[00:00:08]
>> THAT AFTERNOON. IT IS NOW 4:00 P.M. I WOULD NOT TO CALL THE ORDER OF THE UTILITIES AUTHORTIES BOARD. WOULD YOU PLEASE JOIN ME IN STANDING FOR THE INVOCATIN LED BY CAROL WILSON, HUMAN RESOURCE SPECIALISTS FOLLOWED BY THE
PLEDGE OF ALLEGIANCE. >> FATHER, WE PRAY PROVERBS 21 THROUGH 123 WHICH SAYS THAT THE KING'S HEART IS IN THE HAND OF THE LORD LET THE RIVERS OF WATER. HE TURNS IT WHEREVER HE WISHES. EVERY WAY OF A MAN IS RIGHT IN HIS OWN EYES BUT THE LORD WEIGHS THE HEIGHT. TO DO RIGHTEOUSNESS AND JUSTICE IS MORE ACCEPTABLE TO THE LORD THAN SACRIFICE. AS OUR BOARD GOVERNS TODAY, LET THEM BE AWARE THAT WITHIN FPUA, THEY ARE THE KING'S WHOSE HEARTS ARE BEING TURNED BY YOUR HAND TO GOVERN OUR COMPANY. AS IT SAYS HERE, IS IN THEM A DESIRE TO GOVERN WITH THE RIGHTEOUSNESS AND JUSTICE. IN
>> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND THE REPUBLIC FOR WHICH IT STANDS, ONE NATION, UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
>> CLERK, WOULD YOU PLEASE CALL THE ROLL?
>> YES, MA'AM. >> MS. GIBBONS.
>> YES, MA'AM. >> MR. LAMMERS.
[A. SET THE AGENDA]
>> LET THE REGULAR REFLECT THAT WE HAVE A QUORUM PRESENT. NEXT ITEM IS TO SET THE AGENDA. DO WE HAVE EIGHT QUORUM?
>> MOVED TO SET THE AGENDA. >> CALL THE ROLL.
[B. COMMENTS FROM THE PUBLIC]
>> WE WILL NOW MOVE ON TO PUBLIC COMMENTS. IF ANY MEMBER OF THE PUBLIC WISHES TO SPEAK, THESE COME FORWARD, STATE YOUR NAME AND ADDRESS FOR THE RECORD AND YOU WILL HAVE THREE MINUTES TO ADDRESS THE BOARD. SEEING NO ONE, I WILL NOW CLOSE THE
[C. APPROVAL OF MINUTES]
PUBLIC COMMENT SECTION. NEXT ITEM IS THE APPROVAL OF THE MINUTES FROM THE REGULAR MEETING HELD ON DECEMBER 3RD.ARE THERE ANY CHANGES OR CORRECTIONS AND IF NOT, DO HAVE
A MOTION TO APPROVE? >> MOVE FOR APPROVAL.
>> SECOND. >> PLEASE CALL THE ROLL.
[D. CONSENT AGENDA]
>> MOVING ON TO THE CONSENT AGENDA. ARE THERE ANY ITEMS THE BOARD ELECTABLE FOR DISCUSSION OR DO WE HAVE A MOTION?
>> I MOVE APPROVAL. >> I WILL SECOND.
>> PLEASE CALL THE ROLL. >> MRS. BENNETT.
>> YES, MA'AM. >> MS. GIBBONS.
>> YES, MA'AM. >> MAYOR HUDSON.
>> MR. LAMMERS. >> YES, MA'AM.
>> ALL RIGHT. NOW TO OUR REGULAR AGENDA. I WOULD LIKE TO OFFICIALLY WELCOME STEPHANIE ON THE TEAM. TODAY IS HER SECOND DAY ON THE JOB AND I REALLY APPRECIATE HER GETTING IN THE MIX ALL THE WAY. SINCE JODY AND DAN REVIEWED TODAY'S ITEMS, JODY IS JOINING US VIA TELEPHONE SHOULD YOU HAVE ANY SPECIFIC QUESTIONS ABOUT ANY OF THE ITEMS. MOST OF THE ITEMS I THINK WOULD HAVE BEEN ON THE CONSENT AGENDA BUT STEPHANIE IS SIGNING THE DOCUMENTS TODAY SO, SHE IS OUR GENERAL COUNSEL. SHE
[E.1. Install 8"PE down Alco Road to new Gate Station - Amendment No. 1]
WILL SEE THE SIGNING OF EVERYTHING TODAY BUT JODY IS ON THE PHONE SHOULD YOU HAVE ANY QUESTIONS SPECIFICALLY TO HIS REVIEW. MOVING ON. THE FIRST ITEM THIS AFTERNOON IS A REQUEST TO AMEND THE CONTRACT RELATED TO THE NEW GASKET MAINSTATION. >> THANK YOU, MR. CISNEROS.
CHAIRMAN, I BRING BEFORE YOU REQUISITION 43772. THIS IS THE INSTALLATION OF EIGHT INCH PE DOWN ELKO ROAD FROM INDRIO ROAD FROM 4050 FEET FOR OUR SITE FOR OUR NEW GATE STATION. THIS WASN'T IN OUR ORIGINAL PLANS BECAUSE OF THE TIME WE DENIED OWNING ANY PROPERTY. NOW THAT WE ARE IN THE PROCESS AND THE FINAL STAGES OF PRODUCIN THE ONE ACRE PARCEL, WE CAN MOVE FORWARD WITH THE INSTALLATION OF OUR GAS MAIN. I AM HERE TO ASK FOR AN ADDITIONAL $154,094.53 WHICH WILL BRING OUR -- US FROM $2,492,990.75 TO A CONTRACT TOTAL OF $2,647,084.20 . THERE WILL BE MORE TO COME FROM THIS AS WE STILL HAVE TO DO OUR SITE DEVELOPMENT AND WE NEED TO BUILD OUR REGULAR STATION FOR THE NEW STATION. IS THERE ANY
[00:05:04]
QUESTIONS? >> I HAVE GOT A COUPLE OF QUESTIONS, MR. CHAIR. SO, THIS IS JUST AN INCREASE FOR THIS ONE. WHAT ARE YOU EXPECTING THE REST OF THE INCREASES BE FOR THE DEVELOPMENT OF THE LAND? OR ARE THEY GOING TO BE IN TWO
DIFFERENT BUCKETS? >> IT IS GOING TO BE IN TWO DIFFERENT ONES. IT IS GOING TO BE FOR THE DEVELOPMENT OF THE LAND AND FTC WHEN THEY BRING THE GAS UP WHERE WE ARE GOING TO TIE INTO IT THEY JUST BRING UP A PIPE AND WE HAVE TO HAVE OUR REGULAR STATION BUILT WHICH WILL TAKE IT FROM 1000 POUNDS DOWN TO 48 POUNDS, WHICH WE DELIVER FOR OUR CUSTOMERS. SO
WE STILL HAVE TO HAVE IT BUILT. >> AND HOW CLOSER ARE WE TO
CLOSING ON THE PROPERTY? >> HOPEFULLY --
>> IS IN REVIEW RIGHT NOW. WE HAVE ABOUT 30 MORE DAYS FOR
REVIEW. >> MR. CHAIRMAN, WAS THIS PLANNED ALL WRONG FOR THIS PROPERTY ?
