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[Call to Order]

[00:00:50]

TEST

[Item A]

[Item B]

[Consent Agenda]

[Item E]

[Item G1]

[Item G2]

[Item G4]

[Item G5]

[00:12:05]

THROUGH THIS PRESENTATION I WILL CONSIDER MYSELF SUCCESSFUL.

[00:12:08]

SO THERE IS A CORPORATION CALLED NORTH AMERICAN ELECTRICAL LIABILITY CORPORATION AND THEY WERE FORMED BECAUSE THERE WERE A FEW VERY WIDESPREAD OUTAGES THAT COULD HAVE BEEN PREVENTED IF THERE WERE MORE COORDINATION BETWEEN ELECTRIC UTILITIES THAT ARE CONNECTED TO THE GRID. SO ON THE SLIDE I JUST SHOWED A FEW OF THOSE BIG OUTAGES. YOU CAN SEE HERE IN EACH OF THESE INSTANCES THERE WERE MILLIONS OF CUSTOMERS OUT OF POWER AND FOR ALL OF THESE OUTAGES, AFTER THE FACT REPORTS AND STUDIES SHOWED THAT HAD THERE BEEN MORE COORDINATION THOSE OUTAGES COULD HAVE BEEN LIMITED BY A LARGE DEGREE.

AND SO, THE MISSION IS TO ENSURE THE RELIABILITY OF THE NORTH AMERICAN POW SYSTEM, AND THEY HAVE THIS DEFINITION OF WHAT THEY CONSIDER THE BOAT POWER SYSTEM, BUT ENSURE IT'S WHAT WE TYPICALLY THINK OF AS THE GRID. WHAT ALL OF OUR POWER PLANTS ARE CONNECTED TO THAT ENSURES WE HAVE A RELIABLE ELECTRICAL NETWORK. AND SO HERE'S SOME KEY PLAYERS INVOLVED WITH BULK ELECTRICAL SYSTEM RELIABILITY.

AT THE TOP YOU SEE THE FEDERAL GOVERNMENT AND THE FEDERAL ENERGY REGULATORY COMMISSION, OR FERC, AND THEN YOU SEE NERC UNDER THEM, FERC GAVE THEM THE ABILITY TO ENFORCE RULES UNDER THE GRID. SOME OF THE SEASONED BOARD MEMMEMBERS MAY REMEMBER WHEN I PRESENTED THIS UPDATE LAST YEAR WE TALKED ABOUT THE FACT THAT THE FLORIDA REGION WOULD ROLL UP INTO THE SOUTHEASTERN REGION, AND THAT TRANSITION HAS HAPPENED. SO WE ARE RESPONSIBLE TO BE COMPLIANT WITH THE NERC REGULATIONS, AND CERC IS THE ENTITY THAT DOES THAT ENFORCEMENT FOR US.

SO WE DO ALL OF OUR COMPLIANCE ACTIVITIES ON THE ELECTRICAL SIDE AS A TEAM. AND THIS SLIDES POINTS OUT THOSE MEMBERS OF THE TEAM. SENIOR LEVEL, YOU HAVE PAUL JACUBCZAK, AND YOU HAVE THE SUPERVISING ENGINEERS AND A SLEW OF PEOPLE ALSO ON THE TEAM THAT HEMS US ENSURE WE ARE COMPLIANT WITH THE REGULATORY ACTIVITIES THAT WE NEED TO BE COMPLIANT WITH. SO HERE IS A SLIDE THAT IS AN AERIAL VIEW OF THE SUBSTATION AND I'M POINTING THIS OUT BECAUSE NERC HAS A CLEARLY DEFINED LINE ON WHAT IS PART OF THE BULK ELECTRICAL SYSTEM. AT THE HARTMAN SUBSTATION THE EQUIPMENT THAT WE HIGHLIGHTED HERE IN RED IS ALL EQUIPMENT THAT IS RATED FOR OVER 100,000 VOLTS, AND THAT'S THE CLEAR LINE IN THE SAND THAT NERC DRAWS TO SAY THIS IS PART OF THE

[00:15:06]

BULK ELECTRIC SYSTEM. AND YOU SEE THE REST OF OUR FACILITY AT THE HARTMAN SUBSTATION AND THE YELLOW AND BLUE THOSE ARE VOLTAGE LEVELS UNDER THAT 100 KILL VOLTS AND THOSE ARE NOT CONSIDERED PART OF THE GRID.

AGAIN. THAT EQUIPMENT THAT IS RATED FOR OVER 100 KILL I VOLTS IS OPERATED BY FP & L, SO THAT HELPS US NOT HAVE AS MANY REQUIREMENTS THAT WE'RE RESPONSIBLE TO MEET BECAUSE FP & L HANDLESS THOSE RESPONSIBILITIES FOR US. AND THE OTHER PARTS OF THE SUBSTATION THE 69KV, AND THE 13.2KV PORTIONS ARE OWNED AND PREMEDITATED BY US. SO KIND OF WHAT DOES THIS ALL MEAN FOR FPUA? THERE IS 22 DIFFERENT NERC REGISTRATIONS. 2EUR TYPES OF ENTITIES THAT COULD BE INVOLVED WITH THE GRID. AND WE'RE REGISTERED AS TWO OF THOSE TYPES OF REGISTRATIONS. WE'RE REGISTERED AS A DISTRIBUTION PROVIDER, AND WE'RE REGISTERED AS A TRANSMISSION OWNER. AND THE GRAND SCHEME OF THINGS THOUGH THERE IS NOT A WHOLE LOT THAT WE CAN DO ON OUR PORTION OF THE GRID THAT REALLY CAN HAVE A BIG NEGATIVE IMPACT ON THE GRID IN GENERAL. SO, CERC REALIZED THIS AND DOESN'T GIVE US AS MANY WHAT DO YOU CALL IT THEY DON'T GIVE US AS MANY DOCUMENTS WE HAVE TO SUBMIT TO THEM TO PROVE WE'RE DOING ALL THE THINGS THAT WE'RE SUPPOSED TO DO BECAUSE THEY DON'T CONSIDER US A REAL HIGH RISK TO NEGATIVELY IMPACTING THE GRID. HOWEVER, THAT DOESN'T MEAN THERE IS NOT A LOT THAT WE HAVE TO DO INTERNALLY, EVEN THOUGH WE'RE NOT SUBMITTING DOCUMENTATION TO THEM TO PROVE THAT WE'RE DOING EVERYTHING. THERE IS STILL A SIGNIFICANT AMOUNT OF ADMINISTRATIVE WORK THAT WE HAVE TO DO TO MAINTAIN EVIDENCE THAT WE ARE DOING ALL THE RIGHT THINGS SO IF WE DO FIND OURSELVES IN THE POSITION OF BEING AUDITED THAT TRANS MANIPULATION IS READILY AVAILABLE TO PROVE AS EVIDENCE.

AS PART OF THAT OVER THE PAST YEAR WE'VE LOOKED AT EVERY SINGLE STANDARD THAT COULD POTENTIALLY APPLY TO FPUA, AND HAVE DONE A THOROUGH REVIEW. WE JUST FINISHED IT UP LAST WEEK. AND WE DID IDENTIFY A COUPLE OF SMALL GAPS IN OUR COMPLIANCE AND WE'VE RECTIFIED THOSE.

AND I HAVE A VERY HIGH DEGREE OF CONFIDENCE THAT WE HAVE CROSSED EVERY T, DOTTED EVERY I, TO ENSURE WE'RE WHERE WE NEED TO BE. ONE LAST THING I DID WANT TO HIGHLIGHT AS FAR AS NERC COMPLIANCE GOES AND THE GRID IN GENERAL IS THAT WHAT WE'RE SEEING IS INCREASINGLY MORE STRINGENT REQUIREMENTS ON CRITICAL INFRASTRUCTURE PROTECTION WHICH OF COURSE THE ELECTRICAL GRID IS CONSIDERED TO BE PART OF THAT. AND SO THERE IS TWO MAIN RESEMBLANCE WHEN IT COMES TO PROTECTING OUR CRITICAL INFRASTRUCTURE. ONE IS PHYSICAL SECURITY, AND THE OTHER THAT IS GETTING A LOT MORE TANKS RIGHT NOW BECAUSE INCREASINGLY, EVERYTHING IS BECOMING MORE AND MORE CONNECTED IS THE CYBERSECURITY. AND SO IT'S VERY POSSIBLE FOR A PERSON BEHIND A COMPUTER TO DO A LOT OF DAMAGE TO THE ELECTRIC GRID. AND WITH THAT IN MIND THERE ARE NEW MORE STRINGENT REQUIREMENTS COMING OUT IN JANUARY THAT WILL HAVE AN IMPACT ON EVERY ELECTRICAL UTILITY.

THAT'S PRETTY MUCH EVERYTHING I HAVE.

I SEE EVERYBODY STILL HAS THEIR EYES OPEN, SO I CONSIDER MYSELF SUCCESSFUL. IF THERE IS ANY QUESTIONS I WOULD LOVE TO TAKE THEM AT THIS TIME.

>> MADAM CHAIR, I WOULD BE INTERESTED WITH THE CYBERSECURITY MEASURES WHEN THAT HAPPENS AND WHENEVER -- WHATEVER IS GOING TO HAPPEN HAPPENS I WOULD BE INTERESTED IN THAT.

>> DEFINITELY, I CAN GIVE YOU A FEW HIGH LEVEL DETAILS RIGHT NOW. TWO THINGS THAT THEY'RE HITTING ON IS DEVICES THAT ARE MOBILE, AND HOW ARE WE GOING TO MAKE SURE THAT IF A PERSON MOVES THIS COMPUTER FROM THIS PART OF THE SYSTEM TO HERE THAT SOME MALICIOUS SOFTWARE HASN'T BEEN INSTALLED IN BETWEEN TIME. SO WHAT ARE THE SAFEGUARDS WE'RE GOING TO HAVE IN PLACE TO PREVENT THAT FROM HAPPENING, AND THE OTHER ONE IS SIMILAR IN REMOVABLE MEDIA, LIKE A THUMB DRIVE OR SOMETHING LIKE THAT. WHAT PROCESS DO WE HAVE TO ENSURE THAT REMOVABLE MEDIA AGAIN SINCE THE LAST TIME IT WAS INSTALLED HAS NOT HAD SOME TYPE OF MALICIOUS CODE INSTALLED ON IT. AND THE LAST ONE IS SUPPLY CHAIN MANAGEMENT AND I WASN'T EXACTLY SURE WHAT THAT MEANT WHEN I

[00:20:04]

FIRST STARTED DELVING INTO THAT REQUIREMENT, BUT ESSENTIALLY OUR FEDERAL GOVERNMENT HAS IDENTIFIED THAT SOME CYBER ASSETS OR COMPUTERS HAVE MALICIOUS CODE SNAWLD ON THEM FROM BEING MANUFACTURED IN CERTAIN KNOWN ADVERSARIAL AREAS LIKE CHINA. SO THEY ARE PUTTING IN REQUIREMENT TO MAKE SURE THAT WE HAVE IDENTIFIED CERTAIN MANUFACTURES THAT IT'S NOT SAFE TO BUY EQUIPMENT FROM BECAUSE THERE IS A POTENTIAL THAT MALICIOUS CODE EXISTS ON THAT TT EEQUIPMENT. AND THAT PART OF IT, THOSE THREE THINGS I MENTIONED IS NOT AN EASY ANSWER.

NOBODY HAS THAT FIGURED OUT YET FROM WHAT I UNDERSTAND.

>> GLAD I ASKED. THANK YOU.

>> YES MA'AM, THANK YOU ALL. >> NEXT ITEM IS THE BILL

[Item G6]

COMPARISON FOR THE MONTH OF SEPTEMBER 2019.

AND BARBARA MICHAEL WILL MAKE THE PRESENTATION.

>> THANK YOU MR. TOMPECK. MADAM CHAIR AND BOARD MEMBERS, GOOD AFTERNOON. I HAVE FOR YOU TODAY THE COMPARISON FOR THE ELECTRIC RATES IN THE STATE OF FLORIDA AND THE LOCAL TREASURE COAST UTILITY BILLS COMPARISON FOR THE MONTH OF SEPTEMBER 2019. IN THIS FIRST GRAPH YOU CAN SEE THE COMPARISON OF THE RESIDENTIAL ELECTRIC RATES FOR 1,000-KILOWATT HOURS OF CONSUMPTION FOR THE MONTH OF SEPTEMBER FOR THE 13 MUNICIPAL UTILITIES IN THE STATE OF FLORIDA THAT ARE MEMBERS OF THE ALL-REQUIREMENTS ROPROJECT.

THEY'RE DISPLAYED AND RANKED BASED UPON THEIR USE OF THE 1,000-KILOWATT HOURS AND AS MEMBERS OF THE PROJECT THESE MUNICIPALITIES BENEFIT THROUGH THE ECONOMIES OF SCALE ARE BRINGING AS A LARGER GROUP OF CITIES.

THEY EXPERIENCE LOWER OPERATING COSTS AND THE AFFORDABILITY OF THE HIGHLY EFFICIENT POWER GENERATION.

IN THIS GRAPH WE CAN SEE FPUA RANKS AMONG THE OTHER 13 PARTICIPANTS, OUR SEPTEMBER RATE IN YELLOW IS 108.

84, AND UTILITIES RANKED AS THE FIFTH LOWEST UTILITY RATE IN THIS GROUP. ALSO PRESENTED IN THIS COMPARISON BY THE BLUE BAR IS THE RELATIVE POSITION FPUA WOULD HOLD WITH THE ADDITIONAL $2 WILL WATT PER HOUR PCUA DECREASE WHICH WENT INTO EFFECT ON DECEMBER 1ST.

COMPARISON FOR THE 1,000-KILOWATT HOURS BUT INCLUDES ALL OF THE MUNICIPAL UTILITIES IN THE STATE.

THE DATA FROM THE GRAPHS HAS BEEN COMFILED BY FLORIDA MUNICIPAL ELECTRIC ASSOCIATION. THE LEVEL OF CONSUMPTION SHOWN IN YELLOW AT 10884 THAT IMPROVED OUR STANDING AMONG OTHER MUNICIPALITIES BY THREE POSITIONS.

WE'VE IMPROVED THREE POSITIONS SINCE THE AUGUST PRESENTATION.

SEPTEMBER BROUGHT A LOT OF RATE DECREASED AMONGST THE UTILITIES.

THERE WERE MORE THAN HALF OF THE ALL REQUIREMENTS PARTICIPANTS AND ABOUT A THIRD OF ALL OF THE MUNICIPAL UTILITIES HAD RATE DECREASES. THE OVERALL EFFECT WERE OF COURSE DECREASES IN THE AVERAGES FOR THE ARP, AND MUNICIPAL UTILITIES AND FORT PIERCE IS BELOW BOTH OF THESE AVERAGES IN ADDITION TO BEING BELOW THE INVEST YOUR OWN AVERAGE BILL FOR SEPTEMBER. AGAIN, THE BLUE BAR SHOWS WHERE OUR DID HE SOUR DECEMBER RATE WT 10684.

