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VERO BEACH ELECTRIC UTILITY <br />NOTES <br />See attached revised capacity <br />price table; Savings values <br />represent actual savings (annual <br />basis) vs. existing PPA capacity <br />payments. <br />Actual savings will depend on <br />costs to keep COVBPP <br />operational (or of procuring <br />alternate capacity), also on <br />timing of decommissioning <br />COVBPP. <br />Savings result from reducing <br />capacity of COVBPP. <br />Finance and Utility Commissions <br />both recommended continue <br />current practice until Rate <br />Consultant completes 2015 Rate <br />Study — anticipated March -April <br />2015. <br />Optimization Study; Council Actual savings will depend on <br />decisions. actual measures identified by <br />Optimization Study, and Council <br />decisions regarding <br />implementation. <br />NECESSARY <br />PRE -CONDITIONS <br />1. FPL consent (no breach of FPL- <br />COVB contract) <br />2. Transmission for Peaking <br />Capacity in place <br />ai <br />> <br />0 <br />co <br />as <br />a) <br />E <br />ra <br />in <br />t) <br />Same as above. <br />Preferable to have 2015 Rate Study <br />completed first; Council decision. <br />W <br />z <br />1- <br />Upon effectiveness of <br />Amended PPA <br />Upon effectiveness of <br />Amended PPA <br />Upon effectiveness of <br />, Amended PPA <br />Could be implemented <br />starting in mid -2015; <br />requires Council <br />decision. <br />After Optimization <br />Study is complete <br />(estimated to be by June <br />2015); requires Council <br />decisions. <br />ACTUAL/POTENTIAL <br />SAVINGS <br />Approx. $7MM/year in <br />Years 1-3, declining to $4- <br />4.5MM/year <br />Unknown, depending on <br />otherwise applicable costs <br />to keep COVBPP operational <br />$150K/year <br />First year $2.7MM/year; <br />average over first 5 years <br />approx. $1.5-2.0MM/year <br />Unknown <br />MEASURE <br />Amend OUC PPA -Base <br />Capacity <br />Retire COVB Power Plant <br />and Replace with Peaking <br />Capacity from OUC <br />Reduced NERC <br />Compliance Costs <br />Finance T&D Capital <br />Expenditures with Debt <br />Other — Outsourcing, <br />cost/management <br />optimization measures, <br />potential customer <br />service cost reductions, <br />technology <br />improvements, etc. <br />O <br />Y <br />E <br />0 <br />U <br />V1 <br />a) <br />> <br />a) <br />CO <br />L <br />Y <br />3 <br />o N <br />vi to L <br />N <br />O <br />� V( T3 <br />> c6 to C <br />• -c c <br />o L v <br />. fl_ U <br />up •ate+ c <br />= L O <br />-0 CL O 4- <br />a) CO U CO <br />V) C.) (a w <br />to 4 fa <br />.0 c. <br />Y i- <br />, L <br />4a) 03 a) > Q. <br />c a 0> <br />(La 0 c v <br />+, 44, O rp <br />-O cC11-D a <br />c . c (a <br />z a! a) U <br />LL v 0b1)" <br />CU c <br />pa fa ts .Y <br />fa <br />11) > '> a) <br />a) 0. <br />C7 Ov a) 0 <br />-o 0 0 w <br />0 v <br />'O .aV) (1)) U- N <br />CU "�-O E <br />a) <br />vCi +-, 0A <br />COc <br />• v M <br />(n (a L <br />a) V) 3 n: <br />L C +, C <br />O.� coo O <br />N +,,4 ' V) <br />CO = O in <br />= � E <br />3 a) c <br />v) v E eueu <br />H .1-- U +- <br />O0 <br />0. ; O. <br />C > O v) <br />in <br />c (a fa c <br />O Q. -O v <br />.,-.. (a a) > <br />✓ V C CI <br />• COM Q <br />N M <br />V) <br />W <br />H <br />0 <br />z <br />