>> YES, MA'AM. IT WAS ALL PART OF THE ORIGINAL PLAN. THE PROBLEM WE HAD WOULD BE SOMEONE WHO WOULD SELL US AN ACRE.
>> AND DOES THIS GIVE US ACCESS TO MORE CUSTOMERS?
>> YES, MA'AM. THIS WILL GIVE US REDUNDANCY IN OUR SYSTEM SO IF ONE OF OUR GATE STATIONS GO DOWN, WE HAVE THIS GATE STATION WHICH WE PUSHING GAS FROM THE NORTH. SO IF SOMETHING HAPPENS TO OUR NORTHGATE SYSTEM THAT WE HAVE NOW OR OUR SOUTH GATE SYSTEM, WE WILL HAVE NO PROBLEM KEEPING UP WITH THE FLOW OF
STUFF. >> MR. CHAIR? IF I REMEMBER CORRECTLY, THIS IS ALL PART OF THE STRATEGIC PLAN TO HELP GROW? RIGHT. SO THAT IS GOING TO HELP US UP WHEN THE DEVELOPMENT IS GOING ON OUT THERE. NEW YORK, KING'S,
INDRIO IN ALL OF THAT. >> I JUST WANT TO ADD THAT THE GATE STATION WAS ORIGINALLY GOING TO BE PUT ON A PIECE OF ARE PRETTY CLOSER TO INDRIO ROAD AND BECAUSE OF SIZE REQUIREMENTS, WE FOUND A BETTER LOCATION AND ALSO IT IS A LITTLE MORE BETTER FOR CONSTRUCTION AND AS FRED MENTIONED, WE WILL BE BACK WITH SOME ADDITIONAL INFORMATION AND ADDITIONAL COSTS FOR CONSTRUCTION AND ALSO POTENTIALLY, WHICH WE WILL TALK ABOUT IN THE NEXT ITEM, A RETURN ON OUR DEPOSIT OR I GUESS WHATEVER THE TERMINOLOGY
HERE IS READILY USED. >> ANY OTHER COMMENTS FROM THE
>> SECOND. >> PLEASE CALL THE ROLL.
>> MRS. BENNETT. >> YES, MA'AM.
>> MS. GIBBONS. >> YES, MA'AM.
[E.2. Builders Agreement for Pineapple Grove in St. Lucie County]
>> MISSES >> MR. LAMMERS. GIBBONS.
>> YES, MA'AM. >> FRED WILL ALSO PRESENT THIS
ITEM. >> THANK YOU, MR. CISNEROS.
CHAIRMAN, I BRING BEFORE YOU REQUISITION 43 601. THIS BILLED FOR AGREEMENT IS FOR PINEAPPLE GROVE, WHICH WILL BE BUILT BY HOLIDAY BUILDERS, A FLORIDA COMPANY. THIS IS A PLANNED RESIDENTIAL COMMUNITY OFF OF NORTH ROCK ROAD AND ENGLE ROAD.
THE SITE WILL HAVE 402 HOMES WHICH 395 OF THEM THEY GUARANTEED US WILL HAVE NATURAL GAS BUILT INTO THEM. ALSO, FPUA WILL BE DOING ALL THE INSIDE PIPING FOR HOLIDAY BUILDERS , WHICH WILL CONTAIN A NATURAL GAS WATER HEATER, A DRYER, AND A STOVE AND WE WILL BE PAID FOR DOING ALL OF THE PIPING FOR THEM. THIS PROJECT WILL BE DONE IN FIVE PHASES AND THEY ARE TRYING TO COMPLETE 100 HOMES PER YEAR. FUNDING WILL COME FROM INTEREST ON THE BOND FUNDS FOR PHASE ONE, WHICH IS $300,000 AND PHASE TWO WILL BE LEFT OVER FUNDS FROM THE NORTHGATE STATION PROJECT. REST OF THE BUDGET YEARS WILL BE BUDGETED INTO OUR CAPITAL BUDGET.
>> ANY QUESTIONS? >> THIS PROJECT ALSO TIES INTO OUR NORTHGATE STATION AREA SO IT WILL BE SUPPLIED BY THE
NORTHGATE STATION. >> CAN YOU REFRESH MY MEMORY? DO WE HAVE A SERVICE TERRITORY FOR GAS OR ARE WE JUST GOING
WHEREVER WE ARE GOING? >> MA'AM, AS LONG AS THE GAS IS NOT THERE, WE ARE ALLOWED TO GO. SO WE WANT TO EXPAND AS MUCH AS WE CAN AND THAT IS WHAT WE GOT UP INTO LAKEWOOD PARK AS FAST AS WE COULD BECAUSE CHESAPEAKE WHO BOUGHT THE CITY GAS IS EXPANDING ALL OVER THE PLACE SO NOW THEY CANNOT COME DOWN. SO LAKEWOOD PARK AND WEST OF 95 IS ALL OURS.
>> I WOULD LIKE TO EXPAND ON THAT JUST A LITTLE BIT. EVEN THE MOMENT YOU FILE A PERMIT OR A PLAN TO EXPAND INTO THAT AREA, YOU OFFICIALLY CLAIM THAT TERRITORY. WE DID THAT THREE OR FOUR YEARS AGO AND OBVIOUSLY WE FOLLOWED THAT UP WITH ACTUAL CONSTRUCTION THROUGHOUT BOND PROCEEDS SO THAT TERRITORY IS ESSENTIALLY HOURS FROM INDRIO TO MIDWAY, RIGHT? AND HOPEFULLY
AS FAR WEST AS WE CAN GO. >> ALL THE WAY TO OKEECHOBEE.
