AGREEMENT W/CLEARWATER GAS SYSTEM RE NATURAL GAS SERVICE
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AGREEMENT
Section 0.1
This AGREEMENT is made and entered into this J.!f
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day of
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1~d~'(A._. , 1999, by and between the CLEARWATER GAS SYSTEM, a department ofthe
CITY OF CLEARWATER, a municipal corporation organized and existing under the laws of the
State of Florida ("Clearwater"), and PEOPLES GAS SYSTEM, a division of Tampa Electric
Company, a corporation organized and existing under the laws of the State of Florida ("PGS").
Clearwater and PGS are hereinafter sometimes referred to singularly as "Party" and collectively
referred to as "Parties."
WITNESSETH:
Section 0.2 WHEREAS, Clearwater is presently providing natural gas service to private
individuals, firms, corporations and governmental entities in portions of Pin ell as County, both within
and without the corporate limits of the City of Clearwater, and in portions of Pasco County; and
Section 0.3
WHEREAS, PGS is presently providing natural gas service to persons, firms,
corporations and governmental entities throughout portions of the State of Florida, including
portions of both Pinellas and Pasco Counties, Florida; and
Section 0.4 WHEREAS, a potential dispute has arisen between Clearwater and PGS
regarding service to potential natural gas customers located in Pinellas County; and
Section 0.5 WHEREAS, Clearwater and PGS desire to resolve the potential dispute
between them in order that present and future applicants for natural gas service may expeditiously
obtain such service from one or the other of them; and
Section 0.6
WHEREAS, the respective areas of retail service ofthe Parties are contiguous
in certain places with the result that duplication of service facilities may occur in the future unless
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such duplication is precluded by virtue of this Agreement; and
Section 0.7 WHEREAS, the Parties recognize that any duplication of said service
facilities may result in needless and wasteful expenditures that are detrimental to the public interest;
and
Section 0,8
WHEREAS, the Parties desire to avoid and eliminate the circumstances giving
rise to the aforesaid potential duplications and toward that end have established a Territorial
Boundary Line to delineate their respective retail territorial areas in Pinellas County; and
Section 0.9 WHEREAS, the Florida Public Service Commission ("PSC") is empowered
by the legislature of the State of Florida, pursuant to section 366,04(3)(a), Florida Statutes, to
approve and to supervise territorial agreements between natural gas utilities; and
Section 0.10 WHEREAS, there already exists a territorial agreement approved by the PSC
for Pasco County, and this Agreement will complete the delineation of the territorial boundaries
between Clearwater and PGS, avoiding future conflicts of this nature; and
Section 0.11 NOW, THEREFORE, in fulfillment ofthe purposes and desires aforesaid, and
in consideration ofthe mutual covenants and agreements herein contained, which shall be construed
as being interdependent, the Parties, subject to and upon the terms and conditions herein set forth,
do hereby agree as follows:
ARTICLE I
DEFINITIONS
Section 1.1
Natural Gas As used herein, the term "Natural Gas" shall mean: natural gas,
manufactured gas, liquefied gas with air admixture, or a similar gaseous substance furnished to the
public by pipeline.
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Section 1.2
Clearwater Territorial Area As used herein, the term "Clearwater Territorial
Area" shall mean the area labeled Clearwater Gas System Pinellas County Service Area on Exhibit
"A" to this Agreement.
Section 1.3 PGS Territorial Area As used herein, the term "PGS Territorial Area" shall
mean the area labeled Peoples Gas System Pinellas County Service Area on Exhibit "A" to this
Agreement.
Section 1.4 Existing Customers As used herein, the term "Existing Customers" shall
mean those natural gas customers of either Party taking service from that Party on the effective date
of this Agreement.
Section 1.5
Point of Use As used herein, the term "Point of Use" shall mean the end-use
natural gas facilities of a customer, as distinct from the point of connection or point of metering.
Section 1. 6 New Customers As used herein, the term "New Customers" shall mean those
consumers applying for natural gas service for a Point of Use in the Territorial Area of either Party
during the term of this Agreement.
Section 1.7
Territorial Area As used herein, the term "Territorial Area" shall mean either
or both, where appropriate, the Clearwater Territorial Area or the PGS Territorial Area.
