MARK SCHUMANN
In a letter emailed today to Vero Beach City Attorney Wayne Coment, Orlando Utilities Commission Vice President and General Counsel Chris Browder revealed the OUC cannot assume the power entitlements the City has with the Florida Municipal Power Agency.
Without another willing buyer to take on the City’s FMPA commitments, Florida Power & Light’s attempted acquisition of Vero Electric has reached a dead end.
Browder’s letter was also addressed to transactional attorneys John Igoe and Schef Wright.
“The many incompatible requirements of the bond resolutions and current financing commitments of OUC and those of FMPA preclude OUC from taking assignment of the Power Sales Agreements from Vero Beach without the requested modifications to the Vero Beach Power Sales Agreements,” Browder wrote.
Browder added “Given the incompatible requirements between OUC’s and FMPA’s bond requirements, I cannot recommend to OUC’s Board that OUC take assignment of the Vero Beach Power Sales Contracts as currently drafted.”
Browder explained that the changes OUC sought to the agreement were required by its bond counsel. But those same agreements were incompatible with the FMPA’s existing bond covenants. “We are at an impasse,” Browder wrote.
The OUC’s willingness to assume Vero Beach’s position in three FMPA power projects (St. Lucie Two, Stanton I and Stanton II) was a critical component in the proposed transaction between the City of Vero Beach and FPL.
In exchange for $34 million in cash and gas transmission rights valued at $10 million, the OUC was to assume Vero Beach’s position in three FMPA projects as of January 1, 2018. The OUC was to receive an additional $20 million cash for letting the City out of a separate, long-term wholesale power agreement.
More than a year after voters were asked to approve a purchase and sale agreement between the City and FPL, still no one has been found to take Vero Beach’s FMPA power entitlement shares through December 21, 2017. With the OUC now backing away from its offer to take assignment of Vero Beach’s FMPA contracts as of January 1, 2018, finding a taker for the short run becomes a moot point.
Without a buyer for Vero Beach’s FMPA power entitlements, there can be no sale, said City Manager Jim O’Connor.
O’Connor explained the City made several efforts to find a buyer for its FMPA power entitlements, but no qualified utility other than the OUC expressed interest in anything more than a small fraction of the City’s power entitlement shares.
Below is the full text of Browder’s June 2 letter, along with other recent correspondence between OUC, FMPA and FMPA’s bond counsel, Nixon Peabody:
Indian River Guardian 
Looks to me like it’s the end of the trail and the last nail has been placed in the coffin. The CIty of Vero Beach needs to stop pouring money down a rat hole, accept our outlandish losses, tell FPL we’re through and seek other ways to reduce electric rates That big pot of free (tax) money is running dry..
Did neither Fletcher, Turner or Carroll ever hear the old saying first things first. The saying is not last things first. Good bye $1,500,000 that we have spent so far on attorneys. Oh yeah I have a great idea let us follow Charlie Wilson’s advise again and sue FMPA. Maybe tomorrow at the city council meeting he can explain where our $90,000,000 profit from the sale has disappeared to. Hope he brings Glenn Herran along to explain where his $156,500,000 has disappeared to.
We just need the elected officials to admit to this.