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Energy, Communications & Cybersecurity Subcommittee Meeting Packet, February 9, 2023

Summary

Meeting Packet of the Energy, Communications & Cybersecurity Subcommittee of the Florida House of Representatives Commerce Committee for Thursday, February 9, 2023, 9:00 AM to 11:00 AM in Reed Hall. The agenda lists a call to order, roll call, a workshop on Service by Municipal Utilities beyond Municipal Boundaries, closing remarks, and adjournment. The packet then reproduces a Florida Public Power and Florida Municipal Electric Association presentation on municipal electric utility regulation, investments in utilities, and governance structures. It lists JEA (Jacksonville) at 505,000 customers and Moore Haven at 1,093 customers, and states that, as authorized by FPSC, up to 10% can be charged on customers served outside city limits.

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“Energy, Communications & Cybersecurity Subcommittee Meeting Packet, February 9, 2023.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-02-09-3226-energy-communications-cybersecurity-subcommittee-meeti-5027bcd5c4/, SHA-256 f08fdf3c12a736bb3ad85ff57fc99bc923bc46dbf5d383cf784b516fe02a2c9c.

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               Energy, Communications &
              Cybersecurity Subcommittee
                   Thursday, February 9, 2023
                      9:00 AM - 11:00 AM
                      Reed Hall (102 HOB)



                        Meeting Packet




Paul Renner                                     Mike Giallombardo
Speaker                                                     Chair
                     The Florida House of Representatives
                                            Commerce Committee
                    Energy, Communications & Cybersecurity Subcommittee
Paul Renner                                                                                     Mike Giallombardo
Speaker                                                                                                     Chair


                                            Meeting Agenda
                                         Thursday, February 9, 2023
                                           9:00 AM – 11:00 AM
                                           Reed Hall (102 HOB)




  I.    Call to Order

 II.    Roll Call

 III.   Workshop on the following:

        Service by Municipal Utilities beyond Municipal Boundaries

 IV.    Closing Remarks

 V.     Adjournment




                    303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
                                                    (850) 717-4870
                         Florida Public Power
                             Providing reliable, affordable power
                             to more than four million Floridians




Fl.ORIDA PUl!LIC POWER
                                                                    FMC
                                                                    FLORIDA. MUNICIPAL EIJECIRIC ASS'GCIAllilON
     Chattahoochee •
                 Qull'ICY ♦
               • woont&town
                              • Havana
                              • Tl!ll8"88&ee

                                                 G.r ecn CO\'C Spring& •
                                                                          JaoJ<sonvmo
                                                                           •   • Jsckso,wllle
                                                                                   Beach
                                                                                                                   Florida Public Power
                                                                                                                    • 33 municipal electric utilities
                                                                 • Starke
                                                 Al:tctiua •
                                               Newberry • • G.alne&Yllle

                                                Wlll18ton •                                                         • >1.5 million customer meters - ~4 million Floridians
                                                                • Ocala
                                                                                      • Newsmyma                    • 14% of Florida’s population
                                                        Leesou,e • • Mount Dora            Beach

                                                   Bushnell •
                                                                Winter Park •
                                                                            • Orlando                               • Large Utilities
                                                                         • Reedy Creek


                                                     u11te1ane1 •
                                                                 Kissimme,e \ St. Cloud
                                                                                                                         • JEA (Jacksonville): 505,000 customers
                                                                                                                         • OUC (Orlando): 272,000 customers
                                                                      • BattO\\'
                                                                     • i:on Mcatto
                                                                       • Wauchula
                                                                                                                         • Lakeland: 140,000 customers
                                                                                                 • Fon Pierce


                                                                                                                    • Small Utilities
                                                                    Moore Haven •

                                                                                                                         • Moore Haven: 1,093 customers
                                                                           Cl.ewiston •
                                                                                                     • LakeWorth
                                                                                                        Beach

                                                                                                                         • Chattahoochee: 1,121 customers
                                                                                                                         • Williston: 1,462 customers
                                                                                   Homestead •
                                                                                                                    • More than 2,000 public power utilities across the U.S.,
                                                                                                                      serving 49 million people in 49 states and 5
                                                                                                                      territories

RORI DA PUBLIC POWER
                                                                                                                                                        FMC
                                                                                                                                                        FLORIDA MUNICIPAL ELECTRIC ASSOCIATION
I      Municipal Electric Utility Regulation

