Reso 2007-1054 - Laserfiche WebLink

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requirements, the lower one pays to convert to underground. Conversely, the lower the true cost of underground versus the cost of overhead the less one has to pay to convert to underground. The MUUC will use the results of the study to argue a greater credit relative to the tariff recently filed by FPL to give a 25% credit to any local government conversion. The implementation of this credit was held in abeyance by the PSC pending further analysis and study. At a minimum, the MUUC will use the results of the study to support FPL in their tariff to provide the 25% credit. FPL provided no documented rationale for the 25% credit in the tariff filing. Being a participant in the MUUC does not require that the city pay a share of the study, future studies, if any, or the cost of PSC hearings representation. However, if in the near future no one joins the MUUC and helps pay for the studies or hearings before the PSC, there will be no studies and the FPL credit could be at risk. Potentially, the 25% credit is an enormous benefit. In Palm Beach, which is 4 square miles with 207,000 linear feet of utility grid the 25% credit results in a savings of over $12 million. In the City of Sunny Isles Beach, with 7.2 miles of road and 76,032 linear feet of potential undergrounding, this would result in a savings of $3.5 million. However, this savings can only be realized if the credit is approved. So, as you can see, the $5,338 we are requesting to help fund the study is inconsequential compared to the savings if the credit is approved. The study was completed on November 6th and will be considered by the PSC on February 13, 2007. MUUC is currently working on raising funds from participants to fund representation before the PSC on the credit issue. Each of the participating cities is being asked to send a representative to the February 13th meeting. At this juncture, the PSC staff appears to be split on the issue so a strong show of support is imperative. It is often helpful if officials know the magnitude of what it costs to go underground. Per estimates provided by the Town of Palm Beach, FPL charges $186.68 per foot to convert to underground, plus a 10% contingency per the applicable tariff. Updated cost estimates from reputable engineering firms have subsequently increased this cost. The proposed credit tariff changes that to $140.01 per foot, plus 10% contingency resulting in $2.574 million savings in the first year's work alone for Town of Palm Beach. The credit and a study to support it or to enhance it is serious money at stake. Upcoming items that MUUC will be working on are: · Updates on activities on underground before the PSC · Developing a primer on underground conversion · Updates from the engineering consultant on his work to date · Preparing form letters to use for mailings The status of the "litigation" is that MUUC and FPL have tentatively agreed on a 25% credit for local government underground projects for storm restoration costs and is negotiating a stipulated settlement for the way in which the other 25% identified in the MUUC Study will be dealt with. The MUUC Power Services underground Credit Study can be accessed at: