Florida Public Service Commission native order document 00365-2023

Order No. PSC-2023-0061-PAA-GUFlapubserv

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FILED 1/23/2023
DOCUMENT NO. 00365-2023
FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Joint petition for approval of territorial
agreement in Santa Rosa County, by the City
of Gulf Breeze and the Okaloosa Gas District.
DOCKET NO. 20220158-GU
-----------------~
ORDER NO. PSC-2023-0061-PAA-GU
ISSUED: January 23, 2023
The following Commissioners participated in the disposition of this matter:
ANDREW GILES FAY, Chairman
ARTGRAHAM
GARY F. CLARK
MIKE LAROSA
GABRIELLA P ASSIDOMO
NOTICE OF PROPOSED AGENCY ACTION
ORDER APPROVING TERRITORIAL AGREEMENT
BY THE COMMISSION:
NOTICE is hereby given by the Florida Public Service Commission that the action
discussed herein is preliminary in nature a nd will become final unless a person whose interests
are substantially affected files a petition for a formal proceeding, pursuant to Rule 25-22.029,
Florida Administrative Code (F.A.C.).
Background
On September 9, 2022, the City of Gulf Breeze (Gulf Breeze) and the Okaloosa Gas
District (District), collectively the parties, filed a joint petition seeking our approval of a new
Territorial Agreement (Agreement) delineating their respective portions of service boundaries in
southern Santa Rosa County. Presently, both Gulf Breeze and the Gas District provide retail
natural gas service to customers in contiguous areas of southern Santa Rosa County.
The parties currently do not have a Commission-approved territorial agreement. The
purpose of the proposed Agreement is to define the parties' respective service areas in southern
Santa Rosa County pursuant to amended Chapter 2021-262, Laws of Florida, and to comply with
the legislative directive that the Disputed Area be determined by a final Order by us. The
Agreement and composite maps depicting the dividing line between Gulf Breeze and the District
service areas in southern Santa Rosa County are shown in Attachment A and Chapter 2021-262,
Laws of Florida, is shown in Attachment B to this Order.
The redrawing of the subject boundary will transfer one Gulf Breeze residential customer
and associated infrastructure to the District. The customer has been notified of the transfer.
ORDER NO. PSC-2023-0061-PAA-GU
DOCKET NO. 20220158-GU
PAGE 2
Commission staff issued a data request to the parties for which the responses were received
on November 22, 2022. We have jurisdiction over this matter pursuant to Section 366.04, Florida
Statutes (F.S.).
Decision
Pursuant to Section 366.04(3)(a), F.S., and Rule 25-7.0471, F.A.C., we have jurisdiction
to approve territorial agreements between natural gas utilities. For purposes of this subsection,
Section 366.04(3)(c), F.S., defines natural gas utility to include municipalities and gas districts.
Unless we determine that the Agreement will cause a detriment to the public interest, it should be
approved.1 	Gulf Breeze is a Florida municipal corporation which owns and operates a natural
gas distribution system and has been providing natural gas service since 1964. Its service area
includes portions of Escambia and Santa Rosa counties and currently provides retail natural gas
service to 4,780 customers in Santa Rosa County.
The District is an independent special district created by the Florida Legislature in 1953
to own and operate natural gas transmission and distribution systems in Okaloosa County. 2 	In
2000, the Legislature expanded in Chapter 2000-443, Laws of Florida, the District’s service area
to include portions of Santa Rosa and Walton counties. The District provides natural gas service
to 50,994 residential, commercial, and industrial customers, as well as military installations,
within its entire service area.3 As stated in paragraph 4 of the petition, the District currently
serves 4,798 customers in Santa Rosa County. The District’s member municipalities are
Crestview, Niceville, Valparaiso, and Fort Walton Beach.
In 2021, the Florida Legislature again expanded the service area of the District to include
all of Santa Rosa County with two defined areas excluded. The first excluded area is:
The area within the corporate limits of the City of Gulf Breeze and the area from
the eastern boundary of the corporate limits of the City of Gulf Breeze extending
easterly approximately 11 miles to the line defined as the eastern boundary of
Sections 4, 9, 16, 21, and 28 of Township 2 South, Range 27 West, which extends
north and south from Santa Rosa Sound to East Bay.
The second excluded area (Disputed Area) is:
The area from the line defined as the eastern boundary of Sections 4, 9, 16, 21,
and 28 of Township 2 South, Range 27 West, which extend north and south from
Santa Rosa Sound to East Bay, and extending easterly to the line starting at the
intersection of US Highway 98 and Shannon Drive, going due south to Santa
Rosa Sound, thence turning due north continuing to Manatee Road; thence turning
west 	until 	the 	intersection 	of 	Basswood 	Drive; 	thence 	turning 	north 	until
intersecting the Tom King Bayou tributary south of Cove Road; thence following
1 Utilities Commission of the City of New Smyrna Beach v. Florida Public Service Commission, 469 So. 2d 731 (Fla.
1985).
2 Chapter 29334, Laws of Florida.
3 Response 2 in Staff’s First Data Request, Document No. 11563-2022.
ORDER NO. PSC-2023-0061-PAA-GU
DOCKET NO. 20220158-GU
PAGE 3
this branch northwest to Tom King Bayou, thence north to East Bay is presently
claimed as a service area by the District and by the City of Gulf Breeze and shall
not be deemed to be included or excluded as a service area for the District. The
service rights for this area shall be determined by a final nonappealable order of
the Florida Public Service Commission or any successor agency.
Chapter 2021-262, Laws of Florida 2021 (emphasis added).
In response to our staff’s data request, the joint petitioners explained that historically the
service areas of the two parties have been geographically dispersed such that an agreement was
not necessary.4 However, over the years, as a consequence of natural growth, portions of the
parties’ service areas have begun to converge in southern Santa Rosa County near the Dividing
Line as defined in the proposed Agreement (separating Gulf Breeze and the District’s service
area).
With respect to the Disputed Area referenced in Chapter 2021-262, Laws of Florida, the
parties explained that after discussions among the parties and members of the local legislative
delegation, the Disputed Area was excluded from the service area determination in recognition of
the fact that the City and the District both provided service to the area and claimed certain rights.
Therefore, resolution of service rights was reserved for determination by us.5
A. Proposed Territorial Agreement
The proposed Agreement defines the Parties’ respective service territories in the Disputed
Area by establishing a “Dividing Line” that transects the Disputed Area. The Dividing Line is
shown on composite Exhibit B of Attachment A to this order (page 10 of 10 of Attachment A).
The joint petitioners assert that the proposed new Agreement will formalize the Dividing Line,
comply with the legislative directive, eliminate duplication of service and expenditures, and
avoid the potential for future disputes. The joint petitioners also assert that the proposed
boundary modification will not decrease service reliability to their existing or future customers.
The proposed Agreement will become effective on the day this Order becomes final and
will continue in effect until termination or modification is approved by us or mandated by a
government entity. In response to Commission staff’s data request, the parties confirmed that
there is no specified termination date for the proposed Agreement. 6
B. Infrastructure and Customer Transfer and Notification
The Parties explained in the petition that the Dividing Line in the Agreement has been
drawn to avoid the need to transfer any customers or utility facilities, with the exception of one
residential customer of Gulf Breeze. Pursuant to Section 4(b) of the Agreement, the customer
