Editor’s Note:  In 2002, Florida Power & Light offered $115 million for Homestead Energy Services,  an offer amounting to $6,886 per customers for a 16,700 customer utility.  At least according to documents filed with the Federal Energy Regulatory Commission, FPL has offer just under $115 million for Vero Electric, a utility with a customer base of 33,000.    At $6,886 per meter, FPL would be paying $220 million for Vero Electric.  Some are wondering if Vero Beach may have left some $100 million on the table.

by Deborah Cicelli, Palm Beach Post (July 19, 2002)

JUNO BEACH — Florida Power & Light Co. said Thursday that it has made a $115 million bid to buy out the city of Homestead’s electrical utility.

If the deal goes through it will be the first time in a least 35 years the giant utility, a subsidiary of FPL Group Inc. (NYSE: FPL, $52.39), has bought a municipal utility, according to an FPL spokesman.

Homestead City Manager Curt Ivy said the city has asked FPL to come back with a revised proposal by Sept. 1, however. FPL was offering to pay $7 million to $9 million immediately for some of Homestead’s assets, which the city believes are worth more.

The bid for Homestead Energy Services includes buying out existing power contracts. FPL would also take over 16,700 customers and buy most of the city’s assets such as powerlines, poles, transformers, substations and customer accounts.

The Homestead electric utility’s 65 employees would be offered jobs if they qualify, and FPL would pay the city severance costs for employees who are not hired.

The deal will not include buying the utility’s approximately 50-megawatt power plant, which FPL officials said is outdated and would be inefficient to operate.

Read More:

http://homesteadishome.blogspot.com/2012/12/in-2002-city-council-rejected-fpls.html?q=FPL