LUX ET VERITAS

Throughout the last half decade the customers of Vero Electric demanded lower electricity bills fused upon the substantially lower Florida Power and Light rates.  However, post sale, the total bill will be higher than many expect, cost savings lower and City property taxes may well increase.  In addition, some exaggerated claims of the rate disparity between city’s electric system and FPL entirely misleading.

For example the Vero Beach 32963 island weekly newspaper in its August 29, 2013 edition claimed “Vero Beach Electric customers can look forward to 40 percent lower rates the day after FPL takes over …” A 40 percent reduction of the proposed Vero Electric January residential rate of $128 per 1000 kilowatt hours would be $51.20 for a total bill of $76.80 from FPL, not the $99.95 that is currently on the FPL website.

Thus the actual rate reduction for Vero Beach customers is $28.05 (14.1 percent) without the 6 percent franchise fee included. Adding the franchise fee, which the City Council will surely impose, would decrease the savings to 10.8 percent lower for FPL’s current rate.  (Note that the existing Vero Electric rate includes over $1 million in annual attorneys expenses and all data excludes the 10 percent utility tax).  Monthly savings on the bill for $1— KWH would be $22.05 at current rates.

The County Commission and the Indian River Shores Town Council are funding lobbyists to engage presumably both the Florida Public Service Commission and legislators to provide rate relief for their customers served by Vero Electric.  Such efforts could potentially result in a partial sale of the city’s electric system; exactly what Vice Mayor Jay Kramer has proposed as an alternative should negotiations become stalled, substantially extended, or founders.

Much like Carrie Nation, the crusading axe welding Kansas prohibitionist, a local writer in the 32963 publication is on a campaign relentlessly publishing a yellow dog hatchet job on “Rock Chalk” Vice Mayor Kramer, and his alleged co-conspirators.

In the latest edition, an article captioned “news analysis”, she wrote in tabloidesque purple prose Quotes:

• Kramer lashed out
• Kramer decided to let fly
• Kramer fed information (and misinformation) to bloggers and publications bent on stopping the sale.
• Kramer suggested FMPA officials should come to Vero’s meetings … implying the City would get more accurate information than from FPL
• Winger’s body language was closed off to Kramer
• The Council no longer is controlled by the pro-sale majority

The sale is on hold while FPL continues to formulate a response to the Florida Municipal Power Agency’s offer; which once again is delayed beyond January (contrary to Mrs. Brunges’ Jan. 7 presentation to City Council asserting FPL’s response to the FMPA will be available “shortly” for the agency’s executive board to consider at its Jan. 23 meeting).  In fact, the entire Council is pro-sale.  The issue is the closing date and likely proceeds which are shrouded in uncertainty.  Prudent divers don’t leap from three meter boards if there is no water in the pool.

FPL exudes confidence in a clear path forward.  In fact, there is no assurance the FMPA/FPL negotiations (that exclude Vero Beach) will conclude in a fast track completion of the sale. Should there be a stalemate or should the closing date be pushed off to late 2016, Kramer has prudently proposed the City should explore options. Presenting accurate information on the status of the deal to the public is responsible; indeed crucial.

The transactional attorneys, staff and FPL have regularly reported to the City Council on their interpretations of FMPA contracts, terms and conditions, the Agency’s issues and progress of the negotiations. Repeatedly their advise, counsel and expectations were wrong.  Kramer’s suggestion that the FMPA speak for itself at a City Council meeting is clearly logical and may well be important in obligations, concerns and procedures. John F. Kennedy’s first book, “While England Slept,” chronicled events of the late 1930’s, where the solitary voice of Winston Churchill was ridiculed and mocked as being a naysayer and alarmist.  He was swiftly proved prescient by predicting the outbreak of World War II.

The Bottom line:  Even were the FPL proposal accepted by the FMPA staff and unanimously approved by the members, a new contract has to be written, then, on to Federal Energy Regulatory Commission, the PSC and the FMPA’s bond attorneys and insurers.  Obviously, all of these approvals are totally beyond the City Council’s control save signing the new 800 page sales agreement.

The light at the end of the 2014 tunnel (maybe more akin to a mine shaft) appears to be a flickering candle.

Editor’s Note:  Much like “Lexington,” an anonymous commentator for The Economist magazine, “Lux et Veritas” offers commentary for readers of Inside Vero, addressing local politics, lagoon contamination, quality of education, Libertarian and Liberal excesses, media reporting and agendas, wealth disparity and more.  The views and opinions expressed by Lux et Veritas represent the editorial philosophy of Inside Vero.