[00:10:03]
>> MR. CHAIR, I HAVE GOT A COUPLE. SO, IN LEARNING A LOT ABOUT ANNEXATIONS AND WHATNOT AND GROWING THE CITY, IS THERE AN OPPORTUNITY FOR US TO TETHER SOME SORT OF AN ANNEX AGREEMENT WITH THE GAS OR HOW DOES THAT TYPICALLY WORK?
>> ANNEXATION RIGHT NOW IS REQUIRED BY RESOLUTION OF THE CITY FOR WATER WASTEWATER ONLY. NOT FOR ELECTRIC OR GAS.
ELECTRIC IS DEFINED BY THE PUBLIC SERVICE COMMISSION BY TERRITORIES IN NEGOTIATIONS WITH THE IOUS BUT GAS DOES NOT HAVE THAT REQUIREMENT RIGHT NOW. I KNOW THAT IS SOMETHING WE HAVE TALKED ABOUT BUT AS OF RIGHT NOW, WE DO NOT HAVE THAT
REQUIREMENT IN PLACE. >> MR. CISNEROS, I REMEMBER THIS, DURING OUR TO PLANNING SESSION BECAUSE WE HAD THE IDEA THIS WOULD BE A REALLY GOOD MECHANISM FOR EXPANDING THE CITY LIMITS. THE ONE CONCERN THAT I HAD AND I STILL HAVE IS GAS IS NOT A PRIORITY UTILITY. IT CAN BE SUBSTITUTED WITH ELECTRIC. SO, IF YOU TIE IT AN ANNEXATION REQUIREMENT AS ONE OF OUR REQUIREMENTS FOR RECEIVING GAS FROM US, THAT COULD MAKE IT DIFFICULT OF THE SELLING OF A POTENTIAL CUSTOMER GAS SERVICES THAT MUCH HARDER. SO, THIS WAS A BIG WIN FOR US.
WHO KNOWS IF WE WOULD HAVE BEEN ABLE TO ACHIEVE THIS WIN. IT WOULD HAVE BEEN ANOTHER HURDLE TO GET OVER FOR THE GAS DEPARTMENT AND SALES TEAM IF THAT ANNEXATION WAS TIED TO IT.
>> YOU ARE ABSOLUTELY RIGHT, MR. CHAIRMAN. FORTUNATELY, THIS PROJECT IS WITHIN THE WASTEWATER SERVICE AREA BUT YOU ARE ABSOLUTELY RIGHT. FOR PROJECTS THAT ARE TOWARDS INDRIO OR THE NORTH INDRIO ROAD AREA , I COULD SEE THAT POTENTIALLY BEING IN CONFLICT. WE ALSO ALREADY SERVE GAS INSIDE OF THE CITY. JUST THE NORTHERN END OF THAT CITY OF SEAPORT LUCY. WE GO ALL THE WAY DOWN TO RIO MAR AND U.S. ONE BY BELLA ROMA. YES, MA'AM. THAT IS OUR GAS CUSTOMER.
>> WE ARE ALREADY IN PORT ST. LUCIE.
>> I HAVE ANOTHER QUESTION AS WELL. SORRY. I KNOW THAT WE HAVE ALSO BEEN TALKING ABOUT THE CIC? AM I USING THE RIGHT TERM? IS THERE GOING TO BE ANY ABOVE AND BEYOND COST --
>> NO, MA'AM. >> -- OKAY. THE PAYBACK?
>> THE PAYBACK ON THIS PROJECT IS NOT AFTER FIVE YEARS.
>> I THINK YOU WERE TALKING ABOUT CONTRIBUTION AND NATIVE INSTRUCTION. CIC, CIC A, AND CIA.
>> I AM SORRY. >> SO, MR. CHAIRMAN, IT SOUNDS TO ME THE WAY YOU SAID IT WAS 99% OF THE HOMES ARE GOING TO
>> YOU SOUNDED EXCITED ABOUT THAT.
>> VERY EXCITED. WE HAVE CALLED MARIA WHICH ARE GOING TO BRING US A LOT OF CUSTOMERS AND YOU GUYS APPROVED ANOTHER BIG ONE FOR US ON INDRIO ROAD . THAT IS 75 GNOMES BUT THIS IS A LITTLE UNDER 500 HOMES. THIS IS A REALLY BIG DEAL FOR US AS EXPANSION HAS BEEN PRETTY HARD AND WE ALSO HAVE ON THE CORRIDOR, THERE HAS BEEN -- WE HAVE SEEN PLANS NOW FOR OVER
4000 HOMES GOING IN. >> WOW. THAT IS GREAT.
>> THAT WOULD MAKE YOU HAPPY TOO.
>> DEVELOPMENT OFF OF MIDWAY HOME THAT IS OVER 2000 HOMES THAT ARE ON OUR SIDE, NOT ON CITY GASES SIDE.
>> THAT IS EXCELLENT. >> IT IS GREAT TO SEE THINGS THAT WE DISCUSSED AND PUT INTO OUR STRATEGIC PLANS START TO MATERIALIZE AND COME TO FRUITION AND HAVING THE REST OF THE TEAM DOING A REALLY GOOD JOB OF MAKING SURE THEY ARE MANAGED WELL. I HAVE A COUPLE QUESTIONS. ANY OTHER COMMENTS THOUGH? ONE IS, YOU JUST PRESENTED ON TWO PROJECTS. IS THE CONSTRUCTION OF THIS NEW CAST GASKET STATION, IS THAT A PREREQUISITE FOR BEING ABLE TO SERVE THESE NEW HOMES?
>> NO. >> WE CAN SERVE THEM. IT IS JUST A REALLY STRONG SUPPORT FOR IT.
