TALLAHASSEE — A Florida Public Service Commission staff report published Thursday regarding Indian River County’s request to clarify its rights and options once the County’s franchise with Vero electric expires in 2016 recommends the Commission not give the County an answer.
The 112-page statement published in advance of a Nov. 25 hearing denies the County’s petition for declaratory statement not on the meat of the issue — whether or not electric territories are permanent — but based upon the staff analysis that the request did not meet the statutory requirements for it to be answered by the PSC.
The Commission can go with the staff recommendation, which it’s been known to do most of the time, or it could decide to issue an opinion anyway.
Oral arguments are scheduled to be heard in Tallahassee when the PSC meets on Nov. 25. Both Vero and the County are expected to send their attorneys, and possibly elected officials, to attend the proceedings.
Both the Florida Municipal Electric Agency and various investor-owned utilities around the state including Florida Power and Light, Tampa Electric Co., Duke Energy and the Florida Electric Cooperatives Assocation have lined up to defend Vero’s assertion that it enjoys a permanent service territory, not one that is up for grabs every 30 years when a franchise agreement expires.
The Orlando Utilities Commission has also filed as an intervening party, asserting that its contractual relationship with Vero electric would be hurt if the 20,000 or so County customers were allowed to go elsewhere for power in 2017.
Indian River County Attorney Dylan Reingold had little to say about the report on Thursday afternoon.
“We are reviewing the PSC staff report and we look forward to presenting our position on November 25th,” Reingold said.
Vero Beach’s lead utility attorney, Robert Scheffel “Schef” Wright gave a statement after reading the report.
“The City agrees with and supports the PSC Staff’s recommendation to deny the County’s Petition,” Wright wrote. “As the Staff have correctly concluded, the County’s Petition is legally improper for a number of reasons. Although the City requested dismissal of the Petition and the Staff have recommended denial, the basic result is the same, and we are pleased that the Staff have adopted several of the City’s legal arguments in reaching their conclusion.”
The PSC staff report several times cites that there is a related circuit court suit pending, and that pursuant to Florida statute, the parties are currently engaged in a mandatory conflict resolution process that is prescribed when government entities sue each other.
The Town of Indian River Shores sued Vero in July and Indian River County opted to be a party to the mediation process, though the County has not filed its own lawsuit or signed onto the Shores’ case.
Shores Mayor Brian Barefoot issued a statement Thursday afternoon reacting to the staff report and reiterating the Town’s legal position that — though the Shores and County share a common concern over unreasonable electric rates — the Town’s arguments differ from those of the County.
“Earlier today, the staff of the Florida Public Service Commission (PSC) issued a memorandum recommending that the PSC decline to issue a declaratory statement to Indian River County, which had petitioned for guidance regarding the County’s rights upon the expiration of its franchise agreement with the Vero Beach electric utility. The PSC staff recommendation appears to be based on procedural grounds, and does not address the substantive issues raised in the County’s petition,” Barefoot said.
“While we support the County’s efforts to protect its residents from the City’s oppressive electric rates and utility practices, it’s important to point out that the PSC staff recommendation has no bearing on the lawsuit our Town has filed in circuit court. Our lawsuit is fundamentally different that the County’s filing with the PSC. Our Town and the County are separate and distinct legal entities that have filed in separate and distinct venues under separate and distinct legal principles,” the Shores statement continues.
Based upon the fact that the County is unlikely to get much useful guidance out of the Nov. 25 hearing, and that there is the off-chance that the PSC would take up the matter and end up ruling in a way unfavorable to the County, it’s possible that the Board of County Commissioners may decide to rescind the petition prior to the hearing.
Vero Beach Vice Mayor Jay Kramer last week predicted that the hearing would never happen, that County officials would pull it and not risk losing.
The full report for the case, Docket number 140142 can be viewed on the Florida Public Service Commission website.