will be transferred following the effective date of this Agreement and upon written notification
4 Response No. 3 in Staff’s First Data Request, Document No. 11563-2022.
5 Response No. 6 in Staff’s First Data Request, Document No. 11563-2022.
6 Response No. 4 in Staff’s First Data Request, Document No. 11563-2022.
ORDER NO. PSC-2023-0061-PAA-GU
DOCKET NO. 20220158-GU
PAGE 4
from the District stating it is prepared to provide service to the transferred customer. On August
17, 2022, Gulf Breeze notified the customer of the transfer and provided rate comparisons.
Pursuant to the customer notification, the District will waive the $55 service activation fee and
Gulf Breeze will credit the customer’s $50 deposit towards any outstanding amounts due and
refund the remainder.7 The parties assert that they have not received a response or objections
from the customer.
Along with the customer transfer, approximately 1,200 feet of pipeline and associated
infrastructure will be transferred to the District. The District will pay $24,163.05, representing
the depreciated value of the infrastructure to Gulf Breeze.
C. Conclusion
After review of the joint petition and the petitioners’ joint responses to staff’s data
request, we find that the proposed Agreement is in the public interest and will enable Gulf
Breeze and the District to serve their current and future customers efficiently. The proposed
Agreement will define the parties’ respective service areas in southern Santa Rosa County
pursuant to the amended Chapter 2021-262, Laws of Florida, and comply with the legislative
directive that the Disputed Area be determined by a final order by us. Additionally, the proposed
Agreement will avoid duplication of service and mitigate the potential for future disputes.
Therefore, we shall approve the proposed Territorial Agreement between the City Gulf Breeze
and the Okaloosa Gas District in southern Santa Rosa County.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that the proposed territorial
agreement in Santa Rosa County by the City of Gulf Breeze and the Okaloosa Gas District is
hereby approved. It is further
ORDERED that the provisions of this Order, issued as proposed agency action, shall
become final and effective upon the issuance of a Consummating Order unless an appropriate
petition, in the form provided by Rule 28-106.201, Florida Administrative Code, is received by
the Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, by the
close of business on the date set forth in the “Notice of Further Proceedings” attached hereto. It
is further
ORDERED that in the event this Order becomes final, this docket shall be closed.
7 Response No. 5 in Staff’s First Data Request, Document No. 11563-2022.
O RD ER NO. PSC -2023 -006 1-P AA - GU
DOCKET NO .2022 01 58-GU
PAGE 5
By O RD ER of th e Fl o ri da Public Service Commission thi s 23 rd day of Ja nu ar y, 2023.
DD
Flo ri da Pub l ic Serv ice Commission
2540 Shuma rd Oak Bou leva rd
Ta ll ahassee, Flo rid a 32399
(850) 41 3-6770
www.flo ri dapsc.com
Co pi es furni shed: 	A copy of thi s doc um e nt is
prov id ed to the parties of reco rd at the t im e of
iss uance a nd , if app lica bl e, in te rested pe rso ns.
NOTICE OF FURTH ER PROCEE DI NGS OR J UD ICIAL R EV I EW
The Flo ri da Pub li c Se rvice Com mi ssion is required by Sec ti on 	120.569( I ), Flo ri da
Statutes, to noti fy parties of any administrative hea rin g th at is ava il a bl e unde r Section 120.57,
Flor id a Statutes, as we ll as th e procedures and t ime limits th at appl y. 	T hi s notice shou ld not be
constr ue d to mean a ll requests fo r an ad mini str at ive hear in g w ill be gra nt ed or result in the re li ef
so ug ht.
Med iation may be ava il a bl e on a case- by -case bas is. 	If med ia ti on is conducted, it does
not affect a substa nti a ll y in terested per so n's ri g ht to a hea rin g.
The ac ti on pro posed herei n is preliminary 	in nature. Any per so n whose s ub sta nti al
interests are affected by th e ac ti on proposed by t hi s order may fil e a pet iti on fo r a fo rm al
proceedin g, in the form p rov id ed by Rul e 28 -1 06 .20 I, Flo ri da Adm inist ra ti ve Code. 	T hi s
pe tition mu st be rece ived by the Offi ce of Co mmi ssion Cle rk , 2540 Shumard Oak Bo ul eva rd ,
Ta ll ahassee, Flor id a 32399-0850, by t he close of business on Feb ru a1y 13. 2023.
In th e abse n ce of such a petition, thi s o rd er sha ll become fina l and effec ti ve upo n th e
iss uance of a Cons um mat in g O rd e r.
Any o bj ect ion or protest fil ed in t hi s/ th ese docket (s) before th e issuance date of thi s order
is conside red abandoned unl ess it sa ti s fies the fo rego ing cond itions and is renewed wit hi n the
spec ifi ed p ro test pe ri od.
ORDER NO. PSC-2023-0061-PAA-GU 	Attachment A
DOCKET NO. 20220158-GU 	Page 1 of 10
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ORDER NO. PSC-2023-0061-PAA-GU 	Attachment A
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ORDER NO. PSC-2023-0061-PAA-GU 	Attachment A
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ORDER NO. PSC-2023-0061-PAA-GU 	Attachment A
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ORDER NO. PSC-2023-0061-PAA-GU 	Attachment A
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ORDER NO. PSC-2023-0061-PAA-GU 	Attachment A
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ORDER NO. PSC-2023-0061-PAA-GU 	Attachment A
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ORDER NO. PSC-2023-0061-PAA-GU 	Attachment A
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ORDER NO. PSC-2023-0061-PAA-GU 	Attachment A
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ORDER NO. PSC-2023-0061-PAA-GU 	Attachment A
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ORDER NO. PSC-2023-0061-PAA-GU 	Attachment B
DOCKET NO. 20220158-GU 	Page 1 of 3
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ORDER NO. PSC-2023-0061-PAA-GU 	Attachment B
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ORDER NO. PSC-2023-0061-PAA-GU 	Attachment B
DOCKET NO. 20220158-GU 	Page 3 of 3
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FILED 1/23/2023 DOCUMENT NO. 00365-2023 FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Joint petition for approval of territorial agreement in Santa Rosa County, by the City of Gulf Breeze and the Okaloosa Gas District.
DOCKET NO. 20220158-GU ORDER NO. PSC-2023-0061-PAA-GU ISSUED: January 23, 2023
The following Commissioners participated in the disposition of this matter:
ANDREW GILES FAY, Chairman ART GRAHAM GARY F. CLARK MIKE LA ROSA GABRIELLA PASSIDOMO
NOTICE OF PROPOSED AGENCY ACTION ORDER APPROVING TERRITORIAL AGREEMENT
BY THE COMMISSION:
NOTICE is hereby given by the Florida Public Service Commission that the action discussed herein is preliminary in nature and will become final unless a person whose interests are substantially affected files a petition for a formal proceeding, pursuant to Rule 25-22.029, Florida Administrative Code (F.A.C.).
Background
On September 9, 2022, the City of Gulf Breeze (Gulf Breeze) and the Okaloosa Gas District (District), collectively the parties, filed a joint petition seeking our approval of a new Territorial Agreement (Agreement) delineating their respective portions of service boundaries in southern Santa Rosa County. Presently, both Gulf Breeze and the Gas District provide retail natural gas service to customers in contiguous areas of southern Santa Rosa County.
The parties currently do not have a Commission-approved territorial agreement. The purpose of the proposed Agreement is to define the parties' respective service areas in southern Santa Rosa County pursuant to amended Chapter 2021-262, Laws of Florida, and to comply with the legislative directive that the Disputed Area be determined by a final Order by us. The Agreement and composite maps depicting the dividing line between Gulf Breeze and the District service areas in southern Santa Rosa County are shown in Attachment A and Chapter 2021-262, Laws of Florida, is shown in Attachment B to this Order.
The redrawing of the subject boundary will transfer one Gulf Breeze residential customer and associated infrastructure to the District. The customer has been notified of the transfer.

