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Board of County Commissioners March 7, 2011 Page Four As an alternative, the County could opt to closely monitor the PSC case for now, and intervene only if it becomes necessary. Under PSC guidelines, even if the County does not intervene, it is allowed to attend public meetings and most hearings, and even present arguments in favor of the County's position. This would give the County a less expensive, short term ability to follow the proceedings, and possibly even present the County's position, without a substantial commitment of effort and funds. 2. Adoption of a Resolution Expressing the Board's Position. The Board could adopt a resolution setting forth the Board's position on the City electric issues. The resolution could be filed with the PSC, and Dr. Faherty and Mr. Heran could use it in support of their case. Also, the resolution could be sent to FPL to encourage FPL to make a purchase offer. In short, the resolution could be used to publish the Board's position on these important issues, withoutcommitting the County to a significant expenditure of funds. 3. Survey of City Customers. The Board, hopefully with assistance from the City, could conduct -a survey of City electric customers to determine whether they want to be served by the City or FPL. Several factors impact the use of the survey results: (1) they would not be evidence in the PSC proceeding. Like the resolution, they could be sent to the PSC, and Dr. Faherty and 1&. Heran could attempt to use them in support of their case — but the PSC could not base any decision on the survey results, (2) the exact wording of survey questions could impact the usefulness of the results. The results of survey questions which are not carefully and skillfully prepared could be subject to impeachment from those not agreeing with the results, and (3) the results would only be useful as long as the circumstances existing at the time of the survey do not change. For example, if City rates decreased or FPL rates increased after the survey, the results may no longer be relevant. Despite these limitations, the survey could still be helpful for limited purposes before the PSC and in informing the Board and the City Council of the desires of its constituents. 4. Local Political Solution. The City Council is entirely new and has expressed an interest in exploring a sale to FPL. If a sale occurs, it is likely that the electric issues will be resolved. One or more members of the City Council have also floated the idea of retracting the territorial service area of the utility to City limits, which would also resolve the issues as they apply non-resident customers. The bottom line is that the Board could attempt to work with the City Council to reach a local political solution which protects non-resident customers. 5. Political Solution at the State Level. It is arguable that the current issues exist because state law provides minimal regulation over municipal electric utilities. Changes in state law which grant to the PSC some level of authority over municipal electric rates, or which provide protection to non- resident customers, could resolve the issues. Thus, the County could work with the legislative delegation, and possibly with lobbyists, to introduce and pursue legislative changes. The political battle would be intense, however, as municipal electric utilities and trade groups would oppose such changes. FA.4nomey\Linda\GENERAUB C GWseada Afe--IRC-COVE (Electric Issues}dae ��