AGENDA MEMORANDUM

Meeting Date:           October 24, 2011

From:                          Paul Kalv, Electric Director

Subject:                      Resolution authorizing an Alternative A&G Methodology Agreement with Florida Power Corporation d/b/a Progress Energy Florida, Inc. (PEF)

Staff Recommendation:

Staff recommends approval of the Alternative A&G Methodology Agreement, dated August 8, 2011 with Florida Power Corporation d/b/a/ Progress Energy Florida.

Analysis:

As a non-operating joint owner of the Crystal River Unit 3 nuclear electric generating unit located in Citrus County, Florida (CR3), Leesburg receives a pro-rata share of the generation output and is responsible for a pro-rata share of all operating costs.  The Alternative A&G Methodology Agreement provides for a methodology for the allocation of A&G expenses assignable to CR3.

On July 25, 2011 the Leesburg Commission authorized an Alternative A&G methodology Agreement dated May 17, 2011.  During the month of July 2011, Seminole Electric Cooperative, Inc. offered several wordsmith changes that were subsequently approved by staff representatives from the CR3 participants.

The revisions do not alter the intent or substance of the Alternative A&G Methodology Agreement and include the following:

                                    From                                                                To

First paragraph:           May 17, 2011                                                  August 8, 2011

                                    City of Ocala d/b/a/ Ocala Electric Utility   City of Ocala

Section 1                     assigns/assigns/assign             assignees/assignees/assignee

Options:

1.  Approve the Alternative A&G Methodology Agreement, or;

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

Ensures proper allocation of CR3 A&G expenses.

Submission Date and Time:    10/18/2011 9:25 AM____

Department: ___Electric_______________ Prepared by:  ___Paul Kalv_____________                      Attachments:         Yes__X__   No _____ Advertised:   ____Not Required __X____ Dates:   __________________________                      Attorney Review :       Yes_X__  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head _Paul Kalv__ Finance  Dept. ______JB__________                                    Deputy C.M. ________   __________                                          Submitted by: City Manager ___________________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________

RESOLUTION NO._______________

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, REPEALING RESOLUTION 8876, APPROVED JULY 25, 2011,  AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN ALTERNATIVE A&G METHODOLOGY AGREEMENT WITH FLORIDA POWER CORPORATION D/B/A PROGRESS ENERGY FLORIDA, INC. (PEF); AND PROVIDING AN EFFECTIVE DATE

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

            THAT Resolution 8876, adopted July 25, 2011 is hereby repealed, and

THAT the Mayor and City Clerk are hereby authorized to execute an Alternative A&G Methodology Agreement with FLORIDA POWER CORPORATION D/B/A Progress Energy Florida, Inc. (PEF)., whose address is ATTN: Barb Afield, 299 1^st Avenue North, PEF 132 Accounting/Regulatory, St. Petersburg, FL 33701.

 THAT this resolution shall become effective immediately.

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the __24th___ day of _       October_____, 2011.

                                                                            __________________________

                                                                             Mayor

ATTEST:

____________________________________

City Clerk