COMMENTARY

MARK SCHUMANN

Indian River Shores Town Councilman Dick Haverland was quoted in the island press this week as saying, “Now, I’m hearing this thing (the sale of Vero Electric) could drag on to 2016.”

Though the members of the Indian River Shores Town Council may be growing impatient with the slow pace of negotiations between Florida Power & Light and the Florida Municipal Power Agency, it is worth remembering that last March they encouraged Vero Beach voters to approve a sales agreement with FPL that provides for a closing as late as Dec. 31, 2016.

Haverland’s quote appeared in a story reporting on the Town Council’s increasing concern that the sale of the electric system may not move along as quickly as had been promised by spokespersons for FPL.  As recently as early November, while out campaigning for Tracy Carroll, FPL spokesperson, Amy Brunjes, was repeating an FPL talking point about how the company remains confident in closing on the deal by the end of 2014.

Not likely!

If Haverland and his fellow town council members are only “now” learning that Vero Beach’s contractual obligations to the FMPA will delay a closing until late 2016, then they have either chosen to believe only what they want to believe, or they are living in a news bubble created by the barrier island media.

Off the barrier island and out in the larger world, other media have for more than a year consistently reported that Vero Beach is not likely to be given a waiver to leave the FMPA’s All Requirements Project before Oct. 1, 2016.

“Now, I’m hearing…,” Haverland said.   This statement suggests Haverland is suffering from epistemic closure, a condition that can only be cured by broadening one’s reading list.

Haverland also suggested it might be possible to negotiate with the City of Vero Beach to offer FPL rates to customers in Indian River Shores.  The math just doesn’t work on that idea.  Vero Electric is transferring six percent of its revenue to the general fund while charging rates 25 percent higher than FPL.  Haverland’s proposal would leave Vero Electric with a loss of some 19 percent on its Indian River Shores customers.   That the City of Vero Beach could afford to serve some of its wealthiest customers at a 19 percent loss seems unlikely, if not unfair and unrealistic.

Utility activist, Glenn Heran, the Johnny Appleseed of discontent, was present at a recent Indian River Shores Town Council meeting spinning a storyline about how the defeat of Tracy Carroll and the “elevation” of Jay Kramer to Vice Mayor dooms the sale of Vero Electric to a slow death. If the sale cannot be concluded, it will only be because Vero Beach’s contractual obligations to the FMPA may prove too costly for FPL to absorb.  An answer to that question is likely by sometime early next year.

Heran seems to believe the Vero Beach City Council can and should do more that stand ready to honor the sale contract approved by voters last March.  But the fact remains that if the city spends another dime on the transaction it will be left empty handed.

Should the current sales agreement prove impossible to implement, Heran and others, many of whom have repeatedly dismissed a partial sale, will be all over the idea like white on rice.  In truth, Heran is not opposed to a partial sale,  In fact, he and Dr. Stephen Faherty have already appealed to the Florida Public Service Commission to re-draw Vero Beach’s service territory to exclude Indian River Shores, the south barrier island, and the unincorporated area of the mainland now served by Vero Electric.

Recently, Heran was successful in convincing the Indian River County Commission to spend $78,000 on a lobbying effort that will only serve to make it that much more difficult for the FMPA to agree to the sale.  One might hope and expect the members of the Shores Town Council would prove wiser.

Everyone who advocated following the current path either knew, or should have known the process of reaching an accommodation with the FMPA would take patience and time.  It is now time to be patient.  If and only if the current sales agreement proves impossible to implement will it be appropriate to begin pressing Vero Beach to sell its county customers to FPL.