Since 1990 the School District has participated in the Curtailable Service program from Florida Power and Light (FPL).  The Curtailable Service program allows the District to pay a lower rate for electricity.  In exchange, the District allows FPL to curtail our electric usage in the event there is a shortage of electricity.  The District currently has 11 sites (Middle and High School) on this rate which generates an estimated $80,000.00 in savings annually.

The agreement for Curtailable Service from FPL is being revised due to changes in the Curtailable Service (CS-1) rate/tariff.  FPL has made the following changes:

Monthly charges were decreased
Curtailment Credits were decreased
Non-Compliance period was increased
Penalty Charge was decreased

The Superintendent recommends the approval of the Revised Curtailable Service Agreement.

Motion and approval of the Revised Curtailable Service Agreement.

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The base demand monthly charge was decreased from $5.81 per kw of Demand to $5.72 per kw of Demand, saving the District an additional $9,677.00 annually.

The base energy monthly charge was decreased from $.01083 per kwh to $.01068 per kwh, saving the District an additional $5,646.00 annually.

The curtailment credit was decreased from $1.58 per kw to $1.56 per kw.  This reduces the amount of savings from $81,813.98 to $80,778.36 for a reduction in savings of $1,035.62 annually.

The revision to the Curtailable Service Agreement allows the District to realize an annual savings of $96,303.32.

The non-compliance penalty charges were decreased but the rebill period was increased from 12 months to 36 months. Since 1990, the District has complied with the FPL Curtailable Service agreement.

Maintenance and Operations Department and Energy Department

TH/JM

11/21/06