It is time for FPL to offer a customized, on-line, interactive bill comparison tool for customers of Vero Electric

COMMENTARY

MARK SCHUMANN

In the annals of urban legends, perhaps no myth is more disconnected from reality than the oft-repeated claim that all customers of Vero Electric can expect to save 40 percent, 30 percent, or even 20 percent, if and when they become customers of Florida Power & Light.

FPL spokesperson Amy Brunjes continues to claim the sale of Vero Electric will results in total savings of $20 million for the City's. FPL's estimate, though, is based on a comparison of rates for residential customers using just 1,000 kilowatt hours per month.  Arrriving at a more accurate estimate would require a far more complex equation.
FPL spokesperson Amy Brunjes continues to claim the sale of Vero Electric will results in total savings of $20 million for the City’s customers. FPL’s estimate, though, is based on a comparison of rates for residential customers using just 1,000 kilowatt hours per month. Arriving at a more accurate estimate would require a far more complex equation.

Not only are FPL’s rates rising as Vero Electric’s rates are coming down, even more importantly, different classes of residential and commercial customers are paying varying rates.  High-volume residential customers, for example, pay more per kilowatt hour than those using 1000 kilowatt hours or less per month.  Commercial rates vary, as well.  To be sure, the rate differential between FPL and Vero Electric narrows significantly for high volume commercial customers.  Currently, though Vero Electric sells more power to commercial customers than to its residential accounts, the City collects more than half of its total revenue from customers with residential meters.  This fact alone suggests businesses now on Vero Electric’s will not get anywhere near the savings currently being claimed.

Spokespersons for FPL continue to insist they are dedicated to “educating” Vero Beach voters on all important aspects of the company’s proposed purchase of Vero Electric.  If that claim were true, one might expect that by now FPL would have created a customized, on-line, interactive bill comparison tool, where customers of Vero Electric could enter their usage data and other information needed to produce meaningful, individualized bill comparisons.  Customers within the city limits should be shown what their total bill will be, including a 6 percent franchise fee and a 10 percent utility tax, and all customers should see what they will pay each month for the next three or four years to help subsidize the sale of Vero Electric.

6 comments

  1. It would indeed be a good idea to have a bill comparison tool. Based on their track record, I just don’t know that I could trust any numbers that FP&L provides.

  2. The FPL.com/verobeach web site has been online for a number of years and by clicking on FPL Bill Estimator and entering your KWH useage, the site will show you a detailed breakdown of what FPL would charge. Of course you have to add your meter and fuel amount on your city electric bill and then subtract the charge from the FPL Estimator for your savings. If you want to go even further, you can calculate the electrc share of the gross receipts tax and the utility tax. I would bet FPL will update the estimator or add another estimate when a surcharge and/or a utility tax is added to their cost.

  3. Bill, at least one of the points I was trying to make is that more than half of Vero Electric’s power is sold to commercial customers. The bill estimator you referenced does not distinguish between residential and commercial customers. This is important because the rate differential between Vero Electric and FPL is not the same for residential and commercial customers, and it is not the save for all levels of use.

  4. It sounds like you are familiar with the FPL Bill Estimator but perhaps the city residential customers are not as aware as you so my comment will provide your readers with an interesting tool. Although non-voters, county city utility users can also estimate their savings.

  5. These questions have not been answered.

    Where is the estimator for commercial users?

    Where is the estimator for over 1000 k users?

    Where is the estimator for peak users?

    When is peak time?

    How much will the city be charged for light pole maintenance and repair including bulb change?

  6. Mr Daige raises questions that are important for a better understanding of our electric bills

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