>> YES. AND ANOTHER ONE IS, IF WE ARE DOING THE PLUMBING IN THESE HOMES, DO WE HAVE A SCHEDULE FROM HOLIDAY BUILDERS OF WHEN THEY PLAN TO DO WHAT PHASES OF THE PROJECT AND ARE WE CONFIDENT THAT WITH OUR CURRENT STAFF LEVEL, WE CAN
KEEP UP? >> VERY CONFIDENT THAT WE CAN BECAUSE THEY ARE USING THREE MODELS AND WE HAVE ALREADY BEEN LOOKING INTO IT. WE ALREADY HAVE SOME THINGS ON ORDER SO THAT WE CAN BLUEPRINT IT AND THE GUYS WILL GO OUT THERE AND EVERY HOME IS GOING TO BE THE SAME TO PIPE AND IT SHOULDN'T
[00:15:04]
TAKE THEM MORE THAN HALF A DAY TO PIPE A HOME.>> OKAY. SO HALF A DAY PER HOME. SO IF IT NEEDED TO, WE
CAN PRODUCE THAT QUICKLY. >> YES. THEY ARE ALSO PAYING US. WE GAVE THEM A SET PRICE FOR ALL THREE HOMES AND WE WILL
BE LOSING MONEY. >> OKAY. IT IS VERY COMMENDABLE THAT YOU GUYS OFFER THAT SERVICE. I THINK WITHOUT THAT, IT WOULD BE MUCH MORE DIFFICULT.
>> THAT IS ONE OF THE REASONS WHY HOLIDAY BUILDERS CHOSE TO USE NATURAL GAS IS BECAUSE WE DO THE PIPING FOR THEM.
>> ONE LESS THING FOR THEM TO WORRY ABOUT.
>> ANY OTHER COMMENTS OR QUESTIONS FROM THE BOARD?
>> I AM EXCITED. I WOULD LIKE TO MOVE APPROVAL.
>> SECOND. >> PLEASE CALL THE ROLL.
>> MRS. BENNETT. >> YES, MA'AM.
[E.3. Status Report on Electric Power Cost Adjustment (PCA) for October 2024]
>> MS. GIBBONS. >> YES, MA'AM.
>> MAYOR HUDSON. >> YES, MA'AM.
>> MR. LAMMERS. >> YES, MA'AM.
>> AS SHE MAKES HER WAY UP TO THE PODIUM, I WILL GIVE YOU JUST A LITTLE BIT OF BACKGROUND. OUR COSTS FOR THE UPCOMING YEAR THROUGH F MPA ARE GOING TO BE VERY, VERY COMPETITIVE. THERE IS A SLIGHT INCREASE BECAUSE OF SOME CAPITAL PROJECTS THEY HAVE TO WORK ON, BUT THIS IS A GREAT EXAMPLE OF WHY THE RATE STABILIZATION FUND IS IMPORTANT FOR US BECAUSE IT WILL HELP US MITIGATE SOME OF THOSE AND BARBARA WILL TALK A LITTLE BIT ABOUT THAT IN HER PRESENTATION SO, JUST WANTED TO KIND OF PREFACE THAT WITH AN INTRO.
>> THANK YOU, MR. CISNEROS. GOOD AFTERNOON, CHAIRMAN LAMMERS, BOARD . I HAVE FOR YOU TODAY THE OCTOBER UPDATE TO THE FM PETE PRODUCTIONS AND TO THE PC, POWER ADJUSTED ADJUSTMENT.
THIS TABLE SHOWS THE HISTORICALLY OVER AND UNDER CONNECTION OF POWER COSTS AND THE CUMULATIVE BALANCE IN THE RE-STABILIZATION FUND. AT THE CLOSE OF OCTOBER, THE BALANCE IN OUR RATE STABILIZATION FUND WAS $11.3 MILLION. THE TARGETED BALANCE FOR OUR STABILIZATION FUND IS RECOGNIZED AT $10 MILLION. OCTOBER PROJECTIONS FROM F MPA DEMONSTRATE FPUA MAINTAINING OUR TARGETED BALANCES FOR THE RATE STABILIZATION FUND WITH A PCA FACTOR OF ZERO DOLLARS. THE NOVEMBER UP AID LOOKED AT THE UPDATED FORWARD CURVE GAS PRICES AND INDICATED AN INCREASE OVER THE OCTOBER PROJECTIONS IN THE GAS PRICING FUTURES. THIS GRAPH DEPICTS TWO YEARS OF ACTUAL MONTHLY RECOVERY NOTED BY THE BLUE BARS AND ANOTHER YEAR OF REJECTED POWER COSTS RECOVERY BASED ON FPUA OCTOBER PROJECTIONS. THESE LEVELS -- THE BARS -- SHOW THE OVERPRODUCTION THROUGH THE CIVILIZATION BALANCES AND THEY ARE SHOWING A COMPARISON TO THE ADJUSTMENT THAT IS BILLED TO THE CUSTOMER AND CERTAINLY CURRENTLY SET AS -3 DOLLARS AS THE TIME OF THIS INFORMATION FOR 1000 KILOWATT HOURS OF CONSUMPTION. IN NOVEMBER, THE BOARD APPROVED A DECREASE IN THE POWER COST ADJUSTMENT OF $1.50 WITH AN EFFECTIVE DATE OF JANUARY 1ST OF 2025. TODAY'S PROPOSAL OF AN INCREASE BY AN ADDITIONAL $1.50 PER 1000 KILOWATT HOURS OF CONSUMPTION WILL BRING THE PCA TO A ZERO DOLLAR AMOUNT AND IS ALSO DISPLAYED IN THIS GRAPH. THIS LONGER-TERM PICTURE ATTRACTS PRODUCTIVE RE-STABILIZATION FUND RELATIVE TO THAT TARGETED FUND BALANCE AND INCLUDES PROJECTIONS THROUGH SEPTEMBER OF 2026. FIRST LOOKING AT THE GREEN AND ORANGE LINES, WHICH FOLLOW AN ALMOST IDENTICAL PATH NOTING THE IMPROVED CHANGES TO THE POWER COST ADJUSTMENT THAT WE HAVE BEEN MONITORING MONTHLY SINCE LAST MAY WHEN WE IMPLEMENTED THE INCREASE EFFECTIVE JULY 1ST OF THE THREE DOLLAR DECREASE TO THE POWER COST ADJUSTMENT. THE GREEN LINE FACTORS IN THE DOLLAR 50 INCREASE TO THE POWER COST ADJUSTMENT AND WILL TAKE AFFECT -- THAT WILL TAKE EFFECT ON JANUARY 1ST. I AM SORRY. AND ALSO NOTE THE ADDITIONAL DOLLAR 50 WE ARE PROPOSING TODAY WILL TAKE EFFECT ON FEBRUARY 1ST. THAT IS FOLLOWING THE GREEN LINE WHICH AGAIN THEY ARE IDENTICAL AND ON TOP OF EACH OTHER. SO VERY CLOSELY ALIGNED IS THIS ORANGE BAR THAT HAS OTHER FACTORS THAT ARE INCLUDED AND IT PROPOSES BEYOND WHAT WE ARE ASKING FOR TODAY OF THE FEBRUARY INCREASE SOME SEASONAL
[00:20:02]
ADJUSTMENT AND THOSE WOULD BE DECREASES BEGINNING IN MAY OF 2000 TWO DOLLARS PER MONTH PER THREE MONTHS AND THAT IS GOING TO BE MOVING UP THE RATE STABILIZATION FUND MOVING IT BACK UP AFTER THE ADJACENT YEAR. IT ALSO INCLUDES -- INCREASES BACK TO ZERO IN THE AFTER MONTHS GOING INTO THE FALL IN SEPTEMBER. OCTOBER THROUGH DECEMBER. I AM SORRY.SO, WITH CONSIDERATION TO THE RECENT INDICATORS OF THE INCREASE IN THAT FORWARD CURVE THAT HAFEE HAD ALLUDED TO EARLIER, STAFF IS RECOMMENDING THAT WE STAY MORE CLOSELY ALIGNED WITH THE RATE STABILIZATION OF THE $10 MILLION AND AS SUCH, WE ARE PROPOSING FOR A FEBRUARY 1ST IMPLEMENTATION OF A $1.50 INCREASE IN THE POWER COST ADJUSTMENT, WHICH WOULD BRING IT BACK TO ZERO AS OF FEBRUARY 1ST. AND THAT IS ALL I HAVE IF YOU HAVE ANY QUESTIONS.
