecooke~ 've a ~="t would. not be ex~ted. to ~e a~ira qi enjoy s~ ~i~<~an~ c~~~bL'~~ cn ~c ~g» acyl +ve ~» c

gave~ a~1 4 ~'en i~ +'4r( s s4 a w @tov~as to gus y exae"d'~e c "e ~ necessa~ to c~ uct-'~e —.mph't""'s .'=e.

D4

~ c + abcve =ew~cus the SBB u."o$ ect 's be~~" tempted.. Ve

,shc- d. ae:c axe ''eo= at) 4 KLce~ the mesc.$ ec., ve a=e at d'scc™t~~~ cu p."~~ fcr ~~ ~e=

"excels. Ve >~'an~cue ta uu~~~ such "csee="> md. de-1e a ""'s s'"e ~e es ~ be s.uu"c=' t"

e "e s""'eve= t c eccum'c 'ucl.es= weve

A~ed. yen= ~-~~t'a- 's s. capy c s. pxb3'c an»c.-c e»."e ~-'=e M~"" ze expec .a msue Wt"'" ~e ~ex ~ ~~s.

~e ~~ ycu=s,

K. Pi~~, ~ecta-Di<~icn cf Heac"a Reve't

~~'su" e:c~ c pro" c s""n cme"t

D5

D6

~/ rv

D7

~ ~ ~

0

DS Ar

c

~ ~

\

4 l rJ.'. C4 .r

ge /H~ili7g

~ ')

D9

oe

J 0 ~ ~ +~~to ~ t .g I I g~Q 'Qi] ~I« ~ I g$

(~> ~l~

~. .ZUlS

f4. SCX slQQLLUJAo P CR)o* ATQ<

/ )|S SSet

)liw)s toe ~ esso~t> ~ owlSN

I

OCT 3 lgg7 i~ )~~as

Tn~)JRY0-"+~Tb<CNT

meIISSr)

)CISO4

i l

+144 IIS(

I Ittt~ ~I

)C~sttttr.tr t

I IeSrtS

e'I teton't

L4s(4r ~ ) fit~

I t et II '' I too ee ~ ss se ~ ~ I ~ l

Qc b= 3, 3867s ~

~ e

f. ~ ~

«1C «Coscse Q~~ Q e Pes

p.dg c =celeste 0Pm-scn, C'"y b~n ce"

~ ~

28? Q&l se

T+Mks4 V~~~ ~1CQ

S kteOy ko keg'. S ""=we. T,e Or:'ly "-CV&14~~ p'~ Zg

YE~M~Csis

SC IS>g1 gC «C kg o W @gag Q Q QCt+N~IS g 1Q 'l le

at th" "au-'t44t~-.e c= c''a=ts cc wascc Se=v'c4s „~c.p Qseoe+espl Sess &g wJs 1 toe+ ee % Js gg ( g Is A IS gesCeoeos~~ aeeC ~@%, Ssewes1e

QCStc» «» a DC4 . 2C>'4'" + ~+ -C~~steac QCl'C'

~ ~ Js Q M Ssis Ss lee7'ca l.Ml =4cal'r';.e. lra ~4t ~~s~~ ~~at ~".cCc'ss

toss esto~I 4S+1 ee~ seo i~pc'p gl les o ao1 1 W< 4 s~ 1 e s~ < ~os

C * Ironic 3.CSP r''er™ C T r aC (':r Cl tvv

C ~ 8 C leasQ 'v . P S m i;8 PZa,V8 8 . lCi1 ST1% a ~~ «pCSP.l ~ P6t " t'Q tc ~+i8

CCV8='g &~a-~™"—~~ C- ~ hCL&aZ18 CC-.."-ZC"

~ ~

v ~ 0+ ~~ ~ t 8~ QB ~ Qt M s~ vct c~~-c=cs Ml

' s>~~we, " a~P. ~ ™ ~m se cs sc-' r= 4~™Q..1 g O''Ie ~~ C +%messrs

mern

m» Ss ~rt Ce wg4s'leks ~ ~ee 's e os e ees ~ ss 'eo» uses m~ 'Os ~ es Ossso s e ee

+ et eess» M~ASR. I-

4S

c Sss,ee \v ee es C4se 1,'SC ee m ~m'wt ~ g Nse g 1 sS 'l S ~ ~

p C~~eqIsi «ss posse

SQsewr~ee'»e ~ee I«S «s

IOVe\\ tee% e 4 ~%so e

~ s ~

D10

~ ~, t

~ ~

~ ~ ~ ~

~~

o- R. ~ —"'"scn Cc"ace= 3, &67

''

~ ~

~ ~

~ ~

~ ~

ciz siMc ai seve c 'lrs sa ce 0 "e a- ~v" yaa= sys m he Csee ' ~~.'~ac a ax'Causa' av

e c- 'ease. <fau~4 '~ he a~em'-Le ~y vp~s l 5~ » ~

~ ~-~ ~

4~X m aL". w~" ve have -av c .>Le e> a'..vs'a~ a z I

seQ A A ~~~ace an 'n ie canBec»»cQi 4'r» ~1 yaQ sos 8'R at a%a

seccrA c"".ec-''an pc'a" a.".8 8:ai as au=5 as 3 OQQ 2'~cva,+ 7$ 'l+e CeL've=ec. t>-cagh ~e ne.r c-nnec cn. Me c.a=e,

~he=e a" e a pLe ph„rs'ca.L cac''~~ as t:c a'a av ~~~ ~~~yeux .re cw ..e.".a i ~we er ." c~ r "y

A»ea-'c ~ c cve aaP '' MCQ~e ~j s ~~i a'wc

s?.ca~8 a=use, v ~~3.3. r 3:e a" e»a ~ " c"-poooe + er»an apseyak nee»Wa.~e y a- n aPv.'ce =am ye+. ~ ass+ e yau "»

ha.re -c canc w a~ he: a v„:"5cu. a=a = v~< > ~re ~" p-e-™

L 58. e 4 icv- a~Le a ~D ycv.

"~ se sv.c=estaC. cz" s a e agree

V'4 Res 's shes,

S~c «Ly yc '"s,-/

(~t; Ii'y

Bake~ - f~ eP es»e o: tHn ~ '~~p-.

w ojc~ ~

~ ~

~ ~ W ~

W

PCS~ 03 =AS OP ~Z SY K ~C

c~ Zev ~~ 3eac~

~=~e~s '" Sys m Pz" st~~~~g M Se Hce

csscC c"~ Rcvc e

As~~e ~Lcyeec V'» Sec '~ ".a'" Weave»

— Dl4—

Si '(Q( 4 RY O," i~ ORIOA POWDER 6 LIGHT COMPANY,REScNTATIONSerore the New Smyrnc Beach City Commission

:h G. M"Ihoflane,;"."'„Groua Vic Fresident:

"7.-.cnk you .Fcr pr"vicing us the c"po~nity to speck to your-„Iimincry "r""cscl For electric servic ... fcr purchcsin" yourz ~rt cF,"ic.icc Power 8 Lignt Camccny .... Tne presentation

N

tonignt canc ming csys.em cnd ooerating ittonight is cn inFormcf

lichcef C. Cock, PPL Trecsurer:

'We es imc.e thc, Far the i months ended April 1574, the cmcunt paid by New~~., r..c 4 oh c stcmers For electric servic wcs more than $600,000 in exc ss oF whatthey wculc have =cic using,"PL s r tes. Accorcing ta our estimctes, cnnual savings wculdhave be n over 532 sor ycur cvercge residenticf cus.amer ... cnd better then $300 For yourcvercg =ammercicl customer. That is the kind or savings the consumers would hav'e enjoyed,even c,er allowing For the cdcitica'oF c utility tm."

C"ck s"id PPL ccn crovide mere dependcbfe elect'ic service ct lower cast than the cityu'Ifi'y "eccuse PP'L hcs greeter power plcnt capacity and uses c wider diversity oF Fuels-

. cil, nc." r I ~ms, jet suef "nd nuclear Fuel .

"Tne c.—.-ngement thct we envision " Cack cdded "would provide inc;ease'd municipcfInc—-e ( ~ . cs much cs c $&,000 inc;ease over the city's current revenues, with cdditional>ec'fy inc.eases Pr jected ta;allow. And the prcpcscf would provice more income ta the.'.i, while recucing ~xes, when the municipality's utility-refcted bcncs are Fully pcic ct=,.

"Lnder,'he =reficincp prcpcs"I, PPL wcufd pcy New Smyrna Heoch 53 ~ I millicn ta-"'-'y t cse assets = the Icccl utility which FPL would need in order ta serve the communiiy-

"'- wcufd Invest cn cdci icncf sum cF ua ta $2 million ta inte rcte the two efe~,icsystems ~ >re city wculd call its existing elec..ic cnd wcter bonds Fcr $6.5 miflian

«fc issue SZ„million cF new revenue bonds. Yne inc;eased tcx revenues to the city"- =e more,'hcn adequate tc "cy the cas'.s F the new revenue bonds, At the scme time,

'."ecple =: New Smyrna wcoh would seve mere then $600,C00 c year on their efec..ic bills."

i ~ <ur, P".-' rsonnef Dir ctcr.

'IF the New

»t ( ~ 'e»

Sc-"yrnc .""ecch ele '.ric system ec"mes pc cr Plcrica Power 8 Light Company,existing system wculd be arne employees or F, L, As c memaer or ourTe;, ycu weald be cHere

'jcb with wcges ecucl to cr bet,er than what

1

~ur C="-"cny believes,'hct em"Icye s sncufd ce consid .ec For c career cnd not 'ust c~ ~

"'~ ~ F I I u cm Icyees hcve c'. Ie st;"tve yec s oF servic ~ And

'-en'cve ""~ =. -..".e yecr:. V/e eef 'hct this rertec,'s the jcb sctis-'cation cnd jcb»~~ ~

~f

s c d w»e I( ~ ( e c ~ e(»er (»»»us~(( g )»»o( (»( ~ c» ~ »w ~ »I y( ~ ~ ~

D15

~ )'

~ ~ ~

~ ~ ~ e

HCC/JLH. 7-3~7'4.

I

P~~S:-h AT:QN TQ CQM~:SSZOi~RSOF

~ ~

)AUD '

1

he e and ha.v~a."c you M=. M~~ .o2.~and.. Zm goad to her.c oppoz'..'"y'a speaR "a vou on th's m.t, e

given- cans de=ah~e ~e c8 ti:ann "~my ta came up w'

a p=cpose> a=a .cemen~ "a would he hene=icia~ "a a~'-"~le pp ~es ~vo ~ ve6»

I

o~Ce» "a pu t~'s presents~on "arete "an: gh we

Ne have

use cern =i1~ hy your. u~~~i v w" M &e»ede=a3. Powe=\Cora-'ssian. ~ addi ian a dais 'o ~ ion, we ah ame6

cansice~ehP e Qp~~ ~ o~ Pzyz Z~~ ~ Ca ~ cP y~

~ ~

'"=o w-'ion cansis ecK o" fwancial s a.temen s, cie-ail.s an

c s"arne= .usage cd. evepues„ ive cry Use, a c ent a"-esche""e c8 ue1 adjustment:, an6 basic employee date- This

o etian en~ ~ each us to develop in some Qe~~~ t e propose '

~

aa't we p-e go'aq "a p=esen ~ yau tanigh . The caope=p ion~ „~

o~ M- 3ucR c6 >my, Z~~ in suoo~v'".g ~e da"~ we ~e«es-e~h

0

made anich 's pr sen"~ 'on poss~1e.

POSS:3 = OBJ:-CTZ7=S~ 4

0

s ~~'nq pa'"., we ~oat:eC a, wha

ch~e 'ves c Few Sav=na. Beach mi~s he.

ae pass~'

o ~

~ rXCC/< LZ7-5-74

= TifAMC:A = RES:-HTA~ZON TO COi~'4:SSZQNZRS

H" 8 Si~~&tA B~C=

tAwD 0

War < ~'«C .a~ «~ «)

~ Q rrdtt sr g

« ~ »~r%«

~ «

P3=S=N'2 S:TUATZQH

~ ~«r'

'ag a «en «i on > we canc 1 nQe» ~a «a ~~ ~

l1eas "".e p~~~ objectives woe& pz'obah1y be:

)~,

1awe= e1ec -'c h'11s "o'r ~e" ci~irens and businesses inHew Smy .'a Beach;

=ovemenC in sys ~ =e1iab 1' and, se~ice;-4

~c=eas'~q Me m~c'pa1 =eve.axe; andI

'assama ce a . a'- emp1ayee "-ea ae"C.~ «

Ha =~~@ ~m his viewpoint, we examined. tie b esen +

s."ua" an.~,

T~+~s exanLna"ian was hase~ on 6a a o De 12 mon hs\

ence> Ap=i1; 1974.r t ~

\Ou.= exazuhxaiion o Hew Smyrna Beach cps arne= accou~«s

showed a '"z "ee p=esen si"saba 'an was. such "ha"

c.'r. "s an6 has'aesses in New. Sm~a Beach we"e ex er

hiqhe= e'ec -'c bi3.1s "%an "hose o 'c"s arne s af ='PX-/

@=ac=. paià o= e1ec 'c se z- "e bv'ew Smyrna Bea h

c s am s was some $ 600,000 a=ca e= han wha" they

ov > have a's e -P's a s.~ ~

r~nL»rv $ 1»411 4«5 r«o««»»az O« a1 ar ~»i C«»«» c 1 r'V g~r< + C> «ja Q+ «WPS

Ct's«K c Q "e se=v ce~ bv ~eQ«'«p

«vs or +»i r Sa . gS»»rrV 'gr»yVpqiee ira $ 1(4 000

C'- 2 man ~LS ~ .Ce»'.b

HCC/ZLH .7-5-74

C:A PBZS=NTA:ON TQ CORES ~ SS:ON:-PD~ ~

0«N=R SiMYBNA 3~C=

CAVD:0

~ «+««q «/W«««&V%

Of cou=sa, "he=a's a'so Me c«ues"'on o= avai~abi3.itya"6 @=ice of fue3.. .Re unde s and -that na~ a~ gas now used

as ue'" you= steam un't 's unde= a can =act aha cou'P ber~

end.H ea=iv m 3.975. At ~t point, a. ~net p-oblae ray4

ax's anP you= =ue'osts wi~ ~ p=obah3.y ~c=aase fu .&e0

The oae=a wc e"~iciencies o-" New Smyrna 3each a=a

''-''eP by'y system's size wh'ch 's Limni"a6 by Me

a~p~o~ e a=aa. o= 'le c'ty.~~Me~a~al you now have &e acav'ais~-a~'ve and - .

custcme= =alations =asponswi|.i 'es associata8 w'"" m~agan e'a ='c u 'Z.i y. ~ 0

'>le a su=a M 'we=

ccnsica=a~,.bu mesc a=a

a a=a o he=

some o" Me

fac ops Ma 'shou~2. be

items Aa we-a

=aac ' v a @a=an to~

~

POT:-HT:AL GA:NS

' The ne~ s ap was "c us w. ca alone0

~ ~

cai."s that m'q.". be aa'izaP "'= vou we=a

's ac'= the p= sa" music'pa~ sys am.

the potent~ a3.

~ ~

~ ~'

HCC/J T.H7-5-7<

MATC .~ PR:.S.3 3T:QN TQ COP"5:SS:Oi4ZPX~ '. QZ

Vi-ci Si~~3"fA 3~CH

l

II

Szc! t

~~

IA, 0:Q

�ha ha JeFfe a-oje t "hat you would.acu lowe elec~-ic costs.

served bv =PL Ze customers wou1d be bM1ed a" s~da=d~ )

I=-PL = s'which a e, set bv tee Su e Publ'c Sear:ce

C mz'ssion. He've a=eoa=ed exam's, wh'ch we'U. d'scwse=, "'set show ~>e=e would have been cons:do able

~ ~

sav.'~ps on e14c -'c bills R'=~!q Me aas~ yea-. Ne estimate'

a sav"'ass o"" abou $ 32.00 -amorally wou'cK have been =eaZired.~ ~

by ae aVe=aqe ZeSiden 'a1 CuSteme uSing Me =ateS and ~uel

adjuster s '~ e"=ec~ "oday. 'z:d ~Me ave=age comme c alc"s c e= would have saved ove= 0'300 d!-~my the past l2

« ~

+ st q«ll e

f ~ e

~he a=a.yemen "Na we env's'on wou1d a1so provide K".e

C' wi"~.:ac=eased revenues o me Ze g ow'.c fiscal0

ne s o=" Hew Smyrna Beach. 2'ou c'outed. ece:ve pe=haps 'a 10$

a ye~- '"c=ease 'e ma icipal =evenues ""-om ae e1ec 'c

~ «4

sys «4M

p=oposa~~ ~

ma we'11 ~e w:» p ovide =o= '-ae 'a'4Z4PL S «!l«irk e 4«wm «~«sa «O «PCS l«O« «a l ates gegt ~

a'!g c~! r ~ca tnen be e~ A g h evenues~ ~

ce.-. = " .==a... =~ 's. c"e=a" on o= tne el''c = c sys em. l«

4 egl

tJ« t% \ 4&4 l% ««l f~r ow«oS

Je ««««e «14 4

Qu oses

Mevenu4 s

D19

it.~WC: ~I

~~~S:-3 ~.:Ob TO COP~:SS C'i PDor

H~rf Si~'Y~ L» ZMCH

tAVQ::0

Ano~".hr =ota~t'~ qa:a could be 'z=rovek svstm)

= ''a>:l'ty. You would have at you ...disposal Joe full,i%

apa:la 'l'tv of ==5's system «esewes. Also, ov broaP.

ceoqraoh'cal d's~-input'on woM~d proviPe. for cu'cke svstm= s ora. ion a" s o~~s s:ace we can move ex='a c=ews in

~ 0

fro~ othe= a=eas.~ ~

He can provide.az ma oved =uel outlook.'e have a w'de

='ve=s'='cation o" uel sou-ces. FTe presently use.res'dur'

oM we have, na~~al gas zznder ="'m con~ac~s exandi'zuqh

l989 we have zuclea- units on ~e at. ~v3cev Pom0 ~

a c ~o ~~:ts unde= cons me~on at =-u ch'son 'Tsla".d nea

9'erce; we use P's '" ~a e oD.;- a P we a=e wo=3caq o".

p'ans to 'acluce coal as a fuel for go~~'-e use.. TheseIcivers'='ed =uel sou=ces and ~>e ab"'~ 'ty to use 3.ar„-e

e=='c=en =ower alants. result 'a lowe overa3.l p "'c s.~ a add'tion,, se~ ce by =~o 'ca Howe &.Lieth shou'd

result '". a" '".v~ ent o avoca''= cua'v s ec we wou-d

a". 'c'-a "'".a '" woulc soon el~".a e 'xe need c=

a

~ ~

gener»-' .. by ™he 8='esel "ii"'s wi"c.'" a=e loca ed "ae

cc4 a=ca.

= 'r:cB. 9 owe- a L'c;"" ooe-a"'"e "-'"-e svs=a~r

C g gout y & 0 4 e ca~~ j ".nvolvec a zvaa ~44

a@4 0pot +evg vvvg ~ a pic veuig qeS e»«C aevvC ~ ~ iq't4'v coe=ation-

- 020-

MCC/gLH7 5 7 a

-:N.~4C:~ 7:=S:-7 . =:0 f TO CQ~~ SS:QN=BSOP

H=R Ss~'~&fA B:"AC:-

IXV~ «0

t~0

j

I

r1

0

PG~h™:~,AP9ANGK~'=V~ 0

~ ~

woul" now l'Me to presIent the potential a=anqementI

~hat "e fe~l c n wo=R, o- the mu ual bene"it of all pa . 'esI

co"c ~e8.F

He've cz=e=ully analy"e6 the 8wancial aspec s of the1'

~ ~

New Sm~a Beach sys em. Be ore get~g into speci 'c nmhegs,

'e me ex=la~a,how we c'ompu ~ Ae amount of. monev Z'P~ can~ ~

a" o=" to 'aves to acm= an6 me ge ~e New Smy=a Beach

elec «c systKIr

' c~ ome=s in Hew S~a Beach use a ce~ ™ amount

He- haec ivec dern'leP. schedules of h'sZ«««aI

I

~~1

a~. a, c' arne use pa te~.se detailed sche>ules, w

:f we apply ~L' a es o)I

e can accu a ely calcula e how

~ch a "ua'ev .-. e =PL wou» =ece:ve f om elec -'c sales inI

~ ~Bee B~-..a Beach. We the cal..cclated the cpe aticq eacecae ccI

su""'v'-c el c ='ci"v "o * service a-ea the si"e o" Hew Smy —"a~ ~

Beach.'he c'ffe e"ce between these revenues an~ =expenses s

' .his bet G=e=a

Q Al «c « «r czn «fels

G='e=at'.". ncome "sat =PL wou' „-eal'e.r

c Ie Rus he su fic e o ove

III)air f S ar rfCI f «ar CI'veSt anC

~he

«r ~ o

r CS «'4 CI o+rr «rr««TCn I

Ac sr

a ~aves «s L:1 tieavail~ le

sys em.

o =pLm s= oe

-II'~

~

D21

rr Ia«rrrr IeO rHIMVCI« S «OCrYr OAC«r««a «arras a ««~» « le««rr

s'-5-74NARC:~ ."R S:-:4 ATION TO COMM:SSZCN:-BS

OFV=n Sl~<v~qA

The-o=o=, ""e amos' monev, we pay fo=.the system~ ~ r

c~"".ot he 8ete~ne8 hase6'only on 1e assets we woe,~Q

g t.~<=4™a

«i~

~l'w>~s-

s

~ase- ™-.is 's hecat se De max» am zmct~~t of mcnev ~pr

"~ . pay 's ~'" 6 hy t1e ~become we can Pe 've ~om the Hew

S~~=a Heach,svs ~ "c ~a» o~~ s ockhoLPe s an6 bond>olce s

=c= -'".e 'e o" ""e'- money. Xf we inves "oo mnch cf on~ ~

s ock".c't8e=s'money in ""e system, 2e income we get cha g'nqMO ~ ye «

ct.- =at s wee'K '" he swf=icient'~c pay't»- stock.'dolce=s an0 ~

ac c'2 -ett =c= ""e t se of "ei mcney. This, o= cou=se,

wo-'" ~e vzacc - Mte tc &e s ockhc~8e-s.~ ~

~ g

')

~ 'Ctlls» ~ « 8 o to me~t Mesc c te ' a~8»inst» e «2 ««

a'~ pa 'es'oncede>, =-PL can invest a mlitt~tc ac~=e e'ec~-ic faci~'t'es of the Hew- Ssw~a

/

svs Bm an»Q o me ge, ~ese, fac 1 'es w 1 ot

~ .. ~ r

"t't

cs««~ 4»

c= $ :-, 060, 000

e «oa t«'» «» «<

syst~~I ~

«s l «S«$ «o 9 s«««~«C« ais $ ~ million to me"ge Ze 4o

-. ==e= wot'8 include necessa~ -'nte=-SVStI~~S «II»cesI «ewe

Ot - enq»inee-s have Pe>e~eC ~da> H'L wot'ld have o0

Je

r

4I «r«V~

~l'

s>r ~:

.%c~~

~+1

ls Sp «vs@ Qfw C v em l S anC Se»s'«Ce

S «I ~ «e mace ove 2 les» «~~ Vea« pe 'o~.~ I

s

D22

7-5-74

XA i

I

I~ l.

PP:-S:-3 AT:QN TO COi~Ã:SSZQif" RSQ'V

~ I~ Lv

Th's leavesI

$ 3.l ~llion wh ch =PL could pzv the C'tv~ ~

=o= ".e e'~='c 'system and'z 30-yea=

o f~l

er r~lrm

3ezc' o

=acil "'' es,'"e diesel gene atoms and ce~z'the supp iess„earn planwau1d not need .to accjui e thean't o ~vtae~e m~ w4 hveo oo e Re

== "c".se. ~

I ~ ~

:-o= ""'s $ 3 ''llion cash pa~ent, =PL would buv theI

=zci- 'ties we ne d to p=ovide elec -ic service to Hew Smv~z."'s cars's s o" the'a session zn8 d's -mution '-

5P Y~

=eca se .-'~» be chez e= "o us ta gene=ate e»a -='c.ty

to al, we warn»d expec the C' taJI ~-" "s= — ta =P "'ae asse s ne =ed'.u operate the svs w.

~ P 'I

='-.'-:c these assets a=a ca=ied on yau boaks at z, value o~ ~

h

~ t

Ceo oov4 o

~ oel

o =PL. All netbeen so'd'P I

vW hho Ch % r s a=-~- d's=asz'os s go ta the C'v.

~ ~

will o~e=at the s e~m olzn and diese1s dung a*

."s'tia.. =e='oc. wh'1e the svs ebs a=e be'".g Sully. inte — '

r~ ~ ~ ~

r tat the > ans ' 'n pezzadI. a1 1 yau elec c ty~ ~ pl

-"e ==ad" e =n =PL's 1a=-e .gene ating p1znts. Atrt ~he'p the C tv d spose o= the esse s, such «

~ ~

o ~ ~wh cn nzven'.t

~;r'

v

~, tr( ~

~\I

D23—oct ~

I'

:.:.iAY':-S:-N.AT:QN 0 COY"f:SS:ON=BSOF

H:-F7 Ss'NA.:":-%C:":'i

MCC/JLH7-5-74'M4~b

~ ~i%w> Q

". a= a= =a= "'" C'tv ~w seL3. it

~ i

assets<,you wouLd have to eo'ay De

wzt = bends. These hands mus he -e~e-ed w canjunc 'oni

~ ~ ~ ~

2e Ls:ssc-''an s'nce ~De elec-'-'c -aae . 'es' e

ts elec -'c svs em

ex's in'eLec"-:c and

~ ~

sec -e ~ese bonds. The p=apeaies can'" be s

a us "'ss ~Me bends a e oa:d oZ=. The price ta =et'"epLec=e ta

bo'. cs "s $6.6 m'»'on. Tm+'q is based on ou s zn8mg hands

$ 6.= 'L~'an and a c L3. o=emium a< sama $ 130,000.

ae.

~ ~

Naw, ~='~ =PL's ~ed:a e czs.zi

S3. L, mLL'. "'"e c aes 'n hecames-

paym n" o~ Me .Ci"v o=

whe e does Ze C'ty set''".e

= ney ta czLL "ae elec -'c and wz e~ bonds'P~ ~

As ye%a cz g we szid "Nz $ 6 . 6 mi.llian- woe ' be

=4~i= d ta caLL ourn a d'c hands.. The C'ty can cave ""-e .

di==e=4 ce bv usi.".q &e $ 600,000 a~-eady set as:de in." ve.".' ~'cz™e Resene Fund fax ~~>'s ou~ose'nd by

~ ~ 4

VZ

se'' $ 2 9 miLLion a"" new -evenue hands. ,The rew bonds

4 esse a Lv na ce "'+e balance a=." ~e "-arszc .on.~ ~

~ ~

~ ~

g .E

t

h

e

D24

7-5-74

7:SAIC:~ PHZS:-'8 .~=ZON TO COF41:SSZONZRSOc

$ %1

tÃ4l4 '

O" ~Me $ 2.9 m'~'cn in new hands, only $ 3.,600,000 wou'd.l

he bones ta cave= the e ~ ec"-ic assets we 'e not huy'g. ZheI

1

othe= $ 2,3C)0,000:wou~P. jus be a replacement o"" you ex's

= hcrcs. These wate bc Ps mus be re i"ance'. because~ ~

>e exis '".c wate bones a~so o~ahmit sa~e o~ the e'ec xicp=aoe ='es. These new hand's, aZ cau=se, shou3.c cartinue tahe septic > pa Ly hv the =avenues genera™e8 hv me wate

~)IIJae a

0

he", in ada 'on, the Ci"v eau~6 2.evy a 7% ut:~ 'ty ax

or e'ec ~cia soho hy»?L in Ae City. T+'s ax is used.

v ~".y a"'.e= municipal~" ~mes and. has been include~ in aUou= ana>yses oZ savi gs ta cus arne s hetwe n Hew Sm~a Beach

The =eve ue =am wate= an8 elec"-ic ooe=at'ons wou~" he

ec=e> o se=zice ~~e bonds. This camh~ ~ation shou~ d. he

ac a ta ma=a '"Wan meet the in e~s paymen s, ma.'ce ~he

c

ove

ssa~~ p=.~cipa'et'-emen s and s i13. have 6a~'a=s 'e t~ ~ ~0'"e Ci"y. ~ay acditiana~ =unc*s you get =: om the

C ~ rt.".e s" ~ p~ ". anc'"".e= ut.sty assets 'a o cr.~ 417 avy a the C'y ... ove= and'bove uncs you

s e %w 0 ";.e new o cd

D25

=:NARC~ P.~S:-VZA QN TO COY~i:SS:QN=RS

H=lf SP.~B "IA, B~C:"

1AUQ:0

=ST:PBT-D H7~NC:>~ 3EN==:TS

Lc™ s summa ~~ Ze ~1e ancial bene "i"s o" th' p oposec

a=a" creme.

Se~'c~ hv PP~< wou~d -educe "a~'~ec~ ic bi3.1s hv

~ove $ 600,000 annual'. h's st='ngs wou>d be realized

P

even a= e= inclusion o" a 7% u~Mi~y tax to pay in e=es~

and ho spay "Ne new =evenue hoqds "o he sold,.~ 0

These'avings wou'd =esu~" in =educed elec -ic hillsa mos residential c s cme=s. A esiden"ial cuscme= usQxq

500'~:= a on& wou'd. have saved $3.0l pe=- monm o= same~ ~ \

$ 36 du= .~De oas vea=.

a=ca - use.. h's 's.because you= p=esent n."e sche"u'e has~ ~

~o la pe volume =esiden"=al use.lowe= a~as ~h*n =PL's

Z= a, esidenl ial cus~ome used: l,000 Z8:- pe= mon h, ™&is

c"s-'cme= would'. have saved $2.l7 pe monM or a'"ou" $ 26du=in''ae

pas~ 12 mon hs. As you'an see, De savings 's less o

'acluded, "hose cus me=s using mo-e

0eI««y~ 0

"han 2,8')0 Z~:- pe= mon"''c ~ ~q'I g«e» e I ecwou'd incu slich"ly- o» ex'«le g c s~ome s us nc ~,000

o~~ ff»«

4 ~

ca ~ wcu nave paid $ l.20 "e= mcn-'h Io»CI se v~e

«v J use 'la less ~~iz ..Si ~he =esiden ial

D26

c s-'c.-..e=s c= New Smyrna,Beach l se -.o= ~hen 2,800 ZiP:. even

'I»e II) ««e «eh%( sQ+'»Qo»»w«l Qs 0«d ) csss bwana g $ c4»og»(ld«»

MCC/JLH7-5-74

3.„NC ~ P3=S VLX :QN TO COa~~ SS:ON:-PS

N=H SL>YB LK 3:-~C"

f% TQ~Olla'w ~'v

c= "he yj=. «™ OMe= wo ds, ->> o= "he es'cen iaL~ ~

c s cm =s wcuLd have.had Lower eLec~ic biLLs du-i~g much of~".a -as yea= '=" ~mey hac. hearn se~ad by ='PL.

~ca comma=ciaL cus oma=s,shouLe ~aaL' =educ 'onI

'". e'ec -'c cos s. =m'xample.e, we astra a Za~ a

comme=c"'aL cus"cme using 3,000 KRZ pe mon~ wouLd have

saved $29.72 a mor.& o- ove $ 30.0 du~'sg t'la 2.as yaa

I

~ The =2~ a as shouLd aL'so =asuL ~ Lowe= cos 'powe=

=o= aLL C'~y uses wan what 's p=asen~~Ly be'ng b''Lad by De

~t

Sew Smyrna Beach u " ' sys .'ha C'y wouLd have~ ~=aa''=ad an es ~ aP savings avaxaqmq'2,450 pe= mon"~ on

0'~s e'ec~-'c MLLs ~Nese pas L2 monks.

The a=arqamen we'=a s"ques'~'nc couLd Le ~le C'

Thar.,

'

=aascnabie '~e='od o "~me.

ed'ately ~a uca u~'L'"y =eLztad dab~~ by app om~a e'y

$ 3.6 ~~LA'on. ~&ough ~ma use of "he 78 ut'L'ty ~ax,I"'-.a C'"v can orov'8a fo~ a amen of &e new bonds n a

c Low~ g ~™ie saL'a

wcu'c s~'L p Qv'ca.

the u"''y, "ha

C v a o ox~Ma aLv

eLec"='c- sos~ ...

$ 385,000'Wgl +g rl'I' gl 1 IA %l ~ 0 i t ote 0 ~ ~ 1044 %CA A ~ s tccu~d be compo sed o a Ja +ua om

P

2 65 ~ lc i sa Rx a ic ~ la as~'1M~ad sav sgs

c- $ ~ =00 a Jaa cn a ec c j usac Qy ~~ie C~ iv Jove ¹D27

~ ~

MCC/JLB~ 7-5-74

- DANC:A~~ i

PP=S:-V A:ON TO Coil'~:SSZQN=RSor

H=d Sic&'R.'fA 3~CH

Aire)»O

A po'= 'on o" &is ava ue would, of cou=se, he ne ded to

pav '-. res and principal cn KNe new elec" 'c reve".ue bondsI

r"at wou'd have o he sold. A portion would a'o be used. to

pav '".a C'==e enCa in i™~e eSt eXpenSe he ween the neW Wa arI

bonds and De presen wa e= svs am bonds. Also, the=a wou'd

be ~~".e nacessa~ Ands ~w fullv'av off soma of Da new

a'ec='c ands eacn yea=. ~ "act, we es imata '~a Me naw

revenue bones at=-'hu~la o the'l c='c sys am-could be~ ~

ret'"ed '". only about l3 yea-s if you w.'shed.,

aat eve a o serricmg "~a~

'aw r venue bonds e u'"ed for~d have scme $232,000 a yea=

Pws ~or an Hough istares and .'or&ciDp~ on &e

$ 48,000

"=ansac 'on, "ae Citv cou

="= o" e= mu ''al uses.r

~"'s would he a sMis~tial "~crease of soma

eve= ~a $ L84,000 paid to tha C'ty cu=inq the L2 mon Ns

8 id aQ~ ~0rr ~ r

I

'=u~.e=.ore, ">e "avenues availahla to ~Ma C'tv should

".c"aase a.".." a'Lv prop o ion o "he grow h -ate of~ ~e.oc= c sa'es. ~".c cnc ~ rtna al ac@ «i c hcncs a"e = '' "y pa'c

c i ..-.cst. c

tax 4cu

~ r a rave ua

ava> i a»r i a

wise tav anc

pu poses ~

cm ou a c~ ~«»a@\ 1» ' Ht» C»o ~ moor»»»

' ~ccu R..acun o 5 I 000 i 000 Q mo an ua Lv "'ze.

D28

.7-5-7C

= ~~BC:~~ P3:-S:-N :™RON TO COi~4L:SS:ON:-HSOP

H=rf S'i4%3'fA 3:-KC =

(41'4 V '

h' zen sugar'es the potent'~ a=angeaent "ha we

wou'c propose. Zt ho& lowers «&e e3.ect="'c'h'»s for, thec:"'=ens cf New Smv ..a Beach anQ 'ncreases 'xe mur.'cipa1

revenues..

4

How " w~ » u~ Me floor ~e o H . Je~ Sau who

w

ww moo

C'scuss De personnel. aspec s Aa we

me proposeC a=anqemen™.

see assoc'a e6

~ 0 ~ g

~ 0

~ ~

D29

~ ik you M~ ce

'MAC OH

Qf ups couc m M you ~ us M ""e app~o=~te "~a~atof the Hex ~a Beach Maloyees. Let us mviev "Ne

eployee's p=eseat s'uat'on cC ""e caco~at'es w key

vouLC eu]oy as employees of Plot'da ~e 4 X'gh Ccmpa.".y.

Te pmph~e ou P=esÃe=t, Pwahall HcQoua'", as ~2.cyees

of Plow"'8a Pave 4 LLgh . C~w, ~&ey mould sha~ &e p™'vi

l~e inc'. op@or~ y of se~zq Ae elec 'melam o ac-thazz l-lJ'2 a" ~~a cus ~em ia cuz ast ~iaq s~~te

Hem Say~ Beach ~lcyees would:

Be qu=autee6 ~ages o= salaries ecuaL ~a o= be= e=

Dan aha- they a=e presen 'y ea m".g.k

2. Rxgoy a total ~3.oyee belief't ~acreage "'cat -'s

~ N o be e= "ar. what ~key .".cv have.

3 Mccoy - ~ Ca=ac Oooo ~~"'es.

4 Be abide o coun the yea=s of semce v'"'1 Ãe«~aBeach c~a~ va"'cus ~ ~ lovee be" »—"-' o=-6=a=s ~

C't~~ Lets lcoic a each o- ".ese 't~ ~c a l't=e cc"e de-a--'4sochv cn ~ages a"c. sala .gs ~g wa o

-e='"'ve sq as m a"==act a."" '<eec "he s e 'c'e.".

= a'' '~ vo"2 ~ ava'lab3.e. As you cay

cf -'"e jc"s be"e v'"'"'.. N~ Say=..a Beach

aco «c't~>1 v covec-

D30

261497

"~

~ 'L

D31—

~ ~

CCPAFAi~ H A.'VMYSiSOZ

N7iVC~P~~ A'2 ZlVMTOR C(GW 4iZ ZTWAiK)

TS TO MZ CUB C'~3

&—~~ s"" Caeclasic

261498

M.~p 3g)~<>+7S

An~~is oC the 2 M.ive ecarMcs M ~c'ye'v..KZLties c~~ to

Msm cne4 u " ~s "..es~e4 ~mt si"e c aa:e 4 a~mt t~>- the ~~~~

s~w~~. The s=ec~iic ey~«is of the ~«-sis ec Level ta.-~~ Pa~~Pave= h. ~ i-" i=" «he =mc'pQ Ni3ities i" o- dies" i.s seWce a=ca ~e

vg )esp Qz', 3,$7Z 4ahL ~ «he caec~~~~ $ccs z'e/~~i»~ g < ~>i e» cas «

~ic 5 se~ c ~ ~Scute~ bec~e c~ sv»or~a cs s s» a«.

r ra1

~» M~ Q58C i +~cs&4 «h?t «he c~«c ~»s a~ the s~3~e» ~~4ci»sl ~~«i~< J4 «e Qe t csW Get t XL c'W«~ s of «~w«Qe c'w«~»»5 a«Ca,'~~»+M

~g««w '1 a»pi g c~gyg3 a g»I«pea «»e» l«g«gp g ~. to ilgwu $ ) o p~ tip Js

cm~ —»-s or ~~ =aid.. W~«c'mt—-"s aC ~" a " - ~ic'"s~ u-'4~'~" es caid.

a=o~m =~~~ $22.7g to $28.g7 "e" thea=C Z~< Those i~M~'ti"s 4ththe >~i~os ave~ ~e ~o hah Xmas cas s ~ F~ci so~~

~e si= af nos ~c~Pe'its M "-ite" "y "e si"e az .h c'r. gpss~2". s

'i-i~ a» si=e z~~Hs ~~~ ~3Ze» ~ici~~ t~i~ities. ~«m "ca~i"'»- ~~ o-"I t

ec= —'ea od sc~«~ a~i~~» to 3 -pe gati~'ties. mis r«a"~ s~ c'es=~

8veaLA h ~U I cd tT 'es ha4 1 N cf clc w s

a=d. hi-~a= ~-~ a=~ ~=-«i- cos~= =e= U~= ar ~~- s-» geese ~i-~-- cas~s

~~ be ~e ~o» c-a~~Wi —«ac~"- i» ~We >i-~ ca~~'ar =a~~ o

«he~» cA~ 0«

i»ernie i ye»ci es cr l'la ~«l 1 ei+< 1 i+i as og»e t'4qs a/set t4a <~v he»e Pit

+Lg«'~ g«~l «h% e to ~~i ~> Q gM 1 i+iLs }4 e»4 aimed 1 q««i t i>io'~ wg & ««~««

«ei«~1 i «~~»e «« r a+~i» 1 «y» i»re» +4»s i «kg»»Sdo

D32

on he'- bands 's ~is a@4 «ps 4'ar ~«) c 4~~

NC «to

261489~use m ere~«ioas reaQ» in suhs ac. 'a3. »m

I

nt~»ies ~ These exp gtians reNQ,vecL i» sav ~s «4Q ~$2.69 pe ~4 ~ "a"d 5 ~ saM, for Clews.oa. ta $4.8) -e thausa"d FF, sal"

fc= S~he. Ye» even vi h .h's snbs s" i', a=~" af ~ saW~s) t—" cnst~ers

af-aQ the ~ci=als ~~ "e4 acct far vechaand~» Orlando and CZ.eve.s an

(which m—~ed D i s ~er) veQd have be"efitcd naze in .e w of sctns3.'

ra es paM. a 6 reve~ rec ivy by the cs-~ci~~ g ~» hey ~ bern se~—CCATS'f)~<A( 7~

Tf these ~c'~ties ~~ been served by i=L) addi i~ be" ~i

have been =a" ce4 by society. me nax e~~cient use of &el 'by .==L '<only

Lmve resr'.ed '= a ~~ sos eanivaleW to a~rex='.e~~ 628,CCc.bs "r~~ af

aQ«M titian) ~g««a wM have ~d its shs e a

~~~e rates a"+par o—e .e" ~~ci aL " r=m. Mns the average~ ~ bm"-ea

on» al»"- of t" econ~ >~ have been "-'"ed~e = salts a t"'s st '""'c te" "" » "he ta be"ef~»s c;~M~~ o

~ci=a "til'ties a"e a~~ ~~~ real'= d by the cps»c=e s -~ " the ="c'."~Wiling'~ sa~cie"t s " ta a e te an eMcie"t electric sys m. ~ t"e

-~c'=a' i=ty 's na4 ~pe enough .oz ef»1cie"t c-e a icn ~e

b~eWts re~~ se~ as a snbsi~~ vh'ch shields the c~~ zs ~~ th '"ef»i-

cia ies assccia ed 8 ~ a ~~~ L~~M~j'. Ec"eve

be e™ s =w be "sorbent by "e e"ti=e acne~t

Ze'e~L seduces a hc ssed 7 de"A mis.)

~" e" the= case) t» se ta-

fern af eithe

9'FL4~ P~Tii

an~c a $aec- 2 s«

D33

<ce L..=.Mow«»e« ~ . ~ <»«««4 s 1~ ~»«) 1 y««4 «~

Cl

o eo o ~

~ ~

Il ~

P» pOl(»lv/ I »I

~ ~

Eg, («= ) (.

.=AU r'AU »» ro» I »»O pro»gs'm I 4 (~

~ ~

hr ~

~ e»» II cora ~ hh»e ~ CRPi4~ i Cil

t»»ro «j'I ~ ~ ~

o

~, ~ i4-'J -e MCi» iiCaah l I<

'

) .»p 5 Te al e 4I»» +i ~~ e 'I I ~ eeo

5»~»" ere»o»»ereooe J 1cree»ahe Q I I eo»»hehe I e I

~ ~

e groooere «fehe e»i I 'er ~

S I»» I I~l '~

C~4'21 R e1 C 4 i.

»0»~cela»g jodo'e ~ hie e»ey 'aeo eooeoo ~Poo» i ~ i oooo I ho»o

»»»e»ao» Iog» '«(~ ~

he»o ~ eo I hoo oo e 'o he ~ rr ~

p»at.t y + 'e» rW«eooheo e e I eoi e»he oeo ~

1 re~l Woo» 'e I role»aQe i ~ »e ~

» h C 1»oooo 'ra eo»e e»o e l. ~ ~ iii~ 'e4'e ' oe he o Io I ~ ~ o

e ~

~ ~

»geo»g~oo I ~ ~SVC e J. »5» .~ e J»1I. 8

~ hoo ~ i~hei «Ca ~ ho e ' li e ( ~ ~p Jsq e»» (ao» I roe «q ~

ro eo heoei (Ih~ hera 1 ho ~ grhe ~ S ) o

s Je io «s» «sa oltt» ~a:~o»»»»o.e Iioo»ooo ee eoo e ~ » hoo he ei <ho» ~

~ ~

o~ ~ ~

'i o»o~ o

~ ~ ~ oI I

o~~r

/

~ ~ ott I

~ e ~

~ ~

'I~

D34

~ ht

~ ~

haJQ ~ IV~( f eu

(Cp7='Z) P. (> g(,The k y issue foe in r-util i".y ne'lotions 'is what kind of ins i.u ional an. an"-e

ments will prevail, or Ne pu~se o aggrega inc the geographical loads.

2.

6.

7.

~wa.

.Prob em Gr ai or us,. noi so g eat fcr De.. on ~'.~

ge Power Au.hcri.y - A state-'sanctioned ins itution with'act'.on the basis'of sut guarante s and/cr e~enption fWm~s

...".woad.se11 to all re~w'lers at the sa.-,e bulk pcwer cas ~~

'I"~roblms - The e.",d o. FPL genera~'ag business-.: ~"-=b.~ eat~ D3S

~ oe ~

Xition. The au Nc VA

OSSI BIU i ID 2809/7FF pr sent s~tegy: The loads ~ithin the FPL sys~ are su.ficien tasuppor. the optimum annual capacity addition.

I

'Problem - a. FPL sys~ may not present the ~lies geographic area ','in which loads are aggregated. t

b. Reduc ion in peak load growth fry the January 197S .

~ . '. forecas will under..ine tNe logic of our strategy.The municipals-ca-opera fv'e strateo~: Should have statewide genera fanplanning,.mul:iple-unit sharing, and full coordination.

Problems .- FPL may no be able ta canpete if municipals and ca-opera ivescan gain access to generation inves>en with their low-cascapital. Municipals presently having franchises with FPL <llbe encouraged ta go public.

Merger: rPL cauld merge with TECQ and FPC to provide aggregate loads. which'ould again suppor. the isolation s.ratec~.Problems - They may not want to and who's going to end up top'og?

.. FPL statewide bulk power supply business: FPL would plan site design, license,finance, build and operate large generating plants and tnnsmission 'lines, andsell bulk power ta all other utilities.under 30»year take ar pay.prepaidcant".ac z.

.Problems - Me would have to sell the concept and we would have all Ne.. financing pr'oil ems.

FPL Service Co.: FPL would plan site, design, license, build, and opera thesta bulk paar system using funds conwibuted by all u ilities. Power soldon basis of cperating cosw. FPL receives a fee for management services.

Prablens -'rr. survives as a servic company bu no as an invesaen~ company,

Coal: A shift ta coal would eliminaw the Atcmic Enerc~ Act as a roumunicipals'nves~n . in generation. It may also permi. us ta lationaliz .

sr+11er unit'izes more nearly equal ta annual .load increments..Problems - Air quality laws, coal supply, the'Grid ~~ill may even&ally

require the san:e thing as the Atomic ufe gv Ac .Political. Attack: Ve can attack the laws which give music/pals and ca-operativesfinancing and ~ advantages, thus making competition m .e<equal.

Problems - The laws are samd cows and won't'give~p easily.Pooled Capiwl: A hybrid ins itution whereby each utilgy would finance h sshare 'of bulk power supply but the .inancing ccs s woul&be pooled and eachutili .y would re" ive power at the same cas..

C ~ 'd 'now how ta dc ite

RaJG I/4V/ /0I

~xh('d(7' Q7=z) ~ iz(pl

280ggg

AGE'N OA

Senior Managenent Cauncf1

GKP-SECOND'GDG9:CQ a.m.. Frf dzv, August 6, 1976 Conference Roam - GQ 6313

Brwk

'hy1fcations for Frr. of Recant Ueve1opnents 3n Carpet$ %ve ReIatlo~

Presentation R. J. Gardner .. '; .$0 minutesI

10 Ifnu~w

~ ~

QQcmsfon

Critqu

6Q Cf Autos

. Mamha11 N&ona1d - 29 mfnu+~

t~Ow

lsJiko ere'~ ts4V4 .w

~tt \t, ~

~ ~~ 0 ~ tt

OO

~0

~ e~~ + ~ ~

~ ~ ~ ~ ~

~ t~~ ~ tO

~ woo~ ~

~ y)ltttel Jat

'tti+LL44~ ': i~

hkkMLlt t

~ O~ 4 ~

~ Oa

D36

280gggSIEQFICAg QP/ELOPNBPiS IH CQMP&iTIYK RELATIONS

o g ~ g g y g s ~ o s s e o o e e o s o s e s o o s o s o

~ 1. GHd Bi11 Docket.- Initiation of joint sta~ide generation planning

study: generation planning without regard toCompany boundari es'.

~ '.Plan iR11 include a financial analysis ~hereby'eachuti1i.y is assed to cwn an indiHdual

interes in each unit &i&is join.ly planned'.

R. South Oade anti-trust proceeding.

3.. Possible re-opening of St. lucia anti-t-.x proc eding.I

1

4. Seminole determination to become a generating utflity.S. Spiegel's clients se king:

- Shares of many units to reduce risks..- Ful1y integrated pcwer pool.- Central Cis'patching.- Legisla&ve authorization of municipal financing.

%e

6 FPL of ers to manage joint projec. for other stanuti1ities.

F ~

r~ ~ l

~a~O 0

% ~ ~

~ V % a

~ ~

~A

~ 0 044~ ee

~o ~~ y

~ ~

~ ~ L r ~

g ~ 2

~ ~ ~

hC ~1'I.. A

) ~

~

A~'3~

~0%~ 40J~~ ~ I~

~ ~

MCl I I cap t w(

PROPOSITION 1 Developments in our relationships with. other utilities requir. that we view our

business 'differently than the traditionaland 'officia1" way.

PROPQSITICH 2 The traditional, way o looking at ourbusiness is a single Nghtly integratedbusiness serving end-use custceers,.1inegstaff stncMre, and organizedaround resource stars: hardware,p'eop1e, aeney.

PROPOSITION 3 An 'X-ray of 'our business reveals theexistence of two principal businesses:a bu1k power business and an electricservic business.'he two businessesactually exist ~ithin the fmnework of'. a third ac ivity, viz. an inves~tbusiness.

PROPOSITION 4 . There are important differences beNe nthe No businesses in the areas 'of

- the way they'are @unaged.:- or'ganizati on.- financing.- marketihglcustca r .relations.- pub3ic affairs.

PROPQSITICN 5 Mhile Were are important differenmsbetwe n the businesses, there are also'ita1 natual dependencies which mus beunderstood.

~ ~ ~ f

0 ~ ~

D38

%HICIPAtS ND CO-OP~TIYES

'Ltu~n imtCg~

'oo small ta incHvidua1ly add economi'cal generation.~ Rely on oi1 and gas for fue1.

' Fuel ash rising - supply in Jeopardy.

~ . ~ Mage rates lower; exenpt fraa Federal minimum wage;optionally exerpt from Social Securi+.

~

~ Size limits access to nsteaer service efficienciesafforded by large utilities using automated systems.

~ Cannot suppor.'lanning, project, procurement, nuclear. organizations

~ Ho tax obligations but municipals contribut- to city.operation costs.

~ Lcw cos financing.~1~al and proczdura1'imitations on financing (municipals).

Sunshine lars hamper management aeons (municipals).~ Co-Ops have easiest financing, least management res~c5ons.

~ ~ ~ ' ~

~' \

D39

~ f

ga

1»W «Arr »« ~ ~ v irv d ~ Q 5e

«L» 'l'«L" esse yci«e" ta th C'~ sa~ -" 'has's ra- at - c-""i A+y»«J»«r» ~ g ~f SyC Cm 7 ekC KC 3 ta 4C«C«vi i

CAC e» «h C Si™ao~A pC C»~» Ct 4Z 8 ~L ai iCiP'"

t'=«e af «e gewc- cs!d=g «e v~~»est "- Mi:aiesaie

yc~e; fa~ of t"e re@.-est (j.e., i« = " or araL, '" gemara.

or b7 a'eahace) aced., f c a3., a i' a)i ye"sots erase"t

et the t e thLe ~es Mes Mge; CRte af th ~'est: pd Sac

ta i«hc5 the ec,"-est Mes add=essed: ~e af'yemct '«hc " sycr."M

ta the "~es»: are o M res@arse (i.e., M t~ c" crxi,M ye~ca or 57 a6ephaae) a»c'. f.f oriL!., a i'st af a'.i "e"saas

prese" et «e ~«e the res@arse ilies g we" g ye sat ta '«hca the

e~c~e vent 448 essed; 454 d4te ai tLe res@case

D40

9 1

Answer ta Interrogatory 9

9. Prior ta the Supreme Cau.t's affirmation of FPC jurfsdfc~&'on

ove FPaL, F?4L either refused, as a matter of express and

repeated pol'cy, to sell firm wholesale 'po~er m municipal

systems or sought unlawfully ta condition the sale of firm whale-

sale power. evidence af PPaL's pol'cy fn the period up to 1973

fncludes:

(1) Testimony of tap FPaL officals fn Cainesville UtilitiesDeaar~ert and Cftv of Cainesv'lie, Florida v. Florida Power

Coraoratfon and Florida Power and Light Company, CA, Na. 68-305-

C'v-Z. See, fn particular, depositions of Robert E. Fits at 8-

12; 15-16; 69, 81-82 (September 25, 1972)g Alan B. Weight at, ll-13g 47-52, 55-57 (September 28, 1972) g Richard C. Pullerton a"

82-84 (September 26, 1972). C.S. Coomes (Oct. 12-13, 1972) at

83 84) Re Da Eill (Octa U g 1972 ) at &9~

2. In addition ta documents referen=ed elsewhere in

response ta this fnterrogatary, the following documents show

peninsula. Florfda~fde recognitian of FPaL's policy af refusing

ta sell wholesale power ta municipal systemsx

(a) March 16, 1967 memorandum from Mac Cunningham ta

FMUA 0 fccrs and Directors arA Legislative Committee ( PPfL, as

you know re use (sfc) to sell wholesale to any munfcfpalftfesg

and ta my knowledge their only wholesale customers are four Rural

cctric Cooperatives.'b)

March 27, 1967 handwritten notes on meeting of pri-vate and public systems Mm Moughout Plorida ( Pire ... polfcyof PPaL not to sell wholesale'

(c) May 13, 1963 memorandum for file fram J.S. Cracy

(Florfda Power Corporat'on) re FPC explanation ta TECQ on why new

municipal wholesale loads should rat be served (PC-2063) ("... we

elt ft was not good business ar us ta take on any additional

wholesale far retail communities and I personally felt t!wLt we

would have been much be ter off if we had adopted many years ago

the polfcy that ."-paL adopted.'ee also May 7, 1963 memorandum

ta W.J. ClaPp rom E.K. McKean (PC-2063).

3. Evidence, relat'ng ta the Cafnesville case conspiracyg

D41

9-2

of FpaL's policy of refusing to sell whoLesale power Ln FloridaPower Corporation's service territory. See generally, documents

cited in Gainesville decision. See, Ln par.icular, January lip1963 telegzan zon Robe"" H. Pite ta Albez. C. Valde, Chai~Citi"ens Ccnnit ee or Repzasentative Government, WLnter Garden/

Florida, (Aug. 8 memorandum doc. 424), which states FloridaPower 6 Light Company has no formal or Lnfoznal request that Iknow of to sell power to Winter Garden. We do not supply munici-

pal systems firn wholesale power for dist ibutian through a nunL-

cipal distribution systen. Winter Garden is beyond the limits ofour economic service area whLch, Ln itself, would preclude a

supply fzom our company even if the other conditions cited above

did notprevail.'.

PPaVs refusal to peznL resale of power (sold by FP6L

ta caapezatives) «ta nunicipalities. See generally "1" above and

PP&L Rate Schedule RC,'Limitation of Serv ce Provision'nd'Suggested Let er Para FPaL Company to Plo ida 35 Glades'(Bothdocuments appear as 28F of Aug. 9 memorandum.)

5. Evidence zelating to FPaL's zefusal to sell wholesale

power to particular cities, including (in addition to the deposL-

tion testimony cited above):

a. Clewistan. FPaL's refusal ta serve Clewiston

documented Ln the record and ini ial decision Ln Florida 37 FPC

544, 572-73 (1967), whose findings of fact and law the FPC found

to be 'fully suppor ed" by the record. See also suggested letterfrom .=PaL to Plorida Glades (201877) ~

b. New Smvzna Beach. See

(i) City Commission minutes of Cctober 3, 1958)v

October 13, 1958'une 19, 1958g July 27, 1959> August 10,1959'ugust

5, 1959 letter from Alan B. Wright Vice President FPaL to

City of New Smyrna Beach (PL-65) ("Zn regard to youz inquiry con-

cerning Ne sale of wholesale power on a.long tern basis, thiswill confirm our previous s atenent in regard ta this questions

nanely that we do not have any a=angenent to sell wholesale to

municipalities on a long tern basis and we would not change ouz

polLcy at this tine.")

D42

9-3

(ii) October 6, 1970 Memorandum ~m Oliver J.SmiA, Secreta~-Treasurer, Utilities Commission eo Utili iesCommission, Counsel and Director re: 'Firm Power'agenda 1 em

Utilit'es Commission Meeting October 7, 1970). See also Says

St'lities race rrcalass,as Jete lt, l990 Caytcca Saact Scr i.e.e

Jet=eel

Utilities Commissioner John Cassell outlined theimmediate problems, some of which he termed "cr'tical'nd

'needing a solution.""He said the Utilities Commission must find a way

to provide firm power to the community

"Cassell suggested, and Swanson agreed, that if bothcommissions took a firm smnd that the elec ric utilitywon't be sold, the City's position might be strengthenedand it might help with the present negotiations withFpaL for purchase of firm power."

(iii) October 9, 1970 letter to J.J. Bensley from

J. Berry re: Negotiations with FpaLs Oct. 10, 1970 letter from

James J. Berry to Alan B. Wright (261047) enclosing two dtafletters (261024-261029);

(iv) October 12, 1970 letter fmm J.J. Bensley,

Director of Utilities, City of New Smyrna Beth to Mr. Alan B.

Wright, Vice President, FPQLi

(v) October 24, 1970 lette rom Chadwick B.

Hucks, Sm'th 4 Cillespie to J.T. Bensley ( Xn the telephone

coversation yesterday, M . Wright stated that they could not com-

mit themselves on any basis other than a power supply based on

capability 'as available" ... ~ the same as is now in effect. Xt

was emphasi"ed that this was clearly understood byus.'vi)

November 2, 1970 Alan Wright letter to J.

Berry re: New Smyrna Beach and FPtL (FPSLss provision o power

'should mt be interpreted 'n any manner as irm power but ratheras stated, on the basis of availability.")

(vii) November 25, 1970 letter of FPaL's Alan B.

Wright to J.T. Bensley, Director of Utilities.(viii) New Smyrna Beach Utili ies Commission

minutesg March 29, 1967; April, 12, 1967> and see also (a) March

27, 1967 handwritten memorandum cited above (recording John

Little, New Smyrna .Beach Utilities Director, as stating, interalia, could mt in good faith recommend building anthergenerating station wi""ou irst asking FpaL if they will furnish

D43

9-4

vholesa'e power". (b) March 29, 1967 VtQities C~lssion minutes

( M. Little stated there are two a'rnatives: to t~ to buy

"rm power fr~ .PRZ„although thei". policy is to sell no firmpower to municipalities ~ ~ ~ ~ and (c) Cocmes'ainesville deposi-tion, suora, a 106 L09.

(ix) July 9, 1970 letter from Alan B. Wright, Vice

P esident FPRL to Hon. Fred Dos er ("from tme to time the

Company has supplied the City with emergency power up to aporoxi-.

mately 3,500 .Ew. We will continue this arrangement cn the same

basis —namely that'it is for emergency pur~ses and not to be

considered firmpower.'x)

March 22, 1965 letter from J.V. Qillespie to

Hon. WilLiam Hathaway, Mayor ("Zf FPaL Co.. can afford a proposi-tion of that )dnd (takeover], then why can't the City work out a

feasible plan vhereby in th'e interim power can be bought to

supplement the needs for any plant untiL such ti~e as the Citycan accumulate a financiaL reserve sufficientLy large to

construct supplemental powe facilities?'Starts. See

(1) January 28~ 1955> February 1, 1955 memorandum

from A.B. Wright to Mr. J.T. %ere Division Manager Re: C'ty ofStarke —Request for Purchase of Power

( ii) February 1, 1955 memorandum from A.B. Wrightto Mr. R.H. Fite President and General Manager Re: City of Starke—Wholesale Po~er g

(iii) May L9, L970 letter frcm Alan B. Wright Vice

President to Mr. James E. Mac=ac, Chairman C'ty Council (272046).

See also December 23, 1954 letter from E.E. Dearmin (FloridaPover Corporation) to Jackson (blind copy to Fite) re s PLorida

Paver Corp.'s refusal to sell to Starke (PL 1366) ~

d. Ft. Pierce. See

(i) April 19, 1964 Fullerton/Hill memorandum (PL-

24) (Res visit from Ft. Pierce citixen —"Z explained that ve

vere not interested in selling vholesale but had an open mind

about anything else" );(iii) May 12, 1965 Harding/HiLL letter (PL-36) C'ty

is p=warily in crested in standby or wholesale;

D44

9 5

(iv) Octcber 20, 1970 Ft. Pie ce newspaper article(PL 59).

(v) October 13, 1970 R.D. Hill memorandum m filere: meeting with Ft. Pierce. 'The matter of firm power vas

discussed but ve told theo ve were not interested in supplying

firm power"

(vi) October 13, 1970 Memorandum from Commissioner

Nelson to Mayor re: meeting with FP6L "FPaL has not and will not

commit itself to firm power al "ough it may be considered 'ndwhen FpaL has facilities for power in excess of its directly con-

nected inscan)rt needs'.

Homestead. See ~.cc.,

(i) July 19, 1967 Pearson/Fite letter (PL-1244)

requesting wholesale power (in light of FP@L Congressional testi-mony that it was not FPaL's policy to refuse); see also related

July 19 Pearson letter to Senator Magnuson (PL %45) ~

(ii) July 31, 1967 Pearson/ Fite letter (PL-92)

(summarises July 27, 1967 meeting; "The request of the City of

Homestead to purchase base power in 5,000 and 10,000 Kv blocks

was'also discussed as,vas the question of the increase of the

amount of power rav made available to the City of Hcnes ead by

FPSL.'PCL said it would discuss vholesale sales upon a resolu-

tion of a territorial area agreement.

(iii) July 28, 1967 RHF" nstes re: meeting with

Homestead (PL-93) Homestead sought wholesale mos of all. Lpon

direct request for wholesale, FPaL said it provided none, but

vould not refuse i territorial agreement were signed —but

would mt give City RZA rate. ~

(iv) December 30, 1967 Autrey/Fite memorandum (PL-

85) FPCL did mt want to sell wholesale power, but did mt vent

to refuse it. FPaL told Commissioner Mayo of PSC that Homestead

has emergency power and has agreed to listen to FPaL acquisition

proposal;

(v) December 2,8, 1967 Zvey/Fite lette (PL-84)

rates discussion of wholesale power and asks FPaL to "Please letme know if your Company has changed your policy in this respect

and if so what ve could expec= in the vay of rates.

D45

9-6

(vi) May 8, 1971 nemorandun for discussion fram

James J. Berry re Rental c Temporary Units by C'ty of Homestead,

Florida.Lake War&. See

(i) November 4, 1957 City Commission minutes

record that R D. HLLL, Ceneral Manager of FPSL, of ered to lease

the city mobile generating uni s. The minutes continue: "Mz.

Hill said that the mobile unit cauld be available on threedays'otice... Ee emphasized that they were not whoLesaling power/

but fust ~ing to behelpful.'Li)

November 6, L970 letter frcn Evert A. Young,

~feet Manage Reynalds, Smith a ELLg,ta Utilities Authority re:City of Lake Worth, Florida ~interconnection with FPaL (at October

2S, 1970 meeting with FPSL "The Company repiesentatives indicatedthat they are nat at the present Ln a position to pravide firnpower and, therefore, could'ot include the .firn power

schedule.')

(LLL) Sept.. 25'972 Fite Cainesville deposition/at 16 ( Lake Worth wanted ta buy power wholesale ... and our

polLcy was not ta sell wholesale, as I testified.')Zn addition to the above, further illustration of the awa"e-

ness of FPSL's policy of refusing ta sell wholesale to nunici-pals includes c

l. The July 19, 1967 Letter from Pearson of Homestead to

Senator Magnuson (PL-1245) rebutting FPaL's testimony that Lt has

no poLicy against wholesale sales.

2. June 19, 1958 New Smyrna Beach C'ty Mf,nutes (Aug. S

nenorand~ 928C) where New Smyrna Beach was told by its engineer

that unless the City was planning.to buy nore gene ating equip-ment and informed FP&L Co. to that effect, then they nay not seek

power far resale under normal circumstances. He stated that itwould be better to create a state of enecgency before askingchen."

3. March 29, 1967 New Sn~a Beach Utilities Commission

Minutes, where Mr. Little states, as an alternative/ a t~ to

buy irn power from FPaL, although their policy is ta sell no

'rn power to nunicipalL Les." See also Cainesvil'e deposition

- D46-

9-7

estfmony of %aries S. Coomes at 106-109.

4. 1967 Fact FindLng Committee Report or the CityCommission of Hafnes C'ty, Florida.'PL 1200) (Zt states, at 3i'Zt would not be feasible at this the for us to contac anothe

source of powe in the event we moved to distribute. Due to the

interconnecting svstems Ln existence between the va 'ous distri»butors and their reciprocal agreements for supplying each otheras required during emergency periods and peak load Lncapaci y, Ltcould not be expec ed tha any supplier would transgress.'g

5. FPaL's resistance to sale of wholesale power to Vero

Beach as evidenced by

(i) FPaL's statement fn 1959, fn the context of talkswith Vero Beach, that Lt would not sell wholesale. See Response

to Inte~atozy 21, Vero Beach.

(LL) FPtL's talks with Vero Beach fn 1967-1968i fn which

Vero Beach repeatedly asked for ffzm wholesi)le power and FPaL

sought to "dfvert" Vero Beach's attention by proposing a sale oz

lease. See Response to Zntezzogatory 21< Vero Beach.

(Lfi) November 28, 1967 letter from R.D. Hill to CityCommission: "We are zeluctant to go further into this at thistime as we believe there are othe alternatfves whLch should

. first be fully considered'e.cr., Lnterchangei sale or lease ofsystem) (120984). See also memorandixn to file by R.D. H'll,November 24, 1967 (PL 599).

6 ~ FPaL's dealing@ with Clewiston. See, e.c., the August

26, 1965 Z.C. Spencer memorandum to file re: talks withClewfston (PL-1238) .. The City Council either wanted to buy whofa—

~sale oz install diesels —but councilman McCazthy "had notcontacted us since he )clew ouz 'policy'as not to wholesale tocities, but he thfnks we should and that if we refuse, the

Coveznment should force us to."7. Documents, zeferzed to in response to inter ogatory 21,

22, showing cPaL's refusal to sell wholesale oz retail power topotentiaL municipal systems in Florida Power Corporation serviceterritory.

8. Tn additLon to the above, cities note uzther potentialCLties'equests for wholesale powez were deterred by the fear

D47

I+

9-8

tha- such arrangement would lead to, or involve, further FPsiL

adceover effor s. See, generaLLy, response to inter ogatory 21..

As FPaL testified to Congress, Homestead, along with many other

cities, has consistentLy indicated that a permanent wholesale

arrangement might lead to purchase of the city system by the com-

oany and that a wholesale conc=act was to be avoided because of

the dange" of loss of the property." "Statement for the Record

by FP8L in response to tes~ony by or on behalf of Florida

Hunicipalities at Senate Commerce Committee Hearings on S. 1365

on June 27-2&, L967 (PL-94) As FPaL further testi ied at thattme, '(I)t has been pointed out that in many cases it would be

to the economic benefit of a municipality's elect-ic customers,

the employees of the city elect ic system, and indeed, of 'the

city itself to sell or lease its eLec"-ic facilities to the com-

pany on fair terms."

9 ~ Zn seeking Legislation to modify the Federal Power Ac"

)urisdiction over FPaL, R H. Fite testified that FpaL in factmade no municipaL wholesale sales. Hearings before the Committee

on Commerce, U S ~ Senate, 89th Cong,, Ls" Sess, on S. 218'erialNo. 89-38, page 210 and 89th Cong., 1st Sess., on. S..218. FpaL

was viewed as a potentiaL supolier to Gainesvtlle, howeve: testi-mony of James H. Richardson, Hearings before the Committee on

Commerce, 90th Cong., 1st Sess., on S. 1365 Serial No. 90-23.

See also testimony of John R. Kelley id., Don HcCarthy.

