Vero Beach electric sale to Florida Power & Light clears major hurdle

VERO BEACH — Sale of the city electric utility to Florida Power & Light Co. moved even closer Monday night, when the Fort Meade City Council agreed to let Vero Beach out of its contractual obligations to a statewide electric co-op.

All municipal members of the Florida Municipal Power Agency must approve letting Vero Beach leave the co-op before the sale can go forward. FPL's $185 million purchase of the city's municipal electric system is contingent on all 20 FMPA member cities, including Vero Beach, approving resolutions letting Vero Beach out of the co-op.

Fort Meade became the final city to agree. The full FMPA board now is to vote on the issue March 15.

"Just one city saying, 'We don't want to do this,' that would have put a stop to the whole process," said Mayor Harry Howle, who attended the council meeting with County Commissioner Tim Zorc.

Howle said he plans to attend the FMPA board meeting next month.

"It's really not over yet," he said, referring to the full board's upcoming vote. Additional state and federal approvals, including the OK from the Public Service Commission, still are needed before the sale is finalized, he said.

Vero Beach and FPL officials want to close the deal by October.

Howle hopes the biggest hurdles — getting the votes of all 19 cities — now is behind the city.

More: FMPA willing to help Vero Beach leave co-op, but not if it costs members

Vero Beach's obligation to the FMPA, a statewide electric co-op, for years has been a stumbling block to the city getting out of the electric business.

Last year, after the city's repeated requests, FMPA finally gave the city a $108 million price to leave the co-op. The estimated amount is what would keep the remaining member cities from being adversely affected by Vero Beach's departure.

That money would be paid from FPL's $185 million.

The co-op cities began approving Vero's exit in November, starting with Ocala. FMPA CEO Jacob Williams was a driving force in the approval process, meeting in conference calls with all city attorneys and crossing the state to talk with council members and answer questions.

Fort Meade council members had some discussion about Vero Beach's exit, directed toward their legal counsel and city manager, Howle said. But the item took little time to complete, he said.

Analysis: FMPA gives Vero way out, opens door for city to sell system to FPL