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RESOLUTION 2011 = 026 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, SETTING FORTH THE BOARD'S POSITION ON CERTAIN ISSUES RELATING TO CITY OF VERO BEACH ELECTRIC SYSTEM WHEREAS, on November 3, 1981, the Florida Public Service Commission ("PSC") approved a Territorial Agreement between the City of Vero Beach ("City") and Florida Power & Light ("FPL") which established electric service areas for the City and FPL in Indian River County. Specifically, the electric service area for the City was defined to include the City itself, the Town of Indian River Shores, the south barrier island, and other unincorporated areas of the County, and the service area for FPL was defined to include all other areas of the County; and WHEREAS, the demographics of Indian River County have changed significantly since approval of the Territorial Agreement. In 1981, approximately 10% of the City's customers were located outside City limits ("non-resident customers"). Today approximately 61% of the City's customers are non-resident customers. Specifically, the City has approximately 34,000 total customers, of which approximately 21,000 are non-resident customers. This percentage of non-resident customers (61%) is believed to be the highest percentage of any municipal electric system in Florida; and WHEREAS, the City's rates on average over the past ten years have been 23% higher than FPL's rates, resulting in a substantial rate disparity for County residents served by the City, compared to those served by FPL. Current residential rates per 1000 KWH, as set forth in the most recently available data, are 22.1% higher than FPL's rates. When the rate disparity is applied to all City customers (resident customers and non-resident customers), approximately $16,000,000 in additional electric charges are paid each year compared to the amount customers would pay if served by FPL. Approximately $9,760,000 of this amount (61%) is paid by non-resident customers. These additional payments take substantial funds out of the private sector of the local economy and have a negative impact on economic development and recovery efforts in Indian River County; and WHEREAS, the City uses its electric system to subsidize its general fund and reduce taxes for City residents. Specifically, the City transfers approximately $6,000,000 from its electric system to its general fund each year. Non-resident customers pay approximately $3,660,000 of this amount (61%), resulting in a form of "taxation without representation"; and