(Clewiston) M. Mac B- Cunningham (FNUA).

Through its participation in ter motorial agreements (see

response to interrogatory 22) FPaL participated in,the denial of

all wholesale service, or ccmpet'tive wholesale se~ice, to uti»'Ilities outside of FPaL's ter itory. As evidence of this, see

1. Documents, cited above, recording FP6L's express refusal to

provMe wholesale service outside of its territory and widespread

awareness of FP8L's policy.2. Sebring's unsuccessfuL ef or s to obtain a wholesale po~er

supply. 'From 1960-63 Sebring sought wholesale power "om FLorMa

Power Corporation. Mhen F)orida Power Corp. refused to sell who(Q

~sale power (see response m, interrogatory 22 re Florida Power

Corp.'s adoption of FpeL policy of refus'ng to make wholesale

D48

lg

sales ta munfcfpaLftfes) Sebring recuested service ~~ ~CO.

Service was denied on grounds that it was precluded bv ter=i-tor'al ag cement. See

(a) August 3, 1960 letter frcm F. Elgfn Bayfess to Richard

Simpson (PC 1979)g

(b) April 30, 1963 memoranda om H Z. McKean ta W.J.

Clapp (PC 2061)t

(c) May 13, 1963 memorandum ~ H.Z. McZean ta W.J. Clapa

(PC 2062)g

(d) May 7> 1963 memorandum fram H.Z. McKean ta W.J. Clapp

(?C 2063)g

(e) May 3, 1963 memorandum to file hy J S. Cracy (PC 2065);

(f) May 2L, 1963 letter from W.J. Clapp to Hon. E.L. Mason,

Chairman Florida

Railroad�.and

Publfc Utilities Commission (PC

2066) )

(g) April 25, 1963 letter from W.C. Mac nnes, President

(TECO) ta E.O. Hunt, Chairman Sebrfng Utilities Commission (PC

2069)g

(h) July 16, 1963 let er from Jaseph O. Macbeth, attorneyfor Sebzfng Utilities Commission to W.J. Clapp (PC 2068) t

(f) August 13, 1963 memorandum far f'le from J.S. Oracy(PCg II

2064)g

(j) September 13~ 1963 letter from W.J. Clapp to Joseph O.' ~ "p

Macbeth (PC 2070)g

(k) September 16, 1963 Letter frcm Joseph O. Macbeth to W.J.

Clapp (PC 2071) g

(1) Octobe 15, 1963 memorandum ta Andrew H. Hines, Jr. from

John Q. Qzavlee re Sebrfng (PC 2072) g

(m) October 22, 1963 letter f am W.J. Clapp to W.C. Mac?nnes

(PC 2073) itatfng, fn part:Appreciate the oaportunfty of visiting with youlast Frfday, and discuss'ng some of au mutual problems.

Our industry fn FLorfda, and especially ouz twocompanies,'fn the las two years have gone a long waysca~fng out a pzogzam of greater cooperation in 'cheinterests of the areas which we serve. Our interconnec-tions have proven af henefft on numerous occasfons, andau generation pooling has enabled us alL ta operate ana nore econamfcal basis..he joint infarmatfon programhas been effect've and resulted in a better unde s andfngby the public of ouz indust g and its problems. he

D49

9-10

territorial agreements that have been worked out betweeninvestor-awned campanics, together with 'policies'nservice areas with municipal utilities and RM~'s, haveenabled each organisation ta do a bet cr jab in theinterests of rhe public. I was certainly glad ta hearyou say that you think these programs have been cf ec-tive and that, in the best "interests of the public, theyshould be continued.

With par icular reference ta the matter at sellingwhalesale power ta Sebring, I was pleased to receiveyour assurances that Tampa Electric Company would honorand abide by the ter itorial agreement between ou com-panies, as approved by the Florida Public UtQ.StiesCommission's Order. Further, I agr'ce with your st'ate-ment that Tampa Elect ic's serving Sebring would be aviolation of aur tcr itarial agrcemcnt." We are per-fectly willing, in case of emergency only, ta helpSebring out with'n the limits of our.abQ.sty> but Idon't think either ane af us should be called on to sub-sidixc the Sebring municipal utQ.ity operation at theexpense of our other customers"/

3. Bartow's unsuccessful effor'ts to obtain alternative wholesale

suppLy.

Bar ow, which was receiving service fram Floxida Power

Corparationi sought service fr'am TECO, but was refused because afthe TECO/FPC ter itorial agreement (see response ta interrogatory22). Evidence of Bartow's desire for an alternative, and itsinabQ.ity to obtain one, include:

(a) In add'tion ta mater'als cited in response to inter aga-

tory 22, see W,J, Clapp Cainesville deposition, at 379-445 and

Exhibits 40-43.

(b) W.J. Clapp draft of presentatian ta Ba tow CityCommission July 6, 1959 (Clapp depositian Exhibit 48).

'For over 30 years to my knowledge, we have had gcodworking relations with the Tampa Elect"ic Company. Oursystems are inter'connected and we swap power back andforth, helping each other out in emergencies to ~urcmore reliable service to the customers af both com-panies We have only recently agreed 'to go into anuclear resear'ch and development program that we thinkwill result im our ultimately building a joint nuclearplant at a cost af $ 25 million. We hope that noth'ngoccurs that would break up this good relationship,because it would not be good for any of the area chateither company serves.

(c) March 7> 1961 memorandum fram E.K. McKean ta J.S. Cracyg

(d) December 12, 1967 let er fram Florida Public Service

Commission ta William A. Norr's, Jr. (attorney for Bartaw) (PC

877)g

(e) January 3, 1968 lct cr from W.A. Nor=is, Jr. CityAttorney and C.R. Cdam, City Manager (Bartow) to William C.

MacInncs, chairman Board of Director's, T CO (PC 879))

D50

9-11

(f) January 7, 1968 'etter frcm W.C. HacZnnes ta Norris and

Odom (PC 878);

(g) June L7, 1968 memorandums frcm A L. Simons ta W.C.

Johnson (PC 1903)g

(h) Peb. 1, 1965 memorand~ from W.W. Snow to A.V. Benson

re: Bate hearings (PC 5017);

( i) March ll, 1959 Letter f~ C.R. Cdom to W.J. Clapp (PC

5016) (requesting permission to taLk with TECO)g

(j) March L6> 1959 letter fram W.J.. Clapp to C.R. Cdcm (PC

5026) (explaining that territorial agreement precludes THCO sale

ta Bartav) ~

4. Wholesale customers of Florida Power Corporation. Since the

beginning of the designated period, Bartov,.Alachua, Ht. Darac

Pt. Meade, and Newberry have been wholesale customers of PPC.

The absence of alternative sources of supply, i.e., the absence

o competit'an among sellers, permitted Florida Pover Corporation.to serve municipa'holesale customers on terms that vere more

restrictive than otherwise would be possiblec and at rates inexcess of what otherwise would bc possible. As evidence of %is,see e.cC:,

(a) March 30, 1965 letter from Mac H. Cunningham, Executive

Vice President to W.J. Clapp (PC 278) (complaining about, FPC

rate discrimination) g

(b) Ha ch 3L, 1965 memorandum from W.W. Snow ta J.S. Oracy

re comparison of municipaL wholesale and BEA rates (PC 1998)high| c

(showing rates to muntcipals ta be ~~.P}car than rates ta coops) g

(c} April 8, 1965 memorandum from W.W. 'Snow ta L.H. Ncvman

'Comparison of Present Hunicipal Wholesale Bates with ~~ Rates

for CaLendar Tear 1963'?C 978) g

(d) September 9, 1965 memorandum from W.W. Snov ta L'Mar

Rane re "Rest ictive" Clauses in Municipal WhoLesale and BNContracts (PC 1992)g

(e) June 17, 1968 memorandums from R.L. Sirmons ta W.C.

Jahnson (PC 1903).

Following the Supreme Court's (1973) af irmatian of 'cCC

jurisdic ian over FPAL, PPaL filed a wholesale tariff with the

cPC. Za the 'nterim since the initiaL filing FPaL has refused ta

D51

9 12

sell irm wholesale power to C'ties under its ~riff, despiterequests for such power. Evidence of these refusals, and relatedrequests, includes:

1. Zn 1973 and again m 1977-1978 FP(L sought to refuse to

provide wholesale tariff service to Homestead. FpaL's attempt to

refuse wholesale power to Homestead in 1973 is detailed in docu-R

ments summarized in, and accompanying, Rober E. Bathen's testi«e

mony in Florida Power a Light Comoanvd FERC Docket No. ER78-19 etal. (Phase Z) at 665-671. See also Cities'riefs in FloridaPower a Light Ccmcan 9 Docket No. ER78-19 at al. (Phase Z). See

also Cpinion No. 57..

Zn 1977-78 FPSL sought, by filings in Florida Power a LichtCeaaea«, EERC ta«tat Roa. ER78-81, ER78-398. aad ER78-400, to tee-minate wholesale tari f service to Homestead on June 1, 1978.

See Cities8 pleadings in that case and also in Homestead v.Florida Power 4 Licht Company, FERC Cocket No. EL78-28. FPSL's

proposed. termination was re)ected by the FERC in Opinion No. 57,

on August 3, 1979.

2. Zn 1976-1978 FPaL sought to refuse wholesale tari f ser-vice to Ft. Pierce. This re usaX is documented in

(a) testimony and related exhibits of Rober" E. Bathen

in Florida Power a Light Company, Docket No. ER78-19 et al.(Phase Z), at TR. 674-685> .and

(b) April 7, 1978 FERC Staff Report, Florida Cities v.Florida Powe 4 Li ht Comoanvd Docket No ~ EL78«.4. See also

Cities and Staff's briefs in Florida Power a Li ht Company, FmC

Docket No. ER78-19 et al. (Phase Z).3. FPaL has refused to provide wholesale tariff service to

other members of the Cities group. See also Cities'riefs inFlo ida Power a Lioht Comoanvd Docket No. ER78-342.

(a) July 28, 1977 letter to Narshall NcDonald frcm

Ha~ C. Luff Jr. and Robert A. Jablon Res Settlement of NRC

Docket Nos. ?-636-A and 50-389A et ale 0 reques ing purchase o

wholesale power under F?aL's tazi f and

(b) February 9, 1977 letter from J.A. Bouknight, Jr. toRobert A. Jablon, effec ively refusing to respond a irmat'velyto Ci ies'equest:

D52

9-13

(c) March 21, 1978 letter from Rober A. Jablon to

Robe " J. Cazdner ze Florida Power a Licht Company, NRC Docket

Nos. 50-389A et al.; Ft. Pierce Util'ties Authority et al. v.Nuclear Reculatozv Commission, UCADC Case Nos. 77-1925 and 77

2101 (requesting nuclear and wholesale power cn behal of inter-venors group) .

h

4. Cn information and belief, PPaL also sought to refusewholesale tariff po~er to Vero Beach in or about L976 —i.e.,during the course of its attempted acquisition of the system.

See Testimony of R.J. pardner m Docket No. ER78-19 et aL.,(Phase Z), ~ ~ 605 ~

Zn addition to its zefusals of requests for taz'ower( inthe interim since the f'ling of the initial.wholesale tat'ff,PPaL has refuied to sell firm wholesale power in the form of (a)

r

unit unclear power or (b) other base load power. Refusals to

deal in wholesale power effectively depr've plaintiffs of even

limited .access to nuclear powez. Nuclear power related requestsand refusals are discussed at 17. Evidence of requests to sell

izm base load wholesale power include1

1. Requests by Pt. Pierce foz base load powez, which FPtL

failed to respond to affirmatively. See

(a) December 29, 1976 letter of Walter Baldwin,

Dizector of Utilities to Mr. W.E. Coe, Director of Power Supply;(Requesting rates for hase, peak intermediate) >

(b) February 4, 1977 letter f=om R.G. Mulholland,Senior Vice President FPaL to Mr. Bill Bidle Acting Director,FPUA (suggesting more appropriate aLternatives);

(c) April 29, 1977 letter fzcm Ewell E. Menge to R.Q.

Mulholland (noting failure to respond to request for quote forbase Load)g

(d) notes of meeting in the of ices of FPUA 11100 a.m.>

August 9, 1977 (recording PPUA requests for base load, peak'ng,intezmediate as stated in December'8, 1976 Baldwin letter);

(e) August 17, 1977 letter to R.J. Cazdner fzcm Ewell

Menge ze: meeting of August 9, 1977 regarding the .PUA's

Reques foz Various Power'upply Services crom PP6L (summarizes

meeting) g states that FPaL will not quote prices, bu" will take

D53

9 14

the mat er under advisement

(f) September 12, 1977 letter f"om J.R. Gardner to

Ewell E. Menge (agreeing that, with certain exceptions (not

related to base load discussion), Menge's summary confirmed to

his understanding of the meeting) g

(g) Ocher 5, 1977 let er from Menge to Gardner

( states Ft. Pierce' belief t!mt it is en"'ied to base load

purchase) (all the above appear in BEB AR-AX of the Bathen ER78-

19 testimony).2. Zn the course of 1973 negotiation with FPaL, Homestead

sought base load power. See, ~e.

(a) October 2, 1973 letter from J.J. Be~ to M=. F. E.

Autrey res Negotiations (270822 ) (at page 3, 'the City ofHomestead, for its part, will welcome .the oppo~nity of

purchasing in addition to this Base Load power Commit~ent such

Zntermediate and Peaking Power as may be available ~mm the FPsL

Co- at a rate that is mutually 'advantageous."

(b) August 10, 1973 Nemorandum to file from E.L. Bivans

re: ~posed Znterconnection City of Homestead (270812);

(c) September 27, 1973 Nemorandum rom Willis Zrwin to

Mr. CLark Cook re: Znterchange Agreement Ci y of Homestead,

Florida (270818);

(d) October 13, 1973 FPaL Nemorandum (author not clear)re~ James J. Berry letter to F.E. Autrey, dated October 2, 1973

General Comment 4270830) 1

(e) August 4, 1973 letter from James J. Be~ to E.L~

Bivans res Negotiationss City of Homestead with FpaL Co.

(f) Sept. 2'7, 1973 memorandum from Mild.is Zrwln to

Clark Cook re: Znterchange agreementc City of Homestead, Florida

(270009) ( of special interest is Schedule 'D, 'r firm power.

The City would'like to purchase their base load or approximately

26% of their total demand beginning in late 1975."

3. Homestead's base load ef orts continued in 1974. See,

5or example g

(a) Letter from James J. Be~ to Ralph G. Nulholland,

January A, 1974, Homestead states:

D54

9-18

'As pzeviousLy reviewed, it is anticipated that at 'easin the near ezm, the additions of generation which willbe accomplished by «the C'ty of Homestead will be limitedto peak'ng and intermediate duty units. To the maximumextent possible and consistent with sound planning byboth Utilities, it is contemplated that the City ofHomestead will seek to defer additions of generation andthen will cooperatively plan such additions so that boththe City of Homestead and the Plorida power and LightCompany may optim'"e the benifits that may be madeavailable to both through the

Znterconnection.'b)

Eemorandum for Discussion No. 3 to the SpecialCommittee.to Review Znterconnection, City of Homestead, Plorida,Pebruary 22, L974, p. 6, shows that the City of Bomestead viewed

the interconnection as a means of purchasing energy to avoid highfuel costs. Pages 7-8 state that the interconnection "vill per-mit the City of Homestead to purchase their power at high load

factor, and this way, to take maximum advantage of the economy

that is avaiLable under cu ent ratescheduLes.'c)

Zn memorandum for Discussion No. 4 to the same ~-mittee, dated February 23, 1974, the purchase of power throughthe interconnec ion is again considered in con)unction with the«

operation of Eomestead's own generation. Zt should be noted thattwo disadvanrages listed were "the natu al reluctance to enterinto agreements which have the appearance of reducing the inde-pendent operation of the electric system of the C'ty ofHomestead" and the apprehension that i provides the 'foot in

Ne door'hich would make it easier for the plorida power a

Light Co. ~ f they were so inclined to take-over the operation o

the Homestead System." However, the report notes «that Homestead

"is currently dependent to a degzee on the Florida Powez a LightCompany' i.e., that it was then purchasing power 'n a less eco-

nomic mode than cauld be achieved through purchasing at a singlepoint and parallel operations. These considerations are at pages

1L 18.

(d) Zn )~mozandum "or Discussion No. 6, February 23/

1974, and Memozand~ oz Discussion No. 9, February 23, 1974

( "What is the 'R'ate" ), it is again made clea Mat

Homestead's desire 'or an interconnection is motivated by the

desire to purchase high load factor po~er. Zn the Lattermemoranda, the SR tar'ff is encLosed and specific rate com-

par'sons are made ~ Zn Eemorandm for Discussion No. 10 ("The

9 16

Cost =valuaticn of Lnterconnection Developed on the Basis ofActual experience, February 25, 1974), Homestead's engineers com-

pute the savings which would have been possible to Homestead/ i /

thzough use of a parallel "ie and Lnteg ation of purchased powe"

with Homestead's generation, Homestead could have purchased at a

very high load factor.I

4. After the Lnterconnection was completed, FPaL tried towithdzaw the availability of Lzm wholesale power purchases, even

though the interconnection was clearly planned by Homestead as a

source of firm wholesaLe power. In addition to the records inER78-19 and HR78-81, and the A Ldavit of James Berry Ln those

dockets, Homestead notes the following documentsI

(a) ~ 'A FeasibilLty Study of the Power Produc Lon

Facilities-Five Year Plan, City of Homestead, Fldrida, June

197& g ~ Smith a CL leSpie, Wgineereg Inc ~ I

(b) January 13, 1978 let er from Henzy C Peters, Jto Robert J. Cardner mquesting response to December 20, 1977

letter'with regazd to izm power rate:"As you )cIow, Homestead is most concerned that Ltachieve the lowest possible powe supply costs. At ourmeeting you indicated that through the purchase o powerunder our Interchange Agreement, Homestead could achievelower rate than through the purchase of S.R. PoweHomestead would not participate in the rate case.However, under economy energy and other InterchangeSchedules (except foz Schedule D) < Homestead must payfoz energy based upon your Lnc cmental productLon costs.Therefore, its rate payers are deprived of any benefitsfrom the purchase of base load nuclear oz gas gene atedenergy. . . . However, since you have not yet submitteda proposal for Schedule D Power, as an Lncrementalmeasure, Homestead is entitled to purchase S.R. Powe

Please ei her send Homestead a proposal foz the sale ofSchedule D Power or confizm Homestead's right to can-tLnue S.R. Purchases."

( c) Memorandum to Henry C. Peters from James J. Be~February 14, 1978 ("Mere is a question Ln my mind here as towhether or not Florida Power 8 LLght Company Ls actually nego-

tiatLng Ln good fai&.")(d) Memorandum for the Record/James J. Be~, March 1,

1978> "Meeting with Florida Power and Light Company, March 1,1978 ; Memorandum or Record, Ma ch 2, 1978 (James J. Be~:Vegotiations, City of Homestead, Florida with Florida Power 4

Light Company - and cela ed cor espondence "ansmitted to R. J.

D56

9-17

Cazdner, Vice P esident, Plorida Power 4 Light Ccmpanv ("Me Cityof Homes ead asserted in the meeting that the City had an abso-

lute r'ght to buv power at average cast

(e) Letter frcm James J. Be~ ta R J. Cardner, March

24, 1978 zecagni=ing canflict in the wholesale rate case and

requesting information;

(f) Let er ram James J. Be~ ta R. J. Cardnez, dated

April 25, 1978, requesting firm power beginning in May 1978)

(g) The Apzi3. 9, 1979 letter from J. K. Daniel ta H. C.

Peters, Jr. containing a Rate Schedule PR, including Exhibit A

stating s

'Service to this delivery point is being voluntarilycontinued by the Company pending final decision inPederal Wergy Regulatory Commission Dockets No. ER78-19and ER78-81 (Phase I) and will be discontinued at thattime unless otherwise ordered by the Commission.

and related correspondence, and f'lings at the Pederal Energy

Regulatory Commission. Mis includes

(i) A June 2, 1978 letter fram Daniel Cutman to

Mr. Robert J. Cardner confined that Florida Power ! LightCompany has commenced service ta the City of Homestead.. ~ ~ (Z]fPPaL has any questions cancerning this matter... please con-

tact myself or Rabert Jablon, who aze authari=ed ta discuss such

questions with yau.

(ii) Letter zom Rober" J. Cardner ta James J.Berzy dated June 2, 1978. ( We left the meeting with the

distinct impression that as long as you had tentative figures,you are willing ta wa'n il th'e legal issues were resolved.Apparently Homestead's legal caunsel, without any Nowledge afour negotiations, decided ta demand SR-3. power as a means of'es ablishing your rights'. ~ .")

(iii) May 19, 1978 lettez from James J. Berry to J.K. Daniel, 'Homestead responded, establishing that it was the

City's intent to maintain as high a load factor as possible/approaching 100%.

(iv) Letter from James Ji Be~ ta Mz. R. J.Cardner, June 29, 1978 ("You are on cantinual notice of that the

Ci y desired a form o base load or 'SR'ower. Tndeed, had

not been stated, the econom'cs of Homestead's position would have

D57

9 18

cade this cbvious... ~ We know of nothing to he resolved wf.W

regard to the L973 contrac ccnnai~ent aper frcn a written pro-posaL hy =PaL to &plangent the tardes of aha- c"aaai~ent which

incLuded access to LS Sf at ates and taws no less advantageous

than the available SR rate.(v) Reply letter ~cn R. J. Cardner to Hz. James J.

Be~, JuLy LL, l978.

D58

«e A f e «e~ ds» t ~t pI ~~pe ~~ 4 t pave pool c„"

5 L, C C«~»" »a L. L +0 sg «11« Ies4 s r«»

ca»~«~c»,sc J p«~e«» trh4 ch gapa»»g p g» c«««««A c« ~«r4 r«~~44 «4e

pe so~ ~qcd~~st; ra~ ar We =ac, es" ('.c., M t~ a" o"aL,

pe»scc o» by tdl cp&NLLe) W o 31 4 l i s a j Ll;l pe scL5

p=eSe " et ""e ~ -"d =~eSt Van ~de; Cm Or ""e "eC;eS=;

yemc" ta vh the "d~esves eC"-dssM ~ c pemc" @he

"espoused ta w "eq'est; roe ar»he "espouse ('.c., v

c- o"al, '" pe=sar. o= bp'elephone) a"" ' O"ml a l 'S= Oc

all pe"sots p=ese"- at ~e ~~e Me respaase +as g've"; pemc-

to shen the "espouse van ac!d"essed,; mC Can Or "e "dSPCCSe

D59

',15 1

Interzoaatazv 15

15. Fzam at Least the onset of the designated period ta Ne

beginning of the 1970's FP&L excluded Ci ies fram pooling and

coordination arrangements in which it took pa" . It did so

despite.knovledge of C'ties'eed for access ta coordination and

desire for coordination. The 'primary means af FPaL's exclusion

were refusals, boch alone and in combination with others, ta deal .

with Cities (see belov and response ta interrogatories 9, LL> L4<

and 20) which effectively precluded thei access ta the pool

es~lished and operated by FPaL and other large systems.

In zhe period folloving the interconnection ot Cities with

the peninsular vide transmission g 'd, FPaL has refused and

resisted pooLing and coordination with Cities by in er alia, (a)

frustrating ef orts af utilities throughout the sue ta engage

in efforts ta further pooling, (b) refusing ta provide

"=ans=issian ar angenents that are requisite to pezmi.tting and;.

maxim'ng caordinating economies, (c) refusing and resisting the

development af cent"all-ed ecommic dispat"h and (d) refusing ta

entez inta )oint generation and transmission planning or

construction activities vith Cities.Since at least the beginning of the designated period FpaL

has saught ta promote and,engage in pooling and coordination

activities on a peninsuLaz-wide basis, with limitations as ta

participants. Examples of these activities have included:

l. Bilateral arrangements rh"ough interconnection. On

informa ion and belief, since at least the onset of the

designated period, FPaL has been intezconnec ed vith and

exchanged elec -icity wi&, the Flar'da Power Corporation and

ampa Elec "ic Co. 'ee, ~e... (a) dacumene5p~ 6-7, attached

Cit'es'ugust 1979- 'Memorandum of Fact ta CounseL for FPaL,

and documents cited at "2 beLow) (b) Oct. 25, L965 Letter from

S.A. Bzandimore, Assistant CounseL (F'orida Power Corp.) to Ben

R. Fuqua (263187-263190) and Nov. 13, 1965 letter from Ben Fuqua

ta Brandimore (263193) (re )oint transmission planning); (c) Hay

20, 1975 letter fram J.S, Bell ta R.T. Bawles, Florida Power

Corporation (261240) ("F?aL has long ago seen the advantages of

D60

15 2

both coordinated planning and interconnected cperation. This isevidenced by its associat'on with the Florida Elec ic Power

Coordinating Group and its predecessor the Florida Operating

Commit ce since their adaption. Wc have been interconnected

with neighbor'ng systems sime 1941 and, to eur knowledge, par

t'cipatad in alL smtawide planning studies proposed in

Florida. )

2. Joint nucLear power planning. Zn 1955 FpaL entered into

an agreement with Florida Power Corporation and Tampa ElectricCompany to "pool interests and resources to buiLd a raclear plant

with government help." Sce A Half Century of People Scrvi~People, A History Of Florida Power 4 Licht Cornea, page 94. See

also Statements of George Kinsman, Secretary, Florida Nuclear

Group and Vlcc President FPCL Cor g at al., AEC Author sing

LegisLation Hearings, Hearings before the Subcommittee en

Legislation of the Joint Committee on Atmoic Powe" Energy, 85th

Corp., 1st Sess., 1957; June 28, 1957 letter ef W.C. MacZnnes

Chairman, Florida Nuclear Group to Mr. James T. Ramey, mccu ive

Director, Joint Committee on Atomic Encrgyg February 27, 1962

letter of W.C. Maclnnes, Plorida West Coast Nuclear Group, Znc.

to Congressman Chat Hollifield, Chairman, Joint Committee on

Atomic Znergy.

As FpaL stated in support of its Turkey Point mclaar license

application, (3)aginning same tan years ago, Applicant par-

t'cipatcd with Florida Power Corporation and Tampa F'cct=ic

Company in a raclcar power plant study group, and has worked wi h

others active in the nuclear field. Thc objective was te be in a

position to cons"act a.nuclear power plant when just'fied." See

FP@L's March 22, L966 'Application for Licenses Under the Atomic

Energy Ac" ef 1954 as amended for Turkey Point Nuclear Power

P'o jcc g ~ AEC Docket Nos. 50-250, 25L, at 7. See also jo intnuclear power planning in 'the context of Florida Ope ating

Commi tae activities. Sce, e.cr. Florida Operating Committee,

attachment 3 to the record ef the June 28, 1965 meeting.

("Nuclear power plant data cove ing power plants has been pro-

posed by GencraL Elec ric for usa in the Joint-Long-Range

study,",)

D61

15 3

3. he F.'orida Operating Cornittee. Xn Oc "ber 1958,- psL

President and General Manager Habert A. 9'te proposed Wt repre-

sentat'ves of FPaL, T CO and Florida Power Corporat'on meet =cm

e to ~6e9 to discuss the interconnected operations ot the

three companies and matters relating thereto. This group was

often referred to by membersp imluding in Committee minutes, as

the Flor'da,Pool.'ities note that planning and important

operating information was exchanged within the group on a con-

idential basis. See, e.a., Nov. 7, 1968 transmittal f"om E.N.

Page to Florida Operating Committee (203882-203889) (The

transmittal attaches a memorandum entitled Power Supply-Peninsular Florida Estimated Situation - 1970 and 1971" and

stated that the memorandum, "prepared with your assistance, isbeing dist ibuted on a limited and co<identiQ, basis.')

For descriptions of the pool's activities see, ~e.

(a) October 2, 1958 letter f"om Fits to W.C MacZnnes

(PL 899);

(b) September 18, 1961 Florida Power Corporation Presa

release, "New Power Line Addition Strengthens 'Power Poolk fcrState's Future Needs s

(c) March 1, 1965 testimony of N.J. Clapp, P=esident

Florida Power Corp. in FPSC Docket No. 7767-EU, a 66-72 (PL

933 );

(d) March 149 1973 deposi ion testimony of Maurice F.

Hebb, Jr. in Gainesville casey

(e) ).964 National Power Survey, at 239.

( ) Tes-imony, evidence and decisions in Florida Power

s Li ht Conoanv, FPC Docket No. F.-7210)

(g) Studies and reports produced by the FOC (which are

avai6lable to FPsL) g

(h) Testimony of R.J. Cardner, Florida Powe a Lichtcoaoaeo, . Rc casket No. ER79-19 at a1. (skate zz) ps. 472 76.-

(i) February 24, 1963 National Powe" Surve Studv A"ea

23 report.

(j) May 1961 Sunshine Service newsletter article"Znterconnection Key to Florida Power Pool" g

D62

4. Tbe Inta onnected Systems Group. See 37 F?C 548-549.

As «the above mate 'a3.s indicate, EPaL has long been aware of

the benefits to FPSL of 'nterutility coordination. It has simi-

larLy been aware of the part'cular need of @ad.L systems for

coord'nation, especiaLLy where such systems are not in cont as

to FPiL, large'enough «to attain economies of scaLe in base load

generat'on, fuel procurement, and fuel diversif'cation. While

recogni=ing the needs of smaLLer systems for coordination, FPaL

not only excluded them om the af angements referred to in «1-4"

above, but did so actively and with krawledge that such systems

sought access to the coordination, pooling, and interconnection

ar angements wh'ch FP6L itsel engaged in and benefit ed from.

For evidence of FPaI" s awareness of the needs of smaller

systems to access to coordination see e.cC.,

(a) In its attempt to «take over systems ."-Pal sought to

rely on the claims that smaLL isolated systems would be inef»

ficient, but

(b) If the City took service from FP8L it cou3.d benefitfrom FPaL's large plants; includ'ng +clear power. Seep ~e ~ ~ g

(i) 'Continued Cwne ship by City of Clewiston vs.

Sale to FPaL Co.,'ontained in 3.966 package marked "CLewiston"

"BHF (251017-251030) (The "disadvantages" of continued municipal

ownership are said to )nclude "(C)enerating facilities of a siteusable b he city are unthinkable when compared to the economies

of the enormous plants being built by pub3.ic utilities. In the

past two years, the FPal Co. has retired as uneconomical ~ twelve

p).ants ranging from 12,000 Kw to 23,000 Kw capability." The

advantages" of sell out to FPaL include: '(0)ur Ciewiston custo-

mers will participate in any future savings from the large s=ale

development of conventional and mclear power plants."

(ii) Oct. 18, L967 'KB3 notes regarding pros and

cons of Homestead sellout (270210-270219) ('FPaL Co. can orov'de

lower rates or the citizens mass production and divers'ties pro-

vide greater economy. Small plants are notflexible.'iii)

"ELectric Utilities Service for mew Smyrna

Beach Preliminary .Evaluation of Al ernatives" (280883-28089»

(showing benefi«s to include fuel diversification, 'ncluding

15 5

nuclear, and more eff'cient plants)

(c) Apr'1 21, 1956 FPaL lerter to "Our Friends and

Neighbors in Lake Citv'PL-1362)s(d) February 15, 1956 letter from W.J. Clapp President,

Florida Power Corporation to Bonorable )Array E. Bagen (PL-

1470);

(e) "Preliminary deposal of Elec -ic Utility Service

or New Smyrna Beach by FPaL Co. (August, 1979 memorandum, docu-

ment )10) ~

'f) Branch> se Issues Daytona Beach 1976" (261542-

261546);

(g) 1964 National Power Survey, Chapter 16.

(h) June 26> 1967 testimony of James G. Richardson and

John R. Kelly in Federal Power Commission Jurisdiction, Bearings

Before the Committee on Commerce, United States Senate, 90th

Congress> First Session;

(i) Comparative Analysis of Municipal and Investor-Owned Utilities and the Benefits to Their Customers," Financial

Planning (FPaL), December 11, 1973 (2614977261499)r

()) March 22, 1958 letter ~m Finn Ramberg (member ofVero Beach Long Range City Planning and Advisory Commission)

President FPaL, and attached questionnaire (111021);

(k) May 10, 1958 Report of the Long Range City Planning

and Advisory Committee of Vero Beach, Florida: Subcommittee on

Electric Light and Power.

From the star of the designated period to the early 1970's

(i.e» in the period prior to rhe Ci les'ompletion of inter-connection arrangemen s with FPaL and Florida Powed Corporation)

small systems continuaLly sought the benefits of coordination, inefforts of which EVIL was aware. Examples of 'such efforts, and

FPaL's awareness include the following:l. See generally, March 19, 1959 letter om Edw'n Vennard>

Managing Director, Edison Electric Institute to "Chief executives

Member Companies'PL 319) (attaching speech given at FMUA can-

terence re potential coordination between municioal and coopera-

«ive systems) ~

— o64—

LS~

2 ~ Zn 1955-56 Seminole Electric Cooperative sought coor-

dination in orde" to go forward with a proposal to build a

nuclear unit. By December 7, 1955 letter f=om W.J. Clapp to

Parks E. Baker (PL-325) with a blind copy to Robert H. Fits,Flor'da Power Corporation declined ro provide the backup. As

stated by Seminole's LM. Baker, in a document ~vided by FP&L in

the Gainesville discovery (PL-324), the inability to cbtain

backup killed Seminole's proposa' See May 1S, 1956 UiS.

Department of Agriculture Rural Elect=ic Administration Press

Release (PL 324).

3. Zn 1958 Vero Beach asked FP&L if it would "consider

pooling reserves with Vero Beach and Ft. Pier e or with an auto-

nomous ELec«bric Power Body for these Cities for the purpose and

.installation and operat'on of relatively large -and internallymore ef icient elect=ic powe" generahon units «than might be

feasible i each interested party goes it alone.'arch 22, 1958

letter from Finn Ramberg to ":p&L Co., suora. As evidenced by the

Nay 10, 1958 report of the Long Range Ci y Planning and Advisory

Committee of Vero Beach,. Florida, Subcommittee of Vero Beach,

Florida.,Subcommittee on Electric Light & Power, and related

documents cited in response to question j21, FP&L stated that itwould rat sell power to Vero Beach, but was interested in taking

ove «the system. As the May 10, 1958 report explaineg, the least

desirable alternative for Vero Beach was further operation as an

isolated ut'lity. Zn the evident'absence of a commitment to

pooling from FP&L, the repor" recommended consideration of

pooling with Ft. Pierce or sell out to FP&L, so that the advan-

tages of coordination and economies of scale couLd be obtained.I

As FP&L knew, in the absence of a pooling commitment from: FP&L,

Vero Beach and Ft. Pierce did undertake coordination between

themse 1ve s.

4. The Florida Hunicipal Power Pool. On the proposal for a

Florida Nnicipal Pool, and Fp&L's awareness of this proposal

see, e.c.,(a) Benefits of Power Pooling and its Significance

i(embers of the Florida Hunicipal Utilities Association,'yRober- E. Bathen, be ore the, Seventh Annual Can erence, FLorida

D65

15-7

Munic'paL U 'Lities Assoc'a 'on, Lake Worth, orida, April 1 3,

1964 g

(5) 'Florida Mnicipal Power Pool A, Must Rr Yankee-

Dixie," by Rober. E. 'Bathen, before Second Annual Neeting Yankee-

Dixie Power Association, Washington, D.C. June 2-3, 1966>

(c) July ll, 1967 let er ~m W.J. Clapo to F'scher J.

Black, Robert H. Fi~, and Clyde A. LLLLy Jr. (PK 1196) ~ By the

lette, Florida Power inter alia, t=ansmitted a map of the

Potential Florida Municipal Power Pool," warned of Bathen and

Spiegel's efforts, and provided a Florida Power analysis «~tclaimed that the municipaL pool couLd not achieve the ecoaamies

of scale to compete with "the presently existing and rapidlygrowing Florida Power Pool~

(d) March 30, 1966 letter f«om Raymond R. Risavy

(ALLL~almers) to Brnie Bivans re Proposed. Florida Municipal

Powe" Pool (204024);

(e) Dec. 21, 1971 memorandum from H.W. Page to MarshalL

McDonald (204021) (enclosirg a "BQL proposed last yea" which

would set up municipal electric cooperatives" and "a paper pre-

sented bv one of the municipaL consultants advocating a Flor'da

municipal power pool. You may not wish eo read it all, bu" the

map is a must."

(f) May 3, L971 memorandum from Ben B. Fuqua to A.M.

Davis, attaching comments on E.B. 1539 relating to municipal

elect=ic cooperatives (204022-23) ("Let us suppose ~at the

Yankee-Dixie pro)ect became a reality, with the Florida nunicipalelec "'c cooperative grid as its southern anchor. Zt is readilyseen what a probLem tha" would pose for the inves o" owned

electric companies in Florida."5. The FMUA ''nterconections commit ee". On the FLorida

municipals'ffor s to achieve the benefits of interconnection by

'nterconnection amore themseLves; documents related to the work

of the. Florida Municipal Util'ies Association Znterconnec ion

Commitee, including, e.c'.:

(a) Minutes and reports of 1966-67 municipaL ut'li ies

groups showing interest in interconnec ion and pooling. These

meet'' ngs took place following

(i) the refusal c Qainesvil'e and Ta'3ahassee's

requests for access to the Florida Pool (as shown in documents

refe ed to below) .

(ii) the refusals and resistance of both FPaI, and

Florida Powe Corporation to interconnec 'ons with Cities (as

shown in the Gainesville case and in documents refer ed to below

and in response ~ interroqatozy LL and;

(iii) public knowledge of FPr 's policy of

refusing to sell wholesale m municipals and FPC's zefusal to

enter into fu the" mun'cipal wholesale agzeements as shown in

response to interrogatory 9.

(b) June 6, L966 letter from T.w. Bos wick

(Jacksonville) zegarding the formation of a municipal

'tezconnection Committee with the pu~se of studying the

possibili"'es of munic'pal interconnections th"oughout the

state ~

Nr. Sostwick notes~

I think the committee should also weigh theadvantages that can be gained by the sma3.let muni-cipalities tying to the larger municipalities> suchas Jacksonville, Orlando oz Lakeland inasmuch asthe larger ones aze already tied with the. privatepo~er companies and there would be no necessitythen fo the smallez municipals to chance the domi-nation of their system by a direct interconnectionwith a private company.

X think, too, the committee should explorethe attitudes of the of icers and d'rectors of theprivate companies in zelation to ouz'eterminationto have a municipaL grid. Since collectively wewould have stzong support for our systems, it mightmake the private companies face the facts of lifeand accept us as a part of the statewide operatinggrid system. I have had some indication that thereis a softening in their attitude.'>

* t"I think the committee ought to consider

jointly owned large nuclear genezat'nq plants andwe should discuss the legal aspects of )ointo~nership of faci3.ities."

(c) July 28, 1967 'Repoz of the BlUA, Powe" Supp3.y

Commi tee." The zepor, transmitted to public systems in both

.PfL and Florida Po~er Corporation service areas, cocx:Ludes inpart:

The municipal systems in Florida must t'e-ozdie.2. Some of the municipals will be zecu'red

commit bemselves to gene at'on and some of the

D67

U 9I

t

aun'c'pals will have ta c~ft themselves topu=hase their wholesale powe" requirements from aFlorida Nunfcfpal generation ared ansmfssfon orgassni=cd as a norprofit corporation.'3. The committee feeLs ~Jet a generation andtransmission system Wm the Lakeland a"ea ta theCafnesvillc and Jacksonville area is entizely prac-tical and feasd&le, bu that the same could nest beaccomplished within the next few years due ta thepressures we may expect from &e private power ccm-panies upon our laca3. and state authoritiesea

(d) FNR 'Znterconnectfon Questionnai"e'nd related

information on benefits of pooling. Cities nate

(i) the questionnaire was cfrculatcd by Florida

Power ta FPaL and other private utflftfcs, with warnings (sec

July 11, 1967 let er from W.J. Clapp ta Fitc, et al., suarah

(ii) among the "advantages" cited far power'ooling

are, '(O) nly by being electrfcally 'ntezconnccted through a

s"rang ~ansmfssfon system, owned and operated at least in part

by the Nxnfcfpal systems, can the ue benefits of scale in largeoade"a eoaesatdoael aad eoaleaa siesta seams te Motte'telsystems." (emphasis added)

6. On the efforts of thc "twe)ve cities" ~up,to achieve

the benefits of pooling and coordination, and Florida Power a

Light's awareness af these efforts, sec, e.a.,(a) "The Twelve City Story A Rcpor on Action ta

Date'y

Twelve Florida C'ties, Robert E. Bathen, Before the American

Public Power Association, Legal Seminar,. October 26, 1970.

(b) On FPaL's g eat coa=ezn" over 12 Cities activitiessee Apri3. 3.3, 1969 FPaL memorandum to J.G. Spencer Jr. attaching

clipping re plan of 12 citfes "to bufld "Nefr awn power produc-

tion system." .(PL 476) The handwritten'ate states "Jfm—this proaoscd 'system'ould really be 'stretched aut'romChattahoochee and Qufrecy to Lake Helen (near DeLand) would reallyinvolve quite a lot of transmission. However, the fac ~Pat a

'study's to be made certainly is a matter'f great cavern."

(c) Sce a3.so documcn s produced by Florida Powez

Corpo ation in the Cafresvf lie case.

7. -he Yankee-Dixie, Plan. On the Yankee-Dixie Plan, sce

gene ally/ "The Yankee-D'xiee Coordinated Plan Fo Providing Low

Cost Power to the Eastc n United States: A Dcsczfptfon of the

- D68-

15-10

Yankee-Dixie Power Associat'on Zm. and i s Cbjectives Zncluding

the Details of the Revised Con=eptual Engineering Study Made For

the Coordinated Plan,'une, 1966. See also Yankee-Dixie docu-

ments available rom Gainesvtlle warehouse. See also,

(a) Dec. LO, 1965 "BBF ~orandum to Fite re City of

Jacksonville (253.156) (re- Pere=' inquiry to JAX cotrerning

Yankee-Dixie ),(b) Dec. 9, 1967 memorandum f"om A.P. Pere- to M.J.

CLapp, Confidential City of Jacksonville Department of Elec ic

and Mater Ut'lit'es (251757) (re meeting with JAX, including

discussion of Yankee-Dixie) ~

8. Coordination between neighboring systems. Zn the

absence of access to the "Florida Power Pool,'maLL systems did

seek to enter into bilateral coordination ar angements with theirnearby smaLL neighbors. These effor s included (a) Ft. Pierce

Vero Beach coordination, including interconnection.(b) Kiss~ee- St. Cloud coordination and (c) proposed Sebring - Mauchula

.coordination (see inte~gatory 1L).

Since about, the onset of the designated period smaLLer

svstems in Florida have been interested in nuclear power. Their

desire to participate in nucLear power was Limited by lack of

access to coordination and economies of scale. FPaL knew of thisinteres, and of the factors Limiting the ability of the smaLLer

systems to achieve the benef'ts of nuclear power. Evidence of

this includes, in addition to documents referenced elsewhe e

relating generally to Cities'eed for coordinat'on and access to

economies of scale, the following:3.. Documents relating to Seminole Cooperative's L955-56

effort to gain access to nuclear powe, cited suara.

2. Ar 'cle en~Dried "Bravo( Lake City" in Ju3.y 1956 issue

o Public Service magaxine, cbtained rom FPaL's files inCainesvULe discovery (PI 1319) ("... the c'tixens committee

stressed two main object'ons to Lake City inject'ng itself inro'he manufacturing of elect=ic energy ... 2. A small city-owned

plan cou3d not provide dependable serzice arA'here was g ave

dange that it might even become obsolete in a few years due

atomic power deveLopmen .")

D69

15-LL

3- Orlando's L956 pzoposaL ta build a demonstration zeac-

See '.

(a) 'Seven Proposals far SmaLL-Scale Nuclear Power

Demonstzat'on Reactazs Received by Atam'c Fnergy Commission, AEC

ReLease No. 777, Pebaxary 7, 1956.

4. On Pt. Pierce's 1959 proposal u build a nuclear unit,see

(a) "AEC Receives Five ProposaLs ta Operate SnaL3.

Nuclear Power Plant,'EC Release No. B-241, December 29,1959'b)

November 6i 1959 letter ~m James P. Shivler, Jr.,Reynolds, Smith a H'lls to City of Ft Pierce re proposaL farEngineering Services Nunicipal Electric Ut'lity, City af Pt.7lcl c.c~ce, Florida;X

(c) Citv Commission m'nutes of Nov. 9, L959 and Dec. 7i

1959.

5. On New Smyrna Beach's interest in obtaining access ta

atamic po~er zan purchases f=om Ppaf see Jan 12, 1959 CityCammission minutes, at pages 2L3-214.'ee also. Narch 22, 1965

lette =cm J. G13lespie ta Mrs. Edythe Hester, C'tyCommissioner, er losing copies of QLLLespie's 1959

)zec~endations u"ging power purchase, rather than canstruct'on

of new gene ation. he recommendations stated 'nter alia,"Progress is so rapid at this time tha in f've or ten yeazs an

en"'rely different type of generation may be developed, which

could replace the entize plant at less cost than would be

incu ed at this ~ie and it is mt beyond the realm of possihi-

lity that.atomic power would then be available za all communities

such as New Smyrna Beach. Zn fact, in a petiod of te'n years we

would be safe in saying that the availability of atomic power

would be probable instead of possible...").6. On Ppat,'s awareness of Vera Beach/Ft. Pierce's interest

in atamic po~er see Feb. 29, 1960 memorandum fram "Dick H"

(Richard Hill) a Ben H. Fu~a (LLL058) ('prom an article in the

Vera Beach paper it leaks like they are thinking of mak'ng a

request the sane as .= . Pierce far atonic energy plant.")7. On the indus ~~ide belief inthe 1960's that there aze

s'gnificant economies of scale in nuclear po~er, -Mt smaLL uni s

D70

would not be immediately ccnpet't've and that smaLL systems

should seek ta gain the benefits af rwlea «Wwugh pooling, see

e ~ c«

(a) Narch 2, 1961 letter fram Frank R. Pit~anDf.rector, DSAEC Division of Reactor Development ta Alex Radin,

General Nanager Ane 'can Public Pave Associac'on. PitWan

advised that AEC will not accept any proposaLs submitted in con-

nection with the "Snail Nuclear Power PLant invitations'inwh'ch Ft. Pierce submitted a proposal). The Letter fu ther

explains that:'Recent studies on the cu=ent sta us and econamicpotent'al of snaLL size nuclear powerplants indicateplants based on existing technology currently are noteconomically at=active to smaLL utilities because ofhigh capital costs and rest ictive siting requirements.The ecoranic potentiaL far such plants far ocher thanspecialized applications does rat appear favorable atthis time. In view of our analysis of the studies andexperience with the SPHR project it is con=luded thatproceeding with the SPHR under any available cooperativear angement would not be expected ta make a'u ficientlysignificant conc=ibution to the achievement of ecomni-.cal power for gener'al apolicatian in «this size range as,"to justify expenditure of the funds necessary toconst uc t the pro ea type a«« this bine ~

(b) Statenents of national atonic energy experts and

of icials > the praspect for economic smaLL reactors was atimmediately favorable, and that smaLL systens should seek access

to ruclear power through interconnection and pooling. See e.c.,presentations by Allen J. vermeer leyden, AEC deputy assis ant

general nanager or reactarsg Glenn T. Seaborg, Chairman AECg

and Rep. Chester Holifield, as repar ed- in Feb. L965, April 1965

and June L965 APPA Atomic Power Newsletter.

(c) 'Small Nuclear Power Plan«s" Reactor Ergineering

Division, Ch'cago Operations Of ice, USAEC, Orch 1967, 3 volu-

mes ~

(d) 'Interim Report Lang Rarge Generation-T ansnission Planning S udy" by Larg Range Study Group af Florida

Opera 'rg Comi tee, July L966 (showing FPaL calculations of eco-

nomy af scale in ruclear plants);

(e) July ll, 1967 Letter '"on V.J. Clapp ta Fischer S.

SLack, Robert E. Fice, Clyde A. Lil.ly, Jr. (PL 1196)

(=ransnitting Florida Po~er cr'qae of the economies of poten-

t'al municipal un'ts) r

D71

15-13

(f) Documents cited elsewhere in response m inte~ga-15 showing municipaL recognition that access to coordinat'on

or pooling was rhe key to access to nuclear.

8. Zn 1968 Gainesville requested and was refused access to

FLorida Power Corp.'s GL-3 un't. See

(a) June 12, L968 letter ~m John R. Kelly to A.P.

Pere= )

(b) June 17, 1968 letter ~m A.P. Pere" to John R

Relly re C~stal River Nuclear Facility. Zn denying access,

Florida Power sta ed that "you con=em for an additional power

sou"ce from us has no foundation since we are not electrically'interconnected.'ainesville ranetheless intervened in the

Licensing proceeding in order to seek the Atomic Energy Act and

ant'~st laws. Gainesv~e's efforts were denied, however,

under a holding that '(T)hc ~staL River facility is plainlylicenseable under Section 104(b) as we have construed'hat

section; and the board' determination that it lacked )urisdic-tion to consider anti~st ma ters in this proceeding was mani-

festLy correct. See Narch 20, L977 AEC Decision" in FloridaPowe" Corp., Docket No. 50-302, slip opinion at 4-5. On June 2,

1971 GainesvilLe again requested antitmst review in that docket.

FPQ. filed license applications under 5104 of the Atomic

Energy Act, 42 U.S.C. 52134, thereby avoiding requests for out-

side participation and forestaLLing otherwise required anti~streview.

FPal. refused or unlaw aLLy sought to resis Cities'equestsfor access to the benefits of coordination enjoyed by FPQ.. As

shown in response to interrogatories 9, 11, and 14, it refused

provide wholesale power, interconnec ion and transmission ser-

vice, thus, de facto, denying Cities'ccess to the benefits of

coord'nation en)oyed by ."-PaL. Zn addition, FPaI, (both unila-terally and pursuant e the Gainesville conspiracy) refused

express requests for access to pooling and refused to deal with

municipal prooonents of pooling and their agents. Evidence ofthis includes:

September 8, 1966 memorandum to File rom S.A.

3randuore (Florida Power Corporation) re Znterconnection-

D72

L5-14

allahassee (PC 1059). As recorded 'n the memorandum, i" was

stated that the C'y was interested in being amember of the Florida pooL. Nessrs. Dunn and Pere"assu=ed Nz. Bathen that there vas no pooL, that theFlorida Operating Group car«ied ta obLigations but waspredicated on good faith and good wilL and a spirit ofcooperation, and that the Company could oct imi eanyone into the Croup without a viLlingness on the parof other mMezs to cooperate.

2 Doouments showing FPaI and Flozida Power Corporation's

refusal of Cainesv&e's express and repeated requests hz access

to the 'Florida Pool.'ee(a) June 14, 1965 letter ~m James G. Richardson,

Commissioner (Gainesville) to Robert Fite (PL 931) g

(b) ~ Statement of James C. Richardson City Commissioner,

City of Qainemille, FLorida Before the Subccmmittee on

Communications and Power of the Interstate and Foreign Commerce

Commit ee of the House of Representatives of the United States on

ER 3608 and HR 5955;

(c) November 10, 1965 Cainesville "Application fo-Interconnection and Complaint Against Unlawful Actions, in:.FPC

Docket No. E-7257 and

(d) July 19, 1966 letter from Robert, H. Fite m John

'elly (PL 1132) ("I am tally aware of your interest in making an

in artie vith the interconnected system in Florida and sinceI'nderstandthat negotiations are continuing between Gainesville

and Florida Paver Corporation, I sincerely hope that they vill be

success ul and that you vill arrive at a mutually satisfactory

contract,.'e)Apzil 30, 1965 J.S. Cracy memorandum re

Negotiat'ons C'ty of Qainesville (PC 1189) (Richardson then

'proposed that we make a nev approach to the problem of

'nterchange and conditioned «this approach on a charter change.

He would like to see Florida Power consider Qainesville as a par"

of the overall pover pool and stated that they would plan on

staying in the generating field but would delay the cons ructionof units until they cculd bu'ld large" ones «then would otherwise

be the case. In effec, he prop ed that Gainesville become a

part of the overaLL power pool on the same basis as Tampa

Electric Company, Orlando, etc. Be Lai.nched into a discuss'on

D73

15 15

or a proposal or mine-mouth plants, Wl transmission,

Appalachia et". which would resuLt in the possibiLL~ of four

mill per Kwh power for Cainesvtlle. X advised him that we would

like to buy some at this f'gure."3. July 11, 1967 W.J. Clapp letter to Pite et al., sunra,

warning of Bathen and Spiegel's representation of municipaL

interests.4 ~ Documents showing Flor'da Power Corporation's 1966-67

refusal e deaL with LW. Beck, and insistence that Tallahassee

cancel potent'al Beck study on pooling. See zesponse v intezzo

gatory LL, Tallahassee.

S. 'ocuments evidencing FPCL's contemporaneous refusaL to

deal with George Spiegel.. See

(a) July 26, 1967 Homestead City Commission minutes and

(b) March 18, 1966 J.C. Soencez, Jr. memorandum to ilere meeting with Vero Beach (111160). ("Answering a specific

guestion, Mr ~ Woodson said Mr. Spiegel is not involved with „the

City of Vero Beach...") See aLso April 2, 1976 H.C. Luff "Fite

Memorandum - NRC - Souzh Dade Anti ~st Hear'ng re H.C. Ln f calls5to Tracy Danese, March 30, 1976. (Danese "said FPL people

detested Spiegel and his employment by OUC would'ake com-

munication dif icuLt, if not impossible, between FPaD and OUC.

Danese strongly urged FPL to employ other counsel.") See also

FPaG's 1976«77 opposition to the potential use by Daytona Beach

of R.W. Beck as a consultant to the C'ty. See e.c., Daytona

public relations sheet titled "Opposition to Beck. Tf asked why

FPL opposes Beck ..." (28L983)

6. July 15, L958 Florida Power Corpozation letter to R.H.

Fite, W.C. iWXnnes, Lansing Smith, Jr. (PC 438) expressing con-

cern over statewide cooperative pool.

7. February 2, 1973 Gainesville case deposition of Maurice

Hebb, Jr. expLain'ng that

(a) the FLor'da Operating Committee sought to "design

the state system as i it were one elec"-ic system" (i.e.,without regard foz terz'tozial boundaries or ownership) ( =. 3LO-

311) ~

(b) except that the FLor'da Operating Committee did tat

15-16

'design a system . ~ ~ a pc mote the inta ests of some party that

was not in the committee, such as Gainesvtlle" (Tz. 313) and

(c) Hebb's opinion 'is that that was necesary that aLL

o5 the utilities in the state should be integrated into a s'ngLe

planning program. (Tz. 314)

8. Nay 7, 1963 memorandum from Nr. H.C. Koan to Vt.J. Clapp

(PC 2063) re WKean's conversation with TECO official on the

importance of te=icoriaL agzeementsa

'5. Z called to his attention the requests forservice received by Florida Power Corporation ove» theyears ~om Dade City, Live Oak, Bountstown, Stazke, andVero Beach, all ot which had been refused service

by'loridaPower Corporation. Zn the cases of Blountstown,Starke, and Vero Beach, they were not at the theereceiving wholesale sezvice from any investor-ownedutility.

'6. X also informed him Mt i the two companiescauld not comply wi;th the tazzimriaL agreement, I cauldnot see how he cculd have confidence in interchange andpooling agreements.')

9. Feb. L2, 1969 memorandum from M.F. Hebb, Jz. to A P.

Pere", re Lack o Coordination between Qt2'.ities in Florida

(provided from Fpat. files as dccument amber 213167-2,13169)

in part,'If I were an agent of the Federal powe" Commission, onthe 3cb of cz'ticizing the Florida opezat'on, X woulddrive in on the following points:

1. Lack of documentations of coordination —Howdo you handle a maverick?

2. Lack of capacity pooling.

3. Exclusion of smaller utilities from FOC...'0.

Dec. 1966 memorandum to file from BHF (263L95)PCCo V

lpga

pa) Ha~ Poth statement that Florida Power

Corporation should 'le its interconnection and interchangePndagreements (b) E-H. Eunn's (Florida Power Corp. Vice President

and General Counsel) 'position that such filing wouLd give the

FPC ju isdiction over all axis ing interconnections, would permit

them zo force interconnections and give them jurisdiction over

interstate power pools . ~ . I told Dunn that I had ns urtherargumen to o er, that if he were willing to f'ght mo e power

zo him —and tha he migh verv well be cor ec" on his positionon Mat mat er. his means that Poth could very weLL be wrong—only time will tell. Tampa Elec ic has taken the same posi ion

'5 17

w'hDunn.'P&L

further refused or res'sted the ef or.s of othe" members

of the Florida Cperating Committee to )mpzove coordination,

including affor s to expand coordination to include Cities.Hvidence of this includesc

Documents showing FP&L sought to frustrate coordinationtha" nigh be cont ary to i s claim that it was not sub)ec to

Federal Pave" Commission )uzieiiction. See

(a) Augus" 9, 1965 memorandum from M E. Hebb, Jz. to

A.P. Pere= (PC 757);

(b) February 19, 1965 memorandum f=om A.P. Pere" to

W»J» Clapp (Clapp Calnesv lie depositions Qchlbit 34)

(c) June 24, 1968 memorandum from M.F. Hebb, Jz ~

file ze Jacksonville;

(d) June 12, 1968 M-F. Hebb Jr. memorandum to A.P,

Pere- re City of Jacksonville ("Sooner oz later an effort must be

made wi«thin the State ~ uly pool capacity and take advantage

of the savings available through an integrated plan. Possiblythe municipals af ozd the best ent"ee toward this step. We

should continue ouz discussion and promotions with the two—'nvestor-owned companies, but un~» the ju isdict'onaL problems

are solved I doubt if any real progress will be made in this

direction.'e)September 10, 1969 memorandum from M.F. Hebb Jr.

A. P. Pezet (PC 1001)

(f) Nov. 3, L965 letter from Ben H. Fuqua to S.A.

Brandimore (263193) (t=ansmitting proposed changes in, Florida

Powe. Corp. draft letter to Federal Power Commission

(263188-'263190) deleting anguage implying ac ive exchanges be)-+ween Fp&r. and Florida Power Corp.)

(g) April 5, 1966 "CSC" memorandum (263194) (pzovid'ng

for scheduled power th ough new tie to Florida Power Corporation,

stating "(W)e wilL not sign any contract or make any special

arrangement. "

(h) Dec. 1966 "BHF" memorandum, suoza (263195)

2. Documents showing ef orts of othe" members of FloridaCperat'ng Comm'ttee to further coord'nation and pooling, bu" FP&(»

L5 18

resistance.

above,

See e.c., in addit'on to documents c'ted at '1"

(a) Depos't'on of Maurice P. Hebb, Jr. in Gainesville

case, su@ra.

(b) Documents related to Plorida Power Corporat'on's

Nov. 1968 suggestion that smaLLer systems beccme part of the

Plorida Operating Committee. Documents includes

(i) Nov. 7, L968 letter from W.B. SimondsI

Florida Power Corp. to Members of the PLorida Operating Committee

(2L3154). Ne let er t ansmits FPC Gainesville interconnection

final decision and ou"'ine "suggestion for restruc"using Plor'da

Operating Committee. ( .. ~ newly interconnected systems must

have a voice in sett'ng these (peninsular bulk elect=ic) recom-

mendations and standards "- I is recommended that this subject

be. on the agenda of the next meeting of the PLorida Ope at'ng

Committee, and that all members be prepared to discuss and

resolve it."('i) Jan. 16, 1969 'BHF'emorandum to Fire and

Fullerton re: AcLnissi'on to membership in Florida Operating

Corrnittee of REA/Coops and Municipal Systems and cover mtes

(213152-2L3158 ) )

(iii) Peb. 12, 1969 memorandum from MeFe Hehb, Jr.to L.P. Pere" re Lack of Coordination Between Utilities inFlorida (213167)

'Through the fine effor s of the Florida Operat'ngCommittee (FOC) over the years, the ooerations of theive g rousvoiliaies ia resirsular "1oriaa a"e ve y veil

coordinated. Communications ar e excellent; operat'gconcepts are agreed upon and fiMy ca ied out..Weappear to survive massive failures with minimum loss ofload. Whenever we are called upon to make statementsconcerning coordination in Flor'da or industry orCongressional repor s, we orcut «kis coordina ion ofoperations as highly as we can.

There is, however, a much more basic con=opt inutiLity coordination in which the State, in my opinion,has failed and, as a consequence, is highly vulnerableto criticism from the indus~ and from the regulatoryagencies. This has to do with the coord'nation of themtaL systems during the planning and development sta-ges. 2 refer to capaci y pooling, mme jointt ansmission programs, common aoproach to system deve-lopment with eference to outage cr'te ia, common dedi-cat'on to optimiration of plan" sites, coordination ofefforts when it becomes necessary to speak with a singlevo ce, and management dedication to plans of commoninta as . FLo ida 's the only major load area in Nenation which does not have its sys ems pooled through

D77

LS-L9

formal ag eements. There is a way we can demonstrateto regulatory groups ~t the managements are dedicatedto common goals conce ning planning and deveLopmen . Zsuspect ou" own State Commission is exposed to differentviews om the various utiLities, making it v'rtuaLlyimpossible to expec this Commission m aid us in ourproblems.

"During this session of the Congress, Z feel «theindust~ is going to be faced with one of the mostonerous Bills ever promoted —the Power Plant SitingBill. The industry will probably rise to the occasionand present a massive opposing program. The Large coor-dinated groups —ECAR, Kep, CARTA, et"., will likelyhave a spokesman for testimony for the respective group.Zn Florida, unless we f'nd a way to do «His, Z believeour opposing tactics will be something less than spec-tacuLar. Can you visuali"e a spokesman or each Companystanding up under cross-examination concerning the coor-dination of generation programs to optimi e the use ofavailabLe sites, and thus minimi e the pollutionprobIem? As you kraw, we have had great difficulty ineven coordinating rather meaningless Long-range plansfor the State for indusm~ reports There simply is msreal effort being made in this State to jointly developthe transmission and generating systems of Florida tominMze costs, optimi e sites and rightsmf~ay, and toproduce the most reliable system for De lowest atalinvestment. Although there have been ")oint studies"made through the EQC, there is a complete lack of man+

dgement dedication to carry out any of the recommen- ~

dations arising out of these s udies.'Z think we should take eve~ opportunity to point

out to the other utilities —particularly Flor'da Powe"6 Light Company and Tampa Electric Company —thatFlorida Powe" Corporation has done its best to protectthe interests of the utilities in the State withoutbenefit of complete cooperat'on from these u ilities.Florida Power's presence in HERC, is almost a shamg wecannot always protect the interests of the other systemsin this activig. Zt should be st"essed to these utili-ties we are having severe problems in reporting coor-dinated data to the Southeast Regional AdvisoryCommittee, the Federal Power Commission, EEZ, HERC,etc., because of the lack of a coordinated pool. TheFOC is not ef ective for this sor of thing because:

l. Zts duties do rat embrace this function.

2 ~

3 ~

4o

They convene only about six t'mes a yea" witha heavy agenda of day-to-day operatingproblems.

Their operating functions constitute a full-time activity for mid-management operatingpersonneL ~

Zt is nst a managemen" .ovum for matters suchas inter-State con=epts of coordination.

'Z Z were an agent of the Federal PowerCommission, with the )ob of critici"ing the Floridaoperation, Z would drive in on the following points:

Lack of documentation of coo"-dination —Howdo you handle a maverick?

2 ~

3o

Lack of capacity pooling.Exclusion of smaLLer ut'li"'es from the FOC.

e m-20

4 ~ Lack of a single voice when the Federal PowerCommission seeks information on Stateproblems. Example: .he recent PortEverglades ir"ident.

Me ",island'lannirg concept pursued fn theState which shows na p ans or strong tieswith the ZSQ.

(c)

6. Lack at caazdinated approach ta regulatorybodies on matters of common interest, such aspollution, site aptfmi-ation, reliability,treatment of munfcfpals and cooperatives andlang range plans-'

May 26, 1969 memorandum ~m H.W. Page ta LattfnJohnson (203881) attachfng dza May 14, 1969 'Statement

'oncerningRegional Organization (203862) (Page naces that the

draft, prepared by ELarida Power Corporation 'is generally sfmf«

laz to other aapraved statements and wf.th a little polishing

should pass muster. Haweve, something new has been added name-

/ the idea expt'essed in the )a st sentence . " Re d aft ' last .

sentence states "(Z)f any other ut'lfty, whose facilities are

interconnected wf.th th's group, (ECC) has an electrical system~

'hfchwould have an impact upon the supply ot bulk power, then

th's utility would be eraouzaged to particf.pate in the Florida

Operating Cammf ttee.')(d) July LS, L969 let er fram Lou's H. Wfnnard, Jz.

Managing Df,rector (JEA) to Mr. Ha~ Luft, Assistant Df.zectaz

(Orlando Utilities Commission) ze coordination of future genera«f()e~~ ( As I indicated I have sent out, some feelers zegapdfng the

possibility of establishing a Committee ta investigate power

pooling in Florida. Early information indicates tha" f.t would

rat be appropriate to ~ to esMLfsh such a Committee at thispaint in time. I am hopeful, however, that I will be able to get

a start on thf.s worthwhile objective later on during the year."

(e) September 13, 1973 letter fzom C.H. Stanton

(Orlando Utilities Commission) to Marshall McDonald ("We belfeve

that formation af a po~er pool in Elazida wauld gzeacly benefi

he cause o zelfabflf y and economy in the state. ihe benefitsaf pool ape at'ons aze well known to you and your assocfates and

aze ev'der"ed by success ul pool ope at'ons in almost every other

area af he count~ ... Success ulazmatfon of a pawez pool fn

Elozida deoends al=as en 'rely an the desire of the major

investor-awned ccmpanies to adopt the paoLfng concept. One of

D79

15-21

the ma3az companies has sated a vill'.".grass ta move in kisd'rection.

"We can only hope the others will follov. Smaller ccmpanies

vill oaztic'pate ates the larger ccmpanies sct theexample.'alLaving

the formation of the F'orida Electric Coordinating

Group in 1972-73, FPaL continued ta .es'st, Wc ef orts of other

utih.ities, including other lazge systems as well as Ci ies9

move tavazds pooling. As evidence of this see

1. April L3, 1976 affidavit of Harry C. Luff Jz. inFlar'da Paver a Lich«Comaanv, NRC Docket No. P&36A.

2. April 26, 1976 memorandum fram,E.L. Bivans Jr..

Tracy Danese re "South Dade Nuclear Pover Plant, NRC Docket No.

P-636A and 50-389A af idavit af Harry C. Luff, Jr.3. Testimony af E.L. Bivans in Florida power S Licht

cataata, "888.8aakat Naa. 8898 39 at ak. (9taaa I 3 8 8'43.-844 ~

4. Positions taken by the pardes in pleadings and hearing

racm StatementS Of COunSel 'n Tamaa EleCtriC Camaany, et, ala 8

FERC Docket Nos E77-549 et al.5. FPSL's opposi. ion ta the FCC considcrat on of the

Florida Peninsular Expansion Planning Study. The study was ta

examine the'assible benefits of point generation planning as

opposed ta independent generation pLannitg. FPsL refused ta

'adopt the same steps and pe spcctive ta the study that everyone-

else did. Everyone else vanted ta approach generation planning'n. ke context of the state as a vhole; plan genera«d.on foz the

state as a whole vithout regard ta individual service areas. As

a result, generation would be placed where needed. FPaL vented

examine each indivdidual system separately atad then be allowed

ta place inczements according ta vhat each system can afford,piecing Nese inc ements together zathez than vieving matters

from a cate prospect've. Messrs. Dykes, Lavrence, and L'Engle

are krawlegable comezning «Nis matter.