ORDER NO. PSC-2023-0061-PAA-GU
DOCKET NO. 20220158-GU
PAGE 2
Commission staff issued a data request to the parties for which the responses were received
on November 22, 2022. We have jurisdiction over this matter pursuant to Section 366.04, Florida
Statutes (F.S.).
Decision
Pursuant to Section 366.04(3)(a), F.S., and Rule 25-7.0471, F.A.C., we have jurisdiction
to approve territorial agreements between natural gas utilities. For purposes of this subsection,
Section 366.04(3)(c), F.S., defines natural gas utility to include municipalities and gas districts.
Unless we determine that the Agreement will cause a detriment to the public interest, it should be
approved.1 	Gulf Breeze is a Florida municipal corporation which owns and operates a natural
gas distribution system and has been providing natural gas service since 1964. Its service area
includes portions of Escambia and Santa Rosa counties and currently provides retail natural gas
service to 4,780 customers in Santa Rosa County.
The District is an independent special district created by the Florida Legislature in 1953
to own and operate natural gas transmission and distribution systems in Okaloosa County. 2 	In
2000, the Legislature expanded in Chapter 2000-443, Laws of Florida, the District’s service area
to include portions of Santa Rosa and Walton counties. The District provides natural gas service
to 50,994 residential, commercial, and industrial customers, as well as military installations,
within its entire service area.3 As stated in paragraph 4 of the petition, the District currently
serves 4,798 customers in Santa Rosa County. The District’s member municipalities are
Crestview, Niceville, Valparaiso, and Fort Walton Beach.
In 2021, the Florida Legislature again expanded the service area of the District to include
all of Santa Rosa County with two defined areas excluded. The first excluded area is:
The area within the corporate limits of the City of Gulf Breeze and the area from
the eastern boundary of the corporate limits of the City of Gulf Breeze extending
easterly approximately 11 miles to the line defined as the eastern boundary of
Sections 4, 9, 16, 21, and 28 of Township 2 South, Range 27 West, which extends
north and south from Santa Rosa Sound to East Bay.
The second excluded area (Disputed Area) is:
The area from the line defined as the eastern boundary of Sections 4, 9, 16, 21,
and 28 of Township 2 South, Range 27 West, which extend north and south from
Santa Rosa Sound to East Bay, and extending easterly to the line starting at the
intersection of US Highway 98 and Shannon Drive, going due south to Santa
Rosa Sound, thence turning due north continuing to Manatee Road; thence turning
west 	until 	the 	intersection 	of 	Basswood 	Drive; 	thence 	turning 	north 	until
intersecting the Tom King Bayou tributary south of Cove Road; thence following
1 Utilities Commission of the City of New Smyrna Beach v. Florida Public Service Commission, 469 So. 2d 731 (Fla.
1985).
2 Chapter 29334, Laws of Florida.
3 Response 2 in Staff’s First Data Request, Document No. 11563-2022.

