Presumption of privilege underlies Shores lawsuit against Vero Beach

…Press Journal editorial this morning suggests its editorial board has bought into the argument

Currently, Vero Electric's rate for 100 kWh is $123.93, $1.87 above the statewide average for municipal utilities.  The City's rate, is $1.01 below the average for the PSC approved rates for investor owned utilities.
Currently, Vero Electric’s rate for 100 kWh is $123.93, $1.87 above the statewide average for municipal utilities. The City’s rate, is $1.01 below the average for the PSC approved rates for investor owned utilities.
 COMMENTARY

MARK SCHUMANN

In an exchange with Vero Beach’s special counsel, Schef Wright, Indian River Shores’ special counsel, Bruce May, said, “…So just to manage expectations, from our perspective, we’re looking for reasonable rates.  We’re looking for rates comparable to FPL’s rates.”

May’s comment, made Aug. 21 during a mediation session between the Shores and Vero Beach, clearly suggests his clients, the members of the Indian River Shores Town Counsel, believe the only “reasonable” electric rate is the rate currently being charged by FPL.  Yet, every electric utility in the Florida, other than FPL, is charging higher rates, and at least in the case of investor-owned utilities, those rates have been approved by the Florida Public Service Commission.

Shores residents seem reluctant to admit that, on their behalf, their Town Council is willing to wage a lengthy and expense legal battle with their neighbors, simply to argue the preposterous assertion that Shores residents have an inalienable right to the lowest electric rates in the state. May’s comment makes clear an assumption of privilege does, indeed, underlie the Shore’s lawsuit against Vero Beach.

The table above presents the rates being charged by Florida’s municipal and investor-owned utilities. Vero Electric’s current rate is below the average for PSC regulated investor-owned utilities, and within a $$ per 1000 kWh for municipal utilities.

 

10 comments

  1. As a resident of Indian River Shores I can use only one gauge for a rate, what are my neighbors across the street paying for the same “APPLE” that I want to eat? Not what this apple costs in NYC or Baltimore or Miami or Ft. Pierce, what does it cost at the local Publix for a good one. Fine you can now argue that there are many apples, McIntosh, Gala, and Hoya, there are green ones, red ones and who knows maybe even blue ones! The issue is I want to pay the same rate that my neighbor does, he lives across the street and he is paying 30% less than I am for electricity. If he buys a new air conditioner with low seer then FP&L will give him a credit of up to $1100.00I I love the city and hate my neighbor, yes it is all about money.

  2. Two points, Larry. First, you are still quoting the 30 percent rate differential. The differential is now 20 percent, and is likely to narrow still further. (Add a 6 percent franchise fee to FPL’s rates, and you’re looking at a rate differential of 15 percent.) Second, if the only comparison you have is to your neighbor’s rate, then I would suggest you have a constricted view of the utility world.

    Here’s the deal with the franchise fee: Though Indian River Shores, with its countless multi-million dollar homes, may not need to assess a franchise fee, practically every other municipality does. Indian River County, for example, assesses a six percent franchise fee on the customers of FPL and the customers of Vero Electric within the unincorporated areas of the county. So, to get a meaningful comparison of Vero Electric’s rates to FPL’s rates, it is necessary to adjust FPL’s rate to reflect what Vero Electric’s customers, except for those in Indian River Shores, would pay as customers of FPL. The simple fact is that, at this point, that rate differential is 15 percent.

    Vero Beach rate for 1000 kWh of residential use is 123.93. FPL’s rate is 99.19, add to that a six percent franchise fee, and FPL’s BILL would be 105.14 for 1000 kWh of residential power.

  3. Fine Mark, 15% plus $1100 rebate, I am still paying $2000 more ($5000 annual bill, $1100 FP&L rebate for the high seer air conditioner} than my neighbor across the street with FP&L. Next year it will even be higher as I will have to replace the other two air conditioners. With your kind explanation I now feel good about being with Vero Electric.

  4. I cannot help but consider how much the first residents of Indian River Shores would have saved on electricity, if Very Beach had not agreed to extend service to the area. With FPL unwilling at the time to serve the Shores, the electric bills for residents there would have been zero. (At the time, there were still plenty of oak trees that could have been cut down and used for firewood.) Larry, if you have three air conditioners, then I cannot help but observe that what seems to be deeply troubling you would be seen in the eyes of most of the rest of the world as a white collar problem. Seriously, in all of Wisconsin there is not enough cheese to go with the whine in Indian River Shores. I’ll say it again. The victim mentality syndrome knows no economic barriers.

  5. Somehow I cannot feel sorry for someone who has 3 air conditioners and we are not talking about window units. What kind of Macmansion do you own?
    Maybe your neighbor across the street has only one or two units.

  6. To respond to Jeanette White, some people collect antiques, watches, cars, etc….I collect air conditioners, but at the Vero Beach Electric Rates I am seriously thinking of giving up running them and going on to collecting old brass fans! As far as the Macmansion goes, now with one air conditioning gone I will spend more time in the pool. Enough of this “Shores Bigotry” I will sell and move to the City of Vero Beach to lower my house taxes, just think I will also save on gas as I am closer to better shopping and more restaurants! Thank you for opening my eyes to an “unconscionable” life style, I should be ashamed of my financial accomplishments living a lifestyle that only some can afford!

  7. This isn’t about wealth it is about much whining, accompanied by an obvious presumption of entitlement, as clearly expressed by Shore’s attorney, Bruce May.

    “…So just to manage expectations, from our perspective, we’re looking for reasonable rates. We’re looking for rates comparable to FPL’s rates.”

    I am picturing a cartoon of Little Lord Fauntleroy, the mascot of the Shores Town Council, sitting in his sandbox, saying, “I want FPL rates! I want FPL rates!”

  8. Where did I hear that Indian River Shores is the wealthiest community in Florida? Doesn’t matter. We don’t have a pool (nor want one either). We don’t have 3 air-conditioners. Our little home has a good-enough central system put in by the previous owners. The mortgage is paid off on this dinky little house; don’t owe anything on our 10 yr old car nor on our 21 yr old pickup truck. That’s our choice. We set our thermostat at 77 or 78 degrees. That’s our choice. We use less than 1,000 KWH of electricity per month. Our choice. We all do have choices. City of Vero Beach COULD have chosen not to expand their service beyond city boundaries. Had the city fathers known what the future held, I suspect they would have been reluctant to do so–except it seemed like the right thing to do.

  9. We’ll said Cathy if I lived in the shores what would 20 more dollars be on a Electric bill turn on the ceiling fans enjoy the breeze

  10. What is “unconscionable” Mr. Wopnick is that I get the impression that you feel moving into the city limits/mainland would be like buying a piece of property in a landfill. Not your cup of tea. However, you did head up the Veterans (or similar group). Good enough to play/socialize but not to lay your head and call home. Hmmmm….

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