6. On FPsL's resistance ta pooling, sce generally:Interoffice Car espandence (FPaL) ta Marshall ÃcDanald from S.Buchanan ze Progress Report on Power Pooling Task Faz"e of FCGOperas'g Commi«tee, December ).9, 1974 (241648)

Znteraff'ce Ca espondence (FpsL) ta Mazshahl McDanald fram X.S.Buchanan ze Progress Report on Power Pooling ask force afFlor'da Opezat'ng Committee Working Croup, Decembe 6, 1974(2 41649)

D80

15-22

Xnteza fice Corzesponderce (PPaL) ta W.D. Larg, C.N. Whieizefran K.S. Buchanan ze POC Power Pooling Task Force Repor- on A'oz'da ='ec=-ic Power Pool, December 4, 1974 (241669}

Interoffice Carzespondence (FPSL) ta E.L. Bivans, W.Z. Cae framK.S. Buchanan re FOC Power Pooling Task Parce Report on A FloridaElectric Powe Pool, November 26, 1974 (24175)

Xnteraff'ce Correspondence (FP6L) ta E.L. Bivans, T acy Danese,C.N. Whimize f an W.E. Coe re New Xnterchange Service Cont"acts=-PL - TECO and FPL - FPC, February 3, 1974 (271950)

'Letter ta J.D. Kicks (Chafing Technical Advisory Groups FCQ)fran C.K. Whitnore (Chai~n, POC), March 7, 1975 (254918)

Interoffice correspondence (FpsL) to E.L. Bivans fran J.E. seelkeze State LOLP Task Parce Meet'ng af April 9, 1975, April 1.1; 1975(254107)

Letter m R.T. Bowles (Florida Power Corporation) fran J.S. BeLl(FPaL) May 20, 1975 (243086)

Letter ta J.S. Bell (FP6L) fran Don Moore (Director SystemPlanning, Orlando Utilities Commission) May 15, 1975 (243072)

Let er ta J.S. Bell (FPQ) fram L.T. Shivers (Gulf Power Company)May 14, 1975 (243073)

Letter ta J.S. Bell (FPRL) fram K.L. Southwick (SupervisorDis""ibution Planning (Florida Pawer Corporation) May 19, 1975(243074)

Letter za J. S. Bell (FpaL) zam R.W. Cochzan (ShptezintendentPlann'ng and Engineering, C'ty of Lakeland) May 16, 1975 (243078)

Letter ta J.S. Bell (PM) fram Qazy T. Lawrence (Engineer System- Planning, City of Tallahassee) May 15, 1975 (243080)

Let er ta J.S. Bell (FPaL) zam R.L. Kestar (Director of SystemsPlanning, Al*chua County Regional Elect=ic WAter a Seve.Qtilit'es Board) May 16, 1975 (243082)

Letter ta J.S. Bell (FPaL) fzon R.D. Dyer (Jacksonv'~le Elect icAu. hority) May 15, 1975 (243083)

Letter ta K.L. Culbreath (Chairman, Florida Electric power.Coordinating Group} fran Commissioners William T. Mayor, WilliamK. Bevis, Paula F. Hawkins (Florida Public Service Commission)May 1, 1975 (24308)

'nrerofficeCorrespondence (FPrL) to E.L. Bivans fram J.L. Seelkeze State of LOLP Task Force Meeting a April 9, '975, Apr'1 11,1975 (2 43107)

Meet'rg, Flarida Electric Power Coordinating Group'- TechnicaLAdvisory Group (TAG) June 12, 1975 (244209)

Organi-ational Chart, "Organizational Options for FloridaElectric Powe Pool, P esent FCQ Organiational Structure" iQuestions relating ta Florida Electric Power Pool Organi=ation;Dra " Outline, Florida Elect".ic Power Paol; August 20, 1975

Memorandum ta E.L. Bivans from J. San Bell, August 25, 1975(attaching Ozgani ational Options for Florida Electric PowerFoal)

Oc . 7, 1975 K.C- Luff ta Bivans et al. (244065) t=ansnit ingpooling draftNov. 12, 1975 letter fran Luf ta J.D. Kicks (245675)

May 23, 1976 'ELB" renorandun ze: "sa-called benefits" (272530)

D81

1 5»23

elarch $5, 1976 le=er ~m Luf m J.D. Bicks (252807)

or'da ~'ec=ic Power Pool Agraement8 March 1976 AQ - D»a tkl (272477)

Florida U,ec"=ic Po~er Pool Agreement, Apr'1 1976 - DC Dra t )2(272536)

Oc . 1, 1976 letter E m Luff to J.D. Bicks (252S22)

Dec. 9, 1976 letter 'mm Marshall McDonald to Joseph D. Jenk'ns,F?SC

Zn addition to generally resisting the 'urtherance of pooling

effor s involving Cities and others, FPQ. has in the "FCQyears'efused~ engage with Cities in act'vities that are important

components. of pooling. For example:

1. FPaL has resisted the development of cent=all.ted econo-a

mic dispat"h, even where benefits to FPaL were demonstrable. See

(a) "A Florida J~.ec"»ic Power Pool,'eport to the

Florida Operating Committee Working Group> prepared by the Power

Pooling Task Force, December 11, 1974.

(b) Testimony of B. Bivans, Florida power 4 Li ht

co~anar, EERc !37okee Noa. 8878-18 ea al. (aka» 3), 7 . 843-844.

(FPaL has mt studied benefits of pooling/cent".alised dispat"hg4

Fp6L would not necessarily support the con=epts8 even if savings

were shown.)

(c) Sav'ngs realised by elect"ic systems in Florida

under the cu ent Power Broker'rogram.2. FPaL has sought to deny access M FPfL's transmission

system. See response to interrogatory 14.

3. FPaL has refused, and continues to refuse, to volunaa

tartly enter into )oint owne ship of generation and transm'ssion

projects wf.W C'ties, see e.c., Feb. 19, 19'75 lette f=om Tracy

Danese to Halter Baldwin ("You have requested the names of

systems which were 'invited'ut elected rat to participate (inSt. Lucie ZZ) Your letter implies that FPaL affirmativelyinvited o solicited part'cipation. Mat is not the case ... The

negotiations now in progress with the systems named above are the

)mplementation by FPL o the condi io'ns mandated by the govern-

mental agencies refer ed to." Zn addition to this and evidence e

cited in recense to inte ogatories 14 and 178 Cities ateFPCL's refusal to sha e ownership with Cities in the ')oint"nuclea ven ure prooosed by FPaL in 1976. See

(a) April 18, 1976 FPaL memorandum by "NCC" re

D82-

15-24

'coopeative +clear opwer plant major f'nancial considerat'ons

or FPL

(b) Reques s in conjuration with Docket Nos. &36-Aand 50-389-A et al., includ'ng plead'ng affidavits, cor"espon-

dence and meetings. E.c., Api'' 14, L976 letter f"om George

Spiegel to'cy Danese.

(c) Correspondence and negotiations reLating to

called Cent=al Flor'da project as evidenced by documents

including the following.Letter to Tracy Danese (&airman, Florida Joint Nuclear PzojecSteer'ing Committee - FP&L) zom Preston H. Haskall (Cha~n,JacksonviLle Electric Authority) March 15, 1977 (244359)

Minutes of 2/16/77 Florida Joint Nuclear Facilities SteeringCommittee meet'ng to Florida Joint Nuclear FacilitiesParticipants from R.C. Keuther (Seczetary, Steering Committee)March 8 1977 (244352)

Letter to Harzy M. Wright (Executive Vice Ptesident, SeminoleElect:ic Coopezat've, Inc.) ~ J. Sam BeLl, JZ. (FPaL) February4 g 1977 (244351)

Letter to Sam BeLL, Jz. (FPaL) from Hairy W. Wright (ExecutiveVice President, Seminole Elec"-ic Cooperative, Inc.) February 1,1977 (244350)

Letter to Members. of Florida Ut'li"'es Steering Committee fram J.Sam Bell, Jr. (FPfL) January 26i 1977

Letter- e R.J. Gardner (Vice P:esident, FP&L) from E.C. Shzeve,Jr. (Director of Elec ic Utiliy, City of Ccala) December 30,1976 (244349)

Letter to Tracy Danese (Vice President Public Affairs, FP&L) fromH.C. Lu f (Assistant General Manager, Orlando UtilitiesCommission) December 2&, 1976

Le ter to R.J. Qardnez (FP&L) from S.L. L'vengood (AssistantGeneral Manager foz Engineering 6 Planning, Gainesville AlachuaCounty Regional Electric Water 6 Sewer Utilities Boazd) December22 g 1976

Letter to Tracy Danese (Vice President Public Affairs, FP&L) fromHa~ W. Wright (Executive Vice P.esident, Seminole Flee ricCooperative, Xrw. ) December 20, 1976

Letter to Robert J. Gardner (FPSL) from Robert A. Jablon (Spiegel4 McDiarmid) re FP&L's Proposed Joint Venture Project, Decembe"16'976Letter zo Members of Florida Utilities Steering Committee fromTracy Danese (FPaL) December 14, 1976

Letter to R.J. Gardner (Vice President, FP&L} from J. ThomasGurney, Jz. (Qu ney, Gurney ! Handley, P.A.) ze Joint site study,December 13, 1976

Letter to R.J. Gazdner (Vice presidentt FpaL) t'om Ha~ M.Wright (Executive Vice President, Seminole Elect ic Cooperat've,Znc.), December 6, 1976

Letter to R.J. Gardner (Vice President, FPaL) from H.C. Lu f(Assistant GeneraL Manage, Orlando U""li ies Commission)Novembe 30, 1976

D83

15-25

Let er zo R.J. Gardner ( emporary Chairman, Florida UtilitiesSteer'ng Commi=se r FpcL) o'm C C Blaisdell, Jr. (UtilitiesDirector, Lake Nor& Util'ties Authot'ty) November 23, 1976(2 44320)

Lat«ter to R.J. Gardner (FP&L) from City of Kissimmee, Of ice ofUtilit'es Director, November 18, 1976 (244325)

Letter to R.J. Gazdner (FPaL) from James N. Etheredge '(Mayor,City of Bushnell) re FPaL's Proposed Joint Venture Pzo)ectgNovember 18, 1976 (244322)

Let et to R.J. Gardner (vice president, FpaL) zom Ha~ W.Wright (Executive Vice President, Semimle Elec ic Cooperative,'nc.) No~ember 16< 1976

Letter to Harry Luff (Orlando Utilities Commission) from R.J.Gardner (Vice Pzesidenz,, FPaL) November 16, 1976

Letter to Bob Jablon (Spiegel 4 McDiarmid) from Ha~ Lu "(Orlando Utilities Commission) ze Suggested reply on Poolingparagraph of Gardner's Novembe. 16, 1976 letterLet.er zo Ha~ Luff (Orlando Utilities Commission) from R.W.Cochzan (Supt. Planning 4 Engineering, City of Lakeland) November12, 1976 (attaching proposal)

Letter to Members of Flor'da Utilities Steering Committee fromR.J. Gardner (FPaL) re ~extension of Twe for Letters of Xntent,Novembe 12< 1976

Let er to R J. Gardnez (Vice President,, FP6L) fzqm E.V. Rutledge(Special Sales Repzesentative, West'inghouse Elect"ic Corporation)November 10, 1976

Letter to Robert J. Gazdnez (FOAL) zom Robert A. Jablon (Spiegel4 McDiazmid) November 12, 1976, res FPaL's Proposed Joint Venture

)ectFPSL Of er Nuclea Plant Services~ Nov&ez 10, 1975, November12, 1975-Revised (203715)

Letter to R.J. Gardner (Vice President, FPaL) from E.V. Rxtlcdge(Special Sales Representative, Westinghouse Elect=ic Corporation)Novembe 10, 1976 (270508)

Letter to R.J. Gardner (Vice President, FPaL) rom H.C. Luf(Asst. Genezal Manager, Orlando Utilities Commission) November 5,1976 (272251)

Letter to R.J. Gardner (Temporary Chairman, FPaL) «rom; red Kray(General Manager, Florida Keys Electric) November 3, 1976(244312)

Letter to R.J. Ga dner (Chai~n, FPaL} from William R. Snow(City Manager, City of Green Cove Springs) November 1, 1976(244313)

Minutes of Meeting of Florida Utilities Joint Venture ?ro)ect,Novemhe» 1, 1976 re Joint Venture Pro)ect

Letter to Tracy Danese, Esq. (Vice President Public Af airs/FpaL) from Robert A Jablon (spiegel 4 McDiazmid), cctober 21,1976

Letter to Tracy Danese (FpaL) from John v. Little (City Manager,Vero Beach) re Joint Venture Pm)ect, Plant Siting, JointParticipation Proposal, Generating Plant Site Study, October 21,1976 (244732 )

Letter to Ha~ wright, (Executive Vice president, SeminoleElectric Coop., Znc.) from R.J. Gazdner (Vice President, FPaL)October ).9, 1976 (244738)

— O84—

15-2 6

Letter to Tzacv Danese (Vice President Public A"fairs, .?aL) fromBa~ Wright ("-xecutive Vice Pres'dent, .=PaL) October 15, 1976(2 44739 )

Letter to Florida Uti'ties Steering Commi tee (R.J. Gardner) fromJohn T. Doughtzy (Manager, Utility Board City of Key Mesa)October 14, 1976 (203710)

Letter to Marshall McDonald fram Tracy Danese rc LakelandProposal to be Made at, Next Executive Committee Meeting of theFCQ, October 11, 1976 (261264)

'Znfozmarion 'for those Systems wh'ch have previously ExpzessedZnterest in the Joint

eject'FloridaUtilities Plant Si"'ng Project'.J.G., Cctober 1, 1976

Florida Joint Nuclear Facilities Steering Committee Minutes(Dra ) p Sept, 30, 1976

Memorandum zo ile from O.F. pearson re Cent"al Florida pzojectMeet'ng 7, T CO) Sept. 30) 1976 (120894)

Let er to Ba~ Wright (Exec. Vice President, Seminole ElectricCoop. Znc.) from R.J. Qazdner (Vice President, FPaL) Sept. 29,1976 (252999)

znteroffice Memorandum (orlando Utilities commission) to MarryLuff, Tom Gurney, Jr. from Don.Mooze (System Planning) ze FloridaElec"-ic Ut'lities Joint Participation Agreement with FPL-Siting Study 9 15 76@ Sept 24'976Letter to Members o Florida Utilities Steer'ng Committee fromR J. Gardner (FPQ.) ze Proposal or Site Study'ept 15, 1976'.

Florida Joint Nuclear Facilities Steering Committee MeetingM'nutes, Sept. 10, 1976

Letter to R.C. Kuethez (Assoc. Managing Director, JacksonvilleElectric Author'"y) from Donald Benjamin (Staff Engineer, FloridaCoordinating Group) Sept. 13, 1976

'Proposed Changes to Florida Joint Nuclear Steering Committee"(Exhibit M)

Letter to Ba~ Hrigh (Exec. Vice President, Seminole Elec.Coop, Znc.) zom R.J. Gazdnez ("-PaL) Sept. 29, ).976 (2,44743)

Letter to Robert Gazdner (Vice Pzesident, FPaL) from Ha~ Nrigh«(Exec. Vice President, Seminole Flee. Coop. Znc. ) Sept. 17, 1976(244725)

Znteroffice Cor"esponder e (FPCL) «to File from R.J. Gazdner reFlorida Utilities Steering Committee, Sept. 10, 1976'(203453)

Znterof ice Correspondence (FPaL) to File from R.J. Gardner zeFlorida Utilities Steering Committee, Sept. 9, 1976 (203454)

Letter to E.L. Bivans, Ted Blount, Tracy Danese, Ozin Pearsonfrom R.J. Qardne, Sept. 8, 1976 (203456)

"Whether to proceed with the study on a Land-based vs. barge-mounted unit (vote tally)" (203457)

Znteroffice Correspondence (FPaL) to R.J. Gazdnez from Sam Bellze Florida Utilit'es Steering Committee Proposal for Site StudySeat. 7, 1976 (272325)

Letter to Stee ing Committee Members from R.C. Keuther(Secretary, Jacksonville Electric Author™y) re: Florida JointNuclear project Peas'bili y Study Agreement, Sept. 3, 1976.

— o85-

15 27

2ntarof ice Cor espandep e (FpaL) ta Ao Li He/ q W H Rogers ~ JrJ-N. Salapatas f=m Corparat Can —acts (J.S. Cdon) re EconomicStudy far PLorida Ut'lit'es Steering Conn'ttee, BidderEvaluation, Sept. 3, L976 (203458)

Interoffice Correspondence (FPQ ) to R.J. Gardner fram CorporateContracts (J.S. Cdan) re Florida Utilities Steering CommitteeFconanic Study of Barge-Mounted vs. Land-Based Nuclear PowerPlants, Sept. L, L976

Letter to Bob Gardner (Vice President, FPaL) from Ha~ Luff(Ast. General Manager, Qrlando Utilities Camnission) Aug. 30<1976

Interaf ice car espa ndence (FP &L) to J S. Bell g W. S Tucker( R E.Talion, 8 W.C. Summers on R. J. Gardner re Florida UtilitiesSteering Comnittee Praposal far Site Study; August 25, 1976(203463)

Letter ta Ha~ A. Poth, Jr., Esq. f=an Robert A. Jablon, Esp.(Spiegel a McDf.amid), August 16, 1976 (m mnber)

Letter ta Robert A Jablon (Spiegel 6 McDiaznid) from R. J.Gardner (FPRL Vice President), July 28, 1976 (m weber)

Draft of "Feasibility Study Agreenent, Florida Joint Nuc)earProject," July 21, 1976 "(no amber)

Letter ta J.N. wh'te (stone 6 webster Engineering corp.) fromJ.S. Cdom (FpaL Manager of Corporate Cont acts), "Znvf.tation taBid," July 19, 1976 ( m mmher)

Purchasing Agent fora from R. J. Gardner (FPaL Vice President,.Strategic Planning Depa mene), July L6> 1976 (272351)

'Agreement for Engineering Services Between Florida Power 8 LightConpany and Cont"actar (Draft 7/16/76)'no number)

"Cent=al Florida Projec, Meeting 4, Ctrlando Utilities, C-LandoFL - 7/14/76" (252950)

'Florida Joint Nuclear Facilities Steering Committee MeetingMinutes,'uly 14, 1976 (m mnber)

"Agenda» Florida Utilities Steering Coraittee," July 14, 1976( na rxuaber)

Meno to Steering Committee Members, Florida Joint NuclearProject, from R.C. Kuether, Secretary, Jacksonville ElectricAuthority res 6/22/76 meeting minutes, July 22, 1976 (m nrmber)

"Procedure for Consultant Selection for A Study of Economics oFloating 8 Land-Based Nuclear Plants,'/23/76 (m reer)Letter to Robert A. Jablon (Spiegel 4 McDiarmid) rom Harry W.Wright (Senimle Elec"-ic Cooperative, Znc., Executive Vice-?resident) re Cent al Florida Joint Nuclear Venture, July 13,1976 (m number)

Letter to Tracy Danese (rPaL Vice President) from Rcbert A.Jablon (Spiegel 6 McDia id) re "proposed joint nuclear venturein cent al Florida," July 8, 1976 (na amber)

Letter to George C. Moare (Plorida Powe Carp.) 4 Ronald Rue her(Jacksonville Elec"=ic Authori y) f am R. J. Qardner (FPaL VicePresident) re consultants; June 23, 1976 (203480)

Memo to N: B. Soake fram George C. Moore re selec ion of con-sulting engineers far easihility study, June 22, 1976 (naesther)

Letter to J.A. Bauer (Rissl~ee} ram R.J. Qardner (PPaL}, June23, 1976 (252944)

15 28

Letter to R.J. Gardner from J.A. Bauer (ZissMee) re interest innuclear projec, June 22, 1976 (252945)

Let«er to R.J. Gardner (FP6L) from H.C. Luff (Orlando Ut''itiesCommission) re Florida Utilities Steering Committee, June 10@1976 (203484)

Neeting Summary'y H.C. Luff (Orlando) re FpaL Joint NuclearProject meeting of June 3, 1976. June 7, 1976 (no aunher)

4. FPSL refused Cities'f er of participation in its South

Dade nuclear units, ev'en while claiming that the units were

needed but could not be fu thered because of financial d'~-

ficulties. See 'Znitial Brief of Florida Cities," Florida Power

a Licht Comoanv, FERC Docket No. ER78-19 et al. (Phase I), APril

7, 1978, at 134-135 (and documents and testimony cited there) ~

5. FpaL's top of icials have rejected. or considered the

rejection of .otherwise economic business alternatives for FpaL on

grounds that they might be of benefit to Cities as weil. See,

(a) Opinion NO. 57, footnote 49 (b) Cities'ug. 9/

1979 Memorandum< and (c) evidence cited elsewhere in response to

these inte~gatories.6. FpaI has sough" to restrict Ci«ties'ccess to alter-

native fuels and new technologies. See, e.c., (a)'Response

interrogatory 14 ra 'ff.tan Industries> (b) 'Guidelines for Powe

Generat'on From Hunicipal Solid Waste Operations" (212164); and

on information and belief (c) FpaL actions in relation to Dade

County waste disposal.

D87

'7. E vcv. c-"M»" w~t -"e C'> eve» "eq"es~pa~ C' '» J» p»y»»»'I g ~+4»»»ts~»»J C» ~e»Je»

s~~~ cP v ~r». Qsc we eac" stch =ay «s az'" .=Sr»'s

»»pic~»e 4e»»»g a»J c» ish «L«ccgtcM«»g 4 c»~~» 'geac s~+ e~~es» ~»J 4 ~ «Cc lee pe»SC» ~»4»»»Le

~eS g ~ C» ~ CQMt ( e-i M ~~ C C»Mi PC SC

c hy wley~ua) a»J 'c c~i, a ~ oc a» "ewcts y=ese"-

a" the ~e ""e»egest e ciao. Ca~ cf "" "egest; ye»scc

e +est, 'Jas ad essd'e cc po scL Mhc esrct~eJ

~ - e " W~CS-; «cow Cf W4 =eeyore (i.e., WZ' O= Oa','" ye scc. o= hv te'eyhcne) aaC. i c~, a L'.St, c a'' ye»sots

y ese" ar the ~ the =asperse wee gve"; ye»sc" tc vhcn W=escctse was a&-essed.; hz of the "esccae; ard. a acLea=

d I c ts c Mhich pl~ cw'pa J c @as ~4es

D88

Answer to Zate~aa orv 17

l..he Sept. 1970 R.W. Beck "Zn't'al Power Supply Study"

fo. Pt. Pierce considered participation in PPaL's nuclear

genera"'ng acilities. Zn an Oct. 13, 1970 meetiag with PPaL,

Pt. Pierce discussed access to axclear power with PPRL. As

recorded ia the Oct. 13, 1970 R.D. Hill memorandum to f''e(211689) 'Mz. Bathen brought up the question of a aational

discussion egardiag d'solacement of nuclear power. We told him

we would an't discuss aoz make any comments at this time) thatthis matter was under discussion ia higher circles and when we

had any knowledge we wouLd advise him. He, in behalf of Pt.

Pierce is thinking of d'splacement ia the amount of 40

megawa ts.'ee also Oct. 20, 1970 memorandum to file f=om

Z.L. Breedlove re Meeting Oct. 13, 1970 with Pt.-Pierce repze-

sentatives and consultants (211665) ('Mz. Bathea questioned us

about the availability of nuclear power from our Hutchison Zsland

plant. He was informed that we were unable to discuss or make,

any comment as to power ~m the nuclear plant at 'this time. )Subseqxeat Pt. Pierce requests foz access to St. Lucie ZZ

include

(a) Ernest Settle zecalls asking Al Zinni to schedule a

meeting with Marshall McDonald to discuss the possible purchase

of St. Lucio capacity by Port Pierce. Zn a W.H. Sanders membran-

. dum to Pile of Cct. 11, 1973 (211659) PPaL records M". Settle as

making an inguiry concerning St. Lucie Unit No. 2. The request

was made on oz about Octobez 11, 1973. PPaL never responded to

the request.

(b) Oct. 24, 1975 letter from Baldwin to W.E. Coe

(seeking discussion of PPU participation ia Hutchison Zslaad)

(c) Dec. 2, 1975 Letter from Danese to Baldwin ("Unit

of the St. Lucie Plant is owned soleLy by PPL. Zn connection

wi h the antitrust review of an applica ion (to Ne AEC) for Unit

2 we agreed to offer pa ticipation to two particular cities and

seven EL+A cooperat'ves, each of which had expressed interest inpazticipat'on as early as ).973 .. we +ok the posit'on as the

t~e of ouz agzeement with the AEC that paztic'pation would be

offered only to those systems which had previously. expressed

- D89-

17-2

interest."(d) Dec. 9, 1975 letter «rom Baldwin to Danese ('he

peep' in ""' area, the Ut'lities Author'y, City Commission and

County Commission have cooperated in every way with FPQ, in a

number o«ventures in rhe past. Zt Ls, of course, Lxumbent upon

one to inform the FPUA why repzesentat'ves of FPkL could mt meet

with me to discuss Ms matter in detail, why we were ant

informed of the fact that we might have participated earlier and

for what pazticular reason participation cannot raw be

considered.

(e) Dec. ~ 19, 1975 letter om Danese to Baldwin ( Your

letter '~lies that FPaL affi~tively invited or solicited par-

ticipation. That is not the case .. Lt is incorrect to assume

that there were municipal systems who were Lnvhted ~ participatebut decided against it.")

2. Plaintif s made a joint reques for partic'pation inFlorida Power a LLght Company's South Dade unit in conjunction

with their Petition to Zntervene in NRC Docket No. P-636A- 'i.swas done through the Joint Petition on April 14, 1976, Lsaludiap

the af idav's of Ea~ C. Lu««, Jr. Plainti««s KLssimmee and

Starke were not named Lntezvenors. Eowever, they are members of

the Florida Municipal Utilities Association, which sought rightsI

of partLcipation on behalf of Lts members. Petitione s sought

participation in mt on3.y the South Dada uni.ts but also in St.

Lucie Unit No. 2 and FPLL's other operating mclear units.Other signL Leant letters of requests for South Dade and

other participations Lr lude a letter from George Spiegel to

Tracy Danesey Re: Florida Power a LLght Company, 'South Dade

nuclear project, Apr'1 14, 1976)) a letter from Robert A. Jablon

to Tracy Danese ('Re: South Dade nuclear units", July 21, 3.976)t

a letter from Rober" A. Jablon and Harry C. Luf to J. A.

Bouknight, Jr., Esp., Apri3. 15, 1977; and letters from Lnter-

venors to marshall NcDonald re: Settlement of NRC Docket Nos. P-

636-A and 50-389A, July 28, 1977 and related lettez to Rober" J.

Gardner, Cctober 28, 1977.

Pzeceeding the «il)ng of the South Dade "Joint Petition of

Florida C'ies «o Leave to Intervene and Request for Con«erence

D90

1 7»3

and Hear'ng various municipally owned utilities 'n Flor'da

requested the opportunity to participate. Such requests are inthe possession of Florida Power a Light Company. Requests were

also made to David A. Lackie, Esq. of the Ant, ~st Division.Such let ers include let«er of James A. Bauer, City of Kisshanee,

to Ralph C. Mulholland, April 7, 1976< letter f"om Charles R. P.

Brown to J. K. Daniel March 31, 1976> letter of Robert ~ Jablon

to David A. Lack'e, February 6, 1976) letter of Robert A. Jablon

to David A. Lack'e, Esq. > February 17I 1976.

Florida Power a Light has been well aware of City requests.

For example, in a memorandum by Robert Qardner, July 28, 1976,

FP8L stated the 'municipalsmo-operative sr"ategy" as being that

they should have statewide generation planning, mul 'pie-unitsharing, and full

coordination.'.

Soon af er their South Dade Petition, theCities'equests

for mclear participation were specially renewed by allPlaintiffs except for Plaintiffs Homestead, Starke and Kissimee

in conjunction with the Joint peti«Don ot Florida Cities forLeave to Intervene Cut of Time; Petition to Intervene and Request

for Hearing in Florida Powe» a Light Company, (St. Lucie Plan",

Unit Nos. 1 and. 2 and Turkey Point Plant, Unit Nos. 3 and 4), NRC

Docket Nos. 50-335A, 50«389A, 50-250A and 50-251A, filed Aug. 9p

1976, including the affidavit of Harry C. Luff, Jr. See m.so

the letter from Harry C. Lu f, Jr., Chairman, Xntervenors

Steering Committee and R. A. Jablon, Attorney fot Xntervenors to

Marshall McDonald, dated July 28, 1977. FPaL repl'ed negatively

September 16, 1977, which lette».was in urn answered (to Robert

J Gardner, Cctobe" 28, 1977) ~ Plaintiffs urther rely upon

their complaint 'n this proceeding.

Homestead and New Smyrna Beach made an independent request

for access to St. Iucie 2 participation and for alternatives.For example, on January 21, 1973 Homestead and New Smy na Beach

met with the Atomic Energy Commission Staff. and expressed theiinterest. The City of Starke'also requested an opportunity forpart'cipation in St. Lucie 2 by letter to Mr. David A. Leckie

(August 13, 1973).

The proposed ggy~~~+ license conditions for St. Lucie 2

17-4

provided a righr. of access to New Smyrna Beach aad Homesread.

Subsequent to that time, there have beea numerous negot'ations,

exchanges o letters cor erniag implementation of these rights ofr

which FPaL is well aware. For example, on November 13, L974,

John R. Relly, Director of Utilities of the Ut'Lities Commission

of New Smyrna Beach, Florida wrote to Florida Power a Light

(Ralph G. Palhollaad), agreeing to take .and pay for a 3.7037%

share o St. Lucie 2 (about 30 Nw) and a L.85185% share of the

common facilhties at the St. Lucie plant shared by Unit No. 1 aad

Un't No. 2. Za conjuration with that of er, the Utili iesCommission agreed to a sell.-back ar=angement, capacity exchange

aad t=ansmission facilities investment as set forth in that

letter.4. Various cities, both plaintiffs arA non-plaintiff cities>

sent letters to N". Mulholland or others of FLorida Power r Light

regarding participat'on in the South Dade nuclear project. By

various letters dated March 30, 1976, FPaL responded ~t it has

decided to proceed independen ly with the development of the

South Dade, pxoject and to utili"e the project's electricgenerating capability to meet our own system's energy aeeds."

However, the company s ated ~t it "recognizes the widespread

interest within Florida in the joint development of nuclear power

facilities'nd stated that "FPL would consider being par- of a

joint venture to construct a nuclear facility some~here ia the

central-'FLorida area so as to be conveniently Located for poten-

tial participants.'y lerter of April 14, 1976 George Spiegel

responded af irmatively. Za that Letter he also st=essed the

importance of Legislatioa to authorise municipal utilities to

establ'sh an authority for joint municipal financing of large

plants, such as the plant suggested in the company's letter,and the develooment of a fully integ ated Florida power pool.

FP!L later held a series of meetings to discuss joint par-

ticipation ia a ruclear uni for Central Florida ia which systems

throughout Florida expressed an in crest (see documents

afereaced in response a interrogatory 15). At the f'rstmeet'ng, r paL s ated 't would be the lead agea- for Ne project—the party responsible o construction arA management of the

D92

17-5

p Yojcc ~

Later, FpaL said that, although 't would be the lead agent,

it would not partic?pate ?n the project; a3.1 other parties f ltthe lead agent must also participate.

Plainti fs be3.ieve tha" FP6L used this cent"al Florida unitto divert municipal and cooperative electric systems from seeking

participation in FPaL's other nuclear units. FP6L proposed

expensive feasibi3.ty studies,,including feasibility of a floatingunit. Yet, FpaL had rejected such floating unit.

Document No. 280954, et ~se ., provides an April 8, 1976 sum-

mazy of major financial considerations for FpfL in the develop-

men" of cooperative nuclear powe plants. This dccument writtencontemporaneously with FpaL's letters suggesting a joint project,shows a desize by FpaL, which was not then communicated to other

parties, not to have an ownership interest in such plant.

Further, document No. 280954 sho~s that from the began'.ng, z al

zecogm.sed that the form of its pzoposal would make the projectdifficult to finance for the municipals. At that time, the com-

pany was zesis ing leg'islation to allow for a join" finan" ing

agency.

Document No. 280958 shows FpaL recogn'tion that unit sham?ng

involves finan" ial questions for municipals and that municipals

need additional ar angements for risk sharing, but that sharing

gives municipals access to ecommies of scale. This document

I'emonstrates FPaL awareness of municipal desires to have

peninsular-wide generation planning and multiple unit sharing and

FPSL's reasonS for zesistance.

Plaintiffs. contend that FPaL's response as shown by 'tsactions, cor espondence, and statements 'n zegard to the Cent=al

F3.orida unit constituted a refusal of participation.In addition to the March 30, 1976 lette s, the supporting

documentation includes letters of Robert A. Jablon u Rcbe " J.

Qardner, November M, '976 and December 16, 1976; Rober A.

Jablon to racy Danese, October 21, 1976; Rober" J. Cardner to

Robert A. Jablon, July 28, 1976; Pzoposal for Site Study,

September 15, 1976; In ozmation for Those Systems Which Have

p.eviously >pressed Interest in the Joint project (10/1/76);

~

- D93

o'nt Nuclear Facilities Rudget Allocation (Septewbez 13> 1976);

Letter zom R. J. Gardner to iC. Hazy W. Wright, Cctober 19,

1976< Lette" from J. Thomas Gurney> Jz. to R. J. Gardner>

December A> 1976< To Members of the Florida Utilit'es Steering

Committee from T acy Danese, December 14, 1976; Let er o. S. L.

Livengood to R. J. Gardner of December 22 1976; Let er of Ha~W. Wright to T=acy Danese, December 20, 1976'etter of H. C.

Lu to Tracy Danese, December 28, 1976'Cocperative Nuclear

Powex Plant Major Financial Conside ation for F?aL,~)February 8,

1976> Meetings, May 13, 1976, June 3, 1976, June 22, 1976, July

14, 1976, September 10, 1976, and September 30, 1976.

5. Plaintiffs note that within the last six months> both inthe contest of settlemen discussions and otherwise, cWaL has

acted e of ex'att cipation in Georgia Power' Vogtle units.FPaL is aware that plaintiffs are considezing the mat er.

6. See also letter of Jan. 27', 1978 fzom J.H. Phillips to

Rcbext J. Gardner.*

At this date, it is difficult to state the other requests

that might have been made. However> as is manifest from respon-

ses to othe intemgaxories and the record, during the period

.PSL was planning the Turkey Point and St. Lucie units, it was

either reluctant to or absoLutely xefused to sell firm power, to

transmit and to coordinate with plaintiffs. As FPtL's laterzesponses to requests with regard to mcleaz capacity illustrate>requests fax joint pazticipation oz unit power purchases would

have been ruitless. Xndeed, plainti fs would have needed FPaL's

cooperation in seeking legislative changes, to obtain dizec

ownership interest in joint ventuxes with FPaL. While other

legal paths to permit access might have been explored, this would

have been a fruitless ef ort.FPfL knew that in filing for AEC licenses as research and

development zeactoxs under 5104 o the Atomic Energy Act, 42

U.S.C. $2134, it wouLd avoid an i "ust review. Thus,

forestalled requests fo" joint participation.

As to eac ~ ~>~ ~ ~ ~ vQ

to ac»=--e =- —ya'' s~s~semco a ea, as fs a''e e '" ! 7~ or m C-~La'"= c s'"' "~ + -"e J~te ot vh'ch '" hag; "a Qw oa vh'ch '-~H. ~ho '"'«ate> c"w'~m-'c" c~ ~~ ""~osa: ~" ™ac~~e the ct w i1 ~~~~ t» Scca c~ we a

ac—m'='oz (sa3.e, Lease, othe= ) ~ W M4 reeuLt o~ each n:ch

D95

21 ~1

Answer to Znterzocatorv 21

21. Since at least the start of the designated period FP6L has

continualLy at empted N acquire systems in its sezvtce area. Zn

addi 'on, pursuant to the Cainesville conspi acy and the ter i-torial agreement descried in answer to inter=ogazozy 22, it has

J

aided and abetted Florida Power Corporation's effoz s to ac@rice

systems within the terr'tory allot ed to Florida Power

Corporation. The method of FP6L's continui~ attempt is the

zefusals «to deaL, resistance to dealing, and dealing on unreaso-

nable terms descried in response to all other interrogatories(see, e.c- especially responses to questions 9, 11, 14, and 15<

and 17) ~ This behavior by FPaL lessens the ah&i y of municipal

systems to compete and tends to induce a readiness to lease or

sale of the svstem to FP6L., Zn the course of the designated

period both FP6L a'nd officials or citizens of Cities from ~e to

time expressed interest in the development of a {ozmal lease or

sale pzoposal. Znsofar as FPaL presented disczete proposals to

purchase or lease, they are identified below.

he interzogatozy also asks 'who initiated consideration of

the proposal that FPL acquire the msnicipai system." Cit'esnote, as shown below, that it has apoarently been FPaL's policy,albeit one with substantial exception, to urge Cities to issue

FPeL formal zeguests for proposals before FPCL's made a formal

proposal. hus, in some cases city commissions or boards have

formally asked FPaL for a proposal. As the documents cited below

and in response to other guestions show, however, such formal

proposals are the culmination of FP6L's efforts to induce and

facilitate proposals by refusals to dea'nd/or behind the scenes

political activity.On ."-?6L's historic intentions see generally:

(a) Octobe 17, 1956 Fucua/Bill memorandum (PL 18) re1 plans

of Lake worthy Clewiston~ F . Pierce and Ve o Beach 'in connec-

tion with a study we aze 1x1w making he e" and (b) January 7, 1957

Ki.ll/Fuqua memozandum (PL 626) attaching data regarding Vera

Beach; notes previous forward'ng of infozma ion on Lake Moz4 and

subsequent orwarding of in ozmation on Clewiston and

D96

Ft. Pierce.

(b) Robe - Fice, Cainesville case deposi«tion, Sept. 25, 1922

at 15-16 (ra: hov in»erconnections came about)

~ ~ ~ some of »he se interconnec tioas comeabou», because we sought to purchase orlease municipal dist=ibution sys ems. Thatwould be in the case in New Smyrna Beach, m'ght be thecase in Homestead.'

How vould FPCL at empt to lease or buy asystem by b inging about an interconnection?

A. By negotiations vith the City Commission;elections on the question of a lease.

Q. Did the interconnection come aboutbecause you vere successful in getting alease?

A«No«Q. That is my question. Hov do you get froma discussion of lease or purchase over into .

negotia«ting an interconnection?

A; Mell, it comes about this way: in somecases a city such as Lake Morth, Z believe,was a case in point, vanted to buy power who-lesale —that was the case with Homestca'd-and our policy was not to sell wholesale.

So ve then ied to work out a lease oftheir system and take over the whole thing..Zn the case of some of these to~ns the CityCommission or some of them thought that wouldbe a good thing, but none of them evermataria3.ised and became effective.

.Zn the meantime, i'hey had emergencieswe tied into them. One case we agreed»osupoly elect icity fo. a year or so whi3.e. wecould negotiate and try to work out the leaseon the purchase of «the distribution system.

(c) Statement for the Record by'FpsL Zn Response to

Testimony By or on Behal o Florida Municipalities at Senate

Comme ce Commi tee Hearings on S. 1365 on June 27-2&, 1967 (PL

94)o

"FPLL Co. has never made any catego ical statementof policy to the effect that it would mt wholesale tomunicipalities as witness the examples abave.

"Zt has been pointed out that in many cases itwould be to»he economic benefit of a municipality'selectric customers, Ne emoloyees of the City electricsystem, and indeed, o the City itself to sell or leaseits elec"=ic facilities to «the company on fai" terms.This matter is tinged vith emotion and prejudice butce tainly represents a sensible and reasonable epproachto »he problem."

«e'Homes ead, along with many other c't es, has con-

sistently ind'cated tha a permanent wholesale a ange-ment might lead to a purchase of the city system by the

D97

21-3

company and that a wholesale contract was ta bc avoidedbecause af thc danger of loss of the property."

(d) Mazch 30, 1957 letter fram F ed Danfor@, Seczetxry

Cen al Surveys to Ben Fugata (PL 322) (transmitting Me worth

opinion survey) ("... the Lake Worth si uation looks very pro-

mising ~ I have )ust glanced at the Homestead results and am

so~ ta say it daesn' lookpromising.'e)

'A Eal Century af People Serving People; A History af'Florida Pawer S Light Campany," 40-43.

(f) September 10, 1976 mcmorarAum fram T.R. Moffett, Jr. NCD

to L C. Hunter, Group Vice President re Vera Beach Distr'ictEngineering Requirements (4120239) ('he impact potent'al of the

Vezo Beach acguisition on the franchise election in Daytona Beach

and ather Municipal Operations such as Ft. Pierce, Homestead,

etc. makes it imperative that we not andes-ac44wc with our Vero~cr)3(;hie,v

Beach operation." hie,v(.

New Smvzna Beach.

In 1959 FPaL proposed to lease the New Smyrna Beach system.

This af er was rejected by the Ci y, Commission. Sec, ~c.

l. October 17< 1956 Fuqua/Wright memorandum seeking in or-mation an New Smy na Beach, Stazke, Green Cave Sarings planning

re: 'Same studies we are making here" (PL 396) ~

2. March 24, 1958 Fuqua/Wright memarandum (PL 82) (New

Smyrna Beach receives na payment to the General Fund far the

electric system. "I so, the climate far regatiation shauld be

pretty good.

3. August 19, 1958 Chas. H. Cole/A-B. Wright, Vice

Pzesident, FPaL Memarardum zes New Smyrna Beach (PL 81)

Infozma ion on New Smyrna Beach people arl insti utians ard theirrelations with FPQL.

4. August 19, 1958 A.B. Wright/R.C. Fullerton, Vice

President re: New Smyrna Beach (PL 80). In ze: August 11 letter,provides 4 who's who of New Smyrna Beach.

5. September 16, 1958 Fite letter ta Miltan F ank (o

Wisconsin) (PL 78). Thankirg him far information on New Smyrna

Beach contract. "We have bean working up there for some lirtlce row and it scorns to be abou- one of the best

'prospects'98

21 4

that we have had... we are cezainlv go'ng a make eve r ef ortto aequi™e the property."

6. Septembe. 22, 1958 Wright/Pire memorandum (?L 77) Wright

reports on Augus" 25 meeting with C'ty Commission.

7. September 25, 1958 ~~"'emorandum (PB 76) zei New

Smyrna Beach municipaL elec"-ic system: (a) get certi ied copy

of zesolution 'requesting F?aB to survey the eLectzic proper~,Looking toward possible purchase oz Lease'g (b) work out plans to

(i) sell fi~ pc~et during winter, (ii) City Commission e agree

noz, to order generating ecuipment and to initiate and put through

legisLation changing vote zecpxizements for sell cut. Negotiate

(execu ive sessions) and vote on lease in spring

8. September 20, 1958 Letter from Fite to Herbert

Butterbzodt (PL 75) (refezenced by F ank). Says F?aL has had

preliminary negotia"'ons regarding purchase or lease.

9. October 3, 1958 excerpts f"om a Soecial Neeting of the

City Commission of New Smy»na Beach, Florida. Held Friday,

October 3, 1958. Commission agrees to work as per September'25

."RHF memorandum. "Zt being understood that the acceptance of

this pzoposaL at this time shall not be construed in any way as

indicating that the Commission or any of its membezs at this t'me

stand in favor of the Leasing or sale of the plant.i ~

.'O.

April 20, 1959 Wright/Fite memorandum (PB 72) ~ New

Smyrna Beach facilities are in good shape. Xn comlusion 2

would Like to say again that in my opinion the acqxisi ion of New

Smyrna Beach certainly provides some distinc advantages other

than just taking over a municipally owned„property."

11. April 27 L959 Alan B. Wright/City Commission. Lease

propo sal.

12. August 5, 1959 let er from Wtight to New Smyrna Beach

(PL 65). Acknowledging New Smy na Beach letter formally

=ejecting lease proposal. Fpah zegzets decision. 'We are

however interested in negot'ating oz certain of your outlyingazeas of dist ibution if these facilities are fo» sale ... Ouz

Company's position with the City of New Smyrna Beach vill con-

tinue to be that of a "good neighbor and it is ouz sincere hope

that we may work something out at some future date."

21 5

13. See Augus- 24, 1964 Wright/New Smy na Beach (Mayor

Bathaway) letter (?L 565). Wright notes continued request forservice in fringe areas. F?aL says it is steal interested in'ouv'ng cutlying areas, as stated in 1959.

In 1966 FPSL acguired the elec" 'caL facilities in the C'tyof Edgewater, and under+ok to render elect"ical service in

;?territory formerly served by New Smyrna Beach. (See PL 1-15)

In 1965 FPCL 'and New Smy=na Beach considered the sale or

lease of New Smy=na Beach's system. See February '9, 1965 A.B.

Wright/City Commission letter ormaLLy proposing sale or lease.

See alsoI

1. 'ebruary 8, 1965 Wright/Fullerton memorandum m: Cityof New Smyrna Beach (PL 562) '... the city officiaLs reali=e thatwe have made ra proposal as we simply discussed about what itwould appea that the City would mcpzf.re in.orde to be

interested n our leasing them'acilities'.

February 9, 1965 Fullerton/Fite memorandum re: wo

Current Negotiations New Smyrna Beach and Keys Cooperat've (PL

561) ~

3. February 17, 1965 F?aL draft proposal for lease or sale

(PL 560) ~

4. February 17, 1965 F?aL draft proposaL (PL 1240).

5. "RCF February LS, 1965" notes re: New Smyrna Beach pro-

posal letter (PL 1241) ~

6.,February 19, 1965 Wright/New'Smyrna Beach (PL 559) pro-I

po sal.

7.. September 7, 1965 'Minutes of SpeciaL Meeting o the

City Commission of the City of New Smyrna Beach.'Mr. AllenI

Wright of F?aL Co. appeared before the Commission stating what

they would like to negotiate further with the City and stated he

would have a proposal ready within 30 dayt "

S. September 20, 1965 City Comm'ssion Minutes.

9. R.C. Fullerton letter to Flmer L. Lindseth, (Chairman,

CEI) (PL 553) "You are right this (New Smyrna Beach) is a munici-

pal system and a numbe" of people there a"e interested in us

taking over the operation, a des're we regard with naturaL

D100

21%

e nthusia s=.

Zn 1970 PPaL again sought to acquire New Smy na Beach. See

Sent. L3, 1968 memorandum f om A.B. Wright to R.C.

ullerton (210404) ("As explained previously, the City is accor-

dingly faced with the alternative of either selling the ent'resystem or mak'ng a connection wi& our Company and this decision

will have M be reached at a fai-Ly earLy date because of the

e factor involved La'cbtaining substation t"ansformers and

otherequipment.'.

AprU. 21, 1970 A.B. Wright/J.C. Spencer Jr. memorandum

e: New Smyrna Beach (PL 547). Regarding our discussion of what

might be done to change the present City Charter of New Smyrna

Beach to permit some equiMLe ar angement for the leasing or

sale of the C'ty's elec» ic utilities, 1 am attaching a suggested

change in Section 193 of the City Charter... Mayor Doster isdefinitely interested in endeavoring to work out a sale or lease

arrangement with ou" Company. Of course, we all reali"e that theI

present Char er, Section 193, wilL have to be changed if we are

ever going to resolve this matter. This invoLves a change inthe voting requirement from 2/3 majority votinp to sell or lease

a system, to a simple ma jor'y.3. May 14, 1970 Spencer/Wright Re: New Smy na Beach (PL

546) Sid Eoehl is looking over 'the suggested changes to the New

Smy na Beach City Charter which you sent to us "~ ~ I agree

with you that we cannot and should not take a lead part in pro-

moting the action, but i we are asked or advice or to review

any papers, I think we should do all we can to.help. Cood luck—keep us advised."

4 ~ July 9 1970 Wright/Doster (PL 545) ~ Zn our ecent

discussions 'in response to you" re@est we wouLd be interested

in endeavoring to work out with the City some form ot lease

ag" cement. ~ ~

'.

July 17, 1970 Notes (on UtiLities Commission let erhead)

re: July 17, 1970 conference of City and FPELg

6. July 20, 1970 memorandum from A.B. Wright to J.C.

Spencer re Ci"y of New Smyrna Beach (261825);

7. Julv 27, 1970 memorandum om A.B. Wright to J.C.

D10 1

21 7

Soence Jr. (222~ 32 ) ~

Be Sept. 4, 1970 memorandum from A.B. Wright to E.L. Bivans

re New Smyrna Beach (222133) (Lease. negotiations are cont'nuing;'"if everything qoes well it is possible that we could take

possession after the first of the year (we hope),~g

9. Utilities Commission minutes of Sept. 23, 1970 and bct.

7, 1970)

10. See Stalemate Seen in Smyrna Lease Hove" F Sept30'970

oavtona Beach Morninc .Journal ('right emphasi"ed that

'nothing was settled't the meeting, but agreed that without

some modi ication of the bond ordinance qoverninq the city'elec ic sys em nothing can be settled )) FPL Funds Hay Pay For

wo Elections," Sept. 17, 1970 Todav; "FPL Seeks Takeover of

Smyrna Utilities" Sept. ).'6, 1970 Orlando Sentinel; "Meeting With

Spss susuuise su u Sepsis,'usy LQ, L970 usyeeuu sesuu ~seeuiu

Newse

11. June 5, 1973 memorandum ~m R.C. Pringle, Jr. to R.Q.

Mulholland re City of New Smy."na Beach (261773) ('One thing. that

X would 3.ike to bring out is that du"ing 19'70 when we qot

involved with things before 1 was finally dropped because of the

C'ty Charter stating that it required 75% of the reeholders

approval before any of the City facilities could be leased or

sold. Xn January of this year by referendum the Charter was

changed and now only requires a simple majority of those

voting. ")

Zn 1973-75 FP&L again sought to acquire the New Smyrna Beach

system. Xn Hay 19'73 the C'ty Commission wrote to FP&L expressing

a desire that a proposal bc submitted. Zn Auq. 1974 FP&L sub-

mitted a formal proposal. Zn Jan. 1975 the citi"ens rejected the

proposal in a referendum. Evidence of the above includes the

followinq:

1. Documents referred co in response to inter ogatory 11,

showing FP&L's resistarce m in erconnection with New Smyrna

Beach during the course of the takeove" attempt.

2. May 13, 1973 1etter from R.w. Beck, City Hanager to

Robert pringle (230539) (City commission expresses a desire hat

you company submit a proposal. )

D10 2

21-8

3. June 15, 1973 letter from R.G. MuLholland to R.W. Beck

(230536) (F?4L 'auld be receptive to d'scuss either of the two

(lease or saLe) proposals."

4. Sept. 4, 1973 letter from S. Uicmr McDorMd, CityCommissioner to MarshaLL McDonald (230"r24).

5. Sept. 20, 1973 letter from MarshaLL McDonald to S.

Victor McDonald (230r2) ~

6. Cce,. 8, 1973 let er from Marshall McDonald to S. VictorMcDonald (230822) ~

7. Oct. 25, 1973 letter '"om S. Uic or McDonald to Ma shallMcDonald (230&17) ~

8. Aug. 27, 1974 letter f"om R.G. MuLholland to CityCommission (261871) (acquisition px'oposal).

9. Sept. 20, L974 Lette ™om George Spiegel toMarshal'cDonald

(230785).

10. Dec. 10, 1974 and Nov. 11, 1975 (230469) Letters from\

Rober A. Jablon to Evan L. Williams, UtiLities Commissioner.

LL. Dec. 20, 1974 letter ~om George Spiegel to Marshall

McDo naLd.

12. Jan. L7, 1975'letter ~m George Spiegel to R G.

Mulhollaad ~

13. Dec. 10, 1974 letter from R.W. Beck to UtilitiesCommission.

14. PPaL internal memorandum (230465) stating that the citi-tens have rejected FPaL's proposaL by a Jan. 28, 1975 vote of

2197 to 891.

Homestead.

1967: see

1. July 28, 196'7 "RHP" Memorandum m Pile (PL 93) regarding

July 27, 1967 meeting with Homestead Attorney Turner( Homestead

asked for (i) territoriaL agreement; (1') more emergency help>

('l) uture permanent connection vith ."-PaL. "We emphasi=ed

again that purchase of the Homestead facilities, or Lease of them

should be consideredalso.'.

Cctober 3, 1967 Pite/O.R. Pearson lette (?L 86) ~ You

recall'hat "the Council, in addit'on to requesting propo-

sals for an interconnec 'on or a wholesale power contract, agreed

D10 3

21-9

(without too much enthusiasm I ad=it) to conside a proposal at

the same ~e to pu chase or lease your system. We have been

working on such a proposaL in addition to «the ar angements con-

ceznirq interchange or wholesalecont"act.'.

November 30, 1967 F.E. Autzey/R.H. Fite (PD 85) re:

Homestead ger«itoriaL Agreement. Commissioner Mayo of FPSC

called regarding Homestead tez itorial agreement. "I told him

that I thought the City would be having to make a decision

shortly after this ter izorial agzeemen't is ordered as «to whether

they are going to buy nore genezation or zecuest us to sell them

wholesale power or us take over their system.. ~ the C'ty had

ag eed to listen to and consider a proposal for us to buy or

lease their distributionsystem.'.

Cct 18, 1967 "KRH'tes (270210-2702L9) ( FPaZ. Co.can'rovide

lower rates for the citi"ens. Mass ptoduc«cion and

diversities provide g.eater economy. SmaLL plants aze not

flexible.'976.

As recorded in the minutes of the March 10, 1976 CityCouncil meeting, at 10, Mayor House called FPaL and spoke with

Mr. Irwin and asked if FPaL would be interested in coming down

and talking about the possibU.ity of selling the Light plant."Mz. Irwin contacted his supervisor who sent word back thatbecause o antit"ust laws FPaZ. had to be very careful how they

approached us and could rat approach us without formal request

from Council for them to come down and talk about this." On

March 17, L976 O.R. Pearson wrote Mz. Hillis Zrwin, requesting

such a meeting. Discussions did mt result in a defin't've pzo-

posaL by FPaL.

F . Pierce 1965, See

April 2, 1965 Memorandum from R.D. Hill to R.C.

Fullerton (PL 29) Re: April 1, 1965 meeting with Ft. Pierce.

I was then asked by Mz. White, one of the Commissioners,

whether we were interested in purchasing the pzope ty, i.e., the

pLant and dist ibution system. I told ~ that we were but that

any recommendation from us would zecu'ze study before any propo-

sal couLd be presented.... he only question asked of me by the

press was were we interested in purchasing «the Ft. P'erce

Dl04

2L-10

electr'caL system and 2 advised them that we were."

2. May 5, 1965 R.D. HLLL to Ci".y Commissioners (PL 33).

FPaL suggests Lease or sale.

3 May 12, 1965 Harding/HLLL let. er (PL 36). Re~ HiLL's

May 5 Letter. Harding told H'll (by phone) on May 7 that the

C'y vas rat interested in Lease or sale. 'It may be that the

Ci~'s position with rega"d to the lease of the City's electricutility to your company vas slightly altered as a result of the

May 10, 1965 meet'ng. At that meeting it vas my understanding

that Commissioners Castle and Trucker vere authorized to d'scuss

with you fur~Der the possibility of a lease agreement .. ~ This

office is Looking forward to confer ing vith you in the very

~ediate future about the possibility of stand-by, emergency

standby or wholesaling of elect=icity.4. June 1, L965 City Commission meeting. 'Motion was made

by Mr. Tucker, seconded by Mr. Nelson that we terminate our

taLks with FPaL regarding the tie-line for emergency power.".

Passes 3-2. Motion vas made by Mr, Tucker,, seconded by Mr.

Castle that we inviti FPaLi if the inviration has mt already

been given, to present us in writing a proposal for the lease and

sale of our elec""ic facQ.ities with the understanding that we'

are not ccmmitted in any vay, in any respect, to anything else

but to consider and study theirproposal.'.

June 2, 1965 (PL 41) Harding/Hill letter communicating

Commission votes.

1976. On March 1, 1976, a meet'ng vas held between represen-

tatives of the F.P.U A. and FPaL to consider the acquisition ofthe F . Pierce system. The meeting is reported in the F.P.U.A-

minutes. contemporaneously, FpaL advised Bob skinner Rat FpaL

would Likely withdraw "in the event that future Legal situations'arose that in our opinion would be detrimental to our continuirgthese efforts." Memorandum to fiLe, J.K. Daniel, April 28, 1976.

On March 26, 1976, a meeting of the F.P.U.A. vas held to con-

sider intervention in NRC Docket No. P-636A. Mr. Daniels implied

.that such intervention might cause FPaL to cease r~otlations.At a meeting between FpaL representatives and Mr. Menge on

April 8, 1976, and at anothe" meeting w'h the FPUA, April 9i

D105

21-11

1976, .p&L "Led to conv'ace Ft. pierce not. to interveneSouth Dade. At the May 9 meeting, FP&L said they would get a

task force to Ft. Pierce Ln a week or ten days "to gather finalinformation rega"ding the negot'ations and they wouLd be ozepared

to make an oral presentation within 30 days." FP&L dLd gathersuch information, but no definite formal of er was submit ed.

According to Ft. Pierce representatives, once the Cityobtained wholesale po~er, interest Ln selling the system dimiee

nLshed.

etee'te. 1955. eee Feteeeee t, 1955 e.s. eetett/R.E. pt e

memorandum (PL 644) ". ~ ~ 2 feel this wouLd be a good ~e atleast to feel out the attitude of the Sta ke of Lcials as to a

possible lease arrangement

1969" AccordLng to FP&L's response to Gainesville case

Lnte ogatories, "On September 3, 1969 a meeting was held be-

tween representatives of the C' of Stazke and Fp&L Co., duringwhich the possibilLty of selling the Stazke system to FP&L Co.

e

were discussed.'ccording to FP&Li those pzesent were FP&L's

Wright, P"ingle, and Durian and Starke Commissioners Gerald

WL11Lams and NeLl Tucker. The only document cited by Fp&L Ls a

Septembe 3, 1969 Wright memorandum to file.Clewiston. From at least the beginning of the designated

period FP&L continually sought to lease or purchase the Clewiston

system. vidence of thLs includes

1'une 2, 1950 memorandum from Sidney S. Boehl (attozney)to R.R. Fite (refer ed to Ln PL 209 below). "I do no believethat there aze any zeal legal problems involved .Ln our acquisL-

tion of the electzLc system in Clewiston oz Ln securing a

franchise fromClewiston.'.

Zn 1955-57 FP&L talked with Clewiston regarding lease orsale, and made a proposal which was rejected by the City Ln 1957.

See

(a) January 13, 1955 E.W. Smith (Regional

Manager)/FLte memorandum (PL 118) regarding negotiations withClewiston. 'These negotiations aze urgent at this time because

the City Ls faced with the necessity of making ce taLn improve

ments to theLz distribution system pzior to the suez session o

D10 6

21 12

1955. he C'ty has the coney on hand to do this work and aze

prepared to do so but aze wi~o3.ding act'on pending the outcome

of ouz ragotiatlons.. ~ the C~ty officials have indicated a

willingness to receive a proposal f=om us ... (in view of

exis ing contracts] we believe that ouz ptoposal to the C'tyshould contemplate cont'nuance of the existing contract until itexpires November 1, 1958... Zn consideration of a3.3. these factors

and the small amount of out of pocket money required ink.tially,we feel that we should make evezy effort to acquire this pzoperty

at thistime..'b)

June 12, 1957 letter ~~m Mrs. Pearl B. Stephens

(Deputy Clerk, Clewiston) to R.D. Hill (PL 204) inviting FPaL to

survey property in contemplation of proposal.

(c) Oct ber 2, 1957 memorandum from Sidney Hoehl, Jr.(attorney) to R.F. Lewis (Special Asst. to the President) (PL

209) regarding legal aspects of proposal.

(d) September 20, 1957 (PL 196) document entitled,\

"FPaL's proposal." (Nhi3.e document also bears handwritten words

"not submitted, according to FPCL's inte~gatory answers in the

Gainesville case, a proposa3. of this date was made.)

(e) PL 217 handwritten tates recording contact with

Clewiston citizen Robert Cochrane apparently Cczobez 1957.

(f) November 29, 1957 letter, from Fite to Fred C. Sites

(Mayoz) (PL 332) Fite disappointed to receive Sites'ovember 26

'etter "saying that the Commission has directed you to advise us

that ouz proposal to lease the municipally owned distzQutionsystem at Clewiston 's not acceprable."

3. FpaL's continuing interest in clew'ston is evidenced by

Januazy 9, 1959 lethe from F'te zo N.B. Zzby, Glades Q.ectzic

Cooperative, Znc. (PL 1063.) ~ "Z think Z should mention Clewiston

as an area foz special treatment. As you know, we have been

interested in purchasing Ne mun'cipal facilities there and

serving the a"ea zeta''..We pzobably wil3. continue zo mgotiate 'oz the purchase of

Clewiston if and when the oopoztunity presents itself ~"

Zn 1965 FPfL sought to lease o" ac~ ize ~De system in

connection with Clewiston's intervene'on at he FPC.

D10 '7

21 3

'I

(a) See August 26, 1965 J.G. Soencer Jr. memorandum

ile. (PL 308) On August 26 K'll, John Majewski and Spencer

visited Commissioner McCarthy in Clewiston. McCarthy said "he

has the suppo.t of the Council, when the [Coop) contract expires,

to either buy wholesale from FPaL Co. or instaLL their ovn diesel

engines. Ke had not contacted us since he knew ou 'policy'snot to wholesale to cities, but he thinks ve should and that ifwe refuse, the Government should orce us to ... Ke also stated

that the City would not consider the lease or sale of their

facilities.'b)September 3, 1965 handwritten memorandum (no author

listed) regarding September 13, meeting with McCarthy, K'll and

Spencer (PL 307) He told Mr. McCarthy tha" ve were back for two

purposes —to cowrince him that EPSI Co. was ready co,mgotiate

vith the Ci y on the purchase, lease, management or any other

plan to se~e the City vith elect ic pover —ve.have a compL~~

paly open mind —and 2) that vhile we are taLking we vant them\'o

withdraw ~m any participation in the cur ent FPC hearings"'c)

'Memo to F~Le'PL 306). Typed memorandum

regarding September 3 meeting with M". McCarthy. "Mr. Spe n"er

and Mr. KiLL discussed possibilities of further discussion-for

sale or lease or operation of their elect=ic dis ibution system

and ~M ve would like to make a further study and procosal. Mr.

McCarthy advised us that he was definitely interested in pushing

purchase of vholesale power from us... and that he thought ou=

presen" policies vere disc iminatory. ~ ~"

(d) Package of material marked "CLawiston', "BPF"

'L966,'ncluding Qeneral Background,'iscussion of rPaL Co.'s .

Purchase 0 fer for the City of Cleviston Klect ic System,"

"Cont'nued Ownership Sy City of Cleviston vs. Sale to FPtL Co."

(251017-251030) (The document lis s, as a disadvantage of'on-tinued ovne ship, "(Q)enerating facilities o a si e usable by

the city are unthinkable when compared to the ecomimies of the

enormous plants being bu'lt by public utili ies.. In the pas wo

years the FPaL Co. has retired as uneconomicaL twelve plants

ranging om 12,000 Kv to 33,000 Kw capability." It 1'sts as an

advantage "(O)ur Cleviston customers vill participate in any

0~10 8

21 14

future savings tn the cos- of electricity resulting f"om the

large scale develocment of conventional and nuclear power

plants

'ero

Beach:

1957-1959 ~ In 1959 FPrL and Vero Beach discussed possible

lease. FPaL was invited to do so by a Vero Beach commit ee con-

sider'ng alternatives. >e d'scussion took abou" two months and

apparently nsthing further came ot it. Documents show that,independent o the Vero Beach invitation, FPaL sought to lease or

purchase Vero Beach. See

1. Cctcber 22, 1957 letter from Nicholas P. CaLlaghan to

MacGregor Smith (111014) ~ Callaghan is a FPSL stockholder and

Vero Beach ratepayer —outraged by Vero Beach semice. "I pro-

pose to do something about it. I am wondering i I could enlistyour aid ~ .. it would seem to me that some action shouLd be taken

to see that perhaps a ccmpany such as the FPaL Co. could asgo-

tiate the purchase of the utiLity from the city and operate

~ ~ ~

2. Cc&er 28, 1957 Smi h/Callaghan. (111013) 'I was glad

to get your letter and to learn that we have such a friendly allyliving in Vero Beach. Some of us will be calling on you soon to

get your views as to the best way the problem should be handled."

3. March 22, 1958 Finn Rhaberg (member of Long Range CityPlanning and Advisory Commission) to President cPaL (U.1021-221,

Folder 34). Would Like to meet to d'scuss alternatives ava'lable

to Vere Beach system, including pooling," sell cut,. wholesale.

4. Mar h 26, 1958 Fuqua/Hill (LL1020) ~ Will visit Vero

Beach, will give talk instead of written answers.

5. March 28, 1958 Fuqua/Ramberg (111019} wiLL meet.

6. April 1, L958 Remberg/Fuqua (111018) setting April 1,

1958 meeting.

7. Apr'' 2, 1958 Vera Beach/FPaL bill comparison

(111016) ~

S. May 10, 1958 Report of the Lory Range City Piann'ng and

Advisory Co~ittee of Vera Beach, Florida: Subc~ittee on

Slectric Ligh" and Power. (This dccument was identified as

C''ns Bxhibit No. 36 in Flo ida Powe 6 Lich= Ccmoanv, FPC

D109

21-15

Docket No; E 9574.

he Committee zecaaends tha "prompt ac ion be taken

concurrently" to (a) explore pooling with Ft.'pierce: "Zt anpears

likely that such a Vero Beach - ? . Pierce combination would be

economically justified tMough use of larger and nore efficientgenerating units, th"ough having deep water docking facilitieswith cheaper fuel, and for other factors explained later "~ (b)'Xnvite (by Council Resolution) the FP&L Co. to come to Vero

beach for a conference. They would survey the Vera Beach

electric system and submit a'ystem lease or other proposal. A

FPaL Co. pzoposal should be attractive in that ecommies should

be possible because of the company's large scale operation. They

aze able to generate with very large units at efficiencies much

higher than is possible in any lccal operation. They purchase

fuel at very Iow cost through long term contract. (c)'Supplementing those two ef orts, consideration should be givento the building of a new steam power plant in Vero Beach. The

unfavorable factors as to small capacity and location of such a

plant make this solution of the problem of doubtful value exceptas a last zesor-.'

FPaL told the Comm'ttee it was mst interested in. wholesaling

( pago 14 of ze port) .

9. August 1, 1958 Fugua letter to R.A. Scot (111031).Thanks Scott for article regarding Vero Beach; notes FPCL met

with Long Range Committee "We had thought that they mightpossibly invite us to Vero Beach. for a discussion of possiblelease or sale o their electric property to the FPaL Co. Lp tothis date we have heard mthing from

them.'0.

February 6, 1959 R.D. Hill memorandum to File (PL 621).H'll, Fuqua and Parkerson of FPaL met with R'.ley Woodson cf Black6 Veatch. Woodson is working with Long Range Planning Committee.

Woodson 'was au horized ~ inguize FpeL's attitude in egazd to

outright purchase oz lease... Woodson to get back to Fuqua onPrinC~ PalS.February 9 after talking with his pekae4p4~

ll. February 9, 1959 Woodson letter to Furca (111033) pro-posing to hold secret talks foz 60 days on sale or lease possibi-lity.

D110

21 16

12. ?ebruary 13, 1959 ?uqua lette to Woodson (111036).

.=usa look'ng forward to talks.

13. April 24, 1959 memorandum, no author, m ident'fyingstat'onary, (111055) stating in part, 'The Company and the C'ty'srepresentatives have mutually concluded that no basic change inthe business relationship between the Company and the City can be

advantageously made at His time." (Note that this memorandum 's

ident'ied by ?PaL as memorandum «to "leg author unknown"

esponse zo an interrogatory on takeovers in the Gainesvillecase. )

Cities ate that, in the absence of a complete takeover FP&L

sought to aid city ratepayers in thei" efforts to change service.

See g e equip

1. October 11, 1961 letter from John N. Hesselton to

MacQregor Smith (PL 614); Hesselton states concern with municipal

service

2. October 24, 1961 Smith letter to Hesselto~(PL 611).

FP&L's LD. Hill will visit to "discuss the siuation. Pe"haps

M". Hill will have some suggest'ons as to what migh bedone.'.

November 2, 1961 Hesselton letter to Smith (PL 608).

Nanking for Hill's visit. "I think I know how m go about

attacking —the pzcblem as I would prefer, peacefully and

without identifying your Company specifically ~ . ~ I shall plan to

accept Mz. Hill's kind offer of getting into his hand the draftof the petition I plan to draw up..."

1967-196&. In 1967-68?PQ sought to purchase or lease the

Vero Beach system. "-vidence of this includesc

1. November 24, 1,967 R.D. Hill- memorandum to file (PL 599) ~

Re: November 21, 1967 meeting at Vero Beach. Vezo Beach wanted

to talk about te itozy, wholesale power, emergency service.

"Mr. Wallace (of Black a Veatch) brought up the question of

rates and t"ading of power and also at the time made a statement

that, Messrs. Spencer and Fuqua had pzev'ously told them thev were

not interested in wholesale power."

