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1%MW construct, maintain and operate an electric utility within the Town's rights-of-way and other <br /> public areas lying south of Old Winter Beach Road (the "Franchise"). A copy of the Franchise <br /> Agreement is attached hereto as Exhibit "A." <br /> 13. Pursuant to its Franchise, the City has placed poles, wires, fixtures, conduits, <br /> meters, cables and other electric facilities within the Town's rights-of-way and other public areas <br /> for the purpose of supplying electricity to the Town and its inhabitants. <br /> 14. The City currently provides electric utility service to approximately 3,500 <br /> customers within the Town, while Florida Power and Light Company ("FPL") serves the <br /> remainder of the customers in the Town (approximately 739 customers). <br /> 15. In return for the Town granting the City the exclusive Franchise to operate an <br /> electric utility within a certain area of the Town, the City agreed to provide the Town and its <br /> citizens with electric utility service, to furnish such electric utility services in accordance with <br /> normally accepted electric utility standards, and to charge only reasonable rates for the electric <br /> services it provides. Ex. A, Franchise Agreement, §§ 1, 2 and 5. <br /> 16. The Franchise Agreement between the Town and the City has a term of thirty (30) <br /> years and will expire on November 6, 2016. <br /> 17. The Town has formally advised the City in writing that it will not renew the City's <br /> Franchise, and that upon expiration of the Franchise the City will no longer have the Town's <br /> permission to occupy the Town's rights-of-way and public areas nor will it have the Town's <br /> permission to operate an electric utility within the Town. <br /> 18. The City's sole authority to occupy or in any manner use the Town's rights-of- <br /> ways and other public areas to provide electric service is found in the Franchise Agreement. <br /> w. <br /> 4 <br />