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Winter Park Picks ENCO to Operate New Municipal Utility
08/09/04
The city of Winter Park, Fla., has chosen a California company, ENCO Utility Services, to operate the new municipal electric utility the city is forming. The Winter Park City Commission on July 26 gave the go-ahead for the city to begin contract negotiations with ENCO, which is based in Anaheim, Calif. ENCO Utility Services, formerly Edison Utility Services, has a 17-year contract to operate the recently formed municipal electric utility in Moreno Valley, Calif.

A subsidiary of North Carolina’s Shaw Group was the only other contender to operate the distribution system Winter Park is buying from Progress Energy Florida, said Assistant City Manager Randy Knight. ENCO and Shaw Energy Delivery Services responded to a request for proposals the city issued in May. City officials selected ENCO as the firm best qualified for the job, Knight said. Negotiations between the city and ENCO will start next week, he said. The City Commission is expected to approve a manager for the new electric department when it meets on Monday, he said.

Winter Park residents have complained about poor electric service from Progress Energy Florida and its predecessor, Florida Power Corp. They turned out in droves last September and voted 69%-31 percent in favor of a referendum authorizing the city to issue $50 million in bonds to buy the distribution system.

Several other cities in Florida that are served by Progress Energy Florida also are interested in the possibility of forming municipal utilities. Winter Park’s neighbor, Maitland, is one of them. The Maitland City Council voted Aug. 2 to invoke the right it has under its franchise with Progress Energy Florida to buy the local distribution system, and to begin arbitration proceedings over the price.

ENCO, which operates a utility in Arizona as well as the municipal utility in Moreno Valley, Calif., is exploring opportunities for similar contracts to provide energy services in other areas of the country, including Florida and Iowa, said Jack Stermer, the company’s vice president for sales and marketing.

—Public Power Daily