FPL Group, Inc. & Subsidiaries - Page 159

                                       - 44 -                                         
          management and energy conservation programs designed to meet the            
          FPSC mandated goals.”47  The study recommended, inter alia, that            
          FPL procure and install a bidirectional communication system to             
          implement load control.  In addition to the study, FPL published            
          a technical report that detailed the project expenditures by                
          year.                                                                       
               In November 1983, FPL prepared a technical specification               
          that detailed how the LMS was supposed to work, its properties,             
          and its requirements.48  FPL used the technical specification to            
          secure bids from vendors to build the LMS.                                  
               On October 4, 1985, FPL entered into an agreement (the LMS             
          contract) with A.B. Chance Load Management Systems (A.B.                    
          Chance).49  An FPL purchase order incorporated into the LMS                 
          contract acted as A.B. Chance’s authority to “furnish the Phase I           


               47 For example, the FPSC’s Sept. 17, 1980, order proposing             
          rules included goals to “reduce the average annual growth of                
          kilowatt demand * * *.  The specific goals for the 1980-85 period           
          are to reduce growth rates so that the total KW demand in 1985              
          does not exceed that of 1984 by more than 2.212%”.                          
               48 The technical specifications included a “tentative                  
          delivery schedule” for the years 1985 through and including 1992.           
          Mr. Garcia testified:                                                       
               we knew that we were going to go long term with the                    
               system and that, because of the nature of it, you had                  
               to go with one vendor.  This is what the vendor was                    
               told and he was given the scope of the project and the                 
               values that we were talking about in order to submit an                
               accurate bid.                                                          
               49 Mr. Garcia testified that FPL’s technical specifications            
          were incorporated into the LMS contract.                                    




Page:  Previous  34  35  36  37  38  39  40  41  42  43  44  45  46  47  48  49  50  51  52  53  Next

Last modified: May 25, 2011