MARK SCHUMANN

Through December 2014, the Town of Indian River Shores was billed $394,573.81 by two law firms and a public relations consultant, all working on the Town’s lawsuit against the City of Vero Beach.

Claiming their Town has a “sovereign” right to determine who will provide electric power service within its borders, the Shores Town Council is suing to force Vero Beach to abandon its Shores customers and to remove its utility infrastructure from Town right-of-ways when the franchise agreement between the Shores and Vero Beach expires in 2016.

The Shores’ circuit court case, which was filed last summer, is in abeyance until March 2, supposedly to give the Shores time to consider it options, and to afford Vero Beach an opportunity to develop a plan for lowering rates. Shores officials have said the only rates they will accept from Vero Electric are ones equal to or lower than Florida Power & Light.  Vero Beach officials, who reduced rates twice last year, have said they can likely get to within 10 percent of FPL.  A rate differential of 10 percent, Shores officials have said, will be unacceptable.

For the fiscal year which began October 1, the Town moved $191,769 from unrestricted reserves to cover legal costs. The transferred reserves are just about enough to pay invoices from Curley and Pynn Public Relations and the law firms of Holland and Knight and Radey Attorneys for work done in October, November and December. The Town entered the year with an additional $257,563 in unrestricted reserves.  How much longer those reserves last may depend of whether the Shores ultimately pursues its lawsuit against Vero Beach. A court case, some have suggested, could cost million of dollars, and will almost surely work its way to the Florida Supreme Court.

Earlier this week, the Florida Public Service rejected the Indian River County Commission’s request for clarification of what rights, if any, it has to determine who will provide electric service in the unincorporated areas of the county now served by Vero Electric.  At the same time, the PSC affirmed is exclusive and superior authority to establish electric service territories.  The decision effectively ensures that, if the proposed sale of Vero Electric to Florida Power & Light cannot be concluded, Vero Beach will continue to serve its county customers beyond March 2017. If the County refuses to renew its franchise agreement with the City, Vero Electric’s county customers should see a 6 percent drop in their bills.

The PSC left unaddressed address the issues raised in the Shore’s lawsuit. The weight of the Shores’ case rests on the assertion that the Shores Town Council, and not the PSC, has the sole authority to determine who will provide electric service to Town residents and businesses.  For the Shores to prevail in court, it will have to successfully argue that the authority of the Florida Public Service Commission does not supersede the Town’s “sovereign” powers.

Curley and Pynn Public Relations
June, 2014	7162.50
July, 2014	18168.75
August, 2014	11461.30
September, 2014	4613.00
October, 2014	9181.25
November, 2014	3150.00
December, 2014	4881.75
	58618.55
Radey Attorneys
June, 2014	10016.50
July, 2014	7571.00
August, 2014	16809.54
September, 2014	7638.00
October, 2014	10796.19
December, 2014	9973.20
	62804.43
Holland and Knight
April 29, 2014	5000
June 16, 2014	4689.63
August 1, 2014	22907.54
August 8, 2014	30055.54
August 14, 2014	56201.38
September 9, 2014	41426.02
October 23, 2014	22185.51
November 13, 2014	22974
November 24, 2014	12973.55
January 21, 2015	54737.66
	273150.83