COMMENTARY
“According to PSC staff, any modification to existing service territory agreements must be to the mutual benefit of all customers affected.”
“Given the inclination of Shores leaders to make mischief and to spend money, Vero Beach voters should pay close attention this fall to which candidates are beholden to Shores patrons. Just as importantly, voters would do well to determine which candidates are committed to standing up for Vero Beach.”
MARK SCHUMANN
As recently as last week, Indian River Shores Mayor Brian Barefoot was putting a positive spin on his and the Town Council’s attempt to reinterpret the Florida Constitution. In a letter emailed to Town residents last week Barefoot wrote, “The Public Service Commission is scheduled to address our petition on the unique constitutional issue next month.”
In advance of the PSC’s July 7 meeting, PSC staff today released its recommendations. Quite simply, PSC staff dismissed the “unique” arguments Shores leaders have spent nearly $1 million making before the courts and the PSC.
Listening to the rationale Barefoot and his fellow council members use to justify expensive litigation, you get the sense they believe the Shores in a sovereign principality, not a municipality governed by the laws of Florida.
At the heart of the Town’s legal argument is the “unique” claim that the Shores Town Council, and not the PSC, has the Constitutional authority to determine which utility will provide electric service within the Shores. Earlier this year, the Florida Supreme Court in a similar case affirmed that the PSC has “exclusive and superior” authority to establish service territories.
In the Shore’s case, PSC staff again set out the legal rationale for not allowing municipalities to thwart the mission of the PSC in establishing service territories. That mission is to ensure a stable and economically viable state-wide power grid. These larger concerns transcend the parochial interests of any single municipality.
In rejecting the Shores’ request to assign its territory from Vero Beach to Florida Power & Light, PSC staff explained in great detail why such a move cannot be justified. Unless the larger public interest is served, they said, redrawing service boundaries makes no sense. In this case, for example, it is not enough that some Shores residents would supposedly benefit. Any modification to existing service territory agreements must be to the mutual benefit of all customers affected.
Assuming the PSC follows its staff’s recommendations when it meets July 7, where will that leave Shores leaders? Unfortunately, it will leave them still meddling in Vero Beach politics, pushing for a partial sale at a fire-sale price.
Just this week, Indian River Shores’ unofficial representative on the Vero Beach City Council, Pilar Turner, argued for “making a deal.” Turner, her ally on the City Council, Harry Howle, and their supporters in the Shores, have yet to explain how reducing Vero Electric’s customer base by 3400 meters would in any way benefit the remaining customers. Only someone employing the most twisted logic will be able to make that case.
In the realm where reason prevails, the best one could possibly do would be to argue that whittling down the size of Vero Electric will not hurt the remaining customers. To keep those customers whole, to not shaft them with higher rates for the sake of Shores residents, will require FPL to pay, not $13 million, but closer to $42.5 million.
If Turner and Howle vote to sell Vero Electric’s Shores customers for much less than $42.5 million, they will be breaching their fiduciary responsibility to the residents of Vero Beach. Presumably, at least one lawsuit would follow.
If FPL executives were to pay much more than their initial offer of $13 million, they would certainly not be acting in the best interest of the investors.
Given the shrinking rate differential between Vero Electric and FPL, one could never justify asking Shores residents to pay the difference between FPL’s offer and the price Vero Beach needs. In fact, if Barefoot and company put forth such a proposal, they should be tarred and feathered and run out of Florida’s wealthiest town, for they will clearly have lost all connection with reality.
Before the sun sets on the ambitions of Shores leaders to liberate themselves from Vero Electric, there will still be at least one more Vero Beach municipal election in which they will again use their considerable financial resources in hopes of affecting the outcome. Given the inclination of Shores leaders to make mischief and to spend money, Vero Beach voters should pay close attention this fall to which candidates are beholden to Shores patrons. Just as importantly, voters would do well to determine which candidates are committed to standing up for Vero Beach.
Indian River Guardian 
Unfortunately two of the candidates vying for Debbie Mayfield’s position in Tallahassee have indicated they are in favor of selling to FPL. Perhaps the VB Power Plant isn’t the most important issue in our city but it takes up a lot of time, effort, and money. Our City Manager and Council have other items to attend to. No way should we settle for less than the $42.5 million dollars. Selling out at any price could put the rest of us in the city having to come up with more money out of pocket for services. It would be a sad day when we found ourselves at the mercy of a huge corporation like FPL for our power. My gut tells me we, as less populated area of FPL’s service area, would likely end up at the tail end of service recovery after a major storm. Regardless, if cost of electric power is the only criterion used to determine which is best, I’d prefer to stay with the Municipal system. I know the workers have families here and excel at what they do. Hopefully, those in Indian River Shores will understand we are not giving in to them or anyone else.
It would appear to me that considering FPL’s upcoming rate increases (most people know something about these in spite of the PRESS JOURNAL and 32963) Vero Beach is in position of strength in any discussion.. It also appears to me that there is a definite possibility that once the dust settles (FPL’s increases and Vero Electric’s continued efforts to reduce rates ) the rate differential will be small enough so that the benefits of Vero Electric service will be well worth the cost as compared to FPL service (Hurricanes 2004 and locaL service call response for examples)
Vero Electric provides quicker and better service than FPL Stay with our neighbors and friends at Vero Electric, If Turner and Howle insist upon selling to Indian River Shores at a ridiculously low price we should start a recall petition against both of them.
John, you hit the nail on the head………….a recall would hurt more than their egos, a spot which is their biggest vulnerability.