THIS GRAPH HERE IS PRESENTS A SIMILAR COMPARISON FOR 2500-KILOWATT HOURS PER CONSUMPTION, IN THIS COMPARISON FORT PIERCE UTILITIES AT $274.80 HAS IMPROVED BY TWO POSITIONS SINCE LAST MONTH. THE AVERAGES FOR THIS LEVEL OF CONSUMPTION FOR ALL THREE OF THESE GROUPS HAVE THE -- REFLECT THE SAME CHANGES AS WERE SHOWN FOR THE 1,000-KILOWATT HOURS,

[00:25:03]

AND FORT PIERCE UTILITIES BILL FOR SEPTEMBER FALLS BELOW THE AVERAGE FOR THE ALL-REQUIREMENTS AND FOR THE INVESTOR-OWNED, AND IS JUST WITHIN LESS THAN A DOLLAR DIFFERENCE FROM THE MUNICIPAL AVERAGE AT $273.90. AND AGAIN HERE FOR 2500-KILOWATT HOURS YOU CAN SEE THE IMPACT THE DECEMBER APPROVED RATE DREANGS THAT WENT INTO EFFECT THIS WEEK IN DECEMBER.

THIS TABLE HERE WE HAVE DISPLAYED BEFORE YOU IS THE AVERAGE RESIDENTIAL UTILITY BILLS ON THE TREASURE COAST.

THE COMPARISON INCLUDES ALL OF THE ELECTRIC WATER AND WASTEWATER SERVICES THAT A RESIDENTIAL CUSTOMER WOULD EXPERIENCE IF THEY LIVED IN ONE OF THESE MUNICIPALITIES OR SERVICE TERRITORIES. THE FIGURES INCLUDE ALL APPLICABLE TAXES AND FEES AND HAVE BEEN VERIFIED TO ACTUAL BILLS. IN THIS COMPARISON THE ELECTRIC SERVICES PROVIDED -- ARE PROVIDED BY FP & L FOR ALL OF THESE MUNICIPALITIES SHOWN WITH THE EXCEPTION OF THE FIRST FORT PIERCE COLUMN, AND THAT IS OUR INSIDE CITY WHICH ARE OUR RATES.

THE ONLY CHANGE SINCE THE AUGUST PRESENTATION WAS A DECREASE IN THE ELECTRIC FOR THE UTILITIES WITH OUR DECREASE IN SEPTEMBER.

ALL THE OTHER BILLS HAVE REMAINED UNCHANGED.

ONLY. IF THERE IS ANY DISCUSSION, THERE IS NO ACTION ON YOUR PART. IF THERE IS DISCUSSION I WOULD BE HAPPY TO TRY TO ATTEMPT TO ANSWER THEM OR GET INFORMATION

FOR YOU. >> I HAVE A QUESTION.

MR. TOMPECK, I THINK I'VE ASKED THEM BEFORE BUT I CAN'T REMEMBER THE ANSWER. IT SEEMS LIKE THE PEOPLE THAT ARE IN ALL REQUIREMENTS PROJECT END UP PAYING KIND OF LIKE A PREMIUM. VERSUS THOSE THAT ARE NOT IN THE ALL-REQUIREMENTS PROGRAM. WITHIN -- OWNED UTILITIES.

>> WITHIN FOUN FMPA YOU'RE TALKG ABOUT?

>> IF YOU LOOK AT THESE GRAPHS IF WE'RE IN WITH THE ALL-REQUIREMENTS PROJECT WE'RE FURTHER DOWN AND THERE IS FEWER OF THE RED -- WHICH IS THE SYMBOL FOR ALL-REQUIREMENT PROJECT. SO IT SEEMS LIKE IF YOU'RE NOT IN ALL-REQUIREMENT PROJECT, THEN YOU HAVE A BETTER CHANCE OF

HAVING A LOWER RATE. >> I THINK IF YOU LOOK AT THE OVERALL GRAPH WHICH HAS NOT ONLY THE FMPA MEMBERS AND ALL REQUIREMENTS MEMBERS BUT HAS ALL THE UTILITIES IN THE STATE YOU'LL SEE THAT WE'RE STILL IN PRETTY GOOD SHAPE.

WE'RE NOT PAYING ANY CO. A PREMIUM TO BE IN THE ALL-REQUIREMENTS PROJECT IF THAT'S --

>> I'M NOT SAYING WE'RE PAYING A PREMIUM, I'M SAYING IF YOU'RE IN ALL-REQUIREMENTS PROJECT YOU END UP HAVING HIGHER COSTS.

>> OKAY, AND I -- >> NO.

>> NO, I DON'T THINK SO, NO. BUT IF YOU LIKE I CAN WRITE SOMETHING UP TO GIVE YOU MORE DETAIL ON THAT.

>> YOU DON'T HAVE TO, WHEN YOU LOOK AT US LIKE WE'RE NUMBER 6 WHEN WE'RE ALL THE REDS BUT WHEN WE'RE IN ALL-REQUIREMENT PROJECT YOU ONLY SEE FOUR OF THE PEOPLE WITH ALL-REQUIREMENT PROJECT COMPARED TO EVERYBODY ELSE WHO IS NOT IN ALL-REQUIREMENT PROJECT. LIKE LOOKING AT THIS GRAPH RIGHT

NOW. >> OKAY.

>> ALL THE REDS ARE OVER TO MY RIGHT.

>> RIGHT, AND ONCE AGAIN YOU LOOK AT THE -- YOU HAVE A KEY WEST WHICH IS IN ALL-REQUIREMENTS PROJECT MEMBER AND THEY'RE THE HIGHEST IN THE STATE.

