MARK SCHUMANN

In its coverage of Indian River Shores Town Council’s March 27 meeting the Press Journal reported, “The Florida Municipal Power Authority (sic) has indicated to FPL it would allow Vero Beach to free itself from its contractual obligations to the power agency if FPL paid $52 million; city electric customers would repay half this amount to FPL through a surcharge on utility bills.”

The opposite is true.

In a March 5 letter to FPL President Eric Silagy, Florida Municipal Power Agency General Manager Nicholas Guarriello made clear Vero Beach’s contractual obligations having to do with contingent liabilities, stranded costs and the date when Vero Beach can terminate its membership in the All Requirements Project are separate issues.

Guarriello explained the $52 million, $26 million of which FPL is proposing should be paid by the customers of Vero Electric, would compensate the FMPA for assuming Vero Beach’s power supply entitlements for three years.

In August, the FMPA was asked at what price it would be willing to absorb Vero Beach’s power through Dec. 31, 2017. The answer was $52 million.

The OUC has reportedly agreed to take on Vero Beach’s power entitlements for $46 million, and to permanently assume Vero Beach’s position in three FMPA power projects as of Jan. 1, 2018 for an additional $35 million.  Though FPL Vice President Amy Brunjes was in attendance at the Shores Town Council meeting, no one questioned her about why FPL is attempting to make a deal with the FMPA when the OUC is reportedly willing to accept $6 million less.

In his March 5 letter to Silagy, Guarriello urged Silagy to negotiate directly with the OUC. He also underscored the FMPA’s position that Vero Beach’s contingent liabilities and stranded costs issues, and the question of when Vero Beach can terminate its All Requirements Project membership, are separate matters that are in no way linked to the question of how much it will cost the FMPA or the OUC to absorb Vero Beach power entitlements.

Last spring, going along with a strategy proposed by FPL and the city’s transactional attorneys, the Shores Town Council urged Vero Beach votes to approve the purchase and sale agreement.  That contract, which left several key issues yet to be resolved, is now seen by all parties as a “dead end,” as Vero Beach City Manager Jim O’Connor recently described it.