PSC declaratory statement would affirm Vero Beach’s right to serve its out-of-city residents

MARK SCHUMANN

If the Florida Public Service Commission follows a PSC staff report released today, the Indian River County Commission, and possibly also the Indian River Shores Town Council, will be dealt a serious setback in their efforts to force Vero Beach to abandon its out-of-city electric customers and utility infrastructure. The PSC is to act on the issue addressed by the staff report when it meets in Tallahassee Feb. 3.

The Indian River County Commission, in a petition filed with the PSC, and the Indian River Shores Town Council, in a lawsuit file last July in circuit court, both contend their electric service franchise agreements with the City of Vero Beach, which expire in 2017 and 2016 respectively, are superior to PSC-approved service territory agreements giving Vero Beach both the right and the responsibility to serve some 22,000 customers outside the city limits.

Specifically, the PSC staff report recommends, “The Commission should declare that Vero Beach has the right and obligation to continue to provide retail electric service in the territory described in the Territorial Orders upon expiration of the Franchise Agreement.”

Contrary to PSC staff’s interpretation of applicably Florida law, the Indian River County Commission has argued its franchise agreement with Vero Beach is the sole source of the City’s authority to serve customers in the unincorporated areas of the county. Not so, says PSC staff.  Just as Vero Beach’s special counsel, Schef Wright, has argued, PSC staff contends the Commission, and not county commissions (and presumably not town councils), has the exclusive authority and responsibility to ensure a stable, reliable economically viable statewide power grid.

Concerned about the integrity of their own service territories, every electric utility in Florida, Including FLorida Power & Light, has argued the PSC to reject the County’s argument.

The report sites Section 366.04 of the Florida Statues, “In addition to its existing functions, the [C]ommission shall have jurisdiction to regulate and supervise each public utility with respect to its rates and service; assumption by it of liabilities or obligations as guarantor, endorser, or surety; and the issuance and sale of its securities. . . . The jurisdiction conferred upon the [C]ommission shall be exclusive and superior to that of all other boards, agencies, political subdivisions, municipalities, towns, villages, or counties, and, in case of conflict therewith, all lawful acts, orders, rules, and regulations of the [C]ommission shall in each instance prevail.”