NEWS ANALYSIS

Ironically, in representing the Lee County Electric Cooperative before the PSC, May put forward essentially the opposite argument he is now making on behalf of the Shores. One has to wonder if, when they hired May, Shores leaders knew they were choosing to work with a hired gun who is willing to work both sides of the fence. (See: Indian River Shores attorney working both sides of the fence.)

MARK SCHUMANN

Indian River Shores has gone to court to force Vero Electric to stop serving its Shores customers later this year, when the existing franchise agreement between the City and the Town expires. In preparation to defending the City, Vero Beach’s attorneys have asked for, and are now pressing the Shores for information that would substantiate the Town’s claims. So far, Shores lawyers have not been forthcoming.

On March 9, one of Vero Beach’s special counsels, John Frost, sent Shores special counsel, Bruce May, a blistering letter (full text below) threatening to ask Circuit Court Judge Cynthia Cox to force the Shores to comply. “If the above-referenced deficiencies are not corrected within the seven (7) day period, I will have no choice but to file a Motion to Compel,” Frost wrote.

In response to the Shores’ position that Vero Beach should already have much of the information it seeks, Frost wrote, “Again, it defies all logic to assert that Vero Beach should have information in its possession regarding cost incurred by the Town resulting from the Town’s regulation and maintenance of the property that the Town claims ownership of, or in which the Town claims to have compensable interest…)

One of the Shores’ arguments is that upon expiration of the franchise agreement in November of this year, Vero Beach must remove its electric utility infrastructure from town right-of-ways. However, the vast majority of Vero Electric assets within the Shores are located on private property in gated communities.

With three of four counts in its lawsuit already dismissed by Judge Cox, the Shores is left to argue one remaining claim, namely that it deserves to be awarded damages because Vero Electric’s rates are “unreasonable.” In making the Town’s case, Shores attorneys must show the Town has suffered damages, and they must demonstrate that Vero Electric’s rates are unreasonable. Given that the City’s rates are within the statewide average, and are below rates the PSC has approved for several investor-owned utilities, May has a daunting task ahead of him.

May, whose law firm has already billed the Town some $800,000 for his services, has now also taken their case to the Florida Public Service Commission, in hopes of persuading the PSC to modify its long-standing territorial agreement. Since no other utility is formally disputing Vero Beach’s right and responsibility to continue serving its Shores customers, May, could have a difficult time making his case. His first challenge will be to convince the PSC the Town has legal standing to seek a modification to a territorial order.

Ironically, in representing the Lee County Electric Cooperative before the PSC, May put forward essentially the opposite argument he is now making on behalf of the Shores. One has to wonder if, when they hired May, Shores leaders knew they were choosing to work with a hired gun who is willing to work both sides of the fence. (See: Indian River Shores attorney working both sides of the fence.)