FPL president’s optimistic timetable challenged
MARK SCHUMANN
In a four-and-a-half page letter to Florida Power & Light President Eric Silagy, Florida Municipal Power Agency General Manager Nicholas Guarriello challenged public statements Silagy made last week suggesting FPL’s proposed purchase of Vero Beach’s electric utility could likely be concluded by the end of the year.
“It has been reported that you said: ‘I don’t see any hurdle that can’t be overcome by Jan. 1.’ On the contrary, I and FMPA’s general counsel have said to you that it will be very difficult to achieve a closing by the end of this year,” Guarriello wrote.
Silagy met last Thursday with Scripps Treasure Coast Newspapers editors and reporters at the Scripps offices in Stuart. There, Silagy reportedly announced FPL’s acceptance of the FMPA’s offer to assume Vero Beach’s power entitlements for up to three years, but through no later than Dec. 31, 2017. Silagy seems to have indicated FPL’s acceptance of the FMPA $52 million offer would resolve issues beyond the power supply agreement, thus clearing the way for the sale. Following the meeting, Scripps published a story headlined, “FPL purchase of Vero Beach power utility could be done by January.”
According to Guarriello, FMPA’s offer to assume power, which he says the agency neither wants nor needs, does not and cannot remove the need to address numerous other issues having to do with contingent liabilities, stranded costs and contract revisions, all of which remain unaddressed and unresolved.
In his letter to Silagy, Guarriello methodically and dispassionately outlined the numerous steps still to be taken before FPL and Vero Beach officials can meet around a closing table. According to Guarriello, most of the issues the FMPA identified years ago have yet to be resolved.
All of the FMPA contracts covering Vero Beach’s involvement in the Saint Lucie Nuclear, Stanton I and Stanton II power projects and the All Requirements Project must be amended. All of the contract changes will then have to be approved by each of the 20 FMPA members who participate with Vero Beach in those projects. The contract revisions, Guarriello wrote, must also be approved by bond trustees, bond insurers, rating agencies, bond counsel, the Florida Public Service Commission, and ultimately by the votes of Vero Beach.
Guarriello concluded his letter to Silagy by underscoring just how much must be done to conclude Vero Beach’s proposed power sale. “I feel that FMPA must make clear just how far away Vero Beach, FPL, FMPA, and the OUC are from completing a deal,” he wrote.
Guarriello closed his letter assuring Silagy the FMPA would continue to work to conclude the sale, “FMPA remains committed to working with our member utilities, OUC and Vero Beach, and FPL to achieve whatever objective Vero Beach ultimately decides on.”
Indian River Guardian 
I can not believe FPL lied to us ( I am positive this is a first). Secondly, does this mean we will not be getting the check for $156.5 MILLION from FPL that Glenn Heran and Dr Stephen Faherty promised Vero Beach in 2009. And lastly, I know since we DO NOT have all the facts, we have NO idea what the final cost is going to be and we have NO idea how many more MILLIONS of CONTINGET LIABILITIES we are on the hook for LET”S HAVE A VOTE.
Wow, how wonderful, we might finally have relief within three years from now! I am elated to continue to spend almost 40% more for my electricity than anyone not on this wonderful grid! Just think, if Vero is not raking in the profit who is, or who are the recipients benefiting from this huge cash cow? Why would any member of that mob stop the “rape of electric customers” when the profit is so overwhelming? This is criminal and yet it is allowed to continue. I don’t think any votes will help, maybe the vote should have been the issue when all of us were sold down the river by the elected City politicians some years ago to give away the store!
The FMPA folks need to take some lessons in public relations. By informing us that the deal is “complex” they seem to be talking down to the country bumpkins who live in Vero Beach.
Pat, I don’t think one could begin to could the times FPL spokespersons have reminded everyone this deal is complex. For example, in explaining why it took the company more than two months to respond to the FMPA’s latest offer communicated Dec. 6, FPL’s Amy Brunjes reminded the Council the deal is “complex.”
The saying, “Liars, Cheats and Thieves” just popped into my head for some reason. Thank you for that terminology Mr. Heady.
To you who feel offended by your electric rates, understand that the million plus dollars in legal fees and the many millions of dollars of enhanced maintenance and equipment upgrades which are part of the FPL contract are ongoing current expenses. Your three “friends” who prematurely and blindly perpetrated this chaos, also demanded that the city not create long term bonds to pay these liabilities off with minimum impact to current rates. They demanded that they be treated as directly billable expenses to you as they occurred. You can solely get mad at Mr. Fletcher, Mrs. Turner and Mrs. Carroll for that. The City of Vero Beach does not make a dime on these higher rates. The “Troika” just wanted to make you squirm.