10/28/2014 - Laserfiche WebLink

Home Browse Search

the discussion today should not be focused on what rate reduction is being considered, but what actions the Town and City could take together that would allow a parting of ways with respect to the electrical service in the most cost effective manner. He hoped that the City would be able to develop new ideas to close the sale to FPL, or bring its electric rates to parity with FPL on a long-term basis. He advised the City to plan accordingly, because after the Franchise Agreement expires in 2017, the Town may not be using Vero Beach's electric utility. 9:43 B. CHAIRMAN OF INDIAN RIVER COUNTY BOARD OF COUNTY a.m. COMMISSIONERS Chairman O'Bryan briefly remarked on the lawsuit, and agreed with Mayor Barefoot's comments. He outlined the Board of County Commissioners' position, saying that the Board had been very clear for the last five years, that a full and complete sale of the City of Vero Beach electric utility to FPL would be the best option, and that it would provide all County residents within the municipalities of the unincorporated County with a fair and reasonable rate structure. In the event the sale cannot be completed, the Board requested that the City provide the following functional equivalence of the sale under the following principals: (1) charge a rate substantially equal to those of FPL; (2) cease the subsidy for the City's General Fund from the City electric utility; and (3) form a governing Board with full and complete authority over the electric utility that fairly and proportionately represents the geographic makeup of the City of Vero Beach electric utility customer base. 9:45 C. MAYOR OF CITY OF VERO BEACH a.m. Mayor Winger, speaking for himself as Mayor, not the City Council, said he was advised by his attorneys not to speak, and would leave the details to the attorneys and the City Manager. He was aware that if this dispute goes to Court, absolute accuracy would be imperative, so he would defer questions to them; however, he made the following points: (1) In January, the City had a 1.2% rate reduction, and in June a 4.2%, reflecting the 2014 commitment to lower rates as soon as possible. He was confident that potential actions would result in similar modest rate reductions; (2) The key element in the FPL sale would be to find a buyer for 40% of the power and take or pay for FMPA under contract. He reported that they had a buyer for the FMPA contract at one time, but they withdrew in June, so at this time there were no other buyers. He recounted that in April 2008, the City entered into a long-term contract with OUC for the remaining 60%, which took effect in January 2010 and expires in December 2029; (3) On July 14, 2014, the partners at FPL and OUC agreed that the City could negotiate lower costs against the OUC contract while maintaining the FPL Sales Agreement in force until December 2016, even though the City was still contracted to OUC until December 2029. Joint Public Meeting October 28,2014 Page 5