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order to serve all of the customers in the City's service area approved INOW <br /> by the Commission's Territorial Orders. <br /> Legal Background <br /> The PSC's statutes applicable to the key issues in this case <br /> include Sections 366 . 04 (1) , 366. 04 (2) (d)&(e) , and 366. 04 (5) , Florida <br /> Statutes . <br /> Section 366 . 04, Florida Statutes, sets forth the Legislature's <br /> grant of jurisdiction to the Commission, and Section 366. 04 (1) <br /> articulates the Legislature's clear mandate that the Commission's <br /> jurisdiction is exclusive and superior to that of all other state <br /> agencies, political subdivisions, and other entities, specifically <br /> including counties and towns, providing in pertinent part as follows: <br /> The jurisdiction conferred upon the commission shall be <br /> exclusive and superior to that of all other boards, <br /> agencies, political subdivisions, municipalities, towns, <br /> villages, or counties, and, in case of conflict therewith, <br /> all lawful acts, orders, rules, and regulations of the <br /> commission shall in each instance prevail . <br /> Sections 366. 04 (2) (d) & (e) , Florida Statutes, which set forth the <br /> Commission's jurisdiction over territorial agreements and territorial <br /> disputes, provide in pertinent part as follows: <br /> (2) In the exercise of its jurisdiction, the commission <br /> shall have power over electric utilities for the following <br /> purposes : <br /> (d) To approve territorial agreements between and among <br /> rural electric cooperatives, municipal electric utilities, <br /> and other electric utilities under its jurisdiction. <br /> However, nothing in this chapter shall be construed to alter <br /> existing territorial agreements as between the parties to <br /> such agreements. <br /> (e) To resolve, upon petition of a utility or on its own <br /> motion, any territorial dispute involving service areas <br /> between and among rural electric cooperatives, municipal <br /> electric utilities, and other electric utilities under its <br /> jurisdiction. In resolving territorial disputes, the <br /> commission may consider, but not be limited to consideration <br /> of, the ability of the utilities to expand services within <br /> their own capabilities and the nature of the area involved, <br /> ..Wr <br /> 6 <br /> a � <br />