Key Biscayne Master Plan 043944000.18w_Key_Biscayne_MP(forJooMag) | Page 55

Chapter 6 P HASIN G AN D S E Q UE N C IN G Through a series of meetings with the Village, FPL, AT&T, Comcast, and other stakeholder utilities, Kimley-Horn has developed a recommended phasing and sequencing plan for the implementation of the undergrounding program that incorporates many different factors specific to Key Biscayne. These recommendations are intended to serve as guidance during the design and construction of the overhead to underground conversion improvements. This is a lengthy implementation process, therefore these recommendations should be reviewed so adjustments can be made as may be required. These include accounting for changes in technology, various utility and stakeholder requirements, Village priorities, and changes with other capital projects that may influence the implementation of the undergrounding program in the future. 6.1 Phase Limit Development To develop the phase limits for the project, several factors need to be considered. These factors included the following:  FPL tariff requirements  Physical size of the individual phase  Electric and communication utility system technical requirements  Cost efficiency These factors and their influence on the development of the recommended phasing limits of the program are described in greater detail in this section. 6.1.1 FPL Tariff Requirements The Florida Public Service Commission exercises regulatory authority over FPL to ensure that consumers receive their electric service in a safe, reasonable, and reliable manner. Part of this regulatory authority includes the approval of the tariff that sets the rules and regulations FPL operates under in providing electrical service. The tariff document sets forth specific rules for the conversion of facilities from overhead to underground locations. When local governments apply to FPL to have overhead facilities converted to underground locations, they can qualify for a Governmental Adjustment Factor Waiver (GAF Waiver) if the conversion project meets certain criteria. The GAF Waiver essentially provides for a 25% discount of the Contribution In Aid of Construction (CIAC) that is required to be paid to FPL by the local government applicant to perform the conversion. That amount is calculated using the formula defined in section 12.1 in the tariff. In the latest tariff revision effective February 22, 2018, certain elements of the CIAC calculation can be excluded if the applicant intends to convert existing non- hardened feeder facilities to underground feeder facilities. The calculation would exclude the cost to remove the existing overhead feeder facilities and the net book value of those feeder facilities. In turn, however, the applicant does not get credit for the estimated salvage value of the existing overhead facilities to be removed. Despite that, the revision typically results in a lower CIAC to be paid by the applicant. One criteria that is important to consider when developing an undergrounding phasing plan is that the conversion must include a minimum of three pole line miles or approximately 200 detached dwelling units within a contiguous or closely proximate geographic area to qualify for the GAF Waiver. If the conversion program is to be phased, these minimums may be met over, at most, three phases, and each phase must begin within one year from completion of the previous phase. The Village’s 51