COMMENTARY
ED TAYLOR
Rather than enthusiastically accept Florida Power and Light’s latest set of numbers, Mayor Richard Winger acknowledged that the City of Vero Beach would not be in a subordinate position to the utility giant in our attempts to sell the city electric system to them in a timely fashion. After giving a prepared statement* during the March 4th meeting of the city council, Winger told FPL representative Amy Brunjes that he would not be boxed into making a decision in one day based upon information that FPL has known since December 7 of last year.
Thank you Mayor Winger for bringing a degree of sanity into what has turned into a somewhat Orwellian manipulation of facts and numbers by the FPL promoters who continually attempt to persuade the council that what is best for our city just happens to coincide with what is best for FPL. For my purposes, they have redefined the meaning of the word “sale” when they propose that we pay them $26 million to take the city electric system out of our hands. It boggles the brain that they will obtain an asset valued at $190 million and we will owe them $26 million.
Of course this convoluted and contrived FPL logic is supposedly good for us ratepayers even though the only purported benefit we will get is a bill from FPL rather than the City of Vero Beach. FPL claims to have the lowest rates in the state, but Vice Mayor Jay Kramer cited a study showing them to have the 7th lowest rates in Florida. Remember, when negotiations began for this “deal” almost five years ago, Vero Beach had the fifth lowest electrical rates in the state but a city council with a majority eager to sell to FPL (and only to FPL) raised the rates on five occasions with some of the payments ($1.5 million thus far) being used to hire transactional attorneys to facilitate the sale to FPL.
Brunjes countered Kramer’s statement by stating that the study he was referring to was biased and he was “comparing apples to oranges”. Brunjes also stated that the $26 million the city would have to pay to FPL for them to take the electric system was not really a surcharge because the fee would be added to the base rate and not be enumerated as a surcharge on the bill. Call it what you will Mrs. Brunjes but you will still need a garden hose to wash it off your feet after you step in it.
FPL is currently before the Florida Public Service Commission seeking a rate increase and who knows what their rates will be if conditions at the St. Lucie Nuclear Power Plant continue to deteriorate causing a plant shutdown. There are many hypothetical, yet realistic, potential contingencies that could cause FPL to continue to seek additional rate increases. Even them currently being the 7th lowest provider in the state is no guarantee of lower rates in the future. I don’t understand how they can look into an FPL crystal ball and promise us anything.
I do believe that Winger proposed the proper way to handle this by having the attorneys draw up a new contract since the terms of the previously signed agreement have changed drastically and then have that contract reviewed by the city’s utilities and finance committees. The new contract would have to be approved by the city voters through a referendum. He asked that the referendum be clear to the voter and based upon the acceptance or rejection of a finalized negotiated contract. The mayor said that the two prior referendums were not based upon facts but upon “illusory concepts”. The voters need to make the decision based upon an actual contract that relies upon real numbers and facts without FPL spin.
He also suggested consideration of the creation of a utilities authority to professionally manage the electric system while the city retains ownership. He did not express optimism with the ongoing dealings between FPL and the Florida Municipal Power Agency (FMPA), Winger said that he hoped any deal with FPL would be finalized by the end of January next year.
As part of his prepared statement the mayor said: “Unfortunately, it seems increasingly clear the FPL and FMPA locomotives are heading away from us, and in opposite directions. Rather than remain stranded at the station, we need to be prepared to look out for ourselves, even if that means taking a bus, so to speak, in the form of securing the rate reductions we know we can achieve on our own. Ultimately, if we have to leave the station in a bus, the journey to significant rate reductions will take longer, but we can and must be prepared to take care of ourselves.”
The mayor’s statements raised the ire of FPL pitchman Charlie Wilson who gave the appearance of running out of cliches before resorting to somewhat transparent threats. He said that it was time to “fish or cut bait” and that attempting to create a “drop dead” date is a “poison pill” designed to kill the sale. He said that FMPA was “holding the city hostage” and was “trying to blow up the bridge” . . . and we need FPL in order to “get us out of bondage” I was waiting for him to say, “let my people go”, but he thankfully did stop short of that.
He then challenged Winger to go ahead and send the issue to the commissions “to satisfy your special interests and get yourself out of the line of fire.” Wilson then told the mayor that a “voter initiated petition referendum” was another option he intended to pursue if the sale was not approved.
Petition? Charlie Wilson? One has to wonder how creating further division within the community is “putting Vero first.”
Selling the system and ending up without the asset, empty pockets and an outstanding debt TO THE BUYER of $26 million is the logical equivalent of 2 plus 2 equals 5 from George Orwell’s novel “1984”. It just doesn’t make sense and requires a lengthy stretch of the imagination to comprehend why anyone (other than FPL and their shareholders) would consider such an arrangement a good deal. When FPL CEO Eric Silagy said that “sometimes the best deal is the one you can walk away from” he may have unknowingly been speaking of what is in the best interest for the people of our town.
Mayor Winger summed up his remarks by saying: “The goal is NOT any particular solution, whether selling to FPL, or establishing an authority. The goal everyone believes in and wants to see achieved is lower electrical costs. A system-wide authority gives all ratepayers a vote and it is an alternative path we must pursue. We are not trapped if we will rely on ourselves, which is the American way. So, let’s pursue these simultaneous roads to success, for in that way we will be fulfilling our responsibility to our rate payers, one way or another.”
Well said Mr. Mayor. Well said. Thank you for the recognition that all we want is lower rates and that bowing to the whims of FPL is not our only option.
Indian River Guardian 
It is not very often when a little city is able to have the smartest business man in the city run for a low paying public office. It also not very often that citizens cut through all the misinformation and vote this person into office. It is even a rarer occasion that people listen to this person. We did the first two correctly, let us not fumble at the goal line on the third.
As a resident of Indian River Shores I have been paying a very high electric bill for years. I now would advise the Council members to do their research and not go from the “frying pan into the fire”. There have been poor decisions in the past that have gotten the ratepayers into this mess, let’s not do it again. Vero electric has excellent service and old equipment. I at this point would be happy with lower rates,even over a period of time, but not at the wholesale liquidation of my neighbor, the City of Vero Beach. I would love to see a decision made to stay in the electric business, after all the City does have the experience to run a power business and upgrade everything that needs to be changed. Think about it, it does not make sense for FPL to purchase a loser, let’s rethink the possibilities before we give away this tarnished jewel! I agree with the Mayor, lets think this over and not be pushed into something that we will all regret!
VERY WELL SAID!! I agree with Mr.Wapnick. Seems we have been pushed far enough.