YOU HAVE A GAINESVILLE WHO IS NOT AN ALL-REQUIREMENTS PROJECT AND THEY'RE SECOND HIGHEST IN THE STATE.

AND I THINK YOU HAVE KIND OF A MIX THERE, BUT I SEE WHAT YOU'RE THINKING ABOUT YOU SEE A LOT OF THE RED BARS TO THE RIGHT OF US, AND YOU KNOW I THINK THAT'S NOT NECESSARILY A TREND.

IT JUST HAPPENED TO BE THAT WAY RIGHT NOW.

AND OF COURSE EACH ONE OF THE MEMBERS HAS THE OPPORTUNITY TO CONTROL THEIR -- THEIR CONTROLLABLE COST RATHER THAN THE $79.52 RATE OBVIOUSLY THERE IS COSTS ON TOP OF THAT WHICH WE CHARGE, AND WE'VE BEEN ABLE TO KEEP THOSE AS CONTROLLABLE AS

POSSIBLE. >> MADAM CHAIR, BUT WHEN YOU'RE IN ALL-REQUIREMENTS, THIS IS AN ELEMENTARY THING RIGHT, YOU OWN A BIGGER PIECE OF THE ACTION, RIGHT? YOU'RE A BIGGER CONTRIBUTOR TO THE ACTION, RIGHT?

THAN THE OTHER COMPANIES. >> I'M NOT SURE I UNDERSTAND WHAT YOU MEAN BY BIGGER CONTRIBUTOR.

>> WHAT DOES ALL-REQUIREMENT MEAN.

[00:30:01]

>> IT MEANS IF YOU'RE A MEMBER OF THE ALL-REQUIREMENTS PROJECT YOU TAKE ALL YOUR POWER FROM FMPA, AND THAT'S A COMBINATION OF FMPA GENERATION, IT'S -- IT INCLUDES WE HAVE A STAKE IN STANTON, WE HAVE A STAKE IN ST. LUCY, SO ALL THOSE COSTS, OF COURSE ST. LUCIE IS AN EXCLUDED RESOURCE, BUT WE HAVE TO TAKE THAT POWER, AND THAT POWER IS PRICED DIFFERENT THAN THE OTHER POWER. ALTHOUGH WITH THE NUCLEAR POWER

IS PRICED VERY WELL. >> ALL RIGHT, AND ARE WE NOT --

THAT'S ALSO COAL, CORRECT. >> STANTON IS COAL, YES.

>> RIGHT, AND IS THAT HIGHER OR LOWER.

>> I THINK RIGHT NOW IT'S A LITTLE BIT HIGHER BUT IT REALLY DEPENDS ON THE PRICE OF NATURAL GAS.

SOMETIMES NATURAL GAS SWINGS A LITTLE BIT HIGHER THEN THEY'LL TAKE MORE POWER FROM THE COAL UNITS.

>> THE REASON I'M ASKING IT SEEMS LIKE A FEW YEARS BACK, IT'S BEEN SOME NUMBER OF YEARS, BUT THERE WAS A GUY HERE AND THEY PRESENTED US WITH ALL KINDS OF DATA, AND IT LOOKED LIKE THE COAL PLANTS, EVEN AFTER THEY WERE COMPLETELY PAID FOR WERE

NOT GOING TO CASH FLOW. >> WELL THE -- IF YOU RECALL WHEN THEY DID THE VERO BEACH SALE PART OF THE MONEY FMPA GOT FOR THE VERO BEACH SALE WAS TO OFFSET ANY OF THE ADDITIONAL COST BY TAKING MORE OF THE COAL UNITS, AND SO EVERY MONTH THEY TAKE AN ALLOWANCE OUT OF THAT. I THINK IT WAS LIKE 3 31-$32 MILLION, AND THEY'RE WORKING THAT NUMBER, BUT THAT WILL TURN AROUND BECAUSE MOST OF THAT IS BECAUSE OF THE DEBT THAT'S OWED ON STANTON AND THAT DEBT WILL BE RETIRED IN THE NEXT FEW YEARS AND IT WILL BE A LOT MORE EQUAL.

IT'S NOT THE COST OF FUEL THAT'S DRIVING THE PRICE OF ELECTRICITY

FROM STANTON, IT'S THEIR DEBT. >> ALL RIGHT.

WELL THANK YOU VERY MUCH. CLEAR AS MUD.

>> WELL I'LL GIVE IT A BETTER TRY.

>> ALL RIGHT. IS THERE ANYTHING ELSE YOU WOULD LIKE TO SEE PRESENTED? WE PRESENT THE SAME

INFORMATION -- >> IT WAS MORE -- I NEEDED AN EDUCATION ON THE ALL-REQUIREMENTS PROJECT.

>> YEAH, SAME HERE. >> OKAY.

>> AND CAN WE GET OUT OF ALL-REQUIREMENTS PROJECT.

>> WELL --

IT WILL TAKE A WHILE. >> IT'S KIND OF LIKE VERO

LEAVING. >> YES, REMEMBER, VERO OPTED OUT OF THE FMPA, YOU CAN OPT OUT BUT IT WOULDN'T SAVE US ANY MONEY.

