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ATTORNEY COLLINS STATED THAT IN GOING OVER THIS MATTER <br />WITH THE BOARD PREVIOUSLY, ONE STATEMENT HE MADE WAS INCORRECT. HE <br />HAD SAID THAT IN THOSE COUNTIES THAT DO NOT ASSESS A FRANCHISE FEE, <br />FLORIDA POWER & LIGHT BENEFITED BY THAT MARGIN DIRECTLY AND THAT <br />STATEMENT NEEDS TO BE MODIFIED BECAUSE FP&L, ALTHOUGH THEY PROVIDE <br />IN THEIR RATE SCHEDULE FOR A FRANCHISE FEE IN THE COUNTIES WHERE <br />THEY ARE NOT ASSESSED,THE SAME MONIES ARE USED TO PAY FRANCHISE <br />FEES IN OTHER COUNTIES AND THE MONEY DOES NOT NECESSARILY GO INTO <br />THE COFFERS OF THE COMPANY. THE ATTORNEY INFORMED THE BOARD THAT <br />HE HAS SUGGESTED ONE CHANGE IN THE PROPOSED RESOLUTION. THIS CHANGE, <br />WHICH FP&L HAS AGREED TO, IS IN SECTION 9 AND CHANGES "LOCAL GOVERN- <br />MENTAL ENTITY" TO "COUNTY." <br />TED BLOUNT OF FLORIDA POWER & LIGHT LEGAL AFFAIRS WAS PRE- <br />SENT WITH HARRY SCHINDEHITTE, DISTRICT MANAGER. MR. BLOUNT INFORMED <br />THE BOARD THAT THE PUBLIC SERVICE COMMISSION VOTED ON MONDAY TO OPEN <br />A DOCKET ON THE QUESTION OF WHETHER OR NOT THE METHOD OF CHARGING <br />FRANCHISE EXPENSES TO FP&L CUSTOMERS SHOULD BE CHANGED. MR. BLOUNT <br />EXPLAINED THAT AT THE PRESENT TIME FP&L HAS OVER 160 FRANCHISES. <br />THE FEES THAT THEY PAY REPRESENT A CERTAIN OPERATING EXPENSE, AND <br />3.7o OF THE AMOUNT BILLED EACH CUSTOMER REPRESENTS THEIR FRANCHISE <br />EXPENSE. HE STATED THAT THE PSC IS CONSIDERING CHANGING THAT METHOD <br />SO THAT RATHER THAN EACH CUSTOMER PAYING 3.7% THROUGHOUT THE ENTIRE <br />FP&L SYSTEM, THE SPECIFIC AMOUNT OF THE FRANCHISE COST IN A FRAN- <br />CHISE AREA WOULD BE PASSED ONTO THE CUSTOMERS IN THAT PARTICULAR <br />AREA, I.E., IN AREAS WHERE NO FRANCHISE EXISTS, THE CUSTOMERS WOULD <br />PAY NO FRANCHISE FEE AT ALL AND IN AREAS WHERE FRANCHISES DO EXIST, <br />THE CUSTOMERS WOULD PAY,THE EXACT AMOUNT OF FP&L'S EXPENSE FOR THAT <br />PARTICULAR FRANCHISE. <br />CHAIRMAN WODTKE ASKED IF THE 3.7% NOW CHARGED EACH CUSTOMER <br />INCLUDES ADMINISTRATIVE COSTS FOR BILLING AND COLLECTING, AND MR. <br />BLOUNT STATED THERE IS NO ADMINISTRATIVE EXPENSE INCLUDED; THAT THE <br />3.7% IS SIMPLY THE TOTAL OF ALL FRANCHISE FEES THEY PAY. <br />COMMISSIONER DEESON ASKED WHEN THEY EXPECT A RULING FROM <br />THE PUBLIC SERVICE COMMISSION. <br />k-1 <br />OCT <br />Box 31 PAGE 295 <br />