COMMENTARY
MARK SCHUMANN
Several months ago, Indian River County Attorney Dylan Reinhold claimed he was encouraged by an official of the Florida Municipal Power Agency to continue looking for ways to complete the sale of Vero Electric to Florida Power & Light. Supposedly, this conversation took place between Reinhold and a lobbyist for the FMPA.
Most likely, the elevator conversation amounted to far less than Reinhold has made it out to be, for the reality is that no one at the FMPA, or the City of Vero Beach, or the County, or Indian River Shores, or FPL is in a position to re-write Florida contract law. The impediments to the sale, as negotiated between 2011-2013 at a cost of more than $2 million to the ratepayers of Vero Electric, are numerous and complicated, but essentially it boils down to the fact the Vero Beach’s position in two FMPA coal power projects, (Stanton I and Stanton II), are underwater.
Because Vero Beach owes more on its position in these two projects than they are worth, (Currently, coal generated power is relatively expensive compared to electricity generated at natural gas and nuclear plants.), no one in a position to legally assume Vero Beach’s position in the projects is interested.
As if the customers of Vero Electric have not already spent enough to pay lawyers to negotiate a sales agreement that can never be executed, to negotiate a new wholesale power agreement with the OUC, and to defend Vero Electric against legal attacks from the Indian River County Commission and the Town of Indian River Shores, Reinhold and the County Commissions he serves are continuing to force the customers of Vero Electric to incur unnecessary legal expenses, as they persist in seeking a solution where one cannot be found, at least not for the foreseeable future.
At Reingold’s request, representatives of and attorneys for FPL, the FMPA, the County and Vero Beach are to hold a conference call tomorrow at 3 p.m. In an email dated just yesterday, Reinhold wrote that he wants to discuss:
- The partial sale of the outside customers;
- A trade of Vero Beach’s obligations with other municipalities currently in FMPA or outside FMPA;
- The possibility of the City of Vero Beach to defuse its interest in the outstanding (FMPA) bonds;
- If necessary, a contribution from the outside ratepayers or the County and the Town of Indian River Shores, although the Town is not participating in the call, to assist the City of Vero Beach in exiting the FMPA.
“I believe that now is the opportune time for the parties to renew consideration of these options,” Reinhold wrote.
To anyone even remotely familiar with the projected cost of covering all of Vero Electric’s contingent liabilities and bond obligations, it is inconceivable to believe those cost could reasonably be born by the outside customers.
More importantly though, no qualified municipality is even remotely interested in taking on Vero Beach’s “obligations” to the FMPA. By obligations, Reinhold is referring to Vero Beach’s position in the coal fired power plants operated by the Orlando Utilities Commission. In the foreseeable future, there can be no sale because there is no willing buyer. It is as complicate and as simple as that.
In plainest of terms, Reinhold and his bosses are the County Commission are beating a dead horse. Unfortunately, their political posturing is costing the ratepayer of Vero Electric.
Indian River Guardian 
And the billable hours for attorneys continue to mount up. Why the City of Vero Beach would even consider such a meeting escapes me. To paraphrase attorney Welch to Senator McCarthy a long time ago.” Have you no shame, sir?”
No matter what is said the about the sale to FP&L, it is a very expensive dead horse and can not be resuscitated. Any meeting in an elevator has to be looked at with suspicion since someone is going to get the shaft.