Unanimous ruling affirms Public Service Commission’s territorial orders

NEWS ANALYSIS

Either because he does not understand utility regulation, or because he is practiced at presenting limited facts, Reingold did not acknowledge that if Vero Electric’s rates were approved by the PSC, the City could well justify higher rates.  Reingold also did not mention that Vero Beach has proposed, and Indian River Shores has rejected, submitting the City’s rates to review by the PSC.

MARK SCHUMANN

In a unanimous decision, the Florida Supreme Court today ruled against the Indian River County Commission in a case in which the Commission sought to overturn a ruling by the Florida Public Service Commission. In that decision, the PSC affirmed Vero Beach’s ongoing right, and obligation, to serve its customers in the unincorporated areas of the county.

Essentially, the justices gave the members of the Indian River County Commission, and their attorneys, a schooling in the meaning of “exclusive and superior.” As it turns out, at least according to Florida’s highest court, those words – “exclusive and superior” – mean exactly what they say. The PSC, and not county commissions, has the sole authority for determining utility service territories.

In its appeal, the County argued that the PSC’s territorial orders will no longer be valid when the franchise agreement between the County and Vero Beach expires next year. Writing on behalf of the court, Justice Ricky L. Polston rejected the County’s position. “The PSC’s declaration that the City ‘has the right and obligation to continue to provide retail electric service in the territory described in the Territorial Order upon expiration of the Franchise Agreement’ is within the PSC’s ‘exclusive and superior’ statutory jurisdiction to determine utility service areas,” wrote Justice Ricky L. Polston in a 16-page ruling.

Oral arguments were heard by the Court last December. At the time, the island weekly, Vero Beach 32963, and the Press Journal reported that the justices seemed sympathetic to the County’s position. County Commissioner Tim Zorc, who attended the hearing of oral arguments in Tallahassee, also reported at the time that he was optimistic the Court would side with the County Commission.

Either because he does not understand utility regulation, or because he is practiced at presenting limited facts, Reingold did not acknowledge that if Vero Electric’s rates were approved by the PSC, the City could well justify higher rates.  Reingold also did not mention that Vero Beach has proposed, and Indian River Shores has rejected, submitting the City’s rates to review by the PSC.

Today’s ruling in a major setback in the County’s effort to force Vero Electric to stop serving its customers in the unincorporated areas of the county. Through the end of last year, the County spent more than $300,000 pursuing its case against the City. This figure does not include Zorc’s extensive travel expenses.

At still greater expense, the Indian River Shores Town Council is pursuing its own attack on the City’s right to continue serving its Shores customers. Through the end of 2015, Shores leaders spent more than $800,000 on their case, which is based on essentially the same arguments as the County’s. A PSC staff report on the Shore’s petition is expected some time this summer.

If the PSC does not rule in the Shore’s favor, Mayor Brian Barefoot and his fellow town councilman will be free to follow the County’s lead in appealing their case to the Florida Supreme Court. Perhaps bracing for still more legal bills, the Shores Town Council is preparing to sell off 5.5 acres of public land, the island enclave’s only public open space east of A1A.

Briefing the members of the Indian River County Commission today, County Attorney Dylan Reingold wrote,”It (today’s Supreme Court ruling) also further bolsters the argument that such municipal electric utility providers are truly unregulated monopolies beholden only to the citizens who live within the municipal boundaries,” he said.

Either because he does not understand utility regulation, or because he is practiced as presenting limited facts, Reingold did not mention that if Vero Electric’s rates were approved by the PSC, the City could well justify higher rates.  Reingold also did not mention that Vero Beach has proposed, and Indian River Shores has rejected, submitting the City’s rates to review by the PSC.