>> I THINK TOO YOU NEED TO TELL US WHAT THE BENEFITS ARE, VERSUS

THE OTHER COMPANIES -- >> IT'S A MOOT POINT BECAUSE WE

CAN'T GET OUT ANYWAY. >> WELL, WISHFUL THINKING.

>> WELL THE DIFFERENCE IS WE KNOW WHERE OUR POWER IS COMING FROM AND WE KNOW THE COST OF THE POWER IS FROM.

IF YOU'RE NOT IN THE ALL-REQUIREMENTS PROJECT YOU HAVE A DIFFERENT WAY OF GETTING YOUR POWER.

YOU MAY HAVE A PURCHASE POWER AGREEMENT TO GET POWER TO YOU.

DEPENDING ON WHETHER THAT'S PRICED IS WHETHER YOU'RE HIGHER OR LOWER. WE HAVE SOME --

>> IT'S SORT OF A MONOPOLY THE OTHER WAY.

>> IT IS. AND SOME OF THE NONALL-REQUIREMENT PROJECT MEMBERS IN FMPA DO BUY POWER

FROM FMPA. >> RIGHT.

>> IF WE HAVE EXCESS POWER WE'VE WORKED OUT AGREEMENTS WITH SOME OF THEM TO SELL THEM POWER. AND OF COURSE ANY TIME YOU CAN SELL EXCESS POWER IT'S GOING TO REDUCE OUR BILL.

>> RIGHT OUR COSTS. BUT THEY'RE STILL MEMBERS.

>> YES, STILL MEMBERS. >> SO WHAT DOES MEMBERSHIP GET FOR THEM IF THEY'RE NOT ALL-REQUIREMENTS.

>> WELL I MEAN THEY'RE PART OF THE ORGANIZATION, AND THEY PARTICIPATE IN SOME OF THE OTHER PROJECTION THAT AREN'T NECESSARILY PART OF THE ALL-REQUIREMENTS PROJECT.

SOME OF THOSE MEMBERS PARTICIPATE IN THE ST. LUCIE PROJECT OR PARTICIPATE IN THE STANTON PROJECT.

PARTICIPATE IN TRI-SETS, WE HAVE A BUNCH OF OTHER PROJECTS THEY MAY PARTICIPATE IN. MORE RECENTLY THEY HAVE PARTICIPATED IN THE SOLAR PROJECTS.

THEY'RE JUST NOT PART OF THE ALL-REQUIREMENTS PROJECT IN TERMS OF TAKING ALL THEIR POWER FROM FMPA.

>> OKAY. >> YES SIR?

>> I JUST WENT THROUGH QUICKLY ON THE NON-ARP CITIES AND COMPARED THAT TO OUR $108.84. WE'RE LOWER THAN NINE, AND -- OR TEN -- EXCUSE ME LOWER THAN NINE AND HIGHER THAN TEN.

[00:35:02]

SO 50/50 SPLIT. AND THE AVERAGES IS BEYOND MY

CAPABILITIES SITTING HERE. >> ALL RIGHT, NEXT ITEM.

[Item G7]

>> NEXT ITEM IS STATUE PORT ON PCA FOR OCTOBER 2019, AND BARBARA AND MICHAEL WILL MAKE THE PRESENTATION.

>> >> THANK YOU AGAIN.

AND I HAVE HERE TO PRESENT TO YOU TO PROVIDE YOU THE INFORMATION ABOUT THE OCTOBER POWER COSTS AND THE UPDATED PROJECTIONS THROUGH OCTOBER 2020.

AS YOU'RE AWARE THE POWER COST JUDGMENT OR PCA IS THE MECHANISM BY WHICH FORT PIERCE UTILITIES RECOVERS POWER COSTS THAT ARE IN EXCESS OF THE $79.52 BASE COVER RATE WHICH IS INCLUDED IN OUR RATE. THE COST PURCHASE FOR THE MONTH OF OCTOBER WAS BUILD TO F FPUA AT A RATE OF $63.36 FOR 1,000-KILOWATT HOURS. IN THIS -- THIS IS AN INCREASE OF $3.42 AS COMPARED TO THE BILGE FOR SEPTEMBER.

THE OVERRECOVERY FROM THE CUSTOMER FOR THE MONTH OF OCTOBER, TOTALED $148,160. THE CUMULATIVE RECOVERY AS OF OCTOBER 31ST, 2019 WAS ALMOST $4.8 MILLION.

IN THIS CHART THE BARS DEPICT -- THE BARS GOING UP AND DOWN DEPICT THE BALANCE OF THE PCA OVERRECOVERY, AND THE DARK BLUE LINE WHICH GOES ACROSS REPRESENTS THE PCA.

THE PCA FOR OCTOBER AND NOVEMBER IS AT A NEGATIVE $8 PER KILOWATT HOUR, AND YOU CAN SEE IT FALLING OFF TO THE NEGATIVE $10 IN DECEMBER HERE EFFECTIVE WITH THE DECEMBER 1ST DECREASE.