>> RIGHT NOW THIS IS JUST INFORMATION PURPOSES ONLY.
>> THE FEBRUARY ADJUSTMENT , WE ARE REQUESTING ACTION ON THE FEBRUARY 1ST. RIGHT NOW, WE HAVE JANUARY 1ST AND COMING UP ON THE NEW YEAR AND WE ALREADY HAVE APPROVED AN INCREASE OF $1.50. SO IT IS GOING FROM -3 TO NEGATIVE DOLLAR 50. SO WHAT WE ARE PROPOSING TODAY IS TO TAKE IT FROM THE NEGATIVE DOLLAR 50 BACK TO ZERO PCA, NO ADJUSTMENT TO THE BILL
EFFECTIVE FEBRUARY 1ST. >> AND ARE WE VOTING ON THAT TODAY OR ARE WE WAITING ON JANUARY 1ST?
>> THIS IS THE LATEST INFORMATION WE HAVE OTHER THAN THE CODE WE HAD THIS PAST WEEK WHICH GAVE US NOVEMBER NUMBERS.
WE ARE ALWAYS WORKING WITH THE INFORMATION WE ARE PRESENTING.
APPROVING IT TODAY GIVES US AMPLE TIME TO NOTIFY THE CUSTOMERS THAT THIS CHANGE IS GOING TO TAKE PLACE AHEAD OF THE BILL COMING OUT. THE FEBRUARY BILL COMES OUT BUT THEY ARE REALLY BEING BILLED FOR JANUARY CONSUMPTION IS AGAIN, YOU ARE BILLED ON FEBRUARY 1ST SO YOU'RE TRYING TO GET AHEAD OF THE NOTIFICATION PROCESS BY DOING
IT EARLIER. >> IN THE PAST, WE HAVE TYPICALLY NOTIFY THE CUSTOMER TWO WEEKS BEFORE AS PART OF THEIR CONSUMPTION WAS ALREADY IN PLACE. OUR PROTOCOL NOW IS TO DO IT TWO MONTHS IN ADVANCE AND LOOKING AT THE 12 MONTH WINDOW SO THAT WE CAN TRY TO KEEP IT AS CLOSE AS POSSIBLE TO ZERO WITH MINIMAL ADJUSTMENTS. SO THIS IS TO MAKE SURE WE GET THE CUSTOMER PLENTY OF TIME. HOPEFULLY, THE INTENT HERE IS TO KEEP IT AT OR NEAR ZERO THROUGHOUT THE ENTIRE YEAR. SO THERE WAS JUST SOME GRAPHS THERE TO SHOW YOU SOME OPTIONS
THAT WE ARE CONSIDERING. >> YES. BEYOND THE FEBRUARY DATE, THOSE ARE JUST PROPOSALS. GREEN IS STAYING THE SAME AT ZERO AND ORANGE IS IMPLEMENTING CHANGES COME MAY. AND WHAT THAT WOULD DO AND THEN BRINGING IT BACK TO ZERO COME THE END OF THE YEAR AFTER THIS POINT BUT OCTOBER.
>> ANY THOUGHTS? >> YES, MR. CHAIR. IN LOOKING AT THE ACTUALS VERSUS PROJECTION FOR OCTOBER, MR. CISNEROS MENTIONED THAT THERE WERE SOME INCREASES IN CAPITAL IMPROVEMENT FOR FPUA. IS THAT THE REASON WHY THIS WAS HIGHER
IN OCTOBER? >> FOR OCTOBER, MAYBE NOT SO MUCH BUT FOR NOVEMBER AND THE OUT YEARS BECAUSE THEY ARE IN THEIR OUTAGE SEASON RIGHT NOW SO, AS THEY ARE GOING THROUGH PROJECTS AND LOOKING AT WHAT THEY HAD TO COMPLETE IN THIS OUTAGE, THEY ARE PUTTING THIS LIST TOGETHER FOR THE SPRING OUTAGE SO THEY ARE CONSTANTLY LOOKING AT THESE PROJECTS AND HAVE TO TAKE CARE OF THEM BECAUSE POWER PLANT, YOU CAN'T TAKE IT OFF-LINE TO MAINTAIN IT. SO THEY ONLY HAVE A SHORT TIME OR WINDOW TO DO THE WORK AND EVALUATE WHAT THEIR NEXT LIST IS GOING TO LOOK LIKE. SO THIS INCLUDES SOME CAPITAL PROJECTS FOR THE EXISTING UNITS AND SOME OF THE NEW UNITS THAT THEY PURCHASED. THE NUMBERS THAT THEY HAVE GIVEN US OUR CONSERVATIVE NUMBERS, MEANING THAT HOPEFULLY THOSE END UP BEING THE WORST CASE, THAT THEY ARE GIVING US NOTICE NOW, WHICH IS GREAT BECAUSE NOW WE CAN PREPARE FOR THE NEXT YEAR WITH OUR RATE STABILIZATION FUND. WE DID STRESS TO THE FPUA LEADERSHIP AND STAFF TO KEEP IT AS LOW AS YOU CAN, BUT IF YOU THINK ABOUT THE NUMBERS FROM WHAT WE GOT A COUPLE OF MONTHS AGO TO THE NUMBERS WE GOT LAST MONTH, IT IS 5% DELTA, WHICH IS PRETTY CLOSE TO WHAT THEY BUDGETED. SO STILL FEEL VERY COMFORTABLE WITH THE WAY THEY ARE HANDLING THEIR STAFF. THEY ARE HANDLING THE WAY THEY ARE BUDGETING AND WITH OUR RATE STABILIZATION FUND, IT MAKES IT MORE MANAGEABLE FOR HERE LOCALLY IN FORT PIERCE TO BE ABLE TO MITIGATE SOME OF THOSE.
