PSC terminates territorial agreement between Florida Power and Light, Vero Beach

The Florida Public Service Commission (PSC) terminated Tuesday the territorial agreement between Florida Power & Light Company (FPL) and the City of Vero Beach (COVB), effective on the closing date of the sale of COVB’s electric utility to FPL.

On the closing date, all current COVB electric customers will become 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 portions of Indian River County.

FPL will acquire COVB’s electric utility assets and operations for $185 million by December 31 through an Asset Purchase and Sale Agreement. The PSC also approved a request by FPL 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,” Commissioner Gary F. Clark said.

In July 2018, the PSC approved petitions by FPL to charge FPL rates to COVB electric customers and to approve its requested accounting treatment. Following the PSC’s decision, the Civic Association of Indian River County and other parties filed protests, and the PSC held a subsequent on October 18.

The PSC directed FPL to charge customers in the added territory the same rates it charges its existing customers. COVB residential customers using 1,000 kWh will see a 21.2 percent drop in their bills, based on rates effective March 2018.