COMMENTARY

Related Story –  FMPA: FPL’s latest terms “unworkable and unacceptable”

“Reisman seems fixated on the notion that Vero Beach can somehow walk away from its contractual obligations. It is one thing for crackpots to march before the City Council during public comment time and make such unrealistic assertions, but Reisman is supposedly a well-educated, intelligent, insightful journalist. Well, as they say, a mind changed against its will is of the same opinion still.”

MARK SCHUMANN

One 24-hour news channel offers a regular program, “Reliable Sources,”  dedicated to covering the news media. “Now more than ever, the press is a part of every story it covers. And CNN’s ‘Reliable Sources’ is one of television’s only regular programs to examine how journalists do their jobs and how the media affect the stories they cover,” reads CNN’s description of the mission of “Reliable Sources.”

“Unreliable Sources,” it seems, is a more fitting title for a feature examining Vero Beach and Indian River County’s news media.

At least when it comes to reporting on Florida Power & Light, and specifically on the company’s effort to acquire Vero Electric, the Press Journal can manage little more than biased, one-sided reporting, along with often poorly reasoned analysis. (Press Journal publisher, Bob Brunjes, is married to a key FPL vice president involved in the company’s effort to expand its customer ibase by acquiring municipal utilities, starting with Vero Electric.)

Take for example Sunday’s column by Press Journal pundit, Larry Reisman.  Still swooning over the high privilege of having been in the presence of Florida Power & Light CEO, Eric Silagy, Reisman repeated the executive’s charge that the Florida Municipal Power Agency backed out of a deal that would supposedly have cleared the way for the sale of Vero Electric.

Reisman wrote, “In February 2014, Silagy announced he’d reached an agreement with FMPA CEO Nicholas Guarriello to buy Vero Beach out of its contract for $52 million.”

“…Silagy announced…” This is not serious, responsible, balanced reporting, because Reisman either has or should have a copy of Guarriello’s letter to FPL explaining that, in his view, he never reached an agreement as Silagy described it.

Guarriello’s side of the story is that the $52 million was to compensate the FMPA for absorbing Vero Beach’s power entitlements for three years. Completely separate from the power entitlements is the issue of contingent liabilities. Those obligations FPL has steadfastly refused to accept. 

State Rep. Debbie Mayfield, in a recent meeting of joint legislative committee, accused Guarriello of backing out of the “deal” he supposedly made with Silagy. If Reisman is going to practice responsible journalism, he would do well to view the video of that meeting, or at least to read the transcript of Guarriello’s answer to Rep. Mayfield. Then, in fairness to Press Journal readers, Reisman should report the Guarriello’s side of the story.

Reisman also persists in exaggerating the saving to be expected from any sale of Vero Electric to FPL. Based on the latest statewide bill comparision, FPL’s rate for 1000 kWh is 94.87, and Vero Electric’s rate is 123.93. That is a rate differential of 23.4 percent, not “30 percent or so,” as the Press Journal reported, and not the “31 percent” Resiman reported. Why the continual exaggerations?

Actually, it is not an exaggeration so much as it is a misrepresentation. In using the higher number, FPL’s local operatives and allies, including Reisman, seem to believe readers need to know how much more they would pay, if the City of Vero Beach were to acquire the state’s largest investor-owned utility. More within the realm of possibility, though still highly unlikely, is the consummation of FPL’s proposed acquisition of Vero Electric; in which case, what readers need to know is how much they would save, if they become customers of FPL. 

In a scene from the movie, “All the Presidents’ Men,” informant “Deep Throat” said to Washington Post Reporter, Bob Woodward, “I hate the press, because I hate laziness and inexactitude.”

The Press Journal’s description of the rate differential as “some 30 percent” is an example of the inexactitude “Deep Throat” saw as such a disservice to the news consuming public.

It seems more than coincidental Silagy was invited to the newspaper’s offices just two weeks in advance of Vero Beach’s municipal election. Could the timing have anything to do with helping to publicize Silagy’s talking points in advance of the election. FPL has been running a heavy schedule of advertising on TCPalm.com lately, sometimes with three ads dominating the home page. It that what a big advertising buys, direct access to the editorial board?

Silagy was careful to choose as unfavorable a rate comparison as possible to Vero Electric, and Reisman obliged in reporting it. “The city’s rate for 1,200 kilowatts was 32nd highest of 37 electric operations measured by the Florida Municipal Electric Association on its website, publicpower.com.”

Isn’t it interesting that FPL, in its own advertising, regularly references its rate for 1000 kWh.  And isn’t it equally interesting neither Silagy nor Reisman bothered to acknowledge that Vero Electric’s rates have come down 6 percent this year, and will drop further next month, when revisions to the City’s wholesale power contract with the Orlando Utilities Commission go into effect. Silagy and Reisman seemed careful to avoid any discussion of the fact that, with the OUC contract revisions, Vero Electric’s rate will be within the statewide average for municipal utilities, and well below the statewide average for investor-owned utilities.

While FPL public relations specialists would like the people of Vero Beach to believe they are suffering under burdensome power rates, the fact is that more than 2 million Floridians who are customers of investor-owned utilities regulated by the Public Service Commission are paying rates equal to or higher than those charged by Vero Electric.

In serving up Silagy’s pre-election campaign propaganda, Reisman quoted him as saying,  “While I may not be litigious in nature … I would take a hard look at any way possible to get out of the contracts that are holding all of us hostage.” Reisman added, “noting options include working on legislation or declaring bankruptcy to force a ‘”meaningful discussion” with the municipal power authority.

Legislation? Legislation that might enable FPL to begin expanding its customer base by acquriing municipal utilities would, of course, have to be found Constitutioinal. Florida is a constitutional democracy, not a plutocracy ruled by Legislators beholden to FPL. 

Litigation? No lawyer has offered a credible legal theory for nullifying Vero Beach’s FMPA contracts. Even Silagy hasn’t articulated a legal theory. He is simply suggesting the people of Vero Beach spend money in search of one, despite the fact those contracts have already been validated by the Florida Supreme Court.

Bankruptcy? That is the Trump card. If you make a bad deal, declare bankruptcy. Given Vero Beach’s tax base, taxing authority, and its land holdings, a judge would laugh a bankruptcy petition out of court. 

Without intending to, what Reisman’s column revealed is that the bright minds at FPL truly have no idea how to move the sale forward. This must be a great disappointment to Silagy, who several years ago told a group of investors one of his company’s opportunities for growth would be in the acquisition of municipal utilities, starting with Vero Electric.

In a Palm Beach Post report, Silagy was quoted as saying:

“One of the things that’s happened is I’ve now got the governor of Florida going around to the munis saying,’Why aren’t you selling yourself to FPL?’ which of course, you can imagine, I’m flattered, but at the same time, I get some folks in the munis who say, ‘That’s really not helpful.’ But I can’t help it. But it’s because he’s trying to drive more cost competitiveness into the state and sees that’s a really great way to do it,” Silagy said.

Reisman seems hopelessly fixated on the notion that Vero Beach can somehow walk away from its contractual obligations. It is one thing for crackpots to march before the City Council during public comment time and make such unrealistic assertions, but Reisman is supposedly a well-educated, intelligent, insightful journalist. Well, as they say, a mind changed against its will is of the same opinion still.