                 Florida Public Service Commission – Municipal Jurisdiction
     Rate Structure                             System Hardening (reporting) and Resiliency
     Power Plant and Transmission Line Site
                                                Net Metering (reporting)
     Certification
     General Reporting Jurisdiction             Audits (regulatory assessment fee)
                                                Facilities Inspection and Vegetation Management
     Service Territory and Territory Disputes
                                                (reporting)
     Energy Efficiency (reporting)              Renewable Energy (monitoring)
                                                Grid Bill Jurisdiction (generation and
     Ten Year Site Plans
                                                transmission adequacy for emergencies)


    Fl.ORIDA PUl!LIC POWER
                                                                                 FLORIDA. MUNICIPAL EIJECIRIC ASS'GCIAllilON
I      Municipal Electric Utility Regulation

       • Local City Commission or Governing Board
                  • Decisions about utility made locally to best fits needs of local
                    community
                  • Operate in Sunshine – subject to public records and open meetings
                  • Rate regulation
                             • Municipal utilities serve a small geographic area
                             • Local decision making to meet wide variety of needs from local community

       • Many other state and federal agencies (FDEP, FERC, NERC, EPA)

    Fl.ORIDA PUl!LIC POWER
                                                                                              FMC
                                                                                              FLORIDA. MUNICIPAL EIJECIRIC ASS'GCIAllilON
I      Investments in Utility


       • Municipal electric utilities are making substantial investments in their
         utility and infrastructure
       • System investments include undergrounding, self-healing technologies,
         hardened poles, substation upgrades, clean energy, AMI, and more
       • Investments improve reliability, resiliency, storm hardening, customer
         service
                  • Evident by hurricane response
                             • Hurricane Ian – 99% of public power customers had power in 72 hours


    Fl.ORIDA PUl!LIC POWER
                                                                                                     FMC
                                                                                                     FLORIDA. MUNICIPAL EIJECIRIC ASS'GCIAllilON
                                                                                                     • Average rates of municipal utilities
                                                                                                       just $0.52 higher than average rates
Municipal Rates vs. Investor-                                                                          of investor-owned utilities in
                                                                                                       December

Owned Rates                                                                                          • All electric utility rates contain
                                                                                                       customer charge, base rate and fuel
                                                                                                       charge
                                                                                                     • Both municipals and IOUs transfer
                          1,000 kWh Residential Bill Comparison                                        revenue to utility owners
                                                    December 2022
 $170                                                                                                      • Municipal rates include transfer to
                                             $146.87                          $146.35                        local government for shared utility
 $150                                                                                                        services (IT, HR) and to support local
 $130                                                                                                        community
 $110                                                                                                      • Investor-owned rates include
  $90                                                                                                        franchise fee and return to
                                                                                                             shareholders
  $70
  $50                                                                                                •   100% of municipal electric revenues are
                                                                                                         reinvested in the local community, not
                                         ■ Municipal         ■ Investor-Owned                            sent to distant shareholders
                            Source: Florida Municipal Electric Association Monthly Bill Comparison




 Fl.ORIDA PUl!LIC POWER
                                                                                                                            FMC
                                                                                                                            FLORIDA. MUNICIPAL EIJECIRIC ASS'GCIAllilON
I      Providing an Essential Service to All Customers


       • Municipal electric utilities serve customers inside and outside of city
         limits
                  • Territories established by FPSC
       • All customers are treated equally (State regulatory oversight ensures
         this)
       • As authorized by FPSC, can charge up to 10% on customers served
         outside city limits equivalent to inside customer utility tax


    Fl.ORIDA PUl!LIC POWER
                                                                    FMC
                                                                    FLORIDA. MUNICIPAL EIJECIRIC ASS'GCIAllilON
I      Municipal Electric Governance Structures

       • City Council/City Commission – many
                  • Commission/Customer Committee Hybrid – Lakeland
                  • Customer Advisory Committee – many
       • Appointed Utility Authority
                  • Jacksonville, Orlando, Kissimmee, New Smyrna Beach, Fort Pierce
       • Elected Utility Authority
                  • Key West/Keys Energy Services
                             • Elected by all customers in KEYS service territory; three from Key West, two from
                               outside city limits


    Fl.ORIDA PUl!LIC POWER
                                                                                                    FMC
                                                                                                    FLORIDA. MUNICIPAL EIJECIRIC ASS'GCIAllilON


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