COMMENTARY
“One accurate claim that can be made about the March 2013 vote is that, in a referendum in which FPL spent $125,000 to control the outcome, some 20 percent of Vero Beach’s registered voters approved a contract which must now be re-written because the terms have changed so drastically.”
MARK SCHUMANN
Advocates for the sale of Vero Beach’s electric utility to Florida Power & Light have repeated a number of falsehoods so often they now actually seem to believe their own propaganda. Indian River Shores Mayor Brian Barefoot’s “guest column” published recently in the Press Journal claims Shores residents are paying, on average, a rate differential of 30 percent. At least based on FPL’s favorite benchmark – 1000 KWH a month — the differential is 17.9 percent.
Picking up on a deceptive tactic used by FPL’s local operatives, Indian River County Commission Chairman Peter O’Bryan has taking to mixing denominators to exaggerate the likely savings people can expect as a result of the sale. O’Bryan recently wrote that, based on current rates of $123 per KWH for Vero Beach and $101 for FPL, Vero Beach’s rate is 21.8 percent higher than FPL.
That may be true, but the 21.8 percent number represents a meaningless comparison. No one, absolutely no one, is considering switching from FPL to Vero Electric. The relevant comparison is the one pointing to the savings one might expect after switching from Vero Electric to FPL. Currently, FPL’s rate is 17.9 percent below Vero Electric. Still, the urban legend often repeated around the community is that Vero Electric’s rates are 30 percent to 40 percent higher than FPL.
Perhaps the most misleading refrain of the pro-sale crowd is the claim that, as Press Journal columnist Russ Lemmon recently wrote, Vero Beach residents “repeatedly voted in favor of the city getting out of the electric business.” This assertion is pure FPL propaganda and it is a big lie.
I can still hear FPL Vice President of External Affairs Amy Brunjes, wife of Press Journal Publisher Bob Brunjes, assuring the public the referendum held in the fall of 2011 was “NOT” a vote on selling the electric system, but was merely an authorization to “continue the conversation.” At the time, Vero Beach voters were asked to give the City Council permission to lease the power plant, IF the Council, after conducting what everyone expected would be arms-lenght negotiations, determined selling the electric system was in the best interest of the City.
Three Council members at the time, Tracy Carroll, Craig Fletcher and Pilar Turner, along with pro-sale utility activists Glenn Heran and Dr. Stephen Faherty, assured the public the fall 2011 referendum was NOT a vote on selling the electric system. Their claims were backed up by an advertising campaign funded by FPL.
Today, all those who once said the fall 2011 vote was simply to authorize the City Council to lease the power plant, now claim the outcome of that referendum was a clear, indisputable and resounding call for the City to get out of the electric business, regardless of the cost. To characterize this claim as misleading falls short of accurately describing what is really a big lie.
Further distorting the truth, FPL spokespersons, Lemmon, Turner, Fletcher, and FPL’s local operatives all now claim that in the March 2013 referendum some 60 percent of Vero Beach voters made it perfectly clear they want the City out of the power business, come hell or high water. In fact, less than 30 percent of registered voters participated in the March 2013 special referendum. Of those, a little more than 60 percent approved the terms of the proposed asset purchase and sale agreement between Vero Beach and FPL.
One accurate claim that can be made about the March 2013 vote is that, in a referendum in which FPL spent $125,000 to control the outcome, some 20 percent of Vero Beach’s registered voters approved a contract which must now be re-written because the terms have changed so drastically.
In March 2013, all the proponents of the sale were assuring voters that if they would approve the contract, with all its blanks and holes, Vero Electric’s could expect FPL rates by the spring of 2014. What the sale’s proponents were not telling the public is that once all the blanks in the contract were filled Vero Electric’s customers would be asked to pay a $26 million surcharge to help fund they sale. And certainly voters were never told the City would have to pay more than $40 million to exit the Florida Municipal Power Agency’s All Requirements project.
In truth, the assertion that Vero Beach voters have “repeatedly” approved handing over their electric utility under such unfavorable terms is simply a big lie.
Indian River Guardian 
Did you receive yet another promotional letter from FPL concerning the availability of their surge protector – for only $9.95 extra per month? Did you wonder why – since your residence happens to be inside the VB City limits? I did not receive this offer, but it may be because I live in a neighborhood with fewer large homes, minimal number of pools, and survivalist lawns that live or die without sprinkler systems. Perhaps $120.00 a year would be peanuts for those with large, beachside homes but this household is playing the odds that the small surge protectors we have will suffice. Back when FPL was showing how efficient they were and happy to tell us how much we’d save by being under their wing, I found out our household would save approx. $10.00 per month. Why? Because we consistently use LESS than 1,000 KWH. Anyway, you are correct about the statements made regarding those two times we voted. We were assured every which way possible that this vote did not mean an actual sale – merely continuation of talks. These are the kinds of reminders desperately needed.
Regardless, if you put two cases of apples, identical, on display in Publix, and one box said 3 for $3.00 and the other said 3 for $3.54 which would you choose? On average, my electric bill for the year costs $5500 with Vero Electric, I would still be saving almost $1000 per year for the same product if I had FP&L! For sure I do not live in the city, and at this point, seeing the pending lawsuit from Indian River Shores I feel badly that the City Council of both communities could not work something out.
Larry, I get your point that your bill with Vero Electric is some $1,000 more a year than you would pay with FPL. If you were a customer of Duke Energy, Gulf Power, or Florida Public Utilities, all investor owned utilities regulated by the Florida Public Service Commission, you would be paying as much or more than you are now paying with Vero Electric. Yet, no one is proposing that the PSC should hand over to FPL the service territory rights of these utilities. Only in our small beachside community, where FPL public relations operatives have burrowed their way in like chiggers, is there now the assumed right to the lowest cost power in the state. Given the nature of the highly capital intensive utility business, the notion that huge blocks of customers can be switched from one utility to another is patently absurd.
Yes I do see where you are coming from, but……my neighbors across the street have FP&L and they are paying less then I am for the same product! If all that were available was Duke Energy, Gulf Power, or Florida Public Utilities I would be thrilled to stay with Vero Electric and boast, “look what I am saving every year with Vero Electric”! Unfortunately the reality is that it is still costing me $1000 per year more than my neighbors, enough to pay for a few months of restaurant bills in the City.
With all respect, Larry, I would suggest that most discontent rises out of comparison.
If you go this way and sell to FP&L, be careful about the franchise agreement. Do not go for the franchise fee. If you need local revenues, collect them through property taxes, not FP&L.
see this article I just read for all the pitfalls http://case-fl.org/content/fpl-franchise-agreements
I am in Sarasota and I have been researching franchise fees after reading the audit report.
Audit report here – http://www.sarasotaclerk.com/FileLib/IA_2013_Audit_of_%20Florida_Power_&_Light_Company_%20Franchise_%20Fee.pdf
Note – the state taxes your franchise tax at almost 3%! Taxes on taxes. plus property taxes are deductible for fed income tax purposes – franchise fees are not.