A locally based electioneering communications organization largely funded by Florida Power & Light, the George E. Warran Corporation, The Hill Group and a number of citrus companies sent out a mailer to Vero Beach voters claiming they would save 30 percent on their electric “bill” with a sale to FPL.

Will the sale of Vero Electric result in a 30 percent savings for the average customer?

Is Vero Electric’s rate among the highest in the state?

MARK SCHUMANN

The Alliance for Better Florida Communities, a local electioneering communications organization largely funded by Florida Power & Light ($9000), the George E. Warren Corporation ($5000), the Hill Group ($400) and half a dozen citrus companies, mailed a post card last week leading Vero Beach voters to believe they will save 30 percent on their electric bills, if and when Vero Electric is sold to FPL. “What could you do with the 30% savings on your electric bill?,” the group’s mailer asked.

The Alliance also asserted Vero Electric has “some of the highest electric rates in the state of Florida.”

According to the latest statewide bill comparison available from the Florida Municipal Electric Association, Vero Electric’s rate for 1000 kilowatt hours of residential power is $123.93.  FPL’s rate is $99.12, for a differential of 20 percent. The Alliance’s mailer asked Vero Beach voters to consider what they could do with a 30 percent saving on their “electric bill.”

A bill comparison, however, rather than rate comparison, is more relevant and another matter. Vero Beach residents, as is true for customers of Vero Electric who live in the unincorporated areas of the county, will pay a six percent franchise fee as customers of FPL. Adding a 6 percent franchise fee to FPL’s base rate increases the FPL bill for 1000 kWh to $105.14, at which point the differential between FPL and Vero Electric drops to 15 percent. Fifteen percent then, not 30 percent as claimed by the Alliance, is a more realistic estimate of the likely savings Vero Beach residents can expect.

The Alliance, which to date has received nearly 30 percent of its funding from the George E. Warren Corporation, also claimed in its mailing that Vero Electric’s rates are among the highest in Florida.  That claim is, at best, subjective.  One could argue every utility that does not have the very lowest rate is among the highest?  What fairly and accurately constitutes “among the highest?”

Vero Electric’s current rate of $123.93 is below the statewide average of $126.46 for investor owned utilities, and slightly above the statewide average of $121.68 for municipal utilities.  Among 33 utilities in the FMEA bill comparison, 10 have rates higher that Vero Electric.