Res No 066-16-14621RESOLUTION NO.066-16-14621
A Resolution of the City of South Miami,Florida,directing the expenditure
of money for the cost of expert witnesses in opposition to FPL's early cost
recovery and concerning a matter that is before the Public Service
Commission.
WHEREAS,each year,Florida Power &Light Company,("FPL")is authorized by
Florida's Public Service Commission tocharge yearly nuclear cost recovery dollars to pay for
planning,licensing,and eventually construction of its proposed nuclear reactors.Toreceivethis
authorization,the utility must provide anannual feasibility analysis of its project,demonstrating
that the proposed power plant will be cost effective forits customers and that the utility intends
to continue with licensing,etc.;and
WHEREAS,the City of South Miami has partnered with the City of Miami andthe
Village of Pinecrest,Florida in connection with the Early Cost Recovery matters before the
Florida Public Service Commission.Inthisregard,theCity of South Miamihas previously
committed $13,000 forthe engagement of aneconomistbytheCity of Miamiforthepurpose of
challenging the assumptions behind FPL's feasibility analysis and present alternatives tothe
Public Service Commission;and
WHEREAS,the actual cost of the City's shareforthe Public Service Commission expert
economist was $11,338.36,which left a balance of $1,661.64;and
WHEREAS,theCity of Miamiwillbe litigating inthis year's nuclear cost recovery
docketatthePublicService Commission andtofurtherthateffort,planonre-engagingthe
expertweusedinlast year's nuclear costrecoverydocketwhose testimony wasgivenmuch
weightandcredibilityinchallengingthereasonableness of thecostestimatesFPLisincurring
with the Turkey Point Units 6and7 project;and
WHEREAS,theCity of Miamihopestoengagean additional expertto supplement and
strengthentheprevious testimony of theexperteconomistthattheCity of SouthMiamiandthe
Village of Pinecrest jointly fundedwiththeCity of Miami;and
WHEREAS,as of theend of 2015,FPLcustomershavepaidmorethan$241million
dollarsthroughtheserateincreasestowards FPL's anticipatedconstructioncosts,whichfunds
FPLgetstokeep,even if FPLdoesnot ultimately build the new reactors;and
WHEREAS,theCity of Miamiexpectsthecostassociatedwithretainingthisexpertwill
rangefrom$35,000to$45,000andhave requested thattheVillageofPinecrestandtheCityof
SouthMiamiwillonceagainsupporttheCity of Miamiinchallenging FPL's petitionbeforethe
PublicServiceCommissionbycovering25%of thecostsassociatedwithretainingthisexpert,a
commitment which would range from$8,750to $11,250;and
WHEREAS,theEarlyCostRecoverymoniesthatFPLisrequestingfortheTurkeyPoint
6&7projectarebeingsoughtforplanningandconstruction of transmissionlinesthoughthe
Pg.2 of Res.No.066-16-14621
center of South Miami;
NOW THEREFORE,BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSIONERS OF THE CITY OF SOUTH MIAMI,FLORIDA:
Section 1.The City Manager is hereby instructed to expend an amount,notto exceed
$11,250,from account 001-1500-514-3450,City Attorney's Expense,with a current balance of
$79,232,andtopaytheCity of Miami,oratitsdirection,forthecost incurred bytheCity of
Miami for expert testimony regarding the litigation inthis year's nuclear cost recovery docket at
the Public Service Commission concerning FPL.
Section 2.Severability.If any section clause,sentence,or phrase of this resolution isfor
any reason held invalid or unconstitutional bya court of competent jurisdiction,the holding shall
not affect the validity of the remaining portions of this resolution.
Section 3.Effective Date.This resolution shall become effective immediately upon
adoption by vote of the City Commission.
PASSED AND ADOPTED this5th day of April _,2016.
APPROVED:
/jupgLk/)
MAYOR
COMMISSION VOTE:5-0
Mayor Stoddard:Yea
Vice Mayor Welsh:Yea
Commissioner Edmond:Yea
Commissioner Liebman:Yea
Commissioner Harris:Yea
ATTEST:
READ AND
LA
ORM,