title
EYE ASSOCIATES OF GAINESVILLE, LLC AND DEBORAH L. MARTINEZ, PETITIONERS IN RE: PETITION FOR EXPEDITED REVIEW OF ELECTRIC RATE STRUCTURE FOR GAINESVILLE REGIONAL UTILITIES; BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION, DOCKET NO. 130188-EM (B)
recommendation
The City Commission authorize the City Attorney, assisted by special counsel, D. Bruce May, Jr. with Holland & Knight, to represent the City d/b/a Gainesville Regional Utilities in the administrative proceeding before the Florida Public Service Commission styled Eye Associates of Gainesville, LLC and Deborah L. Martinez, In re: Petition for Expedited Review of Electric Rate Structure for Gainesville Regional Utilities, PSC Docket No. 130188-EM
explanation
On July 16, 2013, the City was provided a copy of a petition filed by Eye Associates of Gainesville, LLC and Deborah L. Martinez ("Petitioners") with the Florida Public Service Commission (the "PSC"). Petitioners allege they are commercial and residential customers receiving electric service from Gainesville Regional Utilities ("GRU"). Petitioners state they seek expedited review of the existing and proposed GRU electric rate structure to ensure that the electric rate structure is fair, just, and reasonable, non-discriminatory, allocates the recovery of costs appropriately between the customer classes, and allocates the recovery of costs equitably between members of a customer class. Petitioners request for expedited review is based upon the results of the cost of service study initiated by GRU for consideration by the Gainesville City Commission. On July 16, 2013, the City Commission began a review of the cost of service study and of proposed electric rate structure changes. If any change to the rate structure is approved by the City Commission at its budget hearings, the City Commission must adopt those changes by ordinance which requires additional public hearings. Any new rate structure approved by the Commission would not be effective until October 1, 2013.
Petitioners ask the PSC to take jurisdiction because Petitioners believe that the "Gainesville City Commission lacks the technical and utility regulatory expertise to independently determine whether the existing rate structure and the proposed rate structure addresses the cost of service and rate structure" changes identified by the consultants hired by the City. Petitioners request the PSC open a docket and issue a procedural order establishing a hearing schedule in furtherance of conducting an expedited review of the existing and proposed GRU electric rate structure. The PSC has opened a docket and Representative Keith Perry has filed correspondence in support of the Petitioners request. If the PSC were to exercise jurisdiction over Gainesville's new rate structure, the PSC will hold a public hearing where petitioners can present any evidence they believe relevant to the PSC's decision.
The PSC has discretionary jurisdiction over rate structure issues for municipal utilities. Pursuant to the Florida Administrative Procedures Act, the City will have only 20 days (from the date of assignment of the petition to a presiding officer) to file a motion to dismiss the petition. Because this is a highly specialized area of law, the City Attorney's Office sought special counsel with significant experience practicing electric utility law before the PSC. The City Attorney's Office located three such attorneys, requested quotes and selected Mr. May, as he has considerable recent and relevant experience and also submitted the lowest quote.
. . fiscal note
Funding for the special counsel representation will be paid from GRU budgeted funds