THE BLUE BARS REPRESENT ACTUAL AMOUNTS THAT ARE OVERRECOVERED WHILE THE ORANGE BARS DEPICT WHAT THE OVERRECOVERY WOULD BE IF PROJECTIONS ARE CORRECT. THESE PROJECTIONS ARE PREPARED BY FINANCIAL CONSULTANTS WHICH ARE IN TURN BASED ON PROJECTIONS THAT ARE PRAIRPD BY FLORIDA MUNICIPAL POWER AGENCY.

SINCE THE SEPTEMBER FORECAST FMPA'S ESTIMATE OF THE COST OF PURCHASE POWER FOR THE UPCOMING 12 MONTHS HAS DECREASED BY TWO-TENTHS OF A PERCENT, SO NOT VERY MUCH.

DUE TO THE CUMULATIVE OVERRECOVERY FROM FPOA'S CUSTOMERS NO CHANGE TO THE JUDGMENT IS RECOMMENDED AT THIS TIME. THIS ITEM IS FOR YOUR INFORMATION, AND REQUIRES NO ACTION ON YOUR PART.

IF YOU HAVE ANY QUESTIONS I CAN ADDRESS THEM.

>> SO MADAM CHAIR, WE'RE AT 4.7 MILLION OVER RECOVERY, SOMETHING LIKE THAT IS WHAT IS OUR POLICY FOR OVERRECOVERY AND

UNDERRECOVERY? >> $5 MILLION.

>> NORMALLY $5 MILLION. >> BUT WE'RE GOING DOWN NEXT

MONTH TO 10, NEGATIVE 10. >> THIS MONTH ACTUALLY THIS

WEEK. >> WE'RE GETTING CLOSE TO OUR LINE, RIGHT? SO --

>> THE PROJECTIONS ARE LOOKING LIKE IT WILL TREND THAT WAY COME I GUESS AROUND MARCH, MAY, WE'RE GETTING CLOSER.

BUT THEN THE PROJECTIONS ARE UPDATED EACH MONTH SO WE'LL SEE

AS WE MOVE FORWARD. >> I GUESS WHAT I'M ASKING IS THERE A CHANCE TO LOWER THE PCA EVEN MORE?

>> THE ANSWER IS YES. I THINK WE LIKE TO WAIT ANOTHER MONTH OR TWO TO SEE HOW IT COMES OUT.

THE OTHER THING I THINK WE MAY NEED TO START THINKING ABOUT AND IT'S NOT SOMETHING I NECESSARILY WANT TO BRING UP, BUT WE'VE BEEN RUNNING AT A NEGATIVE PCA FOR WELL SINCE MARCH OR APRIL OF 2018. AND IT MAY BE TIME TO CONSIDER PUTTING SOME OF THE PCA BACK INTO THE RATE, SIMILAR TO WHAT WE DID SEVERAL YEARS AGO. IT'S A TORTUROUS PROCESS, BUT RIGHT NOW WE'VE BEEN OVER A YEAR, ALMOST TWO YEARS OF PAYING DISTRIBUTION ON MONEY WE'RE NOT RECEIVING SO WE MAY WANT TO TAKE A LOOK AT THAT IN THE NEAR FUTURE.

>> OKAY. ALL RIGHT.

[Items L & M ]

[00:40:04]

>> MR. TOMPECK. >> I HAVE NO FURTHER COMMENTS

TONIGHT. >> MR. KOBLEGARD.

>> IF I COULD ASK THE MAYOR HAVE THEY THOUGHT MORE ABOUT THE MEETING WITH THE COUNTY ON REGIONIZATION AND YOUR AN

EXQUESTIONS. >> JOINT MEETING WITH THE COUNTY? >

>> COMM. KOBLEGARD: HAVE YOU ALL THOUGHT ANYMORE ABOUT THAT?

>> MAYOR HUDSON: ON THE REGIONIZATION OR ANNEXATION?

>> COMM. KOBLEGARD: YOU SENT THEM SOMETHING ABOUT ANNEXATION IN THE CANAL, AND THEY CAME BACK AND SAID YES WE'LL TALK ABOUT THAT WE WANT TO TALK ABOUT REGIONIZATION TOO.

>> MAYOR HUDSON: NO THEY DIDN'T SAY THEY WANTED TO TALK ABOUT ANNEXATION, THEY SAID THEY WANTED TO TALK ABOUT

RENALLIZATION. >> COMM. KOBLEGARD: I DON'T RENALLIZATION I DON'T THINK WE HAVE ANYTHING ON THE HORIZON BECAUSE THEY'RE NOT INTERESTED WHAT WE'RE DOING NOW IS ONE AT A TIME SO LAST NIGHT WE DID 28 ANNEXATIONS UP AND MANY OF THEM UP IN THE NOT PINEWOOD, PARADISE PARK AREA.

AND THAT WAS THE AREA THAT WE HAD IDENTIFIED THAT WE WANTED TO TAKE AS A BULK, WHICH IS NORTH OF AVENUE P, AND EAST OF 25TH AND SOUTH OF SAINT LUCIE BOULEVARD.

WE HAD IDENTIFIED THAT TO THE COUNTY AND SAID WE HAD WANTED TO TAKE THAT WHOLE SWATH. BUT THE COUNTY HAD ABSOLUTELY NO INTEREST IN DOING THAT, AND I DON'T KNOW HAVE YOU HEARD

ANYTHING MORE THAN I HAVE IN. >> NO, MA'AM.