Section 1.8 Territorial Boundary Line As used herein, the term "Territorial Boundary
Line" shall mean the boundary line so labeled, designating the dividing line between the areas shown
on Exhibit "A" of this Agreement, which dividing line is further described as follows:
From the Point of Beginning (P.O.B.) At the northeast corner of Section 2, Township
27 South, Range 17 East proceed generally south along the east line of Section 2,
Township 27 South, Range 17 East to the point of intersect with the Hillsborough
County boundary line, then generally west along the Pasco County/Hillsborough
County boundary line to the point of intersect with the Pinellas County boundary
line, then generally south along the Pinellas County/Hillsborough County boundary
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line to the point of intersect with State Road 60 (Courtney Campbell Causeway), then
generally west along the irregular southerly shoreline of State Road 60 (Courtney
Campbell Causeway) to the point of intersect with the Bayside Bridge (County Road
593), then generally south along the Bayside Bridge (County Road 593) and
continuing generally south along the centerline of 49th Street North (County Road
593) to the point of intersect with the centerline of State Road 686 (Roosevelt
Boulevard), then generally west along the centerline of State Road 686 (Roosevelt
Boulevard) to the point of intersect with the centerline of 58th Street North, then
generally south along the centerline of 58th Street North to the point of intersect with
the projection of 146th Avenue North, then generally west along the projection of
146th Avenue North to the point of intersect with the centerline of 62nd Street North
and the centerline of 146th Avenue North, and continuing generally west along the
centerline of 146th Avenue North to the point of intersect with the centerline of 66th
Street North, then generally south along the centerline of 66th Street North to the
point of intersect with the centerline of 142nd Avenue North, then generally west
along the centerline of 142nd Avenue North to the point of intersect with the
centerline of Belcher Road, then generally south along the centerline of Belcher Road
to the point of intersect with the centerline ofUlmerton Road, then generally west
along the centerline ofUlmerton Road to the point of intersect with the centerline of
113th Street North, then generally south along the centerline of 113th Street North
to the point of intersect with the centerline ofWalsingham Road, then generally west
along the centerline of Walsingham Road to the point of intersect with State Road
688 (Walsingham Road/Ulmerton Road), then generally west along the centerline of
State Road 688 (Walsingham Road) to the centerline of the intracoastal waterway
then generally south along the center line of the intracoastal waterway to the point
of intersect with the southernmost boundary of the Town of Redington Beach then
generally southwesterly along the southernmost boundary ofthe Town of Redington
Beach to the point of intersect with the shoreline of the Gulf of Mexico,
The following additional territory is hereby granted to Peoples Gas System:
A. Those properties abutting the north side of 142nd Avenue North from 66th Street
North to Belcher Road.
B. Those properties abutting the north side of Walsingham Road from 113th Street
North to State Road 688 (Walsingham Road/Ulmerton Road).
The following additional territory is hereby granted to Clearwater Gas System:
C. Those properties abutting the south side of State Road 688 (Walsingham Road) from
146th Street North to the centerline of the Intracoastal Waterway.
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ARTICLE II
RETAIL NATURAL GAS SERVICE
Section 2. 1
In General Except as otherwise specifically provided herein, Clearwater shall
have the exclusive authority to furnish retail natural gas service to all New Customers within the
Clearwater Territorial Area, and PGS shall have the exclusive authority to furnish retail natural gas
service to all its Existing Customers and all New Customers in the PGS Territorial Area.
Section 2.2
Existing Customer Transfer The Parties are currently serving certain Existing
Customers within the Territorial Area ofthe other Party. Within 90 days ofthe effective date ofthis
Agreement, as provided for in Section 4.1, each Party shall convey to such other Party such Existing
Customers, together with such lateral gas mains, service lines, and appurtenances thereto previously
used by the Party in providing service in the territory of the Party which will provide service
thereafter. Such facilities shall be transferred whether or not they are necessary for the provision of
service by the acquiring Party. The acquiring Party shall pay to the transferring Party a price to be
mutually agreed between the Parties. If the Parties are unable to agree upon a price, the price shall
be replacement cost less depreciation. Notwithstanding the foregoing, existing customers within the
Clearwater Territorial area currently being served by PGS under its Rider FTA may remain with
PGS if they request, in writing, to do so. Any such customer will be allowed to remain with PGS
as long as the customer maintains continuous service. If service to such a customer is terminated
for any reason, including change of ownership/tenant, or if such a customer desires to be transferred
to Clearwater at a future date, PGS and Clearwater will effect the transfer of such customer and such
gas mains, service lines, and appurtenances thereto previously used by PGS in providing service to
such customer according to the terms of Section 2.5.
