Is Vero Beach just a pawn in a state-wide chess game?

MARK SCHUMANN

Florida Power & Light President Eric Silagy
Florida Power & Light President Eric Silagy

Given the mixed signals coming from top executives of Florida Power & Light, officials at some municipally owned utilities now wonder if they will be in crosshairs next, once the utility giant pulls the trigger on its acquisition of Vero Electric.

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In an article published in the March issue of Florida Trend magazine  FLP Vice President Pamela Rauch insisted the company has no strategy for acquiring municipal utilities.  Just last week, though, FPL Chief Executive Officer Eric SIlagy told a group of investors the company has a number of ways to grow revenue, including acquire new customers.

One slide Silagy presented at the NextEra Energy investor conference indicated FPL has “opportunities to potentially serve others within the state.”  Silagy went on to explain that there are 34 municipally owned electric utilities and 16 cooperatives in Florida, all representing potential for “geographic expansion through acquiring municipals and coops and wholesale sales.”

The FPL chief added, “One of the things that’s happened is I’ve now got the governor of Florida going around to the munis saying,’Why aren’t you selling yourself to FPL?”

Governor Rick Scott’s press office has declined to confirm or deny that the governor is making any effort to round up more customers for FPL in the name of “rate competitiveness,” as Silagy put it.

Vero Beach City Council member Pilar Turner plans to soon begin visiting all 14 member cities in the Florida Municipal Power Agency’s All Requirements Project in hopes of persuading them to grant Vero Beach a waiver allowing the city to end its participation in the consortium before October 1, 2016.  The success of Turner’s efforts may depend on how compelling a case she can make for the remaining ARP cities to agree to contract changes that may lead to the unraveling of the FMPA.

According to Turner, she has been working with Vero Beach utility activist Glenn Heran to develop a strategy for her 14-city tour.   Heran has on numerous occasions publicly argued that the FMPA is “an institution of inefficiency that can no longer justify its continued existence.”  Given Heran’s antipathy toward FMPA, if Turner takes him along on her “goodwill” tour, she may receive a cold reception in cities where leaders are still committed to municipal power.

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