Reader Poll

Among the final revisions Vero Beach leaders have requested is deletion from the existing contract of any right the OUC would have sometime between now and 2023 re-power and possibly expand generation capacity at the the City’s waterfront power plant.

3 comments

  1. I never heard the attorney offer or the Council direct him to request the deletion of Section 12 – did I miss something, or did you make that up?

  2. Mr. Mucher,

    The short answer to your question is that, unlike those who are attempting to mislead the public into believing a sale of Vero Electric to Florida Power & Light is possible, it is not my practice to, as you say, “make things up.”

    A fuller answer to your question can be found in the following email from Schef Wright, sent yesterday to City Manager Jim O’Connor and City Clerk Tammy Vock.

    From: Schef Wright
    Date: 10/10/2015 6:05 PM (GMT-05:00)
    To: “Vock, Tammy (TVock@covb.org)” , “‘joconnor@covb.org'”
    Cc: “Fletcher, Ted (TFletcher@covb.org)” , “William Herrington (whhenterprises@earthlink.net)”
    Subject: PPA Changes Agreed Upon by OUC and COVB

    Dear Tammy and Jim –

    Pursuant to the requests of the Utilities Commission at last Monday’s meeting, I have communicated with our counterparts at OUC and am happy to report that, at least in my opinion, we have negotiated clarifications and modifications to the PPA that address all 3 of the Utilities Commission’s requests directed to the PPA language. Specifically, as shown on the attached, OUC and we have agreed that:

    1. Section 12, relating to the option for OUC to lease the site of the Vero Beach Power Plant, will be deleted.
    2. Section 15.11.2 of the PPA will be amended to describe the pro-rata allocation methodology in the event that Vero Beach successfully pursues and obtains stranded cost recovery pursuant to the Change in Law provision. Simply, we agree that we would split any stranded cost award according to the percentage that the OUC-related stranded costs represent of the City’s total claim for stranded cost recovery..
    3. Section 3.2(b) of Exhibit C will be clarified such that it is clear the City’s payments for Capacity Deficient energy (MWh) will be based on OUC’s actual costs of market power purchases, if such market purchases are used to serve the City’s load in a Capacity Deficiency situation.

    By the way, I’ve attached copies (in xlsx and pdf formats) of a spreadsheet furnished by Ted Fletcher showing that the last time that the City’s monthly peak demand exceeded 191 MW, which would be the threshold above which Capacity Deficient pricing would apply, was in January 2010.

    Bill Herrington and I, in consultation with Ted, are working to try to answer the Utilities Commission’s request for clarification or additional information as to the probability of the “minimum demand floor” provision of the New PPA applying in a way that would impose additional costs on the City.

    Please forward these to the Utilities Commission and Finance Commission, and to the City Council, at your earliest convenience.

    Thanks very much. You or any member of either Commission are welcome to call me on my cell, 850/933-2016, any time. I’ll be driving to Vero tomorrow afternoon, and I look forward to seeing you on Monday morning.

    All the best, Schef

    Robert Scheffel “Schef” Wright
    Gardner, Bist, Bowden, Bush, Dee, LaVia & Wright, P.A.
    1300 Thomaswood Drive
    Tallahassee, Florida 32308
    Telephone 850/385-0070
    Facsimile 850/385-5416
    Cell 850/933-2016
    e-mail: Schef@gbwlegal.com
    Firm Website: http://www.gbwlegal.com

  3. I based my initial report on the Commission and Council meetings of last week. Promoted by your question this morning, I made some call to check the facts. Isn’t is interesting that to those with whom you disagree, you assume the worst intentions? Next time, maybe you should be left to do your own fact checking.

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