ORDER NO. PSC-2023-0061-PAA-GU
DOCKET NO. 20220158-GU
PAGE 3
this branch northwest to Tom King Bayou, thence north to East Bay is presently
claimed as a service area by the District and by the City of Gulf Breeze and shall
not be deemed to be included or excluded as a service area for the District. The
service rights for this area shall be determined by a final nonappealable order of
the Florida Public Service Commission or any successor agency.
Chapter 2021-262, Laws of Florida 2021 (emphasis added).
In response to our staff’s data request, the joint petitioners explained that historically the
service areas of the two parties have been geographically dispersed such that an agreement was
not necessary.4 However, over the years, as a consequence of natural growth, portions of the
parties’ service areas have begun to converge in southern Santa Rosa County near the Dividing
Line as defined in the proposed Agreement (separating Gulf Breeze and the District’s service
area).
With respect to the Disputed Area referenced in Chapter 2021-262, Laws of Florida, the
parties explained that after discussions among the parties and members of the local legislative
delegation, the Disputed Area was excluded from the service area determination in recognition of
the fact that the City and the District both provided service to the area and claimed certain rights.
Therefore, resolution of service rights was reserved for determination by us.5
A. Proposed Territorial Agreement
The proposed Agreement defines the Parties’ respective service territories in the Disputed
Area by establishing a “Dividing Line” that transects the Disputed Area. The Dividing Line is
shown on composite Exhibit B of Attachment A to this order (page 10 of 10 of Attachment A).
The joint petitioners assert that the proposed new Agreement will formalize the Dividing Line,
comply with the legislative directive, eliminate duplication of service and expenditures, and
avoid the potential for future disputes. The joint petitioners also assert that the proposed
boundary modification will not decrease service reliability to their existing or future customers.
The proposed Agreement will become effective on the day this Order becomes final and
will continue in effect until termination or modification is approved by us or mandated by a
government entity. In response to Commission staff’s data request, the parties confirmed that
there is no specified termination date for the proposed Agreement. 6
B. Infrastructure and Customer Transfer and Notification
The Parties explained in the petition that the Dividing Line in the Agreement has been
drawn to avoid the need to transfer any customers or utility facilities, with the exception of one
residential customer of Gulf Breeze. Pursuant to Section 4(b) of the Agreement, the customer
will be transferred following the effective date of this Agreement and upon written notification
4 Response No. 3 in Staff’s First Data Request, Document No. 11563-2022.
5 Response No. 6 in Staff’s First Data Request, Document No. 11563-2022.
6 Response No. 4 in Staff’s First Data Request, Document No. 11563-2022.

ORDER NO. PSC-2023-0061-PAA-GU
DOCKET NO. 20220158-GU
PAGE 4
from the District stating it is prepared to provide service to the transferred customer. On August
17, 2022, Gulf Breeze notified the customer of the transfer and provided rate comparisons.
Pursuant to the customer notification, the District will waive the $55 service activation fee and
Gulf Breeze will credit the customer’s $50 deposit towards any outstanding amounts due and
refund the remainder.7 The parties assert that they have not received a response or objections
from the customer.
Along with the customer transfer, approximately 1,200 feet of pipeline and associated
infrastructure will be transferred to the District. The District will pay $24,163.05, representing
the depreciated value of the infrastructure to Gulf Breeze.
C. Conclusion
After review of the joint petition and the petitioners’ joint responses to staff’s data
request, we find that the proposed Agreement is in the public interest and will enable Gulf
Breeze and the District to serve their current and future customers efficiently. The proposed
Agreement will define the parties’ respective service areas in southern Santa Rosa County
pursuant to the amended Chapter 2021-262, Laws of Florida, and comply with the legislative
directive that the Disputed Area be determined by a final order by us. Additionally, the proposed
Agreement will avoid duplication of service and mitigate the potential for future disputes.
Therefore, we shall approve the proposed Territorial Agreement between the City Gulf Breeze
and the Okaloosa Gas District in southern Santa Rosa County.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that the proposed territorial
agreement in Santa Rosa County by the City of Gulf Breeze and the Okaloosa Gas District is
hereby approved. It is further
ORDERED that the provisions of this Order, issued as proposed agency action, shall
become final and effective upon the issuance of a Consummating Order unless an appropriate
petition, in the form provided by Rule 28-106.201, Florida Administrative Code, is received by
the Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, by the
close of business on the date set forth in the “Notice of Further Proceedings” attached hereto. It
is further
ORDERED that in the event this Order becomes final, this docket shall be closed.
7 Response No. 5 in Staff’s First Data Request, Document No. 11563-2022.

O RD ER NO. PSC -2023 -006 1-P AA - GU
DOCKET NO .2022 01 58-GU
PAGE 5
By O RD ER of th e Fl o ri da Public Service Commission thi s 23 rd day of Ja nu ar y, 2023.
DD
Flo ri da Pub l ic Serv ice Commission
2540 Shuma rd Oak Bou leva rd
Ta ll ahassee, Flo rid a 32399
(850) 41 3-6770
www.flo ri dapsc.com
Co pi es furni shed: 	A copy of thi s doc um e nt is
prov id ed to the parties of reco rd at the t im e of
iss uance a nd , if app lica bl e, in te rested pe rso ns.
NOTICE OF FURTH ER PROCEE DI NGS OR J UD ICIAL R EV I EW
The Flo ri da Pub li c Se rvice Com mi ssion is required by Sec ti on 	120.569( I ), Flo ri da
Statutes, to noti fy parties of any administrative hea rin g th at is ava il a bl e unde r Section 120.57,
Flor id a Statutes, as we ll as th e procedures and t ime limits th at appl y. 	T hi s notice shou ld not be
constr ue d to mean a ll requests fo r an ad mini str at ive hear in g w ill be gra nt ed or result in the re li ef
so ug ht.
Med iation may be ava il a bl e on a case- by -case bas is. 	If med ia ti on is conducted, it does
not affect a substa nti a ll y in terested per so n's ri g ht to a hea rin g.
The ac ti on pro posed herei n is preliminary 	in nature. Any per so n whose s ub sta nti al
interests are affected by th e ac ti on proposed by t hi s order may fil e a pet iti on fo r a fo rm al
proceedin g, in the form p rov id ed by Rul e 28 -1 06 .20 I, Flo ri da Adm inist ra ti ve Code. 	T hi s
pe tition mu st be rece ived by the Offi ce of Co mmi ssion Cle rk , 2540 Shumard Oak Bo ul eva rd ,
Ta ll ahassee, Flor id a 32399-0850, by t he close of business on Feb ru a1y 13. 2023.
In th e abse n ce of such a petition, thi s o rd er sha ll become fina l and effec ti ve upo n th e
iss uance of a Cons um mat in g O rd e r.
Any o bj ect ion or protest fil ed in t hi s/ th ese docket (s) before th e issuance date of thi s order
is conside red abandoned unl ess it sa ti s fies the fo rego ing cond itions and is renewed wit hi n the
spec ifi ed p ro test pe ri od.

