FLORIDA KEYS ELECTRIC COOPERATIVE ASSOCIATION, INC.

NOTICE REGARDING CONSIDERATION OF NEW PURPA STANDARDS

Issued as of February 15, 2008

            FLORIDA KEYS ELECTRIC COOPERATIVE ASSOCIATION, INC. (Cooperative) hereby gives public notice regarding the process to be followed by it in implementing the statutory directives in the Energy Policy Act of 2005 (EPAct 2005), which amended the Public Utilities Regulatory Policies Act of 1978 (PURPA).  EPAct 2005 established new Federal standards under Section 111(d) of PURPA, which each non-regulated electric utility (such as the Cooperative) is required to consider and to “make a determination whether or not it is appropriate to implement such standard[s]” within certain defined time lines based on evidence collected from interested persons after public notice and hearing.  The Cooperative began its consideration of the five standards in July of 2006. 

            The five new PURPA standards defined by EPAct 2005 are set forth below.  You may also review the Public Utility Regulatory Policies Act of 1978 as applicable to the Energy Policy Act of 2005 (EPAct 2005) by going to the U.S. Department of Energy’s website for the Office of Electricity Delivery and Energy Reliability:

            http://www.oe.energy.gov/purpa.htm

Any electric consumer on the Cooperative's system (referred to hereinafter as "Eligible Participants") who is unable to post initial comments or reply comments as hereinafter referred to may instead send such comments in writing to the Cooperative by mail at Post Office Box 377, Tavernier, Florida 33070-0377, or by attaching it to an email in Word or WordPerfect format to mail@fkec.com.

1.          Net Metering.  Each electric utility shall make available upon request net metering service to any electric consumer that the electric utility serves.  For purposes of this paragraph, the term “net metering service” means service to an electric consumer under which electric energy generated by that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period.

2.          Fuel Sources.  Each electric utility shall develop a plan to minimize dependence on one (1) fuel source and to ensure that the electric energy it sells to consumers is generated using a diverse range of fuels and technologies, including renewable technologies.

3.          Fossil Fuel Generation Efficiency.  Each electric utility shall develop and implement a ten (10)-year plan to increase the efficiency of its fossil fuel generation.

4.          Time-Based Metering and Communications.  Not later than eighteen (18) months after the date of enactment of this paragraph, each electric utility shall offer each of its customer classes, and provide individual customers upon customer request, a time-based rate schedule under which the rate charged by the electric utility varies during different time periods and reflects the variance, if any, in the utility’s costs of generating and purchasing electricity at the wholesale level.  The time-based rate schedule shall enable the electric consumer to manage energy use and cost through advanced metering and communications technology. [This reflects the opening paragraph of the standard; the second paragraph of the standard lists some of the types of time-based rate schedules that may be offered; and the third paragraph provides that each electric utility subject to the first paragraph shall provide each customer requesting a time-based rate with a time-based meter capable of enabling the utility and customer to offer and receive such rate.  Prior to August 6, 2007, the Board of Directors of FKEC at its regular monthly board meeting held on July 30, 2007, declined to adopt this standard for the reasons expressed by the Florida Public Service Commission in its Order No. PSC-07-0212-PAA-EU entered on May 7, 2007.] 

5.          Interconnection.  Each electric utility shall make available, upon request, interconnection service to any electric consumer that the electric utility serves.  For purposes of this paragraph, the term “interconnection service” means service to an electric consumer under which an on-site generating facility on the consumer’s premises shall be connected to the local distribution facilities.  Interconnection services shall be offered based upon the standards developed by the Institute of Electrical and Electronics Engineers: IEEE Standard 1547 for Interconnecting Distributed Resources with Electric Power Systems, as they may be amended from time to time.  In addition, agreements and procedures shall be established whereby the services are offered shall promote current best practices of interconnection for distributed generation, including but not limited to practices stipulated in model codes adopted by associations of state regulatory agencies.  All such agreements and procedures shall be just and reasonable, and not unduly discriminatory or preferential.  The Cooperative previously adopted this standard prior to the enactment of the EPAct 2005.  

