SUBJECT/RECOMMENDATION:
Title
Approve the Third Amendment to Pasco Territorial Agreement; approve the Natural Gas Redefined Territory Financial Agreement in the amount of $659,600; approve the Amended and Restated Natural Gas Service Agreement all with Peoples Gas System; direct Clearwater Gas System, through its legal counsel, to pursue approval of a Joint Petition to the Florida Public Service Commission requesting an amendment to the natural gas territorial agreement between Peoples Gas System and the City of Clearwater, transferring certain natural gas territory in Pasco County to Clearwater Gas, allowing Clearwater Gas to service same, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The following agreements are required to allow Clearwater Gas System (CGS) to serve new residential customers in Pasco County outside of its current territory boundary with Peoples Gas System (PGS). This involves revising CGS’ existing territory boundary with PGS and ultimately having the Florida Public Service Commission (FPSC) approve the territory change.
Third Amendment to Pasco Territorial Agreement: This agreement will expand CGS’s Pasco territory boundary to serve all residential homes within the newly developed “Asturia” subdivision, just north of State Road 54 in Pasco County. After a detailed review, it was discovered that 388 residential lots were officially in PGS territory, which is approximately half of the Asturia subdivision (total of 677 residential lots plus commercial/multi-family parcels). This agreement will expand CGS territory to include the 388 lots that are within the original PGS territory.
Natural Gas Territory Financial Agreement: Since CGS initially had discussions with the builder/developer, PGS agreed that CGS should buy out the residential lots within PGS territory since it was not practical to have two gas utilities serve the same subdivision. CGS has agreed to pay $1,700 per residential lot, which totals $659,600. The agreement also authorizes the construction of an Interconnect with PGS’s distribution gas lines, along State Road 54, for backup supply in the event of a gas outage. This interconnect will have the ability to flow gas in both directions to serve either CGS or PGS.
Amended and Restated Natural Gas Service Agreement: This agreement identifies all existing Interconnects between CGS and PGS, and allows for future interconnects for system reliability. This adds the new interconnect on SR54 at Asturia. It also sets the rate schedule for billing purposes for all interconnects. This agreement allows future interconnects to be added and approved by the CGS Managing Director.
APPROPRIATION CODE AND AMOUNT:
CGS has budgeted funds available in project code 315-96386 (Expanded Energy Conservation).
USE OF RESERVE FUNDS:
N/A