[00:25:06]
>> I GUESS I AM ONE WORRIED BECAUSE WE HAVE BEEN SO CLOSE FOR QUITE A WHILE AND THIS IS A PRETTY DISPARAGING DIFFERENCE.
68.86 COMPARED TO 8307 WHICH IS THE ACTUAL. SO, I AM CAUTIOUS BECAUSE WE HAVEN'T SEEN THIS TYPE OF DIFFERENCE SINCE BEFORE WE WERE BUYING GAS. SO, WE HAVE BECOME VERY COMFORTABLE WITH THE NUMBER BEING LESS THAN AND NOW WE HAVE GOT TO FLIP SO I AM JUST LOOKING FOR SOME REASONS AND ALSO SOME BACKGROUND SO THAT WE ARE PREPARED FOR NEXT MONTH AND ALSO THE FOLLOWING MONTHS IN THE COMING YEAR, YOU KNOW?
>> SO I WOULD LIKE TO ECHO SOME OF THE THINGS YOU SAID.
ACTUALLY MENTIONED THAT AT THE LAST FPUA BOARD IS WE ALL HAVE GOTTEN PRETTY COMFORTABLE THAT THE PRICES ARE LOW. WE CAN'T EXPECT THAT FOREVER, THAT WE CAN AT LEAST WITH OUR GAS STABILIZATION PROGRAM THAT THE FPUA HAS IN PLACE, THEY CAN AT LEAST MAKE SURE THAT WINDOW IS TIGHTER RATHER THAN THE 2022 WINDOW WHICH WAS VERY WIDE. AND TYPICALLY DURING THE WINTER, THE PRICES ARE SLIGHTLY HIGHER. THEY ARE SLIGHTLY HIGHER AND DURING THE SUMMER, THEY ARE SLIGHTLY LOWER SO THE WEIGHTED AVERAGE FOR THE YEAR IS THE NUMBER YOUR BUBBLY REFERRING TO. BECAUSE I THINK DURING THE WINTER, IT WAS 86 OR SO AND DURING THE SUMMER IT WAS 75. CAN YOU GO BACK TO THAT? I DON'T KNOW IF YOU HAVE A CHART IN FRONT OF YOU, BARBARA. NO.
SHE PROBABLY DOESN'T. IT IS THE FMPHR THAT WE GET. WE DO SEE A SMALLER NUMBER DURING THE SUMMER. CONSUMPTION IS HIGHER IN THE SUMMER SO WE GET A HIGHER -- LARGER UNIT COST. THE UNIT COST IS LESS. DURING THE WINTER, LESS CONSUMPTION BUT YOU STILL HAVE THE CARRYING COSTS THAT YOU HAVE TO PAY FOR SO USUALLY A HIGHER CARRYING COSTS THAT YOU HAVE TO PAY FOR DURING THE WINTER. HOPEFULLY THAT ANSWERS YOUR QUESTION.
>> ANY OTHER COMMENTS? >> SO WE ARE GOING TO GO TO ZERO IN FEBRUARY IF WE APPROVE THIS?
>> RIGHT. >> SO THAT IS A SEASONAL CHANGE GOING BACK TO THAT OF A CHART, RIGHT? BUT IN THE SUMMERTIME, THE SEASONAL CHANGE WILL BE A REDUCTION RIGHT NOW, RIGHT?
>> THAT IS WHAT THIS ORANGE LINE PROPOSES.
>> THAT'S RIGHT. SO WE ARE NOT TALKING ABOUT GOING ON ZERO
ANYTIME SOON? >> NOT BASED ON THE PROJECTIONS
THAT WE HAVE. >> RIGHT. SO ZERO OR BELOW AS FAR AS WE KNOW UNTIL SOMETHING HAPPENS THAT GIVES US SOME
OTHER INDICATION? >> THE GREENLINE WOULD FOLLOW ZERO BASED ON THE PROJECTIONS WE HAVE AND ORANGE LINE WOULD BE THE SAME WITH THE MAY IMPLEMENTATION.
>> AND THAT IS KEEPING CUNDIFF WITH OUR PHILOSOPHY OF TRYING TO LOWER OUR COSTS FOR OUR CUSTOMERS IN THE SUMMERTIME.
>> WHEN THE CONSUMPTION IS HIGHER.
>> AND TAKING ADVANTAGE OF THE SNOWBIRDS.
>> YES. RIGHT , RIGHT. >> DON'T SAY THAT OUT LOUD.
>> A LITTLE BIT ABOUT THAT BELT BECAUSE I THINK IT IS INTERESTING THAT WE ARE HAVING THIS DISCUSSION. WHEN I FIRST GOT ON THE BOARD I THINK IT WAS 18 NEGATIVE OR SOMETHING CRAZY.
