The Florida Public Service Commission (PSC) will begin a hearing on Thursday, October 18, 2018 on Florida Power & Light Company’s (FPL) request to charge FPL rates to former City of Vero Beach customers and for approval of its proposed accounting treatment for the purchase of the Vero Beach electric utility. [Read more…] about PSC Hearing on FPL/Vero Beach Accounting Issues begins Thursday
Vero Beach
PSC Hearing on FPL/Vero Beach Accounting Issues begins Tuesday
The Florida Public Service Commission (PSC) will begin a hearing on Tuesday, October 9, 2018 on Florida Power & Light Company’s (FPL) request to charge FPL rates to former City of Vero Beach customers and for approval of FPL’s proposed accounting treatment for the purchase of the Vero Beach electric utility. [Read more…] about PSC Hearing on FPL/Vero Beach Accounting Issues begins Tuesday
PSC Transfers Vero Beach Electric Utility Customers, Rates Will Be Lower
Customers who currently are served by the City of Vero Beach’s municipal electric utility may see a 21 percent decrease in their bills after the Florida Public Service Commission (PSC) today decided Florida Power & Light Company (FPL) should serve them.
The Commission directed FPL to charge customers in the added territory the same rates it charges its existing customers, which would result in an approximately $27 decrease on a typical 1,000 kWh monthly residential bill.
The decisions would go into effect only if the utilities close on their Asset Purchase and Sale Agreement (PSA) in which FPL would acquire Vero Beach’s electric utility assets and operations.
“Vero Beach customers will see many benefits from this acquisition, including lower rates, access to energy efficiency programs, and increased service reliability,” said Commissioner Gary F. Clark, adding “This Commission has always used the public interest as the measuring stick for its decisions, and today’s decision will have no adverse impact to existing FPL customers.”
The Vero Beach utility has approximately 35,000 residential, commercial, and industrial customers in the City of Vero Beach, a portion of the Town of Indian River Shores, and part of unincorporated Indian River County. In today’s PSC meeting, several of those consumers and their elected officials asked the Commission to make them FPL customers.
The PSC does not have direct authority over changes in electric utility ownership, but changes in service territories and the rates that are charged require Commission approval.
FPL requested recognition for future ratemaking purposes of its investment of $116.2 million above the value of the assets it will acquire, and a majority of the Commission agreed.
Under the PSA terms, FPL will purchase the Vero Beach utility system for $185 million by December 31, 2018. FPL serves 4.9 million customer accounts across Florida.
For additional information, visit www.floridapsc.com.
FMPA Boards Give Final Approval to Transaction with Vero Beach
Final approvals enable Vero to exit FMPA projects and sell its electric utility
The governing boards of the Florida Municipal Power Agency (FMPA) gave final approval today to agreements enabling the city of Vero Beach to exit FMPA’s power projects and sell its electric utility. The unanimous approvals by FMPA’s Board of Directors and Executive Committee were the last step after the required 19 cities had agreed to Vero Beach’s buy out of its FMPA contracts.
“FMPA and its members have invested significant time and effort to help Vero Beach facilitate the sale of its electric utility,” said Jacob Williams, FMPA’s general manager and CEO. “All the cities worked well together to create a solution that meets the needs of everyone.”
The city of Vero Beach wants to sell its electric utility. Vero Beach participates in three FMPA power supply projects. For Vero Beach to sell its system, the city needed to find another municipal utility to assume its obligations in the FMPA projects.
In February 2017, FMPA presented an option for Vero Beach to transfer its FMPA power projects to other cities. The 13 cities in FMPA’s All-Requirements Project (ARP) said they would consider taking the additional power if compensated for the increased costs and risks.
FMPA proposed that Vero Beach should pay FMPA’s ARP $108 million, which was verified by two independent analyses. As part of the agreement, Vero Beach would transfer its shares in FMPA’s Stanton, Stanton II and St. Lucie projects to FMPA’s ARP.
Since the plan was announced last February, FMPA’s management visited all 19 member cities numerous times to meet with local elected officials and make presentations prior to city votes. FMPA also secured necessary approvals from its bond trustee, credit rating agencies, other financial stakeholders and the primary owner-operators of the generating units.
Now that FMPA has fulfilled its responsibilities and obtained all necessary approvals for Vero Beach’s exit, the Agency will continue to work with Vero Beach to finalize remaining details for closing of the utility sale.