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Section 2.3
Service to New Customers The Parties agree that neither ofthem will serve
or attempt to serve any New Customer whose Point of Use is located within the Territorial Area of
the other Party, except as provided in Section 2.5,
If a New Customer or prospective New Customer requests or applies for service from either
Party, but such Customer's Point of Use is located in the Territorial Area ofthe other Party, the Party
receiving such a request or application shall refer such New Customer or prospective New Customer
to the other Party with citation to this Agreement as approved by the PSC.
Section 2.4 Boundary Modifications The Parties recognize that, in specific instances,
good engineering practices or economic constraints on one of the Parties may from time-to-time
indicate that small service areas and/or New Customers should not be served by the Party in whose
territory such areas or Customers are then located under Section 2.1. In such instances, the Parties
agree to jointly and expeditiously seek approval of the PSC for modification of this Agreement in
order to permit the appropriate Party to provide service to such small service areas and/or New
Customers.
Section 2.5
Temporarv Service To help facilitate the provision of natural gas service to
Customers and to minimize costs and delays in providing such service, a Party which has a gas main
installed on its side of the Territorial Boundary Line may temporarily serve Customers located on
the other side of such Territorial Boundary Line in territory herein reserved to the other Party only
(a) if requested by such other Party or (b) if such other Party is unable to provide such service within
a reasonable time; provided, however, that when such temporary service is contemplated by a Party,
it shall give written notice, setting forth the details of such contemplated service, to the Party in
whose territory the Customer is located under Section 2,1 ofthis Agreement, and to the PSC, before
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installing any additional facilities needed for the provision of such temporary service. At such time
as the Party in whose territory such Customers are located under Section 2.1 has a gas main available
for providing, or is otherwise able to provide, natural gas service to such Customers, the Party
providing temporary service pursuant to this section shall surrender any such Customers upon the
request of the Party in whose territory such Customers are located, and shall convey to such other
Party, at a price to be mutually agreed between the Parties, such gas mains, service lines, and
appurtenances thereto previously used by the Party in providing temporary service, whether or not
such facilities are necessary for the provision of service by the acquiring Party, and located in the
territory of the Party which will provide service thereafter. If the Parties are unable to agree upon
a price, the price shall be replacement cost less depreciation. Any Customer who receives
temporary natural gas service under the provisions of this section shall be notified in advance that
when service becomes available from the Party in whose territory such Customer is located, the
Customer will be required to receive service from such Party at such Party's then-current rates, and
that such temporary service is provided only as a temporary convenience to the Customer.
ARTICLE III
OPERATION AND MAINTENANCE
Section 3.1
Facilities to Remain Nothing in this Agreement is intended to affect the gate
stations, regulators, or gas mains of either Party which are now or which may in the future be located
in the service area ofthe other Party; provided, however, that each Party shall operate and maintain
said lines and facilities in such manner as to minimize any interferences with the operations of the
other Party. No such facilities shall be used by either Party to provide retail natural gas service to
Customers located in the Territorial Area ofthe other Party except as may be necessary to implement
the provisions of Section 2.4 or 2.5 hereof.
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ARTICLE IV
PREREQUISITE APPROVAL
Section 4.1
PSC Approval
The provisions and the Parties' performance of this
Agreement are subject to the regulatory authority ofthe PSC, and appropriate approval by that body
of the provisions of this Agreement shall be an absolute condition precedent to the validity,
enforceability and applicability hereof. This Agreement shall have no effect whatsoever until that
approval has been obtained, and the date of expiration ofthe appeal period following issuance ofthe
Order granting PSC approval of this Agreement shall be deemed to be the effective date of this
Agreement. Any proposed modification to this Agreement shall be submitted to the PSC for
approval. In addition, the Parties agree to jointly petition the PSC to resolve any dispute concerning
the provisions of this Agreement or the Parties' performance of this Agreement.
Section 4.2 Liability in the Event of Disapproval In the event approval pursuant to
Section 4.1 is not obtained, neither Party will have any claim against the other arising under this
Agreement.
ARTICLE V
DURATION
Section 5.1
Review and Term of Agreement
Prior to the second anniversary of the
effective date ofthis Agreement and no more than every fifth anniversary thereafter, the Parties shall
meet to review the status ofthis Agreement and shall submit ajoint status report to the Commission.
After this Agreement becomes effective pursuant to Section 4.1 hereof, it shall continue in
effect until modification shall be mutually agreed upon and approved by the PSC, or until
termination shall be mandated by a governmental entity or court having jurisdiction to mandate such
termination or modification.
