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• • In February 2013, the City entered into an Asset Purchase and Sale Agreement with FPL, pursuant to which the City agreed to sell the City Electric System (as defined below) to FPL, subject to a number of conditions precedent to closing the planned system sale. As events have unfolded, at the present time there are doubts as to whether the proposed sale can be consummated, because it appears that a specific condition precedent to closing the sale cannot be fulfilled. The City and FPL, however, are continuing their discussions to determine whether another path to closing the sale can be found. In furtherance of the City's efforts to reduce its retail electric rates, the City, FPL, and the Orlando Utilities Commission ("OUC," which supplies roughly 40 percent of the City's wholesale power needs pursuant to a Power Purchase Agreement entered into in 2008) have executed a three -party letter pursuant to which the City will be working with both FPL and OUC to identify and implement measures to reduce the City's electric rates. Today, pursuant to the Commission's Territorial Orders, pursuant to its home rule powers, pursuant to its powers under Chapter 166 and Chapter 180, Florida Statutes, and pursuant to other legal authority, the City operates an electric generating plant, transmission lines and related facilities, and distribution lines and facilities (collectively the "City Electric System"), which serves approximately 34,000 customer accounts (meters), of which approximately 12,900 accounts (meters) are located within the City limits and approximately 18,400 accounts (meters) are located outside the City limits. Approximately 3,000 of the outside -the -city -limits customer accounts (meters) are located in the Town of Indian River Shores, with the balance located in unincorporated Indian River County. Some of the City's transmission and distribution facilities in the unincorporated areas of the County are located in County road rights of way; the balance are located in State rights of way, on private roads, and in private easements. The City's preliminary estimates indicate that approximately 20 percent of the City's transmission and distribution lines in the unincorporated areas of the County are located in County road rights of way. In reliance on the Commission's Territorial Orders and in exercising its home rule powers, as well as in reliance on its powers under Section 180.02(2), Florida Statutes, and other legal authority, including reliance on the fact that both Indian River County and Indian River Shores knew of and allowed the City to use their rights of way for decades before any franchise agreements ever existed, the City has for nearly 100 years provided safe, adequate, reliable, and sufficient service to its customers both inside and outside the City limits. In fulfilling this necessary public purpose, the City has invested tens of millions of dollars, borrowed tens of millions of dollars, and entered into long-term power supply projects and related contracts, also involving millions of dollars of long-term financial commitments, in 5 ao