"At this time I asked «bhem (those representing «the ci y) as a

diversion, whether they were interesting (sic) in selling o"

leasing the property to us. hey said "yes," that they would be

2< <7

'nte ested in a pzoposal and asked how long i«would take to make

such a proposal ~ 5 told them i~ we had the i~~ormation a pzopo-

sal cculd be made in 30 days.

At «"' poin" Mz. Nallace read a proposal «to the gzoup

we we e presumed to have made in 1959."

2. NovMez 28, 1967 Letter from BiLL to Vero Beach (CityManager Pzyde) . Re: November 21 meet'ng. 'The third quest'oninvolves wholesale power to the City and we are reluctant to go

further into this at this time as we believe «theri are otheralternatives which should fi st be fulLy studied. These include4interchange, lease, sale.

3. February 19, 1968 Letter from J. Noble Richards (Mayor)

to Fite. (121203). Vero Beach vents to discuss, inter alia,"the possibility of purchasing power from FpaL.

4. Febzuazy 21, 1968 'Pt'ogtess Repor" Rei Vero Beach

ZLect ic Power System by Indian River County Taxpayers

.Association (121197). "The big and most immediate questionbefore the Committee today is to determine whethe FPaL would be

villing m sell us firm buLk pover at a cost vhich.could justifyits purchase.

5 ~ Februazy 22, L968 HLLL/Fite memorandum (120963).

Background on Vezo Beach officials.6. February 29, 1968 Fite letter to Fred J. Pzestin (City

Councilman) (121185) ~ Re: meeting vith Vezo Beach. "Other

plans discussed involve more'irect 'participation by FpaL fozsupply of electric service to Vero Beach. There has been insuf-ficient time to formulate the details of such plans but we are

going ahead with the studies and hope to present you vith such

proposals at a laterdate.'.

April 11, L968 Fred J. Prestin, Chairman ZIect-.icaL ~

Study Commi ee to Mayor Richards (121051) "Buying power out-side is the only way to be in line foz atomic energy in the near

future, which vill make all cnaLL genezat'ng plants cbsole«w.

Purchase rates wilL probably go dovn then."8. May 9, 1968 letter from J. Noble Richards to Fi e

(121194). " he City is not inta ested in proposal fo" selling o"

leasing any paz of <ts system." he City vants an in ezconnec-

D112

21-18

tion, 'and we wouLd also be interested in yaur proposalpurchase any excess power and energy that would be availablewe install new generating

equipment.'974-1980.

From 1974-1978 FPaL was again actively involvedIin Vero Beach acquisition. See generally dccuments, testimony,

and oleadings in FLorida Power a Light Conaanv, FPC Docket No. E-

9574. Oa )lae 27, 1976 9 6L .fotaatly ptopoaae to aaaof-e the

system. Zn September 1976 this prapsal was approved hy the

voters On March 31, 1978 FPaL fornaLly withdrew its applicationto aequi e the property in Florida Power a Light Company, FPC

Docket No. E-9574. Bawever, Commissioner Gregg af Vero beach

seated, Should in "e futu"e the climate for regulatory approvalchange, it shall be thc intent of borh parties ta rc-initiatediscussions." March 31, 1978. Gregg Letter.

Zn January, 1980 Bab Sk'nner of Ft. Pierce attended a publicmeeting at Vero Beach where Robert J. Gardner said chat FPaL

wauLd consider making a lease af er after settlement with the\'epaz'tmentof Justice.

K~eaest. Ka 1956 9 aL so.ofh- ta lease at aoqat=e the Key

West electric svstem. Evidence of this includesc

L. August 5, 1955 Letter on Bill Spillman (on letts head

o6 Key sea= olt'"eo mospapet) ta aaoatepa salsa (FL 642).

Sources indicate FPaL is going ta offer L2 miLLLion for the C'tysysten. 'Since yau mentioned abaard the Golden Falcon that therehad been discussions about the passible purchasers' an asking forconfirmation. Mayor Harvey 'said they would be glad ta sell thcJ)

system if she FPaL would give the city six percent of the grassthe same as Miami gets.'ocument bears handwritten nots "talkedon phone."

2. December 2L, 1955 letter f=om Spillnan ta Fuqua (PL 638)

regarding phone conversation of yesterday. Zdenti ies fiscaLagent for the city. The c is sane qxcstion as to whether hc can

be fired ar ast.3. Decenher 23, 1955 BiLl Nchlett (Florida Stats Senator-

Kcy West) letter to Ralph Scot" (PL 637). "Our present unsettledCity Commission 's diff'cult to da business with, particularlysince there is s ill a seat in dispute wh'ch if resolved ta my

Dll3

21-19

sat'sfaction w'll change the present na3ority. Ef you believethat Z can be of any assistarce ta you should be glad udiscuss i ."

4. January 18, 1956 Fugua memorandum ta f'le (PL 636).Declined (on FPaL's behalf) invitation ta speak at Key West (Jr.Chamber of Commerce) on the purchase by the Company of Key West

system. Declined in view of confusion ard "until we receive an

of icial invitation ~mn the C'ty.. ~'.

Undated and na author (PL 639), reading in par:"The new C'~ Commission has mutually agreed ta

look into all avenues ta lower electric rates in KeyWest, it was learned taday, The Comnissioners ardexperts in the elec "ic utility field nct Thursday fotinformal luncheon ta discuss the lowez electric ratesub)ect.

Robert Pits, President and General Manager of theFPSL Ca., told the Camnissiorcrs that he would be recep-tive to an invitation f=om the City ta send some exper"sin the utility field ta study the local system tawazdthe possibility of reconnending measures ta lower theelectric rate."

6. February 14, 1956 V.A. Lang (C'ty Hanager) to Fite (PLI

634). "I have been directed by the City Commission ta advise

your company that the City Commission is not interested, now, orin the near future, in any proposition involving «the sale o the

City Elec«-ic system of the City of Key Rest.

7. February 16, 1956 Spillnan/'Ben'Fuqua) ~ Asks hin talook over resolu ion regarding FP6L's visiting —"it is about. the

best we can hope for at «the present tine" —"designed ta take the

pressu cs off ard make this a mutual agreemenz,.'e proposed

resolution states that wh'le FP4L will be welcome ta inspect forpurposes of making an offer, "Zt is understood by this resolutionthat the City Commission is not t~ing ta sell City ElectricSystem but is merely acting as a business agent for the c'tizenssince by law, they must decide by referendun on any disposition."

8. February 24, 1956 Lang/Fite letter (PL 632) ~ CityCommission voted 3-2 (as Spillnan predicted) that FPCL can come

ta Kev West at any. tine, rat later than March 1, 1956 if theyare 'ntcrestcd in nakirg a proposal far the purchase of the CityElec«"ic System "

9. Pebruazy 28, 1956 Pi tc/Lang telegzan (PL 631) "Please

advise, by,wire if 1«will be ag eeable ta «hc City Commission foz

t

D114

21-20

us to send representatives to Key West nex week to devote thirtydays to examining the books ... At the end of this oeriod we wiLL

be in a pos't'on to state whether or not we can make a proposaL

for the purchase or lease of the Key West Q.ectzic System, wh'ch

wilL be in the interest of the city and itscitizens.'0.

March 2, 1956 Lang/Bite letter (PL 630) ~ Xn order forFPaL's files to be complete, Lang quotes February 6, 1956 CityCommission m'ute extzacts ~ Commissioner Cazbonell 'stated thatFPaL Co wanted a speciaL invitation and he was tat willing toissue any special invitations of this kind,'ut anyone can

inspect the books az, any ~e.Lake Wor h. By resolution of December 26, 1956 the C'y

Commission resolved to contact FPaL to 'incuire of thei" interesin the purchase or lease of the entire elec~ic utility system.

(PL 868) On May 15, 1958 FPaL'made a lease proposal to the City(PK &56) o

On July 24, 1958 the proposaL was voted on by the C'ty',ezeeholders. A majority of those voting favored the', proposal.

The total voting, however, fell short o the percentage requiredto constitute a valid election (PK, 804) ~ Eviderce of FP&L's

desire to acquire this City includes:1. March 28, 1956 memorandum from Paul R. Creenaway; copy

sent to R.D. HKLL and B.H. Fuqua (PL 870) ~ Re: March 27 Lake

Worth Commission meeting.

2. October 1956 "Data on C'ty of Lake Worth" (PK 869) ~

3. December 9, 1957 Robert Wall, Jr./Fite memorandum

(December 9, 1957). (Lists empLoyees who 'will be of assistanceto you in anything that we want to do in Lake Worth ... I thoughtyou might want, to put this in your Lake Worth book."

4. March 1957 "Opinion Suzvey of Lake Worth, Florida oz

the FPaL Co.," Cent-al Surveys Shenandoah, Kowa.

5. June 24, 1958 Dave Bosworth letter to R.C. McCombs (PL

846). ("... we are at<ious to begin rendering the service to you

folks at an early date. )

6. April 10, 1958 'EPaL Co. Stockholders, Lake Woz&,

Flozida April 10, 1958." (PL 848).

7. June 18, 1958 R.D. HiLL to Fellow ~loyees (PL 849) ~

2L-2L

('his is very impo=mnt to all o us as success in this electionwiLL assis- us in our regotiations for othe" municipaL systems.')

8. June 24, L958 letter from Fite to "Dear Lake Wor@

Stockholder 'PL 847) (help us win the election) ~

9. 'FPaL Of ers Top Notch Service'PL 837). (Press .

release).\

10 JuLy 18, 1958 Fits/Freeholders of the City of Lake Wor&

(PL 830) (urging vote for lease —offering t=ansporation to

polls) .

ll. July 25, 1958 Charles H. Cole/Fite memorandum (PL 828)

( Don't feel badly about 'Lake Woz&'. We'l get it" ~ )

12. July 31, L958 Ed Wood/Fite memorandum (PL 820) ~

($22,933 in Lake Worth expenses to date).

13- 'BHF (Fite) November 4, 1958 'Memorandum regarding R.D.

Hill's Meeting with the Lake Worth Committee foz Leasing the

Light Plant" (PL 813) ~

( it was agreed tha~ upon Mz. F'te's return the leade s';.would

join wi& him in act'vities Leading to asking the C'ty Commission

to negot'ate again with the Company and hold another dection.')14. July 13, 1959 Fuqua Letter to H.S. Nonneman, Supervisor

MunicipaL A"fairs Dept. Dayton Power 4 Light (PL 804) ~

Acknowledging Nonneman's July 6 letter regarding "our efforts to

lease the Lake Worth municipal elect ic system. Un oztunately,

those efforts have not as yet been successful."

Pursuant to the te itorial agreement with FPaL, desczibed inanswer to Inte~gatozy 22, Florida Power Corporation sought

take ove" many systems within its territory. Members of the

Cities group that it sough" to take over include Ft. Meade,

Alachua, Newber~, and Sabting. Others include Hushnell, Lake

Helen, Wauchula, and WLLListon. Zn addition, it acguized the

Town of St. Ma ks franchise from Tallahassee.

See:

L. F t. Meade

(a) Record of Presentation by Florida Po~er

Co~~ration ht Meet'ng of City Commission, Foz Meade, Flor'da,

Octobe 14, 1969" (see page 27 exchange where, because of terri-tor'al ag cement, .=-. Meade -is told they have no alternative'ut

Dll6

21-22

:lot'da Power Corporation)>

(b) Comber 15, 1969 memorandum mn R.L. Sirnons ta

Messrs Pere", Hines Shenk, et aL. re Pt. Meade C'ty Commission

meeting —purchase pzoposaL

(c) November 19, 1969 memorandum =on R.L. Simmons taMessrs. Pere", Hines, Shenk, et al.

(d) July 21, 1958 "Pt. Meade —Data Needed farPurchase or Lease Prapo~" ('PC 36))

(e) July 15, 1958 memorandum from G.P. Woodham za W.W.

Snow re:, Pt. Meade Contract (?C 35) ~

2. Nellbs~

(a) May 1, 1962 nenorandun mn Andrew R. Eines, Jr. taM". W.M. Picke t re: C'ty af Newberzy (PC 2166);

(b) May 7, 1962 nenorandun ~mn'.E. Milton ta E E.

Deazmin re: City of Newbe~ (PC 2170)

(c) May 4, 1967 memarandun from R.C. Roberts to A.R.

Hines, Jr. ze: Newbe~ (PC 2L62)

(d) October 16, 1964 nenorandun from R.C. Raber s taMr. E.E. Milton re Audit Repoz C'y of Newberry (PC 847);

(e) March 15, 1962 memorandum from W.M. P'ckett ta A.V.

Benson ze Town af Newbe~ (PC 2168)>

( ) March 20, 1962 menorandun from A. V. Benson ta W.M.

Pickett re Town of Newbe~g

(g) May 9, 1962 nemorandun f.on E.E. Deaznin ta A.V.

Bensen (PC 2169) g

(h) May 21, 1962 nenorandun from R.E. Milton ta E.E-

Deaznin ze Glen Smith, C'ty of Newberry (PC-2L65),"

(i) September 21, 1962 nenorandun on H.E. Miltan taDearnin re Town of Newbe~ —Change of Off'cials;

(g) October 21, L966 nemorandun from S.A. BrandworeR.C. )t:bezts're C'y of Newbe ~: Acquisition of Elec ic System

(PC 218)!

(k) October 18, 1966 nemorandun =on R.E. Milton ta E. E-

Dearnin re City of Newberzy (PC 219))

().) Septenbe" 20, 1965 menorandun from R.G. Roberts ta

A.V. Benson re C'y of Newbe zy (PC 2164).

D117

21 23

3. S t. Marks

(a) January 15, 1964 letter from M. Howard Williams,attorney for the Town of St. Marks to Hon. J.E. Teague, J. ~

Mayoz, City of Tallahassee.

4. alaobua

(a) July L956 letter confi~ing pu hase pzoposaL (PC

192) )

(b) March 3.0, 1956 'Study of Municipal ELectzic UtilityOperations, Alachua Florida" (PC 483))

(c) March 28, 1956 memorandum ~m Dick W. Judy to W.W.

Wolff re City of Alachua Elec -ic Utility Faculties (PC 484);5. ~sabr ('du adddaiou aa doouoeo a adrod above)

(a) November 22, 1955 letter from W.W. Wolff to City4

Council (PC 1965)

(b) June Ll, 1958 memorandum ~m W.W. Snow to H.K.

McKean re possible new load in Desoto City Substation (PC 995) g

(c) September 4, 1958 memorandum ~m H.K. McRean'o

W.WE Snow (PC 992)J

(d) March 14, 1960 letter from J. S. Gzacy to K.

Fenderson, Sebring Utilities Commission (PC 1985) g

(e) April 25, 1960 letter from Elgin Bay3.ess, Chairman

Sebring Utilities Commission to J.B. Gracy (PC 1981)g

(f) Draft FPC letter to Mayor and City Couv~il (PC

3.986) summazising FPC takeover effor sg

(g) June 20, 1961 letter from John G. Gravlee to Mayor

and C'y Council < urging takeover consideration and summarising

past correspondence (listed below];

(i) Letter February L2, L959 to Hon. Mayor and City4

Council, City of Sebring 'wm W.J. Clapp making the f'zst formaL

puzc ha se offer.

()) tet er March 4, 1959 from Jack R. Stzoup CityClerk, City of Sebring to W.J. Clapp stating the offer had been

referred to Sebr'ng Utili ies Commission with whom any fuztheznegot'at'ons should be made.

(k) letter May 18, 1959 fzom E.O. Hun, Cha<rman

Sebr<ng U ilit'es Commission to George Woodham advising tha the

Utilities Commission wouLd not be interested in the Companyes

D118

21 24

offer.(1) Letter Hay 26, 1959 from W.W. Wolff to Eon. H.E.

Pillinger, Chairman City Coutail, re-subm'tting the Company's

offer and invit'ng Council to a meeting in St. Petersburg.

(m) Letter )(arch 14, 1960 from J.S. Gzacy to Sebring

Utilities Commission referring to a conferer e held on December

10, 1959, advising that the contemplated lease proposal had rotbeen found practical and tendering an of er to purchase

$ 3,000i000.

(n) Letter April 5, ).960 from F. Elgin Bayless,

Chaiman Sebzing Utilities Commission to J.S. Cracy stating thatthe Commission could not recommend «the sale of the properties at«this time

(o) Letter Ap il 18, 1960 rom J.S. Cracy to F. Elgin

'ayless, Chairman Sebr'ng Utit.ities Commission acknowledging his

letter of April 5, 1960 expressing the hope that the ph ase "at

this time" indicates they would consider the Company's of ez itheir expected FeasQility Repor is unfavorable to steam

installation, and inviting furthe» con"erences.

(p) Letter April 25, ).960 from F. Elgin Bayless,

Chairman Sebring Utili.ties Commission to J.S. Gzacy acknowledging

his Letter of April ).8, 1960 stating Mt the Commission is not

intezested in further discussion of the sale of the plant.

(q) Letter May 26, 1960 from John C. Gzavlee to Sebring

C'ty Council extending invitation for the Cour-"4 to be gues s ofthe Company for a St. Petersburg t"ip on June 8, 1960.

(z) Letter May 31, 1960 from Jack B. St"oup, City CLerk

of Sebzing «to John C. Cravlee advising «~t the Council will mtbe aht.e to make the visit to St. Petersburg.

(s) Letter May 31, 1960 Nayoz J.D. Bunt to John Gravlee

advising that he wilL not be able to make the t»ip.

(t) Letter June 17, 1960 to John G. Czavlee to Sebring

C'ty Council acknowledging Council's letter of Key 31, 1960

referring to rejection of Company' offer by,Ut'lities Commission

and asking fo" i s re-consideration by City Council and

zecuesting an opportunity to discuss the subject with the CityCour@'

D119

21-25

(u) Letter Julv 14, 1960 from J.S. Cracy to P. ElginBayless, Chai~n Sebring UtilLties C"mm'ssion informing him of a

new plan to spread purchase payments ove a period of "irty to

sixty years and renewing Company's of er e purchase. This fivepage let er details cash and other benefi s to the C'y as a

result of purchase offera Attached to letter is ccmputation ofestimated f=anchise tax benefits.

( v) Le ttez August 12, 1960 from P. Elg Ln Bayle ss,Chairman Sebz'inq Utilities Commission to J.S. Oracy adv'sing thatCity Council had considered proposal contained in letter of July14, 1960 and decided to decline said offe

(w) July 12, 1961 memorandum rom R.R. Snow toA.V.'enson

re C'ty of Sebring (PC 1990)g

(x) September-13, 1963 lette om M.J. Clapp to Joseph

D. Macbeth (PC 2070))

(y) September 16, 1963 let er from M.J. Clapp to JosephI

O. Macbeth (PC 2071))

( ) October 15, 1963 memorandum =om John Q. Gravlee to

Andre~ Hines, Jr. (PC 2072)

Zn addition to attempts to take over Cities, other municipalsystems which Plorida Power sought to take over i@eluded

Bushnell, Lake Helen, Williston, and Rauchula.'1. Bushnell

(a) November 10, 1966 memorandum from E.E. Dearmin to

A.H., Hines, Jr. re Bushnell (PC 374))

(b) December 21, 1966 memorandum irom E.E. Dearmin tofile re meeting —City of Bushnell; December 13, 1966 (PC 199);

(c) January 6, 1967 memorandum from D.E. Merlini Jr toE.E. Dearmin re City of Bushnell (PC 198))

(d) January 19, 1967 memorandum from D.F. Melin, Jr. to

E.E. Dearmin re CLty of Bushnell (PC 2775) i

2. Lake Helen (see also documents cited above)

(a) Julv 19, 1965 memorandum from O. R. Martin to W.H..

Snow (PC 915),

3. uauuaula

(a) 'Resolution adopted by Board of Directors atRegular Meeting held June 16, loan" iPC 1715);

D120

21-2 6

(b) Juiv 12, i961 nenorandun froc 5 R. ~wKean to W J

C'p (PC 2041) g

(c) Septecber 26, 1958 cecoranduc free W.C. Sch"oepe to

W.J. Clapp re purchase of Ci"y ot Wauchula property (PC 2009);

Cd)

W.W. Wolff re

2050)

Deceiver 19>1958 nenorandun on John Q. Gravlee to

City of Wauchula: Suggested Plan of Procedure (PC

(e) October 13, 1958 letter from W.J. Clapp to Mayor

and City Counc& (PC 2011)

4 ~ Williston

(a) 'City of Wtlliston —Distribution Purchase

Proposal and Franchise" March 9, 1965 (PC 1888);

(b) 'City of Williston Survey of Elect=ic UtilityCperations florida Power Corporation Conptroller's Departnent,

February 26, 1961 (PC 879)

D121—I

FEQ.iiOA FOKV -:~ ". LiG. i7 COi.l?/ii<YINTER OffICK CQRRKSPCNOENC«s

r . r 'r o

gg '~ ~ h«7 ~

~ ~ ~ ~ « ~ A«»«»t p

O«DCo «Q«««ee

I.yg*ylett g t a 4Ct '0 1 a

~eAe 4 ~ 'ld «» «o -'I..~3cocci to (gee Qe1 CW)

MC ~ ~lt«S» S»SZ1 " Pcwe= Ge.".e=zJ'".. Dace COI -. v

o h rt~ 7» «4 re 4Ass ~ e teQ«oct h 447

e ~Seas CP»» « ~

r7 i 1 ««th JL4~ eto»««Vi ~

«o h»»C Qt ee CPelCCttlP ~ L.~

g) oh «ee o»««»««e

CCI"1 «V ~he«C«W«oheC +l~ »oA~ 8-lZ was- d. SpCSZ'la~=zlxea -.c -~e =-:~ (c~—-

»'h st+»et e 1 s»»4» t «Jse J t J'44»C» eeoc«oe «««~ I»S a ««»»««C««» te~o « i'e« t«e««

(p ) h oh ~«Q C«a«p JS «ha J»«pt ets«Caetsee7 JC«gl ~J()) «te«oeh 75e»CWa«4«ee«A~eat «Jot»qgts~steIa««Z JC» g, pet J

e t hJste J ttgctt 1 g C«Va«J'lta ~7»C» Js««S p«A Cg»gt Jt C«SC= -- Z== = .-'..C, " J"av We a "'Se n:CC SS- '-CCa=, Wa,

e>C ««» »C» 'C C ««Z»et C S«Pee Ph Caoo «o«eZC» W» 2 «oee e

e ~ ~ ~SaS 'C Wa ~~ 5 CC C»ia C ~ia Z CVa t ttC CS~ ~ t ~5 ~ eC Z ZV5, C= C ~se ~ WC 2 C C'-o ZC 4&iLa'1 4. 2 '

~ «h 4 4 S» i ««4 «sS JS C Cgt«ctoS««t»4 o5, J~t«( ' J t ««C«J'5«h 4 'h sp« 7»o et««hs «7« l 4r T%tf h»esyhets ««« teeett» 8 see7»«see J

~ t4 Ca e'e««»» ee 4to«l«»ee ««te«o ee«» C««Z« ~tLe «e~

'h sg ht ~ ee sre«o «4 7 4 ' Jz«eos «rich Plo rs C «ettr e-7 1 J grteeet«ste«h ««««o 1CLe «» ~«»o

o -ha SWteClA«

to 4 egctr 1 C~ 7 J ee«e

~e«g«e«\e»v eW ~

Jrttteh'et ~ ~ JQ 4 t«JeeA stlo~

«e Jhs»et»7 teS~ ~ ee

e t «4 t«hs )to to 4le4 e a «e «Q ew C ~ l«oe»4«Jeo eeC e «7 Ji «eoe» ~ te e «e«»

==,zcz c= ~ca c .".ve=sz "

z sa c c a z M. 'h « ~ ~eg '-ase ..ac «-a 'c"s (z =zcaec) .

V'ce P=as'cm

»» ~ 5»

~ 'o e« ~

(CcpJ s 1 C ~ 4 ~ 4 ~

» ~ Ae~ c'.".zh. H.

«tteo t '4tte«««he ««»ZaCC JtR

C. CCCk~e 4 ~

DG.

~i. C

SCe» C»BJ aweCCCR, 4=.

acz

Dl22

G~ ev r«o «qe«4 01 oe»v«11»

I

o»A(( 1 ~ ~ ere «v«o '00 el''loo ~ ~ ei 1 «V» e.eo g»«

01 «» 0 ~ ~eo eh v 0 ~ 1»

""c=e s'-.q '"." = s~ 's h ".q r.'sphayeC hv ~dc ~ yaw=.= .". s

«0 =""= ss'.-.= sv« 'P. "as as a==@sec "d c'specs'"g

..4 C S d - dceSS g Ca«he d Sev +V 8 S CS«00 > V»eo «01 1 ir»08»«a 111

s . > c ~"s ' e @as

\ 0

» 1 » eo 0VV «V« ~

0 0»« ~ ooe«o»00~ 00 ee

S0v=aL 'dca'dve=. e."."s have sar.-.". =-< '-vol~0>=.='d

7 1 A ~ eas'r00»«QC055 0»rv So 540~»o t 4 0 /0 0 ~ odgo . P ~ 0 «leo«»»

v«0 «0«0+0 «raw» 0 Qdgo»JsoP, S «Ae 0 dgeh cd» Q 0 PS dP a SVS4zg<

'100S«00 C»

'W « ~I C«w <lee~«S 0 0 S00%»00 >ro ~Or««esto 0 Jov«v Cv v«eo» vv«S a» S ~w»oog eev» «leo v»av» rr» «0

He ore l

\» Qg +»« ~ 0»vre»» ~0 «»v«V% 10'» ee«V 4 «00 «oovv» ee»«aro»voo t 'eee

~ +Voe ~ »» e«0 >C«oo» 0» P«ro» «ooVv»00 eo 1 ~

V» 0' 0

vee« ~ » F~»««aC v»voo C» CCw vv> ~ «»»S 0 »Co ooag

~ 0 ~0

0 C ~»»»» 0 «S ~

0 ~ ~ e««0~ «+ 0

««~eo» « ~ y»«oooo Ck«~Vv»» » OOS4» «OS«+t~«os Qg ~%+) PVO tg Coo~co»a+0

«0 ro»«« ~ re 1 e J~ ~

S '«»«ee ~0 C ~ 1 e sd~" c

0V» «n«0«ee ~ ~ 01 «ee ri «0« ~ ~«r 0 ««4«oal «» 10 10 «0 lo» ~o«»Orozco '.g g 4A«»««+1 4 5 A i 0r»0» vv o»0 v~» «v» v«v «» v»»«

~ ~~ ~ e»0 «»00 C000 ~ oo«, 000~0«L0 v 0 0 ~ ~

' oaS0e ==CCe~=".C.

ro» 'a 0 10«»» 0» ~ «1 oorr Je e«0p lo0 eeo 1 d

~ ~;=". c="a "e=.e=a" d."..

D123—

0

~ ~ '1 ~ld tQ ~ aoa ~ r»r ra ~

1 «at vq ~ ~ «» S

\ 'rr ~ ~ r ~ 1»

~ ~ r' qoaaaol oolcti « ~ to 1 t'»oo~ ~ rerr 1 \1»rv»rr»Sr»r» I»»oaS Ov»se «2 v»ioeaao oay»ea rs? Z P

1 r v «1 'ZS w» C»S'QCS2« a lo» otto»tt > t aaI ~-C(. C r v 1

o1

S 1 aO ~ ~1 'v It ao p. ao»O»1 <O «a» 8 '» le» «lo pd" eoo ge.".e=Z"'Cr. ZC' ''es

t 'tt «11 aa ~ » ao ~»o a'» ao»»eo r ~

~t») t ot o~«eat o cop 'oo

LESLY o' svs ie«

-"vd=dg . SvS~ ~~Caao lrvC» S

~ '4 t' o a~1 ~Ir» aoae»A 1&str»«»»o» O'a»»» r» v»»» ae»»droC at oa g o ao S e»»

Ccrc.e.".Se= cac''".~ svs =4 ~ W» e ea»Or» oia«

.| e..e=z == a".c exc'" = cd==-OLs

~ ~

SVS»

c rata ~ «1 te a»'«o 7'» tvo«o»Z+at lov +ho '»ooooo C a gZ1 l V»Cf »olr

'o»» e» e PI 'S r~o L S CU~C wo «ag«C»~~o 1 e <at» o p @<a

. Oaoier o» e r e p

oaa g»aa ~ tao «»«yloao a ol »oo Iel»e eo»«» eg f v»»»a N B~Q / o

»«oo OA +o»

ra~e o r 4 v~ r e

'o ~ ~1 ~«+r Saoo yor aaatao1 Q ge S»aoat @~a'4 4 1 qO «g~ei 4 «z»

C rV o «b~ ~aoaa««y «os Zeo«»Za l V tgt @san Zalea»para ggts

~ ' var» pr aao ) r aa r ~ VS I ~ ~ e CCS» '5

pv»» y v ae ~ ayv e r r» ~le at ~ air 1 aa»'r o~t ~ az r roo »ao» ' 'Z1 t <ep < S «CS> agdael g «e a pere»p ~eR

I't ~ VOA1 or <'aa Ora» o & v»Ma ~

;a qo»e

r~ v» ao lo o 1 p S4 p» J C ao» l»par Jo «»

loe a»

e ~ ~ e ~ 1 e

+ ht ~ aI voQ .r

e laoirk ~ v vhvh ~

\ter h r 't I ha~ Ivgvw ~ rot

»I ~ q«o « '0 e «tlvrt»11 ov L haWoo 4o ~ I g Ior «v 11 ~ r t\»» vvv 1 «v Ce ~

v S h «Qt Q vgo~ ~ V ~ VV V«

'1 i a««Ls7«ac « ~ eae V ~ 1 N v LC eeCC p ~l7$ 1 0 Lqt Q. Loca

5 o ~

~e ~ 1«ha'g s« r ~ 1 v ~

Sees«a» 5 o«'o vo»~ »vv ~ vv

~ o 5 r'7 ''L71 c «'« tr tte«t e 1 re 1 c L 0 C«erich 5 are+ ? 5 Qt7Lrzaa«hv o v vo» v S»voo Cvot~» vote~vv trtv v» v~o Io

«ee» L»7 ~Ivl 1» vv VV V vor~ ~ ~ ~q c laLe sore»eew 1 «e eh7 j w Le aIC45 v v vttvv» @over»v»VZ»~e vs ~

54 CVC» . C . SPCU i 7 '1 vl ae»e~aooL«CC»» CvVV»raver v

~ ~

L«r yCre»O LQSL Qg Irtv ~oseo«v vo» o

~ C 'h«V~ oV

' »»7 1»at ~ ~

S o 1 74 re«$ ~ o Lh

vo o

I»ag h»oo 4 ~ e 1 1+[

1 1 ha»e» Creel Je»Z«J «eos

0=~=5.C.«. C~=Z~ P~C= V'"C,Sha~'eoho«

V«» o(

'r«1 ~ «A h \ ~oooo «oo» »vers w v L«a «» rereC V J»gs e ooeeeL

\ ~ ~\1\ toto 1v»v 1 ~

~ ~

P5 '7ro oa 1 'h «Store«7 ro «'«5 Shth'Q CC v? —'o .h PCW8 ZBSC»avs (

«1 Ia 'vv tt haa»o»«ga»a»7 )f ~r »tho re aaooe rot«Ve ~ ~ a»V vtA Ct Lath»f 7»«e»or2 ov v~sv»~

«\ ~«aro7 VJ ' toth«Je»h «J»»«rro

~ eo r»v ~ v v ~ «V«VO'oV oe Loa«« ')C v Z VZ"La=5 Z.= "C= C"5

«o7 « Ceo«areo v So P- 1 7 C=CC; =aav ZSa S" .C .". eCC.".C==C

Sh» ~ ~o«5«D ~

D125

ov oo ~ oo ~ o ~ ~ ~ «v ~ oooo vee« ~ vea ~ «ceo« l ~ I»e«>hot'e''gC'» h) «1llC e I > 8 ) 'f»')»C

~ A@at ~ac««oa e4e» 'Qe ~ a» ' 0 ao v«Qa «Vv aa «o», I ~ )I» Pe)lee

aa I h oh»» ' ~ ~ o ~ »hh o)~ e ~:» ~ ~ 'la ~ ~ '> «ee A ~

' 'e ~ «7 sat oe.5'e C e.5 Q 7 ovo«CQSO Co a «O b aeC p-atts ~

~ ~ a o h a «h5'=c: ~.i; 5 c -.."'Qt:5 ) 0: ~, Q)Q ps . Q ..QL&c '=b'Nec---Q'5 =cc8wa c: hcacc"5 co".." use", cooke"..Sc" cQOL'".5

syst — ( !so=c :=tsh -a z= coo '"..5 =ewe=5) focLt."'.".5 oakeop wa=c=~ ~ ~ ~ ~ ee ~

SV5«C) aoo «oooo aC ai~aoooa 's gee'e'««Q5C» «o'QQ '»ed) sea- 4' >ecvC

Qf o ) Voo «a5C a tyioai o ) CCCa) ) 5geoaeoo bVS) powe t »hlis CQ« C

«»j reea oh>aqehoea»» See o««a o o a

t N» ~~ Cct . i),vo o C SP «..5 o o o C Was «C SCQVage ) Was ae P QCCSS 5)

3. A .'L' Qcwc". -Q be soopL'c" Q Cot=ad a= 5"a-.~8 gove=c" cs.~ ~

e ~ cs»"c t bc ct? bas 5 ot C/P3~' 5" tea " cc~ " ot'5 " aooa«C a6) A 4 A Q VZ A QEL 5 CCtda

5 o~e) >) be o»QV4 54 Cps CO» so ~y Ct aLe e»a (5< 1 e aee) Ca Q e»)

Qaa 7OWC. RCSot =Ca to St.=PL- Coe=a-'"" aa" — '""maaCC CQS"S ax C&=«CC»» Z e CS ~

~e e w"'ave -" be age~a-S CQOCC=..:„~ CCC --..5 Of S-Ca-,b cd% ) etc ~ a'T 't):.c=e -".-'w;e:Q oc ag=c~z=as cot:cc»a .".g ava=LaofL'~ c= scc».

z 'pcss b' Qs a ]"5 c 5 QT poo ava ab

9 v~ "~ ~ ~oc ct ages oo «hc b~e o av.

~ h'd a LOQ5»« = Lease Q" "e =a:od t~e c -bae pta="g.a«S 4 aootS 5 > SP aoe « oh M~S ~ e oac»»»«»+CS ~

)»ac ~

a~ e )a o>

« /««) e

c'

'4~ o . ao), +) «ca» < J»o»o «o>h >a ea»» « ~coo ' h o>as

~ »oat ea eoaee> eSca o» aae «ae ooaaS«»o Qtta vo \ ra~ oae o» o Pav bP a»a ad» o~v C Q Che 5 Ca P»

«Cpa'ea«o Co t»e Ca o4 CQS Qltts «C»CS

ac& =Q" No. oO«above.

a o := '5 pcss."= c a s" t."w= t)e co>SL» cottt=ac" w=' ZLack CLawson m"" =ate a=='-'.".:a';. -'.".e c.=oo;.e PLY-, a5a'- rc-. a" ~~C'-'Ve.

~ ~ e 7««e7ea ~

+h«ho «ooe'«o 'ho ho >ooAeo a a ' «Oeoea o~ ~ e o4 ~ ~ ~ ~ «4 oo ~~ » v«v 5 o o o o ~

=—7cweaa 7CSCO-"~ C PowC» c

a>a vao «e ~aat~ \ «««v«3 ~

W. ~

QC Cv» e;««OS ) SCOO C be C ~ Sit( Co td as= pa:)=c"t s';.Q ei be bascc 4;. c~a= '"'e baseLoac

g e ~ Ia5«CSS os 'oco o» 5«»CWOee 'e ao coca% ' L ~o~ ~

~ ~

D126

\ ~ ~ Q g» i oci«ad gQ 5 gg g»oo h cas and gcnc-3 c'n azpans 'n p jeans

i«« lo«- sp '4.s g«48+»s gn 3dd~ «aeons~ VOQO .'b oc'o 8 oz coIb«nad~»»

~ ~ ~ ~ «s i P i ~ ~ 4 «»C»««4 «» f»4 1 0 ba segng«ad bV ™o» be «een ncaa

'«s va» '5 ~~ yacc

«"5«og «+8 dig «d «g o Shoo' ~ - » 5 acc ve

~ ~ '», ~ «s «g»or»ii »»»VC« Si »» iiac~ieds Snch 3S COSY )vs»» viiC»cni4 's t ««'«'«y '«» jg vv ~ »vii ii s eCt?

""'-s a»a '8' " 5'g-e~ and Spec'='c cc be=. soak as che

~ «Ti~ »I ~

Sech =oa'as="'ac'on =achcds 3"d wge coal buzz'"g bo~ =s ~a"d

8' as c che cccst~oc on cc so~ d '»~iiscei Socket gas» csc on !«ocasM

3=8 3'so va=. 8 ""- daocsbla c- a 8"g:acove~ 8==- sevare. . d'm 'ons

4«csc»c ~ ag acsd 5 jsca&+ o» «8. s»s chic»cn psocess c d p«asa c cac ino og' «»»»4 p, ri», g»s»e»S«4»n Og, J»»«vg h4»+4y des4»nO>a iii«an aC«pc+<»

C » 4 ~ i ski~ » 9 ~

»ada v«" " 5 3 pease c 35 o bids b'f pz «inca conc sc«ocs

and "!ac@ca -.asc-"ca ". cove .! sc'''s o= " '~soosa o 'he

ccc==y'5 5 ''"'esca. ~ase b'ds '=oo'd be based on a Za pea= co"c=acc and

Ac Lapse»»o o chef coL'»cs 4o« i

ga~gc s 5 ax xva cc assed 5 3»c8 85c A ~is cue of ~soos

>5 2»

8 5~ 8 8 ~ Cs een o ~ck oc ' 85 bv o~va

~ 4»»»» 44» 4»»Sii sC Vai Z 8 Seve at 5 ~SC

~ ««'4»i» i» i ia s «g s4, Ol 3 r 858 / !+» «»» !a»~S err "g day- es 4"»Vs» « is +»s»»c sS s

~.. ~ » 4g-. « .:asc 4'soosaL Sysc~™.»«i»a« y i««e i aca» 3 '0'pl «d Os On '«P«n "Ci™e VZSCs

»4 is» 54 3 4«««sa '«'»»c»«»c«~ V S V hnd ac .-he sa-e C'-e sswb3.'sh

's»» ~ p « «»~ I !Vl«»» ~ ~ Vii i»C»»C4»Q cc «ace c «ctc« 'P»«C»c»QIC»o.i »is scen

D127

~ ~ o 0 ~~ w s ~ . I q,as eo ~ ~ 4gc~ & Al en> ~ace» ni cansulccn vi h e::pe.icnce

ccs .c ' ""'c"0 ~'.e " ~" '.Us consul( nc old bc used

".d Race "--a"~o:-che-a"-" scudv (a'-eddy czca1,eced) ca

~ .="-'.".= -he=e:ccc=cndccians on ca".parcae ape".caches c"ted be ~de. (fc

.':he=:ceo=end .hcc:hese ".eca=..endccians be cavy eced by June I.,

:a a''c - -: " ~nage™ c decisions be=a e che Dade Cauncy

~ ~~ 0

~ ~

D128

l 4 I » ~ 4 ~ o tf ~ ~ 'o I )vs ~ ') I Vv&')ho ~ o tl o3 4 I) 4( '(v)c')ta)COI;o v

( 'I II)t~

Oo fl

~ tl «t )»or» )

( oh»lvt TO ll» i (h « l«) 1 I l(o (l«(oh 1 ()l' ~ v '

4~ ~ ~ ~

o ~ I

)I»~ ~

) (»L)»~ » ~

l.f»L'

o

~ oo 4 ~

Z. C.) ~ rl~'l o ~

J'. L.)Z. Z.

«4»o vote

««AV +VV»

I ~ 0 .«sa ~ t«r) « l« ~ «avl»ece» ho hs 9. ~ chre Can I y Q )ce+4»i »4 4 gvl'".iS

'."."..'cri4cS -';-e el Sa C an raC+«Ve~) Ir= =44. " I Alsra«c .; ' «»»'«4»»4 «««ri)h) 4 v vr' (oi» i(htc 4 »ac Cl~ r««aaao e) ) C 4«hQvv v«o 4 Zo C 4 Q» ~ v ~»4

)oo ~ t ~ '« '4 II ho «)o 4«8' v QL CZ vole SQ~C «~v o

-5 ' " «'I 0 '~e C SC1 4 ' e Q» VQ«e» > e»4«Z 4 CP +Ma pCD Ved Cr de~«O»A 4 ~ 4"" ''-'-.':: '" -'h4;. rs =ec'z n» vzriaus =~csin s Iszve c" ie" 'c'es an tvc

ao5-'~'-. S"-e '-''"". ".miec:5 z )'"6 wy. ~"e =as nc b'c Qne 's ""e.-. "" =.SC:=iC "W„'CCV '" Sv. LC-'S;-'..e e vrCCDSSe" Calid "Vhsae 'S hei~» VSeC ZS

' 4( ~4 5'- - s. «1 "e3. 4O Cav '» Qal'eX'e 4~( «nc ~o )4«A O«vo 5 ooar»vcde55 Qf, I 8 4Q Qrc 4 -er 4 -el g <)4(o

aoSC n 4Q ' Cia~~ lt"Ori 4»es C»u tGC irene~~ «4 vliC

a 4»t»t r«f 4 r ra(to ac»4»»l 4 >« t »ol 4+ +< o I~ (o»4'»1 4 tw r '«r 4 44o«ig4 'C s v C v 5 VV ltv vv o Zv 'voto( v«» vs vv «o»v lt»»4 ~ 4»ovC '' CiCn ." .C )5 e ate SQJ. d '«~5 e rn 'C» 4 ng Z 5)t.)r' ' h h'I 4 «» c ««««4 ««A 4 ~c«rC ~ 4 04 «1 slsv» v'4 'v Svv vv \» dve v oe VV v»

'2 sr « ~ 'da 4 hr c ~ 4 r(ol4 stoa > 4+ c 4 c l h«h o'4o 4 4«4» rt II 4 h ~ 1~4 4»«44S» «occv54 (Ie CC ~ v voto v «lt S ~r 4 ~ e voo«v «I 4 4 4 o 4««v'"si'-'=n-.". =':.e -se a~ sa''" =4"".c ~ar valler 4-, ne~".'Qn. ne ne 0 "Q ="'-:e z

"Q "'"e ~ZAe C-"~- ~Q""Z'a» dCSr"4Z1 O~ SQ14C'. "h""4 (~' 4 ' J s

4» 4 o ~4 4»a»oo «4A a ra»0 ( al 1 1 r«tr ( 4» ~» o»«4(o ' ««1 rh>o4a») 4 4 v e ~j «e~ OVC 0 ~ s v Z»v C4»cc «vv '4«

r»~4 't,' >Orar ~4 4»«'li>J ~ lr co» A 4 ~ ««p~4 04Q a 4( '«C v 4 ' v avcrvev( sX aoL v ~ C 48 «4OPJ ~

4'va I 0 4 ~pal 'h«4( > a Cr««C J 4»4«i an «o te» +a l)vAe C g+) 5»»«CSZTav'4 4 ~ o 4~«~zto«s '«ca 4+ ~ ~ eel sect z 4+>aq 'ar»)oa C«e v 5 tv'r

4-(h h 4«Assi r I «4«««to 4 A «'»h»J 4 r4 «4 0 > 4 .»4» 4 Ia4Q ' e 4 . 4 e I. Q - i e s .c l C .~ j e se

54 s s 4» 4 SC 4<h c e sCel ll g 4 Cg Or 4)ge Sal 4 Q g~c te )he gsa)C () eySp ~

4 Zl Crrh 5 o 5 ~«AD re 4 4 .Ce O +4 "C «h 4 W CCes 4 L'SCr > hc >«<'«4 44(41 +'«4«+>att col A .«I ~ 4'1(c 4»A r»0~ ' '«4o» «w»» 4»444~ ve ) 4 n 4» 4 v«Q ««(- o» C 4 4( 4 v«o «Crv«I ~

o

»4 5 S 4'o 4 ~ e C» O '44 Z 4 CC,Z)44 Cr «4«4

4 4 4 >'( sr 4 C«tip,'«4(l) «4 '4'C» CC r «rp 1 ac~ o 'voo v «v~ ' 4 vv 4 VVV

vo»C «co«gk, As rroo ( r I 4 rot»ra« 44(i «4 AAD»««» oA v v v «e Cv~ov4 v 5»» sv 4» vi~

S ~ 4» «4 rh 4 44 0, «Ctl rp' «» h»»arar 4«ra > l«»Zv 4 4 \'v oo v 4v ) Z v v o(C 'vl(Z(t~ 4 a( c'. ~ s s ( S r 4«a (o«>'rave4 4 rc C o 54 s»~o

~ rv «») roo> 4 ~ ~O»4 v «v Co a(»4» « lta(I 'O'CC 1 -s=e..". "esCr,

de«44» I» arel»hv a ai arc'»Cve oo v )(IV v e-.QQ)C ae c=='etc~~ ~

2 PI real *, 4 2 . "2 '»SHY,. F 2 YCU)

Dl29

teVO«»ee1A»O» 1 « I 8 iooo ~ »t« ~~ I» o»ooo vto 'hl «r»oov~ %g

"I ~ L c-.h ~S. ~ ~ I,I

4 . CO ~ ~ »»II 4 ~ IO q» ~ ~t t«oe»ce . «ITS i v~C."JQ Q

e,j,>5 I 'eo co e~, ~'o\ ~ 0 . ~ ~ »Q co t I ~ ce» Q

»»«< iree» «II% I ~<voce»g «~et «», p ~ II >ce,ceca»««g < p~ coe 7 4 >4 Cer~ a;. = '"c "'' " a c."-"~.'en af i..e ~...t

'~ t»»ce» l 0»t>.o««eiceC» ~««cer, II ' p»g g

'g

' ~ . ~

A '4«t~ «4» ~ »eo» 1 e'ocC -t ceya'« t» C leg C»»4 o(»oe p go1st V» ~o S» to ~

I»: 1 « «I ooooei'o c.'o ~ o ro»w«cagq y o»go» goo»rW ce ~ t» 'g»oit tpP,q ~ otoo» '

g4 'g I ye»o co@gooo~e» ~ i

st fp4~i t

o t «4\ ~

t

D3. 30

'Leo< c t io sP~~gr

; e i r.C '',f( P 8)'.--Wl($(.g)»+».v Ql. $ ) 44a15 f ~I.W~JlOO O''C»Y )()IC(C)l )Tl ~ ~ Lll)a$llo AOfll0$a J)l)I/))1 4II~ $ $ $ )C~ 1 Ol)I$OC)lC ~ )llIIIVI

$I l4 '4 l l' o(.v C ao o) t' t C gIl~

'' v;»I C»(ll»vlfvv'J . l va ~ lI' C Il0(ll'5 ){arch 30) 1966

Zlor id c P c<cr K Li h t C oaps ny, P, Ql Bo- 31003{i=', glor 'da 33101

l $ 4~vvc @lens

Sub acct: Proposed To lorida 'municipal:-o(",er Pool

De " ="nic:

~ice enclosed paper ras prese tcd by Hob 3atben of

P 7$'.. 3 {c and associates last srce{c at the I'lor$da

2 gicipa1 ()til'ties Msociation r:

etiam~

in Jacasou,illa,I

H,orida. IS you have not, aire dy rccc'vcd a copy of this

I $ 4 ~~ o ~

rcPorv -.hrou"i: soc'c oQxer source, I thougLIt you might be

e"cste i" looki@ 'ver and possibly ac>'n„some

repr»--s. 's .'is is hc oui» copy I r(as able to secure)

>$ $a la

~ I~ $~ ol

l ~ a ~ ~

j' gl ~ ~ rl~ Io

v ~ ~ ofII ~ ~VV ~ ~ I

I ~ould aoorec~'.e:ycu" rendu ning it to ae v:heaevcr you

I'r ~ ~) o$ r I$ r 'o$ $ raooA»»C vV ga»do))

I ».. ~ O»IO a»

I la»»~ I vo ~"

'l' $ 'p ~~ ~

I ~ ~I oova I

I ~

O ...) ~ 'll»~ o ~ ~ ~

»» 'Io» vv

AILIS-GiiliL~E."~

/j gpss~ g~ ( M ~ fCf (~)

oUv'1'"y Sales, '.{I e=$ brcach Office ~

~ ~II I

D131

\A»rr«e C I p»e t) g pw y)») ~

I tv', et r Creg st L gpgts'n o)OO ~

Coulc our System Sna "e L".:"e Benefits?

"~e stz 'cc~ )A«)C'+v»«er ~

1800 mcnaivztts - 1, S00, 000 f 'Lowatts! That is the approx~~ateczpzc.".y cwncd ard operated by r..unicipzl electric systcr..s in tlIe State ofT:"..'s is ...Qrc t!:an thc totz1 ins:allcd czoac'ty of zll of ~)Ie other municipal

cwned sys..—.. i.". "Ll cf the 17 states.cast o'ate Appalachian ~aountains.r« ~ ~ ~

Rat.'. " a star )in'o.. pa "sor., is"'t 't? But then so arc other co~-par'sons. =Qr exa —.. pie, this —...unic'pally-owned "-cncrating capacity of 1800 xepa-va::s 's a'.=:.os: Ro,o r.cate= tha"- s..e '.otai -'".s'aiiesi gene ati".gc.".apcci:y on the Fto--:='a o we= -Co=pe "a'='on sys:c; .it is 307o g"cate='than 'Ne totai cot.htned '"s".ailetic pac;:;.'f » 1cr.'dz Power Corpor atio= and GuU Power Cor..pany; it 14 approzi . -tclye=.a'Q "".c ." a'1 'nstaL'ed czoacity of "lo"ica Pov~er Corporat'on plus s boa =leo-::;" Cc—.=a""; 's 60~qy as great as 'xe 'nstallcd caoacipi o.. Ae entire "1o='d Pom-er znd L;-='t CQ.. pzny syste~; a=d fina11y, i. represents approx',aately 25~(o of the7,0GQ, 000 '.~)lctvz'.ts Qf instaL'cd capacity unce" al'ypes oi owne"sh.'p in the State cf~1 «1 «Ze

;foiv let us o"k, z. ~Ic capacity of exist nP inter-connectio.-.s aehveenz =.. ='". e':r'c syst ws in ' State of:-lo"'da. As of the erd of 1964:-lo 'da

~ ~ ')= Co=orz=on. ac 'ntcrcor".ec 'n- ~ es wi~ ne ~hbor'.-. zapa "lect=ac, "lo-a

ri"z Power zncr ~ .'-.'.=., z Qu) < Powc- Co. oany wit) over 1:00 mva o installed=z=zci:v, "'." s sc...e -'00 —.. vz of '-.tcrco.=ecting caoaci':- outside oi:1"e State a~el » e~-'.~0 .—..'a c= '".". =co" ct'n~ capac''.y wi..'". Orlando Utilit'es. Guh< 'Power 1:ad a 230.—..vz '-.: rconn c. ctn with:"lorid*Power Co "adoration and 4-".0 mva of '-.tercor .CC.-

~ ~ / Az" zc'=~ Q":side o >'tat . c.a...oa "lcc.=ic nac -'00 r.".va QI inte-.co-.=.ecting~ ~

-zz zc»iy wI..LQ ' Q~ve Co oc «t'0n anc 300 ~va ''tel » lc) «ga'I+o)&r z»~» Lip~et~ J» rg ~ s=-'-'s:2Q".—..~~':."."z¹>'--..'" ':.LQ'='ica'Pow'er arid "ig.".t 1»ad 770 =..va of i .terconnection

\ne.s.".Qcr'n~ =Loridz Power Co~oratIon.and Ta~.boa =lect= c systems InA 10 —...vz o: interconnect'ng czpac'ty wi:.. Or)a..do Ut "tIes and 1QO mvz

.ac;:sonv.'.. Bur.)Ig 1;6= ovc" 7, 000, 000, 000 kilotvatt ..Qutrs were t-ansferred)ver "".ese 'ntercor .cctions.

~ ~ ~Are '. e"e .'n'erco....ec" Qns Qctwccn —...un c ozi syste.—..s In one State of't'--"".'. 'z. 'Cs, «Ier zrc two - onc between L<;ssi.—.vne '.and S:. Cloud ard onc be«

:- c:-- and Vcro 3each. Iotzl .'nsta11cd capability? - less ~~an 10:-..va.A ~ s r ~ » ~ ~-'-'.—..'=:-. wcr .hc -.Q: . cncr"y tr"ns ers'dut;sng 1964? 5 dor.'t i .Qw, but obviously

: " "~ z - rA. v '.ns.:~- cz..t .t~sttr~ whcr co~o t red to e~);c totz1 Qr 1800 ~ "a»vates~g

t

~

~

C "C "Gtg»can«cg ter Q» Cvcee Ve'hC e CQIe~ ~ c«Cd 'tQ & 700 C z~ ~ ~ ~ ~«e CC Ca vZC'ty C .«ruS)VC Q» J DC)rSQnVII e c n» VrIZ.sco.WnICn C» raVC Ire

~ «Ar» Ar ~ » ~ » ~ ~ 1 ~ » e ~ ~ A,A iet« QIAs ~ A««)A 1Cv ~ ~ ~ r ~ veev ~ ~ re ~ ~ ~ rv C a «t ~ e r vtv»e

D132

~ ~tOi t~c twa ra~or ties bctwccn rum'c:pal systczrzs and thc oriva c

.s in:;-.c 5:8;c, n .—..clv,.Orlando a..d Zacksonvillc, ta my knowlcc.ge or y thc.'n.c:c" r".ccticns have been utili"cd an a <uil poo!in'" sis; that is for "Lc

c...er" ency, schcdulcc izLLcrchangc and economy cncrgy waiver~ 'lcs. Bur.'n~ 'l96-'.:hc nct energy transfcrrcd out of thc Orlando Utilit'cs System-.='old ".-.-'" cne or ..>are of thc sepaiate sclLcdules of their agrccr.-.ants with Fla-

~c ~ =ower az:d -i8'.".: and =.orida . ower Cozp oration totaled more than lZO, 000, 000'.awatz hours. Thc nct transfers between thc City oi Zacksonv.'lie and:"lorida Power

-:".: ~a.—..pany werc csscnt;a.ly =era.

a adc'c::, "sere ar 3 ot Ler int rear=.ections between ...unic pzls: .—..s and "".e pr'vat 'ly awr. d ut'.'es, nar. ci wl 'ch however, .o my knowledge,

=cn fa" ir~'n- "". Sc'"eduled ou~~ges. These are a 20, 000 kw tie be-":a"ah" ssee a c ='orida Power Corporatia"; a 000 kw "'e be<vee= View

.y=..a Zca '". and = ar'da -awe "and ig!:t Coz..pany; and a tic be>veen =omcstcad':-:.ar da ower anc. T 'ght Company, 'xe capaci+ of which am nat aware.

Vnat ~is al'oi's dowr. ta, gentlemen, is that as big as t'"e —...L::Lici-"==.'" business '. the State cf:-lorida is, i. 's not yct found a way whe=e

~ ~ ~

ar g.". —.. ". * cacpcr"=ian a=y s gr LLc?".t group of .=.unicipa s a e pool'r.g Meirrces .'.". order ta se re 'ower oawer od" ction casts far their resocc-'ve

:: —...s. '.'s se. a. condi"'ans, o course, is not peculiar to "lo"'da..l overstates .—..u"'Lcpal sys ...s a"c seeking ways a sharirg 'n "~e acne '." o

o

=ower -aaiin-. ~ he very,i le of hr'e Virri-s'alk "Tie or Dic" carries with]s ore~ant a" a= ~ "gs to ca~e L so~utLons are nat ~ou::d ve~ soon.

: —... 'wr.'c' sources we have prepa "cc a char: w."'c'= s a"..ached to 's pape" tha.ws '.= .'".'.s;ar.'"a'"'ercnce ..".:otal bus-bar pawe" cas between public ut'"cs

S..hlso, 'aased az ~~ LLia~anal Power curvey, we have shown=ra'. ": .'ar=c: " duc 'an '" -rivate ut.'litv oower production exocnses betweeni

azzd '..'".e year i98C. ~. 's chart sho~vs &at between.1950 and 1952 ~".ese two seg-i w i ~ 1 '::s c.::.e e. c.r c ut.'..':f '".dus "y .Lac ca —.. paraalc power p"oductLc",n'cas. S.,af ..* .. ~

~ '~ ..="'.8 per kwvh. Sy . $ 960 -,62,'.1a"'.j;c>y'~~-.oL'.gh,t'ae .benefi'ts af scale 'as'sa-""

'"-'i-'-'.".'',.c'='"aol '";8', ";e p" ..'.c u'tzl"~cs are aale to shaw almost a naif z..i'lLrc;.='a': a'l.—..as: 0;e lower produc" az: cos'.. inc projections ta 1980 show "".e

~ ~ i ~ i t ~ tR z» zLLL v a»s ~ xi+ r ca st ecuczng ta apprai 'ma t y 0 ~ 08 irnzlls pe» <wh. Lt L sc-'s z.'-.at thc "ower product.'an e..:pensc by l900 af tne public utilLt' in ~Me

~ I ~ ~ ~'5 ' c pc a g f ain L aQL 'ty o zz c wa/8 'to SM c Ln t e acne sa'c ~o~'s

~ $ f AAPl ~I

~ l» ~ ~ ~ ~ ~ ~~ ~ ra $ , ~ .„ 'la»ada

~ +L a ~ ~ +et rt ~ ~ ~ ~ji~ vtggh» s t ~

Tsi ~ sp»osC»e ~ i» ~ oiisio.ic g

i ~ c onc aasa u c ) esSent'al Y y to rn'r.'c's

high voltage r;n —...issionI V~ ithoutaf hi~;". vo'lt c trans-..>ission, no amount

Dl33

3

oz oat~ cr poo.lng ."s po "sible bc'~vccn r.".unicipa. systcrns. riow much big.l volta cx» s 'Sszo ' p c v c c lu ic chili sys ac?2is Ln thc State oz "lori43 6 c-

sen.'y c.a.'.—.. ci'.her as the'.r own o" as thc.'" right to usc. - None! Oh, su"c,rc ".-c trans-...lssion ines "or.. soz..e of you= rn jo" generating plants Lo you=

'loa c nters and in anc a=ound you= '==.mediate "c=vice a "eas, 'out 1 an talking~ e ~ fabout n.'g.". vo.'.agc '.:ans —... ssion 'nes .nte.connecting ...a~or n~unic~pal or otne"

svs.c ..s in '~e State.

The iha~onal ower Su=vcy cc".tainly recogni"cd.thc l~po-.:anceo...'~.'". vo 'zagc and ex.=a i igh voltage t"ansmission lines in establish..'ng its goals.'o= "ac e'. ct-.'c ut.'1.'ty '"cus:ry ta=ou~hout the United States bctweer; now and 1980..:.'s cues cn o':hat he.loSO transr.~ssion g"ids are should look, '. ".cce'ved

a"d cc:a.".c ': dy by '.. c special acvisory cowittccs. Vfe have -cp"oducedand a::ached:o this pa=er a copy oi th nap which appca "ed in the i4ationa.'owerSu"v y s'w.'"g potcn ia h'gh voltage an ext a high voltage lines in the Un'tedStz: s by 19SQ, The location and si c of these 1'"es was of cou"se planned fn ac-

~ ~

c rcance w'.''" cad .'.". o=matlon sub~t ea to and analy"cd oy the co~-'ttees. Al-:hou=h '-.c cwnership o':hose 1'. s, as shown on the attached map, is not indicated,

e'y anycne .'n his =oo~ tocay'o point "o any of the lines shown io" ice State ofand sa~., 'hc "e is one o: the majo.".t=ans.. 'ssion lines which ou" g".oup

'I

.".as ann c to —.. cc. its lo g- ange powe" supply proble™s."

The "cason, oi cou=se, 's that you= g"''oup, like ..any ot c".;::ci-'=cu=s

'"."ou"-'.".oL" tn v"'ted States, nad nct cevcloped any long-range powe=nc "a.'c; a".'"an".=. ssions sane...es at the t'ae wncn t"e hat.'onal Power Su~ ey

"«.as e'n" co.—..=."e . ~z":e so rna=y other —~~'cital systems too ..any of the in-c:-'""a'c—~e-s he" e today have been incc"po "ating 196= equip...ent devclopr.".ents.'.".:" y" = c s:r':.'on systc™s and on you= own '"dividual ~ez crating olants, bt .

\you .".avc been a=ply.'.a~~ . i35 vintage C~'.=Eng by opcrati~~ you.» svste...s isolated" '".c" .—..aicr;..unici=aland arivatcly ownc" syste...s withi= the State. You

\s;.—..= v;.. st .nd ways to rapic'y alte" this pa..e

etc'i<~v; '...'5 -a'atte= o'f'r.".u"icipal powc" pooling has been ltickcd~ ~ ~At M ~ t% ~a"" .-."' "g en gh now, us'sg a so"t oz "chzc!.en ana eg--" philosophy, .hat z feel

.c so-'u'c" 5 "rc a.'rcacy vv thin you= grasp ." you" leade rsh' will only ."each ou:an=':ie togc hcr:hc loose ends. AVnat T ~can is, for thc last five y a "s engi. ec "shave c .". saying "boy, 2 wish the at:orneys an'hc ba."ke "s cou'd wo "k out soncv"ay 'v.".c" '.ha: gro p c" ld form a nunicipal poivcr drool, because we could sure-"""-'=" ".ans to save '.c... a lot of ...oncy" l At thc sa...e tiz..c thc atto."ncys had

ccn ~ s.'-. ng '.::at:.-.c engineers "nc thc oa: 'iers could gct together so that they--"'--"-'o'. rc .::c 'cga'roo"e.—..s, w'."'ic perhaps thc 'nkc" .=:orc than anybody c.'sc

i\/\A t c a ww em e l~.-~='"".-. w'.shing:hat "".c a::or::eys and thc en"'...e rs could carne u~ with fcasiblc

c

c'c ~ A'..c ans c'c .. '. g " ''„al ~c;vc pools so ha. thc col lc ci ance thc~n~'z'I

p .o'.c:ico oriana c" na s «ccn r«c,izng p»a oraln t y' to 'v 'o ocuccs s cv $ s rn "c a" sc all t..c c..=in crs, a ~ o ncyQ and bankers he

D134

a:.i;s 1 say t.'.-::.';e other Lc"ows prob)cr.-.s arc too big t.o overcome. Vc}), dur ngpas: y ar ...Qrc and .—..orc attorneys and ba."t.ers have been te.)ing wc that "icy

.!nk::-.ey can nd t'. so.".'Cns to inc'r problems 'f thc engineers wi} lay before"-.e !n::es:cd parties potent' pl ns which can bc studied, .—..Qdificdand finally dc-v .'Oped in:Q =rac.ica, casib)e p)ans for gcncra~~on and transr."'ssion to serve w n'-

'.'pa)'oacs.

A X'."X:C"~A~ PO'i":-R POOL:-OB. L 'RIDA

E a=.1 not p" pared tocay, nor wou}d l cve- atte...pt, to stand bcforc' " .'y out fo vou cop c SOPle p e conceLvcd pLan o'ene Lon and

:rans.":.'-s Qn:Q serve your Long-range power needs. ivor am } going to st:and up:".e= "and te)L yc" t..at if you go a}1ead wit's such a orc-concc'vcd pla11, your ~d:vidua}pow ." costs are pc''"g to be ~".Ls a .Qun pe" mv. or that ar.".Qunt pc" kw)1. Zt is, after

yo"r rcspons.'b''ty to guide and d'rect such r..ajor p}annirg ac.iv'ty beca" se it;s yc " '".c'vi" a'ystc...s with 'weir own 'nd vidual needs a"d characte is"'cs '".aare:Q " a 'ected by suc'}~ate Q}ans.

. Some of you =..ay recall when L add"essed this group two years ago-„'".a: 'r""ec "-." for—...a"o" of a Qc=a"ent overa}} 'Vu."~ cioal Power Sudra)v Study Crou~j=-. Se~. ra stan ng corLttees; na~e}y, a oac Forecast Study Co.—.zittee, a::=" ns:—.'Ss'c".St ~ y Co—..m'.=:ee, a ower Genera" o St 'dy Cor. ~'ttee,' Lega} a..d~""'.Ssat ve '. Cy Co.—....".t c, a = ue s resource Cot.z"'ttee, anc ar. Ator.".Lc Power

' 'l" Co.==.'-'.'ce. 'L'i:rg you nere again, today, to sc='ously consider ~wc '=ac 'atf

~ ~ »»2 '" 1 a g Qu'Q a c se s 2 LN~ cc~11 ecs 1 also 'u e agatn 'la youwcr! Qut a;Q"=. La amon= 'acse syste=.s!:aving a primary interest in the ac. a} cos:r =. ".". c fa"': . s an-:.".Ose syst =s naving a secondary interest, wnere o'1cr

::-.Qds w'.".".".ave to bc dcve}oped tc Qr™t, pooled powe" to ~~e}r syste . s so ~~at\a" c"a e " .Cs '= propert'cn to '".e'r respcc 've z.".tcrests can be contributed by each

cf '". Sys:e.—.s tQ }nance 'ze work oi such 3.h& ~iciaai Power Sr Qc!v. Study Grout."'I

~ %'Yot'i T}'r.otc "':at t'~e "'."st reco.—.=..ended cow.~"tee was &e Loadas ='. '" Co.—..—...it.ccand .—..ay recal'. ~.at} prev'ously suggested onc .—..ethod

lCy ~'."..'".1 s" C.'". a con» ..".tce cou}d be utili cc .'s to have at} partic'pating systezss-'=.—..'.: LQ.".s-range 'orccasts of J1ei" 'loads. VP thin the past fcw nont!1S )«iac Cun —.'ng-." ~ ~ .4 S Se»lt to Ca Cn Of 'Cu» S' " S CuC t''S a ScCL i~ O Just SuC 1 k~a'Q 1 t'O» ~

as 0 d c ~Qug 1 to lct —..c "se '..'". s 'formation i.. Q=eaarin~ —.y alk Qd- y, educ.'".3"'"" 's eAtrcwc'.y usc > in its present form. So...c of it wi)} .".ave t.o

'

b- SL'-":~—A."'-'-'"~ "c v'as aQQarcnt)y so —...c con us.'on as to w..e'Ncr hfac v:antedcast o'a='ected )oads o Q)anncd genera 'cn.

~ ~ ~ ~ ~Il \ ~ ~ ~I

.«One!.".CLC ss,A)» A ~0» A A

~ l ~ a < O

A l» A A ~ 1» A ~ ~ ~ %»»jh~ J>»» l»VW Q l ~ ~ 1 ~ l w\c

" ".". Qo~u:attrCA )1» v I» c ll » v» a» l

and su-..o)crncntin~'it where nc-c:1 or scrnc c'..1cr bas's, wc i1avec t xc .lu ''p31 8) s tc 1s Ln tnc

D135

S:a."c cf = cnr c.'= Ear .ehcir su......cr and winter peaks anci annual ocaks fo" caen ofe

:hc years 1, 6, i 9 "0, 1975 anci 1980, ~

Thc rcsul s af these projections once again shavr some "aQ>cr start-urcs. = or ins:ance, thc 1,65 noncoinc'dental peak dc:wand of al '.hc munici

sys'.c...s n:hc S: '.c was app."oxinza'.e'!y 1 ZOO nxegawatt". This will inc;easeapprox'.—..Ctc!y 800 . Cgaivat>s to ZOOO megawatts by 1970; and will inc".case another!000 megawatts in the period 1970-75 to 3000 rncgawatts; and will inc"case so...c! 500 .-.:Cgawatts .'ram 3000 ta 4500 nacgawatts bctw«cn 1975 and 1980. Our ana'.ysis

s

also sho"'s;hat ther p".Cscn'.ly exists about 100 megawatts of diversity betweensu.-:.w ." and w."nter peak ciewands which w.: 1 inc "ease to about 350 rncgawatts b).9e0. This .-.icans th" t the "c is p-esent)y app "ox'...ately 100 ~cgawatts oi wintc=

apac.'ty availablc in the municipal systems ir. t.'".c State ai Z'lo-.ida Eo" sale,'c a e c a»ge vrich sys tees outside ".he State of:"lo"ida hav.'ng vrintc= peaks;

and "".at "".e a...ount oi "".'s wintc Ei"n powe" ..ow available xvillwa:e than t=iplcave" "...cxt ZQ yea "s.

Th's analysis also shows tha,t when carnpa=ing 1965 totaL peak de-r."sands ta '".e tat~'nstalled capacity of 1800 megawatts, thc combined capacit",r is50,< g"cat "..han ...e tot~ peak dc'raand of the ind'vidual systems. ;"owever,assu —...'".. ".e la ~est u ': an eac'a sys cw is aut of se".v'ce, .'gno-wg fo= this pu".-pose cx's.ing intc."con ec:io"s, the i..stalled Ei=m capacity is approximately

equ"'a

the .ota'eak de.—..a .d as would be +>ected.