AND NOT RECOGNIZING THAT THERE IS ALWAYS AN OPPOSITE AND EQUAL REACTION. SO, HERE WE WERE IN THE MIDDLE OF THE OPPOSITE IN 2022 AND THEN NOW I FEEL LIKE WE'RE KIND OF GETTING INTO THAT SHUFFLE WHERE THINGS ARE SETTLING A LITTLE BIT. SO I THINK OUR PHILOSOPHY BACK THAT WAS A LITTLE BIT DIFFERENT MAYBE THAN WHAT WE ARE TRENDING TOWARD NOW THAT WE ARE PRE-PURCHASING. AND SO, THIS MAY BE A DISCUSSION MORE FOR OUR STRATEGIC PLANNING MEETING OR WHATEVER, BUT I FEEL LIKE WE HAVE MORE TRENDED TOWARDS TRYING TO BE CLOSER TO ZERO SO THAT IT IS STABLE. IT IS CALLED THE RATE STABILIZATION FUND SO WE CAN KEEP IT STABLE FOR OUR CUSTOMERS, RIGHT? SO MAYBE THERE WOULD NOT BE SOME BIG SWING OF A -5 IN JUNE OR WHATEVER THAN A POSITIVE FIVE IN OCTOBER, DECEMBER. SO I DON'T KNOW IF THIS IS AN OPPORTUNITY TO HAVE THAT DISCUSSION OR EVEN IF WE WANT TO HAVE IT NOW, BUT I JUST KIND OF WANT TO MAKE SURE WE ARE ALL ON THE SAME PAGE AS WELL BECAUSE OUR PHILOSOPHY OVER THE LAST FOUR YEARS HAS CHANGED.
>> I THINK YOU BRING UP A GREAT POINT AND, BARBARA, I WAS GOING TO MENTION I KNOW I'VE MENTIONED IT A FEW DIFFERENT TIMES BUT I THINK IT IS A GOOD TIME HERE TO DISCUSS WITH THE POWER COST ADJUSTMENT DOES FOR US AND WHAT THE RATE
[00:30:01]
STABILIZATION FUND DOES FOR US AND THE ASSUMED COST TO PURCHASE POWER THAT WE ALREADY HAVE BUILT INTO THE RATE. SO, IF I GO OFF TRACK HERE THROUGH THIS BRIEF EXPLANATION AND YOU CAN CORRECT ME, WE HAVE A CERTAIN AMOUNT OF COSTS THAT WE ASSUME IS GOING TO COST US PURCHASE POWER ALREADY BUILT INTO THE RATE. THE COST OF PURCHASE POWER FLUCTUATES QUITE A BIT OVER TIME. SO THE POWER COST ADJUSTMENT IS THE TOOL THAT WE HAVE TO ACCOMMODATE FOR THAT FLUCTUATION IN PURCHASING POWER. WE ALSO HAVE THE RATE STABILIZATION FUND SO THAT WE HAVE A BANK OF MONEY SO THAT THE COST TO PURCHASE POWER SWINGS UP WILDLY, WE DON'T HAVE TO IMMEDIATELY PASS THAT COST ON TO THE CUSTOMER. WE CAN ABSORB SOME OF THAT WILD SWING THROUGH THE RATE STABILIZATION FUND AND NOT PASSED THE COMPLETE COST ALONG TO THE CUSTOMER BECAUSE, IN ESSENCE, THEY HAVE ALREADY SAVED -- THE CUSTOMERS HAVE ALREADY SAVED SOME OF THAT WILD SWING AND THE COST OF PURCHASE POWER THROUGH THE RATE STABILIZATION FUND. SO WE INCREASE THE LEVEL OF THE RATE STABILIZATION FUND QUITE A BIT BECAUSE A COUPLE OF YEARS AGO, WE REALIZED THAT THE SWINGS CAN BE SO WILD AT THE RATE STABILIZATION FUND -- WE DIDN'T HAVE ENOUGH MONEY IN IT TO ABSORB IT LIKE WE WANTED TO.>> WAS COMPLETELY INADEQUATE. >> IT WAS COMPLETELY INADEQUATE AND STAFF CAME UP WITH A GREAT REALIZATION. THE COST OF PURCHASE POWER HAS ALSO BEEN RELATIVELY STABLE AND FPUA HAS PRE-PURCHASED GASSO THAT FURTHER BUFFERS THE AMOUNT OF WILD SWING THAT WE WILL SEE, BUT EVEN WITH ALL OF THAT BEING SAID, BECAUSE OF THE CHANGES IN PRODUCTION, STAFF IS RECOMMENDING THAT WE DON'T HAVE A NEGATIVE POWER COST ADJUSTMENT SO THAT WE CAN MAKE SURE THAT RATE STABILIZATION FUND STAYS HEALTHY JUST IN CASE WE SEE SOME OF THOSE WILD SWINGS AGAIN. DID I MISS ANYTHING OR ARE THERE SOME
DETAILS WE SHOULD ADD THERE? >> THE ONLY THING I WOULD ADD IS WHEN YOU ARE SHOWING A NEGATIVE AND WE ARE RETURNING MONEY TO THE CUSTOMERS ON EVERY 1000 KILOWATT HOURS THAT THEY CONSUME. WHEN IT IS POSITIVE. THEY ARE BEING CHARGED THAT AND IN THOSE FLUCTUATIONS, THAT IS WHAT BUILDS THE RATE STABILIZATION FUND. WHEN YOU COLLECT IT AND THE MONEY IS GOING OUT, THAT IS JUST A MECHANISM THAT WE BUILD THE
RATE STABILIZATION FUND WITH. >> ONE THING I WOULD LIKE TO ADD AND YOU DID A GREAT JOB EXPLAINING IT BY THE WAY. THAT WAS EXCELLENT. THE RATE STABILIZATION FUND REQUIRES AT LEAST A YEAR OR LONGER TO BE ABLE TO BUILD IT UP. SO WE CAN'T REACT IN A COUPLE OF MONTHS TO GET TO A $10 MILLION RATE STABILIZATION FUND THAT IS APPROPRIATE FOR MITIGATING THE SUMMER MONTHS. I JUST THINK THAT IS ONE OF THE THINGS THAT WAS PART OF THE IDEA BEHIND THE RATE STABILIZATION FUND. WHEN WE SEE THIS BECAUSE WE WILL SEE IT AGAIN BECAUSE IT HAPPENS EVERY 4 TO 5 YEARS OR SO, HOPEFULLY WITH F MPA'S GAS STABILIZATION PROGRAM, WE CAN MITIGATE THAT EVEN MORE BUT THE RATE STABILIZATION FUND TAKES A LONG TIME TO BUILD UP AND WHEN YOU NEED IT, YOU NEED IT NOW AND YOU HAVE GOT TO HAVE IT
READY TO GO. >> THIS TIME PERIOD THAT I WAS REFERRING TO AT LEAST TWO YEARS AGO, I THINK WE DREW IT DOWN IN TWO OR THREE MONTHS. IT WAS NEGATIVE PRETTY QUICKLY.
