MEETINGDATE:
| April 11, 2019
| MEETING TYPE:
|
| AGENDA ITEM TITLE:
| RESOLUTION No. 013-2019 - A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF INDIANTOWN, FLORIDA, AUTHORIZING THE VILLAGE ATTORNEY TO TAKE ANY AND ALL STEPS NECESSARY TO JOIN IN THE FILING OF AN AMICUS BRIEF IN OPPOSITION TO THE PROPOSED CONSTITUTIONAL AMENDMENT ENTITLED “RIGHT TO COMPETITIVE ENERGY MARKET FOR CUSTOMERS OF INVESTOR-OWNED UTILITIES; ALLOWING ENERGY CHOICE”; PROVIDING FOR INSTRUCTIONS TO THE CLERK; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING FOR AN EFFECTIVE DATE.
| SUMMARY OF ITEM:
| Florida Power & Light has brought to staff's attention by a political committee to advance a Florida constitutional amendment entitled “Right to Competitive Energy Market for Customers of Investor-Owned Utilities (“IOUs”); Allowing Energy Choice”. The proposed constitutional amendment is currently under review by the Florida Supreme Court.
This resolution authorizes the Village Attorney to join in an amicus brief, along with one or more other smaller or rural municipalities, in opposition to the proposed constitutional amendment currently under review before the Florida Supreme Court. The Florida League of Cities has already expressed its opposition to the amendment, as noted in the attached statement.
If passed, the proposed constitutional amendment will restructure the electric wholesale and retail markets in the state of Florida to the detriment of small and rural communities. Further, it would forbid the existing investor-owned utilities, that currently serve more than 75% of the state, from providing retail electric service to customers.
In a restructured competitive market, it is unlikely that our community will be offered the same competitive rates and reliable service as more densely populated areas with larger residential and business customers.
The Florida Public Service Commission (“PSC”) currently require IOUs to set fair and reasonable rates for all customers regardless of demographics. If the energy market is restructured, the PSC will no longer have the ability to mandate reasonable rates, and profit driven electricity providers will have the ability to charge exorbitant rates for service.
Further, IOUs are currently required to provide electrical service to customers within their geographical territory. However, the proposed amendment does not require the implementation of nondiscriminatory regulations to ensure that rural areas receive the same reliable service as more urban communities. In addition, the proposed amendment has no provision for an electricity provider of last resort for rural or hard to reach areas where competitive providers may not want to serve.
Currently at least 82% of the Village's annual budget is derived from the payment of franchise fees and property taxes by Florida Power & Light.
If passed, the proposed constitutional amendment will cause franchise agreements to be voided, and property and municipal utility taxes will decrease, as IOUs such as FPL will be required to divest assets under restructuring.
| RECOMMENDATION:
| Approve Resolution No. 013-2019 – Authorizing Joining in Amicus Brief in Opposition to Proposed Constitutional Amendment Restructuring Florida Electricity Markets
| PREPARED BY:
| Wade Vose, Village Attorney
| DATE: 4/4/2019
| REVIEWED BY:
|
| DATE:
| | APPROVED BY: | Howard W. Brown, Jr., Village Manager | DATE: 4/5/2019 |
|