AGENDA MEMORANDUM

Meeting Date:           October 8, 2007

From:                          Paul Kalv, Electric Director

Subject:                      Resolution approving Procedures for Implementation of the PURPA Standards enunciated in Subtitle E of the Electricity Modernization Act of 2005

Staff Recommendation:

Staff recommends adoption of the “PURPA Procedures” solely for purposes of complying with the Energy Policy Act of 2005 during the proceedings conducted by the City Commission for the consideration and determination of whether to adopt the five standards enunciated in Subtitle E of the Electricity Modernization Act of 2005.

Analysis:

In 1978, the Public Utility Regulatory Policies Act (PURPA) became law and among other provisions, required each nonregulated utility to consider a list of standards aimed at energy conservation, efficient use of facilities and resources, and equitable rates.

The Energy Policy Act of 2005 adds five additional PURPA standards that nonregulated utilities must consider.  These include (1) net metering; (2) fuel diversity; (3) fossil fuel generation efficiency; (4) time based metering and communications; and (5) interconnection standards for distributed resources.

Each nonregulated utility must make its own independent determination of the new PURPA standards.  The City Commission must therefore consider and make a specific determination on whether implementation of the federal standards is appropriate to carry out the purposes of PURPA.

In considering the new PURPA standards, the Commission must comply with both the procedural requirements of PURPA and any particular hearing requirements established by the Commission.   

These “PURPA Procedures” comply with both the procedural requirements of PURPA and the hearing requirements established by the Commission.

Options:

1.  Adopt the PURPA Procedures

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact:  None

Submission Date and Time:    10/5/2007 4:44 PM10/4/2007 11:18 AM____

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

Reviewed by: Dept. Head _Paul Kalv Finance  Dept. __________________                                     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 TO ADOPT THE "PURPA PROCEDURES" FOR THE PURPOSE OF COMPLYING WITH THE ENERGY POLICY ACT OF  2005; AND PROVIDING AN EFFECTIVE DATE.

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

            THAT the City Commission hereby adopts    the “PURPA Procedures” solely for purposes of complying with the Energy Policy Act of 2005 during the proceedings conducted by the City Commission for the consideration and determination of whether to adopt the five standards enunciated in Subtitle E of the Electricity Modernization Act of 2005.

 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 __8th___ day of __ October_______ 2007.

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk