MARK SCHUMANN

Vero Beach City Manager Jim O’Connor sent a letter to Indian River Shores leaders today seeking their cooperation in securing Florida Public Service Commission review and approval of Vero Electric’s rates.

Citing concerns that a proposal by the Indian River Shores Town Council to claim rate setting authority will lead to more legals bills and years of further litigation, O’Connor, in a letter to Town Manager Robert Stabe, indicated city leaders are prepared to submit to and abide by the rate setting authority state statutes confer upon the PSC.

The PSC already reviews and approves rates for the state’s investor-owned utilities, but does not set rates for municipal utilities, such as Vero Electric.

Town leaders are scheduled to meet in special session Friday morning at 8 a.m. to hear the final reading of an ordinance giving the Town Council the authority to approve electric rates to be charged Town residents. O’Connor’s letter makes it clear Vero Beach leaders are prepared to challenge the move in court.

If the Shores and Vero Beach end up in court over electric rates, it will be the second major issue the two municipalities are litigating. Vero Beach and the Shores are already facing off over the Town Council’s assertion that it, not the PSC, has the authority to establishing electric service territories within the Town.  The Shores has spent more than $500,000 pursuing this case.

The full text of O’Connor’s letter is presented below.