County Commission adding 6 percent to Vero Electric’s bills

MARK SCHUMANN

Vero Electric’s customers located in the unincorporated areas of Indian River County pay an additional 6 percent franchise fee assessed by the Indian River County Commission.

Customers focusing only on the bottom line of their electric bill may not realize there total charges are higher because the County Commission exercises its authority to assess a franchise fee.

at the County, Commissioner Bob Solari is perhaps the harshest critic of Vero Beach's electric rates. Yes, he and his fellow Commissioners tack on another 6 percent to those very same rates. — at the County, Commissioner Bob Solari is perhaps the harshest critic of Vero Beach’s electric rates. Yes, he and his fellow Commissioners tack on another 6 percent to those very same rates.

The inclusion of the County’s franchise fee actually skews the rate comparison between Vero Electric and FPL. The true rate differential between the two utilities is 17.9 percent. With the addition of the County-imposed 6 percent franchise fee, the rate differential for County customers rises to 23.9 percent.

Asserting that they are seeking rate relieve for Vero Electric’s out-of-city customers, the members of the Indian River County Commission voted unanimously to ask the Florida Public Service Commission to redraw the boundaries of Vero Electric’s service territory. There has been no discussion, though, of discontinuing the County-imposed franchise fee. (Presumably, the Commission is expecting FPL will step in and serve the approximately 17,000 county customers now served by Vero Electric.)

The City of Vero Beach transfers 6 percent, or approximately $5.6 million of its electric utility revenue to the general fund to help pay for municipal services. At the most recent Vero Beach Utilities Commission meeting, chairman Scott Stradley was critical of the City Council for not cutting electric rates by the amount of the transfer. Stradley made no corresponding suggestion that the County could contribute to rate relieve by discontinuing its franchise fees on Vero Electric’s county customers.

Vero Electric’s current base rate for 1000 KWH	$123
Indian River County 6 percent franchise fee	$7.38
Total Vero Electric bill to County customers for 1000 KWH	$130.38
Florida Power & Light’s current rate for 1000 KWH	$101

2 comments

If the County was concerned about the residents outside the VB limits who are on City electric services, they surely would stop with this charge – which is collected by the City and then paid to the County. But it must be nice to receive 6% franchise fee for doing absolutely nothing to earn it. Right, Indian River County?

Cathy, You are absolutely right. The County does nothing to “earn” this franchise fee, which comes to some $3 million plus a year. Vero Beach Utility Commission Chairman Scott Stradley, a Trojan Horse if there ever was one, is critical of the City for transferring 6 percent of its utility revenue to the general fund, but because he is apparently among those seeking to drive the City of Vero Beach into disincorporation, he has no criticism of his buddy Bob Solari and his fellow County Commissioners.