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Michael P. Bist <br />Garvin B. Bowden" <br />Benjamin B. Bush <br />David S. Dee <br />Erin W. Dunc:an <br />Charles R. Gardner <br />John T. tViaIII. <br />Telephone <br />850-385-0070 <br />Vero Beach Mediation Statement <br />Attachment B <br />Gardner, Bist, Wiener, <br />Bowden, Bush, Dee, <br />LaVia. & Wright, P.A. <br />A27173RABYS AT LAW <br />1300 Thomaawood Drive <br />Tallahassee, Florida 32308 <br />www.ghwlegal.com <br />Facsimile <br />850-385-541s <br />NREORAMDTIN <br />December 1, 2014. <br />TO: JAMES R. O'CONNOR, CITY MANAGER <br />WAYNE R. COMENT, CITY ATTORNEY <br />FROM: ROBERT SCHEFFEL WRIGHT <br />SUBJECT: 'UPDATE REGARDING 017C PPA DISCUSSIONS <br />Bruce 1. Wiener" <br />Wendy Russell Wiener <br />Bedford Wilder <br />Robert Scheffel 'Schef Wright <br />VSmniOolifivtilftalletatvlAnwer <br />• This memorandum summarizes• the current status of the ongoing <br />discussions between the 'City and Orlando Utilities Commission <br />(OCC') regarding possible changes to the City's 2008 Power Purchase <br />Agreement (the "2008 PPA') with OUC. Following discussion of OUC's <br />previouely 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, X 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 terms. 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-COVB <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 />• <br />• <br />