William J. Brennan, Jr.

“ Since we conclude that substantial evidence supports the findings of the Commission that benefits will accrue to Florida Power from the interconnection, we have no occasion to decide whether the Commission in ordering the interconnection of two electric power companies, may properly condition the interconnection when one party receives no benefits, upon compensation terms based on the relative burdens that each places on the interconnected network. ”

“ Since time is required to start up equipment that is not operating, a certain amount of equipment must be maintained in such a state that it can begin generating power immediately. The industry calls these instantaneous or 'spinning' reserves, and they must be available to meet load variations and breakdowns of equipment as they occur. A utility must always maintain 'spinning' reserves equal to the size of the largest generator currently in service producing power, in order to protect against a breakdown of that unit. ”

“ Merely because the Commission argued that on its view of the legal question involved, findings of benefits were unnecessary to its decision does not render them any the less findings on the question of benefits. A reviewing court should hardly complain because an agency provides more analysis than it feels is absolutely necessary. ”

“ For this reason, generating facilities cannot be maintained on the basis of a constant demand. Rather, the utility's generating capability must be geared to the utility's peak load of demand, and also take into account the fact that generating equipment must occasionally be out of service for overhaul, or because of breakdowns. ”

“ The small system receives high benefits and, because of its size, no real obligations. The large system, however, receives no benefit but does incur real substantial responsibilities. Such imaginary equity is not reasonable compensation.' 425 F.2d, at 1203.
The validity of this conclusion, however, depends upon whether the court correctly read the record as showing that Florida Power 'receives no benefit' and that Gainesville incurs 'no real obligations.' [6] The Commission's findings are squarely contrary. ”

“ Thus an interconnection was necessary if Gainesville was to avoid having to make a still greater investment in generating equipment.
Florida Power Corporation operates a major electric generation, transmission, and distribution system serving 370,000 retail customers in a 20,600-square-mile system serving 32 counties in central and northwest Florida, including Alachua County. It also supplies power at wholesale to 12 municipal distribution systems and 9 REA cooperatives. In 1966, Florida Power had an aggregate generating capability of 1595 mw and experienced a peak load of 1232 mw. ”

“ In its original opinion and in its opinion denying rehearing, the Commission specified the benefits that it found Florida Power would gain from the interconnection, as set out in the margin. [5] On the basis of these findings, the Commission concluded that no standby charge should be imposed on either party to the interconnection. Thus, under the terms of the Commission's final order, each party pays only for the power actually received from the other, and each party is obligated to deliver power only on an 'as available' basis. ”

“ See n. 3, supra. All five of these utilities constitute the Florida Operating Committee, which, though informal in nature, serves as a medium through which the technical operations of its members are coordinated. ”