~ ~Also, gna".ng evisting interconnection anci pool ng cant=ac.s, the~ e ~ ~ e ~

Ca ac' 0 a tnC e municipal ss$ Stee 1S s as Su~'g eit e" .he la "gC St I a

in:he S ate au. of se "vlcc, o." "pp= x'™mately 1Z.po dcd catcd to =cse "ves, 'he tata!'=.—., capac'ty if a~.''syscc~s we;c ully intc-.connected vroulc inc"ease f"o... appro.

'—.a:-!y'-OC ...eaawa: s:e 1e00 aeegawasss e= aeesexana'ely 400 mega«as s eiac 't'Ona' ~ Caoac'y CuC ta Paa Lngs

Now au".. indivM a l.efm".„;s, iwspul'~in@tet~et!:ci.'His'load,'.iaaf'o=..s'at.'a'ri's's,'svc

tc~;:,"i.";"ccrc - nd 'cc".t a.'r'y is''nca'" sabsssti:ute 'Eo"'-. a:ho"'oug!: load fa-"cca s: studysucn as a stan ng ca..~a ttec wou}d u..dc"take. Hawcvc.", using this information,wc have bec.. av!c:o cio some prc>'n!nz "y third'ng along Q]e lines that vrou!c! bc

". 'oy ehc '.rans:..Lss.'an anc! =owe= gene."ation study corn.. 'ttee azd ha:e"-.cpa=c - .—..ap of ~".e S'zt.c af:"la"id'how'ng all cf thc ...unicioal gcncrat.'ng andpurchas ng si s:c.—..s .'.". thc state. On this map is shown what appca-.s ta us ta bi:rc-scn-b!c .acations for bot.x .'.—.~cd.:ate arc Eutu "c h.'gh vo!(agc t,ransmission 1'ncs

~ ~zna nave cvcn shaw-.. what ppc""s to bc a "casanablc location 'o- a tsotcnt.'al majorgcncrat'ng s:c an su"4 a t""nsmiss'an system. T&is .-:.an has been ...ac'.c by ovc"-tlay n;„ thc - cc'.c r 1 Power Ca:aa so'on rv>ap oc principal elect."ic Eacil;".ics in:-!or-'da

-" ":: Cc rgia anc by showing an t!a.'s iran in "ed the lacat.'cn af —...un.'c.'pa''aics;~ re V' 'Ca M gC Ca n Wn'Cal '"

P CSCn y u ec Ca I uc 'Ona 4lnte tc~ be v ~

' are c..c «a esca~ ea v «e e«c s er! hach f just rnecntia r"d

D136

-6-Ycu w.''.1 no:a or. '.h.'s att;c'.".cd mao:ha'c Qlc Solid transmission 1'ncs

cc 'c p sc ~ gc .c aL'.lg svs'c" s Qf St roc ~ Cia i lc 'vl 1p) abc andgScbri::g.:Lcsc five sys c..is had 1 j65 pca cs oi about 1 10 rncgawatts

v:i:.'-. i.".s:-..'cd capa"".y c bout 310 rncgav:atts and inc.ividual fir..i can'acity o 208' ~ 'I ~ I ~

...c- i~~.cs. !nccrccn:lec!cd these LLvc syscc.—..s alone would L™mcdLace y ga ..q-'di 'one.. '..':... capaci>y, v:.'hout construct'on o any additional generat.'ng fac't cs,cf q0 .—..e"awa.'.s or 60, 000 k.'lov "t:s. "'nis is more &.aLL kc si-c of any single ge»nor- '-g vr'; Qn ny ot thc svstams. Even ac 100 pcr kwv for stand-by Q= peakingcap-c-".y, t..'s represents'scme $ 6, 000, 000 Qf ir"mcdiatc savings tha. wou d bc avail-

0c'' sc c co t Q' c a 1'L Isslo L facl ltLCS,

You w.ll a'so note tiLat Ne so1id transmission 1'nas considc"ed for.:.—... c' potan" a'ons:=uc.ion also conncc rane sy tcrns ~caC prcsen,ly eccive'-.=1: an='r pov- er su„=iv from Flo ida Howe". Cor~oration; na ..ely, Alacnua,

Nc"-."cr".y, VF."'i'scon, Ocala, Lecsburg, Bush .a l, blount Dora, Bartow and:»o=tWf "d . nc 196= cak de .an s o. Chese nina systems was approz.'m tely 80 mega,-v.ac-.s, =.a.'c'ng .h:ota'eak demands fo" aL'enerating and pu=clLtlsing syste~sZZZ .—.cpavvac.r and '". Cecal aoolcd f'rm capacity 268 ...cgav:atts. 3'r'hat tMS .. ea" s

~ is "a= " a" c'.hese 1-'ys:c.. s were presen'y '-te"connec.ed, ~Be present 'rlstalledcape.c':y o" &e g "c"at'=g systc. s w'2 oe a'ole to me . 0:air ow-. loads and s-pplyz'~ Qx '-.c rccuir =..c"cs o ~"e r'"e sys.e...s «hat now purchase their powc" frowc'"e Sou C S.

,, cs 5 ~o st o you a" c %vali a'ware, ten o: thc twelve cities t'"zt pu "ch-e ~ » su v 0 lo d c s e Co BQ .aLt on have jo'ncd toget'Lc" .in aI

p .". a s =g e-puzosea ef=ort to secure fo" the~selves lo vc" cos.sate Ower su ply. r C Cne same t'inc tha.'.is group .'=. aatea attc .pt's to

.-.e=c-a- wi'=. = Qrica =ower Corpo=at'on the = ece=al Power Co~~ ssion too1c an0acc vc intarasc .". c"e'r wholesale oowcr costs and co="uct r a sta'f stucy n Viash-

~ it~ ". Deca=.oer l 9Q~ che Co=.pany i lcd with tne = cdcra> &ower Co.. missLQr

a...en"'cd ra.c sc'.=adules which v~ould amount to a rather nominal 5";o reduction in"-'5 "ror 's:era pov'er costs, sti~ leavi..g a wide discrepancy 'oeh~cg" ~lLe,. =,ac .s-~-c oy:.".csc ., u" " a.-. @5~~A.aha.ops'. -we'g'r~r ng'. <=s.;syste .;s "~ bc..al '"

4'i:~ '".'e.-. c:i 's,"~i'"'. '~c'o='ge 'So cgel, otto "ney Qf Vfash'n<ton, D. C., zccep'ed 'hcce recucc'cn Co e f 'va Hove.".".be 1, 1965 wi ". r. portior. o. the rcduct'on as

=''-'"-:= rad ='""'orpora".on 'nccrnc tax, rct"oac".ve to - cbruary, 196:. Vi'e have just'-"'5 v:c 2 ." "c';c" v~ord chaC Chc - edaralPower Co—...iss.'on has accented the "ates

hot c 2 e:uclc'ng tne cstics ig~ cs to Lurthc ccou sc bc Q e ', 4nLs'5 ~~~ ~a~ ~ L~r C'l5 ' 5' a co l ' has bee i 'd before tnc i, cdcral Power Cor.—,.iss'on

I ~'5 ' „ha 'Le "a c z'xvc Coi i Liss'Q L ~'vc tne tcr. c'es rcl ~ cf in t»at tnc..a ~as, co... ac ", 's a ld e<u ations u .dc whLch "lo ic a owe Co no

~ 1

c'es. Soma o~ «Lc es c ' 'a n QvisLQ. s for wl 'il compl aL~ tt~-~ " c .L.c.-""c; t', ) ~roniolt on Qn resa c to wnolcsa c custo.-.zcrs, (2) nrohL-~ crl O' " ":'. ( i ' Qilto';Lor Qn nu .". c o' -- ~y Q L QC'Lc r Sources

a 5 a%SR, )'x) i C Saoa O ally r~ nunLCLnaSLty Wla'n nQV/ has Or haS n QV

D137

7

Ic r::=.".chisc or v.".olcsalc co!:t.;act iv:4:hc Company, or to a municipality gcncrating

,''s crIvn c."."': -i"'; A,s wa s oointcd out in thc co.—..ala!nL, t.'".csc rc strictio!:5 have o "c-4

d ~..c .." tu. i dc vc'op™T n'' tc come ctions anc gc 1c at!On 1! "ceo < ance m'sound eco.".o.—..ics::d cnginccring.:.xc Cor.".pany .'n .'ts ansrvcr, stated tnat it hadei~:essed i:s in:cn: 'o ...o ''y sue.. emst."r< clauses mh;ch ~ay be considered rc-str.'ct.'vc zn .': a"pears '..."". in tnc'r Ti '~w ~odif.'cations i:avc bccn made wi!ich may;;xvc "..>c dcs;"cd c:icct o .'i::g such "estr ctions.

Trus fo. the "=s t"me it norv appea s t?:at t+cse purcnasing syste .s,i"::".cir zttc.—..its to secure lomcr cos. vomer mill not be rest-icted to tak'ng t'nc'rentire pome" su~ply frow "lor'da Popover Corporation and miQ oc able to purchasea: 'leas: z por='on o. '..'".c'r 'popover supply .=o!w o~acr sou=ces such as a =loric.a. ~Vu-.'-- vz> ""';,e- Pool. 3y sodom!ng these sys c...s o ti:e xr-...edI=tc ootcntial trans-.—.'ssicn, '". 's not 'ccrc'o=c ou" 'nten" o" to 'ndicatc Sat al'f t'geese systc...s mou d.".o 'on"cr '"c c sto.-.icrs of:-lorida Vomer Cornorawon, urtner ., it is i~=o siblenov "."- s e t'ne trans~'ion 1'ne voltages unt'c ailed studies arc cornplcted a:.'".e ."; —...bc"of ~artici~ating .=u=<cloalities be established at least fo" the i."wtia1.coo'' g e o s,

k

os.. t e ma gniMde of ~He loads i..vo'ved, and i- o "de" to providegroiv-= a" -: = ".e", to nrovIdc 'or "tcgrated ocerat'o 'vn.. ex's~ng

=ans.='ss'o" -ac"-'es in >.e a "ea, '. mc" d appear Csat Qe neav'er solid t=a. s-;.'ss.'"."..'" s s.'".omn mou d oe. a,. '"..':.= of 240 ~v and thc lig.".tcr solid tra s.='5-s.on n s.".o-= ivoI lc oe e me" a, o- 1'~ kv.

~ ~

You v Lr not .. t.".e —.. ap a po cntiai ' 'o" a poss'blc single r.:amorra.'.".g p a= . ~.".is site nas oeen srom.. on ~~e Cross =lorica charge Canal

eca" SC 0' OOV OuS ac a. "a I C 5 O ad CIuatC COOl''p Ou r( 'ucl deliVC "'CS~he ~ ' ~z."." "'c!."e-.,~ c= ncavy gencrzt'.".g eauiprnen...'n addxv'on to oeing 'ocate" aplong ~".c

'"sion lines. 7"is b=in-s uo ".e vc~ I ~zo "tart ouest'on - mhat-'s .o bc '.':.c =='nc'=a'rvcr suzoiy sou "ce'? Obviously "1:c im"'al vomer suooiy~c " cc.-:.e '="= t.'-.c e~'st'ng genera".-.g systc=,s; pr.'mar"y frc~ Ga.'ncs~ "ie an™

'

Ia s, z~ .p « ~~.w d.'RM~~ .ba 8 s cc use „oI 'Phd'c 'c&5t f o '+ e'

.«. ':s '"s:a: e~ '.-.''".c o"!» trna systc~s. I" order to n:cet crash'.re poivcr .su~rJiv =e-h

c .'"c—... n:s, =omevcr several al<.cr=ztives ex.'st as fo'.lovvs:

~ ~'5 nr+ <r « I«oo4««a»zv iz ~ ~

(1) Construe 'cn by Gainesville a!:d La(;eland of gcneratiIng -lanti.=' ly .'" '".e 7:--l00 ~egaxvzt range and ult.'aatcly .'.-. the 200 to 300

"c o ~ a "alee ) ou Curn Qas',

DQ I ~ r a!« ~ ~ coo s 4

~«n gr ~ ~! ~ s ~ ~ ~ C

( 2) Co«si « ~ oct!o«of c «cm s!nile c+nt~ I g«c st I +g p~a+It* ~ g" s'i.—.'.ar .o the c" c 5'!o';:-. "jaccnt to tnc Cross "'o"..'da sarge Casa','.vo = bc base-loaded m.".h c..'st:n~ ~cncration uuaoLv:n~ nr.'-..mar.:1-

I 'I ~'s.=.". -"y c pac .y. in'tia. u.='ts at thi.. p!ant site v:oulc bc in tnc l00 'o~ ~ ~ mn «ir «r « III«« ~ nn ~ ~ ~ Q~n.. "c!:gc =.".::;.". "ca:!" '.o '.:." 300 to >00 rncgawatt range meL> oe.o "c lc "0.

D138—

-8-(3) Pu."chase o: base '.Qad wha!Csaic powc." s pp!y i".Orn soz..c ex«

sa "CC, .'nc!uc.'."., '" t c 'utu "c, sue.". Qa(cntiai ."Cgiona! Qowc" pools as Vsc

The:c a=e achan'ta "cs and disadvantages in caen one Qi these '".„"ccc . a" vc 'DQIv 3" Qalv sou ccs and n Qg 2 's, 7('hout taking time ne "e ta d'-

~ ~

c:.ss .hc va".'Qus cans.'dc=-."ons ".».at ivould have to bc r.".adc, we car. assurae tnat.::nai ccc's'ans ivo ."'Qc n:adc on y a'te".ca=ciul dctailcd study based solely onccano —...ics. VI'c can ziso assume that if a dec sian is rnadc to insta11 gene-.atingc="ab ".y at sama rev.'ent".a. po.'nt tN decision as to whctnc" this wou}d be os"'l««! c'ed o= r"c'" uci d xvouid also be based s."ictly on cconor.".ics.

it .ay be sigr '."cant to rote ne"c t+at a nu. abc" of n}'clez" ccuip-ven" =s a."c att . ti!ng to develop a r".2 "kct fo= a "clatively s...zll nuclea"

p}a"t "; 50 ta '!00 megawatts based an a ¹gh p}?nt c"pac"ty facto" of SOlo or bettea.".d ixed c'.".a="-es so.-.xexvhat lowe= t.an cu"=ent rnuricipal iinancing could p-.ovidcCn '"..'3 =as's '"esc ven o=s a ticiaate powe-. costs } . this si "c»ange of ."Om Q.

«..."'s pe"!rv'." '.o so=.cthing ov " 7 mi }s pe" kwh at the bus-ba", depcrding upon:.'-." s'.'=e c.''". }'".' ~ ~>e la"g —nuc'c " plants be'zg p "aposec. Or un c" cons." c-'.ior» tad y bus-ba" power casts oi 4 to 5..ills pe". Eve could bc expect d ir. 6:e 30

« ~ ~

»» J0»» cga vz»» 2» bc ~ « Iva ot »ne XQQ«t?nt 0 Q»}ic»»»s Ln CQnsLdc» g nuc ez~ ~ ~ g 'I

scn ".2 Qn:a" a .=:~a.'c =a sys:c~ a=e tne . 'g.". czP tal cos-s znd "es "ic ve cave..-ants '..". Cxis~".~ "cnd o"d'nznces "e~a=di;.g debt sc v.:ce cave=a~c. hesc covc=a~c

Y s';""' av.. age aoout ~ 3 t les.. ? xi '1 L dcb se vice, ate .lt c ' c" '

:; .-.": '=.=Qssicic ta si.aw su —ici ".. p:cscnt oo-d ".g cap" c ty to i ..ance 'Ne di 'c"-bctw "" nuc.e"." ant'cnventiar.ai iac'.ies even ii &c ar»nual. powe". p "oduc 'o

"s s would,be '" iavo= o™uc'ea=. =u=the", since the cos. oi 5 to 7 ~«lis .'s well" "'anvc."..iona plan s 'n ¹ 30 to 35 4 pe" z.. lion 3:U energy a "eas,

1 }a cc=..=c".'" s '." t'cn:a" thc s —...a lc." acta=s xs certa.niy ..at clcz" a ~~e a"e-3 ."..: .—..C. Onc.ac-:antag of a municipal power pool howeve", would be t!:at a net

P 1«s~ c"t™yv-o '—.a"e tna" 1 it .y ae io ~cd 2nd '.ne covenants unce= wnic): i':}-ncc v»«™ ';d oc su~ra=:c 'y .'ae -cvenues .«esu»in. i"a... ""... Oowc" gu-c'ease .*

'o Q c c } ~ Qnu Q ~}»c'« f~~ I 'aov«I«g« fFAsl „Q' ~1 ~iQQI~SP ~I» c~'l I I»»}a I«««a ly'~ss""i-t "'i-'";c."st"!Out'or'. Sj s: ...'s w'Q't;~a "Qt oe 'a6 "c" .'" i;nanc'ng t»"c era«»». ~ « ~ « -«~ ««C . » -««~ ~ ~1}1».»«» ~ v c «» h«sk»Q Jac»\ %is ~

By ca.—..-a" son:a t'..c ia."c"oin gene "al ."a=pc oi vower casts i"owI

! C '1' ~cc.".van=a.".a'nc nucica." i " - cs, a conceatuai n!an ceve}coed to c" c ic" Yankee~r—'-'c an='='pates powc"'as', cc''vc "cd to =1a".ida in ~c 4 to 4-1/2 imiil pc"!;w'is

a~ ".'-.ce ing =asts ta ice '.-. 'vicua 'aad cente:s. ''s oavious t':c "e'o "e,«."" Sc."'Q 's cons'c.c-a'.lan cau}d 'ae G! vcn ta a pray-.am such as thc Ya. ttec»

~ «so.—..c:~e oi .-.}un.'.-"i~a'. Qr o:.c e"ence custome" t"ans.—...'s .'o.. svstc...~ ~" 3 Qc 3 ' c 2 " + .2'.ivc. a wo "kabie p ogre. Qf whcciin ove

!1

3

! n»c« ~ o« ~ ~ «c 3 ~ 11 ««av» io Qc dc «clooct« ~ it Gn }cars to us t»!a t c «»«»r»»c «/ ~ »

OQ c::; ai:":;n::!:.'"S.™n. ncs sna.vn on tnc att=c.}cc. n".aa would~ '--" "" ad ";- ~IC ta c.'.'.}c". a plan of sc'i-g nc=a.ia.". o" oi pu "chaoc from sornc

~ ~

Dl39

-9-oil wil.'so

nomic

on thc - '.t.".C.'icd .—.."0 thc ilcai"I =nd iiail ter dottedQtc ~ i a s i ss Qs i cs wi cn col lc! ntcI cor cct those systc its v c

«« —..ab';y a'-."ca"'y Qpc".at.'ng o."'hc municipal vool transnTission systenl with the.".. !c.."'s c'-"c'::sonv.'c znc 0:lancio. Sr c.l fiitu "e potential lines would

ntlcc 'he 0 th a ~ 'ou ~1 cnc! of:he sys tc~ ir.d'catcc! Eo." ~=..cd atc pote"Itia'-nst-„c

.'=:: ".-."'". cc.ition,c:cicnsiors coulc. be made to thc no "th 'nto Gco."gaiaq.-.c beyon". A, f "t"".c c~tcnsion of rnajo" line cast to Tal1ahasscc a.so appea" s

:„- Qe:ec: .'"cd b-sec! Qn loac! p"ojcc.icn . Lz thc deep south, Kcy Vi'est tlat 's,yc„w .1 a'so scc a .'".u=c tlans:. '' ssio.. nc up tnc Keys u'tirnately cornect'ng

. I„:.'-.c Keys Coop system..-'..". 8 .—.."csegaxcnt 0 this...c to be constwctcd 0=:.:q 'i., znc Opc".ztc"'r' .y at 69 kv is al "cady fi anced and- -unde" co" st" ct'or..

Thc s'"c o- t'ne futu"e pote.".tial t."ans..cession 1'dies in the ce "t""J c State ca 0 t bc c! etc =—.oned at,."' title, home ve ", ti".e ba ckbor c pa ."al c

line f=c-... Cr!a" '- to Qa'nsv.'Llc to Zacksonville alld up ir.o Geo."b~ia would cc "tain-!v be '-. "-.e CX "- hip" voltage =an~e of 345 kv o~ ~0 e. The "0= ~0-e" Tw«Qu>d

c pend!a"„".e'!y cn tne pa "tic'pat:on in jo'-.t powe= pooling plan .-.~ v."til .;".e p"'vatc'cs v '".'". an"'utside c t'.c State. T:Zs b".'".gs us to the i=.al '~vo "tant, aspect

-; .:Qw s. c.". a " o "1"a iv" - c --1 „ov:c= 00 cou c c=or: i. St:cnt;"z anc. Ult ~ate!J„c "Q . <.. '..t g a Qa 0'he ert'=6 'Q lee cd t a " .'si oil syste I 'ir ale

~"'

<now unlc"381 s p

ste~ s nQt ocatec 0 tije v 'nc' Vote ltlal'.:atls-...iss'Qn aci 'es snown o= z attacnecl ~iap coulc sna=e in tne ocnuts oz

S ooa~ CL» ai » QT«< C VOo~n+<C7

'I

::iG AYD OV<'I" D.S:-. 7 0:- T~.4 <iSX<LSSL0% FAC:LE

7Pno v'ould ow= a.=d fina. ce De potential t"a .s=..'ssior 'ines siilov'..=.-.::"." zt:ac.'".c '—..CQ~ '<V'ouic! Cavacity be irlcluc!ed in:.'"c'.=ajo= backbone 1'i '"-VQ!'z~c '".Cs to .—.. et t.".c "ecti<'"events OE just Cse .—..u.".icival syste~.s 0". the ~u.-

Z.' 'Dius '3» ..a»S 3.~A COOVC at'C S W.no 4V, XV<a ".<,0 ..5a» 'Qcht~ .4.2Vfpi C":LM% ';.'i ~ .

s'..O' cap~c".'.y'.oe .".'= Uc d Lr. su"n t "a~'s~'is~io'il ! n s'to meet th ncccsA ~'c 3,'''<, c ' Ll'c s I, tr e state '-. trosc a."ca c Ilcsc a."c i Ivo .tant oues 0 s g

1 ~z«i cl v'.". C.'"..-:. s: be ."cso.'vec'cfo."e ariy .'. 1 fe" siolc alan cain bc developed wh'ci-~ > acio j 'Q Qc Qf i '»t" < Qc e ' tQ» 1 t c i ic~ aoc s 0 t ie ~ 10 i ca . <<iuITI(LQal 4 t TLtze $

~ D 1 ta ~' ou w.' ca~:n -' so d 1'..".Cs:nc. Cated 0" < . lee. ate: 'tu=c co..-

r-> ~ - -'-.I-..i 'I Qu wl~ scc tniat zc=e Is, Ii-. e 'ccr. ilo cuDLLcad0.. ot C.D lxz<n»voltage~ «z ~ s ~" ~ Si».. Ia» ' s 0'i y 0» c 0 'P ic utl 'lc s ill tnc SI P tc 3ciivee<n SLlvc

'< / ~~ z.-. a.. ~ -n"- ".c ."..~.".Cst voltage cv.st .-.g c=an:-..issicn .!re is 69 kv at tnc

:.';c '.'.-.c f=oz Si'vc" SQ"'ngs to =o=t Vfi:itc w'.".ich .'s now co —...v!Ctcd<h I

~ u~o»J s»» Ic» v ~ ~ << o Ne > ov a cc! ci1 - ~ <lv ab 1&0 kv. ~cokLng' i M L ~.....'".- '; "'"anc—....'r,s O...ines conll ctiny sucri "yst ...s - s Sia."kc, A.!acnua,z

c

~ n

1

S~ '< '< '

R ~ At11 ~ I«te %)6 \ ~ i \» < 0 hr< + ~ »< 5 I hA ~~ <i ~ <i;-!..Q.~, c ', ... i .. ', . %, L', ~ .I~c c,. ~7auc.".u'G,

' ~ ) <4' ~ S' »'r ti CSC ~ aCS CQ ~ Qa) In Caiccl < Cu JLI(a' any C ) Stlri CCL

~ ~

.T» ' «~-" Q J!ctc 6 0 L i Q <CV 'Qovs 'n<' 11" s '<vo 'lcI ''0 c

-10-i-030;) g

D141

.-Qv!dc !Qoa service instc-c a(:~c present radial service be'ng supolicd to 2 number0q.',.-.csc cci-..zuni es.

I eave nac had (hc appar(un'ty to par".icipatc in any ba" rd c" co...-~ ~ ~

zu..cr ". -"les Qn t!.c Qrescnt =lorica Power pool involving esscntLai y urxvatc utxix-o-."s—...'Ssian!'.".Cs..':Qwcvcr, if t!:c intc=es 'n regional inte "connect'on con-

~:- " ta!nc:case as:ndicatcd by t!'1c L!f tiana'avicr Survey, 1>cn mast assu"edly\ ~ l t:-.:-:.-Va.:ag tr::s..'ss on 'cs s'..L "." to tnosc s..own 'o: both irn~c='atc and 'u.ur

-=:cn.'2'ans:ructian w"i be =ccuired not O.-Jy fo= ti.c r.-.unicioal systems but fo"

To be ~erfcctly f"a."4, ua until naw, you" g"oun as a w! Qle has nat.—..2"'e sL "icien. prcgr ss in sop'nisticated powc= pool planning o wa=-.ant si'ngccwn wi '". -.Qr'da ower Corpora 'an and:-lo=ida =Qwez a c ~ig.it and .aying out as2 ==="= 2 i'ac!i«defined alan o'=ans~issian and «encratian wne "eav you could shows"'=ic'cn"..—. -. 21 beneii:s to ti.ese maja= ut'ties to just'fy ~>c.'r int cs. i. part'C.'-

v .- '- tt'Qur pi s. Up un 'i na'5 pe hap s yau dicn t ca e 2nd lo overea':y wan: -'".c'" par-'.'c'p" 'an. However, lct me point out '.'.at it was p"'=..a "1 y-."Q''.". '"." deve'cp.":cnt c='casi'ole alte "native gcnc=atton and t"ans~issian plans

cccaera 've" in tM.S State we "e able to si: down ac"oss L ncgatiat'~g:=-:- e ':.". "". p"'va'.e utii'"'cs n a "especte~ pcsi"o and prove ta ke... &at it wass'. ''v ~ a c Q" 'Q s 'Q>ly "Lei loads at .'Owe" cas.s than '.".e - net «nbo 'u-0

"ai s; s:c.. s even ~oug!L the cas'. to sc=ve ~".Cse Cooke:atives 's i=':e"ently~ ~ ~

aa aaJJ > ~ ~

tvv

if the ~u.-ic.'oa syst .. s a"c ~we or:v" tc ut 1".'es in ~".c State ofan ='". as.'ce i"ea chica di='c=cnces and fo "gct pas. p=ejud'ces a=d sc't

as.' 'ss" s s''.". as ca ..peti:ion .Qr new loads w!'.cn discussing powc" supp ~ ple. -'

~ cn:;" State a= = a=.'da vz'1 ue t..e acne.'ciaq, L.. r=.u n tne sa.—..e wzys '-. =ac'c Var.'.":::est S:ates ..avc been t.'re 'oenc" ci-ry af sucn join. plan='n~ a..".d

-"We=:SL:=aV:O".=~a..aSL'.- ':MtW . 'a '-.Z'gaia ~'e:Z~~~=8"iat'e'd Li Qie "~ee~);.'g'S knC'ne'«a-.'-.c

=-"".'" 'Mar" .: s: suc.'". as t.:asc le"c'«up to t:c rcc'c..'tly fin nc d and now11 ~ ii'."-'c" =cns:r.':.'Q!. hc" s Da~i an t!ie Calttr.".oia c'vc" wnercay t".c bui'c a t.'xe out-

t ~ ~ 0 'a','h at"'-".;=c-..'.::='s ~D "naanccd earn wi Qe Qu=cnascc ay tnc vr'vate utilizes. O~"cr) ' ~ ~ t ~ r-a==-..c rs ..-. —...: .'":—..::ave been c.cep.y invo vec '.". ';nc negotiat'ons leads. g up to t..e

".c 9 ) 7 2 c Darn v( LC!L wa s f' d 2nd Qlc Qowe Ke ted'S.'=.'aar QaS S; —...Qrc = Ccn'.ly tea L:a." ard .iualear PQWCr Reaa Or ana "~C

'"C - Nc.iangc) 'tV .„'C. 'S 2 .O. v QI' CO ro at'O l CQ '0 'a ~hah ih ~ ~ ~ a ~ ta ajh t h I t h ~ ~ ~ i tt I ta ~ ~ a ( ahh ii1 1~ ~ ~ .» ~ v ~ a ~ t ». '«i-' r ~ - iaaC sh Ct aa) C»aC ~ aia ~ i .C v t.) Oi ~»tl ahc i ai» SCVC 2u" ' iV»' i L«is 'i '.iiiC St«iC ~

'ha' g O'ua ~ ias Just rnia L)t'Ctcd 3Z l I -'lainCs

~

~

L i:S '"' " "u "Q 'Q '3" C'3 C t "" o o . o'

~ s» QC» C»a ~ r 'a C tvaa ~ ~ C aaaa~a ~ r)t Q rp )ht a C»ag 0 it e C ~ ~ »LC La rritCC Sia tC S

P

C 5» ' CL'3"' Q a»'" ''c" Q Q]cct3 Onl') 'ic all tia O'S .LaVe Caa nCC»'Ct~ ~ r ~i ~ "snC r 0'raC «,,Q tant» ta)1ic ~ SL1QG ia a 't ~ '»a' t)C!le)) t r Cain ac 0 0 t Cn ~

Dccausc ot yau" ability to f;nance ma~or t"ansI..Lssion nd gcnc "ati:1Gxc.; ..'cs zt .Oivc". czo.".a. char"c "ates, coup. cd wit.'.1 ti: p."ivatc util ties'vc=-

..-.=;-czs'n~ need to cx=anc fzc "ties in the S:atc oi:-Lo." c.a thc".c is a I~ ™~al g".Qutldici.".: Qz."t.'c ".,a.".Cn .'n sound p "ae "z...s. bc icvc t.'1C Least bcnc .'cial plan fo".

"".c oivnc "5'.-..'p and aoc".z "on o the mzjo" t."an"mission ac'l;t'cs shown on t1c a'tta-c'-. c::1=", " .'" La "lv f -. thc Lon1-c"..« .".gc fut ."c valent'al fzci'i'ies is as folloivs:

.-..Sc .c"l.'s waulci bc canstwctcd znd f;nznccd using rnunic'pal tax. exempt bonds.

.".c "c would bc a.—..~I!c cap city lanncd 'n 11c constzuct'on o these facili ies to acct".c .".cc"5 cf::".c =iva.c ut""'cs fo". t="nsfc".". ng waive". and cnc "gy to t.1ci= .a" d

cc.".'.""5 over 5" c.'". faci 't1es. Car -.Cspondir.ply, zg=ccmcnts v:ou d be negotiated wiQz'".";"'cs:o." t..c del've"y of pawet ay. displacement ovc" thc p ivatc

1='cs cz''"..- zn futz=e t=z115..:ss'o lenes to t..osc n1unici!1alit.'cs shown e sc-~ g ~ ~ ~ ~

'V:..C C . 'ttaCh d 'a tha C '1Qt Vrl 1'''1 Z Ca Sanaale 't ansnh' SLO QLS a CC

=a=...".-c bacibanc —..u".'c'aal'yQnarccd facili>~cs. Lt .'" in this mannc-, and pc"-:;z" 5 o. '; .". '"'s ™an. ", t!1at such cor.-.mu"itics a '.=o . cstead, Lake 3'io "+"., "o;t.=!cree,:Ld Ve"o 3czc'h, X<oo"ehavesh and Clewi ';or., i>ew.Sr.".y"na.3cach and ake:-:elen, zn" ~launtstawn, Chat" hooc.lce znd Q'uincy, can 'ul y sha "e in t..e bene-it"

~l ' <COL z = '.a= cz '.~'.ur C.'uzi &a~,c- Poo'.

Although a" anassee's Loads v."'ll g=ow. su-=1'cie=tly 'a '1e Lu.'=e taac r av 5 1hz z t th ' ttenslon QL IcasLbles ~1ui~cL'a*l y flnznccc trznsiidss or ) zt t e

se.".. " .. »La'.-.zsse .'s also in the same pasitiQII as these othe"'o=c a" lesseisc;z.c- .=: ='c 's. a.'t ue co~ m~ttcs ...cn"'ared, awcvc", Lt sc=ms ta ~c

z ~ vote. h 'x sts ','1t oday Q wo Ying out sQIDe couitable az zL ~re c 5~ ~"-"; "- =."-c p".'vztc '-".'" s w.".c=eby '-c ex's" 1g gene=a"'=.g .=»unicipai sy" c'=s ca c

~ ~»0W SN Z"- C OWe ZnC' e gP QVC te1e P !Vate Con1Ua ry Sy ate 1$ ace r e QC IC

~ 5 on Q inhL»hed1ztel y adj cent ta tele p 'z +tc r, 11Lty 1 enc 5 s nipI » 's ~ ~ ~iva =, c= cc""se, '" .—..os 'nsta ccs, eauL"e Lntct -connect~a-..s w'.n ae p." vz.

rzc'".5 suc."..as tltosc s.".o v-.. Qn t!1c attacncc map.

r'". ".hc p"csent t'...c, ".c z'.".ude af '1c p= vatc u".1'ties is one o'~

CA C e C ZnCC 'uC r L e Cvnncc Qns Z Q gaW goa!L 1P Zg e a entS ~, QW~ c: .c . '' 5".t0'" .e. prJ.vztc .Cam'az..'y'"57'stcn1s.a 1'd'tEe n1'I'1,'ci'pal" 57stcms z "e"'

ae".." 'ch. e:.".ass r..o" t os you a" awa.e o< '1c "cae=zl Powc- COIa.—..issior.r=-CCn..eC 'b 'Ie "!C 1 POWC" Co Qo Zt 'Oh SyS C... Wi r1 t'1e C .I O=.

~ ~ ~ ~ 's ~11 zu ~ "'z nc C' OE uzi esvlllc Ls 'alved L 1 a occedLngs ae o c 1r1e " edc zl

r \~-'» ." ca.= ..!ssian '." "ccu.'-c . o".'da Pov:c". Co~a=z1."oh to Lnt "-co."meet w'~ai

: c'-'= systc.—.. so -.nz..'.ac —...utual 'aenei ts c'uch i...c=.,-con"cc 'an and pool'hg ca..<cc=-'c ta "":.". 5"-tc.—..s. 't aaecz "5 t.-."t th o-.ivztc util t cs,have cor'used t."cacts ivy;c::;c" "= .;". bc."C.'its zcc-uc ta ao'..'". Qa"t'cs wi'~ t'.".c dcg=cc Qf "hose 'acne»

::."--'" z':c-..".zti'c p "aaas ':o pu"c'.".zsc,t.'".c Vfzuc.".uia systc... actd supply tI1ci"."c"".'"C.—..c.-.'.s ."zthc" t!Lan 'c"-can11cct w'..'t11 the=.. is, of cau" se, no so'upon

~ h~ s ~ ~

~ V \ ~ « ~ ~

~ ~ ~ V $

~ ~

~~5 Z syre ehcehr, a e eh rh r eleh» Wse ~ sr » )sh eVe t«c«~ ~ 5 r Late «Cn «Qceee CCC1 4 ~

tJ 'e Q re h re c c h c rp ce 1 cry ) )1 eh d 1 >Le ~ reve»as . eh c c 4 e a g o f C c 1 c» q + ~

shyer

CC Ch OCtu a. '.s . ~ }a'O r 5 Su '9 «ILC DCo CfLt8» Yau» a 1Crh LQIiJee hehre ~ ~ r ~ Sr ere ~ ~ Ce ~ ~ 1h 1hg> eh Se >ev e ~ ~ ~ v «r ~ v s ~ v ~

- 1Z-

'c act'o . ' cc 3v 'cn systc ls terat pu, cha s c f orn " lo ida.icr C"" " '' - '" band'.".", .'Qgc''".c." should bc a strong indicatior. to thc Com-

"" -"- " "al systcrns ..". thc State o'. 1or da >>avc colrc o: a~c and tha~„'1cv 'a:c hc:c '.Q stay. T'-.e dcvclopaent of sound n."jor pov c" gene ation a..d:- -..5 —....'Ss'Q.". "..'..ns Qy a .armer seg..cnt o....c . lo.ida !Vlur c'pal Ut't'es Asso-cia t: c.". ivy:. bc a iur ..:c r .'nd 'a t:Q n o'hi s dc tc rmina tiQ n. =u r the rrno rc, t..c

'".-.c.'ts '.ha: c=n bc dc...onstratcd to the priv tc utilitics vaill no longe"so s.—..a" .a. '.hcy can bc igno "cd in the light of sound ccono.-1Lcp business and

en":. '. cQ, sice Gt'Qns,

E hope "~at E have fai=ly and io:ccably presented T1r Case =or A=i=re='a ~'.;:n'ci"..-'. PQ'.ver Pool. a closirg, E merely ivant to "eitc="tc that the; spons.""." ".'. Q" 1caac"ship in:..is .ic c. 's yc "s. You have-avai able to you a}l::"." "..ccessary tcchr'cal, Lcsa', and f'z ncia'. advice "'.at is rc"uired. You havezvaila'c s.. elv~ » } ou l. lcigal uti~l'ty ooeratiors su+ficicnt 'unds to f'nance~:hat s-.'cs arc nccessa=g. "n o=de" to b='ng you to t..c poin'. of i'.".ancing andconst= c =.~ 1e nccessa "y f"cili:ies.Zt is fo" you to sta"t the *ctior. and t'.".e t'~eto sta t ' rovv.

Lt ha.s beer two yca=s si..cc E fi"s'. addressed you or. >is:~u'ojec..~ 'I ~"Q. a sing e ace~.ional x-.un~ c~Qal ante".-coracc('o". Qetxveen ~.vo

5's. —...s nas -c ." cons." cte, Qr nave any def'etc ala.-.'s been dcvelooed fo=~ ~ a ~»wg, p» 6< >La lab ~ ~~ n +l g tv t 4' >L ~ ~% os,; ..... Q..' .c. -c . a C.'o..s t.at evxsied .c,.....es ..avc no cea.

a s '" caoac'.; as vvas conte elated, duc Qe"'."a s to '". c'ors of ~vrdch E a~

~ l ~ ~ ~ ~ sy ~ 4 y ~ lq ~psJ I > l» +'4 ~ ~ llV > l s4. c e ....... ~a~. '.. 's .azic.'v devc.o" v:e oovvc" sua~lyl~ Q~ ll:Qrr"rrov: is a'=ea y oday" and tic Qopo".~'" ". es t.".a? you nave tocayI." Cc;..=Qi t.".e ccs-'.'.".y Qz i".e ~u=lc'aa'l c".=ac systems .'.-. ~~e Sta'.e of 7 orida

. Qt a ic 'aQ'o yol to~~0 QU ' ou do nQt act~ soon+

T'r.a& you very .. c.L.

~ 1

I~ ~

' \, ~

0

'". I rt ... I i ~~LSCg QV TlZQCC5, Me' g! -W +,

.'l/". '

~ I

.. Rab'ert E Ra&en,,P'a~ex'. ": ';" ''''.r'- ~ ~ ' 'i'I~ ~ ~ ~

Io I ~ ~

'..R';VF..". Beck.and. Assa~ti:s. i' ~ ..'r, ".'

~ I, \ I

IW ~ r

~ ~

I 'r' '

r ', r ~

: ~ . ( ~

~''

~~ ' ~ I f

r%. ~ ', . V'/~ Q ~

~ ~ ~

I~

I ~ ~ ~ ~

I, ~ .

~ ' '

Dy44

FLORZDA MUMCL~ALPOWER POOL

A Must For Ya Wee-Dix e

The canceptual plan developed ta date for Yankee-Dixie anzicipatesthat power delivered to Flarida will'be ovez 500 Kv transznission facilities toa cenz~L paizzt in the State. The associated power cast of such a pragraznwould necessarily incLude the delivered cost at the 500 Kv terzninaL facQL-'esplus the cast of lower valtage t ansznissian in the State. The bulk af suchpowez cauld be deuvered to zznznicipaL and RMz'ooperative laad centezs overfeasible interconnecting, publicLy fina ced transznissior. facULties. However,if all ~cipaL and cooperative systezns a e to share in the benefits oi ~jorpo~er paaLLng, then nzntnally advantageous a" angeznents aznst be worked autwith the private utilities in the State foz exchange and delLvery oi power .oce~ systezns by displacez ent ovez the cazzzpanies'acilities.

A Muznci~al Power Pool Far Florida

At the ninth anznzal zneeting af the Flozida Municipal Utilities Asso-ciation in Zacksozzville, Florida, March 23-ZS, 1966 the authoz'i this paperde1lvered an address to the = lorida group e>tied The Case Far A Flor'daM~cinal Pawe Pool. Although prepared pr~rily to eznphasi-e the poten-tial for such a pool within the State, and the potential benefits that would resultthe~'-azn, the fac.s pointed aut in that pape are af 'interest at this zneetingsince Yankee-Dixie wholesal'e power wouLd znast ce<aiJy be ane oi the aoten-

lang ra-ge powez supply sou"ces studied by such a Florida cansu=cr-owned g~up.

The magnitude of the znunicipal laad and. generati"g capability in:-lorida is not generally realised - even in c lorida itself. A few caz=pari»sons znay se~e to place this inzporunt fac.ar in pezspective:

The 1800 z egawatts ai installed capac'ty owned and operatedby ~ unicipal syste~ in Flo ida is greater than the total caznbizzed installed capacity ai all the other zn~cipaL anci R~t'ooperative systems inall ai the states east oi the Appalachian Mountains.

watts isla ca

This ~cipa11y-awad ge erati g capacity ai 1800 mega-

Pawer Corporation systezn;

lt is 30~o great = than the totaL caz bi ed 'ailed capacity oi:-iorica Power Corpo~aon and Oui= Pawer Caz"pany;

a»'ais appra~ately eaual to the .otal installed capacity ai

ower Corporation alus aznua =lee:r'c Cozneany;

D145

It is 60~o as great as the installed capacity on the entire FloridaPowe" aM Light Company system;

And QnaQy, it zepzesents approximately Z5'5 of thc 7, 000, 000Mlowatts of installed capacity ~er all types of ownership in the State ofZ1orida.

ilaw let us look at the capacity of existing inzcrconnections betweenall af the elect 'c systezns in the State of 71orida. As of the cnd of 1964:.lorida Power Corporation had interconnecting ties with neighboring Taznpa Elec-t=ic, Florida Powe= and Light, and Gulf Pawer Company with over 1500 mvaof instaQcd capacity, plus some 400 mva of intercannectmg capacity outsideof the State and 400 mva of inte connecting capacity with Orlando UtQities.Gulf Powez'ad a Z30 mva interconnection with Florida Powez'orpozIatianand 440 mva of intercaznzecting capacity outside of the State. Tampa r lcctrichad 400 mva of i~rcazmec~ capacity with H,orida loower Corporation and300 -va with, H.o 'da Power and Light, plus ZO mva with Lakeland. + loridaPowe= aZ Light bad 770 mva of interconnection with the neighboring FloridaPower Corporation and Tampa Electric sy'tem in addition ta ZOO mva oi in-tcrcozmc~ capacity -with Or~a UtQizics and 150 mva with Zacksanville.Zhr~ 1964 avc 7 000 000 000 kilowazt hou=s werc t ansfe cd ove theseLmcrcanne ctions.

At the present ~ ther'e are only two izzte connections betweenmunicipal systcz" s in the State oi 2'larida - one between EQssiznmee and St.Claud and ane between Zort Pierce and Vera Beach.

Of the two major ties betwee~ municipal systems and the private~ties in the State,, naznely, Orlando and Zacksanville, to my knowiedgeonly the Orlando inte cozmec ons have been utili ed on a fu11 poo~ basis;~t is for the iaer~4ge of Q,~ ezne=gency, scheduled inte wage andeconomy energy po~er sales. Zhz=mg 1964 the net energy Conferred out ofthe O-Mo UtZi&s Systezo. and sold under one or more oi the separate sche-dules of their agreezne~ with:-larida Power a d Light and Florida PowerCorpo~tian tataled more than 1.ZO, 000, 000 kilowatt hau=s. The net transfersbetween the Clzy of Zacksozzviile and Florida Power and Light Company wereesse~By ze~.

Ia addition, there are 3 other ~ercar cc-'ons bezwccn —uric'palsystems and ~4 p 'vatcly owned udZities, none of which howevez, to yknowledge, are = lied upon for 'g or sc'"cculcd cutages. Tncse a aZO,OQO kw tic between Tallahassee and:-la .'da Power Corporation; a 4000 'cw

e aetwce .fcw ~y=~ Beach ~ » lor'ca Power and L'ght Compa~; and aCc between;omcstcad a=d ~or da Power and Light Company, 'the capacityof whic'" I am not aware.

— D146-

It is obvious therefore, just as is ~e elsemhe e Lzx this count~,that the ~cipal systems La the State of H.crida zaxxst Eiad mays cf pcoLngthei loads and resources with one azxcther and with the R~~ cooperativesaad private udUties Ln the State Lf they are to share in the benefits cf scale,reduction La reserve capacity recpxirements aad sale and exchange of surpluseae gy and capac'ty - the inherent benefits cf modern pomer pcolLag.

T R~M~5 si on

Of cou=se the one absolutely essezz5al key to muaicipa1. powerpooliag ia the State cf H.or'da is high voltage twnszzxission! VLthcut eitherthe use, cr the out"ight ownership of high voltage zransmlssion, no amountof power pooliag is possible betmeea municipal systems and RD, coopera-tives - nor can the potential benefits cf Lom cost Yankee-Qirie power everbe realized at the Local„level without such ownership cz use privileges.

It is Lzzxaossible fcr aa engizxee" to lay cut for a group as soahis~-cated as the = 1ozida zauaicipal systezas, with so zaany capable zaaaagers,directors arri operators, some pre-conceived plan oi gezxeration and ~ns-missicn that mculd be suitable for each one's Loag razxge ocwe sumly needs.Such a plaz'a order to be properly developed, must be the result of majorjom plaaai=g ac 'vities directed by the systems hemseives La the fields oiLoad forecas~; ~asmissicn; generation; fuels resources; legal aad legis-Lative problems; ~ciag, etc.

Ve understand ~t though the auspices ci the FIcrida hfuaici-pal U~ties Association such cozazaittee work is sta~g to take shape. Afirst step in this direction was the mailing of questicxxaaires tc each of thesystems re@resting lcag-range lead and generatLon fozecasts. %'e merepermi ed to saxdy this Mor~tiozx; supplementiag i. mhere necessary withcu= omn p ejections based on population or some other basis, we have pulledtogether appro~te projected loads for all cf the mxmicipal systems Ln theState cf:"Lorida, for their su~er aad mizzze peaks a-d azuzual peaks foreach cf the yeaz's 1965, 1970, 1975 aad 1980.

The results cf these projections once again show some rathers~ ~g figures. For instance, the L965 noncciac'dental peaR demand oiaLL the mxmic'pal systems Ln the State was appra:~tely LZOO zaegawa..s.T"'s mill 1 crease apprcxiax;Ltely 800 zaegawatts to 2000 axegamatts by 1970;

1 crease another 1000 megawat:s ia the per'cd 1970-75 to 3000 mega-and mi11 increase some L500 egawatts from 3000 to 4500 =egamatts

between 1975 W 1980. Gu= aMysis also shows that the=e prese 'y ex stsabout LOO egamat=s ci diversity between su er aad wi=ter peak deeds

increase zo about 350 egawazm by 1980. This cans ~t the"is pr"sexy apprcx'~ "ly 100 egamat.s ci minter ~ capacity a ratablei= ="e =uaicipal syste s in t"e State ci = Lo='da fo" sale, transier c- exchangewith syste s outside -"e State oi =Lorida having minte peaks; and Mt t"ea=cunt ci ~s mmter ='cme= "ow available mill —ore ~n tri=!,e ove" -"erex: 20 years. - Dl47-

This aaaLysis also sho~s chat when comparing 1965. total peak de-ma"ds Co "e tocaL installed capacity of 1800 megawatts, Che cozabined capacityls 50fo greater ~4 Che Cozal peak dema"cL of the iadivldual systezas. However,assumizzg the lazgest unit on each system ls out oi service, igao~ for Chis

purpose exisdzzg latercoaaectioas, Che installed firm capacity is approximatelyecluaL to the totaL peak demand as ~ould be expected.

ALso, ignoring Msmg interconnect oa aad, pooliag contracts, aadassuming either Che largest unit ln the State out of service, or approxizaately.LZ~o dedicatecl Co reserves, the cozaL f1~ capacity if aLL systems were fullyiatercoaaecteci would increase from appro~ately 1200 megawatts to 1600megawatts, or appr~ately 400 megawatts of additioaaL Q~ capaciCy due Co

poo Ling.

Usiag this information, we have been, abLe to do some preliminarykz'ag aloag Che lizzes Chat would be undertaken by.a Transmission aad Powe

Generation Study Committee of the FLorida group aad have prepazed a mapof Che State oi Florida showing aLL of Che municipal generating aacl purchasiagsystems i=:he State. Cn this map we have showa what appear Co us Co bereasonabLe locations for both immediate azzd fuzu"e high voltage C=aaszaissionLines aad have even shown what appears Co be a reasoaabLe location for apotea~L major gene~kg site on such a transmission systeza. This map .

has been made by overLaying the federal Fame= Commission map oi prinrpaLelec-wc far'Lities ia = florida aad south, Georgia, and by showing Ln red theLocation of municipalities, the Cross Florida Barge CaaaL which, is preseatlyuader coaszmction. aacl potenCiaL C~smission anci geaeradag Q.cilities whichI just me tioned.

You wiLL note oa this a~ched zaap Chat the solicl C~sz ission Linesiatercon" ec. "e preseat gene~kg systeza. of Starke, GaiaesviLle, Lakeland,Vauchula aad Sebriag. These Qve systezas had 1965 peaks of about 140 mega-watts with iastaLLed capacity of about 310 megawatts aad lacivldual ~~w capa-c Cy'i 208 megawatts. Ef interconaecteci these five syst zas aLone would im-azediateLy gaia additional fi~ capacizy, without cons~ction of aay additionaLgeaemnng fac Lities, oi 60 megawatts or 60, 000 kilowatts. This ls more Chanthe size of any single geaera~g unit on aay of Che systems. Even at $ 100 perkw for sta=d-by or peag capacity, Chic represeats some $ 6, 000, 000 oi iza-mecLa.ta savings Chat would be available Co oi=-set'he cost oi Che C~asx issionfacilities

ou wiLL also note chat the solid C~smissioa l.'-es considered 'oredit cate NL const= c 'on. aLso coaaec a.'' e systezas Chat o eseatiy =e-

ceive their entire power supply from Florida Fowe Corpora 'on; a. ely,.~brac'a, Newber-.g, WiLListon, Qcala, Leesbu=g, ZushaeLL, Mount Qora,Ba=ow a"d:»ort Meace. Tce 1965 peak de ands oa these aine systems wasapprox' ately 80 egawa:ts, ak'-g Che cotaL peak de.. aads foz all gcaerac-'-g aad pu"chasi"g systems 222 egawatts aad Che total pooled firm capacity

D14 8

268 ~gamatts. Vaat Rs =cans is Mt if all of these 14 systems mere present-ly intercon ec.ed, the present installed capacity on the generating systezns millbe able to meet their own loads and supply. aLL of the require ents of the ~esystems that nom pu~se theiz pomer frozn other sou"ces.

A coznplaint has been. Gled before the FedeM Powez Coznznissionre<pe~ that the Federal Power Coznzoission give ten of the twelve citieswhich purchase f~ Florida Pomer Corpozation zelief Ln that the rates,chazges, contracts, Mes and egulations under which Florida Powez Coz-poration sells power to the ten cities are unjust and unreasonable and undulydisc=~Lmtory against the cities. ~czne of the restrictive pz'ovisions fozwhich coz"-plaM was znade include: (1) pzohibition on esale to mhole salecustozners, (2) prohibition on self-generation, (3) prohibition on pu=chase

'f

enezgy frozn other sources and particularly. against, (4) resale "to anyauznicipality which now has oz has had a franchise or wholesale cont=actwith the Coznpany, or to a znunicipality genera~g its own energy". As maspointed out in the coz"plaint, these restric5ons have prevented the naturaldevelopznent of lnterconne&ons and generation in accordance with soundeconoznics and engineering. The Co+many in its'nswer, stated that it hadexpressed its intent to moP~y such existing cLauses which ~y. be consideredzest=ic 've.

Thxs for the &st thee it now appears that these pu~s~ systems,in thei at eznpts to secure lower cost pome wilL not be rest=icted to ~gthei= entire power supply frown Florida Power Corporation and willbe able topurchase at least a po~on of their powe supply froze other sou"ces such as a:"lor'da M~cipaL Powe Pool. Sy showing these syste~ on the iznnxediatepote tiaL transznission, lt is not thezefoze our inzention to Lndicate that aLL ofthese systezns would no laager be custozners of Florida Powe Corporation.2'umer, it is iznpossibIe nom to si=e the transmission LLne voltages un% de-tailed s udies are co~leted and the nuz=ber of pa~cipating axunicipalities beesablished at 1east foz the mtiaL pootlng effort.

Fzozn.the znagniz"de of the loads involved, and in orde to providefor fu~re growth and &z~er, to provide for integrated operas'on with exi.~~znission faciLLties in the a ea, it mould appear ~t the heavier solid ~ns-zoission linea shown would be a zoiniznuzn of 240 kv and the lighter solid trans-znission Uncs shown mould be either 69 o= 115 kv.

You miLL note on the wp a potentiaL site fo 'a possiole single ~jorgene a~ plant. Tnis site has been shown on 6e Cross "lo=ida 3a ge Cmlbecause of t"e obvious advantages of adequate cooli"g mate, M~'xeL deliv-er'es a-d delivery oi heavy ge em~g eguipz em, i adcition to being locatedaLong e pote &Lca szniss'on 1'-es. ¹s br~s up t e very ' pow=t cues-

on - mhaz is to be the ori=ci=aL power supoly source'? Obviously, the i 'aLpower supply mouLd coz"e '-oz" the ex.~ generat'-g syste=s; p=~rily iro=Qai=esvZe a=d Lakela d mA Starve, Vauchula, and Sebring plants operat -gon an inte='-..ent base 'oad, peag and s~d-by basis because of the lamercost:=oz" the larger u='ts installed in the other tmo syste s. In order to =eet.azure oomer suooly zebu're e zs, however, several al e~tives emst as follows:

(1) Const=action by Qainesville and LakeLand af generati g plantaciditians m ally in the 75-100 egawatt range and ul~tely a the ZOO ta300 megawatt range cn a take-yaur-turn basis.

(2) Cans~e6on af a new single cental generating plant at somepotential site siznilar ta the one shawn adjacent to the Cross Florida BargeCanal, which plant ~ouLd be base-loaded with existing generation suzzplyingpr~=2y peaLcing anct stand by capacity. Initial units at this planr site wouldbe in Ne LOO to 200 nzegamatt range and inc=easing ta the 300 to 500 nzegamattange meLL before 1980.

(3) Purchase of base load wholesale po~er supply fram scz=e ex.er-M sau=ce, i cludizzg, in M futu"e, such potential regional acme" pools as thepzaaosed Yankee-Dixie Plan.

Theze are advantages and disadvantages in each one of theye th"eealte~mtive power supply sources and prog ams. Without taki=g time here todiscuss the various canside ations that would have ta be znade, we can assumethat final decisions would be made only after careful detaileci study'based solelyon econ'.cs. It appears ta us that the izznecUate and futu"e potential trans-mission Lines shown on t"e attached map would reacUly be adaptable ta ei~4r apLan af self-generation or af purchase from some regional pool such as Yankee-Dizc'e.

Ycu mill also nate cn the. a~~4d znap the heavy. and lighter cot edans~ssian Uncs which are indicated as futu-e patent'aL fadZities. These

m~~ties, especially those Lnterconnecnng the other 14 cities with the izpor-tant loads of Jacksonville and Orlando could of cau-se be built at ary ~—e~Mt feasible plans cauLd be agreeci upon. Such future potential lines wouldconnect the north anci south end af the system indicated far iznmediate poten-

con~ctian and, in addition, extensions could be made ta the north intaQeorgia and beyond. A futu=e extension cf a major line east to Tallahasseealso appears to be reciui"ed based on load praje~ans. En the deep south, KeyWest. that is, you wiLL also see a future ~nsznissicn line up the Keys ultunatelycanne~ ta the Keys Coop sys~ Aa. 8 znile segment of this line ta be con-s~cted far 119 kv anci operated mtially. at 69 kv is already Qaanced and undezc ans~ctiazz

The si e af the pote~ t=ansmissian ii es in the ce tM pa . ofthe State camct be dete~ed at this ~, however, the backbone paraLLel

fram Origo to Qai esville ta Zacksanoi11e and up iwa Qeargia wauLdce~Hy be in the esca high voltage age af 345 kv - 500 kv ar mare. "e"c ore" would depe ci 1argely on t"e pawcipaticn 'oi . pawe" pcoli=gpla=ning wi& "e private u~ties w ~4'nd cu:side of t"e State. Tnis br'-gsus ta the mL iznpara": aspec: az haw such a F1arida, hfunlc.'paL Power Poolcould gram in stre gth a d ul~ately became an integral pa . of the entireinter-coz=ec:ed ~nsmission system in the State.. And fu="er, haw .=~ci-paL systems "at iocatec on the p.'ipaL potential transmission facM-'es show=cn '"e arched ap ccuLd share in the be~'-ts o- ~~cs mcipaL power pacl—

'150

7

Fiaaacicaz aM Ownership oi Traas~s sion Facilities

ViTho would own and finance the potential transmission lines shownoa the a~ched znap? Would capacity be included ia the zaajor backbone high-voltage Mes to eet the zecpzizezneats oi just the znuaicipal systezns, or theznuaicipals plus perhaps RM~ coope~tives who znay want to pa~cipate? Moreizapoztaatly, should capacity be included in such tzansznission Lzxes to zneet theneeds of the private utilities in the state in those areas? These are iznpoztantquestions, alL oi which zaust be zesolveci before any final feasible plan can bedeveloped which is going to be oi znutual beaefi.t to all the zneznbers of the Flor-ida Municipal UtQities Association. If you wiLl exazniae the soLLd Lines iadica-ted foz inanediate fume construction, you will see that there is, in effect, aoduplication of any high-voltage tzansznfssion fa~ties of any of the privateutilities in the State. Between Silver Springs aad LaLcelaad the highest voltageexisdag ~amaission line is 69 hv at the pzeseat dzne. The line frozn, SLLve

: Sur~cs to Fort %Flite, which is aow coznpletedz although coas~cted for 240 kv,is being operateci cu=eatly at 120 br. Looking at the szaaller solid tzaasms-sioa, Laes coaaec~g such system as Sta"cue, Alachua, Newbe —g, %"LListon,Leesbu=g, Mount Dora, Bartow, Fort Meade, Vfauchula, aad Sebriag you wiLLsee m~t these Lines do not, ia effect, duplicate azzy emsti g facDities 'out pz'-mricly serve to coazplete 69 or 119 kv 1oops. These lines would thereioreprovide loop se~ce instead of the p eseat radiaL se~ce being supplied to a~er of these cozaz=unities.

I have aot had the opportunity to pard.cipate in aay board oz coza-outer st"dies on the pzeseat F1o 'da Power drool involving essen~lly privateunity transzaission.lines. Howeve=, if the interest in regional interconnec-tion continues to increase, as indicated by the National Powe" Survey, thea

assuredly high-voltage ~zaission lines sizailar to those shown forboth ~ediate D future potential construe 'on viQ be required aot only io"the =~cipal system but for the private systezns as weLL.

If the aazaicipaL system, RM Cooperatives and.the pr'vate u&-ties ia the State of Florida caa, put aside idealogical di=~ereaces, forget pastprejudices aad set aside issues such as coznpetition for new loads whe dis-cussiag powe" supp1y plaaaiag, then the entire State of Florida wiLL be thebeaeiic'ary oi such j an't plaaaiag and powe supply program Lz that area.

Because of the co~er owned system's ability to ~cc ce majorzaission anci genera~ fac&ties at lowe= capiM cwzge rates, coupled

wi=" u pr vate Dries've=-i creasing eed to eland facD't'es in the Rateoi = o=ida "eze is a z utual groped for joint pa cipat.'on ia sou=dprogza=s.I believe the =ost bene co~a plan foz "e cw~zship a~ operation oi the «~'oz

-sz=cssion fac"'='es shown oa. the a~ched ~~a, oa 'c~>rly fo "e longer4

~age fu -e pote~ fac"'es is as follows: T'"ese facDities would be cos- c:ed aad '~ ceci usi g u-'cipal ~ cx~pt cones. There would oe awpiecapac'.J pla=ed 'e construe-'on oi these far"ties to eet the "eeds oi thepr'vaze u-"-'es for z=aasierz' oower aQ e ergy to their load centers oversuc" fac"'-es. Corz spo~c- Lv. aczeeme ts would 'oe ego~et d with the

C

D151

private uMlitias foz'he delivery of powe by. displaceaxezzt over the p .'vateuMliMes'msMag aad fuax=e t~zzxissioa linea to those axuaic 'paliMes shownelsewhere ozx the a~ched asap that are not withia a reasonable t"aasmissioadistance froax the baclcbone zaaaicipally financed fanatics

It seems to zae that the poteatlal Msts right today for worlciag outsoaxe ecpdtable arraxxgemeats with the private utiliMes whezeby the ezcisMaggeaeraMag ~c'pal systems could aom exchange powe 'aad energy over theprivate uMlity lines.. Tins would, or cou=se,. in most instances, recIuire inta=-coaaec 'oas with the private compaay iaciliMes such as those shown on the at-tached map

A the present time, the. aide of the private utUiMes is oae of~ezae rela~ce to such izzter-connections aad pomez pooiiag agreements.However, the benefits to the private compazzy systems: aad the axuaicipalsystem are fullyproven. Perhaps axost of you are aware of the FederalPower Ccz=ission study of later-coaaecMag the Florida.Powez CorporaMonsystem with the City oi Vauchuia. The City oi GaiaesvUle is iavolved inprocee8tgs oefore the Federal Power Cozazmssioa to requLe F1o=da PowerCorpora 'oa to Later-coaaec with thei= system so that the mutual benefits of i

'uchinter-co~cMon aaci pooliag can. accrue to both. systems.. It appearsthat the private uMliMes have coafused the fac s whe~4r or not benefits-accrueto both pa es with the deg ee of those beaeats. Their altemtive pzoposalto purchase the. Vauchula system and supply their eaMre r'equiremezzts rather«~ iver-connect with them is, of cou=se, ao solution at aQ.

The actioa zaLcaa by the ten systems that pu~se frozn FloridaPower Corporation ia banding together should be a st=oag indication to theCoazpazxy that the zaunicipal system's in the State of F1o='da have cozne ofage aaci ~~ they are hez'e to stay. The developaxe t of sound major powege~raMon aaci transmission plaas by" a larger segment of the Flo=da &zuni»cipal MM.es Assoaatioa wiQ be. a &xWer ication of this detemxaatioa.Fu~~ ~~, "e ~zmal benefits that cazx be dez a~ted to the pr'vateuteri es willao longe be so small that they caa be ignored ia the light ofsound economic, business aad engineering conside~tions.

K=ce the Ninth a=azal meeMag oi ZMUA ia Sac'csonviQe at whichpower poo~ was so.much discussed there have been sigaiZcaat develop-

ew iadica~ ut p og ess in a4's Geld is goizxg to be rapici h.Florida.

The CiMes oi = ort Pierce aA Vero Beach w~ve coaex=ared anag e em which, by Qecembe . 1, 1967, ~ 'rease the capaci g oi theirprese ee "-e «o ZS,OOO inc at 69,000 volts. Tie ag= erne~ provides:or

poo~ wi " respec: to dedicaM.oa of reserve capac'.g, and includessched-'es for 5e pxxwse a d sale oi sualus Q~ power and e ergschedu'ed ~msaaace e ergy aw economy e ergy.

D152

On Friday, May ZO the Directors of ~i'et and foxed a

pe ~em Cmaittee on inter-cozmctions with the following appointments:

Tom Bostwich, Zackaoaville, Chai~anJohn KeQy, Gainesvil1eCurt Stanton, OrlandoDan McLztosh, - LakelandFred Gossett, Ve o BeachZoe Dykes, Tallahassee

Tax=ough the action of this comznit~e, 1 am confident that thetneznber syste~, and ~ interested ~ cooperatives and private untieswiQ soon have-an oppo~ty to review definitive feasible plans for proddingthe anxtual bene" ts of la=ge scale pooling to all segments of Florida's elec-tric utility mdus~

D153

IALCEILILOIL4>NAC IEAVLEE

Ilk I I OCT

I IOTA L I'LkK

SIN +4~ii'. IIEAA'5

~ I AI I I

gl IB

IldlIII

CLE+lSTOH

IIIC~1

IEO OI»ONION IOalWI»g ~

~ II!Laoll!CE|ltIIUl.TEETAI. I'Ckll

lOIIAE,IOE»TAI I L'llCkl'kl ITTIHEA'Ellklkl ~ IALICkl'ACIIT

DC 11CIL'E LCM

I»LIE LO» IllOl Ckl'kLITTlIL' IE.IO:OICT

AEIOLCEO ~ 14 N IAIC Tll 144EEOIAI

L'LICE If»BI»itl»ILU».IEOTAI. I'CAIL

I IN!!4lt:II!1IIIAH.1»IIAI~ I'I'A!I~ Illkl I'»411 Clo ~ lkllI kl Al I ETOLOICI»14'T

lll~ llll 11 ~ 'I

IIII IIII IIIIIIII IUI IU'IIM I II~

llll Illl llllIN I ill

OIO IOA ILL

III Ill Wl

Itll IHI lkl'IIIII IIII INI

III I~ II

~IIIINIIIIIIll1

II\IIIlk

LEGEND

2G—

go!oak

IIIIIIIITI

IEOEE 4/

~ O OOI~ N

(J I 14444 I»4L

I. 'I'Pl. I~No»!IO

~ >—26I ILOEIEI

~ IEN»4k

~ EOIENYIAL EIIAIINIIIOOOII LINES- IMMfDIATE CONSTRUCTIONaalssas POTENTIAL TRANSlllSSION LINES I II»»O O4

—fUTURE CONSTRUC'TION )loMEsTEADMUNIC!PAL GEIIERATINO PLANTS ~ OO

WEEDSIlUIGC!PAL SUUSTATIONS OR I .

POTfNTIAL DELIVERY POUITS E

EEET'ROSS

FLORIDA BARGE CANALf~ 4 O~

~IcEIIIA!EC NTER-SYSTEM Tlf~ONO ~ %»r

~rPaml4TlAI aORlOA gulClPAL POWeR POOt

~OEENOAS Al

KEY wEST

Ivory ll. LCD

& t.0" ti:t'. Vli't'".i'„.:,Cii;; t: tiki[- lm: mlitt tt~nt a.<

r'~j-L/gI) V'pe ~lo~ 5 e+i~4

M:. C:yea A L'"y, fr.

C

I~~ cl yac w~ alt ~ =Wacs aC Ger.

typal,&.

l

Mt=a" cf -~- - ~c ""a=a e -~ ia yes ~vc "' ~~nest ca~ of ~n ~o" ~. ~~ .='.t'- ha-to'~?~Peel", W~W Rb Cari~ of 2-"~Mx~~ ~ +@vent

cf ~ ca -"'uc.~ch"- ~~ m~V~ C"~~" ~ ~ of~

hl5 5cacs ad' ~adit 4& 0 dim elhit

5» CTCC 1 L. ott ~~Q» M h&tQ Sc".~~ ~ceo~ hv ~~ C™Ca~iaa of i'-'-w C'~ u mvCa ~ M-w a. '"ci a-"Jahf" - ~~ elec - W~sym~ ~ =""-~Uof ott." ~=~~ '~ c~—m La A.~' I.ÃR.

hMh —'"--" ~c' v - ~ 'x c.'~~—w t'ai"p cm~g%WC'7LIMIMcL~[Lhtvccu= ewe pacc3t: .'=-.~ ~ c= ~ .~a C'~ =ot=-=t" ' C-~~ o"

Mof m w " —so- a m so "- ac m e cL"= z ~ ~

~r w o a~ti prt~ g ~t~ m~eA ~ 5~t~l »' t »e j'~eI ace" cf~ —- — m otic ~-.~ t m c~~ c~~ c~

"act " M P54~".a ~ I — IVI

Axy~e'g ~or Jdl&, I J~ma~»~ r» at a+ ( g~hl ~en et~r /

I(og g>M m ~~ ~r I 'a~ ~ ~ I~ «~ I~tl'+~ c~~~~

l

t(' t ~ ~Wi

- D155—

) ««« ~ ), ~'» P A «~, %«VI« ~ 4)IA

~ 4 'v« ~ ~ lo~ 'e«o ~ «Aim f ~v «) )««so» '4~ ~ 4

)

~\'.'

