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In February 2013, the City entered into an Asset Purchase and Sale <br /> Agreement with FPL, pursuant to which the City agreed to sell the City <br /> Electric System (as defined below) to FPL, subject to a number of <br /> conditions precedent to closing the planned system sale. As events <br /> have unfolded, at the present time there are doubts as to whether the <br /> proposed sale can be consummated, because it appears that a specific <br /> condition precedent to closing the sale cannot be fulfilled. The City <br /> and FPL, however, are continuing their discussions to determine whether <br /> another path to closing the sale can be found. In furtherance of the <br /> City's efforts to reduce its retail electric rates, the City, FPL, and <br /> the Orlando Utilities Commission ("OUC, " which supplies roughly 40 <br /> percent of the City's wholesale power needs pursuant to a Power <br /> Purchase Agreement entered into in 2008) have executed a three-party <br /> letter pursuant to which the City will be working with both FPL and OUC <br /> to identify and implement measures to reduce the City's electric rates. <br /> Today, pursuant to the Commission's Territorial Orders, pursuant <br /> to its home rule powers, pursuant to its powers under Chapter 166 and <br /> Chapter 180, Florida Statutes, and pursuant to other legal authority, <br /> the City operates an electric generating plant, transmission lines and <br /> related facilities, and distribution lines and facilities (collectively <br /> the "City Electric System" ) , which serves approximately 34, 000 customer <br /> accounts (meters) , of which approximately 12, 900 accounts (meters) are <br /> located within the City limits and approximately 18, 400 accounts <br /> (meters) are located outside the City limits . Approximately 3, 000 of <br /> the outside-the-city-limits customer accounts (meters) are located in <br /> the Town of Indian River Shores, with the balance located in <br /> unincorporated Indian River County. Some of the City's transmission <br /> and distribution facilities in the unincorporated areas of the County <br /> are located in County road rights of way; the balance are located in <br /> State rights of way, on private roads, and in private easements . The <br /> City's preliminary estimates indicate that approximately 20 percent of <br /> the City's transmission and distribution lines in the unincorporated <br /> areas of the County are located in County road rights of way. <br /> In reliance on the Commission's Territorial Orders and in <br /> exercising its home rule powers, as well as in reliance on its powers <br /> under Section 180 . 02 (2) , Florida Statutes, and other legal authority, <br /> including reliance on the fact that both Indian River County and Indian <br /> River Shores knew of and allowed the City to use their rights of way <br /> for decades before any franchise agreements ever existed, the City has <br /> for nearly 100 years provided safe, adequate, reliable, and sufficient <br /> service to its customers both inside and outside the City limits . In <br /> fulfilling this necessary public purpose, the City has invested tens of <br /> millions of dollars, borrowed tens of millions of dollars, and entered <br /> into long-term power supply projects and related contracts, also <br /> involving millions of dollars of long-term financial commitments, in <br /> 5 <br /> ao <br />