Vero electric customers using 1,000 kilowatts of power per month should see their bills decline by $1.50 this month, but rates will still be roughly 30 percent higher than in Orchid, Sebastian and Fellsmere, areas served by Florida Power & Light.
The slight easing of rates comes on the heels of a quarterly analysis by city staff that looks at power consumption as it translates to revenues and recommends short-term adjustments. This adjustment, unanimously approved by the Vero Utilities Commission in September, is set to appear on bills generated on or after the Oct. 15 billing cycle.
City Manager Jim O’Connor presented the analysis of the $89 million electric utility budget to council members via a memo, noting that the utility, which transfers nearly $6 million per year to pad the general fund and keep city property taxes artificially low, is expected to stay in the black. “This summary shows a year-end surplus currently estimated at $2.014 million,” O’Connor said.
The projected surplus was arrived at before factoring in unplanned costs associated with last week’s hurricane.
The analysis shows usage higher than projected and residential billing of about $4 million more than managers projected. Due to low natural gas prices and a renegotiation of Vero’s bulk power purchase deal with Orlando Utilities Commission, the city paid several million less than expected for electricity.
Once Vero’s bulk power contract with OUC expires, the city plans to go out to the open market to negotiate short-term power purchase agreements, which consultants predict will result in a further reduction in power costs.
