“As I read the All Requirements Project contract, it reminded me of a medieval contract for marriage,” Utility Commission Chairman Scott Stradley said during a 15 minute presentation he gave at Tuesday’s meeting of the Commission.
Stradley explained the city’s potential liability associated with interest rate swaps taken out by the FMPA to build a new power plant in Taylor County. Because the Taylor County plant was never built, and because rates have fallen since the FMPA speculated on interest rates futures, Vero Beach may have to share in the cost of settling the Taylor Swaps. The potential liability to the city is some $10 million.
“I think it is important that we understand that the FMPA has a pattern of speculating in the derivatives market, and I personally find that unbelievable that they would do that with our money,” Stradley said.
“Fundamentally, we need out of the FMPA,” Stradley added.
At Stradley’s encouragement, the Commission voted to advise the City Council to “harden its resolve” to leave the FMPA.
Whether the less-than-diplomatic haranguing Stradley directed toward the FMPA atop his Utility Commission soap box proves helpful to the negotiations, only time will tell.
Indian River Guardian 
Oh, this is rich!! And what about the nuclear plants [plural] in which FPL is speculating and all customers are paying for? Same same, but this “expert” wouldn’t know that.
Lynne Larkin is absolutely correct. The taxpayer funded subsidy that FP&L gets because of a promise to consider building more nuclear power plants is an outrage. The taxpayers should be demanding that the Florida legislature repeal the gift because the likelihood of another nuclear power plant being built in this country is slim to none. The 1978 Three Mile Island accident was the death of nuclear power as an energy source in this nation.
Frankly, I’d like to know when Mr. Stradley became knowledgeable on the subject of “medieval contracts for marriage.” Yes, I do recall reading on more than one occasion about the “prepaying” FPL customers were having to do toward possibly building new electric facilities.
When negotiating with someone for a favor from them it is always better to be calling them names and hardening your position. This works even better when you are less knowledgable on the subject than they are.