Events focus on sale of Vero Beach Electric utility to FPL

VERO BEACH — More than 200 people showed up to two events Thursday to find out more about what Vero Beach Electric and its customers might look like after a sale to Florida Power and Light.

For three hours in the late afternoon, Florida Power and Light hosted a community open house in the Parish Hall at Holy Cross Catholic Church on A-1-A in Central Beach.

There were no speeches or formal presentations at the FPL event, but the company brought more than a dozen employees and executives to speak with Vero Beach residents and ratepayers.

Several of the key players in talks with the City of Vero Beach were on hand, including FPL Vice President of Corporate and External Affairs Pam Rauch. Rauch, along with Amy Brunjes, was among the first to visit the Vero Beach City Council in December 2009 when the council invited FPL to begin a conversation about a sale of the electric utility.

When asked what the goals for the evening were, Rauch said there were “no specific goals,” but that she was happy with the turnout of 150 people and with having the opportunity for FPL staffers to meet one on one with Vero Beach residents.

Stations were set up around the room with literature and displays about the various departments of FPL. One table focused on technical matters and distribution of power. Another offered details about FPL’s customer service.

“We designed it so everyone could come out and get their questions answered. Whether they be about reliability or bills or customer service, we have thos people here,” said FPL spokesperson Jackie Anderson.

Anderson did not draw any sharp comparisons between FPL and Vero Beach Electric, but did emphasize what she feels FPL does exceptionally well.

“One thing we are differ on is that for FPL, communication is key, it’s very important for us,” Anderson said.

Anderson pointed out two tools that FPL customers have at their fingertips — Power Tracking which shows in detail where power outages are and the status of repairs and another interactive map which shows any system improvements underway. FPL customers can access these maps from a computer or smart phone and find out where FPL crews are working and why, and when power is expected to be back up.

As the FPL event was breaking up at 7 p.m., a forum hosted by former Vero Beach Mayor Warren Winchester was beginning. Winchester rented out the River House near the Vero Beach Marina, where about 100 people gathered to hear Winchester, in his words, “set the record straight” about the Vero Beach Electric Utility.

Winchester had prepared flip-charts with an overview of the history of the utility and its various contractual agreements. He explained his understanding of the city’s entanglements with the Florida Municipal Power Angency and with the Orlando Utilities Commission.

Winchester criticized the Vero Beach City Council for its decision to hire transactional attorneys Edwards Angell and Dodge to work through the city’s nine pending contracts on behalf of the City Council, saying it was the “wrong way” to go. Instead, Winchester said City Manager Jim O’Connor, “Who I know and trust,” he said, should be the one handling those negotiations.

“I don’t think the council members we currently have are qualified to negotiate a $180 million deal,” Winchester said.

Attendees were asked to write questions on index cards and, after his presentation, Winchester fielded some questions and handed others off to Mayor Jay Kramer and to Vero Beach Utilities Commission Chair Herb Whittall.

Vice Mayor Pilar Turner also attended the event and attempted to correct some of the information Winchester was disseminating as fact. The discussion revolved around what might happen at the power plant site once it’s leased to FPL. Winchester warned that FPL could keep it indefinitely and even add generating capacity at the plant.

“You’re just speculating,” Turner said.

“We’re trying to get the facts out. Let’s state the facts and not speculate,” Turner said.

Central Beach resident Daniel Guffanti stood up and pointed out that both Turner and Kramer speaking at the meeting could possibly be construed as a Sunshine Act violation and Turner subsequently left the meeting, stating she felt that she was “not wanted” there.

The tone of the bulk questions seemed to indicate that the crowd at Winchester’s event was skeptical of the city’s handling of talks with FPL so far and even more skeptical of the upcoming ballot question authorizing the city to lease the power plant property for the purpose of selling the electric utility.

Some locals in the audience were also disappointed that City Manager Jim O’Connor had been told by the City Council not to attend the event. On Tuesday, the City Council reaffirmed its stated policy to sell the utility and directed O’Connor not to be part of Winchester’s event, which appeared to be billed as a counter-punch to the FPL awareness event.

Kramer repeatedly offered his proposal for a “partial sale” of the utility as an alternative to off-loading the whole system and getting out of the utility business.

“We need to put Vero Beach first,” Kramer said. “I see a lot of people standing up for the county and a lot of people standing up for FPL but I don’t see a lot of people standing up for the City of Vero Beach.”

Kramer said other buyers are interested in purchasing the 61 percent of customers outside the Vero Beach city limits, but he did not disclose who those other buyers might be.

There was a lengthy discussion on whether or not FPL would walk away from the negotiating table if voters reject the Nov. 8 referendum. Kramer said the city is restrained by an exclusivity clause in the FPL Letter of Intent as long as FPL is engaged with Vero in talks.

When the City of Vero Beach approached various investor-owned utilities in Florida for proposals to purchase the Vero Beach system, FPL was the only company which responded with any interest.

“If FPL walks away it allows us to do several things. We can do a partial sale,” Kramer said.

Then Kramer said it would be of “benefit to the outside customers that FPL stay engaged with the city and with the deal.”

Even the city’s own Transmission and Distribution personnel and Councilman Craig Fletcher, an engineer, have said a breakup of the Vero system would be a lengthy, tedious and expensive task which could leave the remaining system more vulnerable than as it currently sits as a whole.

Barry Moline, Executive Director of the Florida Municipal Electric Association, traveled from Tallahassee to attend both events, despite the fact that Vero Beach is no longer a member of the FMEA trade organization. Moline and the FMEA have said the sale to FPL is a “bad deal” for Vero Beach. Moline did not speak at Winchester’s event, but was called on once by Kramer to verify some information needed to answer a question.

Panelists and citizens tossed out various opinions as to whether or not the ballot question is binding and whether or not the passage of the referendum would or should be challenged legally, but none of the opinions expressed were given by anyone with a background or education in the law.

Representatives from Citizens for a Brighter Future, the Policical Action Committee formed to promote a “yes” vote on the Nov. 8 referendum were present at both events. The PAC has printed signs and will be doing a direct mail campaign next week asking voters to approve the ballot question.

 

 

 

Comments are closed.