The Town of Indian River Shores, which I serve as mayor, now finds itself in litigation with the City of Vero Beach over our longstanding electric rate crisis, but I’m hopeful that a solution may be on the horizon.
The City has agreed to meet with Florida Power & Light to discuss the potential for a partial sale of the City’s electric system, which would give all Town residents and businesses access to FPL rates and service. We welcome FPL’s involvement and appreciate the City’s willingness to meet.
I also welcome recent comments from the Florida Municipal Power Agency (FMPA), confirming that FMPA would not interfere with a partial sale of the utility system in our Town.
There is a lot of work ahead. City leaders have already said they see a number of hurdles that could interfere with a sale. However, the issues that have been raised – from so-called “stranded costs” to the physical separation of the utility system – are standard components of any utility sale discussion, and FPL officials have said publicly these hurdles can be overcome.
What is not in question is the risk involved if we fail to work in good faith toward a possible sale: costly litigation, and the very real potential for the City to “lose” Town residents and businesses as customers with no compensation.
City Mayor Dick Winger rightfully stated that he will not vote for any sale that results in increased costs for remaining utility customers. I agree, and our consultants believe that with a willing buyer and seller working in good faith, a sale could be structured in a way that would not result in any increased costs. In fact, after studying the issue, our consultants believe the City could use sale proceeds to actually lower costs for remaining customers.
We have a responsibility to our residents, and to the community, to find solutions if possible, and a partial sale is a viable option that, if managed correctly, could end the rate crisis and eliminate the risk of further litigation.
I sincerely believe that a partial sale could serve as a cornerstone for a settlement of our lawsuit with the City, and would be mutually beneficial to all parties as well as the communities in which we live. I strongly encourage the City Council to seriously review the sale offer FPL intends to provide.
Brian M. Barefoot
Mayor
Indian River Shores
