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Vero Beach Mediation Statement <br /> Attachment B `o <br /> Gardner, Bist, Wiener, <br /> G B W Bowden, Bush, Dee, <br /> LaVia& Wright, P.A. <br /> A"URNMATLAW <br /> Michael P.Hist 1300 Thonlaswood Drive Bruce 1.Wiener" <br /> Garvin B.Bowden" Tallahassee,Florida 32308 Wendy Rusaell Wiener <br /> Benjamin B.Bush Bedford Wilder <br /> David S_Dee www.gbwlegal.comn Robert Scheffel`Scher Wright <br /> Erin W.Duncan <br /> Charles R.Gardner Telephone Facsimile <br /> John T.Wm,111 850-385-0070 850-385-5416 "B-M r*+Irwd Rent Zemte Lauver <br /> RRX0RaXDUX <br /> December 1, 2014 <br /> TO: JAMES R. O'CONNOR, CITY MANAGER <br /> WAYNE R. COMENNT, CITY ATTORNEY <br /> FROM: ROBERT SCHEFFEL WRIGHT <br /> SUBJECT: UPDATES REGARDING OUC PPA DISCUSSIONS <br /> This memorandum summarizes the current status of the ongoing <br /> discussions between the City and Orlando Utilities Commission <br /> ('oUCe) regarding possible changes to the City's 2008 Power Purchase <br /> Agreement (the 12008 PPA") with OUC. Following discussion of OUC's <br /> previously suggested "Discussion Points" (potential terms of an <br /> Amended and Restated PPA) at both the City Council and Utilities <br /> Commission meetings on October 21, I communicated concerns raised at <br /> those meetings to OUC, and the City Manager and I met with OUC <br /> senior management again on November 19 to discuss those concerns and <br /> how they might be addressed in revised PPA terms. On November 25, I <br /> received revised terms from OUC. <br /> In summary, the revised terms would include: (1) a shorter PPA <br /> term, through 2023 instead of through 2029; (2) no unilateral option <br /> for OUC (or the City) to terminate the PPA earlier than 2023; (3) no <br /> 'St. Lucie Option;" (4) an opportunity for the City to •recall" or <br /> reclaim its FGT gas transportation contracts if needed to fuel new <br /> gas-fired capacity built by the City by December 31, 2024, to serve <br /> the City's native load; and (5) capacity prices for the Base <br /> Capacity purchased by the City that are less than under the 2008 PPA <br /> but greater than in the October 20 terns. The key differences <br /> between the October 20 'Discussion Points," which were presented and <br /> discussed at the October 21 Council and Utilities Commission <br /> meetings, the November 25 Discussion Points, and the 2008 OUC-COVE <br /> PPA are summarized on Attachment A. (Attachment B consists of the <br /> October 20 Discussion Points and pricing table, and Attachment C <br /> consists of the November 25 Discussion Points and pricing table. ) <br /> 31 <br />