Honorable Ashton Hayward ‘The City of Pensacola 222 West Main Street Pensacola, FL 32502 Re: Pensacola Energy Dear Mayor Hayward and Members of the City Council On behalf of the Escambia County Commission, | send this fetter in response to recent media reports regarding Pensacola Energy's dealings with our local plumbing industry. The sole purpose of this letter is to request information regarding Pensacola Energy's program of maintaining agreements with selected plumbers, as well as the reported proposal to bring plumbers in-house at Pensacola Energy. Its the County Commission's understanding that in ether instance, these plumbers are used to perform work that is downstream of the natural gas meter, meaning work inside homes and businesses such as installation of appliances, The County Commission is very concemed with how this may impact the plumbing industry in unincorporated areas of the County. itis cour desire that we can have an open and transparent exchange of information and amicably resolve this issue [As you are aware, on July 11, 2013 the Board of County Commissioners voted unanimously to renew a natural gas franchise agreement withthe City forthe unincorporated areas of the County. This exclusive agreement runs through 2045 and anticipates the possibilty of a 50-year extension. Clearly, this partnership has been a fruitful one for many years and it allows for the option of natural gas services for our citizens in the unincorporated part of the County. The arrangement financially benefits both the City ‘and County. However, tis our understanding that Pensacola Eneray is using a select vendor list ‘of contracted plumbers who the City encourages be used for appliance installations, primarily water heaters. It is our concern that the agreements with these plumbers provide ‘or lower installation rates than the private market would normally bear. Assuming ths is true, it ikely creates a situation where the plumbers not on the selected vendor list simply cannot compete. Additionally, we understand that as an altemative, Pensacola Energy is proposing to hire in-house plumbers who would earn government salaries to provide services downstream of gas meters, such as appliance installations. If so this wouldpossibly eliminate the need for private sector plumbers to perform natural gas related services inside private homes and businesses. The County Commission is gravely concerned that regardiess of whether Pensacola Energy uses a selected vendor list or it employs in-house plumbers, addressing services in private homes and businesses unfairly competes with the private sector. While the County Commission understands that the goal of Pensacola Energy is to get more customers on natural gas as opposed to electricity, Pensacola Energy is still owned and operated by the government. Practices of private utlities do not necessarily translate to those that should be practiced by government-owned utilities. Therefore, the County Commission respectfully requests that the City engage in a dialogue on this issue. To that end, the Commission asks that the City respond to the following two questions: 1. Can you explain how either hiring in-house plumbers or using selected vendors to Perform appliance installations ot other services downstream of the gas meter does not result in unfair competition with the private sector? 2. Is it appropriate for government owned Pensacola Energy to compete with the private sector by providing services that are downstream of the gas meter? The County Commission requests a reply by close of business on Friday, January 27, 2017, in order to have it prior to the joint City-County meeting scheduled for January 30, 2017.