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City Commission <br />Special Workshop Presentations <br />Investor Owned Electrical Providers <br />Page 18 <br /> <br />economies of scale, the ability for a major company, a top flight, top performing company like <br />CP&L acquiring Florida Power, has been able to provide very good benefit for Florida Power. I <br />have no reason to think that the reliability or the rates will be adversely affecting the citizens of <br />Casselberry or any other rate payers in this State. <br /> <br />PRONOVOST: I want to go back for a moment to an issue that was talked about a few <br />moments ago by Mr. Segreto in terms of making the City whole if you will in terms of some of <br />the expenditures that we have been forced into in terms of litigation. What is Florida Power's or <br />Progress Energy's position with respect to making the City whole with regard to the close to $2 <br />million dollars in expenditures. <br /> <br />RALEY: Again, I think it is our intent to reach an agreement on a franchise and a settlement <br />document. That will be done through the negotiations of yourselves and our company. I think <br />that at this time we are waiting on a response from the Commission in regard to our last offer. I <br />think that that will be discussions for the negotiations team, not here tonight. <br /> <br />PRONOVOST: As you know, the City has been on a dual track if you will. We have <br />certainly been up-front with that to obviously negotiate with you to have a responsive franchise <br />agreement. Now in the event that is unsuccessful and the City is exploring who else can provide <br />electric utility to the City. The question I have is would Progress Energy be willing to bid on it if <br />it have the lowest most responsive bid entering into a professional services contract with the City <br />to provide the operations and maintenance of the electric system along with any performance <br />guarantees. <br /> <br />RALEY: Again Mayor Pronovost, we came here with the intent to express our desire to enter <br />into a franchise agreement with the City. We would have to look at that issue if it presents itself <br />and make a decision, understanding that we are going to abide by all legal requirements that we <br />have and all regulatory requirements that we have in making that decision. What is our intent to <br />enter into a franchise agreement, which we feel is best for your citizens, our customers and our <br />company to do. <br /> <br />PRONOVOST: 1 understand and you do recognize that we have our negotiating team working <br />with you and your team to come up with a responsive franchise agreement that is mutually <br />acceptable to not only your corporation but also to the City of Casselberry. ! think we both <br />recognize when anybody gets into a negotiating session, there can be two outcomes, a reasonable <br />agreement that the two parties can agree to or not, it is one or the other; those are the two <br />outcomes. So in the event that we are not able to come to an agreement under that assumption, <br />would you be willing bid on the contract. <br /> <br /> <br />