Subject:
Title
Agreements and disclosures with Duke Energy for Interruptible General Service - Rate Schedules Interruptible Services-2 and Interruptible Services Tier-2 at the William E. Dunn Water Reclamation Facility.
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Recommended Action:
Recommended Action
Approval of the agreements and disclosures with Duke Energy for Interruptible General Service - Rate Schedules Interruptible Services-2 and Interruptible Services Tier-2 at the William E. Dunn Water Reclamation Facility.
• Agreements allow the Dunn facilities to continue benefiting from Duke Energy’s Interruptible Service Program, providing substantial monthly savings.
• Three agreements and three disclosures are for north and south onsite, and one offsite facility locations.
• Two Capital Improvement Projects that are already budgeted in the Fiscal Year (FY) 2026 Adopted Budget, W.E. Dunn Electrical Improvements and W.E. Dunn Off-site Reclaim Pump Station Improvements, involve relocating transformers. This triggers new accounts that require signed documents for interruptible service.
• Entering into these agreements, by themselves, does not cause any additional fiscal impact on Pinellas County. The estimated annual operating savings of $144,000.00 due to these agreements were not anticipated in the FY26 Adopted Budget in the Utilities Department. The agreement has a five-year term that expires April 30, 2031.
PID No. 003409A and 003747A; savings is approximately $48,000.00 annually per transformer, totaling an estimated $144,000.00 per year for a five-year period; Agreements expire April 30, 2031.
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Strategic Priorities:
Resilient Infrastructure and Environment
1.2: Maintain and enhance County infrastructure.
1.6: Ensure sustainable water management.
Healthy and Safe Communities
2.2: Enhance community safety.
Smart Service Delivery
4.1: Optimize County energy use.
4.4: Pursue continuous improvement.
Summary:
Summary
Approving these Agreements allow the Dunn facility to continue benefiting from Duke Energy’s Interruptible Service Program. The Program provides monthly savings whether interruptions occur or not and helps Duke manage peak demand, passing savings to customers who agree to curtail load during emergencies. The five (5) year Agreement term commences May 1, 2026, and expires April 30, 2031.
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Background Information:
The Dunn facility has historically participated in Duke Energy’s Interruptible Service Program. The need for new agreements arose because two (2) CIP projects involve relocating transformers, triggering new accounts that require signed documents to select interruptible service. The projects impacted are Dunn Electrical Improvements and the Offsite Reclaim Pump Station Improvement.
Fiscal Impact:
Based on IST-2 rate schedules, the County is expected to save approximately $48,000.00 in electric utility costs annually per transformer. Annual savings total an estimated $144,000.00 per year for all three (3) transformers. Savings are primarily derived through interruptible demand credits and lower energy charges compared to standard rates. Interruptible rates reduce monthly bills and provide credits regardless of interruptions.
Funding for the two capital improvement projects is included in the FY26 Adopted Budget for the Utilities Department within the Sewer Renewal and Replacement Fund. The combined project budgets total $39,353,815.30 in the FY26-FY31 Capital Improvements Plan.
Staff Member Responsible:
Jeremy Waugh, Director, Utilities
Partners:
Duke Energy
Attachments:
Dunn North Facility - Agreement
Dunn North Facility - Disclosure
Dunn South Facility - Agreement
Dunn South Facility - Disclosure
Dunn Offsite Facility - Agreement
Dunn Offsite Facility - Disclosure
Duke Energy Interruptible Program Overview
Project Location Map
IS-2 Rate Tariff 2026-01-01
IST-2 2026-01-01