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Belleair referendum: What's at stake
By Times Staff Writer
Published November 6, 2005
HOW IT WORKS NOW:
Transmission lines carry electricity to three distribution substations near Belleair. From there, four circuits feed electricity to the town, and 28 lines wind through Belleair neighborhoods and past town limits.
IF BELLEAIR FORMS ITS OWN UTILITY:
The town would purchase the existing poles, lines and transformers from Progress Energy and would disconnect from a Clearwater substation.
It would separate its power lines at the town limits and reconfigure its remaining two circuits so they feed electricity only to Belleair neighborhoods.
A town consultant has recommended purchasing power in bulk from Progress Energy and contracting with a Tampa-based company called Coastal Electric Maintenance & Construction to operate and maintain the system.
Anticipated start-up costs of the move would be about $9-million, including $690,000 to separate and reconfigure the system to serve just Belleair.
The electric system's first full-year operating costs are projected at $6.35-million.
Town officials anticipate an annual profit of $514,000 the first full year on total revenues of $6.87-million.
Projected profits are based on keeping monthly rates the same as Progress Energy's rates, including charges to replace franchise fees.
Rates would be regulated by town officials.
Source: The town of Belleair's feasibility study and July 2005 update.
PROGRESS ENERGY SAYS:
Town projections reflect a $3.79 per kilowatt-hour base rate increase, but the company has agreed to freeze its base rates through late 2007.
The town's projected wholesale and retail power rates were not calculated correctly.
The combination of incorrect fuel costs and the wrong base rate inflates first-year profits the first year by $559,000.
Town estimates use an incorrect load factor, a ratio that affects the cost of wholesale power, which means that first-year costs are underestimated by $250,000.
The town's feasibility update includes storm cost recovery surcharges, which are fees implemented by Progress Energy to recoup costs from the 2004 hurricane season. The town did not incur those costs, so the study inflates first-year revenue by $117,000.
Town projections exaggerate energy usage, overestimating profits by $58,500.
Progress Energy's rates are regulated by the Florida Public Service Commission.
YOUR VOTE COUNTS: Belleair's referendum on control of the town's power system will be held at Belleair Town Hall, 901 Ponce de Leon Blvd. Polls will be open from 7 a.m. to 7 p.m.
Early voting will be available 8 a.m. to 5 p.m. Monday at these supervisor of elections offices:
St. Petersburg office, 501 First Ave. N.
Election Service Center, 14255 49th St. N, Clearwater.
Pinellas County Courthouse, 315 Court St., Clearwater.
[Last modified November 6, 2005, 01:59:22]
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