Please note that the Cooperative purchases its full power requirements from Florida Power & Light Company (FP&L) under a long-term full-requirements contract.  For this reason, the Cooperative would not be able to effect certain of the PURPA standards, most notably Standards 2 (Fuel Sources) and 3 (Fossil Fuel Generation Efficiency), and its ability to effect aspects of other standards may be limited as well.  Commenters are urged to take such limitations into account when presenting their views. The Cooperative notes, however, that FP&L follows policies consistent with Standards 2 and 3, which the Cooperative supports.  The Florida Public Service Commission has also noted, following public hearings, that it considers Standards 2 and 3 each time that an investor-owned utility such as FP&L submits its long range plans for capacity with the Commission.

In order for the Cooperative to fully consider the views of the Eligible Participants regarding Standards 1, 2 and 3 so that it may determine whether or not it is appropriate to implement such standards, the Cooperative will follow the procedural schedule set forth below (each component of which is more fully addressed in the ensuing portion of this Notice):

Ø    Notice – to be posted by February 15, 2008

Ø    Initial Comments – to be submitted by March 30, 2008

Ø    Reply Comments – to be submitted by April 15, 2008

Ø    Request To Participate in Public Hearing – to be submitted by April 22, 2008

Ø    Public Hearing – to be held on April 29, 2008, commencing at 9:00 a.m.  (For purposes of this Notice and procedure, the term “Public Hearing” shall mean the meeting of the Cooperative’s members where the members will be able to present their views, information and other evidence regarding the standards.)

Ø    Determination – to be rendered on or before July 31, 2008

Notice.  This Notice is being posted at the Cooperative’s main office in Tavernier, Florida, on its web site.  It also may be posted in newspapers of local circulation.

Initial Comments.  These comments (if possible) should by typed (double spaced) and paginated, with appropriate headings so that the reader will know with specificity which of the three standards (1, 2 and 3) is being addressed.  The comments should identify the name of the commenting party along with the address, telephone number, and (if available) the email address of the commenting party.  The Cooperative requests that at least three copies of the comments be filed at its office at 91605 Overseas Highway, Post Office Box 377, Tavernier, Florida 33070-0377, or alternatively a single copy may be electronically filed at news@fkec.com.  The Cooperative will post all comments submitted on its web site and will make copies of comments available at cost to any Eligible Participant that requests a copy.

Reply Comments.  The purpose of reply comments (which should conform to the format described above for initial comments) is solely to respond to arguments made in another person’s initial comments; therefore, it is important that the person submitting reply comments identify with specificity the initial comment(s) to which it is responding and the points (preferably with page references) in the initial comments which it is addressing.  The filing instructions described above for initial comments should be followed for reply comments.  The Cooperative will post all reply comments on its web site and will make copies of the reply comments available at cost to any Eligible Participant that requests a copy.

Request To Appear at Public Hearing.  Any Eligible Participant that desires to appear and participate in the public hearing should so notify the Cooperative in writing (either by mail at the Cooperative’s office address noted above or by email at the email address noted above).  The notification should indicate at least the following: (i) the name and address of the person requesting to participate; (ii) whether the person filed initial and/or reply comments; (iii) whether the person desires to make an oral presentation and if so, the anticipated length; and (iv) whether any special accommodations need to be made for the presenter.  If no requests to participate in a public hearing are submitted, there will be no hearing (which fact will be noticed on the Cooperative’s web site at least one week before the scheduled hearing), in which case the evidence considered will be the initial and reply comments.

Public Hearing.  The hearing will be held in the Cooperative’s headquarters at 91605 Overseas Highway, Tavernier, Florida 33070, from 8:30 a.m. to 11:30 a.m. on April 29, 2008.  The procedures to be followed at the hearing will depend in part on the number of participants (persons espousing the same position(s) are urged to consolidate their presentations), and will be determined by the presiding officer with the goal of ensuring a full and fair record on the issues.  It is contemplated that the standards can be considered at the meeting, but if that is not the case, then the presiding officer may continue the consideration of the three standards to another date, time and place.  The purpose of the hearing is to collect evidence in addition to that found in the written comments; a person need not participate in the hearing for his/her written comments to be considered.  A summary of the proceeding will be made and will be posted on the Cooperative’s web site and made available to an Eligible Participant at cost.

Determination.  The Determination to be made by the Cooperative as to whether or not it is appropriate to implement any of the three standards will be in writing, will be based on findings supported by the evidence of record, will be posted on the Cooperative’s web site and will be made available for any Eligible Participant at cost. 

Florida Keys Electric Cooperative Association, Inc.

Post Office Box 377

Tavernier, Florida 33070-0377

(305) 852-2431 Voice

(305) 852-4794 Fax