ORDER NO. PSC-2023-0061-PAA-GU DOCKET NO. 20220158-GU
Attachment A Page 1 of 10
PAGE 6
TERRITORIAL AGREEMENT
THIS TERRITORIAL AGREEMENT (this "Agreement") is made and entered into this 31 day of August 2022 by and between the City of Gulf Breeze, a municipal corporation organized and existing under the laws of the State of Florida ("City") and the Okaloosa Gas District, a public body corporate and Independent Special District of the State of Florida ("District"). City and District are hereinafter sometimes referred to singularly as a "Party" and collectively as the "Parties."
WITNESSETH:
WHEREAS, City is a "natural gas utility" as defined in Section 366.04(3)(c), Florida Statutes and is subject to the Florida Public Service Commission's jurisdiction to resolve territorial disputes and approve territorial agreements pursuant to Section 366.04(3), Florida Statutes; and
WHEREAS, District is a "natural gas utility" as defined in Section 366.04(3)(c), Florida Statutes and is subject to the Florida Public Service Commission's jurisdiction to resolve territorial disputes and approve territorial agreements pursuant to Section 366.04(3), Florida Statutes; and
WHEREAS, both District and City are presently providing retail natural gas service to customers in contiguous portions of South Santa Rosa County, Florida; and
WHEREAS, the Parties desire to avoid future unnecessary and uneconomic duplication of natural gas distribution facilities in South Santa Rosa County, which would be contrary to Florida Public Service Commission policies and detrimental to the interests of their customers and the general public, and to expedite the handling of applications for service by future gas customers near such locations; and
WHEREAS, the Florida Public Service Commission is empowered by the legislature of the State of Florida, pursuant to Section 366.04(3)(a), Florida Statutes, to approve and supervise territorial agreements between and among natural gas utilities.
NOW, THEREFORE, in fulfillment of the purposes and desires aforesaid, and in consideration of the 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, agree as follows:
Section 1. Retail Natural Gas Service Areas
(a) This Agreement governs the Parties' furnishing of gas by pipeline for consumption to one or more members of the public in portions of South Santa Rosa County, Florida, inclusive of natural gas, manufactured gas, liquified gas with air mixture, or similar gaseous substances ("Retail Natural Gas Service"). The map attached hereto and incorporated herein as Exhibit "A" depicts boundary lines in portions of South Santa Rosa County delineating the natural gas service area reserved to City and the natural gas service area reserved to District. City's service area is depicted in orange on Exhibit A and consists of all areas within the Fairpoint Peninsula lying west of the Dividing Line as defined below (the "City's Service Area"). District's service area is
- 1

Attachment A Page 2 of 10
ORDER NO. PSC-2023-0061-PAA-GU DOCKET NO. 20220158-GU
PAGE 7
depicted in purple on Exhibit A and consists of all areas within Santa Rosa County east of the Dividing Line that are bordered to the south by Santa Rosa Sound, to the north by East Bay and East Bay River, and to the east by Highway 87 (the "District's Service Area").
City's Service Area and District's Service Area are separated by a dividing line (the "Dividing Line") which Dividing Line is more particularly identified in Exhibit "B" and described as follows:
POINT OF BEGINNING of the "Dividing Line" herein described, also being the northwest corner of Parcel ID 032S270000001050000, said point being at the Mean High Tide of East Bay, in Santa Rosa County, Florida.
From said POINT OF BEGINNING (POB); Thence, running in a southeasterly direction, along the westerly property line to the southwest corner of the of the aforementioned Parcel ID 032S270000001050000; Thence crossing over East Bay Blvd to a point at the northwest corner of Lot 16 Block 110 First Corrected and Amended Plat of Holley-by the Sea as recorded in Plat Book C, Page 166; Thence running in a southeasterly direction to a point at the northwest corner of Lot 15 Block 110 First Corrected and Amended Plat of Holley-by the Sea as recorded in Plat Book C, Page 166; Thence running in a southeasterly direction to a point at the southwest corner of Lot 15 Block 110 First Corrected and Amended Plat of Holley-by the Sea as recorded in Plat Book C, Page 166; Thence running in a northeasterly direction along the boundary of Block 110 as recorded in First Corrected and Amended Plat of Holley-by the Sea Plat Book C, Page 166 to a point at the westerly Right-of-Way of Desoto St. (a.k.a. Candlewood St per First Corrected and Amended Plat of Holley-by the Sea as recorded in Plat Book C, Page 166, said point being further described as the southeast corner of Lot 8 Block 110 as recorded in First Corrected and Amended Plat of Holley-by the Sea Plat Book C, Page 166; Thence running in a northwesterly direction along the Westerly Right-of-Way of Desoto St. (a.k.a. Candlewood St per First Corrected and Amended Plat of Holley- by the Sea as recorded in Plat Book C, Page 166), to a point at the northeast corner of Lot 8 Block 110 as recorded in First Corrected and Amended Plat of Holley-by the Sea Plat Book C, Page 166; Thence running in a northeasterly direction to a point at the northwest corner of Lot 1A Block 111 First Corrected and Amended Plat of Holley-by the Sea as recorded in Plat Book C, Page 166; Thence running in a southeasterly direction along the northerly boundary of Lot 1A Block 111 First Corrected and Amended Plat of Holley-by the Sea as recorded in Plat Book C, Page 166 to a point at the northeast corner of Lot 1A Block 111 First Corrected and Amended Plat of Holley-by the Sea as recorded in Plat Book C, Page; Thence running in a southwesterly direction along the easterly boundary of Block 111 First Corrected and Amended Plat of Holley-by the Sea as recorded in Plat Book C, Page 166 to a breakpoint for Tract 1 First Corrected and Amended Plat of Holley-by the Sea as recorded in Plat Book C, Page 166; Thence running in a southeasterly direction along the northern boundary of Block 111 First Corrected and Amended Plat of Holley-by the Sea as recorded in Plat Book C, Page 166 to a point at the northeast corner of Lot 1-A Block 118 First Corrected and Amended Plat of Holley-by the Sea as recorded in Plat Book C, Page 166; Thence running in a southwesterly direction along the eastern boundary of Block 118 First Corrected and Amended Plat of Holley-by the Sea as recorded in Plat Book C, Page 166, to a point at the southeast corner of Lot 39 Block 118 First Corrected and Amended Plat of Holley-by the Sea as recorded in Plat Book C, Page 166; Thence running in a southwesterly direction to a point at the northeast corner of Lot 40 Block 118 Holley-by the Sea as recorded in Plat Book B, Page 155; Thence running in a southeasterly direction to a point at the northeast corner of Lot 41 Block 118 Holley-by the Sea as recorded in Plat Book B, Page 155; Thence running in a southwesterly direction to a point at the northwest corner of Lot 41 Block 118 Holley-by the Sea as recorded in Plat Book B, Page 155, said
2

ORDER NO. PSC-2023-0061-PAA-GU Attachment A
DOCKET NO. 20220158-GU Page 3 of 10
PAGE 8

Attachment A Page 4 of 10
ORDER NO. PSC-2023-0061-PAA-GU DOCKET NO. 20220158-GU PAGE 9
Party which are now, or which may in the future be, located in the Service Area of the other Party, it being understood that both Parties may continue to construct, own, operate and maintain such facilities in the Service Area of the other Party and elsewhere as permissible under applicable law and as necessary or convenient in connection with their operations; provided, however that each Party shall abide by its obligation to refrain from furnishing Retail Natural Gas Service to customers in the other Party's Service Area.
(e) Both Parties provide Retail Natural Gas Service outside of the City Service Area and District Service Area depicted on Exhibit A. The terms of this Agreement are expressly limited to the Parties' provision of Retail Natural Gas Service within the City Service Area and District Service Area and this Agreement shall have no effect whatsoever on either Party's rights, obligations or ability to provide natural gas service outside of the boundaries of the City Service Area and District Service Area.
Section 2. Exceptions to Exclusive Service Rights
(a) The Parties recognize that in exceptional circumstances, economic constraints or good engineering practices may indicate that a customer within one Party's Service Area either cannot or should not be immediately served by the Party in whose Service Area the customer is located. In such instances, upon written request by the Party in whose Service Area the customer is located, to the other Party, the other Party has the right, but not the obligation, to agree in writing to temporarily provide service to such customer. Any such agreement for temporary service that is anticipated to last more than one (1) year shall be jointly submitted by the Parties to the Florida Public Service Commission (the "Commission") for approval; provided, however, that the Party providing temporary service hereunder shall not be required to pay the other Party for any loss of revenue associated with the provision of temporary service.
(b) The Parties further recognize that economic constraints or good engineering practices may indicate that District is better positioned to provide transmission-level Retail Natural Gas Service to one or more future industrial or institutional customers in City's Service Area. Therefore, upon mutual agreement of City and District, District may provide Retail Natural Gas Service to one or more future transmission-level industrial and institutional customers not presently receiving natural gas services from City. Such agreement, if any, shall be in written form and duly executed by authorized signatories for City and County with citation to this Agreement. For avoidance of doubt, either Party may withhold its consent to such an agreement in such Party's sole discretion.
Section 3. Bulk Gas Supply
This Agreement governs the Parties' provision of Retail Natural Gas Service to end-use customers in their respective Service Areas. Nothing in this Agreement shall be construed to prevent either Party from providing bulk/wholesale gas supply for resale purposes, regardless of where the purchaser for resale may be located. Further, no provision of this Agreement shall be construed as applying to a bulk/wholesale gas supply for resale purposes.
Section 4. Transfer of Gas Infrastructure and Customers
4

ORDER NO. PSC-2023-0061-PAA-GU Attachment A
DOCKET NO. 20220158-GU Page 5 of 10
PAGE 10

ORDER NO. PSC-2023-0061-PAA-GU DOCKET NO. 20220158-GU PAGE 11
Attachment A Page 6 of 10
Section 9. Notices
All notices under this Agreement shall be in writing and must be sent by (i) electronic mail, with an electronic mail delivery receipt, and with the following subject line (in all caps and bold print): NOTICE UNDER TERRITORIAL AGREEMENT; TIME SENSITIVE; (ii) certified mail, return receipt requested, (iii) a nationally recognized overnight courier service, with delivery receipt requested, or (iv) hand delivery, to the parties at the addresses set forth below:
To City:
City Manager City of Gulf Breeze 1070 Shoreline Drive Gulf Breeze, Florida 32561
Emails: sabell@gulfbreezefl.gov; cityclerks@gulfbreezefl.gov
To District:
Chief Executive Officer Okaloosa Gas District 364 Valparaiso Parkway Valparaiso, Florida 32580 Email: GordonKing@okaloosagas.com
Notices shall be deemed given when received on a business day by the addressee. In the absence of proof of the actual receipt date, the following presumptions shall apply. Notices sent by electronic mail shall be deemed to have been received upon the sending party's receipt of an electronic mail delivery receipt. If the day on which such receipt is received is not a business day or, if the receipt is after 5:00 p.m. on a business day, then such notice shall be deemed to have been received on the next succeeding business day. Notice by overnight mail or courier shall be deemed to have been received on the next business day after it was sent or such earlier time as is confirmed by the receiving party. Notice by certified mail shall be deemed to have been received on the third business day following deposit in the mail. A party may from time to time change the address to which notice hereunder is to be sent by providing notice to the other party pursuant to this section.
Section 10. Successors and Assigns
This Agreement, on and after the Effective Date, shall be binding in accordance with its terms upon the Parties hereto and their respective successors and assigns with regard to the retail distribution of natural gas.
Section 11. Counterparts
This Agreement may be executed in one or more counterparts and by original, facsimile or electronic signatures, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.
Section 12. Interpretation/Presumptions
Each of the Parties acknowledges that it has been represented by independent counsel in connection with this Agreement and the transactions contemplated by this Agreement. Accordingly, any rule of law or any legal decision that would require interpretation of any claimed
6