~/'~ '-~ i~i «vneri) y oC dLJtrtbacian zzzd)ar goucrsc~n «ad ~c~&u~5 ('~ ~o elcctria f~izr Ls, ."assihlc« " 'r vbamr tha ~~z-~)n ioui)L b

~ 'z LJ yraL'Miaf sA t za) bov ~w itshlaf ts mc'xe attar.F~)M rayor.'s oj citiasz 'aw Ls co )admc&n g&cn oa mdabcadaass of !ha various ~)iyaL'-'as. 7m ntLLare Ls based onvast evatusc<nt M~c Ls t a ca)z cy tsz A ya y ) 'e cMcy acaives

~m a miciyaL oc'Li«y cyerscica. iaaf ts ca zcaadcrd z=aeh~ yrccah-.a used by «L'yaii 'as so~ od tw~tbLL™'zso dapa~ats ovcrisp zad ~Lay«as are used bccJaezzdeyart ~ ~zma breakacvus zaJ -asm o8 va wus da-a ~s aravaja za" h zaa ~)yaL'a ara am~teat. Czcseftuenciy,

'ia«ac~)ssihta ca «~ad m'~ s-d anmt~ 9= «na ce "7ta zan~4 PM zny d)z~aa oJ ac=cracy.

ar «+zgj

Of CLL ~ ~~faced ~a"-~ ~ ~ gita a - da LassM LQ ~sac «iw and oyersca ~i) «Lac ~a WC~~ac'an «yacc.~ ~ar CJ ~) )yaLLy ovna)L ciao-~m overs~as )m thia0 'tadCcscas hs been. deci~)-)- ac a steady yaca shia sri)d5a Lssc LQ-yea= yer'cd, .'a ahtch =-"urea ~~a z~

a~his'No

-.&65) )) ~ya~~ veac om oJ ~casa 6 za» hia«ye sc as i%~~ Qi ~ ye~~~df Z ) af «f

-aac ~ A ~ Lac " 'z" " -listless "as= )- 4 o ase2X ~)ya"tits vo a zhta Ca'yfz. hase ~Jar '~ Co))e~ sooasorad,

ad yover yooLs such as ..T.A ) bsc=~~f, eca 0cAsa z«) on y 3 ea ersd t)aca M ga ars ~'o««Laa» ig~ «a» scscas ~t. "~ advene oJ cciac gaaers~ ~ ~ «seab-

ed f~—.-. -a=« sc'-«y~ vii''-a yrababiy cilia !hac 1)zc '~ pavo ~ ecc 4 4 %a ~ $c sL oi

obee=taciaa, bua Lc zhouid ba yotacaft «uc cMi ~i Za4. d=~~)Zaae=?Joi «coyotes sn tait<L geant'-- «Lzac tn -ai LCO = RQQ cats«vat- rs"-c -" '-—«as'- a ha 300 !a 500 —sz:--- rsaga veiL beforeL«80) vh''a «asti~ cits azv La service )«!ia: iori='- y-.Jar ?ooLera oC !hw 5CO !a 5CO mC=Jacc . va vi h ua' ' '00 !a 8 0 ~ga-vac=. acr-a nza under «aust=ation «ad ca be )a serrtca soon ~ -"'dezzcCLL7) chase Lc ar A cs cia «as~ t«) ass oC 4»Q)CCQ ~ 00 eschfSv «oui') -" exyeast.a d'gttcs-4a og )~«st=«ac ta f=-'''es «an-~«od oucdts< —cd sian od ffzaarsr~) —yta"=s ss y y.sed by cha

C«cyy Tha 5C sr i«d«,~fc s p«Je«2 oi ic erat $ ytsc sdtcscad rJ«CC L f cad utch !ha ! «nandaus r its o')~g «cdca))st~ 4 yL» cd N Qs n Ug a b'«dan a pzvethe zcacf «auaicd e + ho 'her «as od fsao ac«za by hs zaat'wrsi=a cf (LCO Ca CCQ A(rvctt r=vc) rcui'csuLc tn pwer «ast~rKta !han yora zuz»)lie 5 !ha yraseasty w~>ci Q ~ ytdLy gAWzlor'da ~~ y oL

D1S6

~ » 0»

TA Lars'AL ~7«'>L H «aasultag.~~war~ c'~ EEa tccct La «ha recur- is «aa chsc LA'cs Lcs yrscc'"s 4 Caveat-

s""'over-L Stoa"u& speal ~~ «auld h~',~ ba L -salad sstables«d.,bala LIVE&hood ~ very cs'-c~ Ls based ocs ~jaasLocL oE r~scdsRL sad ochsr Cuva~ml 4 t iicy «vs= -a. ~ay

slscs @~A de"Ress od»ht 5 a "md'sMc<c4c ~Jar ~ALi ta ~&vajec bo revLEct E r~r milt by ~ Clm ~c CLcL mc 545-Rsc e~aas'm

or ~+ «~c~g og tact Cu~~i 0

'Ra~™csa Whl'«aer Asso~tclca w s ~da o~s~c~t «at«@<sadact tly of Cuva~c mad sad Cove~ac 55«~ --'''~ gras

ILc 5-dna Ceaarsi ~i 5+ v~ vs~ g Laoa ZshLs ~>LRC as

"a sss~~'s spskssaaa limy «~LC Roc ba cls=sC.4d ss aMsstd ~~-'ss «ts ~t'"EL eyaac'=as. TK

g.= W od ~ ~~~ «shL'" s«cter Isso~ciisa '~ vhlch ~

vt ~i Livcsc ~ ood iA syaaayaoas vt w ws 5+ed~ cf CuctarDoc La 4 roJar bus CAN s

~ tedorsl ?«Mar i ~sioa ~~ ]cs mdi-='«4 Rva vmlasaLa, @mar massbac Ras -4 ~~ 4 ss~~ih haarsrss.

cL ~w so~cd "7c'Lc'ys lamed Ls sac s «~reheat(va, awr buc ~w

cccc sd 5- s~~sss Calid s ss=aLL Ea baaadat- ud E 'cy 4 ~"p~Ls"d Zocs~ C'uh ~ my, L5dh K.. Phl"'ps Ls m L«ager C~L«yecLby ~~ ~~ .f Lshals"» aA 5- rha ~ od ha sddrtss bsd ~7 .EaaLa wA E plot o' C i it@ years t Lc ils Ccuhc JL «hachavr oh&Wd cc74 Mctlsdgs od pa C'' ud i 7 op~

oc

she'al ba 5«sd ouc ~ Js REct ~tc™tcL7 «cl ad ELEc sutra' ~~va b«ta srs ad m "c dcsca «Z,=Lor m m -m~ basic N yearn'MR™ «(c sL sysctas vsrt scsz sd h 4 (Erc/ 4 od«Reasy vd«so ofAc 5ourc\ od «lac ~ul 7 vas svs'bLE..esse «8«ha ~<Calo»E =~L «is«c~c syscM 'a . Lord& sra fr)a EM«4 ci~.mi fi - i ~ ocsar»ming yrsbLEscs ~~a mogd

Lca usda 5 sss .7 by cha "TlorLCR 3«c~ srt «~c ~ 5rabs~-oc sc h ~ hs 4 sc sysco s a v LE 4 u VL « asdvaacad s c~viqcsss «~~ad by s ~~ ELE« ~= sys-"-

D157

~ lI

1

US a

~ ~' ~ ~'

~ ~C

P 1199

l

j=.- -." -,::

~ IQ y~

~ ~0~ ~

~ ~ a

4 0 0 ~

'C

CClC4

IM

CtOPf% ~ 0

~~am ~ we ~~/ST~

Mr~ O ~ma~ 4 ~ gc

D158

EFLO)™ilOA PC'Vi'E~. ~ ~ L1CHT CCtit~rAYY

Immit:n OFPIC= COIlfiCSPOi 4OI iQQQ QQ lg~

fair. i4i sna 1 1 i i~~oni~ ) ~%lid s laH i ami, Fl or i daOcccmber 21, I f7l

n ~ 4 ~ iCOPICi TO

p /)

~ ~ln ccnacctIcn vII'.h cur disc ss ion- this morning, 1 am at. achingtwo I ems >ah I h you may v<i sh to exar.:ine;cr background inroad-„,at ion.They have many ihings in c"—..."n as you Ivi 1 1 note.

Th =irst, cat d Fiay ), 1971 is'Soul d set vp munI cl pal electrIc~ould be a 11~ed to co bus inesscurn ex i s " i ng ancf ace P ac i 1 i i i es,systems IIke curs.

a Bi)1 proposed last year munichcoop . at ives. These anti ti esand make agre"-.en ts us ing the i r

as we 1 1 as I'ac 1 1 i i i es caned by

Tiae second i te, circa 1966,mun I cI pa 1 c "sul tan ts advocaYou may no- wish to read it a

under i in C in r ed sc„, oi he

is a paper presented by one o= theing a Florida muni,ci pal pc':~er pool .

1 1 ~ but the mPp i s a mus t. 1 lievesaiient points.

~ ~~ ~

H. 'V. Pag

essA t tac."~ien ts

i ~

\

i

I'

4 * ~

~ I ~ Ql

D160

~ . 'L ~

THE YANKEE-DIXIE

COORDQfATED PLAN

FOR PROVIDING LOW'OST POWER

TO THE EASTERN UNITED STATES

A.DESCRIPTION'E THE YANKEE-DLXIEPOWER. ASSOCIATION, INC.AND ITS OBJECTIVES INCLUDINGTHE DETAILS OE THE REVISED

'CONCEPTUAL ENGINEERING STUDY MADE FOR THE COORDINATED PLAiV

JUNE 1966

D161

a

I

~ a

b,FRONTISP IECE

~ ~ ~l

I

~I

I» ~

ta Iltaal,

IO4eala g

4

aII

ITT ~ a

/

Aa«C~

a

~ '

'a «%.

~ ~ ~ C ~ r ~ ~ a ~

Taaaa Caaaaaa ISO Iel

D162

Table of Contents

Page Number

r. zoazwoan

Purpose of This PublicationOrganization of PublicationHistory of the Yankee-Dixie Power AssociationMembership ia the Yankee-Di~e Power AssociatioaSummary of the Revised Conceptual Engineering Study

778

10

13

IL REVISED CONCEPTUAI. ENGINEERING STUDY

~ ~

Introductory RemarksThe Coordinated. PlanConsumer Owned Utilities Considered for the PlanEstimated Future Power R~uirementsBasic Assumptioas for the PlanGenerating Facilities and their Estinmted Capital CostsTransmission System and its Estimated Capital CostEstimatei Cost of Firm Power Delivered to Local AreasDiscussion of the Yankee-Dixie System and Costs

13

131417

27303544

ZPCHIBITS

Froatispiece (Map)Number of Consumer Owned Utihties in Tweaty-Two,St .tes

East of the Mississippi RiverBulk Purchased Power Costs for Consumer Owned Utilities in

Twenty-Two States East of the Mississippi RiverEstimated Future Power Requirements for Consumer Owned

Utilities of Twenty-Two States East of the 5fississippi RiverFPC Statistical Regions and National Power Survey

Coordination Study Sectors

16

18

21

Dl63

Table of Contents(Continued)

V Assumed i%et Generation Load Duration Curve, Yankee-Dime SystemVI Allocation of Demand and Energy to Local AreasVII Capital Cost Estimate for Base Load Generating StationsVIII Capital Cost Estimate for Peaking-Reserve Generating StationsIX Capital Cost Estimate for Transmission and Substation FacilitiesX Simplified Substation DiagramsZI Capital Cost Estimate Summary for Total ProjectXII Annual Fhed Cost AlternatesXIII Base Load Thermal Stations Production Cost EstimateXIV Peaking-Reserve Thermal Stations Production Cost'stimateXV Average Cost of Power in Local AreasXVI Yankee-Dixie Power Association, Inc. Organization

232526283234363738394347

D164

THE YANKEE-DIXIECOORDINA.TED PLAN

FOR PROVIDING LOW COST POWERTO THE EASTERN. UNITED STA.TES

I. FOREW'ORD

PURPOSE OF THIS PUBLICATION

In November 1S65 the original Coordi-nated Plan was published to explain theobjectives, organizational structure andconceptual en~sneering aspects of theYankee-Dime Power Association. Since thisoriginal publication, Yankee-Dixie has re-ceived wide support and. consequently theorganizational structure has taken moredeBnite shape. Also, utilities in additionalstates west of the Appalachians have join-ed Yankee-Dime and the technical andeconomic aspects of the Coordinated Planhave been broadened to serve these areas.

It is the purpose of this secondpubli-'ation'o

present an up-ate picture ofthe Yankee-Di~e organization and a Re-vised Conceptual Engineering'tudy Eorguidance of the Board of Directors andmember utilities. It is hoped that it alsowill provide a backyoun8 of informatioato any other utilities that may desire tobecome members of Yankee-Dixie.

The objectives of Yankee-Dixie, as statedin the November 196o publication, are asEollows:

"The primarv objective of the Assocu-tioa is to provide the lowest possible

bulk power cost to the eastern UnitedStates and some of the adjacent. areaswest of the Appalachian highlandsthrough the latest developments in elec-tric power technology. The secondaryobjective is to forge a strong organiza-tional tool capable of fulfillingthe ulti-mate primary goaL Since low cost powerautomatically means giant power, a planto realize the goal requires large scalecooperatioa by means of a cohesive or-ganization having vision and tenacityof purpose."

The original objectives apply today andwill apply as long as there is a Yankee-Dixie. The adjacent areas, of course, havenow extended as Ear west as IHinois and anumber of important organizational toolshave already been forged, with others inthe making.

~ 0 ~ ~ ~

ORGANIZATIONOF PUBLICATION

This Foreword is devoted to basic in-Eormatioa about the Yankee-Dixie PowerAssociation. The Revised Conceptual En-gineering Study (Section II) of this publi-cation describes in detail the technical and

D165

— 99Ta-

-

economic features of the Yankee-DixiePlan for distributing the benefits of re-liable, low cost bulk power to all types ofutilities and consumers in the easternUnited States and as far west as Illinois.A summary of the Revised ConceptualEngineering Study is given at the end ofthis Foreword.

~ ~ . ~ ' ~

HISTORY OF THE YANKEE-DIXIEPOWER ASSOCIATION

When and where the complete pattern, for the Yankee-Dixie Plan originated would

be difficult to ascertain. Planning of thePacific Northwest-Southwest EHV Inter-ties cert unly stimulated thinhng on similarapplications in the east. Early conceptsof giant power for the eastern UnitedStates included everything from dreams topreliminary studies of mtensive but un-

ecific power grids for the purpose ofeviating depressed economic conditions

in the Appalachian area Harry Caudill in

his best selling book "Night Comes to TheCumberlands" reasoned that coal locatedin the Appalachian region could be mined,delivered to a complex of steam generatingstations, and the power produced trans-mitted over a high voltage system tomarkets along the entire length of theEast Coast.

Engineering studies have been made andsome concrete planning and constructioncompleted by various investor owned util-ities, TVA, and others for limited EHVinterties between systems in the easternUnited States. Nothing approaching thescope of the Yankee-Dixie Plan has pre-viously been suggested. The National Pow-er Survey emphasized the tremendous sav-ings in power costs possible through pool-ing and by EHV grid systems extendingover large areas. Technological advance-ments have now made possible such gridsystems on a broad, imaginative scalenever before considered feasible. In late

~ ~

'«.NS4i1

+/

II

'~ ~

i

I

I

I

1964, 'aBer reading "Night Comes To TheCumberlands," the eagiaeeziag firm ofLaramore, Douglass and Pop con-tacted Harry Caudill with the germ of anidea for a coordinated EHV eastern net-work supplied, by large mine mouth gen-erating statioas located in the heart ofAppalachia. It was from this point that the,outhae of the Plan begaa to take shape.

On hfarch 8, 1965 the basic Yankee-Dixie Phn was presented by Lazamoze,Douglass and Popham in Washington, D.C to a group of management and eagi-aeermg personnel representing a numberof municipal and cooperative utilities fromiVew Englaad to Florida. The reception tothis preseatatioa was so enthusiastic thatthe utility goup agreed that same day toform an association dedicated to makingthe Plan a reality. A. Steering Committeewas formed, various working committeesappointed, and the Yankee-Dide PowerAssociation was boza.

During the last year since the formationof Yankee-Dixie, considerable organiza-tional work has been accomplished. A num-ber of Steering Committee meetings havebeea held'. The Legal, Finance, Publicityand Membership Committees have com-pleted a number of important tasks in-cluding the drafting of appropriate legisla-tion to facilitate the building and operatioaof the proposed Yankee-Dixie System, theraising of interim financing and the or-

tioa of a membership dzive. Lastall invitatioas were issued to the principal

investor owned utilities in the easternUnited States, aad all of the consumerowaed utilities in the same region plussome of the Middle Westezn states, to at-tend a general meeting with the objectiveof briefmg all interested parties on thebasic purpose and concepts of Yankee-Dixie. This meeting, held on November

18, 1965 at the Washington Hilton Hotelin Washington, was well attended aad re-ceived by over 200 representatives of bothconsumer and investor owned utilitiesserving mo't of the states erat of theMississippi. A considerable amount offavorable publicity was disseminated bythe press, TV and radio.

On iVovember 15, 1965 the Associationwas incorporated as "Yankee-Dixie PowerAssociation, Inc." Mr. H. L Spurlock,Maaager of East Kentucky Rural ElectricCooperative Corporation, was. electedPresident and i%fr. Frank H. King, Man-ager of the Gas 5 Electric Department inHolyoke, iifassachusetts, was elected VicePresident. Other officers, members of %eHoard of Directors and the vazious Work-ing, Committees are given at the end ofthis publication.

Yankee-Dixie is a going enterprise.Through this enterpris, men of broadvision and teaacity of purpose can brmgthe Yankee-Dixie Plan to fruition and pro-vide a basic low cost bulk power rate tothe entire Eastern Seaboard and as farwest as the Mississippi. Such men, repre-seatmg a wide geographic distributio ofutilities, are now a workpmg part of Yankee-Dixie. More utilities aad their representa-tives are joining the effort evezy month.The need for a Yankee-Dixie giant powersystem is unquestioned and a gocd casecould undoubtedly be made for its con-struction as insurance against aaothezNortheast or simihzr widespread blackoutwhich would be a threat to public healthand national secuzity. Use of electxic pow-er in the heavily populated regions eastof the Mississippi is eipected to multiplyby 2 to 28 times through 1980. This de-mand must be met aad it must be metsafely from sources of power economicalenough to provide stimulus for the coa-

9

D167

tinued development of this important areaof our countzy. Yankee-Dixie Power As-sociation, Inc. is an organization that isproviding the impetus required to ulti-mately realize, for all of its members, thereliable, low'ost bulk power that willbe essential to our national economy inthe dosing decades of the twentieth cen-tury.

Since the bulk wholesale power cost forconsumer owned utilities in the coastalplain of the United States east of theAppalachians generally has been higherthan comparable costs in other parts ofthe countzy, it was cpdte natural thatthese consumer owned uti1ities would in-ithte the organization needed to meet theirneeds. The original Coordinated Plan wasdesigned for over oo0 consumer ownedutilities in the 17 states of iiiaine, Mas-sachusetts, Vermont, New Hampshire,Rhode Island, Connecticut, PennsyIvania,New Jersey, Maryland, Delaware, WestVirgini:z, Virgmia, North Carolina, SouthCarolina, Alabama, Georgia and Floridaplus eastern Kentucky. Consumer ownedutilities in New York, Ohio, Indiana, Illi-nois and western Kentucky have smce ex-pressed an interest in being included inthe Plan and many of these utilities havebecome members of Yankee-Dixie. TheRevised Conceptual Engineering Study asdescribed in Section II of this publicationhas now been supplementei to include theconsumer owned utilities in these otherstates and the usted Plan includes 22states and almost 1,000 consumer ownedutilities.

Although consumer owned utilities makeup the entire membership of Yankee-Dixieat present, the Association is not restrictedto this type of member. Overtures havebeen made to investor ownei utilities inthe area and they have been invited to

join. Continuing efforts will be made inthis direction since industzy wide coopera-tion will distzibute the beneBts of thePlan on a broad basis. Such cooperationwill also be in consonance with eBorts ofthe Federal Power Act which directs theCommission to "promote and encourage-interconnection and coordination" of elec-tzic utiBty systems for "-the purpose ofassuring an abundant supply of electricenergy throughout the United States withthe greatest possible economy and withregard to the proper utQLzation and con-servation of natural resources-."

~ ~ ~ ~ ~

MM3ERSHIP PT THE YAVKEZ-DIXIE POWER ASSOCIATION

irfembership information, applicationforms, and fee schedules are available at

.Yankee-Dixie headquarters in WinchesterKentucky and locally at the offices of mostof the ivfunicipal and REA CooperativeStatewide Associations.

10

D168

~ 4

Monies realized from membership feesare used to defray the cost of operationsand to finance the detailed legal and en-gineering studies'ow being undertakento const'ruct the legal framework, finalizethe physical plant and prepare the econo-mic analyses required for obtaining financ-mg.

All utilities in the area coaered by'theYankee-Dixie Plan are urged to join theAssociation. It is the best guarantee of ob-taining future lorn cost bulk pomer forthose utilities nom burdened unth highcosts, and of retaining lorn bulk pomer costsfor those fortunate enough to haae knocosts at 'resent.

The lack of specific action to date onthe part of inaestor oumed utilities in re-gard to participatmn is disappointing.Yankee-Dixie can, and mill if necessary,promde lorn cost bulk pomer exclusiaely toconsumer oumed utilities. Planning at pres-ent is necessarily proceeding on this bmh.It mould, homeaer, seem more in harmonyunth the National Pomer Suraey recom-mendations and the best national interestto haae at least partial cooperation frominaestor omned utilities to take maximumadaantage of the ZHV overlay that mill.be proaided by Yanke'e-Dixie. The inaita-tion for inaestor omned utilities, therefore,is still cordially ~ended and miQ continueto be extended in the future.

Here is a new concept for Appalachiawhich presents a comprehensive Plan forutiBzing the vast mineral wealth vrithinthe region by exporting the convertedf'mished product rather the raw ma-terial but mith part of the mealth generatedremaining behind for local deaelopment.Yankee-Dixie proposes to improve thisregion rather than to exploit it. With therevised Coordinated Plan, the economicbenefits will extend into the heart of the

great Middle West and a true intercon-nected EHV overlay will reach from iVewEngland to Florida and from the Carolinasto central 'Illinois.

Low cost bulk power and reliability ofservice remain the prime objectives of theYankee-Dixie Power Association. If, in.reahzing this plan, a by-product as siyuEi-cant as the redevelopment of Appalachiacan be achieved, this program will trulytake its place with other major achieve-ments of our age.

~ ~ ~ ~ ~

P>pre

SU&bGMY OF THEREVISED CONCEPTUAL~GZNtZH~G STUDY

The Appalachian highlands of the east-ern United States are blessed with one ofthe largest, relatively high quality coaldeposits in the world. Roughly speaking,this coal region extends'rom northwesternPennsylvania and eastern Ohio down intonorthern Alabama; it is called the "EasternCo< P ~~ App~~ R.gon." J~to the west of this coal region is a secondmajor deposit which extends from centralIllinois dawn through the southern part

I I

D169

of the state and southwestern Indiana intowest Kentucky; this area is caHed the"Interior Coal Province," Easteza Region.Although the quality of its coal is not asgo'od as that of the Appalachian Region,it is emineatly satisfactozy for electricpower generation purposes.

The latest Yankee-Dixie Plaa envisionsfour 2000 mw (minimum) mine mouth,coal Bred generating stations located iathese two major coal provinces east of theMississippi; 'tentatively the stations havebeea located in westeza Peansylvania,eastern Kentuc+, northern Alabama aadsouthern Illinois or southwesteza Indiana.The four '

base load generating sta-tions will be interconnected with a com-plex network of extza high voltage (EHV)tzazzszaission lines which will feed loadcenters in a 22 state area from New Eng-land to Florida and as far west as IHinoisand Alabama. Large, low'ost peaking-reseive, residual oil or gas buzaing steamelectric generating units will be installedthroughout the local areas to provide eco-nomical peaking power and area reserve.The estimated capital cost for Yaakee-Dixie is L884 biHion dollars. Over lo 000mw of power and nearly 60 biHion kilo-watt hours of energy will be delivered bythe system to local load centers.

Realization of the Plan will result in astrong, coordinated system that willutilizethe economical fuel reserves of Appalachiaand the Middle West to distribute reliable,low cost power beneBts throughout mostof the United States east of the Mississippi.When coordinated fullywith existing largeutility systems, the Yankee-Dixie systemwill provide an EHV overlay that willsignificantly contribute to the reliabilityand stability of the overa11 power com-plex of the entire area.

The average or "postage stamp" de-livered cost of Bzzn power to the local loadceatezs at useable load factors is conser-vatively estimated at 4.5 miHs per kilowatthour. This is lower than most long rangeestimates made today for high load factorpower in the eastern United States.

Although the Revised Conceptual Engi-neering Study presented in this publica-tion made no attempt to estimate localwheeling costs, they will probably rangefrom 1 to 2 miHs per kilowatt hour orpossibly more for some of the low loaddeasity areas remote from the EHV step-down substations. Realistic delive'red coststo user substations, therefore, caa be fore-casted at o.S to B.S miHs per kilowatt hourwith 7 mills perhaps beiag an upper limit.

~ ~ ~ ~ ~

12

D170

IL REVISED CONCEPTUAL MGINZHUNGSTUDY

, ~

IJ

'3I

3 e

PPCRODUCTORY REVGGGCS

The magmitude of the Yankee-Dnie Planhas expanded both geographically and inmembership since the original broad pres-entation by Lazamore, Douglass and Pop-ham (LDP) in bsarch 1965 and the firstofBcial publication of the CoordinatedPlan dated November 1965.

Early in 1966 LDP and its associate en-gineering Brms (listed at the end of thispublication) were authorized by the As-sociation to revise the Conceptual Engi-neezing Study of the Novembex 1965 Co-ordinated Plan. The g3udelines of the re-vised Study were established to (a} broad-en the Plan to include consumer owneiutilities in the four states of New York,Ohio,'ndiana and. Illinois, plus westexzz

Kentucky, thus increasing the area from17 to 22 states; (b) eland the physicalplant to provide supplementary geaera-tion and transmission facilities recluiredfor the utilities in the additional four states;and (c) explore the possibilities of de-liveriag Yankee-Dixie power to &e vaxiousload centers oa a firm basis at the actualuser 'systems egad factors (the originalStudy"assumed that the outlyiag EHVsuhstations would tie into local sub-net-works which would, in turn, provide areapeaking and reserve repurements).

The Revised Conceptual Engineexing .

Study as presented hereia has been pre-pared using the above guidelines.

As was the case for the original Study,the revised Coordinated Plan has been de-signed for a sp~c youp of consumerowned utilities in the eastern United States.The interested consumer owned group has

already increased; furthermore, investorowned groups may ultimately participate.So the magnitude of the Plan may changeagain and many of the details (such as

number and, size of generating stations,~ amount of transmission line, etc.) probably

will be modiBe3i before arrangements forfinancing are completed and constructioncommenced. Neveztheless. the fundamen-tal concept will change very little aad theeconomics presented in this publicationappear to be rewonable and on the con-servative side.

~ ~ ~ t ~

THE COORDINA.TED PLAN

Most utility engineers in the UnitedStates have heard of the Yankee-Dixie Plansince it was Brst anaounced in 1965 andhave a geaeral idea as to its broad per-spective. The following paragraphs willoutline some of the t 'cal backgroundand economic details of the revised Co-ordinated Plan.

The Frontispiece map of the eastern partof the United States indicates the approxi-mate extent of the "Eastern Coal Proviace,Appalachian Region" with the relativelyhigh quality coal deposits extending fromnorthwestern Pennsylvania aad south-

'astezn Ohio down into northern Alabama.To the west the "Interior Coal Province,Eastern Region" is also indicated on themap. The fundamental idea is to locatethree very large thermal generating sta-tioas right in the heart of the Eastern CoalProvince and a fouxth large station within63,:'3

the Interior Coal Province. Tentatively,one station will be locatei in westernPennsylvania, one in eastern Kentucky, oaein northern Alabama and one in southeraEinois or southwestern Indiana The fourstatioas will be tied together with 500 kvEHV lines. An interconnected EHV net-work will spread out to load centers fromNew England to Florida and as far westas Illinois and Alabama. Large, low costpeaking-reserve units will be installed asrequired throughout the local areas toprovide economical area reserve, peakiag

~

~

wer and reactive power during heavye loading periods.

~s gs

~roAS ~~&

Thus, a complete EHV network over-lay willbe superimposed over most of theeastern United States. It will achieve allecono'mies of a widespread interconaectedsystem and, at the same time, willpermitutQization of the extensive, economicalfuel reserves of Appalachia and the MiddleWest for distributing low cost power bene-fits throughout the most heavily populatedarea of the country.

That is the basic plan. Simple in con-cept, but not so simple in its details.

CONSUMER OWiiED VI'ILITIESCONSIDERED FOR THE PLAN.

Only consumer owned utilities wereconsidered for the conceptual studies. Ex-hibit I shows the number of consumerowned utilities in 1'T states east of theAppalachians plus New York, Ohio,Ianna, Illinois and Kentucky'. It will benoted that there is a ~d total of 981consumer owned utilities in the 22 statesconsidered, 681 municipals and XO dis-tribution cooperatives. Many of theseutilities are small but, on the other hand,a number of them are relatively lar e.

Exhibit II shows the bulk purchasedpower costs for consumer ownei utilitiesin the same K states east of the 5 fississippiKver. These costs are for the most partbased on cooperative statistics which aremore readily available than municipalstatistics. In three different instances, how-ever, they are municipal staBstics-forMassachusetts, Connecticut and New Jer-sey. Very high cost power, which is ob-viously just peaking energy or very smallquantities, was not considered for thistable.

In the state of Maine the range of bulkurchased power costs to cooperatives is

m 0.950 to 1.934 per kwh with an aver-age ot 1.12'. Similarly, the ranges andaverage of the unit bulk purchased powercosts can be seen for each of the twenty-two states. Vermont has the lowest pur-chasei power cost in New England, prin-cipally because of the availability of pow-er from the Power Authority of the Stateof New York (PASiVY); this low cost hy-dro source, of course, also influences thecost of power in New York State. In Vir-ginia and the southern states, the influenceof TVA and SEPA is felt and the averagecosts are lower. In Florida the costs jump

14

D172

EXHIBIT I

NUMBER OF CONSUMER OWNEDUTILITIES IN TWENTY TWO STATES

EAST OF THE MISSISSIPPI RIVER

Six New England States

New York

Pa., N.J., MD., 8 Del.

W. Va., Va., N.C.

Kentucky

Ohio

Indiana.

Illinois

South Carolina

Geargia

Alabama

Florida

Municipals

47

90

28

100

49

52

36

DistributionCooperatives

17

50

26

40

27

23

40

15

Total

85

52

140

127

76

58

49

Total 22 States '981

D173

EXHIBIT II

BULK PURCHASED POWER

COSTS FOR CONSUMER OWNED UTILITIES INTWENTY TWO STATES EAST OF THE

MISSISSIPPI RIVER

State

MaineNew HampshireVermontMassachusetts (Mun.)Rhode IslandC'annecticut (Mun.)New YorkPennsylvaniaNew Jersey (Mun.)MarylandDelawareWest VirginiaVirginiaNcrth CarolinaKentuckyOhioIndianaIllinois

~South CarolinaGeorgiaAlabamaRorida

Range - g per KWH

0.95 to 1.931.26 to 1.740.81 to 2.031.23 to 1.7.1

0.91 to 1.200.69 to 0,810.84 to 0.951.03 to 1.490.84 to 1.67

0.910.89

0.45 to 1.170.56 to 0.940.45 to 0.810.69 to 0.910.76 to 0.930.76 to 1.100.56 to 1.000.47 to 0.990.39 to 0.920.64 to 1.09

Ap rox. Avg. - 0 per KWH

1.12.1.300.941.40

0.95.0.750.871.250.860.910.890.700.720.620.750.830.860.700.620.490.86

NOTES: t . Data taken from REA Bulletin III-2 for fiscal year ended June 30, 1965

except fer Massachusetts, Connecticut and New Jersey. Data ferthese three states is bcsed on municipals and taken from FPC publica-tian S-170 for 1963.

2. Very high unit costs For small energy purchases not shown in the rangeof costs.

16

D174

up again although not as high as NewEngland. Florida bulk power costs re-flect the influence of the state's isolated,

ninsular location, high fuel prices andck of low cost hydro power.The relatively low power costs ia Ken-

tucky are a result of the combined in-fluence of TVA, low" fuel prices and alarge generation and tzazssaussion coopera-tive which has operated for a number ofyears in the eastezn part of the state. Al-though Indiana and Illinois are also in anarea of plentiful, low piiced coal, highpower costs are still evident, probably be-cause of the lack of available hydro powerand, until recently, the complete absenceof any geaeration and transmissioa co-operatives.

~ t 0 ~ '

ESTMIKTED HJTUREPOWER REQUIREKENTS

Exhibit III shows the estimated future'ower requirements for the consumerowned utilities in the 22 states under con-sideration. These requirements were

'divided into groups of states as showa for-- coavenieace in planning the EHV net-

wort. The data shown Eor "1984 Actual"were obtaiaed from various sources asfollows:

I. "Public Power Directozy Issue, Jan-uary 1966 (in some cases earlier

'ssues).2. "Statistics of Electric Utilities In The

United States 1963 —Publicly Owned"(FPC S170).

G. "1964 Anaual Statistical Repo*Rural Electzificatioa Borzowezs" (REABulletin 1-1).

17'.

"27th Annual Report of Energy Pur-chased by REA Bozrowezs —FisadYear Ended June GO, 1965" (REABulletin 111-2).

5. Latest municipal reports to the FPC(1960 aad 1964).

6. Population data, and LDP and assoc-iate engineering firm records.

The 1984 load data figures shown in Ex-hibit III are appreciably more accuratethan those given in the original Study.The cooperative energy figures are sta-tistically precise as they were before, ex-cept that the 1964 REA. Bulletin 1-1 wasused instead of the 1963 pubhcation. Co-operative demands were estimated using4,500 hours of use or an annual load factorof 51.4%. In the case of muaicipal utilities,.however, the approach to obtaining sta-tistical information was not quite asstraightforward as for the cooperatives.The magazine; "Public Power, is the onlysource that annually lists most of themunicipally owned electric systems in thecountry and gives all the pertinent loaddata'that caa be collected. Unfortunatelythe municipals do not all report to "PublicPower" aor do they all report regularly tothe Federal Power Commission, whichprovides complete information on theirreport fozzns including maximum demandsas well as energy usage.

Nevertheless, all municipal reports avail-able at the Federal Power Commissionfor the Me states uader consideration wereobtained aad the load data was tabulated.The latest available reports in most caseswere for 1964, but for some of the smallerutilities 1960 was the latest year and theloads were adjusted to 1964. Using theseFPC reports plus the other municipal datalisted above, it was found necessazy toestimate less than 15'Po of the 1984 muni-cipal loads.

- D175

EXHII)IT I IIPaott I of 2

ESTIMATED fUTURE POWER REQUIREMENTS fORCONSUMER OWNED UTILITIES OF

TWENTY TWO A E EA TIIEK(sr

1964 Actual 1970 1975 ~ 1980eo eo eo eo eo

Demand Energy Demand Enerpy Demand Energy Demand Energy Demond EnergyMW KWIIx 10 MW KWIIx IO MW KWIIx lo MW KWIIx 10 MW KWIIx lo

24.627.666.0

482.7

114.4

105.6121.1302.8

2,011.9

603.2

34.941 499.0

724.1

171.6

150.0181.7454.2

3,017.9

904.8

46.858.1

138.61,013.7

240.2

201.0254.463$ .9

4,225.1

I 266.7

59.977.9

185.71,358 4

321.9

257.3340.9852.1

5, bbl.d

I 697.4

76,7104.4248.8

1,820.3

431.5

329.3456.8

I, 141.87,586.$

2 274.$

Sua TOTAL (6) 715.3 3,144.d 1,071.0 4,708.d 1,497.4 6,583. I 2,003.8 8,809.3 2,681.7 11,788.9

New YorkPennsylvaniaNew JerseyMarytondDeiowore

240.d I,NS.S233.8 1,035.3

70.6 318.3116.0 525.979.3 370.7

341.7332.0100.3184,412d. I

1,560.31,470.1

452.0836.2589 4

457.9444.9134.4271.1185.4

2;090.81,969.9

605.71,229.2

866.4

58d. I569.5172.0379.5259.6

2,d7d.22,521.$

775.31,720.9I 213.0

750.2729.0220.2531.3363.4

3,425.53,227.5

992.42,409.3I 698.2

SUS TOtAL (5) 740.3 3,349.0 1,084.S ~ 4,908.0 1,493,7 d,762.0 I,966.7 8,906.9 2,594.1 11,752.9

West VirpiniaVirphslaNorth CarolinaKenlucL

6.1 28.4 9.2 42.6 12.9 59.6 17.3 79.9 23.2 107.1332.2 1,538.4 49S.3 2,307.6 d97.d 3,230.6 934.8 4,329.0 1,252.6 S,800.9902.7 4, 120.2 lr354.1 6,180.3 1,895.7 S,d52.4 2,540.2 I I,S94.2 3,403.9 15,53d.2766.0 3 34d.l 1,149.0 5 019.2 1,608.d 7,02d.9 2 155.5 9.416.1 2,888.4 12.dl7.d

SUb TOTAL (4) 2,007.0 9,033.1 3,0lo.d 13,549.7 4,214.8 18,969.5 5,647.8 25,419.2 7r 568.1 34,061.8

Ohiolndianoillinois

812.2 3,710.7 1,218.3 5,566,1 1,705.d 7,792.5 2,285.5 10,442.0 3,062.d 13,992.3767.1 3,557.9 1,150.7 5,336.9 l,bll,o 7,471,7 2,158.7 10,012.1 2,892.7 13,4ld.2dl7.7 2 729 4 92d.6 4 N4.1 1,297.2 5 731.7 I 732.8 7 680.5 2,392.2 10 291.9

SUR TOTAL (3) 2,197.0 9,998.0 3,295.d 14,997.1 4,dl3.8 20,995.9 d, 182;4 28,134.d 8,284.5 37,700.4

s NOTEs

Non-simuiloneous Peak demon'd.

EXHIt)IT illPaoo 2 of 2

EST TED FU1URE POWER REQUIREMENTS FOR~ CONSUMER OWNED U1IL11IE F

1%(TNEfwo flhTETUff1JFTBEBlKIDlnT SVER

1964 Acluol 1970 1975 1980 1985~ Pe

Deelond fn~gyMW 'WIIx 10

Peo

Dehnond fneigyMW KWII x 106

e oo Peo

Dernond fnergy Dcmond Eneepy Demand fn~gyMW KWIIx 106 MW KWIIx Io MW KWIIx lo

soulh Carollno 3b7.7 1,689 4 551.6 2,534.1 772.2 3,547.7 I,034.7 4(753.9 1,38d.S 6,370.2Gcorgio 844.2 3,742.) 1,342.3 5,949,9 1,973.2 8,746.4 2,7d2,5 12,245.0 3,S67.5 17, I43.0Alo4ueo I 265.5 S 170.7 2 0)2.1 S 221.4 2 957.8 12 085.5 3 963.5 Id 194.d 5 311.1 21 700.8

SUR 101AL Q) 2,477.4 10,602.2 3,906.0 16,70$ ,4 5 703.2 24,379.6 7,760.7 33 193.5 10,565. I 45,214.0

jloci* {I) 1,284.3 5,9M.O 2,4ol.b II,033.0 4,m4.7 18,535.4 ',93).o 27,247.0 8,718.6 . 40,053.I

GRAND TOTAL fl2) 9,421.3 42,02d.9 14,7d9.3 65,901,8 21,5S7.6 9d,225.S 29,492.4 l31 7IO.S 40,412.1 ISO,S7l.l

'NOTEsNon-elhnulloneouc Peek dcccond.

Energy . growth rates assumed werebased on those used in the National PowerSurvey as modified by judgment and ex-perience. No change was assumed in aa-.nual load factor, although the average 1984

Eigure of 51% based on the K state con-„sumer owned utility non-simultaneous de-

mand of 9,42LG mw, willundoubtedly im-prove. The percentage growth figures usedare given as foQows:

Avesta e Annual Increase

IS60-75

8%

7%8%

7%8%8%

11%

in Exhibit III

Factor for6 Years 5 Tears

L281.84

1.50 L40 .

1.59 1.47L87 L68

hfaine, New York, Pennsylvania K New JerseyNew Hampshire, Yermont, iWfassachusetts, Rhode Island

h, Connecticutivfazylaad 8 DelawareWest Virginia, Virginia, North Carolina, Kentucky, Ohio,

Indiana, Illinois 0 South CarolinaAlabamaGeoHenla

The factors derived from the above growth rates as usedmarized as follows:

AnaualIncrease

57e8%

~ 7%8..

U.%

5%

8%7%

6%6%7%8%

It is interesting to note that the 22 state1964 non-simultaneous peak demand ofover 9,400 mw will increase by 1985 toover 40,000 mw, or 40 gigawatts. At thesame time annual energy consumption willincrease &om 42 to over 180 billion kQo-watt hours. This is a multiplication of over4 times the 1964 consumer owned utilityloads in the 22 states.

How much diversity there is and willbe between these various uti1ities is diffi-cult to estimate. The additioa of five more

states to the original seventeen will un-doubtedly increase diversity and improvethe overall Yankee-Dixie system loadfactor. The National Power Survey esti-mates that the average load factor of in-dividual systems in 1980'ill be raised&om 81% to 64% by coordination of pow-er supply Sectors, and to 66/o by full co-ordination of the East Zone (approximate-ly defined as all of the United States eastof the Roc+ Mountains). The Yankee-Dixie system will encompass nearly all of

WP

D178

EXHI8IT IV

FEDERAL POWER COMMISSION

STATISTICAL REG IONS AND

NATIONALPOWER SURVEY

. COORDINATION STUDY SECTORS

~~sr SECTOR NORTH CaSKCTO

CnI ~p S~

111

'T 0

UT S gCXOQl

[KFPC SV>ZSTtau REaONS

SOUTH SECTOR N P S COORDINATlONSTUDY SECTORS

21

- D179-

the Northeast Sector, a good share of theSouth Sector and one state (Illinois) ofthe North Central Sector (see ExhibitIV). So it is not unreasonable to assumethat at least 4 to 8% load factor improve-ment can be expected for Yankee-Dixiefor full coordination of the twenty-twostates. Moreover, it must be rememberedthat the National Power Suzvey estimatesEor 1980 were based on an average loadfactor (61' predominantly influencedby relatively large individual systems al-ready enjoying more diversity than mostof the consumer owned utilities consideredin this Study. Furthermore, individualsystem load Eactors have a tendency toshow a slow but noticeable improvementthrough the years. It therefore appearsthat Yankee-Dixie system load factors inthe oa to 60% range can be expected inthe IPi0's.

The power market Eor consumer ownedutilities in. the twenty~ state Yankee-Dixie area is already sizeable and the

ulti-'ate

potential is very lav~e indeed. Amarket of this size presents the opportun-ity for consumer owned utilities to utilizemodern, large scale power technology tothe fullest to reduce bulk power costs sothat they are competitive with those ofany other area in the country.

~ ~ ~ ~

BASIC ASSUMPTIONSZOK THE PLAÃ

sized at 666 mw net capability and it isconsidered that 8 x 666 mw units will belocated in each station for a total of 12such units.

The original Study assumed only baseload power would be delivered to the out-lying areas by Yankee-Dhie via singIe cir-cuit radial EHV feeders and the areas, inturn, would make suitable arrangementsfor area reserve and peaking as well aslocal wheeling to individual consumerowned utility substations. If a good shareof the investor owned eastern utilities, whonow own and operate most of the localgeneration and transmission facilities,would pazticipate in the Coordinated Plan,the assumptions of the original Study arevalid and a radial system Lzznshing baseload power to the outlying areas is an eco-nomical, practical approach. However,this Revised Study presents the economicsof a plan which will allow Yankee-Di~eto provide reliable, firm power to the out-lying areas at a load factor that will notr~uire the local consumer owned uti1itiesto make arrangements for the area reserveand peaking.

L ~

' L

LThe original Conceptual Engineering

Study assumed three 2,000 mw base load,coal burning stations located tentativelyin western Pennsylvania, eastern Kentuckyand northern Alabama. This revised Studyassumes one additional 2,000 mw baseload station located Eor study purposes inthe coal fields of southern Illinois. As be-Eore, the individual generating units are

r}f

:t

4 ~ lb'

D180—

~ ~

I

.EXHI8IT V

ASSUMED NET GENERATION LOAD DURATION CURVE

YANKEE-D IXIE SYSTEM

58% Coordinated Annual System Load Factor

60,900 x 106 KWH/Yr Energy

100

90

70

~ ~ ~

~ ~

~ I I ~ 1~ ~ 'I ~ r «j~ I « ~ 1 « ~

«o ~ .. ~ ~ «e ~ ~

1.'I I' ~ I 'I ~ 'I

I ~ I ~ id ~ I ~

'I I'I'

I I I I I I I II ' ' I.s..l I

PEAKING-REScWVEGENEIM.'ION

(4,666 ET MAX. DEHAiG);7,100 x. 106 ERE EiiRGY)

YrI I I

I ~

I I I

I

I I ~ ~ ~ ~ I j I ~ I ~ I I I I I I I j—12,000 a%

A60

50

30

20

10

I ~ jo ~ ~ « ~ ~ ~ io ~ I I I II I I I I

I I I

I I

BASE LOADGENERATION I I

(7,334 Bf ~i. DRfAHD;53,800 x 10 WH EiiRGY)

'r

I I II I

i I

I I I II II II II I I I

7,334 El

3,600 HN

I I j I I I I I j ~ I

10 20 30 40 50 60 70 80 90 100

23

(8760 HRS)

— D181-

It is considered that the Yankee-Dixiesystezn load factor willbe in the range of58'to 60% as previously discussed. Takinginto account the combinati6n of seasonal,time xone and random diversity that willbe avaiLLble over the widespread area terbe served, 58/o is believed to be a con-servative estimate and should aQow theenergy to be absorbed at the range ofload factors that will prevail in consumerowned utility systems in the 1970's.

Exhibit V is a net generation load dura-tion curve which was drawn amnning asystem peak of 12,000 mw, a minimumload of 6,600 mw and 60.9 biQion kwh peryear of energy. The shape of the curve wasdetezmined.through experience and judg-ment as to how'a coordinated 22 state con-sumer owned system might operate in the1970's. The blunt peaking part of the curveis attributable to the inherent wide diver-sity of the system. Whether the. shape as

presented is accurate cannot be demon-strated without' complex analysis. Never-theless, the assigning of most of the energyunder this part of the cuive to high pro-duction cost peaking generation is con-servative for purposes of this Studv. Itwas considered that one of the twelve 666mw base load units wiQ be down at alltimes for maintenance and the base loadpeak was therefore taken at 7034 mw with538 billion kilowatt hours of base loadgeneration. This left a peaking require-ment of 4,666 mw and 7.1 billion kilowatthours of energy to be covered by sometype of low cost peaking capacity.

Exhibit VI in the first two columnsshows the base load net energy and poweraQocated (at the power plant switchyards)to the various states. The amount allocatedto each of the originaQy considered statesis approximately the same as for the No-vember 196S Study with additional aQoca-

'tions distzibuted to the states of New York,Ohio, Indiana and Illinois. Transmissionlosses were deducted from the allocatedbase load net generation and the remainderadded to the allocated peak load net gen-eration to obtain the energy and demanddelivered to the. various local areas. Peakload generation was allocated betweenstates in proportion to th'e base load gen-eration. No primary transmission losseswere considered for the peaking operationas the peaking generating stations will belocated at the outlying EHV substations orwithin the subtransmission network usedfor wheeling the power locally.

No attempt was made to cover the en-tire requirements of the consumer ownedutut'es, It was considered, for purposesof this Study, that power will be madeavailable on a "postage stamp" or averagecost basis at the low voltage side of thelocal EHV substation. Each utility, orgroup of utilities, willcontzact for a blockof Yankee-Dixie buQc power and then ar-range for,wheeling over the subtzansnus-sion system. in the azea. It is interesting tonote, however, that the amount of de-livered energy considered (almost 60 bil-lion kilowatt hours) is about 62~a of th"estimated 1975 requirements of consumerowned utilities in the 22 states.

~ ~ ~ ~ ~

~ r,f+~

24

— D182

I

tlr

r. ~

t/ (;s ~

.tl ~ ~

's

t. J

EXHIBITVl AIEOCATION Of DEMANDAND EFfHGY fCE1KC~At AS

paso Eood Stationktput Atlaces bn

Sass Eaad Energy 4, Peaking-4serve Stationprtaory Transalssbtn power Delivered to ktput Altocotlanin

losses (I) User Stotes Iocol Areas (I)

Total Enerpy ond powerDellv«ed Tolncol Areas

Exited l97S ~t'Settvlreaents ($)

~ spykwhx lo

py trs cloy tno ollMW kwh x to MW knit x IO MW kwh x lo IAW kwls x lo MW Detnand(4) kwh'x lo MW Energy

MW Daa Y-D

New England StatesNew York

PennsylvaniaNew 5«sey, Maryland 8,

DelawareWest Vtrglnks d VirginiaNorth Osrat teaKentuckyOhioI tdtona4linolsSouth Osrot tea d GearpksAlabanaftart*

S,$ 50 740l,200 lbo2,050 280

2,350 3202,850 3908,'Ioo l,loo$,500 7502,950 400$ ,000 4804,250 580d,loo 8342,050 2805 850 800

III244l

4757

ld2llo59

loo8$

l2241

lly

lol23323l220I72$8

24

2,3032,7937,938$,3902,89l4,9004',I455,9782,009$ 733

23 t 5,4395 l,l7d8 2,009

737l5$272

740'ISS

270

3IO 3IO318 380

l,047 1,04$727 7253SS 38$440 440$43 540809 80$272 270774 775

483 4, )79 l,220 I.240l03 I,33 I 2S8 270I78 2,279 450 44$

2052,4 I3 S I 5 530248 3, I73 424 450700 9,003 1,747 I,840477 4, I I5 l,204 l,2502553,27d 443 470433 S,S40 I,O93 I, I30349 4,72$ 932 94S529 4,783 l,33S I,38$l78 2,279 450 445Styt d,SOS I 284 I 330

d,5832,09ll,910

2,70l3,2908, 45'2

7,0277,7937,472$,732

I2,294l2,08$IS 53$

I~ 498 94458 4444$ loo

590 977IO 97

l,89d tpo1,408 87l,704 42I,dlI 74l,297 822,745 5$2,958 774 03$ 3$

TOTAL22 STATES 53,800 7,334 l,014 220 52,724 7, ll4 7, loo 4,444 59,824 ll,780 l2t'2IO 9d,22$ 2I,5$7 42

NOTESs (I) Sated on on overope of 25k onerpy losses ond Mkdentand lo«es(Jl . Delivered peoklnp-resente to local areas assuaed ettual to Input. Aitocotlan ln saae sotto os for bose toad Inputs.(I) Sua of base load delivered ond peaklngweservo Input.(I) Adjusted to 54'k load factor to ollow far diversity between EIIVsubstatlans. Enerpy willbe ovaitobl ~ ot load factors tswt« thon 549bot consua«owned

utility svbstatiatts duo lo lacal oreo diversity.(S) Ioken froa Exhibit Ill. Na od)vsttesnt sea* for atklitlonal subtronsalsslon Iasses ond diversity between EIIVsvbstotktns ond cansuaer owned utility substatlons. I

II ~

Is

t~ I

t

Is

EXHIBITVll

CAPITAL COST ESTIMATE FOR BASE LOAD GENERATINGSTATIONS

One Station - 3 x 666 MW Coal Fired Units ~ 2000 MW Net C'apabili3500 psig, 1000 1025 1050F

Item

Structvres and Improvements

Boiler Plant Equipment

Tv*inc Generator Eqvipment

Accessory Electrical Equipment

Miscellaneous Power Plant Equipment

Switchyard Eqvipment (With Transm. System) .

Communications Equipment (With Miscellaneovs Items)

Millionsof Dollars

25.5

86.5

43.5

0.8

SUB TOTAL

E'n ineerin 8 Cantin en 10/o

SUB TOTAL

Overheads

3'66.716.7

183.4

5.5

SUB TOTAL

interest during Constrvction 5%

TOTAL ONE (1) STATION

TOTAL FOUR (4) STATIONS, Say

188.9

9.4

198.3

793.2

UNIT COST LESS [AND AND SWITCHYARD $ 99.15/kwI 26

- D184—

G~RATQNG FACILITIES ANDTHEIR ESTL>SATED CAPITALCOSTS

Exhibit VIIis a preliminary cost estimatefor one ~ 000 mw base load steam electricstation with three 666 mw machiaes which .

will operate at 3,500 psig, 1,000 F at thethrottle with ascending, double reheat at1025 and 1050 F. This will result in a netplant heat rate of about 8500 Btu per kwh.The cost estimate breakdown is ia accord-ance with the FPC accounting system. Itshould be noted that both the switchyardand the communications equipment areconsidered in the transmission or miscel-.laneous cost estimates (see EXHIBITS& & XI) and are not included with thestation. The switchyard, of course, includesthe stepup transformers, the oil circuitbreakexs, the switchyard steel and aH theintercoanecting cabling and constructiontherefor.

As indicated in Exhibit VII, the con-structed cost of one 2000 mw base loadstatioa is $166.i million. Allowing 10%for engineering and coatiagencies, 3% foradministrative costs and construction over-head, and interest during construction of5% brings the total capital cost for onestation to $198.3 mQ1ion or $793 ~ millionfor four identical stations. This amountsto 499.15 per kilowatt, less land, switch-yard aad communications. This is shghtlymore than given in the original Stuffy toaHQw for price increases over the last yearin electzical equipment items. It is possiblethat final engineering studies wiH indicatethat somewhat larger individual base loadunits, perhaps 1000 mw each, may bejustified. This would be particularly trueia the event that interconnections caneveatuaHy be arranged with other sizeableutilities ia the area. Such larger units wouldtend to decrease investment costs on thebase load geaeratmg stations providing

j~ P

g

<J,,~further price increases do not occur in theelectrical equipment industzy.

Exhibit VIIIpresents a preliminary costestimate for a typical 400 mw peaking-reserve station with 2 x 200 mw boiler-turbine generator units. The estimate isbased on steam generators built solely forresidual oil or natural gas and a simplifiedaon-reheat cycle operating at 1450 psig,900 F at the throttle. This selectioa isbased on the weH known philosophy thatpeakiag units must have minimal Eixstcosts regardless of resulting uneconomicalfuel costs inasmuch as their pximaxy func-tion is to furnish capacity rather thanenergy. The Yankee-Dixie exn wiH bein the unique position of being able toexploit such units to a greater extent thanpreviously has beea possible in the utilityindustry. The reason for this is that thesystem will be brand new with no olderexisting equipment to serve in a peakingand reserve capacity perse. Consumerowned utilities will undoubtedly be ableto provide some peaking-reserve capa'cityia a few states; also capacity can be fur-nished by investor owned utilities whea

— D185—

EXHIBIT VillCAPITAL COST ESTIMATE FOR PEAKING-RESERVE

GENERATING STATIONS

One Station - 2'x 200 MW Oil or Gas Fired Units ~ 400 MW Net Ca bili1450 psig, 900 F Non-Reheat

ItemMillionsof Dollars

Strvctvres and ImprovementsBoiler Plant EqvipmentTv*inc Generator EquipmentAccessory Electrical EquipmentMiscel taneous Pawer Plant EquipmentSw'itchyard Equipnent (With Transm. Systefn)Commvnications vi ment (With Misc. Items)

SUB TOTAL

0.929.888.181.900.25

21.13

En ineering 8 Contingen 8%

SUB TOTAL

Overheads 3%

SUB TOTAL

1.69

22.82

0.68

23.50

Interest Dvrin Construction 4%

TOTAL ONE (I) 400 MW STATION

TOTAL 5,400 MW, Say THIRTEEN .(13)STATIONS

0.94

24.44

329.94

UNIT COST LESS LAND AND SWITCHYARD $61.10/kw

- D186-

and if they participate in Yankee-Dixie.So robably it willnot be necessary to in-

the Eull amount of peaking-reserveunits as provided for herein. Nevertheless,the amount of new peaking-reserve capac-ity wiH be very 1arge and special effortsmust be made to mininuze its capital cost.

The Yankee-Dixie peaking-reserve ca-acity has been conceived to serve a four-old purpose to provide (a), pea1dng

capacity adequate to supply energy atuser svstems load factors; (b) area coldreserve capacity to increase reliability ofthe EHV network; (c) additional baseload cold reserve capacity to supplementthe twelfth 666 mw base load unit; and(d) spinning reserve capacity for quickickup of additional load in the event oforced outage of base load capacity or

part of the EHV network The typicalpeaking-reserve station shown in ExhibitVIQ wiH fulfill its purpose with a highdegree of economy. Its advantages canbe listed as follows:

I. Low initial cost achieved by means of(a.) a relatively low pressure, low tem-perature, non-reheat cycle. This re-duces the cost of expensive super-

heater, turbine and piping materials;(b) a simple thermodynamic cycle in-corporating only one extraction pointto furnish steam to the deaeratingfeedwater heater, thus minimizing theamount of piping an8 auxiliary equip-ment required; (c) special counterrotation turbine generators mountedon their condensers, which reducefoundation and building space require-cents; (d) relatively high heat releasesteam generators designed for residualoil and natural gas only; and (e) astation design stripped down to essent-ial items and with minnnal spare aux-iliary equipment.

Better than normally expected fuelcosts for peaking type capacity a-chieved by using lower cost residualoil in the steam generators (when gasis unavailable at a reasonable rate)as opposed to gas turbines and peak-ing diesels which can only use moree~ensive liquid fuels. Aho the sta-tion net heat rate is K to GOfo betterfor the relatively large steam unitsthan can be expected for gas turbines.

Quick startup ability of'he counterrotation, radial flow turbine.. Throttlesteam is introduced near the shaftand flows radially so that the outercasing is subject only'to low pressure,low temperature steam. This type ofmachine can be started from a cold,zero rpm condition to full load within15 minutes. If on turning gear whenits capacity is required by the svstem,it can be brought up to speed andsynchronized in 5 minutes with fullload asmunption in another o minutes,or 40 mw per minute from no load tofull load.

D187-

As indicated in Exhibit VIII the esti-mated capital cost for one 400 mw peak-ing-reserve station is N4.44 million orapproximately 881 per kilowatt inc1udingengineering, contingencies, overhead andinterest during construction. Total esti-mated capital cost for 5400 mw of peaking-reserve capacity is %29.94 million.

Nominal generation reserve for the con-templated 12,000 mw system will be 8000mw plus 5400 less 1~ 000 or 1400 mw Eorthe combined base load and peaking-resezve stations. This represents a 11.6'P~resezve over the system peak As genera-tion capacity and reserves were calculatedusing "nameplate'gures (less auxiliazypower), it is contemplated that an ad-ditional 5 to 109'esezve willbe obtainedthrough inherent extra capacity in themachines and by specifying the units foroverpressure operation. The resulting over-all reserve margin should be adequate Eor6e system described herein..

The peaking-reserve units wiH be in-stalled at the local EHV stepdown sub-stations or at strategic locations within thearea subtransmission systems. It would behighly. desirable, of course, to have somepumped storage hydro capacity in thesystem to partially replace the peaking-reserve steam units and a few unattendedgas turbines also may prove to be eco-nomic at remote locations in the subtzans-mission system. A. proper mix of steam,pumped storage hydro and gas turbinepeaking-reserve capacity may ultimatelyprove to be the best solution and wiQ haveto be carefully evaluated in the final eco-nomic analysis of the system. Meantime,the steam'eaking-reserve units offer avalid basis Eor estimating delivered powercosts

~ t 4 1 ~

TK&fSMISSIONSYSTEM ANDITS ESTIMATED CAPITAL COST

The original Yankee-Dixie concept lo-cates three large mine mouth thermal gen-erating stations in-the heart of the EasternCoal Province with double circuit 500 kvEHV lines interconnecting the stationsand with radial 500 and 045 kv feedersfanning out to load centers in the easternstates. As previously noted, this radial ap-proach is valid providing adequate localinterconnections can be arranged to pro-vide area reserve and peaking require-ments. Without such local bacTmp, how-ever, the radial feeders will not furnishan acceptable standard of reliability. Oneof the purposes of this Revised ConceptualEngineering Study is to investigate theeconomics of furnishing reliable, fizm pow-er to the outlying EHV stepdown substa- ~

tions at user systems load factors. There-fore, the radial system has been replaced

- Dl88

eI

with an EHV transmission network or gridsystem as shown on the Frontispiece map.The EHV network combined with .thepeaking-reserve generating stations locatedat or near the load centers wiQ provide a

very bigh standard of reliability as wellas the peahng capacity necessoy to makeYankee-Dixie independent of any outside

wer supply. It will also be more satis-ctory for tying ia the more westerly states

and the fourth base load geaerating sta-tion located in the Interior Coal Province.

The EHV network willbe more reliablethan the radial system because it:L Provides a minimum of two EHV feeds

to each stepdown substatioa at systemload centers.Permits a reduction in length of linesbetween switching locations.

0. Provides a more flexible system andsimplifies operating procedures bymeans of additional switching points inthe long lines.

4. Creates a more stable system and re-'uces the possibility of widespread

system disturbances.

It should be emphasized that the authorsof this Studv are not necessarily advocat-ing an independent Yankee-Dime EHVsystem as it would be highly desirable tocoordinate it with other EHV systems eastof the Mississippi now operating, cunentlyunder construction, or in the planningstage. In the public sector, TVA. wouldbe an ideal intertie at the southwest partof the Yankee-Dnie system while a strongtie to the PASNY svstem in New Yorkwould link the principal developed hydroresources of the northeast United Statesand Canada to the fossil fuel resources ofAppalachia. Present planning, under thesponsorship of Governor Philip Hoff ofVermont, to import 2000 mw of Canadianbase load power into New England from

31

the proposed Churchill Falls hydro devel-opment ia Labrador would be anothernatural EHV link to Yankee-Dhie, as

would the Federal Dickey-Lincoln Schoolproject which contemplates 700 mw ofpeaking power for southern New Englaadand the possibility of a 1400 mw- MainePower Authority nuclear generating sta-tioa.

In the private sector, a aumber of 845and 500 kv EHV Bnes are now operatia~or under construction in the high loaIdensity area encompassing New York, Newjersey, Pennsylvania, Delaware, 5 faryland,Virginia, West Virginia, Ohio, Indiana aadIllinois. This area of the country is alreadyoperating large subareas under a high de-gree of coorcfination through interconnec-tions. between its major investor ownedutilities and with PASNY. Additional plan-ning is underway to operate the entirearea on a coordinated basis and to includeiVew England where the investor ownedgroups are planning nuclear and pumpedstorage generating facihties. One of themost recently announced investor ownedEHV plans is the American Electric PowerSystem proposal to overlay their systemwith a 785 kv line extending from westernVirginia north through Kentucky and WestVirginia, and then west: through Ohio toIndiana. Together with edsting 048 kvand other major transmission lines, these765 kv Bnes willprovide a strong link be-tween the high load density areas of theMidwest and the East.

It is obvious that any joint planning tocoordinate Yankee-Dixie with any of theabove outlined systems would be highlybeneficial to all parties concerned. Com-prehensive joint planning could undoubt-edly reduce Yankee-Dixie transmission in-vestment at the north end of its system.At the same time Yankee-DMe through

— D189—

EXHIBIT IX

CAPITAL COST ESTIMATE FOR TRANSMISSIONAND SUBSTATION FACILITIES

Millionsof Dollars

BASE LOAD STATION STEPUP SUBSTATIONS (20/500 kv)North StationCentral StationSouth StationWest Station

SUB TOTAL 4 SUBSTATIONS

TERMINALSUBSTATIONS (500/220 kv)New England StatesNew YorkPennsylvaniaNew Jersey, Maryland 8 DelawareWest VirginiaVirginiaKentuckyOhioIndianaIllinois (at West Generating Station)North CarolinaSouth CarolinaGeorgiaAlabamaFlorida

SUB TOTAL 15 SUBSTATIONS

TRANSMISSION LINES (500 kv)4,605 miles of single circuit

690 miles of double circuitSUB TOTAL TRANSMISSION LINES

TOTAL 500 kv SYSTEM

10.009.559.11

10.20

38.86

7.203.256.805.953.256.507.206.907.202.'508.307.206.503 407.20

89.35

460.50131.10

591..60

719.81

PEAKING-RESERVE STATION STEPUP SUBSTATIONS (13.8/220 kv)13 Substations a $2 million each 26.00

GRAND TOTAL TRANSMISSION SYSTEM '45.8132

- D190-

its multi-state, EHV network overlav can

provide sizeable and widespread coordina-tion benefits to aH other utilities east ofthe ~blississippi. This is particularly truebecause of the basic north-south orienta-tion of a good share of the Yankee-Dhiesystem as no alternate plan has yet beenconceived for such a comprehensive north-south, East Coast EHV overlav.

Joint plannin~~ of course, will necessi-

tate cooperative effort on the part of all'of the principal utiBties in the East, bothprivate and public. If such cooperation is

not forthcoming, however, Yankee-Dixiecan still be built as an independent systemwhich willfurnish low cost,'reliable powerthroughout a «state area. If it becomesnecessary to pursue such an independentpath in finalizing Yankee-Dime, history ofsimilar (but much smaQer) consumer own-ed projects demonstrates that coordinationwith other utilities in the Yankee-Dixiearea willbe inevitable sooner or later andthe benefits of the Coordinated Plan willultimately be distributed on a broad basisin any case.

A voltage of 500 kv has been tentativelyselected for the EHV gid because this isthe highest voltage on which there is anyappreciable operating experience and itappears to be adequate for the loads andother conditions envisioned for the Yankee-Dixie system. It is not intended that theentire trmsmission system voltage be fixedat this value at the present time. Develop-ments in dc transmission and ac voltageshigher than 500 kv are being closely fol-lowed and the final design will be for themost economical system voltages found .

adequate for Yankee-Dixie purposes. It isquite possible that part of the Yankee-.Dixie svstem willoperate at a higher volt-age than SN kv if this is found necessaryto coordinate or combine a part of the

33

svstem with other large power systems inthe K states and neighboring areas.

Exhibit IX is a capital cost estimate ofthe transmission and substation facilitiesshowr'n the Frontispiece map. It is in-teresting to note that the transmission line .

cost of $591.6 milliori represents almost.80/o of the total cost for EHV facilitiesand consequently this is the part of thesystem where the greatest possibility ex-

ists to reduce capital investment by co-ordinating with other parallel systems. Atotal of 4605 miles of single circuit and690 miles of double circuit 500 kv line is

required for the grid proposed herein.Total investment for the EHV system in-cluding substations and transmission linesis estimated at %45.81 million.

Exhibit X contains simplified diagramsof the substations required for. the base

load generating stations and at the var-ious EHV load centers. The arrangementof the-base load power plant substationsis typical for large isolated generating sta-tions that are being constructed today.The stepdown substations envision the use

of autotransformers to reduce from trans-mission voltage to «0 kv for feeding sub-transnnssion systems which will wheelYankee-Di~e power to the consumer own-ed utilities in each area. It is proposed touse shunt reactors connected to tertiarywindings of autotransformers in each sub-station to provide reactive compensationof the transmission lines during lig~t loadperiods.

Generators in the 1S peaking-reservethermal stations will provide magnetizingcurrent to compensate for line reactanceduring high load periods. It will, there-fore, not be necessary to provide chron-ous condensers which were included inthe original Study.

