STAFF REPORT
Though is has been widely reported and expected that the Florida Municipal Power Agency board of directors would discuss at its meeting next Thursday an agreement to enable the sale of Vero Electric to move forward, it now appears that discussion will have to wait until late February, with a final decision held up until late March at the earliest.
According to sources at the FMPA, the agency has yet to hear back from representatives of Florida Power & Light on whether the company will accept the terms of the agreement as proposed Dec. 6. The delay indicates FPL may need more time to consider the FMPA’s offer, or that the company is exploring other options.
In a letter to the editor published in the Press Journal, FMPA general manager and CEO, Nicholas Guarriello wrote, “It became clear to Vero and FPL in spring 2013 that the IRS’ private use regulations might not permit OUC to sell Vero’s Stanton and Stanton II coal power to FPL for three years, as had been planned. To avoid IRS regulations, FPL made a proposal to FMPA on Aug. 20 that, among other things, would have FMPA take the Stanton power, replacing the signed contracts between OUC and FPL for the 3-year sale of the Stanton and Stanton II coal power.”
Guarriello continued, “However, FPL’s proposal to FMPA contained an important blank; it left unspecified the dollar amount that FPL would pay for FMPA to purchase the Stanton coal power from OUC. FPL requested that FMPA determine the dollar amount that FMPA’s member cities would need to consider the FPL proposal.”
Guarriello explained that FMPA staff calculated a price at which the FMPA could assume Vero Beach’s Stanton I and Stanton II power for two years and communicated that number to FPL on Dec. 6. According to Guarriello, the FMPA is till waiting to hear back from FPL whether its offer is acceptable.
According to City Manager Jim O’Connor, FPL representatives told him as late as yesterday that they is still considering what is a complicated proposal, which has to be reviewed and analyzed by a number of departments within FPL.
Speaking before the City Council last week, FPL external affairs manager, Amy Brunjes, assured the council of her confidence the FMPA board would be able to consider the proposal next week, and then act on it in late February. But she also indicated FPL is considering its options. In the mean time, without an indication from FPL that it is willing to accept the terms of its offer, the FMPA board is left without anything specific to consider.
In the mean time, at least according to FPL’s estimates, delays in the sale are costing the 34,000 customers of Vero Electric $2 million a month.
Indian River Guardian 
At least we know the delays are NOT coming from Vero Beach government.
Don’t be surprised, though, if the island weekly finds some way to point the finder at the FMPA.
Please do not tell me that the FP&L rep. does not know what she is talking about. There is something wrong with this picture. It looks like FP&L is playing the city and all of us for fools. Why they are stalling the process is suspicious .Wilson, Heran, Milton and Lisa will find a way to blame Winger, Kramer and Graves. They are an insult to people who think rationally.
Frank, FPL might pretend otherwise, and the island weekly might give them some covering fire through its persistant criticisms of the FMPA, but the truth seems to be the FPL is in no hurry to conclude the sale. Yes, they want Vero Beach’s electric system, and they want to buy it in a way that opens the door to their acquisition of more municipal utilities. But whether the sale closes on December 31, 2014, or December 31, 2016 doesn’t much matter to FPL. In fact, as Vero Beach invests in capital improvements each year, as employees of the electric system retire, as new customers are added to the system, the deal gets better for FPL with each passing month. Even for the City, the longer the closing is delayed, the more of it’s debt will have been retired when the system finally changes hands.
I am sure what you have written is true ;it makes sense. In that case Mayor Winger must force FP&L’s hand . Jay Kramer is right when he looks for ways to lower rates now since FP&L really does not care when the contract takes place. Maybe, the city should refuse to make any capital improvements to the system until FP&L moves ahead. Since the stall is the order of the day it looks like Amy B is not being truthful with our city council. The mayor must call FP&L in and demand some sort of action by FP&L. More more BS from FP&L.
Eric Silagy of FP&L has to explain to the ratepayers of Vero Beach why the sale to his company is going nowhere. According to an article in the Press Journal today it seems as if FP&L is not living up to their promises to close the deal quickly. Thanks to Insidevero.com it is now becoming clear why FP&L is playing a delaying game , this at the expense of the ratepayers. If Silagy was sincere he would not be sending the second team to council meetings. Little Miss misinformation talks in circles and has been caught giviing false statements to to the city council. I hope the mayor calls in FP&L’s first team and “puts their feet to the fire” .