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RESOLUTION NO. 2011-026 1. Recitals. The findings set forth in the "whereas" clauses above are true and correct and are hereby adopted as the findings of the Board. 2. Position of the Board following positions: The Board hereby adopts and publishes the a. Higher Rates. The higher rates charged by the City of Vero Beach electric system are taking substantial funds out of the hands of local residents — estimated at $16,000,000 per year, approximately $9,760,000 (61%) of which is taken from non-resident customers. These higher rates are having a negative impact on the local economy and are impeding economic development and recovery efforts. Given the apparent willingness of FPL to serve City customers, these impacts are unnecessary; b. Subsidy Practice. The subsidy practice of the City of Vero Beach places an unfair burden on non-resident customers who pay approximately $3,660,000 (61%) of the $6,000,000 transferred each year from the City electric system to the City general fund. This practice amounts to "taxation without representation" for non-resident customers; CM Sale of System. On April 4, 20111 FPL submitted a letter of intent expressing its interest in purchasing the City electric system for a cash payment of up to $100 million. The Board urges the City Council seriously to consider the transaction proposed in the letter of intent. To the extent the transaction impacts non-resident customers of the City electric system, the Board offers its support and assistance to FPL and the City with respect to negotiations for a definitive agreement. If a definitive agreement is reached, and if the agreement provides for FPL rates for City customers which are consistent with FPL's rates to its other customers, the Board urges the PSC to approve the agreement and include County areas now served by the City within FPL's new service area; d. Change in City Practices. If a sale of the City electric system to FPL does not occur, the Board urges the City Council to (i) reduce electric rates to the lowest level possible, consistent with prudent practices, and (ii) stop the subsidy practice which places an unfair burden on non-resident customers; e. PSC Case. The Board supports the positions asserted by Dr. Stephen J. Faherty, Sr. and Glenn Heran in the PSC case. If a sale of the City electric system to FPL does not occur, the Board urges the PSC to accept jurisdiction of the issues raised and to take appropriate action to protect non-resident customers of the City electric system from the unfair subsidy burden which they currently endure; .3-