NEWS ANALYSIS

“The OUC reportedly offered to absorb Vero Beach’s Stanton I and II power supply commitments through Dec. 31, 2017 for $46 million, leaving some to wonder why FPL continues to press for a deal with the FMPA at $52 million. In exchange for taking on Vero Beach’s power entitlements short term, the OUC may want to renegotiate the $34 million price at which it agreed to permanently assume Vero Beach position in the FMPA power supply projects as of Jan. 1, 2018. That could be a conversation FPL negotiators would prefer to avoid having.”

MARK SCHUMANN

Is FMPA’s offer to take Vero Beach’s power entitmements still on the table?

The Utilities Commission is scheduled to meet March 31 to receive a presentation from Florida Power & Light on its latest proposal, an offer which the FMPA has flatly rejected as “unworkable and unacceptable.”

At a joint meeting of the Utilities and Finance Commissions held last Wednesday, FPL spokesperson Amy Brunjes said the FMPA had only objected to the conditions FPL placed on its proposal.  Brunjes claimed the underlying offer to compensate the FMPA for taking on Vero Beach Stantion I and II power supply entitlements through Dec. 31, 2017 was still on the table.

The only official word from the FMPA on this question seems to contradict Brunjes.  In a March 5 letter to FPL President Eric Silay, Guarriello urged FPL’s president to negotiate instead with the Orlando Utilities Commission. The OUC has already agreed to assume Vero Beach’s power entitlements as of Jan. 1, 2018.  “It seems more straight forward, as I have mentioned before, for FPL and OUC to directly negotiate a price — be it $52 million or any other figure — for the up-to-three-year power sale, which would avoid any IRS private use restrictions.”

The OUC reportedly offered to absorb Vero Beach’s Stanton I and II power supply commitments through Dec. 31, 2017 for $46 million, leaving some to wonder why FPL continues to press for a deal with the FMPA at $52 million.  In exchange for taking on Vero Beach’s power entitlements short term, the OUC may want to renegotiate the $34 million price at which it agreed to permanently assume Vero Beach position in the FMPA power supply projects as of Jan. 1, 2018. That could be a conversation FPL negotiators would prefer to avoid having.

As Stradley and his fellow Utilities Commission members meet next week to hear from FPL representatives about their offer to the FMPA, they may find themselves trying to drive forward while fixated on a rear view mirror.  In other words, the FMPA may no longer be willing to absorb Vero Beach’s power entitlements, not at $52 million, nor at any other price. The Utilities Commission’s planned discussion of FPL’s offer and its review of recent communications between city officials, the FMPA and FPL may prove to be more of a history lesson than anything.

Silagy announced FPL’s offer to pay the FMPA $52 million to assume some 38 megawatts of Vero Beach’s power entitlements, along with a number of conditions, when he met with the Scripps Treasure Cost Newspapers editorial board in Stuart February 20.  Since then, the FMPA and FPL seem to have moved farther and farther apart.

Stradley sends letter, follow up email to FMPA general manager

After sending a letter, which included his resume, to Florida Municipal Power Agency General Manager Nicholas Guarrriello Friday, Utilities Commission Chairman Scott Stradley wrote a follow up email Sunday evening.

Stradley’s Friday letter invited Guarriello to attend or send a representative to the March 31 meeting of the Utilities Commission. The Utilities Commission Chairman’s Sunday evening email sought to assure Guarriello his resume was attached in error, and was not intended to “intimidate” Gurarriello with his credentials

Stradley also sought to assure the FMPA’s general manager that he would be treated with respect if he chose to attend the Utilities Commission meeting March 31.  Stradley let Guarriello know, though, that FMPA representatives might face some “hard” questions.  “I may ask some myself,” Stradley wrote.

 

Below is the text of Stradley’s March 23 email to Guarriello:

Nick,

Somehow our City Clerk attached my bio to the letter I sent you from the Utility Advisory Commission. I do not know how she made this mistake as below is the e-mail I sent her, asking that she make it part of the package of bios that the UAC asked her to send to each member in order to help us get acquainted with each other. My bio is simply what I have on the “about” page of my web site.

Rest at ease I am not applying for a job at the FMPA or trying to intimidate you with my credentials.

In fact I am embarrassed by what happened. But I am sure you understand that this is a simple mistake by city staff and no offense was intended.

Also, I want to assure you that the invitation was sincere, and came from the whole UAC. In fact Mr. Whittle first suggested it and in the course of the discussions it was Mr. Christopher who convinced me that it would be a good thing if someone from the FMPA came to the meeting on the 31st or any subsequent meeting. One of the things I value about how the City Council conducts the business of the City, is the openness to citizens input and a concerted effort to provide the citizens with all the information they need to make an informed decision. The various advisory commissions serve a vital role in this. However, if you or any of your staff does attend a UAC meeting you will be there as our guests. I (we) will treat you with respect. While you might face some hard questions (I may ask some myself), you will not face any disrespectful ones or questions that are not on the topic of discussion per the agenda. If you have observed any of the past meetings I have chaired you will have seen that I conducted the meeting with decorum. You have my word that I will conduct any meeting that you attend with decorum as well.

I will call you Monday to express my personal apology for any misunderstandings that this unfortunate error caused.

Thank you very much,
Scott Stradley