INDIAN RIVER COUNTY – Vero Beach city leaders have been asked to make a presentation to the Board of County Commissioners justifying why the city should remain in the electric business.
Commissioners unanimously supported asking the city to present a financial model that would show the city is better off continuing its operation of the Vero Beach Electric Utility.
The county’s decision came after receiving a similar presentation from Glenn Heran and Dr. Stephen Faherty, who have been vocal critics of the city’s operation of the electric utility.
“I’m sorry,” Heran said. “Nobody can shoot a hole in it. That’s why I’m here. Please, somebody shoot a hole in it. Somebody tell me I’m wrong, because if I’m right, then we shouldn’t be in the utility business. We should have sold this a long time ago.”
Heran’s comments came after presenting a financial model that shows the city would be financially better off if it were to give away its electric utility to Florida Power and Light, including paying a $20 million penalty to the city’s current power provider.
He called that scenario the “most absurd” one possible, explaining to commissioners that the Florida Public Service Commission would never allow Florida Power and Light to acquire the utility for free.
“Where is the incentive for the city to want to keep the power plant?” Commissioner Gary Wheeler said after Heran’s presentation. “They’ve got to have some reason.”
Members of the Vero Beach City Council have expressed support of keeping the power plant, stating that they believe having local control and operation of the utility allows the city to provide faster, better and more reliable service to its customers.
Commissioner Bob Solari said that people looking to move to the area – either to live or set up a business – are first asking who provides the utilities, leading many to shy away from Vero Beach and the portions of the county that receives the city’s utility services.
Solari, a 29-year resident of the City of Vero Beach, said that he plans to remain in his Vero Beach home, but many others cannot afford the “privilege” of doing so – that the electric utility has gotten too expensive.
Currently, the city’s electric rate is 34 percent higher than that of Florida Power and Light, according to Heran and Faherty. They said that means Vero Beach electric utility customers are paying $23.5 million more each year than they would if they were on Florida Power and Light.
Commissioners agreed that if they were the ones operating the electric utility and were presented with such information they would hold a workshop to discuss the numbers, debate it and determine how to proceed.
The board agreed to ask the City of Vero Beach to present its own financial model of the electric utility and, only after having made their presentation, be allowed to critique Heran and Faherty’s model.
“I’d really like to get to the bottom of this,” Wheeler said, explaining that he has tried to remain neutral and not allow the county to overstep its bounds when dealing with another local government.
Commissioner Wesley Davis raised the issue that it’s not just residents who are paying the higher electric rates, it’s also the county government, including the School District, the Sheriff’s Office and County Administration.
A date has not yet been set for when representatives from the City of Vero Beach might present a model. As of 2 p.m., the Vero Beach City Clerk’s Office had not received a phone call from the county regarding the requested presentation.
Whether the City Manager’s Office had received a call was not immediately known. City Manager Jim Gabbard was not immediately available to make a comment regarding the county’s request.
A message was left for Acting Director of Vero Beach Electric Utilities John Lee seeking similar comment. That message was not immediately returned.