In general, the transnussion line sectionsare shorter and do not have to carry as

EXHIBIT X

SIMPLIFIED SUBSTATION DIAGRAMS

eeeatw 666 MW.

START UP

lTRANS'ER

500/4.I6 KV,

666 1M.

STATION

750 MVA22/500KV.

750 MVA.22/500KV.

TRANSQSSKIN

OUTGOING 500KV. IJNES

TYPlCAL PQV/ER PLANT SUBSTATION

INCOMING'OOKV.LlNES

500IOL

500 KV.

500/220 KV.AUTOTRANSFORMER

500/220KV.

SHUNTREACTOR

SHUNT

220 KV.

TYPICALTV/0 TRANSFORMERSTEP DOV/N SUBSTATION

TYPICALONE TRANSFORMERSTEP DOWN SUBSTATION

D192-

much load as the lines included in radialsystem of the original Study. As a result,it is anticipated that only a Eew of the linesections will require sezies compensation.

~ ~ ~ ~~ ~v

ESTIMATED COST OF HRM PQ~DELIVERED TO LOCAL AEGIS

Exhibit XI summarizes the estimatedcapital investment required for the Yankee.Dixie protect as described in this revisedStudy. The total estimated cost of 4L884billion compares with $1.087 biGion as

resented in the ori~mna1 Study. The dif-erence, of course, is Eor the fourth 2000

mw base load generating station, for thepeaking-reserve units and for replacingthe radial EHV system with a networkThis new estimate is a vezy large figurebut it should be remembered that the de-livered energy has been firmed and in-creased from 40.8 to o9.8 billion kilowatt

. hours per year, or nearly 47%; further,that the available power at the load cen-ters has been increased from 5110 to over12,000 mw so that energy can be suppliedat user system load factors.

Annual fixed charges used in calculatingpower costs are indicated in Exhibit XILFour different alternates were considered.The first three are for a non-profit or muni-cipal type entity assuming 84/4, 4-1/4 and44/4% interest rates and 05 year taxmempt securities. Vfith the money market-conditions that mist at this time, 4-1/4%securities are probably a. reasonable as-sumption which means fixed charges oncupid of about 6.o4% for the generatmgstations and 6M~% Eor the truisznissionsystem. This compares with 12% and11.7o% assumed for the fourth alternateas an avezuge for investor owned utihties-

Exhibit XIII is a calculation for'hebase load stations production mpense andit is identical to that presented in theoriginal Study. Base load net station heatrates in the 8$$ to 9000 Btu per kilowatthour range wiH be the rule rather than theexception Eor large coal Eired units in the1970s and 1980's. The long range cost offuel is somewhat more problematical, how-ever. Recently publicized increases in fuelcost will apparently raise the average costof coal by 4 to o% which could indicatethe start of a steady rate of increase inthe cost of coal during the last decades ofthis century, On the other hand, theiMational Power Survey estimates that coal

rices at the mine head are expected toe stable or somewhat lower, and that

the average E,o.b, price at the mine forelectric utilities will be 10.oc per millionBtu during the 1970-1980 period.

There is little doubt that labor costs wiHcontinue to rise over the long term. Op-posing this higher labor cost trend in thecoal industry, willbe greater tonnages permanity at the mines due to technologicalimprovements and higher mining produc-

35

EXHIBIT XI

CAPITALCOST ESTIMATE SVMMARY

FOR TOTAL PROJECT

Sx lQ6

Faur (4) 2,000 MW Base luad Thermal Stotions (Exhibit Vll)

Thirteen (13) Peaking-Reserve Thermal Stations (Exhibit'ill)

5f295 Miles EHV I.ine 8 Substations (Exhibit IX)

Miscellaneous Items (Land, Communications, Dispatching, etc.)

793.2

329.9

745.8

15.1

GRAND TOTAL I r 884.0

— Dl94—

'e ~

EXHIBIT XII

ANNUAL FIXED COSTALTERNATES

ASSUMPTIONS

Interest Rate on Debt,Term of Debt,

GENERATING STATIONS

Non-Prafit Corporation

Vo 3-3/4 4-1/4 4-3/4Yrs. 35. 35 35

InvestorOwned

Debt Service (Annual S.F.)Prop. Taxes, tnsur. 8 0/arking

Capital,

5.18

~fo 1.00 1.00

5.92

1.00

TOTAL,

TRANSMISS ION SYSTEM

Vo 6. 18 6.54 6.92 12.00

Debt Service (Annual S.F.),Prop. Taxes, Insurance, etc.,

TOTAL,

Vo 5.18 5.54 '.920.75 0.75 . 0.75

5.93 , 6.29 6.67 11.75

NOTE:

Use generating statian fixed casts for misaettaneaus iteins.

37

- D195—

EXHIBIT XIIIBASE LOAD

THERMAL STATIONSPRODUCTION COST ESTIMATE

Assume overage long term fuel cost

And average long term net operating H.R.

17~06 BTU

87,QO BTU/NKWH

Then production expense:

Fssel i70 mills ss B700 BTU

i0 BTU NKVIH

Maintenance

Other production expense

1.48 mills/NKWH

0.20 milts/NKWH

0.20 mills/N KWH

TOTAL PRODUCTION EXPENSE

BASED ON INPUT TO TRANSMISSION SYSTEM

1.88 mills/NKWH

sI

EXHIBIT XIVPage I of 2

PEAKING-RESERVE THERMAL STATIONSPRODUCTION COST ESTIMATE

s

A. Expected Turbine Grass Hect Rates at 3" Hg Back Pressure ond Zero Makeup For

200 MW Units Operating ot 1450 psig, 900F at Turbine Throttle with One Open,Decercting Feedwater Heater in Cycle (No Closed Heaters):

Load Point

100%75%50%25%

No Load Flow

Heat Rate, BTU/kwh

9,7259,875

10,21511,10083,000 ~/hr

B. Approximate Pecking Heat Rate with 85/o Boiler EHiciency and 5% Auxiliaries,Say-

10,%0 BM x 1.05 ~ 12 350 BTU per NKWHNKWH 0.85

C. Unit Fuel Cost With Residucl Oil Assumed at 3& per Millian BTU:

For Peaking 50.35 x 12,350 STU x 1000 mills 4s33 mills/NKsNH106 STU NKNH 5

For 200 MW of Spinning Reserve ~ 83,000 >steam x (1431.0-260) BTU(No turd) hour steam

x 1 x $0-35 x 8000 hours x 1.06 $346,000/year0.53 Sailer ~10 STUEificiency

0. Annual Prodvcticn Expense for Peaking-Spinning Reserve Assvming 7,100 x 10kwh of Pecking Energy (See Exhibit V) and II400 MW of Spinning Reserve:

Base Load Energy ~ 7,100 x 106 kwh x $ .00433/kwh ~ $30,743,000

Spinning Reserve = 1460 MW x $346,000 per Unit $ 2,422, 000200 MW per Unit 'er Year

39

— D197—

EXHIBIT XIVPage 2 of 2

PEAKING-RESERVE THERMAL STATIONSPRODUCTION COST ESTIMATE

(Continued)

Maintenance 8 Other Production Expense at 1 mill p r NKWH = 7,100,000

TOTAL PRODUCTION EXPENSE $40f265i 000

or 5.67 mills/NKWH

BASED ON INPUT TO LOCAL AREA SUBSTATIONS

40

— D198-

tion rates required for large scale power«ener~tion. Also the competitive effect ofother fuels willbe felt, particularly nucLear

fuel which already is the next most im-portant contender'Eor the electric utilitymarket This effect willbe intensified overthe next few years and willtend to stabilizeand perhaps ultimately reduce the priceof mass produced coaL Moreover, improve-ments in deep mining techniques and un-derground haulage systems indicate thatcoal mined by such methods can competewith strip mined coaL This willopen upvast new reserves of coal which are notbeing mined at present and wiH permittheir removal without disruption of theland surface above the coaL

The forces in opposition to increasedcoal mining labor costs would seem to en-able the coal industry to hold a reasonableprice line for a number of years to comeand consequently the originally assumed17'er miHion Btu in bunker cost EorYankee-Dixie has not been increased asit was, and is, 'considered to be conserva-tive.

The calculations shown on Exhibit XIVillustrate the method of estimating pro-duction expense for the peakmg-reserveunits. Using GSC per million Btu for rea'-dual fuel oil, peaking unit fuel cost aver-ages out at 4.GG mills per net kilowatt hourand spinning reserve no load fuel at0346,000 per year for a 200 kw unit; Ap'-

lying the estimated unit fuel cost to 7.1iHion kilowatt hours of peaking energy

(see Exhibit V) results in an annual peak-ing energy fuel cost of ~.7 miHion peryear. To this figure was added the cost ofspinning reserve for two base load unitsplus maintenance and other productionexpense of 1 miH per net kilowatt hourwhich results in a peaking-reserve stationproduction expense of M.G million peryear or 5.67 mills per net kilowatt hour of

peaking energy.Additional. spinning reserve would nor-

maHy be available to the system by usingthe overcapacity available in the base

load units as previously discussed abovein the description of the generating facili-ties.

Exhibit XV sunnnarizes the system totalannual costs as weH as the "postage stamp"or average delivered unit cost for the en-

tire system using Bve different financing~es. It willbe seen on examination ofExhiiit XV that the total annuaL systemcosts for firm, usable load factor powerincluding aH fixed, operating, maintenanceand administrative items is estimated tovary from 4262.7 miHion for the lowestinterest non-profit corporation financing(Case A, Exhibit XV) to 4072.G million ifthe system is entirely constructed with in-vestor owned utility type finandng (Case

/AD, Exhibit XV). At the same time theaverage dehvered unit cost to the low sideoE the EHV substations at the load centersvaries &om 4.39 to 621 mills per kQowatthour. It wiH be zecaHed that the compar-able delivered unit cost for base loadpower which required area reserve andpeaking capacity varied from 391 to 4.99

mills pez kilowatt hour (see original Study)for comparable financing terms.

It is of interest to compare the original-ly conceived radial system with the larger,revised network system as presented here-in using the 84/4%, 35 year non-profitfinancing as the basis for comparison:

Original StudyRadial S stem

Revised StudyNetwork S stem

System investment, $ x10'tatesserved, no.

EHV line, circ. milesBase load station net capability, mwPeaking-reserve station net capability, mwTotal station net capability, mwAvailable power at load centers, mwAnnual energy at load centers, kwh x 10Load factor at load centers, foBasis of deliveryUnit cost of delivered energy, mills/bvh

1.03717-1/2

37656000

60005113

40,77491

Non-firm3.51

L88422

598580005400

13,400~059,824

56.Firm439

The apparent increase for firming thewer and providing energy at usable

oad factor is only 0.88 mills per kwh al-though the fact that the system was basi-caQy enlarged helped in this respect.

With the more likely non-profit corpora-tion financing terms of 4-1/4', 35 years(Case B, Exhibit XV), the delivered costof Eizm power to the load centers at usableload factors is only 450 mills per kilowatthour to which would have to be addedthe cost for wheeling the energy from theEHV substations at the load centers tothe local utilities individual substations.

Case E in Exhibit XV illustrates thepossibilities Eor a partnership arrangementwith the consumer owned utilities owningall of the generating facilities and the in-

vestor owned utilities owning the trans-mission system. This increases the "postagestamp" or average delivered cost from 4.50mills per kilowatt hour to 5.18 mills. Thepartnership would increase the consumerowned cost by 0.68 mills per kilowatt hourbut would reduce the all investor 'ownedplan (Case D, Exhibit XV) by over onemill per kilowatt hour. This dearly Qlu-strates another possible area Eor savingsthat would be available to participatinginvestor owned utilities, which would beover and above the economic gain and in-creased reliability obtainable through co-ordination with the large seal'e Yankee-Dixie EHV overlay..

~ ~ ~ ~ ~

- D200-

S a le«ra u< ~ ~ N ~n ~ ur m ii ~

EXHIBlTXV AVERAGE COST OF POWER IN LOCAL AREAS

A 3 3/4% 35 Years tt 4-1/496, 35 Years C 4</49k 35 Years D - INVESTOR OWNED E SEE HOlE (I)

~lr ~l »r

Ir t

hJ

I

RASE LOAD GENERATIONIxe 3. mllllon,

Fuel,Non-fuel operating d maintenance<

49.0279.6221.52

xe ~ <N titan <

Fuel,Non-fuel operotlng d. maintenance,

20.3933.16

7.10

Sub Tolol Rase load Generation, 150.16

PEAKING 6 RESERVE GENERATION

0.911.480.40

2.79

r,

2.874.671.00

51.8879.6221.52

21.5S33.16

7.10

3.044A71.00

22.8333. 16

7.10

3.224A71.00

0.9d 54.89 1.021.48 79.62 1.480.40 21.52 0.40

2.84 156.03 2.90

95. IS79.6221.52

196.32

1.771.480.40

39,59 5.5833. I6 4.677.10 I.OO

21.5833.167.10

3.044A71.00

/

51.88 0.9679.62 1.4821.52 0.40

Sub Total I'eoklng sk Reserve Gene<at ton< 60AS dl.84 8.71 8.89 79.85 11.25 61.84 8.71

TOlALG ENERATION COSTS

ssaTRANSMISSION (3)Ftxe<XIA5.~mtIton)<Operating, motntenance tk dopatchlnp,

44.23d.2D

D.740.10

2IO.SI 3.52 214.86

46.916.20

o.780.10

49.756.20

3.59 '19. 12 3.66 276.17 4 Al

0.83 87.63 1.460.10 6.20 O. IO

214.8d

87A36.20

3.59

1.460.10

Sut< Total l<onuntmlon,

GRAND TOlAL (3) 262.d7

0.01

4.39

50,43 0.84

0.93 0.02

53.11 O.SS 55.95

0.99 0.02 1.05

0.50 0.01 0.50

269 46 ~ 4.50 276.62

0.93 93.83 1.56

0.02 I .8 I 0.03

0.01 0.50 0.01

4.62 372.3) d.21

93.83 1.56

310. 18 5.18

0.50 0.01

NOTES< I. Consumer owned generotlon ot 4-I/4%< 35 years and Investor owned transmtaatongt 129k.

2. Ikslt cost ~ for generotlon onhua bar Ixssla (sset) ot generating atotlon (S3,800 x lo kwh base lood and 7, IDOx lo kwh peaklnp-reserve).3. IS<it costa on a delivered hasta Io local oreo sub<tat ton (S9,824 x IO kwl<).

DISCUSSION OF THE YAMiCZE-DIXIE SYSTEM AND COSTS

It is of interest to examine a number ofdifferent aspects of the proposed Yankee-Dixie System, particularly as to the prob-lem of wheeling the power in local areasand what the costs of such wheeling maybe. Also of interest is how the rapidlychanging technological and economic pat-terns of the last half of the twentieth cen-tury may influence the feasibility of thePlan.

L Local wheeling problems and costswill largely be a result of (a) the de-gree of cooperation received from lo-cal utilities in a particular area, and(b) the load density in the area whichin turn influences the capital costs andresulting wheeling charges to the ulti-mate user utilities. Each area aow hasits own transmission aad subtruumzis-sion systems which can all be con-sidered as "subtransmission" for theYaakee-Dixie System. Some of theselocal systems are owned by investorowned utilities, some by state authori-ties or cooperatives aad some by TVA.VlheeBng has always beea one of themajor problems ia tzazmnitting Federaland State authority power to prefer-ence customers. There is an mcreasingtendency for consumer owned utilitiesto press for more liberal interconnec-tion privileges ia respect to iavestorowned utility lines using Section 202

(b) of the Federal Power Act as thelegal justification for such privileges.The decision of the FPC on two suchcases now being reviewed may veryweQ determine the degree of difficultythat will be experienced by consumerowned utilities in attempting to enter

into agreements to wheel Yankee-Dixiepower to their own substations.It may become necessary Eor consum-er owned utilities in some states tobuild their own local subtransmissionfacilities. Massachusetts, for instance,is a state which has ao consumer ownedtransmission lines and the muaicipals( there are no coops in the state) shouldtake joint action as soon as possible toarrange for use of existing facilities orbuild their own interconnected system;lacking such local tzaasznissioa facilitiesor the legal and political strength tobuild them, it willbe difficultto utilizeYankee-Dixie, Canadian or . Dickey-Lincoln School power when it becomesavailable. The building of consumerowned transmission, as a rule, presentsmore legal hurdles than engineering

'nd

economic problems. Fixed costsfor a consumer owned subtransmissiongrid are roughly one halE of those forinvestor owned systems; as wheelingcosts are largely a function of fixedcosts, the feasibility of consumer trans-mission ownership is beyond questionif the load density is adequate aad thisis not a problem in most of the Yankee-Dixie service area.As for local subtransmissioa wheelingcosts, the originally cited range (seeoriginal Study) of I to 2 mills per kilo-watt hour still seems reasonable andthe exact. cost will necessarily have tobe d'etezmined for each area. The fmalaverage delivered cost of Yankee-Dixieenergy to consumer owned substatioasshould range from 53 to slightly over6S mills pez kilowatt hour and certain-ly 7 mills willbe a maximum.Yankee-Dixie bulk power rates havenot been designed but obviously willincorporate both demand and energy

— D202—

charges. The demand charge can bedesigned so that consumer owned utili-ties with their own generation willreceive proper credit if they want tofurnish all or part of their own peakingcapacity. There can be a further specialcredit arranged in the event that suchutilities desire to furnish capacity and/or energy to the Yankee-Di~e pooL It.is possible that, with all local consumerowned generation operating in theYankee-Dixie pool, the entire needs ofthe consumer owned utilities in the 22states can be met depending on theamount of additional loca1, generationthey install by the early 1970's.

G. Yankee-Dhie reliability is one of themost important items considered forthe revised Coordinated Plan.

The'rincipalconclusion of the FPC reporton the Northeast Power Failure wasthat stronger transmission networksand more complete coordinated

opera-'on

are mpxired to prevent wide-spread blackouts and their adverse im-pact on national defense, rta-tion, communications, public

ealth'nd

commerce. The report also stresseda more sophisticated evaluation of thetime response of system spinning re-serves and a review of the question ofreserve margins for trmsmission as

weH as generation. The combination ofmodern base load units, peaking-reserve units capable of fast load pick-up and a strong EHV grid with ade-quate. reserve capacity will result inYankee-Dixie being one of the mostreHable power systems in the'East op-erating as an isolated entity. Operatingas part of an overall eastern coordi-nated system, Yankee-Dixie will addtremendously to the strength and re-liability of aH the interconnected sys-tems and willgo far toward correcting

some of the deficiencies cited in theabovementioned FPC report.

The apparent recent brealcthrough innuclear power has caused much con-

fusion in evaluating the relative eco-nomics. of nuclear and fossil &Mls. Mostpublished evaluations at present indi-cate that a large nuclear generatingstation reaches the break even pointat a fossil fuel cost of about 22 to 240

er million Btu. These evaluations areor nuclear units in the 700 to 1000 mw

range with a capital cost of 11 to 15dollars per kilowatt more than com-parable size coal fuel units and withaverage fuel costs over the first 10

years, based on plant capacity factorsof 80%, of about 1.8 miHs per kilowatthour. Nuclear fuel cycle costs are esti-mated to drop ultimately to 1 millperkilowatt hour over the life of the sta-tion but this de not seem to be morethan. optimistic thinking at this time:Naturally such simplified evaluationsdo not tell the whole stozy as nuclear-fossil fuel comparisons must be evalu-ated in terms of the overall system.Estimated mix of nuclear and fossilfired units in a given'ystem over aperiod of years and the economic load-ing of the units will effect unit capac-ity factors and comparative fuel costs.Also comparative transmission costsare sometimes mfluential in determin-ing the desirability of nuclear genera-tion depending on the individual sys-tem.Although the possibiHty of nuclear un-its has not been eliminated from theYankee-Dixie Plan, at the present stateof the art it would seem that coal firedunits are more economic for the baseload units. Coal costs wiH be belowthe break even point and the EHV

- D203—

transmission system will be r 'danyway to achieve the large scale, co-ordinated operation so necessazy toachieve low bulk power costs. A pos-sible exception to this might occur ifextensive low cost coal reserves cannotbe obtained as might be the case forthe south base load statioa. In anycase, a continuing reevaluation of theeconomic position of nuclear powerrelative to Yankee-Dixie wiH be madeto insure that the best fiaal selectionwiH be made for the base load generat-ing facilities.The constant rising cost index whichis apparently a part of modeza civiliza-tion willtake its toll on any long rangeelectric power plan that is considered.In the past, technological improve-ments in the electric power industryfortunately outstripped the general zis-iag cost index with the result that pow-

'r

costs have steadily decreasedthrough the years. Bamng some un-usual far rea

'technological break-

through, it is 'ly that this trendwill continue indefinitely. This, how-ever, need not induce pessimism inso-far as the economic soundness of Yan-kee-Dixie. While no escalation was con-sidered in estimating capital costs inthis Study, it is realized that, depead-ing on timing of systezn construction,some increase in costs may occur andcertainly the magnitude of any prob-able increases must be detezznined

revious to fmal azzangemeats for thecmg.

It must be remembered that evezy planis considered and finally brought tofulfillment after comparison with var-ious other competing plans. The ques-tion, therefore, is 'he deliveredcost of Yankee-Dixie be as attractiveas presented herein considering thatmoney, equipment, fuel and labor costsall may rise over the next few yearsPIt is apparent that the answer to thisquestion must be "yes" as all othermethods of supplying buHc power willbe equally subject to the zising costcharacteristics of our times, Further-more, fixed costs on the investment areabout 45% of the cost of the Yankee-Dixie delivered power cost; if the sys-tem were entirely financed on an m-vestor owned utility basis, these fixedcosts would represent about 60% ofthe costs. So a rising cost index has lessinfluence on a consumer owned systemthan it does on an investor owned sys-tem assumiag the systems are of com-parable size.

It can be concluded that the Yankee-Dixie System is technically aad economi-cally sound and can furnish reliable, fizmpower at local user systems load factorsat an average cost that is competitive withany other system in the country. It willfurther provide a strong EHV overlay thatwiQ probably do more for overall easteznsystem coordination than any other plannow under consideration.

~ ~ ~ ~ ~

D204-

EXHIBlT XVIPage t of 3

. YANKEE-DIXIE POX'ER ASSOCIATION, INC.

ORGANIZATION

OFFICERS

Ms. Hugh L. Spurlock, President Mr. Frank H. Kiag, Vice Presideac

Mr. James G. Richardsoa, Secsetary-Treasurer

BOARD OF DIRECTORS

Mr. Hugh L. Spurlock, Manager

East Kentucky Rural Electric CoopesaciveCorporacion

Viachesces, Kcatucky

Mr. Frank H. King, ManagerGas 4 Electric DepartmentCity of HolyokeHolyoke, Massachusetts

Mr. James G. RichardsonCommissiones, City of GaiaesvilleGainesville, Florida

Mr. William F. MacsoaGeaeral Manager R Execucive Vice-Pres.Peansylvaaia Rural Electri AssociacionHarrisburg, Pennsylvania

Mr. Basil Thompson, MaaagcsAlabama Rural Electric Coopesacive

Andalusia, Alabama

Ms. Valccs IV. Cook, ManagerVermont Electric Corporation, Inc.Johnson, Vermont

Mr. John R. KellyDirector of UcilitiesCicy of GainesvilleGainesville, Florida

Mr. William McDancl, PresidencAllegheny G 4 T Cooperative, Inc.Clearfield, Pennsylvania

Mr. B. H. BrantleyDirector, Electric Uciliries Deparcmenc

Jacksonville Beach Eleccric Department

Jacksonville Beach, Florida

Ms. James E. Baker, ManagerShrewsbury Municipal Lighc Deparcmenc

Shtewsbury, Massachusetts

Mr. J. E; Smith, ManagerMeckleaburg Electric CcoperativeChase City, Virginia

Mr. Howard A. CumminsExecutive ManagerOhio Rural Electric Cooperacives, Inc.Columbus 14, Ohio

Mr. J. C. Brown, Jr., ManagerTarheel Electric Membership Cooperacive

Raleigh, i%orch Catolina

Mr. John H. Huncer, CommissionerSpringfiel City Vacer, Lighc R Po~erSpringfield, Illinois

47

D2O5-

A Report on Joint Action to Dateby Tv:eive =1orica Cities

Sy

Robert E. Ha&enPartner and %tanager

~ 'r1anc.o Regional OunceR. XV. Beck and Associates

Ana1ytica1 an6 Cons@'t='ng Engineers

Befo eAmerican mciic =vv:er Association

Le=a1shoe"":

Se ..inar~ a

4'c+

ber Zo, 1'70

- D206—~ ~ ~ ~ ~ ~ < u m~ a~ "~ ~

I ~~S paQU

~wwleehWOre

.II~,~i .l~. ) ~- B li.G'

K PleRC'RAUCHQI A

F/0 R IDA tAU NICI?AL ELECTR I C SYSTEMS, )) y P~ lf+'P)O )

g, ~, l)C)r, Ai)O kSIOCEAZ!l CI.KVJIS i QN~ I~ WIM'V~

t.I. GEN0

0 MUNIClPAI GENERATING SYSTEMS4 MUNICIPAI PURCIIASING SYSTEMS

0~'...f CROSS FI.CURIO* SARG CAN"

~)~

20'

.:'ifji$—:"

~":-." "r

D207—

~ i ~ ~

~r'r

~ y ~+SOHO

,ri'o~»

THE T%VZLV:" CITY STORY

The developmea of the Twelve Ci y Plan for joint actionia %or da nas aa i .e estiag history, touching almost every area ofjoiat action e ffo=.s by municipally owned u&he s x secu e lowewholesale power costs. I cazxnot pass up ~~s opportua'ty to teIl youthe fascinating story leadi g up to the developzaeat of the presentTwelve City pla~ag.

Earl B ezinniar s

Like most municipal systez s in the United States, in theearly pazt af the 1960's the twelve cities ia Flo da, that purchasetheir power at wholesale. for resale did very httle oa a united basisto lower thei wholesale power costs wh ch we e among the highestin the couatry. Tea of tne twelve citxes, Alachua., Bartow, Bushnell,Fort hleade, Laz-e Helen, Leesburg, Mount Dora Newbe ~, Ocalaand VQUson, purchase aH, of the'= power from ~orida Power Corpo.a-tiozx. The other two, Quizzcy a d Chaixhoochee, ~wve an allo&eat ofSoutheastern Pomer A,dministrati.oa (SZInk) power from Jim W'ood~Dam, mnich is wneeled by Florida Power Co poration, with the Companysupplyiag all ecuirements above the S" PA aIIo~eat. (These vo citi,esare the only cities ia the state who have any Federally generated poweaad tnat is annually becozrdag a sznaller portion of the'= growizxg loadremi.=emeats. )

Of the other ZZ municipally omaed systems in Florida,one small system pu chases fror" a small u~zg-, one purchases froma cooperative who in tu=n purchases rom a large private utility, andtwo purchase from the City of Zacicsoaville. The rest all gene ate theiomn requiremei ts. The. generating munic-pals ~ge ia size f om verysmail systems usi=g diesel ge eration, up through mecium sire systeznssuch as Gainesviiie aad Lakeland, with unit si es installed or underconstruction ia .he 75-100 mw range, to reaQy la-ge mun'cipal systemssuch as 0 Iando aad Zacksonville, with ~t sires planned for nea- te~complet:on in t'ne 300 mw - 500 zaw size ~ge.

Thus, it is evident that in the State oX Florida there isgreat variety' the emstizxg type and need for low cost bubb powesupply. Tnis va='ety of ~~es of need, coupled ~A widely scatteredgeograp'z'czl locations, are no coubt cont=.butiag .factors to the faiiureof Florida za~c pal systems ia t.'xe past to work in a unified znaaner tojointly solve their most important and costly pronlem - low cost bulk

~ power supply.

D208—

The Twelve City Grou~

The Twelve Cities, however, do have one ~~g in comnon-they all pu=cha.se he = power supply from a single company and, ashas been pointed out, iha.t cos was e~~emely high. ~m 1964 i rangedfrom a low of 11. 1 mills/Wh for the largest c ui., Ocala., to a high ofove 16. 0 nQIs/hah for four of the smaller systems.

~ ~

At that point, enter four leach s ano-g the Florida municipalsystems - Dan 2 fcintosh, D'rec.or of Utilities at Lakeland; Zim Phillips,an ex R" A field engineer, Co-op Manager, then an engineer on theLak~~nd system and now Manager of the City of Sebring Util'tiesCon~ssion; hfac Cunningham, "xecutive Vice President, Flo 'da2vfunicipal Unities Association; and Sack Baldwin,. City 2vf~ger atOcala., row deceased. Zim P"'llips couldn't help maMng the comparison

'between the wholesale power cost to the m~cipals versus that coazgedby the sane company to i s cooperative custoz e s. The municipals werepaying about 9800, 000 per. yea.r no e than u.they ha.o the co-op ate.When he pointed this out to Dan McLxtosh he wa.s g ven'per~ssion towore up some impo tant Dlustzations and conpa 'sons which were pre-sented to the Erst mee~g o woat was to become the Twelve CitiesGrou . This neeMg was sponsored by FhfUA (Florida MunicipalUtUities Association) and was called by Sack Baldwin in early 1965.

At the request of the FMUA, Herb E3Iinder, enginee withAPPA, was. p esent at this meeting. He infozzned thezn that woolesaleelectr c ra. es were under the jurisdiction of the "ederal Power Commis-sion, and Qxat municipals in other states had rece:ved lowe wholesaleates when they K.ed wi h FPC data proving overcharges. He recommended

that lega.l a d engineering counsel be obtainedin order to be properlyzepre sented.

Shortly thereafter it came to light that the FPC Ww~ had,begun a Mate&, independent investigation of the Company's wholesalefor resale rates .o the mun'cipal svstezns in iorca. and, apparently,were negotiating with.the Company to lowe these rates. Qx earlySeptember, 1965, the" group of ten citi.es who purcha.se all of theirreouizene"ts frozn Florida Powe- C'ozporation employed George Spiegel,washington, D. C., attorney, as special counsel, and R. W. Beche a. dAssociates as eng nee ng consultants, to assist them in negotiationswith t e = C SM and Cc pa.".-. Be oze these th=ee -party negotia-tions could start, however, the Staff and the Company reached ~<or.~agreemen. ozz a ra.te reduction of 5"io, a revision of "' -uel adjus went

4 ~

— D209—1

clause in the rate aad elimination of an unreasonable and ualawiul"Corm~od ty Adjust-eat Clause" which escalated rates each t me theBureau oi Labor Stat'ties Construction Cost Index moved upward.This 5'ominal ra e reduction equaled about $ 180, 000 pe year tothe total of the ten cities, an amount deemed wholly inadequate b'

~ the group. This was deemed particularly inadequate since the reductionin the corporate income ta~ rate beg~g 1965 recuced the cost ofse~ce to the municipals by some $ 160, 000.

~ ~

The Company zaade a forr al. proposal to place the reducedrates into eiiect iiTovembe 1, 1965. The muai.cipals, through hL..

. Spiegel, made a, te tat ve counte proposal seeLcing the following changesz

1., The Cor pany would apply to the muxicipals the same ratesas it appU.es to the RM coope atives.

Z. Fu ure cortract te ..aaatioa dates would be revised so asto be coinciceat with each other.

3 Future cont=act terms should be reduced and, in aay event,should not exceed five years.

4. De1etion of provisions contained ia the agreezaent forservice, rest 'cog self-generation, pu=chase i om others, and salesat wholesale for re sale by others.

5. Re~ds oz increased charges billed under the "Commod:tyAdjustmeat Clause. "

At a negot ating raeetiag ia Decembe, 1965, the Companyadaznaatly refused to budge. The znuaicipals, therefore, permitted the5'fo reduction to go i o efiect and Z,ed a complaint with the =ederalPower Comzais sion ia J'azzua~, 1966.

Pre-hearing coaierences we e held ia the sp ing of 1966aad the cities coa~ued to attempt good faith negotiations towardreasonable ".ates, terms aad conditions while preparing its case,should full hearing s beiore the Cozz~ssion becozae necessary.

On AprilZl, 1966 the Federal Power Commission issued,zts opinioa i" the weQ Mown "St. zvQchaels Case."~1~ As all those

— D210—

(E) FPC 0 inioa 'Bo. -"90 dated Apr=l 21, 1966 Re: St. MichaelsUtilities Commission v. Zastern Shore Public Service Co.

who followed this case a e aware, the case wan c cided agairst themunicipal pos'tion thai a company should charge-Jxe same rate tomunic.pals ard cooperatives a1ike. Et found tnt: &e co-ops are"plainly disti=guishable" as a cia.ss. The Co~ssion also made itclear, however, that under a cKfferent set of c ~ mstances itsfzndings oi fa.cts would 'oe based on those circuc~ances. The Flo 'daznunicipals'. case was sufzLcientiy di~ferent from mat of the 1VEa~landmunicipals in that the cost of service to t"e co-ops in H.orida isindisputably 9'<her,than ~t to the m~c pals a=" Mt, together vries&

other ciZerences, constituted ar. enti=ely d'<~e~t set of ci c- .siinces.Nonethe'ess, the St. hKchaels ca.se did not help ="e position of the tencities in their complaint to the Fede~ owe= C~~~ssion.

One aspect of the St. Michaels dec m,on did serve to wakeup the» lor'da group (and appa=enQy mun'cipal g-oups in othe- statesas weU). That was whe e the»'PC said that the =ate diiierertialbetween the co-ops and the muzncipals was cue m part to the coopera-tives'superior bargaining power" because of ~apparent ability tob~>d their own genera~g and t=a smission systems."

~ The ten cities thereupon resolved &0 no mat e- the out-cozne of the.'= cor plai"t and negotiations, they ~ould attempt toimprove iheir bargaining position in every way possible, insiead oiz elying sole y on regulation for relief irom high mtes.

~ Xt became o'ovious by m.d 1966 dmt Re Company-was drag-ging its feet in offering any mea~ghzl comp ouse proposal w hich ithad suggested at the first pre-hearing cor e ezze. En November of1966=Sir. Soiegel was authori" ed to make ore ~ atiempt at setilementprior to proceed'.ng with fullhearings. Negotia+Kons proceeded throughthe Company's New Yozk attorneys and d agged, en ior sevezal onths,appa ently while the Compaz:y wa.s wa Mg to deeerznine the outcome ofits retail rate ca.se orought by Ae Zlonda Com='ssion on its own action.

Ea the meantime, the Company wa,s MYirg advanta.ge oi thehigh ates s~ berg cha.rged to a number oi the smaller znunicipals(Bushnell, Newbe ~, WUliston, etc.) to r eke a. concerted eizort andfirn p oposals to 'ouy out kese unforced.te sr'~ systems who werestol paying over 15.0 mills/kwn for wholesale powe . R. W. Beck andAssociates ma.de a.n ana.lysis of the "sell ol'i" proposal of the Companyto the little Town of BushneQ. The Cor pany's analysis, using the oldX6. 0 axDls/kwh wholesale power rate, showed a de minimus advantage

to the Cig ove a 30-ye*z pe iod of $ 1o6,000 it'it "sold out." Apie co=ecMon to the new 5+a lower rate ecuced this "advantage"

to a loss of $ 90, 000 and a. correc. analysis oasec upon a. zea.sonablewholesale rate showed a. loss under."seQ out" oi $ 1, 950, 000 over30 years. (More aoout the zemazeble "BushneL> Siog" later.)This inmziated the group, w o pledged that the rate design of a.ny

settlement would znoze eclat Dly eaual z:e the costs of power as betweenla=ge a. "- s .aD syster s. armed with the co=de ce genezatedby thest=enon of un.ty, all of the smaQ systems inc vidually zejec.ed theCompany' u-~ately 'ell-out" proposals,- wi~'" good cause - and withgood x esults to their citi."en customers. ~s~

The Ten City Grot p, through i.ts spec'al counsel andVaXlace Stuzgis, City Attorney a.t Ocala who succeeded Jack Baldwinas Chair~~n following his death, served notice on the Company thatit had ti,zed of delays - "set+'e the complain oz be prepared to go tohea~gs." he Company mace a. settlement oyez on April 25, 1967of a lu p su~ $ 25,000 ze und foz commodity acjustment ove chargesand,a $ 20=, 000 annual ate zec c+on retroactive to hfazch 15, 1967,and prov:c'ng further for a <vo-year mozatoziu~ on za ~ngs by theCompa y or ".he cities. he rate cesi~n pezpetuazec the wide dUSeze cein rates between smaU. and ~~" zge c.stomezs, the small systems stillpaying ove 13. 0 mals/kwh. T¹s offer was not a.cceptable and itprecipitated additional mon ".s of rate design wo=k and conferences byour i~, the 7'PC Staff and the Coznpany a,s we11 as fur~Der negotia-tions.on rate level. One important objective of the municipal systemsm.s to achieve a meaning& "".i~h volta.ge discount" so that a growingcity could ~he powe at 69 kv and oe able to a-=ore provicing its own~nsmissioz. loop in town. T -'s is the only wa.y a growing municipalsystem ca. cizect and control its own sys ez grok and integrity.Finally, on August 30, 1967, the Company ga.ve notice that it acceptedthe Cities'ate design on tne conc'tion that all cities-agreed to acceptthose za,tes.

After consideration, the Ten Ci.y Group, on Septembe" 15,1967, recommended to the inc:vidual citi.s,,'nc so advised Ae Com-pany, to accept Le ezms oi the Settleznent Agzeeznent that had beennegotiated. 'b's final agreed upon zate procuced a reduction of$225,000/year and the highest cost to any city was 11. 7 mills/kwh.Xt was pointed out, and impo ta= ',; so, Qxat the Ci.y of Baztow "reserveits position &"t it is lega'~y =ree to purcha.se i s tota~ supply fromothers, oz to gene a.te powe itse>=."

— D212—

Ente Bartow

Aside from the fo~lities of filing the Setd.ement Ag eez enand coUecti g refund checks totaling $291, 000, the rate coznplaint phaseof the Twelve City Story was over. The City of Barrow, in the mean-tizzxe, had waged and won a long, bitter ught in tne rlorida Courts for theright to te mat its contract with:-lorida Power Corporation. Thecontract term had been in excess of tnt permitted oy City Charter.Many of the Tw'elve Cities were by now ope a~~ng "out-of-contract"in that on the te~~ti.on dates, on the advice of counsel, they had notsigned new,con act terms and conditions.

Bartow, howeve, had a singular purpose in'its e~-ort.Served fo many years by Florida Power Corporation since it shut downits own generaMg plant, it looked with j s~able envy'at indust=ialcustome s at the Citv's doorstep served by neighbor.'ng Tampa Electric..These retail cus omers were being sewed at a standard published retailrate available to anyone on" TECO's system which was fa cheape thanBartow coMd purchase at wholesale. Lx fact, the Ci y was actuallyalready pu=chasi g a smaU: part of its requirements for an isolatedload, from TZCO't that ~e. This retail rate was lower than the oldT964:»lo"'isa 'Powe munic pal rate, ie 5+~'o lower 1965 rate and evenlaw'er than tne 1967 set~>ement rate. 3artow asked Florida PowerCorporation to match the T" CO adust al retaD rate - it refused.Bartow asked TE CO to se ve it,from 69 kv facilities that Lterally mright through the City. TECO refused on the grounds that it had aterritoral agreement with:"lorida Power.. Bartow then went to the:»1orida P~w~c Se~ce Coz= assion as' .hat body wnich had approvedthe territonal agreement, to investigate the

circumstances

under whichitwas e te=ed into - since it denied Bartow the benefits of free and opencompetition in securing the lowest cost available powe supply.

The ZuMce Department began an investigat'.'on and on Zuly 8,1968, K.ed suit in " ede al District Court agmst the two companiescharging violation of Section 1 of the She~an Ant,"trust Act. The suit,which is s~ underway, seeks to halt such avocation of ter=itoriesaffecting interstate business and to enjoin the companies frozn eveengamg in such practices.

Zust prior to the actual Dng of the justice Departmentsuit, the Company capitulated, offered essenMy the same rate level toBartow as TECO cnarges a coznparable sized 1ndus~~al custome, and

— D213—

overed the same level of ra reduction to the othe" nine cities. Theove ~ll ra.te reduction to the te" cities was an addit onal $ 378, 000 or8 4'. This rate =M>y went into effect in Septeznber, 1968.

Bartow, led by its ab3:e City Ai ornev, BQl Norris, andCi'iy Meager, Cha"we Odom, now retired, had heeded well the

plication in the PC St. ~<michael's decision that "superior bargainingpower" ~ ould sec='re lower costs even t~n fairly regulated rates oasedupon M~. cosi of.sa~zce concepts. As w.all of the Twelve City em~orts,the victory oi one was t'ne victory of all.

Since its firs meet ng i 1965, Ms small, seemingly help-less grove had succeeded a unijrig in a. way judged iznpossible bysophisticated H.orz.c'ans. They ha.d secured in a little over three yearsthree znajor rate reductions irom one of the South's largest'nd toughestprivate u.~~ co panies. They had secu ed for the'" custozners reduc-tions izz wholesale cost oi power from a. range of 11.0 to 16. 0 zzziU,s/kwhdown to a range of 8. 6 to a. h.'z'n of 11. 0 r~s /hmh. The total aggregatesavings am>cunt to over $ 1, 100, 000 annually and grow wi h each. succeed-ing yea.r.

The Bushnell Story

How let me teZ vou briefly "'xe fascinating story of wna.HtQe Bushnell was able to do as a result of the Twelve City effort.Rezzzember, ~s is one of the cities that started off pang 16. 0 mills/~hat who3.esale in 1964 and one the Coznpany tried to buy out. It had a.t thatone, a.s you znight ezpec, one of the highest reside tial rates in thestate. It 'nad not hoo'ced up a new all-electric customer in years - theyaQ located well outside of iown on the REA Cooperative'sys em. ThelitJ,e town was act~y dy'-g, or rather being strangled.

As soon as the ~-al ra e reduction was secured it orderedou- Z ~ to make a. retaQ rate studv with the explicit insamons thatitwanted the "lowest ~~-elec c residential rate in the ate." Ou-cost of se~ce studies showed that even with the reduction of over5. 0 ~s/hvrh in wholesale costs they couldn't do this a.nd s~M~ znakethe same Pnd of retu~ to the Ci y they had. made in the past. Theyvoted to red; ce the City Government's return from e1ectric operationsand pass it a2 on to the rate-payers. Tus they did, n ue firm oe>=ethat only through reaLy lcv- residential rates wa.s tne Town oi BushneZgoing to be revitalized. So timey did it -'put into effect. the lowest

— D214—

-8-

aQ-elect=c ra.te in the Sh.te of:»lo da! And they were deadright.'efore

the rate eve went into effect every appliance dealer in townhad sold out of air conditioners, every new house in town and in theiimmediate se~ce area that was planned or unde construction wentall-electric, ¹ economy spurted and has continued to grow. TheBushnell story is s+M~ being written.

The Con+'m»nz Twelve City Story

So is the Twelve City Story ~ being vrAtten or, havingseen, by the example oi Ba, .ow, the benefits oi "superiox'argainingpower" the group, although jose fiably proud. oi past achievements,was not now content to x est on its 'au"els. There were soxne whothough, 'RVhat else can be done? Surely the Company would notserve us at a lower rate, and we have a.g eed to a moxator'um un'July, 1969." Others, however, pointed out that even though thereductions were large, the cities were in eiiect only being served ata rate level ecua1 .o whzt another company was offering to its standardIndustrial retail customers.

Thexefore, afte much consideration, the Twelve CityGroup, which includes Qu'ncy and Chat~hoochee, plus the originalten cities, formed the Twelve City Public Power Committee" andadopted bylaws. Art cle T. of the Bylaws states the purpose of theCommitte e:

A.. To coorcinate its activ'ties and promote effectiveparticipation in the Florida Mun cipal U~t.esAs sociation.

B. To study tne means of seazxing lower public powercosts by power pools, interconnecti.ons and technologicalimprovements a

C. To conduct negotiations with suppIiers of elec~ cecity forbettex ra.tes and seduces rendered to the zneznbers ofthe Cox.~ttee.

D. To cooperate wiA m~cipalities and other a.ssociations'purchas."ng wholesale power a.nd opera~~'-g gene ationfacilities to i . p ove t'"e se~ce.renderec by the memoer-ship municipal systems and publ'c power throughout theState of H.orida ~

— D215—

-9-

Z. To andertadce mech projects as ~~-om ~~e to ~e maybe approved 'oy Ae axezabership of this Co~wattee.

The Co~ttee elected Mr. Cha lie Shreve, Di ector ofUtQities a.t Octa., a.s its first Cha'~an.

— D2l6—

- 10-

En Zuly, L969, the Twelv'e Cities Cozzxm'tutee employed'. V. Beck a=d Associates to p epare a Phase i - initial Study of a~ "Long -Range Powe Supply and Transmission Study." That Studyis stxIL active'y underly. w~:"ebra.~, L970, a progress reportm,s znade to the Twelve City Comm t ee as to the results oi whatz.s caIled the "Base Case Plan

Th.'s "Base Case P1a=" s one which inv'oLves only theTwel~ e Cities plus the generati g systems of Gainers"Me and Lakeland.A,s can be seen om the map showing the location of:"lo 'da M~cipalMeet 'c Systems, these two znoderazely large gene~zing sos ems lieat the North a d So th ends of the Centra1:"Lo da area where the teciti.es that purchase aLL their reau rements frozzx.glor'da Power a-.elocated. Xt was decided in the original scope of worlc that a generation-~smission system Meing hese ten c <es and two generati g citiestogether might be the best first effort at the. formation of a floridamunicipal Pool and that any Lar<e scope projects i volving othe= znajorgezxe at:ng systems such as Zacksonville o" Orlando should only be moreattractive economical>y than this "Base Case Plan.." lt, therefore,represents the high st alternative power apply cos that the TwelveCity Group should be ~~ng to pay..

A further reason for selecting Gris combination of citiesas a Base Case was the full and coznplete cooperation and in crestovered by t"e Cities oi Gainesville and Lalcelazxd. Through theirengineers and operat ng people these two cities have applied aLL neces-sary load and system data so as to properly study the future loads andgenerating requirements on a "single system" basis.

Suz:xznarv of the Base Case Stud Results

~ Zollowizxg is the projected system net Loads of the TwelveCity Group and the G oup plus Lakeland and GainesvZ~.e.

— D217—

Yeaz Twelve C' C o-oAz'=ual Peak Load Mwl:-nergy

(MVP) (MVTn)

Twelve City GzoupPlus Ga nesviH.e and Lakeland

ual Peak Load Annual Energy(MVE) (hGV'~)

1970 140 690, 000 , 365 1, 800,000

1980

1988

310

590

1, 530, 000

2, 910, OQO

1, 020

2,300

5, 030,000

11, 340, 000

This future load level represe ts an average annual ~rowsrate in su~er peak demand of 8. 4%%ua for the Twe ve C-ty Group and 10. 8%for the combined sys e~, inclu~g GainesviH.e a"d Lakelazzd. This projecti.onof demands represents what we bel eve to be a reasonable level o'f growth forwhich generation expansion programs can be p armed.

PFe calcula ed the seasonal load d-versity to be l. Ofo between .heTwelve Ci<- members and 3.2~v bema'een'the ~e .oers of the coznbinedsystem (Twelve City Group plus Gaine stille and Lakeland).

3 ase Case Genera on

The two gene at:on plans, outlined in ke scope of seduces forthis Study which we e to be considered in the Base Case. plans, followsz

(a) Lakeland and G~esvMe would supply he totalre~rem ts of dxe combined system by insMllinggeneration on a "take your h " oasis at Lakelandand GainesviL~e.

(b) The combined system dema ds would be suppliedfroze exis ng generation at Lakeland and GainesvU1e,supplemented by a large single genera=~g pla"t.

Af~r considering znany factors, including load size andgrowth rate, exisQg and p=esently alarmed ~eneration, reserve recuire-ments, and capi~l and operating cos s, the foL'or~ g genera~on e~ansionfor new u-'ts was selected fo- the 3ase Case Generation PLan:

— D218—

- 13-i~ i ~

what it would be under "isolated" operation. Hrmever, &zrthebenezzts obta~ble frozn interconnected operatic have not beenincluded since t ese are dependent upon detailed @negotiations.

Annual costs of power at the bus ba= ~ere calculated forpe od 197 -1988 using this generation earn~on plan together

with aII opera. ole ews~mg and

presently

planned. generating units atLakeland and Ga'-esvMe. A zzu~be of factors are inc'uded in thedeterzznnxe.on of t"ese annual power costs, incZa2ing the initial plantinve~ent, financing costs, working ca.pital, tEa cost of money,depreciation, inter. replacemezzts, insu ance,,%e cost of fuel,zzxed a.nd va 'aole opera, ting and maintenance expenses, adzninistrativeand general expenses and the mode oi operation~der the load du-ationcu"ve. Fuel p ces we" e based upon prelizn nary discussions held withfuel suppliers. Ce~n ass~options we e mad'e with respect to debtservice schedules o- sozne of the=existing genemwng facilities. VTeconsider, however, 't~~t our estates of exi.s~~ and new debt servicereouirements are s~~'ient'y accurate to provic the basis for reason-ably close compar. sons.,

Ba.se Ca.se xrans:ssion

The Base Case T~smission lan selected consists of anetwork o high-vol>ge 1ines inte connecMg the participating meznbersof the Twelve City Group plus Gainesville and L-%eland with exis~~ andplanned genera~g stations. Transformation fac'ilities have also beenincluded'to provide power at the prese t deliver. voltage for pu chasedpower, o, in the ca.se of GainesviIIe and Lak~d, a.t the existing~nsznis sion system voltage..

The backbone of this transmission apstem consists izntiaIIyin 1972 of 161 miles of 230 kv line interconnecti-~ Gainesvi11e andLakeland via Ocala and Leesburg. Se~ce wouZ.: be supplied to otherparticipating Twelve City members through 69 hr feeders. Because ofthe lengthy t ansmission di.stances involved, we 'have assuzned tha.tChattahoochee and Quincy would not be directly connected to the basictranszn's sion network, but would conwue to be served by'Florida, PowerCorporation a.nd the Southeast Powe Adz as~on. For purposes ofestimat'ng overM power costs.to all pa~cipa~ systems, it has beena.ssumed, that their po~er purchases would be znade for thezn by thecombined system and they, in turn, would zna.ke power purcha.ses fromthe comoinec syst m at the sazne rate as that pa d by those systemswhich are di=ec- y connected to Ae tra smissiozz network. This

- 12-

Base Ca.se Ge eration Plan (1)

Loca.tion Date Base Loa.d

CauacitvGas Turbine

P eaki.nz)

VariousVariousGaine svUleVariousLakelandVariousSite "A"Va~ iousSite "3"VariousSj&e IIAtfVariousSite "3"Va ousVarious

19721973'19741~1976

. 1977197819801981,19821983198519861987.1988

100hi%'00

RIVAL

200 ivy%

200 hQV

400 hOW

400 hOvV

89 M%V45 MvV

'5 hOiV

67 MVF

112 hOV

67MiV'34

MVT

67 hGV223 MiV

(1) A 6vrd 400 2vf%'ase load unit is required in 1989.

Both Lakeland and Game sville presently have under con-struction new large uznts of 100 mw and 66 rnw respectively and both,at new pla.nt sites. The first two 100 megawatt units under Ae BaseBase Plan would oe in~illed alternatively in Gainesville and Lakeland,at the new generating plants. The 200 mw and 400 znw ~~ts would belocated at new plant site's east oi Gainesville (Site "A") and northeastof LaIv:eland (Si.te "2") and wou1'd use supplemental cooling. The gasturbines woM~d be insured at various Load centers througbo-t thecoznbined system of the Twelve. Ci y Group plus GainesvXe and La3ce-land, The total investment in new gene at g facilities in lc88 is some$ 358, 000, 000, when ~ressed in present-day dollars.

Zn view oi the "Gainesville Decision" euMg to Gaines-ville' interconnection to Florica. Power Co poration, and in view oithe Lakeland.- Tampa "lectric Compa v interconnection agreement, weas+ wed in .. e E3a.se Case that certa. z mn'mum benefits *"e availableth=ough interconnection wi h members oi the Florida. Pool. Thegenerating capacity eserve uk'" '- the Base C se s lowe" han

'

— D220—

- 14-

assumption oi purchase and resale for these wo systems has beenincluded '- the calculation oi the Base Case average cost oi power fo-study pu=uoses only at dais Adage. Ce ta n legal auestians regarding~s possible approach, as well as many other a,spects, willneed theattent a oi competent legal counsel.

The t=ansmission system by 1988 would consist of -'a3 axDesof 23'0 hr line and 130 miles of 69 kv line represe ~wg a total 'nvest-ment oi $ 56, 000, 000 expressed, in present-.day aallars, includ ng$ 17, 000, 000 for switching sta.tions, su'a stations and transformation.

\

Annual costs ai the Base Case .ransr: ssio system werecalculated fo the period 1972 to 1988, and included as part oi the over-all deH.vered cost of powe .

Power Cost Savings

Coznpar sons were znade of the estimated total deliveredamyl cost oi power unde- this Base Case Generation and TransmissionPlan arith t'"e annual cost oi power purchased by the Twelve City Group

-from florida Power Corporation.and the Southeast Pawe Administrationunde em~g rates. » ~.ated annual sav gs ta the Twelve City Groupfor the period 1972 to 1988 otal approximately $ 26, 000, 000. %'e havealso esMma ed that comparable savings propo~anate to Keir loads wouldbe available to GainesvQle and Lakeland through the: paWcipatian in apower supply pla of this nature.

CARR" NT:-XPMNDZD STUDY=S

The Twelve Ci y C'omznittee received the "ebm.~, 1970progress report enthusiastically and authori ed, aur "i~ to proceedwith the balance of th Initial Study. This wo-4 involves the evaluationof alternative powe" supply arnngements of a larger scale.

'ase 2 - This case is simi1ar ta the Base Case withrespect to the ~'ng of generating ~t adc'tions;however, the gene~kg additio-s would ae made withunit sizes larger tnan those required to meet the demandsof the conbined system. The excess capac.~-, whichresults from such a plan, would be marketed at attract veprices to neighbor ng syste. s in Ae State. Unc'.er such aplan, the combin c systezn oi the Twelve City Group plus

D221—

- 15-

Gainesv&e and Lakeland would receive the be efits ofsca.le by meet' "eir own power reouirements withgeneraMg ecuipment la.rger and more eXBcient thanthey could ju~ in the Base Case.

e

Case 3 - This case is pzeL~azy evaluation of a powersupply pla.n u~~z.'ng up to the maximum size units beingpla.nned on a regional basis. Such units would be la.zgenuc'ea. o- conventioral u 'ts in the 800-1, 000 mw rangeoz a combination of both and would be fHy .ntegratedinto an assumed staae-wide Municipal Power Pool.involving aQ m~cipa»y ow"ed. systems north of:ortPierce and Seb~g. The combine'd peak de ..and of thesesyste s is esbsoate0 to be ooe".9 000 mee'by 1990! it

s'os

ooioioo that sash a ts,ae- setoe 'ivlvmieioal Povre= Poolshould be the ululate goal of all municipal systems inthe State, and would show the greatest potential powercost savings to ale. members. The primary pu"pose ofthis pre~~minary evaluation would be not only to evalua.te.potential savings to the Twelve City,Group, but to providethe basis for an evaluation of whether or not su&Gcientsavi=gs migh 'cc~e to other municipal sys ems topa~cipate in detailed studies.

Based on the work we have done on Case 3 to'date andindividual power supply saazcie s just coznpleted for sznall - mediumsized genera~ g systems in the S&te, ".eze is no question that thisalter ative represents ke lowest possiole power supply costs to thegreat bulk, '~ not aQ, of the municipal systems in Flonda. In ordezto become a reality it znust be soundlv pla.nned, adequately Gnanced,cons ucted, owned and operated by and dxrough a suitaole organizationeznbodied with ail the necessary powers, duties and authozities to dothe job for the joint 'oenefit of the pa~cipa~g systems.

The Twelve City Group has selected special counsel toassist them and a.re now in the process of selecting r lorida Counselto study the many faceted legal a.spects of accoznplishing such a. goal..

R.st as in other states, such a.s No 2 Cazoliw, wnere theEPIC system is being planned, -any sophisticated people are saying"It ca.n't be done." That isn't bother ng the Twelve City Gzoup - --sophisticated people have told them tha.t oefoze.

D222

~ ~

~ ~

fflQ i D2.V~V

~ ~

~E

0

PQXSLXQi2~, | Q VQU, eC48~ ~icLC~P-CiL Cle- Q ~Q ta.V CC

Or +~5

~ W

j~iH

. Cc:e eh+

go~ ~

~ ~

~y

~ ~

~ ~

~ r

~ ~

~ \

1

~ rr

cf 8 ~ 0 cl 0 g Y %1>QC "~Q gaga~

~'5 's "hc p"oposcd;..L;nic'=a''ci"ic caa=t "c1~iva oil 1 .Ti c« Q,JCR, 5 io,'Qe ia QQ)rQSQni ilgc i cl 3 lot cl1 Qc„S3.C Can -,"1

beige .". '".Vasia=-o:..".ed e'c'="'c ca'.apenies a..d "puhl ic" aaL"er.

T F15 0' 1 'p Gooses io prov de '~o» PP. ~zliQ connQc Lcd g»id1 el ec 'C chic

' 'CS . a, inc iniC, C'nclnge a e)ec r j C

one"gv. "" p=ovi e fo= caapc"a."ivc o;we -sh'p ar.d opa"aiion ayL".,un c =~1 i"~ cs a= .caner='...g .v~d i"a..s-„liss.cn .acil ~ " ~ cs. t!a"e-

c 4Iove", " = -e~ "s ."o eau =e m«nc "a-v "1,'na 'na" hv a»iv«~ie~ ~

s cu '-'S ~"

L1 C SQC 'n, 0 (3) Qec«+5 O. 1Cga'ihc1 i. '«g=CG-

raen"5 "ri"'.". =-iva. o utili"ies ~o" "~z'no ling" ova" Qe'- "ranr 'ss''an 'nes, Seci'an 6 s~a as isa" he Public Se "vice Ca™-

I 11m'ss an shel '~»a=i =erson@"1 e Zas 1nd "egul a"'ons "ecuirinc~".e '.".'. "Con..e -'on a= elec"" col i=ar.sax" ing sac 1 ~ 'es o=

'al o eel=='c sysiems en jay i-oad "ax enemy 'ps a 5"a ad va,'-ez, inca-...e, an> o"'ne- -'z es ..Z aav ul sian 'e.l arnounio= Lc'v cas~ gave=.....e~i paL<e- 5'r<au'd ae ini=ocuced 'n o'=1 a ida"o= ~we '=a."~e='- o= "na "p=e~e=a=.ce cus" o~,.e=" melee� "s a a.

.V~V i1 ' ~2. ' C» "C COOS =c. ~'Q RSsaC i2. ' ., i LS'Oul ~;~Lc«.'ie»q ~, c»»~», q» q ~C'»'Ca~-G. ' Ve ' O iiM v«.lvc~ie ui' 2.i'S e

' SuciL c«

coo:".e==-"ive au'=ho" ize 'nd a=go .iza=', such C.'.eap po e" c uld„,e -

. - ede pl 1 q i qpnCer O ede pl 1 > Oyster~ CCnve. '- ~ '~ ~S O ~-. L«a~@ ~S p ~-ly - Q1 churl g + Cde~l:-ac1. v a g 1 . 5 ia 8 i Le 9(:in Igney c~ 'Q QV i+IG fa.u LiC'c S

n=ou=..". "az -exe.. p" a n" s. Le-'s surcease z<" "..e Y<nkee-0 'ia jc i «ecc«...G P GR ' V, WiiF' le - 1 O dP Vtlun''P 1 el e i -C

coal "ai'v -id as ' sau-'n =.". ancna-. Zi is readil v seI

c'~na" a. ="Oa e:.LL nai '~au'C OOSe.. ga ."'L'Le,.:,yL S,'"O„.".Cen~d cP'lao, --'C'-."" ':.'=,

~ ~ p

D224-

P r ~~ » tl»

r ~ ~

~ ~

IlWiC~

Ilrttcnc<4ar. nn«l <sss l

Cntrt<t i444C <

»I Jr 4 I44~ «4 Ct»'tl» ~

rI IA r»444Re <<st<<44<l er'rrn

t»4rt»4~4

~ tl rtr»tt

~tt I Ir<» u m aa~ » I»tt 'I <r»~n»»»I ~ It M,

CL< ~ < ~ Cava'sr» ~ ~It »r» ~ t»»~rr tr ~ »»I t»»r»4»tr~tl~ ~ t»III»r»Ittttrr

plaN 5ccs '-tc~ asslqa.

ClNL <<ants<: ~ le<4 cs<iiicttt <l set<art

@4'scn tear I: roars< Penes cnlcs

ts ancA 4& <nc's<sn <ncf snnt<ncse,

Pcn rlcnear <4 tVV4 war ten ~ S<t

r 4 S Wee<en <rr<rn<

ll~ 4 <<Ill<les. s ie <srcsnlnlvn<Ncs aav.i~, fear avsscrlsce s s.s.soo sleet ll lac

'sssihill<y~ ( 'bv<lc<ng <ac<, cue~: sects<ac g >lans sr sLncs...144 Aa rrrscn<. ".c cuss ~ ttrC <leam

0 a @msgr i<tea Pl<<sr steer t"CS. Sne

ac<i i. s«a<eric <s <n<sr ."a«sn<c<s.

<snc ~a.n«cs vs<4<tee ln ac ae <rc

Ocgp. Alscsva. Xvsnncil. »»g-

p Canner <ev lF~f

s<strCrt

~% l,'t l 4I~Oat~l~

tran

0r»r» 4

»<C

WII4 S'rtt »I ~tt ' I

A»»4

~»» ~

lrrrt

~tr ~

~ ~

.p' . ~s ='r- 'cc.'~rI

/

/I

'rrr~r C»r J ~/ J>>the 1'' '

+ /Qr</ ~

/cc ~ pc-Ar ~rli qr'riJ~ C<'rgb ~'rw

~ l

— D225—

c~.<~'~g7

~ ~l

I

~V ~~> ~ .

~g )'(f: c j 'C~

~ 3.5'r~. l 8~orner or

s ~ W, ECSTWICKHAHAcot, powcR rAoollMOHCLCCTXIC PIROOVCTlOI4 OttAAWDIT

June 9, L96o

'I

)vs-. Zo~ R. Z'eilv, M-. C. H. Starton, i~. C. D. ivfcintash, Zr.M=. =""ed. C. Cosset, 4 M-. Joe 3. Dykes, Z".

Members oi the Lnte"con-ection Co~ttee:-Lor'da hit "-'cipal Unties Assoc ~aa.

Dea= i&e~bers t

The Boa=d of Di ecta=s a i s ee~g - Kissi —ee on May ZOfo=ed the i"tercannection Cor."—.ee mith the purpose of s .dying thepossibiL'ties oz a~cipaL i"te=co"-ec 'ons th"ou haut the State oi ~so=ca.4 Cnai a o- the Con—'. ee, I a= ~rriMg to ask you, to ~ vr't" =e"ega"di"g the- approaches that Ae coatee snauld take to solve such acomplex, situation.

I see A" e or fou= a=eas az s uciy for the ca==='ttee - Legalaa"=e=s; cansulti-g eng'-eer coo-cnnation,. public ".elatians; a-d a saleseffa~ to show ~ageaxen the beneu s oi i="e=co-"ected. ape "ation.

|n the Le~~ stucy, one of ou= co~ ~ee =e~e"s cou'd assu=e"e responsioil=ty o= gat""e=-'-g cata ="a= other =ur'cipaiities'as o the

Legal oastacles can-=onmg us ana. estaalish the ='ht oi ou= .=~cipals ta'e=con"ect. "ac" of us oroaably is .vo=ki ~ u=de= di~-ere=t advs. Ou=a~obeys caulci c=aR ben'facial Le~ sLauon fo-- the 1967 Leg'slatu=e.

j ~

Za the ca" sung engi" ee= a=ca, the. pt'able~ appea "s to 'ae ore oicoo=~a~~ aLL ""e va"ious cansultan s'c viNes in a=de= to =e c" the

te end oi a staoLe and "eliable =t 'cipaI g=c of st+" ciert capa „'pto g".oar tvi " au= =s.a='da iota e. 0" e of ou= ca ——'-.ee we be"s =-ght take .an a" assi~en'o bring to au= P=st tneet.-g a list oi the consui~wg engi" ee" s-eo" es e"~g "e ~~='ous un'ioa" es.

Ta, the publ=c. "~Mans a=ca, a-. sa=pl--g o- the public zeeU g shoe'dbe mde so t="~- tve —'gh" p=event c'-=c. 'es ass=-~ '= "-s "e d. So™e afau= em ~tt-cipal a~cials a"d, t.K y ape=ato=s p-aoably a=e gai=g to fo"= a."a=d-co-e =esismce against any eifo=t to i"te=co" ec- in a"y ~e= vrhich

4 ~o~c c-—-'s" -"e abi" y az the town.to p=otec" itse'- '" e=e"gene'es. ''sleads .a Ae possible s c..p oi,va 'ot:s con ac. fa= .s ay "e ca=='..ee so:hat:" aca"--'"g a pla", -. e cont"ac- io==. tvau.c. -at be subject ta co.":."ave'"sv bet~veenpa .'as tv'-" c='-=e" e"'p-'-'or~-

— D226—

xCeO~ CCJ'T ),'I

XCAO

i . j>'I l~ ~

~XCBO'COAT ~

~ (I

Lzterconnec on Corn~tree Zune 9, L9"'o

Zacksonville has Long 'oee operaMg .'"terconnected with:-Loridz. =owera=d ~z'ght with the ti~~' closed.:-ach of us is bac.'wn~ the other svstez=.substan~y in event of an emet'gency. Any othe" power tr~fe"red'is o= a"when and ='.available" basis, suoject to the convenience of eiWe= pa=~. =oyou- info- ation, E 'ght. point out mt E just lost my L40, 000 W mach'"eyesterday afternoon.'ie unit was ca==y' L20,000 D't We t' oi t-e

. failu=e and the =lorida Power 4 Eight ae backed us up oeautifully. Zacksc~Mewas spinning only 75, 000 ir. reserve and ~ certainly brings out the adva.-~geof one phase o- the interconnection.

E~ the co~~ttee should also weign the advantages ~t can oeed by the s.M~er mu-'c='rat'Mes > "g to the Lar~er'u"'c.palities, suc" as

ZacMonviLLe, Orlando or Latceland, ~smuch as t"e Large=. o" es are already tiedwith the powe compa-'es azzd there-would oe no necessity then for ~e sweemzmicipaL's to cha"ce the domination of thei= system by a direct i"tercon= c 'onwith a private company.

E ~M, too„ the commii ee shouLd e~lore the at '~ des of t"e o-'=cersarri d'-ectors oi the p 'vate. compa-es in. relation to ou= deter~cion o ~vea —u"'cipal g-'d Since collectively we would have s ong supoort for ou=systems, it —'ght ~e the p='vate compan='es face the facts of L'Xe anc acc pt,us as pa .. of a sute-wide opera~~ng grid sys em E have had some ind'.ca=on

'hatthere is a softening in their attitude. /E'm enclosing a copy ef'a -" Lmida map E d"ew. to ~cate, sozne af ="e

towns T.believe could '-volve themselves in an i~ercon" ection agreement. twould seem to —e Mtwe could do a two-by-two act'on phase in ou= wore; -eMg..a"y two to'ntercon ec. would 'oe a. step towa"d genug the complete no='"-southgaiCLo I

E.~,We committee ought o consider jo~y owned large "ucle~genera '»g plan s a d.we shou'd discus the Le~al aspects of joint ow"ers"-= offaculties. a@ere a" e many isola ed areas Koughoz:t -"Lo=.'da whe" e a nuc'=station could oe buDt.

'I 'I

E pass these thoughts alorg. to each of you hoping that E wM get a =eplyfrom each committee memoer prior to serg a cate for a face-to-face me ~g.Zn this way, much —e would 'oe saved and an agenca for the commi..ee ac=vitycould be c"awn up for ou= '-st meeti" g. Please g've me the benefit oi aL',ourideas on the subjec

~ ersoz.pC 8' \»

~AV3/res="cL.ccz ilier. B.oy ransel

'v&.c z" Cu="'"~-a—lCPO~~~>te ~ o

' ~ '//

I— D227-

i~:~corT'~/.;t

Very, ~y you=s,.

