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UTILITY BOARD APPROVES ELECTRIC EXTENSION AGREEMENT WITH NO NAME KEY PROPERTY OWNERS

03/07/2012 ~ The Utility Board unanimously approved the electric extension agreement with the No Name Key Property Owners Association, Inc. (NNKPOA) at a regular meeting on Wednesday, March 7th.

“A yes vote is the only appropriate action,” said Charles Bradford, Utility Board member. He added that, “it is required by Florida State Statue # 366. It is allowed by our Franchise Agreement with Monroe County. It is the desire of 70-percent of the residents of No Name Key. It reduces the carbon footprint on the island by eliminating the need to run private generators. It allows for the resale of excess Solar Energy back to Keys Energy there by making our systems reliance on fossil fuels less. And it is the right thing to do.”

The unanimous vote in favor of the line extension came after more than an hour’s worth of comments from residents who expressed their support and from residents who expressed their opposition. No Name Key is an island within KEYS’ service area that currently has no grid-tied electric power. The NNKPOA, representing some of the 43 homeowners on the island, requested that the Utility Board consider approving extending service to the existing homes/lots of interested residents. Highlights of the line extension agreement include:

- Remitting payment of $648,752.55 at the time of executing the line extension agreement.

- Placing responsibility for litigation, permitting, construction overruns, construction delays and contractor mobilization on NNKPOA.

- Requiring NNKPOA to provide for an on-site biologist to oversee initial construction.

- Placing responsibility for deconstruction costs on NNKPOA if the project is stopped.

- Allowing for homes that do not initially participate in the Line Extension Agreement to connect and pay a portion of the total costs back to NNKPOA (less 15-percent administrative costs for KEYS).

- Having NNKPOA develop an appropriate tree trimming training program to address the “Stock Island Tree Snail and Garber’s Spurge Impact Avoidance Procedures Plan.”

- Acknowledging that parts of No Name Key are within the Coastal Barrier Resources Act and requiring a $50,000 escrow account held by
KEYS to cover repairs to the system that are typically covered by the
Federal Emergency Management Administration.

- Establishing that each customer, prior to signing up for service, must file a “Notice and Agreement Regarding Provision of Electric Service to No Name Key” as public record with Monroe County.

The regular meeting of the Utility Board took place at 5:00 p.m., Wednesday, March 7th, in the Louis Carbonell Board Room of the William Arnold Service Building, at 1001 James Street, Key West.

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