MARK SCHUMANN

In an email to City Manager Jim O’Connor today, Florida Power & Light external affairs manager Amy Brunjes reported that the Florida Municipal Power Agency’s offer to assume Vero Beach’s power entitlements for three years was “much higher than anticipated.”

Brunjes wrote, “…it has proven to be very challenging to find parties willing to take FMPA’s power (Vero Beach’s FMPA power entitlements) on terms that are acceptable.”

By “parties,” Brunjes may have been referring to both the FMPA and the Orlando Utilities Commission, for it is known FPL has been negotiating with both the FMPA and the OUC in search of a deal.

As a part of the original power purchase agreements that are integral to the sale, the OUC offered to assume Vero Beach’s position in three FMPA power projects for $34 million in cash and some $8 million to $10 million in gas transmission right.  However, the OUC is only willing to accept power from the Stanton I and Stanton goal fired units beginning Jan. 1, 2018.

A so-called “Plan A” provided for FPL to buy Vero Beach’s Stanton I and Stanton II power through the end of 2017, at an estimated premium of $40 million above what it would cost the company to generate the power at one of its own plants.  That deal was shelved when the City’s transactional attorneys and FPL negotiators concluded it would be difficult, if not impossible to get a favorable ruling on the proposed transaction from the Internal Revenue Service.

Since late last summer, FPL is has pursued negotiations with the FMPA, and has offered to pay the FMPA to absorb Vero Beach’s Stanton I and Stanton II power entitlement through Dec. 21, 2016.

Brunjes’ email to O’Connor indicated FPL is currently formulating options for the City’s consideration.