Vero, County call for major reforms to FMPA power co-op

VERO BEACH — The Vero Beach City Council and the Indian River Board of County Commissioners both took action this week to call for a change in the apparent abuses and mismanagement of the Florida Municipal Power Agency, based upon the stark findings of a Florida Auditor General’s report released last week (see related story)

On Wednesday, the County Commission met in special session and took the strongest action of the week. Commissioners unanimously supported the hiring of strategic communications help to push for sweeping legislative, regulatory and grassroots efforts to reform the FMPA.

County Administrator Joe Baird said he would hire a firm by the end of this week to work with staff to implement the three resolutions voted up by commissioners.

The County wants hearings in the Florida Legislature to address the issues raised in the audit. They also want the Auditor General to re-visit the FMPA, and its sister lobbying organization the Florida Municipal Electric Association, to drill down even deeper into the lavish spending practices, lack of internal controls and risky multi-million-dollar investments and hedges of the FMPA.

In addition, commissioners vowed to support an upcoming bill to be introduced by Rep. Debbie Mayfield, calling for the power co-op to come under the regulation of the Florida Public Service Commission, as other utility monopolies do. County officials hope that PSC review of costs that the FMPA passes down to local ratepayers on the Vero electric system would curb what they see as egregious abuses and failures within the FMPA’s management.

The County also intends to launch a state-wide public awareness campaign focusing on the FMPA member cities, to educate and mobilize those member cities to join forces in taking back control of the FMPA for their cities and their ratepayers.

The next day on Thursday, the Vero Beach City Council set aside an entire special call meeting — which was intended to be the venue to discuss matters that included a stormwater utility tax and long-range plans for Vero’s waterfront — to address concerns about the Auditor General’s findings.

Vero Beach finds itself in a slightly different position than Indian River County, as Vero is a founding member of the FMPA and for decades has had a voting member on the FMPA’s managing Board. Despite Vero’s efforts to exit the FMPA in order to sell Vero electric to Florida Power and Light, city officials have run into brick wall after expensive brick wall.

“We’re part of the people who set it (the FMPA) up so we couldn’t get out, so we’re part of the problem,” said Councilman Randy Old, who after the November election was appointed to be Vero’s representative on the FMPA Board.

Council members directed Vero staff to bring back resolutions for their consideration at the Feb. 17 regular council meeting, the majority deeming Tuesday’s upcoming meeting as too quick a turnover for all the research and drafting required for responsible action. The intention would be to recommend to FMPA that they hire a management consultant to examine the FMPA’s internal operations and its investment policies.

Mayor Dick Winger said he will not be present at the Feb. 3 meeting. Key managers may also be away, attending the hearing of Vero’s petition to the PSC in Tallahassee regarding the city’s territorial rights to serve customers in the unincorporated county outside the city limits.

County officials are also heading up to Tallahassee for that hearing, and the County Commission has cancelled its Feb. 3 meeting due to the event.

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