INDIAN RIVER SHORES — The Indian River Shores Town Council voted unanimously Friday to file a lawsuit against the City of Vero Beach for charging unreasonable electric rates and for not exercising prudent management of its utility.
The council also voted to notify the Vero Beach City Council that the Town will not renew its 1986 electric franchise agreement when it expires on Nov. 6, 2016.
On that date, attorney Bruce May of Holland & Knight law firm stated, Vero would no longer have permission to operate within the Town or to have its utility equipment in the public right of way.
To fund the legal proceedings, which will commence immediately, the Council approved $250,000 to cover legal and consulting fees that it may incur prior to Sept. 30 when the fiscal year ends.
Mayor Brian Barefoot reminded the public that Shores residents pay an estimated $2 million more in rates than Florida Power & Light would charge for the same kilowatt hours.
“I would like to say that it’s unfortunate that we’ve come to this point,” Barefoot said, but that the Council must act to protect its residents.
Councilman Tom Cadden, who has worked on the electric issue for nearly five years has strived to get the low FPL rates he enjoys as one of the 20 percent of northern Shores residents already on FPL for his neighbors.
“I’d like to see this before I pass away,” Cadden said, acknowledging that litigation is often an arduous process.
Former Shores Councilman and current Vero Beach Utilities Commission member Mike Ochsner has agreed to join the Town’s suit as a citizen rate payer and plaintiff.
Indian River County Attorney Dylan Reingold and Indian River County Commissioner Bob Solari were both on hand to witness the vote and both expressed interest in potentially joining the suit.
The Board of County Commissioners next meets on Aug. 19.
Indian River Shores has 3,500 households on the Vero Beach electric system, but those ratepayers do not get to vote for the City Council members charged with managing the electric utility and its rates.
This story will be updated.