30 s~a~ccc,C~~~gia e=co"=ea='a-" Ca —.=---ee

~ ~

~ ~

'RLANO/g ..'.8,'c: ~:"mCrri-

~ „, I ~

. lI

r

I

m

1 ~ l I ~ '

. r, . P ~ .. I ~,. " '„',;+ g ME494VRNK'";

'..::C~

, lpaee04,

(k~~

I I~ I

.I

A ~

~: "~ ., ', ':P FERhlAP4Qi YW ChC.ACR . " ..-.'.!-''", '

'": „" ~ ~OC4 It'AA;

'!'r'..:,;"'P~~~~~g~,pi~~ ~ g>cx~oNVu.' a~cg;"-;-. !:

i'I'

.'.1 . L !' "~,"": ', I'

l ~

..I ~ ~ ~

~ W UAllPlil4GL ~ I < ......" ~ g~j'q I.....' . ~ ',A,g ' ig jjyjqt, ~ '

~~

l

(

'lII

II

I

I

,-.r: I

~ C

~ ~ r

'r ~

~ ~

~'

'i' I> '"' ~

I

~ ~

~ i

I I ~ ~ ~

~

~ ~ ~

~

~ ~

~~

~ I«~

~

~~ !~~I

I~

~

!~I~

~

h

~~

~I

~

~

~

~~

~~

~

~

~

~

~~

~

~

I~I ~

~

1 ~

~

~

~

~

~

~

~

~

~

~

~~

~

~

~

~

«»

~

~!i~

~

~

~

~

~~

~

~~

~~

~

~

~

l~

I~~~

~

i~

~

~

~

~

~~

~I ~ ~~

~

~

~~

~

~ ~

~~

~ ~

~

~

~

~

~

~

~~

~

~

~

~

~~

~~

~ ~~~

~~

~

~I~ ~~~

~~~ ~~

~

~

~I ~

~~

~

~

~

~

~

~

~

~

~

~

~~

~~

~

~~

~

~~

~

~

~

M

~"~ ~ r, awol r! ~~ ~

! !~ J'1 rI 4CItO~Irr g C~T r, ~ >CrlO. '~ x'NO'~ COev w

'. \~ 'I I' D228 I'rl

I !'!

Q e e see e«,$ C e, eQ pee eeeQ

L. TTZP. QU- S "Oils ~i: B.=C='Z.D NG =- 'u~v~TZQ>wQe

"~~03,WAPQVI'~3. ":;C=-'G'

A.DV='N ='G:-S 0:" POD . 3. 'PQQLI iG ~ 1

'.vtost Mu=icipai Systa..s m t'.".a Stat oi:"lor 8a are, ~a" eraliy

aware of ~e adva»tages of power @co.'wg bu . oer'"ass have "ot soec ficzi'y

related ~ese pote"tizi benefits to t.".el= ovv Syst = o ai 'eaerat."=g

syst ms geese acva-mgas. a"e as foe'ows:

1. ~ecxuctio o "'"a ceavy '.".v 3~ant i- reserv czazc ty

ecassary o p ov'6 czpzcity o a 'd atac'ys.. us."g tze "..ec=s' fcc=c ~- - '"arrest u='". Ou= o= service".. Q" c=e, sys- ms ~)s reserve

„req-'= =e"., = "=esa" "g urges ~ ="':, .—..ay c. s .—..uc'". as "0-go o". e '"-s-z ec pa=era''=~ ca=aci y. ~y co—.=a=isc", iri 1a"ge —.ccer=power pools

I ~ ~ ~ ~

$ 1 '. 'e 8 ov t ox ~sp ec c- Qzbi 'ty cital«y ee al «««ac. oy e«c i~e ~be

systa=.. as reserve is o- A arear of 12~jo to '.5~;.

2. ~aiz i:ity oi serv.ca is o'ou"se i=mac'at ly ''. -rovec

wae= a= >so tea sr" 'c—" ystn is '-te-'co=- c. c. a ect-.'cally wi"". o-e

Cr =sure " .'ghbc==g Systa=S.

5. z "e=e is w on@or.«"'.y u"der ocolec oaeratio= to -urcwse

a"c/cr ere=a=pa emery du=i== .—..z'.".:e="ce - riots.

4. Th =e is a oc-cr.-'w v-c r.ecole'aeratioa for t-ee

ys.e —.=.c ea~. samos. caps"- «~« '4~4 +j "esui~ag f"o~ dz"y,

eee C~~y) a=6 sa""o=" c'-=a"e ce" c= civerc'~g ='= '=a" w e" we=-c 'oacs

occ'

D229—

5. Under drooled opera-'on t- =e is an o~aortaity to:educe4

t'"e ~ c" of 't"~~ed c"z be'~t '"- ~r" o '-~ >- s" ag ski - ~s e- -ve

Tee adc ~~onal advantages o= cooling to large gene "at'-g ~ ~

Systems a=e s 'o" ows;

1: T'".e ab"' to se'1 excess ener~:=o.. "e'= ha=~e= u='ts

at a cos- .-.'~.". r than inc=er.".e"-.al cos .. bui.'.owe= t~"n wLat it woulc cost

a"ot'=e" Syste to ~ene"ate t™s energy (econo y e e"~y. sales), to "e

.—.a:.ualbenefit of bow pa "t'es..

acvanwges of power poo 'ng to a ~en "a 'a d - "c.".a='.. ~

S —= '" -"- S "-.ys:e . s '.= -"e S "-te a "e as o iows:

l. O~yby bein~ e.ect" c"lvf"'o ec N. ". ol Q'n a, seen.

ans 'ssio byste ) ow cd anc c7pe a ec zt east i part by tne''/Lu 'c

Sys-.e=s, can ~ e: true oe ef.ts oi sca'e i= large modern canventiora a=c

»uc ea= p a=ts accrue e. to e Nun c'pa'yste=.ls. ' is t=ue wnet.".er

suc.= p'ants would be conte.—.alated for con = c on insice ~e State o"

wnet.. " cons dera-.on s given to suc" re~ona power supply p-ogra..s as

2e proposed Ya='iee-Dii~e plan where povje= wav'.'oe delive "ed to Z,o 'c"

meeW y:"o.=; rga coa~-z " d st m alants .'" Aocalzcma ove" r:"v trans...ission

l nes.

0 ce a nr=. e- o ~yste=.s "=e int "co=-ec:ed, prov'c g

-.ei= loans a=e ac enate, zey can;oin y s .cy " acva=tages ox constr c=="-

a ST q~ e Qc e cti ~<- 7 't ~'uc l» ger in c 'o? oi tJ'nd p cducin< 'Dower at fa4 a/

— D230—

~ ~'

~ ~ 1

%3m

lower cost zn cc. d be obta'-e6 on a"y '-8=v:~~ual Sy .e, vr."4 al1 of ze

&yplse~s 4a m ng ~ ~ the QenezL4s ~

3.. Tne ability to 'oase Load. a ve~ large single ge eraMgT

1

un't plus the a'dva"tages of Lower financi;.g cost fo= hfunicipaL Systems

brings the potent'al. benef ts that can now be achiev'ed from large. nuclear.

plants wikin th g asp of the iVu.='cipaL Systems of ze State. oi:"lorica.

4 2'ower pool'n of=ers to each Mu 'cipaL System: '- t'

State, co~a generating and, ou"chas n~ Syste —.s, alternative cower s rolyA

sources. w.":c~ are not>ow availabl.e. to '~ex.. h. view o he rani'. re- "

ductior. in, procuc 'on. cos of: the, investo=-ow eci. unities the availabil''~

oz suc" a ernate low cos- power supp'y poss bilities wi11 soon become a

ma..e= o- econo "c survival to .—..any of t "e ~Viu='cital Syste .s .'", the

St te, particular y wher ker is a.iigh3y co;ective service are'z

sl~stlon~

— D231—

RT OP THE ".M.V.A. POr.M SU?PrZ'O5&Z TEE

To The r.H.U.A."'o~ of erectorsRober-'beyer Hotel, Jackson, rlorida

July 2B, 1967 - 9r30 a.m.

Gentlemen:

Subseouent to ihe a.mal meeting of the florida Y~cipal Util»ties Associationin S . Peterson>-g las Q ch, the ccwittee developed ard mailed, a cuesiiomd "eto M~ : .V..U.A. members aslcag if they were i"teresied. »in developing alternativepaver suppl.'s for the member municipal utilities and 'rauld they contribute time.and travel for their employees to participeie in the. plug and implementing ox.

such project, and woula..they consider the payment of dues to the card.t ee on.he basis of kilowatt sales ='or the development of necessary engweerag easibit» ystud„'es and legal i»nvestigaiions. Apprczfmately one-h~~ of our members spondedto the auestionai"e and;r'th ihe exception of Homestead, ~~ »indicated an in+crestin the ~vrk of ihe comm"'ee and pledged f~»cial support to va~~ degrees.Homestead indicated that they were too:isolated for suggested i»nterconnect»on to beof any help to them.

The carmnittee nei »in lakeland, P orida on June 15, 1967, and discussed. the resultsof the auestionmes, the several iex 'torial, agreements under considera 'on by some

members and he apprava'. prd execution of some te~ tor'l agreements, thestrengthen'ag of ne Zt.. P'erce - Vera Beach tie ~~ e, the proposal io constructa iie ~e between Seb ~g and Viatula, and, generally discussed the shori and. longrange o'ojectives of the Paver Supply'ommit ee and the prccedure in'ch should beadopted for the acc~Mshment of ihese objectives. The conti.t ee elected toco-cha»~h p E. C. Shreve, Jr., Director of Ui~~ti s for the City of Ocalaand approved 6e appoin~nt of Robert E. Bathen of R. V. Beck and Associates as

seer Advisor to he Ccuzit ee.

The cha» ..an and co-ch~»xman vere instructed to select several engineers and.attox."'~s io meet with the c~ttee in detailing ihe prccedures which he ccnm'tt e

shM~ foL~air in the future.

The chai=m end co-chairm mei fo31oving the general conzittee meeting and dec» "edChat a pla."=»~g caLz t ee sess»on mnQ.d be he2,»in the nea future;rith members ofthe Poorer Supaly Cor;.'ttee; wallace E. Sturgis, Jr. of'Ocm~; Cha» ~ of the TenCity Grcup attenDg; and a representaiive of the engineering firms of Ebaugh and.

Goethe, |nc.; Reynolds, Smith and KZ3.s; Saith and GU" espie, ".c.; and R. V.Beck and Associates, being ~invited io attend. the planing committee session.

Subsequently the pled g committee session, 'rith +hose abave named asked to at end,vas hela. in Orlando, J~™ 1b,, 1967 at ihe Par~»ent House.

i5xch discussion took place at h»s meeting among a» present toward ti e develop.entof ideas and the enters'pi"~ons re~~tive to generaticn and transmission, as

it would apply io .he memaer util'ties. t1'o fo. al action was ta¹n by the cczr'i eebe~'eve 1 can accu"ately reflect ihe ap~»an af +he co~~» tee arith the. f01~a:ring:

2 ~

The muwcipal systems in H.orida must tie or die.Some of the m"'cipals will be required to co-fait themsel~r s togeneration and same ox ihe m~cipals w-11 hive ta comitthemselves io y ~hase their wholesale po;rer recu» "erne. ts from aPlox da Mi. ic'pal'generation and trans"'ssion organ'"ed as a non-praf'i organ"'cat on.

— D232—

86~342

~ ~ \

Report of P.M.U.A. PowerJuly 28, 1967Page 2

'

Rt

Supply Commit ee

~ *

3. The committee fee~w Cha a generation andfzom Che ~mkeland area t,o Che Ga«esvi3~eareas is entirely practical and. feasible,could not 'oe accomp3'shed xi~ ihe nextpressures we .may effect f"cm ihe privateaurilocal and sta e author'ties.

tranmission systemand Jacksonvi» ebut that the samefew years due to theoower companies upon

4. The committee agrees. Chat in order ta achieve aur long xangeobjectives we must stick very close together len~g assistanceto one another in comba irg the opoosition ~M.ch we may alle~ect and that with aut a dcubt we may lose some of our smazeembers to the large private power interest.

5 Me shau3.d proceed with smalI, ties among the closer of aur mun='cipalmembers and that, fram this meager st~ we can and ~rill eventuallyaccamp3~sh aur 3.ong range goa', which is to bring low cost oowez

to the member mun'cipals and perhaps other systems located along theridge or backbone oz. the State of Plorida Mu.ch 's not presentlytransversed with high capacity transmission fac~ties of thepx"'ate ut~~'y companies.

Yw. Mac Ouu~gham, at the conclusion of the meeting, distributed a prooosedcharier and arf;ic3.es of incorporation for the before mentiored non-orofitC and T as preoared by'w. >lallace Storey, former city attorney f'r the City ofBa Caw+

The ccamattee ai this time respectfu31y asks that the Board of Directors of thePlor'da Municipal Uti3~t's Associaiion aoprove the estaolisbment o- a non-profitcorporation composed of ihe member mun'cipal system and that the non-orofiicomoration be authorized under the auspicious of the Plor.'da hlunicipal Ut~~tiesAssoc" ation to assess the member cities an the basis of kilowatt hou"s ofelectx ciiy'o'd an~~y .and that the funds derived theref~ be directedtoward the necessary s udy as to feasibility of the interconnection of -'hosemember cities. The Power Supoly Committee also asks that through the Boardof'irec ors of the P.iM.U.A. Chat the P.H.U.A. encourage the member ut~~tiesta authori"e thei" ind vidua»y retained enginee~mg firms to co-operaie w'thand, to assisi as necess"~ the engineers to be retained by the non-profitcorooration f'r the deve3.opment of'ur long range generation and transmissionfaciM~Cy and thai there be * free exchange of ideas and data between thecorooraticn.engineers and. Chose retained by the individual municipal systems.

ZCSjr/ssp

E. C. Shreve, Jr., Co-ConanPawer Supply Committee

Copies. Pred C. Cwsseit, Vera Beach Joe B. Dykes, Jr., Ta3~a~seeJames H. Phi13'os, Seb~mg C. D. Hcmtosh, Jr., LakelandFaber+ E. Bathen, Orlando, Wg™eer A"visor

80J cJ43

— D233—

4

L

j iO.

'

~ 4«

«'

,4

~wj„

«LC,

~ i«

~yl~ ~g

:.iP ~

Jr<'L

'4,~~i~

'Xj'" ti

L L

«

ii~

~ ~

National. Coal dissociation reyort for 1965

gives an average cost. of fue3. used in uti3.it7y3.an s in U S, yer ~~ lion 3 U. Coa1 24.5g,

jas 25), oM $3.tg.HS3 cost y8.5P ~or gas and 63/ for oi1

Bui1ding yermits for Zdgevater for November

416,Z5o.

Xd.tt1e expected. to attend. a meeting in J'ackson-

ville of the bkuniciyaE. yiant oy rators..2e has

~d ideas of tiein. al3. muxd.ciya1 plan"s

together in a grid. for mu~, he3.p.. He thinRs

this mould mMe them comyetive M h.privatecomyani Bs a

Utility commission is to raise the yap of itsemployees and increase their efficiency. 'fants

it to date from 3 november. h

Vti3.i'ommission is also to maRe a ratereduction, gust no+ much is not pet known, but

ants it o be effective' "-eb.67.

'>~

i~

'~

'

n~ 34

, zg

~ «

.4ii I'

't$

Li~'ip

5

t

L

'i

ii

Little'is proposing a +30. i'tomic p1ant

to supp1y a13. municipa1 p1ants in an emergency

o peak 1oad.

Xt is stated some one has offered to finance

it if they a11 get together.

Thexe has been a committee appointed from

the city commission and. the uti1ity commission

to study the proposed uti1ity lax. H'nen thisreport is submitted Co3.. 'rTa11ace expects to press

for some changes ~

City commission. may ta1< aboutcharter'hanges

~monday night.RTa13.ce is for changing the 75~~ required vote

to a simp1e ma)ority.Zd.tt1e said in October that, the Co1umbia

Eve.. Beachside substation vou1d be back inservice 7 November, it is not yet in service.

3:ce p3.ant at times before the PZC strikehad. 40 emp1oyees, noir about 6.

liork has started on c1earing the new Post

Office sita. The o1d. house over, 75 years old

belonging to IIrs. Paul,'s fame.1y, has been removed.

Post Office is supposed. to be comp3.eted. t June 67.

ggttge ls r ported. as saic he d~d not care

what the requirements oi the revenue certificatesare, he is not interested.

Utility co~ssion ee the radio,. wished ever7

one a;-.e~ Chr" st s, and said tnt'e doing

a3.3. they c~ for good se~ce for the pro;~gCO1KRQnt,tg a

I

iVe;r bu21d~~g vore ls a1most at a stand stf't~

Some of the best building™ vechan<cs a-e yeapsn-.

town for othe jobs.

~ I

— D236—

G—- Gross is noir about F600,O'er -.ear.

z-«- City i~nager, savs FP~L has no spare tumor,

could. not and wall not wholesale poverty ao

co ld. not buy ~osier 'rom the~. a d e ve~ hard'ime

gettfnp jow'er for sazsula during the change over.

Florida louver corp. does wholesale power but FRcLP

@13.1 not le. tham in "-'..' terr'or..", so there s

nothing to do but i.nsta LL &no h engl le.J.- —ZT Gity was to purchase p~er should be:

able to p3.ve a Load o-." "000 hW at approx. QOPp IZ,picking. up the aeaks retth tact.r own plant.

v-—Tnclos=d are '.~'~les of pertinent info'rmat1on

from the re~ort, Ple s= retu~ the;. as soon es

po ss ib le.K--- Une Cou:siss ~ "ner saia that ~ f they .install

the small engines l lUOO >~ ) in w ice ther would have a

string of Chem to ~dyewater.

- D237-

A--- Zt is r" orted th t in tr.A last t~o years

tne ~it;- has 'paid ever 4100,000 for cons <ltingengineering fees.

u--- vo"ed to 'et =dp water have ~tr et lightsat ccst, ~2.13 ger month. Lhis probably does not

inctud 8 fixed c>arges.

~--- t'oncanrcn,' c «'.1dste for ~ounissioner on

~one 2 pre.~c.~as a col. u.":tl 'study of. the Oily'spower system..

u--- aavp, ~o;.".'." .".er in con-. l, ."or 13 years,T

says lie vill no: r'i" < <~ln. pt;:::. ~ho 8 a

cF: 1'. i.:i< sv t [8 c<'~ '~ F ch)ag dis 7atcher

sai..~ to V~ vcfzv 'CQL~

3--- t'ouncil i"t: . ~ o~4 s. re-iresent~tive of~.-..L'.b .~-..~ Ui llesp'=, ":..:lneezs of ~acr:~onvi'.'.8,

t'ei .>: ini< ~ cl'ii re'.~-'n the ~~war ~L~iih t. ao

acti n i"as ta.'ien. 't ~" .' be Discussed ap.ann on

'L'uo3d «g ) 4 i'eb

--- ~sty tii<~n.g~r -:".-. 81ectrtc departr~ent pays

t,er yenr o expenses, vrhic" ~outed

!1~-.v to „8 boa< en:1".''y:iy =t?;..r d nartn;en+s Ef

: '. i'. t, f ~ do~A. t.:..!. '. '«%as s<. ~ ' ~ ".. LS inc l.udes QI18

ha' o". 1 bH 8 xÃect8 .lan'f 0 4?lese

i ~~

— D238—

"TAe University Cia"

i r i'~'>

I fltrg f

*:..ear: f~%.

~ O~EICE Op CITY hfAI"hGER

Munic>pal Bnlldmg

P. O. Box 490 July 16, 1968

M . Arvah B. Hopkins, City ManagerCity of TallahasseeFlorida 32303

Dear Arvah:

I know that you have been following the Gainesville vs. Florida Power. Corpora-tion intertie case before the Federal Power Commission with a g eat deal ofinterest. The purpose of this note is to'bring you up-to-date on the last hearingin Washington.

~'hefull Federal Power Commission held an Oral Argument in V'ashington last

Tuesday, July 9, in resporse to a request filed by the Power Corporation. Theattorneys for the City, Florida Power Corporalion, and for the Commission staffwere each given time to review the issues and to answer any questions put to themby members of the Commission. In the afternoon each attorney was granted ashort time for rebuttal.

The large hearing room was filled to capacity, as this case has attracted a, greatdeal of national interest on the part of lawyers, private power representatives,members of A. P. P,A., and from several cities in Florida other than Gainesville.We had a large delegation of City Commissioners, the City Attorney, Bob Roun<'-tree, Newton Ebaugh and me.

As you know, the Examiner had allowed the Power Corporation to inject the retailterritorial service area matter into the case. Our washington attorney, GeorgeSpiegel, cited many cases which seemed to us to exclude this matter from Federaljurisdiction. Nevertheless, a great deal oi time was taken up by the Corporation'sattorney in discussing this aspect of the proposed interconnection.

After listening to all the arg~~ents and questions, we are optimistic that theCommission will order an intertie at the wholesale level without becoming involvedin the retail territorial dispute. U so, then we have rendered a real service toour many Florida friends in the F.M. U.A. It is our hope that no other cities will

— D239-

I r'

I

/Mr. A.rvah D, Hopkins

rJuly 16, 1968 Page 2

sign retail territorial ag eements until the Federal Power Commission rendersits decision, as this might weaken our position.

The rest of the hearing time was taken up in discussing the terms and con-ditions of the proposed interconnection contract. Our position on this has beenpractically the same as that recommended by the Federal Power Commissionstaff, therefore we feel confident that the terms willbe reasonable.

7/'e moved into our new City Hall last week, and I would like to invite you to visitus when you can.

AVith best personal regards, I am

Sincerely,Fjg /.,', P '.r

P/

ohn R. KellyActing City Man" ger

JRK:j sr

P.S. - I am sure that you saw the recent press notice (July 9) that the JusticeDepartment has filed an anti-Crust suit against Florida PowerCorporation and Tampa Electric Company. The allegation is basedon the fact that since 1960 these hvo companies nave been acting torestrain competition by dividing the territories they serve at whole-sale. Much of tne material (contracts, etc. ) came from our case,so again I feel that we have rendered a service to our fellow cities.Ifyou would care to have a copy of this Complaint I would be happyto forward one to you. - J, R. K.

- D240—

~ ~

~ ~

9a ~~ma. C~i

c~ Roc W Czvelc~n~ $ n C=eC9 .ve ReIa+'.~P~crt W ~.~~i

Ernie

"R . 4 GRANI~ $Q .~eM~,I

10'fWw

~ ~

~ ~

~ ~ ~ ~ ~ ~'

~ t 1w4eCa .A

~1~1+'+a ~

~ 0 ~ ~

~ o~~ 0 ~ ~ 0

~ ~~~i>~ ~ ~ & '0 ~~ f~ 71'o'm4~

~ 4I4ea4~ 1~~

rA~~"~ eo

~ ~

~ oo4 1mo~llJe

~ ~.f~ oM~A~i~gg o

~ ~ «~~Ae ~aemaaeS

~ om— D241-

~~I

~ ~ ~

~ 0

~ ~

~ ~

~d., N11 Ceah.+

Mda~fon of )cd n sN~~ & ~m~ra fon y1 arWnqf~ 'cftopcNcc p1~ cg )v5 «NCQ», ~»Camjany hcuadaH es, .

'Ram.Hl~ (nc1ude a,i~a1 ana1yshs. ~he~'each.utlli y is ass~ M cm an ind5<dva1

g„ in ~~ ~j „~jch j$ Joan 1v y3~+.m~u~ Caoe an~ ~m p~~5ng.Paah1<: ~yeainq ol'S~ t.olde W»-~ a» p~c~ig

0

SCKf~a~14 d84~Mr441on C bC~ 4 gM~~»in( Q'»»1

Sp~1's c1i.e~ somnus:9z a o~ ~ cn~ ~" Hvc Ash..

0

Fz1ly in@a A "„ver yea.1.

- Cantm1'4spatA~ng.'L~s1a 'm auNeHza ~on o, mnicfpa1, fn~rc".nq.

~r O ~t 5' ~ad%'OCR PM~OC lOT'~lr"S~~»~'<1i

dies.,

~ ~

~ ~

0

« ~ ~

~ ~

~ ~

0

~ r~4 ~ l

~ «r ~ 0~ ~

~ 0»»

~ 0«

» ~ 4 4 «'lac, learn

~ ~

~ ~~ ~ Q ~ 0 0»rr«0

~ ~ ~ q~

~«

~«

~ ~

) ~

~ ~

0 ~' 40 I '

C<0;~0«

~ ~ ~ ~

~ ~1$

~ «lb' ~

«g 0

4,

y ~

~ ~ ~

2l~~~0

4 ~

~»— D242—

%40 ~ ~0

~ ~ ~

Pcd'Q5x.i aQi 1

0

PRCNS~iiN 2

BtCPCSTi>N 3

P%3P&a> QH 4

. LixCf

Qevelc~& in our'? Ia.i~i~i~ ~W. 04K uphill ~i@5 ~ui? v'iiLi Ao 'fTpA cue

'using'd5,i'e? ~ ly ~ Me aliN~aaali'll ci i fci41 N'j o

'

~he aÃ.icosi ~ay e. looking at rbusiness fz a single, dghtly intz~t 8hus9aees se~nq end-use aa ~?s,.if~s&. s sew?., M- or ~R~Ha~4 ~cui ~Km: .h&~a?,

leg cxÃ+iA5 i~Q cf cuT buss fK ~o Ysls ~leK".)sic c. ~~ yrin~pal busirmses:a hulk pacer husin~ ancf an el ~cseptic, ~ines'. The Wo hwineucsac~lly cps ~i ".in t~e- f?~~rk r.'a %fry- ac .m y, vf . an (noes~.husf n~.Thief a? i~? ~~'i s ) 8? ~ hC~M~e ~o businesses. <n e a ~w o.- Ne'ay ~a~ a? ~a~:

~ OT panic ~ f CC»., financing.- markctfnq/m~".. t Ta Jm.- pWIic a-'$ ?s..

Mhi3e Her a? iso?~c C,,ar n~heNe v .e business, .e. a? also't&Ico~I dt gene'c.'es ~nich ~. heuncovers "c<

I ~ ~ ~

~e

~ ~ ~ ~

~ ~ 'I 4)

~ %

~ ~

KNiKPALS ND ~~~~ia PZ

Oti O' eQ

'ca smll ~ hcBRchally aQ ~c~"a,l genera~~ ~ Rely ca cia anct gas far- fuel.

' Fuel ~M. rigfrq eely $ n 3~. ~ Mage ra~, lacer.; exert ran. Fmferal wniaza ~age.

cp~cnally exempt fern Scc'al Se~m ~.~ S.im lim~ a~a N ~~r se~cz ef Ccfenc.-.es

af o~ by larp. uNliees uinq av~'H sys~.~ Canna scppa.. plann$ nq, prgec . p c'r zen., nubble .

O~in1 ZR

~ Ho ta" ohliga~icns bu,.canicipals c=ntHbu~ a cf +gcpcwi cn

i Law. ca.: f5'nanking.

pr.~r l liefui'cns cn f"nave'.ng (~ic!jalap).i. Salina leer hacae. 'maaqaae adam (m ~ic pals).~ . | "-Ops'have ~mice . fTnanc ~, le~w.. aar~q~C rm.. uc 'cm.

'l

me oo~ ~ ~ '

~

~ W — D244—

( ~

pew:zw (3g

Qi~L iV ~ÃQZC'QC~c'$ Qg ~~

~ \ ~

HZOX ZSX~ ~ CCS

+4i~omq-

~ ~~ ~

~ J

v>QL co a L'e- QQ s . )

VhOL444LC ~ CQI ~ ): ~ ~~~~ ~ ~ ~

~ 4 "A

~ rr ~M+ ~a

~ r

~ I~ ~Qrr

o ~ e

«» ~ ~~ r Ilgwu

r ~~ rr'

~ ~ - D245— ~ le

~ 4

&~~4.ranee

h~~~'F4414 0%c

4~~ga&5 Ag~g~4~

~ ~

~ ~

~0 ~

~%Mfa'

D246—

~ ~ II

Nai'QQITTWS A% 6RCeTA RA~i-

~espy

~ ~

~ ~

12;CCQ m12,48l1247913 498

14 KB14,RQ

1Z,QQQ m12~840

1 Kyle14,701

'8,7X1o,~i

98Z

1Q]9

1101

~ ~

~ %

~~

~ ~~ ~

~~~ I

~ 4 \

~ ~

~ ~

o» ~

~ ~ l~ ~

~ %7

~ ~g e

~O

~r— D247—

l4w7 ~

R '8 7/32/7a

Finn 1

Sfnn'le'U<1' e Addt innS'v Slav

'lat 2

Sha~ M&dcnS'v SAw

'2,CCQ

72,RQ

EZ,QCQ.

.13,~14,CCQ

6CY7.2 Y

8.4.'4

RQ/

Cgf

cQQ

7'2. Y

7.3 "

8.4'

9.Q. Y

~4

~Ms .'nq Plan., SRQ/h.

mcmrent M<Ncm, 1,2K ~ uni™- 9 Si,~~/W.

%0~ ~ ~ ~

— D248—

~ ~~ ~ ~ ~

~ ~

RCPT ~ iiCN

~~f%,cr".e hfghats.

m~n) .

a sa ~ fez e'.rsf'lpRcf»( Cxpknsicn )5

h~~e 1~»' » ~»)hNat ~'3 peak'ead ~tha~pMh$ e less o. lead risk

PsT c4»q, » Ie 4$i KAIQcL1aN e~ year t"e lar,es (uA,85CMi4, Ci. Cctg&Ci »( AC

mA iuff5c5en .earn N p~~m(f we~ g lc~» p~&Iblc ~8. Yc

Ainu'L1 lect f.".7 asks si Qli he'<ps +zan'n' 'RT1cs» pcs'fh10gea~phfes3 ar . unt'.1 "~e cyt~ annual mirac!.y addftfcm. az ~el ~lar,es gene<A~ vm5 mm&aliy avafiab1e and pr re (lZCQ m nuclear;SCC-1QCQ; c a1; 2SQ-;CQ ~In'-cycle).

'

~ ~

~ ~

+ ~ ~ ~

I l>~040'Ao~~ 'I %gggf ow

".S~~~ ~

— D249—

4+ ~~ 0

I~M~, ~ ~

AD%7%~a~

~~WI~ ~

~%

lWC I'g 4eW"- (gi 7) p,~a:Th hy iss-e "r fn- . w iii~g r la cns is ~i:a: Bn" c fns-.'-:ic."

ar..—.~e'a~

w<ii ~~a'1 ". Ne pI. se o. ag"„-. <a.inc Ne ge-"-~cni >1 1'~~.

FA~~H'i~ 2309/ g

~ ~

1. r~r. ~a~, s~t~. The loads M Din ~e i~ sys~ az su~,ic enmypcr.. Ne oy '~ annual ca~ y acfC ..an.

"P~l~ a. r~ st~ any not ~m ' ~lies geaqmphCc ar»'fn which ioach are appal.qz~.

h. Red'an in peak ioacf. ~th ~ ~.e 4arasary 'f978fc~~ vfii unde~ne ~~ l~c of our s~

If~ ~

2. The meici pais~-opia .v'e'at~~ Shauld have sN~K'enera~~plannfnq,.ml ..pie-uni soaring, ancf f'ull ~rdina..cn.

Pelleas W my na~ he able w ~eM fi mnicipals ancf c"myel&~'vmcan gain a~s M generation fnvw~W m 4 hwfr le~aczpÃ&1.. Municipals p~ently having inc isn ~9 0 ~~4 WT1hc ~raqecf. ~ gc ~lie.

3.'ergerr, ~r~ ~id mage ~i% i'd& and re tc provide.ay~a, loa& ~highld aqafn suggest. ".e fsola<icn, s a~~..Pmhiaa - They .-wy na ~ant, ta.- and ~ha's.qafng M end up ay cfa~?'

4.. r~ s ~de hulk p~! r<t,'ply business: .=4 ~auld plan si desi~, lic ~se,~inane, hui'1d and c-,em~~ lar,"e generating planw: aM ~i. nsmssian ifnec, andsell huis. ~e. all oMer uwifcafes.unc!er- M-~ear Nk» cr'ay. p paid«an

.FWleas -- Ve mid- have ~ sell Ne c"-~4 and m mid. have ali Ne.. financing p-.hl en'.

r~r Service Ca.. FR. ~id. plari si'~', design, lic nse', huiid, and ci era» ~".esC~~» hula „en.r sys~w unrig funds canNihuCH by all utilities. PcNer soldcn basis o. ci".era Snab ~w. Fri r c fves a ~ e fc." mnagecen s mi~.

~ . Pr blam . r~ e~ives as a, serric c—cony bu no as an fnves~ . c=many.

6. Qai: A serif N c"al ~id.elfmna~a ~We Nomic Bere Ac u a r ~muricipals'nves~n . fn, generation. Lt any also pe~. us ";at''anzl fsmlie uni'i~ mr nearly equal t" annual .load fn~zntz..

Pr&lees Air qua1f+ 1am, c=zl supply, ".e'McL=H1 my eventually" ': t~ufr ~M s~. hfnq as t.w A~~c:-.m~'

7. Palf ica1.A aC: 'e m attic" .e ius Qic" give ciOncipals ancf c=-aye~ 'v sina'ncinq an't ~ advanwqm, <".us ~in'ceCition.~~~@1.'r:biens; - Ww laws are sac. d. c"m and ~'t give=c-..'e~~iiy.

c. Facie'aci™ 1: A hyt:r d fnstiwtion ~ne~Ay ea"'". u~.'I~j auld ~-;rance hissi'ar, 'cr >.'ulR- r—~" sucyiy but " 55nancinq casu ~cul~be wcl& ardu~iif/'uld M ivy proem 't ~el sM caes~e

.P —.he~ - Cr ~t,cr us;.-nat sa past,ar ~. ' don'.".c~ hcN z do i:.ea

~ ~

9. Fewer Au,crf J' A sz ~sane:oned fnsti ~ticn ~i ~~ 'act»ss .a,inancial mr'- ==lg'.on -'te bas",'s a- s~= c'ar n- m andjcr ax~-.'an -~-"a:.'cn. ine au -."

~ ..'~" id.soli =-.a11 ra~ lie.. a- ".e sa, bulk „"c~er as=-="-

':-: "<t.him - 9i.e ."" c. r.-i reer<=-'"a h offness..: ~~~=.~ I''

~4 ~

\

— D250—~%A~ ~eM '

lhYCS MW

Q$ 'Q g wgCRCi W i

F MC5.mar .,

Lilsz~ ~

$z peal pcs FPtSuaalh es

~ ~

5~v

~l+tM

~ ~

g ~

~ ~ ~

Ca ~eM ~

4 e ~

~MPtfM 74&)

~ ~

Two-8~$ ae5sMedal

Inves<n.: .. Capi& Pu.&w',

~ Ta<m ~~ ~

t= F'i.7m'aai

w7PM'hai

wFMdg

Sepal i en.Qy lave~~

I "sNC"sO

Suca lieseel ~

Bul k. Se~ mTrw~~r Suoal fmMPY3~ f

~~~» ~

g*> fRe'AMER».

~ lf ~

RQ'IcNR. S eel

"c a8-UsaCQ$ i~MR8543 e~ ~r

See ric;a~ '"r r: ~ ~

Sw~)a'ys~

~ eCe

.«l ~- D251

. o J+

~ ~

~. 3utk Pace'v Suf;sty Q~c Se~m

QTPN DviCC

rhwnc41R854QT ~ IHCRt

t ~1.K~ccLC

(H~a~)&ies.Se~c .Sys ~.. (r~1 e)

RCM~ ~'PM~» ~

Su~~FRC~W'

~ ~

Pl awry ng - Lang Late.Pra~W C"n~Capi~t Sudp+ «et ~u<='-

'lant,7rane~ss'cn Reiiahil< j.~raw Far.+asRat <ahte'at.K ~mat Financing.

Plan and Cut~t

Cagiest

Spending.

PTann~ng - Shor. Range.Pct ioT .~M. i.OMAN? &nC~pi~i «t ~

Opera i-:nq Bud~t.

Ofs fbu ice.Pwtfahil) g, Resurge icrScoria, ha~ a~en.

: Kf icienC hanC in', harp!. eat ~-~nsa~cns.

R. n8N Ag/CQS ~~r.Re LcLiicM

Fm ~~rsitic.i.iw ifcps ~ .

Rat".aW.'cwera~i hich metic~, tt'.C,CM br..

HREFfAcbeW5slnq, sat es.Fran&ises, uHP ~or a tow vat~m, = b~.

1nanci H. Factors

Vuhhc A. a<~

~ ~

Hi~ mpi~~t. Qectirrinq ~1Leap teed Ni'm,. e ~es.o, .

hi~ vis" 'moteFi~ &arges p~t Sf'?a~~

rrC ~taVcnF&ent, Sta~ 'cf3iif r p~faNan.~~ issues: in~~~

P cpleOQ~~~

H$ @ cyera inc m, ter cachet,Tnt mat,unkng. (7).

Glor. Ickct'-:%g tel l-is~.f. ~et ar rising, ~1 e~n~es o.~te.Cperlifing C5 i p&d~tf~a. 8

I

P'SC repltadicn.t ccxt Ac.)1 i''P.chat'. baak issues: p g~ cr,'en" ".

Fv~

e ev~ '

~++meme

'+~~ ~ ~

~ ~~tO ~

~ ~

, ~ fV'0 )~7 ~

— D2S2-

» Q~ ~Ca~ C»» ~l~ » ~1 g ey~~~ c

L'Ps 7/ ~i"Raw. 8,WiC: Q

C<7=+rp /34g~>X ~

~ ~~ qaCx~~~~~ ™~gJ

QQQg~g

~ ie

~ ~

~ '

~ ~

I~

~ e

~ ~ ~

ee

~ e=aaa'V ~ ~o +~ ~ eve+a o~ ea '=- a e~—4 ~~ ~~-T 4~~ (~~ ~C ~ C= m~~ ~~)

~ ~

~ ~hexa . 4 TPC ave~ may mac.~~ ~~ aeaL' qeC~ph'- 4~Wda 4m aq.mga~,

h ~~ ~~ ~.~ ~ '~, ~~ ~76~cd +'LE ~ ~ ~ c

f~~~~ 5~~> SIC~ ha~ S~~~ ee~J~caa 4 w @~Ma,q 4tll Mf + ~eee~gj ce

2-.M~ ~ ~ ~ ~ he ah'~ ~ ~~'Qt~ 4C ~5 M /~em X~

cd ~ 2!4~ ~ ~Dec 'f AY ~$ ~~ac 8 ~M cccac~ge6 m qa «~U-~ ~ ~ ~ «~~ <S~~~ ~~ ~~™

~~~'q~5~~ e meLa~ ~~~~" ~ ~ vazg» M. aa6 vho"0 ~q M ~ ~ p ~

~ e, ~5~M. 4 ~~~M~. g~l «~ ~ » ~%at~

~ ~~

~

7 w, SM~ CO hC gVCJ. 5~ 7 hCXMRSC cK (C 4 $0~~ ~A~S Ow '«~~qCaa'w 3'erne ~es M, a4 cpew~. 'w~

«~™ «CC~ a 4»a» C~@3g~~' c pe ~~~4 ~~~ ~~

~ ~~ ~

~ ~

~ 7 M- ~ VC M' 4V%'- N $4U M C LCt~~ 4 VO ~4 +&V% 4

T ~ S4 +M'!~ 'c~. ~4 g~XJ y 5 N+ ICE»P'+ «~~%i M~~c 4!A CPCWMgNW hCQ ~e mac m'-q W ~MWM~ 1" e-'' et VWC- 5aM. m

C OC4 5 g ~ ~» %~~ 1 4A ~$~ 54~ ~5M»V@5 t5 4 5C P~CL ~4+ ICE, ~~~ 44 4»

C P4~ ~ ~ ~

Coal: I a"'m ~ vcalk e~™-'- m w~a A~c ™~~Ic- ea a ~~~MO ~ ~% 5 2 ~ A@4 4 & ~ a&~ET4

~ ~ ~

~ « ~ra ~ A'- ~4''~ ~ ~ 5='y.-. e ~ 3'" ~ ~~Ca' ~

~~ W ~m 5~ ~'"q aa. m A~W ~~"AC- .

At&~ +4 CLZL 4~~~tC 6S ~t ~h~~'- ~~ 4H ~- a4VaaeaqeS,'ajar'=uk"-q C~a~, mW'-'~a'

~'~C 4~ 5'C6 ~ ~ ~ ~ $~/4 ~ C44~7e

aha 'e'ec"'~"'y scald ~ca ~~ e'-o~a e~eac ~ ~ eccl e bc ~IM eM eac"

VOC Ca ~ ~~VC «a MCk 4C ~C~ ~7~~

C

~ ~ 4 ~~~ ~ 5M 5 5~Q~~ 4 @45C ' 4 ~~ ~ 5~ ~ ~4

~ ~ e q ~ we%ac ~~~I eaoccc

C'+ W qe C a +m~ 'm Cawet' ~am~7 .

~ ca \h

APROPOSALFOR A NEN CHARTER FOR THE

SENXOR MANAGEi~iENT PLANNING COUNCXL

Membership '. The Chairman of the BoardE

The President and Chief Executive OfficerThe Executive Vice PresidentsThe Senior Vice Presidents

Secretary andStaff Assistance: Vice President-Strategic Planning

Meeting Times: Every other Friday, 9:00 a.m.

Task: — To develop 10 to 20 major problem areas ofstrategic importance.

1

— To assign management responsibility. or sponsor-ship for each of the problem areas.

— To develop programs for managing each of theproblem areas.

— To allocate resources for carrying out theprograms.

— To receive status report:s and review theprogress of .the programs.

— To revise the- list of problem areas andprograms by additions, deletions, and reassign-

I

ment. of priority.es.

p bl E~— has a major impact on the Company's future

~ . development.— wiX1 need the coordinat:ed efforts of several

organizationally separate groups.— has technical, economic, and legal-pol>t>cal

aspects.— must be managed from 'a total Company rather

than a departmental point of view.

(See the attached list of proposed major problem areas.)

— D254—

n pro ram is a statement of— Company objectives.— program goals.— responsibilities, by departments.— schedules.— costs, by departments.-'ommunications.— studies and information needed.— action plans to. be developed.

{Two pages ought to .suffice.)

Objectives of the Senior Management Planning Council:— To bring a total ~Comtian point of view to bear

in managing majo.r problems.— To insure coordinated effort in managing major

problems.—.To insure a complete effort in managing major

problems.- To allocate funds and people to major problems

-in an amount commensurate with the relativeimportance of the problem to the Company'sfuture.

— To insure that all major problems and programsreceive consideration.

— To increase organizational and, individualeffectiveness by.

creating a regular way for all problemsand programs to receive consideration.setting up a regular way fo'r communicationsto move up, down, and sideways on importantproblems.

* defining and communicating objectives,goals, responsibilities, and schedules forgetting coordinated efforts on majorCompany problems.

- D255—

A PROPOSED LIST, OF MAJOR PROBLEM AREAS

Forecasting

Economy — U. S. and FloridaCustomers and SalesDemand

Fuel and Other CostsFinancial

2. Management System Development

Management and Personnel resourcesOrganizationManagement Practices

PlanningReportingBudgetingControlling

3. Competition — The Florida Electric System

RHAs

MunicipalitiesPrivate UtilitiesOther Energy Sources

Regulation

Interchanges, Rates

Joint ProjectsFranchises

4 Fuel Supply Development

OilCoalGas

Uranj.umProcessed Fuel

5. System Expansion and Operation

Project ManagementGenerationNew Generation TechnologySitesTransmissionSystem Operation

— D256—

b.

pp ) p Qo

8."

Operating and Capital Cost'eductionLoad Factor Improvement

System Reli abi lityMeasurementReportingCosts

9. Delivering Customer ServiceOfficesService CentersTroubleNew BusinessCommunicationsBilling, Accounting,. CollectingCommunity .Relations

10. Other Ventures

11. Major Contingencies

- D257—

1'. P RO1'0 S ALFOR A .1r;:1 C>*.ARTER FOR T!!E

SENXOR 14AVAGEHE?PT PLAN."1X?1G COU!:CEL

Hembership: The Chairman of the BoardThe President and Chic Fx cutive OfficerThe Executive Vice Presidents

~ The Senior Vice Presidents

Secreta y andStaff Assistance: Vice President-Strategic Planning

,Meeting Times: Every other Friday, 9:GO a.m.

Task: To develop 10. to 20 major strategy areas.To assign managing res-ons'b'lities or'sponsorship for each of +~e strategy areas.'To define tasks and res oi.sibilitv areasfor executing 'the stra+~~'es.

: To allocate resources =..-- he execu ion of. the strategies.

To receive status reoo~s and reviewprogress in the execution o the strategiesat least annually and p=eferably bi-annually.To revise the list, of s rategies by additions,deletions, and reassign=.ent of p=iori ies.

The Objective: To permit the managemen" to systematicallyand comprehensively ex~ne, di-act, a . fundthose activities which thev have determinedare necessary to insure the continued and.desired future development of the Company.To provide the line'nd' aff organizationswith direc ion and guidance for the cond ctof their management activit'es.

— D258—

~ryyp+~'~ 7

*

'~~, L)v~I. P

L ~ ~ aS

FI.ORIOA POWER 5 UGIIT COMPANY

February 24, 19.78

J

Hr Hans LeimgruberSiemens AG -. E33D-S520 Erlangen. 2Nest Germany

Dear Hans:

It was a pleasu-a meeting you in Erlangen. I regret thatour. follow-through with the required information for theGreen, Yeadow project is so.time-.consuming. I understand.our eng'neers d'd have an opportunity to speak with youvia telephone 'following my return.

Apparen y, information is required by both parties, i.e.gSiemens and Flo 'da. Power & Light. Tt would of course bebetter to be-abl to discuss these requirements in personiand pe haps afte= a preliminarv exchange of informationa vis'ta io. will be possible. In the meantim, I wouldapprec'a'e you= reviewing the enclosed letters, both datedFebruary 23rd, and furnishing to me as much information asis available at this time. 'nd, of'course, in your replypleas add add''on 1 information which you deem importantt we may have overlooked and also ask any questions.

Ne are looking forward to your early response and we area 1 indeed excited to be associated with Siemens in thisventure.

Sincerely,

H. ZleinVice President

NHK/1j. cc: Dr. Lothar Speidel

bcc: C. E. Richards

> P'r w,',

o gn <~Ipv~,(~ ~pN

jif Q

HEI PING BUII.Q FI OR IOA

TEQUEST TO ATTENO

FORM 1890 RKV. 7/76.OCAT ION

General Office

EMPI OYKE'5 NAMK

. Nilliam H. KleinNAMEOF ORGANIZATION

Siemens Cor oration

OEPT

conomic Dev

'UAPOSK

industrial exaansion - see attached letter.

iilKSI EXPENSES

TRANSPORTATION

HOTEL C MEALS

TUITION

MISCKLLANKOU5

TOTAL

I ACK OF MKKTINCr

I'. lan@en, Nest GermanOATKIEAVK

10 14 79ESTIMATKO

$ 875.00350.00

100. 00

$ 1325.00

OATE RETURN

10 15 79ACTUAL

KCOMMKNOKQ APPROV KO AUTHORIZED

19

gn

19

-D260-

0 0 ~ 0 0

~ ~ 0

g y ~

~ 0 I ~

I 0 e

I I II~ I

0 0 0

P4

~ 0

/RA&IF1 R l(

fLOAIOA f'QW(A rR LIGSII Ca.'ASFANY

INTER-OFFICE COARCSI'ONOENCE

F ROM

W.hA. Klein

G. E; Richards

LocATIQN WDO Sofa otaOATK ' December 16, 1977

copies To

5VOJ ACTS

Al Pufnam called to let us know that Mr. Dick Turner, President

,of the Manatee County Chamber of Commerce, stated at the C of C

coffee Thursday morning, December 15th, .'hat the reason the

German firm chose this location was a result of the efforts ofFlorida Power 8 Light Company and in particular, 8ill Klein.

CONG RATU LAT l ON S.

. CER:dks

-E)zing„

COURTESY RINS FRIBNDS ...fOI'LORIOA-.FOR TOUR COURANT...fOR TOUIFollhl laaa ArV.:ll4

P.O. BOX 529100, MIAMI,FI. 33162

~yf Ilg>

".I

FI.ORIOA POWER 4 I.IQHT COMPANY

June 11, 1979

r

Ms. Pamela Lynn Farmer107-C Bolinwood Apts.500 Umstead DriveChapel Hill, NC 27514

Dear Ns. Farmer:

Ãe are please o ead t 1 am of your interest. in economic develop-r 6ment; and t:he programs werams we have for such at tha *Flor3.da Power

Light Company.

1 to our questions, we do actively'ol'icit new industryd th'ffort is hanci1ed by the Economicfor our service area an 3.s e o

h'Development Depar ent D artment.: This is a. very smaI3. department wh3.ct. d 1 on the efforts of othe+'epartments 3.n the

~ ~ ~ ~

Company and'in. particular our Division and Dist@3.ct Off3.ceN 1 o work closely with the PIorida State Depart-

ment of Commerce and the local county and m.Cy governments. In1 h ve cooperative efforts wi.th 'professional and

civic organ3.za 'onstions that also pursue economic developmentactivit:ies.

k

Xn addition':to answering inquiries which axe directed to ourCompany, we a soiso help the state and 1'ocal agancies answerinqu3.r3.es w 3.c arh h are directed to them. 'All the var3.ous state

~ 'nd local governmental agencies and professional organ3.zationswork in close harmony in providing prospects with informationwhich they require to make decisions about locating new plantsin Florida or expanding existing ones. In addition to seeingeach other quite frequently at schedul'ed meetings, we alsoremain in close communication by telephone

come down this way for any reason, please st:opin and see us. Thank you for your interestSincerely,

~PPrV(V~=->gPaul P. NcGavinEconomic Development

PPM:lj

-DZ63-107 ( Bn1 c.n

~l ~ ~

(igi

Dear Sir or Madam:

June 4,1929

X am a student at the University af North Cazolina at Chapel Hill

warking with the United States Depaxtment of Commezce in their summex"

Southern Economic Development Intern Program. I wxote you this

past spring requesting infoxmation on your utility; and the.vazious

progx'ams you sponsor to encourage usefu3. economic gzowth in youx

service area.

You kindly sent me youx'977 Financial and Statistical Report

( a supplement to youx 1977 Annual Report). A statement in, this

zeport caught my attention - " The manufacturing sector provided

15Z of the'ew employment opportunities in Plorida due to a combination

of new business moving into the 'State and the e~nsion of emsting

facilities. The State's natura3. endowments axe complemented by

the economic development efforts of state ax@ local. officials and

by px'ivate companies such as Plarida Power and LKght."

X would greatly appx'eciate your sending me &xrzhez information

~ on the development efforts of your company. Do peu active3y

solicit new industry fox your service area? Do peu have a formal

industrial recruitmentldevelopment department, ox some other

branch that handles such work? Zn what ways do you work with the

state and loca3. officia3.s in youz sexvice axea?

Thank-you far yaux cooperation. 3: anxiously await your

reply.

-D264-

Respectfully,

I ~i ~„K> Lt()><i F'"i ih< i

~cia Lynn Farmer1'07 C RA) I <nnrl h «. <

FEDERAL POWER G OMMISSlON —4964 PART lK-.-u

~ - ~ .

~ ~~ l ~ ~)

~ ~

C

!,c

W~)"

v

'-';-,-'g:,'f) gI)kg

)r~'i )

~ ~ ' ~ ~ ~ ' ~ ll ')+ ftt)~ '

r')r'S c!' ~ . ~ ' I

g)r

lg,g. '

~ ~ ' '')J l ~ ' ' ' 'QO

I

'I

QIQ r.tgt ')~ '

~ '

0 ~ ~

c<%) I

.I"-i. '~ SI

'I

)) ~ + ~ ~: ~ ~ l ~ ~ ' l,a)F ~ ~ ' ~ 0 ~:! rQ gee

~ ) Q ~ -; eI rffCt

'0

p

) I: ~ '0 '

C ~ I ~ ~ ~ 'Iy'

~ I !l44<+ + l

r. '

- - ". ~ ~ - + >her ~ ~~P~t)g-'. '?''-4,'L).' '

*

)

~ ' ~) I)i@~<

Gt

@cd '

.0 +~~~~~g)J

D3(R

systems in a broad area are intertied with a largecapacity transmission system there are further bene-fits in selecting the optimum plant types and loca-tions, cheapest fuel sources and lowest fuel trans-portation costs, and most economical plant designand construction. Local limitations on fuel sources,water supplies and air pollution, any of which mayinvolve economic penalties, become less controlling.

Coordination at All Levels

The need for effective intersystem coordination isnot limited to the major utilitysystems of the coun-try. The smaller systems, especially those nowoperating in virtual. isolation, also have much togain from coordination. Successful coordinationover broad areas of the nation must begin with acoordination in smaller-units. For evample, exten-sive "coordination" comes into being almost auto-matically within large systems under singleownership or managem'ent. The next step in co-ordination is in the formation of "pools" of twoto a dozen or more systems in close proximity withone another, including small municipal systems,cooperatives and local investor-owned systems.

, The combined assets, loads, reserves and bargain-ing power of these pools, enable them to participatewith their contiguous neighbors in a larger networkin order to receive the further benefits that may beafforded by coordination on an expanded scale.

,The achievement of full industry-wide coordina-'ionwill not be achieved automatically. It will

require a spirit of enterprise and cooperation byall concerned and an equitable sharing of respon-sibilities, costs and benefits. The potential roleof small systems in a fully coordinated nationalpower supply receives detailed analysis in chap-ter 16.

Economies from Coordinated PlanningMost of the benefits of full coordination arise

from reduced overall generating capacity require-ments a'nd the lower unit costs achievable in theplanning and construction of new facilities. Whenone considers that the Nation might require morethan 500 million kilowatts of capacity by 1980,every 1 percent capacity saving amounts to a

$500 million saving for the consumers who mustultimately bear the cost. The more importantopportunities for such economic gains are describedbelow.

Load Diversity

The simultaneous peak load of a group of sys-tems is almost always less than the sum of their sep-arate noncoincident peaks, owing to differences intypes of load served, time zone differences, anddiversity resulting from seasonal variations in loads.In 1960, the sum of the individual system peaksfor the contiguous United States was nearly 12 per-cent higher than the national coincident peak.Strong interconnections to permit the sharing ofcapacity to meet the individual peaks results in areduced total capacity p'equirement. These rela-tionships are more fully discussed in chapter 13,which presents estimates of the diversity savings tobe evpected from stronger interconnections.

Reserve Generating Capacity

Reserve generating capacity is needed to pro-vide a margin of protection against two major con-tingencies: breakdowns of generating units andunderestimates in the load forecasts upon whichcapacity phnning had been based. Additional re-serves may also be needed to cover scheduled main-tenance and in some cases, transmission outages.

By sharing reserves through interconnections, a

youp of systems can reduce the combined reservefor unscheduled outages, since it is unlikely thatmaximum outages of units on all systems willoccurat precisely the same times. The pooling of re-serves is based on the same principle as that offeredthrough the pooling oi risks by insurance companies.The use of large, economical units increases the im-portance of reserve pooling because each systemshould have access to a reserve at least as large as

its largest unit.,The analysis presented in chapter 14 suggests

that the 1980 reserve requirement for forced out-ages associated with the large unit sizes which areeconomical with full coordination would be onlyabout 8 percent of the peak with nationwide pool-ing of reserves but with the same units would be 17

percent, or more than twice as great, if reserves are

pooled separately in the 16 Coordination StudyAreas. Iriterconnected systems can also share re-

serve capacity for load forecasting errors by poolingtheir load estimates, since errors in forecasts inde-pendently made by the indivtdual systems may be

partially offsetting. For the Nation as a whole thissaving is estimated to be about three percent of the

170

D310

RECEIVEDt'u<so tgao

i.! .pzG;i z,:,,-z~~qq<~z IN THEUNITED STATES COURT QF APPEALS

FOR THE FIFTH CIRCuIT

No. 80-5259

Florida Power' Light Company,

Petitioner,

Vo

Federal Energy Regulatory Commission,

Respondent.

ON PETITION TO REVIEW ORDERS OF THEFEDERAL ENERGY REGULATORY COMMISSION

BRIEF OF PETITIONERFLORIDA POWER 8h LIGHT COMPANY

Harry A. Poth, Jr.Robert T. Hall, IIIMichael B. EarlyReid 4 Priest40 Wall StreetNew York, New York 10005

%chard M. MerrimanFloyd L. Norton, IVReid 8c Priest1111 19th Street, N.W.Washington, D.C. 20036

July 28, 1980

Attorneys forFlorida Power 8h Light Company

D319

-1 7-

ARGUMENT

I ~ THE COMMISSION EXCEEDED ZTS LAWFUL AUTHORITY BY REQUIRINGFPL TO FILE ITS INDIVIDUALTRANSMISSION SERVICE AGREEMENTSAS A TARIFFS

A. The Commission's Action has the Effect of ExpandingFPL's Obligations to Provide Transmission ServiceBe ond That Voluntaril Assumed b FPL.

As described in the Statement of the Case, there

are substantive legal differences between the transmission

service agreements which FPL has entered into and the tarifffiling ordered by the FERC. FPL's bilateral contractsobligate. the Company to wheel power for a specified buyer

under the terms specified in the contract. The FERC's

orders, however, would require FPL to hold itself out towheel, power for any utility that requests service'n accor-dance with the terms which the Commission has ordered

incorporated into the tariff. Thus, at the very least, FPL

is required to provide transmission service for additionalcustomers which have not requested transmission servicecontracts.

The extent of FPL's voluntarily assumed trans-mission obligation is defined by FPL's transmission serviceagreements. Insofar as these agreements represent a Company

policy on the availability of transmission service, thatpolicy is based on the case-by-case procedure employed by

FPL in offering transmission service. This aspect of

D320

-1 8-

FPL's policy is plainly evident in FPL's transmissionservice filings and was described by Company witness Williamsin testimony submitted in Docket No. ER77-175 (Tr. 141):

Q. Has FPL declined to provide a general wheelingtariff for the purpose of avoiding the use ofits transmission facilities by third partiesor blocking a transaction into which neighbor-ing utilities might otherwise enters

A. As I explained above, it is FPL's policy toseparately assess the impact of, and preparea rate for, each specified proposed transmis-sion service solely to enable it to protectthe integrity of its syst: em and to deviserates which will enable it to recover the fullcosts of providing the specific service. Toattempt to'mpute any other purpose in FPL'smaintenance of this policy would be totallyimproper.

Complementary to Mr.. Williams'tatement, Mr.Bivans'estimony

describes the considerations involved in asses-

sing each specific request for transmission service.Under the Commission's orders, however, the

Company must. abandon its case-by-case approach. instead,FPL would be required to provide transmission service forany utility which qualifies for service under the tariffcriteria ordered by the Commission.

The requirement that'additional customers be served

under a.tariff could impose a burden on FPL and affectservice to its other customers. First, the indeterminate

service obligation associated with a tariff prevents FPL

D321

-1 9-

from planning its transmission system in a realistic fashion.+Moreover, increased use of FPL's transmission facilities as

the result of a tariff could impair the reliability ofservice.to FPL's other customers, or at least increase the

cost of serving them, due to added facilities or to changes

in operations necessitated by the additional transmission

loads.

FPL's obligations could also be expanded by

changes in those provisions in the tariff which specify the

criteria to be applied in determining the eligibility fors'ervice of prospective buyers and specifying the nature and

extent of the transmission service to be provided under thetariff. Arguably, the Commission could change those provi-sions on the ground that the filed provisions are "unjust,6 The potential burden arising from a transmission tariff

is revealed in the testimony of FERC Staff witnessDr. Taylor in Docket Nos. ER78-19 (Phase IZ), et al.Dr. Taylor urged that a tariff be ordered under which FPLwould be required to provide all types of transmissionservice which might be requested (Tr. 1445) and that FPLshould stand ready to wheel 120 or even 150 percent ofthe peak loads of all the systems that would be eligiblefor service under the tariff (Tr. 1445-1446, 1449).He also testified that FPL should anticipate the typesof transactions which would take place and shouldplan capacity additions to supply those transactions.Facilities should be added even though there was noguarantee that usage under the tariff would be suffi-cient to allow FPL to recover the costs incurred inconstructing additional transmission facilities necessaryto stand ready to meet its tariff service obligation.These uncompensated costs would be borne, not by thebeneficiaries of the tariff, but by FPL's stockholdersor other customers (Tr. 1489).

D322

-20-

unreasonable or unlawful," with the result that FPL could be

required to provide a broader scope of services to a greater

number of potential buyers than the Company had contemplated

when it filed its individual transmission service agreements.

This possibility is suggested in the December 21, 1979

order, which emphasizes that the Commission is not prejudging

the justness and reasonableness" of the criteria that FPL has

applied in deciding whether to enter into transmission

service contracts, and that the Commission has now required

to be embodied in a tariff.ln sum, the Commission's December 21, 1979 order

directing FPL to file a tariff immediately expands FPL's

obligation to provide transmission service and vastlyincreases the Commission's power to expand that obligationfurther.

B. The Commission's Orders Requiring a Transmission .

Tariff Exceed its Statutory Authority Under theFederal Power Act.

As explained above, the effect of the Commission's

order requiring tne filing of a transmission tariff is to

extend FPL's obligation to provide transmission service

beyond that which it has voluntarily undertaken. Such an

order far exceeds the Commission's limited authority to

order FPL or any other electric utility to wheel.

D323

-21-

It is well-established that the Commission, priorto the Public Utility Regulatory Policies Act of 1978 (PURPA),

had no authority under the Federal Power Act to order a

utility to provide wheeling services. In Cit of Paris,

~Kentuck v. Kentuck Utilities Cn., 41 P.P.C. 45, 48 (1969),

the Commission recognized the absence of this authority:The Commission, as part of its condi-tioning power in issuing licenses underPart I of the Federal Power Act, caninsert "wheeling" conditions. Undoubtedly,an argument can be made that it would beequally good policy for this Commissionto have this authority under Part II ofthe Act.... Our reading of the legislativehistory, and of the Idaho Power cases[Idaho Power Co. v. FPC, 189 F.2d 665(1951), rev'd, 33'4 U.S. (7 (1952) ]precludes cur reaching the decisicn 1:hat.Congress has so provided.

The legislative history on which the Commission

relied manifests Congress'ecision that the Act should not

impose on jurisdictional utilities an obligation to provide

service or transmit energy. The original Wheeler-Rayburn

bill (companion bills S. 1725 and H.R. 5423, 74th Cong., 1st

Sess.) would have imposed such an obligation.~ At hearings7/

7 Section 202 of the Wheeler-Rayburn bill stated:'"Sec. 202. (a) It shall be the duty of every publicutility to furnish energy to, exchange energy with, andtransmit energy for any person upon reasonable requesttherefore: and to furnish and maintain such services and

(footnote continued on next page)

D324

i~, ~

Ir

iI

TIIE WALL5TREETTOURNAL TVESOAY,VAR(CBssrtere I' ' I

I~ I ~ )

I,rrl'e

r

.i i

Weaffirm oursupportofnuclearenergy: .".,'" " ' '*;"„-as an essential and desirable source ofefectric. -' »

power. As responsible utilities, we must ':, provide electrical e'nergy when and where it

is.'~

required, yetourabilityto do this is threatened'' .'

.I: by widespread misconception about the role.

For the rest ofthis century, we do notforese the luxuryofchoice in meeting new,e~ectricenergydemands. Basicaiiywe will ~

I™—" ' ="~ ~ „ i

frave coal and we wjilhave uranium, in,.t addition to which wemust have a dedicatedr'.

effort

at�energyconservatio.

l -;- s ThepubiicdebateovertheuseofntjciN~~ ""« -

.5Tl—" "" "-""y:-; r"

r energy forelectrical power production has. obscuredthereasonsfortheremarkable,'. L™"-„~ nmmitment that the American utilityindustry ": -and, inde-d, the utiiityindustry throughout " ', ', "" "",.:l''he world—has made to this technology.

'These are the facts:Americanutiiitieshavealreadyannounced;-

L- plans to install 230 millionkilowatts of nuclear:-.':i . ~f, generating capacity-in amount equal to'.. '.,",.."',,"'.

,nearly half ofall the generating capacity now,:.,','-:.'f

this 230 mi|lionkiiowatts, nuclear.'~'.:..;~";,':."'.:—

; t(itowaasareatreadyticensedtocCerate:The'y:.; I.. ~ „„''.'.,: -;"-: "" ''re producing power for'America reliacbiy,,:.. "-,„:„=

'afely and economically.'ecouldnotsustainour strong commit-"::,.>""."„-.",' ~ ', . ': ' ~ „„.. T'...

'; ment to nuc,ear energy were the facts:;.<."" '".',.',.; otheruise.We remain convinced that the'-.".."':"" ..

; factssupportourjudgment.. ',,:,:~ ",.',„.,.::. -...

\tassss Mwsw rtesrcssesw I Mrs rsseet

i wseama hase SereeeCeeenew ~ . ~

csee(as( S(eesr Cases(I nese( ~ ts asee~ hhe Ia lese heesse

esses sreeee stere(e Cs(seertasse sees( treeeee rss

Edison Electric Institute,>for the eiectnc companiesgg Park A(ran(re, New%rtc KY.XOid

I ( d ~

ir; ~ l

I

L :ID325

(FPC — FLORIDA POWER & LIGHT COMPANY, DOCKET NO E-9574 (PHASEI & ZZ), Monday, June 27, 1977 at Washington, D. C., Volume No.1)

CONTENT S

WITNESSES DIRECT CROSS REDIRECT RECROSS

Joe L. Howard

6PREPARED TESTIMONY OF:

7R. G. Mulholland

68 69

PAGE

38

8

9

10

Joe L. Howard

J. K. Daniel

EXHIBITS

55

62

ZDENTZFXED IN EVIDENCE

FPL-1 - A one-page map of Florida Powerand Light Company, substation'and transmission system

51

FPL-2 - 1976 Annual'Report to Share-holders of Florida, Power andLight Company

18

19

20

21

FPL-3 — One-Page exhibit attached toMr. Daniel'" testimony, entitl-ed "Comparison FPL — Vero BeachRates, April, 1977."

Citizens' - Letter, from Joe L. HowardTo R. G. Mulholland, 2/6/76.

Citizens' - Facts on Accpxisition ofVero Beach Electric System

75

75

.22

Citizens' - Six-page document, upper 132right hand corner JHJ, 8/12/76.

1

23 Citizens''4 — Six pages of data, thefirst page being "Base Case-l,Production and Costing for theyear 1977.

142

D326

cl 201

PRESIDING JUDGE: Off the record a moment.

(Discussion off the record)

PRESIDING JUDCZ: On the record.

BY MR. ROGERS:

Q In light of your most recant testminonythat there

will be some increase in the fuel adjustment charge as a resul

9

10

of the acquisition, some possible increase resulting from

having to put on line new genarat'ng capacity, put it on line

sooner, and in light of the fact that you have stated very

emphatically that no, tha lasv. rati r quest was not

predicated in any way on acquisi ion of Vero Beach, is i12

j 13

not a pretty good conclusion for the Staff to draw that that

acquisition is bound to result ir. high r rates for th presan

customers of FP&L?

15 A No. Shall I explain t¹ reasons?

9 Yas sir. I license to steal..A 7(h'ou start to talk of future generation

18

19

you are looking into th future, because it will not change

our generation expansion plans in the short run. I don'

20

22

23

24

25

believe it will change our base rates, although it willinitially affect our fuel adjustment'..

When we put on additional generation in the future

it will be coal or nuclear. Given the present situation in th

country, to the extent we displace oil out of our generation

mix sooner than otherwi'se I believe i is consistent

D327

202

with the interest of the country,and that the coal

generation may well be cheaper than the present generation.

So in the long run I am not sure it will result in

increases. There may be some back-and-forth. I think the

net effect. will not be negative.

Q When you talked about the result'ng mixof using

nuclear and coal, is there not associated with those add'tiona

generating units a higher incremental capital cost that must

be factored in ?

10 A There probably will be.

Q And that probably will offset any impact tha-

12 mix will have in lowering rates?

14

15

A Zt may or may not.

Q You have not quantified that, ghough?

A No. I have given you:my judgment, not specif'c

numbers.

17 NR. ROGERS: Thank you. That is all.18

'19

PRESIDING JUDGE: Mr. Spiegel, now we have a decis "on to

make, i.e., whether to allow you to go back to your off.'c

20

21

22

23

or allow you a few questions.

i4R. SPIEGEL: Those are my alternatives. How about

giving me both worlds, and. letting me ask a few questions

in the. morning?

24 PRESIDING JUDGE: Zt is about 25 after 5:00. And it is

,'25, „ close to the time everybody wants to leav , I am sure

D328

cg

,J

J'

Jll

Il

I

1

I

t

C

I

\

I

V

,l, tp I'