>> MAYOR HUDSON: SO WHAT WE DECIDED TO DO IS WE'RE NOT TAKING THAT OFF THE TABLE BUT WE'RE JUST GOING TO DO ANNEXATIONS ONE AT A TIME WHEN THEY HAVE AGREEMENTS.

>> COMM. KOBLEGARD: WE'RE STAYING BUSY.

PROCESSING THE ANNEXATION AGREEMENTS.

>> MAYOR HUDSON: RIGHT, AND WE'RE GOING TO TRY TO KEEP IT

UP. >> COMM. KOBLEGARD: THEY'RE

REALLY COMING UP. >> MAYOR HUDSON: WE'RE GOING TO TRY TO DO IT ON A REGULAR WAS IN A KIND OF STRATEGIC BASIS, SO SINCE WE COULDN'T DO IT THAT WAY WE'RE GOING TO DO IT THIS WAY.

>> MADAM CHAIR, WHAT HAS SPURRED THIS RECENT ANNEXATION ACTIVITY?

WHAT'S BEEN THE CAUSE? >> MAYOR HUDSON: ACTUALLY WE WERE ALWAYS INTERESTED IN ANNEXATION, BUT WE -- FOR A DIFFERENT REASONS, FOR DIFFERENT STAFFING REASONS AND DIFFERENT STRATEGIES WE'VE NOW KIND OF GOT IT BACK ON TRACK, AND WE SHOULD

HAVE BEEN DOING IT ALL ALONG. >> OKAY.

>> MAYOR HUDSON: AND I DON'T KNOW CAN YOU ADD TO THAT?

>> YES, SIR. MR. BEY, I THINK FROM A CITY PERSPECTIVE WE'RE ALWAYS TRYING TO SQUARE OFF OUR BOUNDARIES SO WE CAN DELIVER OUR SERVICES WITHOUT INCONSISTENCY.

S IN ORDER TO SQUARE OFF THE PROPERTIES, AND THEY HAVE A -- WE ARE TRYING TO AN EXTHEM, COMMERCIAL, INSTITUTION, RELEASE, WE ARE MOVING FORWARD WITH THE ANNEXATION POLICIES.

THE ANTI- WE PROPOSED TO SAINT LUCIE WAS CONVOLUTED BY ADDING THE REGIONIZATION OF UTILITIES AND NOW THAT DISCUSSION HAS CREASED. SO I DON'T KNOW WHAT'S GOING ON SO WE ARE GOING TO MOVE FORWARD WITH OUR ANNEXATION JUST AS WE HAVE IN RECENT YEARS AND WE'RE GOING TO PUSH AHEAD AND TRY TO SQUARE OFF OUR BOUNDARIES. IT WILL BE A SLOWER PROCESS BUT

IT IS AN EFFICIENT PROCESS. >> COMM. BEY: THANK YOU.

>> YES, SIR. >> CAN I SAY ONE THING? I CHANGED THE TERMINOLOGY IN ANNEXATION AGREEMENTS.

IT USED TO BE JUST FOR THE LOCATION THEY WERE REQUESTING WATER OR SEWER IN. I CHANGED IT TO WHERE THEY SAY THAT PARCEL THAT YOU'RE ASKING ABOUT TOGETHER WITH ANYTHING CONTINUOUS THERE TOO BOTH NOW AND IN THE FUTURE, NOW I DON'T CHECK ON THAT BUT IT MIGHT PAY FOR THE CITY TO LOOK INTO THAT SOMETIME BECAUSE THAT YOU MAY HAVE ALREADY GROWN FROM THAT ONE AGREEMENT TO AREAS AROUND IT. (KOBLEGARD SPEAKING).

>> MAYOR HUDSON: WHEN DID YOU CHANGE THAT.

>> COMM. KOBLEGARD: ABOUT A YEAR AGO.

I RAP IT BY THE CITY ATTORNEY AT THE TIME AND HE SAID I THINK

IT'S A GOOD IDEA SO WE DID IT. >> MAYOR HUDSON: OKAY.

THAT'S A GOOD IDEA. WE'LL CHECK INTO THAT.

>> OKAY. >> MAYOR HUDSON: ANYTHING ELSE?

YES SIR? >> MADAM CHAIR, THE CITY OF FORT PIERCE IN CONJUNCTION WITH THE -- COUNTY EOC IS HAPPY TO

[00:45:02]

NONOTIFY THERE IS A KOLGD WEATHR SHELTER THAT WILL BE OPEN TONIGHT FROM 4:00 P.M.-8:00 P.M. AT THE "IN THE IMAGE OF CHRIST" FACILITY, 707 NORTH 7TH STREET, AND WILL BE OPEN FOR PM WEDNESDAY THROUGH 8 A.M. THURSDAY TO PROVIDE COLD WEATHER

SHELTER FOR OUR RESIDENTS. >> MAYOR HUDSON: THANK YOU.

>> MADAM CHAIR, IS THAT THE OLD HOSPITAL AREA?

>> YES IT IS. >> MAYOR HUDSON: ANY COMMENTS

FROM BOARD MEMBERS. >> I WOULD LIKE TO CONGRATULATE JASON MITTLER ON HIS NEW POSITION.

GOOD JOB.

* This transcript was compiled from uncorrected Closed Captioning.