ORDER NO. PSC-2023-0061-PAA-GU DOCKET NO. 20220158-GU PAGE 12
Attachment A Page 7 of 10
ambiguities in this Agreement against the drafting party has no application and is expressly waived.
Section 13. Entire Agreement
This Agreement supersedes any other agreements, whether written or oral, that may have been made or entered into between the Parties concerning the subject matter of this Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and there are no other agreements or commitments with respect such subject matter except as set forth herein.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized officers as of the date and year first above stated.
CITY OF GULF BREEZE,
A Florida municipal corporation
By: Charytatch
Cherry Fitch, Mayor
GUL
EZE
(AFFIX CITY SEANS
CITY
FLORIDA
ATTEST:
1961
Leslie A. Guyer, CMC, City Clerk
OKALOOSA GAS DISTRICT,
By:
Chief Executive Officer
Countersigned
By:
Chairman Board of Directors, Okaloosa Gas District
Approved as to Legality of Form
By:
Attorney, Okaloosa Gas District
7

ORDER NO. PSC-2023-0061-PAA-GU Attachment A
DOCKET NO. 20220158-GU Page 8 of 10
PAGE 13

EXHIBIT A - TERRITORIAL MAP
196
Holley“
90
FAST HILL
East Bay
57
Navarre
98
98
Woodlawn
98
Beach
Butcherpen Cove
Tiger Point
Oriole Beach
199
Gulf Breeze
399
395
Legend
Beach
L
2 mi
CITY S SERVICE AREA
DISTRICTS SERVICE AREA
PAGE 14
Page 9 of 10
Attachment A
DOCKET NO. 20220158-GU
ORDER NO. PSC-2023-0061-PAA-GU
Pensacola
Pensacola Bay

ORDER NO. PSC-2023-0061-PAA-GU DOCKET NO. 20220158-GU
PAGE 15
Attachment A Page 10 of 10
Legend
DIVIDING LINE
SUBSET OF
OGD SERVICE TERRITORY
SUBSET OF
GB SERVICE TERRITORY
OCENA IN
ANGLE RD
EAST BAY
FERRIS OF
EAST BAY BL VD
DESOTO ST
ADMMWAL ST
BRITT: $7
PRO AM CT
BRYANT ST
BUSHTON ST
SHONI DR
AVENIDA DE SOTO
MASTERS BLVD
LOVEWOOD DR
FERN ST
ELBING ST
REEF ST
ALXFORD ST
KEMITON ST
RIVERVIEW ST
BREVARD ST.
SESTA ST
ARWOR LN
QMONT ST
INDIAN ST
SHERWOOD DR
JASPER ST
FLINTWOOD ST
OLYMPIA ST
RTY ST
MENTON ST SUBSET OF OGD SERVICE TERRITORY
SUBSET OF GULF BREEZE SERVICE TERRITORY
SWIPESE DR
KNOX ST
AROADVOOR ST
SAWHISN ST
FRANKFORT ST
MANATEE ST
ALFRED BLVD
CAMIVRUDGE PARK DR
SUNDOWN OR
EAGLE LN
RUIN
WEBSTER ST
SEROSA DR
SUNNY GAK ST
€ SMUGGLERS COVE DA
SOUND RETREAT DR
LILLIAN IN
EAGLE BAY LN
SHELLFISH DR
KOT LN
LEEWOCO LN
SUNCREST ST
DR
NDING SHOP
SANTA ROSA SOUND
N
W
E
Feet
0 1,000 2,000
4,000
6,000
8,000
S
Exhibit "B"
DIVIDING LINE OF OKALOOSA GAS DISTRICT AND GULF BREEZE SERVICE TERRITORY NAVARRE, FL
DATE: 06/28/2022
PUBLISHED BY: DSF
SCALE: 1* = 2,000'
OKALOOSA GAS DISTRICT VALPARAISO, FL
SLA BASS GIR
BRIZA DEL MAR DR
SOUND HAVEN CT
SANDSTONE ST
WATER ST
GULF BREEZE PKWY NAVARRE PKWY
PELICAN LN
ADAM3 ST
REVERT ST
TRUMAN DR
SHANNON RD
ANCHOR OR
FULLER DR
REDFIELD ST
CITRUS OR
HILTON DR
FREEDOM CT
REDBERRY DR
LEISURE ST
LOYSBURG ST
FOREST BAY AV
BELLINGHAM ST
DEASSPORT 1
COVE RD
BREWSTER ST
YORKWDDO ST
IST CT
2ND CT
CODELL ST
HARTLAND ST
FAROMONT ST
UMSO DE VIVOZ
NICKDRY ST LYNN DR
TIDEWATER DR
JOYBOOK AD
EDGEWOOD DR