>> I THINK WE HAD LESS THAN A MONTH. YES. IT WAS NEGATIVE.
>> THE RATE STABILIZATION FUND WAS NEGATIVE?
SPEAKERS ] >> NEVER WANT TO GO THERE
>> WE SHOULD MAINTAIN BETWEEN ONE AND FIVE. I WOULD BE HAPPY
>> YEAH. THIS IS DEFINITELY MORE I WOULD SAY COMFORTABLE
SPEAKERS ] >> AND AGAIN, THIS IS ALL FOR THE CUSTOMER. IT IS 100% FOR THE CUSTOMER. IT IS THEIR MONEY AND LIKE WE SAID, ONCE WE FEEL THAT IT IS A COMFORTABLE ENOUGH AMOUNT TO AVOID AS HAVING TO IMMEDIATELY PASS ON A WILD SWINGS TO THE COST OF ENERGY, WE START RETURNING THAT BACK TO
THE CUSTOMER. >> I BELIEVE THAT WE ALSO CHANGED HOW THE CASH WAS COUNTED, CORRECT? IT USED TO GO AGAINST TODAY'S ON HAND AND NOW IT DOESN'T. IT IS ITS OWN
ENTITY. >> YES, MA'AM. WHAT YOU ARE TALKING ABOUT IS THE DART PROGRAM WHERE WE ARE TRYING TO DO THE RATE STABILIZATION PROGRAM INDEPENDENT OF DAYS OF
[00:35:02]
CASH BECAUSE WE DID USE BOTH NUMBERS, WHICH THEY DO STILL COUNT TOWARDS DAYS CASH WE ARE TRYING TO OPERATE 60 DAYS OF CASH WITHOUT THE RATE STABILIZATION FUND BECAUSE THAT CAN BE COMPLETED IN TWO MONTHS. AND YOU ARE DOWN TO -- WE HAVE TO BE ABOVE 45 DAYS OF CASH AND THAT IS WHAT WE ARE TALKING ABOUT NOW. IN 2022, WE WERE DOWN TO 46 DAYS OF CASH WHICH WHATEVER IT WAS, IT WAS REALLY CLOSE TO -- WE WERE RECOVERED BY ARE REQUIRED BOND GOVERNANCE.>> WE WERE ABOVE THE REQUIREMENT AT THE TIME.
>> ESPECIALLY FOR OUR RATING AGENCIES. WE WERE CLOSE. THIS $10 MILLION RATE STABILIZATION FUND WILL PROTECT US AS MUCH AS POSSIBLE FROM THAT HAPPENING AGAIN THOUGH THERE WILL BE A SEASON WHEN WE GO THROUGH IT. I AM LOOKING AT THE CHART RIGHT NOW. F MPA WE HAVE APPROXIMATELY 60% OF GAS PURCHASE AT A FIXED PRICE. THE 2026 SEASON, THEY ARE AT 26 SO HOPEFULLY THEY CAN FILL IN THOSE GAPS. WHEN YOU'RE OUT, 50%. TO . THEY DON'T HAVE A WHOLE LOT FOR THREE YEARS OUT RIGHT NOW. THE PROGRAM IS WORKING AND STAFF IS DOING A GOOD JOB. SO, ALL OF THESE THINGS COMBINED REALLY PUT US IN A GOOD POSITION TO DO THE BEST THING FOR OUR CUSTOMER AS
YOU WERE ALLUDING TO. >> ANY OTHER COMMENTS? DO WE HAVE A MOTION TO RAISE THE PCA?
>> I MAKE A MOTION TO RAISE THE PCA. IT IS $1.50?
>> SECOND. >> IS CALL THE ROLL?
>> MRS. BENNETT. >> YES, MA'AM.
>> MS. GIBBONS. >> YES, MA'AM.
>> MAYOR HUDSON. >> YES, MA'AM.
>> MR. LAMMERS. >> YES, MA'AM.
[F. DIRECTOR COMMENTS]
>> THANK YOU. >> THANK YOU, BARBARA. THAT CONCLUDES THE REGULAR AGENDA. ANY COMMENTS FROM THE DIRECTOR?
>> JUST TWO. OUR NEXT BOARD MEETING IS JANUARY 7TH AND BOARD CHAMBERS. LAST THING, I WOULD LIKE TO WISH OUR CUSTOMERS, EMPLOYEES, AND BOARD MEMBERS A MERRY, MERRY CHRISTMAS AND HAPPY NEW YEAR. 2024 HAS BEEN A REALLY GOOD YEAR AND I EXPECT 2025 TO BE JUST AS GOOD IF NOT BETTER
[G. ATTORNEY COMMENTS]
NIGHT LOOK FORWARD TO OUR CITY PLANNING SESSION NEXT YEAR WHICH WILL BE PRETTY IMPORTANT FOR US SO, THANK YOU TO THE BOARD AND AGAIN, MERRY CHRISTMAS. HAPPY NEW YEAR.>> STEPHANIE. WELCOME. ANY COMMENTS FROM THE ATTORNEY?
>> I JUST WANT TO THANK YOU ALL PERSONALLY. THIS IS THE FIRST TIME I'M SEEING YOU ALL AS A BOARD SO I'M VERY EXCITED TO BE HERE AND SERVE YOU. I RECEIVED A WARM WELCOME ALREADY FROM THE TEAM AND IS OUT, YOU CAN HANG UP ON JODY NOW.
[H. BOARD MEMBER COMMENT]
TIME AGO. >> ANY COMMENTS FROM THE BOARD
MEMBERS? >> MET THEM ATTORNEY, WELCOME.
AND IT WOULD YOU SAY YOUR LAST NAME FOR THE WHOLE SO WE SEE IT
RIGHT? >> ABSOLUTELY. IT IS BESKAVOIN
. >> YOU SEE HOW I AVOIDED THAT?
BOARD? >> MERRY CHRISTMAS TO OUR
CUSTOMERS. >> MERRY CHRISTMAS. HAPPY
HOLIDAYS. >>
* This transcript was compiled from uncorrected Closed Captioning.