The Florida Public Service Commission (PSC) today terminated the territorial agreement between Florida Power & Light Company (FPL) and the City of Vero Beach (COVB), effective on the closing date of COVB’s electric utility sale to FPL. This means all current COVB electric customers will become FPL customers.
Through an Asset Purchase and Sale Agreement, FPL will acquire COVB’s electric utility assets and operations for $185 million by December 31, 2018. The Commission also approved FPL’s request to recognize its $114 million investment above the value of the assets it will acquire.
“Today’s decision resolves years of litigation, and I am confident it is in the public interest,” said Commissioner Gary F. Clark.
In July 2018, the PSC approved FPL’s petitions to charge FPL rates to COVB electric customers and to approve its requested accounting treatment. The PSC does not have direct authority over changes in electric utility ownership, but changes in service territories and rates require Commission approval. After the PSC’s decision, the Civic Association of Indian River County, and other parties, filed protests, and a subsequent PSC hearing was held on October 18. Parties to the case and the public testified as part of the proceeding.
The Commission has directed FPL to charge customers in the added territory the same rates it charges its existing customers. COVB residential customers who use 1,000 kWh will see a 21.2 percent drop in their bills, with their monthly bill lowered from $126.10 to $99.37, a reduction of $26.73, based on rates effective March 2018.
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 portions of Indian River County.
FPL serves 4.9 million customer accounts across Florida.
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