Attachment B Page 1 of 3
ORDER NO. PSC-2023-0061-PAA-GU DOCKET NO. 20220158-GU
PAGE 16
CHAPTER 2021-262
Committee Substitute for House Bill No. 1633
An act relating to Okaloosa Gas District, Okaloosa, Santa Rosa, and Walton Counties; amending ch. 2000-443, Laws of Florida; revising the territorial limits and area of service of the district to include all of Santa Rosa County and all of Walton County; providing exceptions; revising the membership of the Board of Directors to include one member appointed by each of the Board of County Commissioners of Santa Rosa and Walton Counties; revising the director's fee for each meeting attended by a member of the Board of Directors; providing an effective date.
Be It Enacted by the Legislature of the State of Florida:
Section 1. Sections 3 and 8 of section 2 of chapter 2000-443, Laws of Florida, are amended to read:
Section 3. Area of service .- The territorial limits and area of service of the District shall be Okaloosa County, Florida, and the following described areas in Santa Rosa County, Florida, and Walton County, Florida, to-wit:
(1) In Santa Rosa County, all of Santa Rosa County an area 20 miles wide, extending from the eastern boundary of Santa Rosa County, to the western boundary of said county, the center line of which shall be the presently existing transmission line of the District, excepting, however, from the above described area of Santa Rosa County:
(a) The area within the corporate limits of the City Town of Milton and the surrounding territory presently served by the gas distribution system of said city town; however, nothing in this act shall be construed to restrict or limit the City of Milton's right to serve gas customers within its territorial grants and in all areas where the district territories overlap with territories of the City of Milton authorized by chapter 61-2489 and chapter 71-773, Laws of Florida;
(b) The area adjacent to State Highway 87 (Brewton Highway) from the intersection of said highway and the transmission line of the District northerly along said highway for a distance of 2 miles;
(c) The area adjacent to the New Chumuckla Highway from the intersection of said highway and State Highway 87 (Brewton Highway) westerly along said New Chumuckla Highway for a distance of 2 miles; and
(d) The area adjacent to said Highway and the transmission line of the District east of Milton, in a westerly direction along said Highway 90 to the corporate limits of the City Town of Milton ;-
(e) The area within the corporate limits of the City of Gulf Breeze and the area from the eastern boundary of the corporate limits of the City of Gulf
1
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Attachment B Page 2 of 3
ORDER NO. PSC-2023-0061-PAA-GU DOCKET NO. 20220158-GU
PAGE 17
Ch. 2021-262
LAWS OF FLORIDA Ch. 2021-262
Breeze extending easterly approximately 11 miles to the line defined as the eastern boundary of Sections 4, 9, 16, 21 and 28 of Township 2 South, Range 27 West, which extends north and south from Santa Rosa Sound to East Bay;
(f) The area from the line defined as the eastern boundary of Sections 4, 9, 16, 21 and 28 of Township 2 South, Range 27 West, which extends north and south from Santa Rosa Sound to East Bay, and extending easterly to the line starting at the intersection US Highway 98 and Shannon Drive, going due south to Santa Rosa Sound, thence turning due north continuing to Manatee Road; thence turning west until the intersection of Basswood Drive; thence turning north until intersecting the Tom King Bayou tributary south of Cove Road; thence following this branch northwest to Tom King Bayou, thence north to East Bay is presently claimed as a service area by the District and by the City of Gulf Breeze and shall not be deemed to be included or excluded as a service area for the District. The service rights for this area shall be determined by a final nonappealable order of the Florida Public Service Commission or any successor agency; and
(g) The area within the corporate limits of the Town of Jay and the existing customers presently served by the gas distribution system of said town.
(2) In Walton County, all of Walton County extending from the eastern boundary of Walton County to the western boundary of said county, excepting, however, from the above described area of Walton County, that area lying south of the section lines commencing at the Western Boundary of Walton County at the Northwest corner of Section 31, Township 4 North, Range 21 West and running easterly along the northern section lines of Sections 31, 32, 33, 34, 35, and 36 of Township 4 North, Range 21 West, Sections 31, 32, 33, 34, 35, and 36 of Township 4 North, Range 20 West, Sections 31, 32, 33, 34, 35, and 36 of Township 4 North, Range 19 West, and Section 31, 32, and 33 of Township 4 North, Range 18 West, ending at the Eastern Boundary of Walton County located at the Northeast corner of Section 33, Township 4 North, Range 18, south to the current gas distribution system of the City of DeFuniak Springs, the area within the corporate limits of the City of DeFuniak Springs and the customers served by the gas distribution system of said city. However, should the District request in writing to the city and the city agrees through written agreement, the District is authorized to serve any mutually agreed portion of the excepted area above the area shall be all of that portion of Walton County lying south of Highway 20 and 10 miles north of Highway 20.
The District may acquire a supply of gas either within or without the District's territorial limits and area of service and may transport and transmit gas from the point of such acquisition to the system or systems of the District. The District may also sell and transport gas for delivery beyond the territorial limits and area of service of the District and acquire, finance, operate, maintain, extend, and improve gas transmission lines, laterals, and facilities beyond the territorial limits and area of service of the District for such purposes and also for the purpose of making direct sales to industrial
2 CODING: Words stricken are deletions; words underlined are additions.

ORDER NO. PSC-2023-0061-PAA-GU DOCKET NO. 20220158-GU
Attachment B Page 3 of 3
PAGE 18
Ch. 2021-262
LAWS OF FLORIDA Ch. 2021-262
and institutional users and to line tap commercial and residential users, but the District shall not acquire, construct, own, or operate any gas distribution system in any area other than within Santa Rosa, Okaloosa, or Walton Counties the territorial limits and area of service of the District as provided in this section, unless authorized by special act of the Legislature to do so.
Section 8. The Board of Directors .- The District shall have a Board of Directors, consisting of one member of each member municipality and one member appointed by the Board of County Commissioners of Okaloosa, Santa Rosa, and Walton Counties County, to represent the interest of the unincorporated areas and the interest of the nonmember cities. The member for each member municipality shall be appointed by the governing body of such member municipality and the Board of County Commissioners of the respective counties Okaloosa County shall appoint one member from each county. The member shall serve for a term of 4 years and until his or her successor is appointed in like manner and qualified. Appointments to fill a vacancy shall be for the unexpired term. The representative of each municipality may, but need not be, the mayor or chief executive officer of such municipality and the member appointed by the Board of County Commissioners of Okaloosa County may, but need not be, an elected official, except and provided that no member of the Board of County Commissioners of Okaloosa County shall serve in such capacity. The members of the Board of Directors shall serve without compensation, except that they shall be reimbursed for actual expenses incurred in and about the performance of their duties thereunder and, at the discretion of the Board of Directors, they may be paid a director's fee of not exceeding $244 $25 for each directors' meeting attended by them, not exceeding one meeting during each calendar month. The appointing authority may remove any member of the Board of Directors within the term for which such member shall have been appointed for malfeasance or misfeasance in office or other just cause after giving to such member a copy of the charges against him or her and an opportunity to be heard in his or her defense.
Section 2. This act shall take effect upon becoming a law.
Approved by the Governor June 29, 2021.
Filed in Office Secretary of State June 29, 2021.
3
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