JUNO BEACH, Fla., June 5, 2018 /PRNewswire/ -- The Florida
Public Service Commission today approved Florida Power & Light Company's proposed
purchase of the City of Vero
Beach's electric utility, marking the final step in a nearly
decade-long process. With today's approval, FPL is on track to
welcome the City's approximately 35,000 customers into its system
on Oct. 1, 2018.
Vero Beach electric system
customers should see immediate rate reductions as FPL customers
while the purchase is expected to produce long-term savings of more
than $100 million for FPL's existing
customers.
"Eight years ago, the City of Vero
Beach asked us to consider buying their system in the hopes
of reducing the cost of electricity for its residents. Since that
time, we have worked with the City, state and federal regulators,
the Orlando Utilities Commission, the Florida Municipal Power
Agency, 19 cities and many other stakeholders to make this a
reality," said Eric Silagy,
president and CEO of FPL. "We are thrilled to reach the final step
in a very long process, and we look forward to welcoming 35,000 new
customers into the FPL family this fall."
"Four years ago, I first ran on a platform promise to work hard
to help deliver the sale of Vero Electric to FPL. Thanks to the
diligence of so many and the patience of our great partner,
Florida Power & Light, I was
able to keep that promise," said Harry
Howle, mayor of the City of Vero
Beach.
In 2009, the City of Vero Beach
asked FPL to explore a potential purchase of its electric system
with the goal of lowering rates for its customers. FPL and the City
worked together over the years that followed to develop a solution
that would bring FPL's lower rates, high reliability and clean
energy to the City's electric system customers without negatively
impacting FPL's existing customers.
Last fall, the Vero Beach City Council approved a $185 million agreement that allows the City to
exit its contractual obligations, pay off its existing debt and
receive a cash payment, while ensuring that FPL's existing
customers also benefit.
"Today, a decade of hard work came to fruition, and we're lucky
to now have FPL as our power provider," said Bob Solari, vice chairman of the Indian River County Commission. "Private
sector ingenuity always trumps the public sector's best
solutions."
"This is a win-win for us. It's a win for the residents of
Vero Beach, and a win for the
Indian River County customers
living outside city limits," said Indian
River County Commissioner Tim
Zorc. "With this decade-long dispute behind us, our
community can now look forward to reaping the benefits of this
deal."
In addition to the state regulatory review, FPL and the City
overcame numerous hurdles and secured numerous other approvals and
agreements that were necessary to move forward. Key milestones
included:
- Two separate City-wide elections were held in which voters
overwhelmingly approved ballot questions related to the
transaction.
- The Orlando Utilities Commission, Florida Municipal Power
Agency (FMPA) and 19 of FMPA's member cities signed off on
agreements to resolve City's existing wholesale power
contracts
- The Federal Energy Regulatory Commission examined components of
the transaction and determined the proposal to be consistent with
the public interest.
"Today's PSC action brings to conclusion nearly a decade of work
by myself and countless other community leaders to lower electric
rates, improve reliability and restore equity for all customers
throughout Indian River County,"
said State Senator Debbie
Mayfield.
With today's approval, FPL will continue to work closely with
the City to integrate the two systems. Currently, the target
closing date for the purchase is Oct. 1,
2018, at which time the City's 35,000 customers, electric
system assets and employees will officially become part of FPL's
system.
"Local residents and business owners have been awaiting this
sale for years. It's nice to know that the FPL rates and service
we've been hoping for are finally coming our way," said
Jeff Thompson, Vero Beach resident and local business
owner.
While the prices of almost all products and services have risen
in recent years, FPL's typical 1,000-kWh residential customer bill
has remained very low. In fact, FPL's typical bill is lower today
than it was more than 10 years ago, about 20 percent lower than the
City of Vero Beach, and about 30
percent lower than the national average.
Also, FPL provides award-winning customer service and, in 2017,
reduced outage time for customers to its lowest level ever. In
addition, FPL's carbon emissions rate is about 30 percent cleaner
than the industry average.
Florida Power & Light
Company
Florida Power &
Light Company is the third-largest electric utility in the United States, serving nearly 5 million
customer accounts or an estimated 10 million+ people across nearly
half of the state of Florida. FPL's typical 1,000-kWh residential
customer bill is approximately 30 percent lower than the latest
national average and among the lowest in the U.S. FPL's service
reliability is better than 99.98 percent, and its highly
fuel-efficient power plant fleet is one of the cleanest among all
utilities nationwide. The company was recognized in 2017 as one of
the most trusted U.S. electric utilities by Market Strategies
International for the fourth consecutive year. A leading Florida
employer with approximately 8,700 employees, FPL is a subsidiary of
Juno Beach, Florida-based NextEra
Energy, Inc. (NYSE: NEE), a clean energy company widely recognized
for its efforts in sustainability, ethics and diversity, and has
been ranked No. 1 in the electric and gas utilities industry in
Fortune's 2018 list of "World's Most Admired Companies." NextEra
Energy is also the parent company of NextEra Energy Resources, LLC,
which, together with its affiliated entities, is the world's
largest generator of renewable energy from the wind and sun. For
more information about NextEra Energy companies, visit these
websites: www.NextEraEnergy.com, www.FPL.com,
www.NextEraEnergyResources.com.
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SOURCE Florida Power & Light
Company