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ARTICLE VI
MISCELLANEOUS
Section 6.1
Negotiations Whatever terms or conditions may have been discussed during
the negotiations leading up to the execution of this Agreement, the only ones agreed upon are those
set forth herein, and no alteration, modification, enlargement or supplement to this Agreement shall
be binding upon either of the Parties hereto unless the same shall be in writing, signed by both
Parties, and approved by the PSC.
Section 6.2 Successors and Assigns
Nothing in this Agreement, expressed or
implied, is intended or shall be construed to confer upon or give to any person or entity, other than
the Parties hereto, any right, remedy or claim under or by reason ofthis Agreement or any provision
or condition hereof; and all of the provisions, representations, covenants and conditions herein
contained shall inure to the sole benefit of, and shall be binding only upon, the Parties hereto and
their respective representatives, successors and assigns.
Section 6.3 Notices Notices given hereunder shall be deemed to have been given to
Clearwater if mailed by certified mail to: Managing Director, Clearwater Gas System, 400 N.
Myrtle Avenue, Clearwater, Florida 33755, and to PGS if mailed by certified mail to: Manager of
Regulatory Coordination, Peoples Gas System, P.O. Box 2562, Tampa, Florida 33601-2562, Such
address to which such notice shall be mailed may be, at any time, changed by designating such new
address and giving notice thereof in writing in the manner herein provided,
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed in
duplicate in their respective corporate names and their corporate seals affixed by their duly
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authorized officers on the day and year first written above.
PEOPLES GAS SYSTEM
a ili~SiO:;Tampa ~=panY
By: I~~
Bruce Christmas
Vice President-Operations
Countersigned:
Approved as to form and
legal sufficiency:
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Pamela K. Akin
City Attorney
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CITY OF CLEARWATER, FLORIDA
By: }---
Michael 1. Roberto
City Manager
Attest:
JLk ['. )L~g0
Cynth' a E. Goudeau ". ~
City\Clerk
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Exhibit "A "
CLEARWATER GAS SYSTEM / PEOPLES
TERRITORIAL BOUNDRIES
GAS
\}
POINT OF BEGINNING @
THE NORTHEAST CORNER
OF SECTlml 2,
TOWtEHIP '27 SOUTH,
RANGE 17 EAST
r
TERRITORIAL
BOUNDARY IS THE
CnnERLlNE OF THE
INTRACOASTAL
WATEP.WAY TO ^t~
Et~D POIIH @ THE
SOUTHERNMOST
BOUNDARY OF THE
TOWN OF
REDiNGTON BEACH
FROM THE CENTER
OF THE
l~nRACOASTA.L
WATERWAY TO THE
POINT OF
INTERSECT .WITH
THE SHORELINE OF
THE GULF OF
ME/leo
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= B(
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= C)
SEE TERRITORIAL
AGREEMENT FOR
EXPLANATJON OF
BOUND..RY IN
THESE AREAS
.ianuot""'V 6. 1999
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BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In Re: Joint Petition for approval of
territorial boundary agreement in
Pinellas County by Peoples Gas
System and Clearwater Gas System, :
a department of the City of
Clearwater
DOCKET NO.
Submitted for Filing:
8- -99
JOINT PETITION
Petitioners, Peoples Gas System ("Peoples") and Clearwater Gas System, a department of
the City of Clearwater ("Clearwater Gas"), by their undersigned attorneys and pursuant to Section
366.04(3)(a), Florida Statutes, and Rule 25-7.0471, Florida Administrative Code, jointly file this
petition for an order approving the territorial boundary agreement between Peoples and Clearwater
attached hereto as Exhibit 1, and in support thereof state as follows:
1. The names and mailing addresses of the petitioners are:
Peoples Gas System
P. O. Box 2562
Tampa, Florida 33601-2562
Clearwater Gas System
400 North Myrtle Avenue
Clearwater, Florida 33755
2. The names and mailing addresses of the persons authorized to receive notices and
communications with respect to this petition are:
Ansley Watson, Jr., Esq.
Macfarlane Ferguson & McMullen
P. O. Box 1531
Tampa, Florida 33601-1531
Angela Llewellyn
Peoples Gas System
P. O. Box 2562
Tampa, Florida 33601-2562
William 1. Peebles, Esq.
