Title
Settlement Agreement Among Florida Progress Corporation (on behalf of itself and Florida Power Corporation), Carolina Power & Light (on behalf of itself and its affiliates) and Florida Cities (B)
EXPLANATION
GRU is a member of Florida Municipal Power Agency (FMPA). One of the benefits of membership in FMPA is the sharing of consulting and legal expenses for Federal Energy Regulatory Commission (F.E.R.C.) related activities and for other activities where the members have a common interest. FMPA currently uses the Washington law firm of Spiegel & McDiarmid for F.E.R.C. related work and through this joint action with FMPA, Spiegel & McDiarmid is representing both GRU, certain other municipalities and FMPA (together the Florida Cities) in this proceeding.
This settlement agreement involves issues arising from the pending merger of Carolina Power and Light (CPL) a public utility predominately operating in South and North Carolina, and Florida Progress Corporation (FPC), the parent corporation of Florida Power Corporation, a public utility generally operating in west Florida. On February 2, 2000, CPL and FPC filed a petition with the F.E.R.C. for approval of the proposed merger. The F.E.R.C.'s procedures allow for impacted parties to intervene in such fillings to raise issues and seek redress of any adverse impacts. However, the F.E.R.C. encourages the participants to negotiate to try and reach agreements to settle their differences prior to formally intervening. GRU participating through its membership in FMPA as part of the Florida Cities has been involved in discussions with CPL and FPC over concerns arising from the proposed merger. The attached settlement agreement is the product of these discussions and achieves mitigation of our concerns at a level equivalent or superior to those we might achieve by intervention at the F.E.R.C.
The merger raises concerns generally for three subsets of members of FMPA, the "All Requirements Project Participants" m...
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