P. O. Box 10930
Tallahassee, Florida 32302
Chuck Warrington
General Manager
Clearwater Gas System
400 North Myrtle Avenue
Clearwater, Florida 33755
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BACKGROUND
3. Clearwater Gas presently provides natural gas service to customers in portions of
Pinellas County (both within and outside the corporate limits of the City of Clearwater) and in
portions of Pasco County. Peoples presently provides natural gas service throughout portions of the
State of Florida, including portions of Pin ell as and Pasco Counties.
4. A potential dispute has arisen between Clearwater Gas and Peoples with respect to
which of them should serve potential natural gas customers located in Pinellas County. In order to
resolve that potential dispute, the petitioners have entered into an Agreement (the "Pinellas
Territorial Boundary Agreement"), a copy of which is attached hereto as Exhibit I and incorporated
herein by reference. The Pinellas Territorial Boundary Agreement defines the territorial service
areas of each petitioner within Pinellas County.
5. By its Order No. PSC-95-0620-AS-GU, issued on May 22, 1995 in Docket No.
940660-GU, the Commission approved a territorial agreement between Clearwater and Peoples
resolving an earlier dispute and defining the service areas of the petitioners within Pasco County.
The Commission's approval of the Pinellas Territorial Boundary Agreement will complete the
delineation of the boundaries between the service areas of the petitioners, thereby avoiding future
conflicts between them.
RELIEF REQUESTED
6. Petitioners seek the Commission's approval, pursuant to Section 366.04(3)( a), Florida
Statutes, and Rule 25-7.0471, Florida Administrative Code, of the Pinellas Territorial Boundary
Agreement, such approval being a condition precedent to the effectiveness of the agreement and the
territorial boundaries set forth therein. Any modification of the agreement, once approved by the
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for such facilities will be $7,091.90. Petitioners submit that each of such purchase prices is
reasonable.
10. Each of Peoples and Clearwater Gas represents that approval and implementation of
the Pinellas Territorial Boundary Agreement will not cause a decrease in the availability or reliability
of natural gas service to existing or future ratepayers of either Peoples or Clearwater Gas.
11. Absent the Commission's approval ofthe agreement, the plans of Clearwater Gas and
Peoples for providing retail natural gas service in portions of Pinellas County would overlap.
Petitioners submit that approval of the agreement by the Commission will avoid the future
uneconomic duplication of facilities by Peoples and Clearwater Gas, will expedite the handling of
applications for service by future potential customers, and is therefore in the public interest.
WHEREFORE, Clearwater Gas and Peoples respectfully request that the Commission enter
its order approving and adopting the Pinellas Territorial Boundary Agreement.
DATED this _ day of August, 1999.
PEOPLES GAS SYSTEM,
a division of Tampa Electric Company
CLEARWATER GAS SYSTEM
a department of the City of Clearwater
ANSLEY WATSON, JR.
SCOTT C. DAVIS
Macfarlane Ferguson & McMullen
P. O. Box 1531
Tampa, Florida 33601-1531
(813) 273-4200
WILLIAM J. PEEBLES, ESQ.
P. O. Box 10930
Tallahassee, Florida 32302
(850) 681-7383
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EXHIBIT 2
Customers moving from Peoples to Clearwater
Name Service Address City State Zip
Long John Silver's 12881 Walsingham Rd. Largo FL 33774
Maria's Kitchen Two, Inc 12931 Walsingham Rd. Largo FL 34644
Denny's 12933 Walsingham Rd. Seminole FL 33774
Village Inn 13105 Walsingham Rd. Largo FL 33774
KFC National Management Co. 13677 Walsingham Rd. Largo FL 34644
Angelino's 13883 Walsingham Rd. Largo FL 33774
Miami Subs 8651 Ulmerton Rd. Clearwater FL 34622
Taco Bell 8671 Ulmerton Rd. Largo FL 33771
Customers moving from Clearwater to Peoples
Name Service Address City State Zip
Castillian Lake Club Apartments 11444 137th St. N. Largo FL 33774
Customers who may remain with Peoples as FT A Participants
Name Service Address City State Zip
Hanson Cleaners 12963 Walsingham Rd. #206 Largo FL 34664
Albertsons 13031 Walsingham Rd. St. Petersburg FL 34664
Customers remaining with Peoples until availability of Clearwater service
Name Service Address City State Zip
Word of Faith Church 1550 Belcher Rd. S. Largo. FL 33771
Vacant 2300 Belcher Rd. S. Largo FL 33771