FPUA September 20, 2011 Meeting

The Fort Pierce Utilities Authority discussed the City of Fort Pierce's move to increase the transfer and agreed to meet September 27, at 2 PM for a workshop on how to respond. Board member, Mike Perri, expressed serious concerns about how the increased transfer would impact the utility's ratepayers, as did Board Chairman, Darrell Drummond. FPUA Attorney Koblegard warned the FPUA Board of the possibility of a ratepayer class-action lawsuit, if the City of Fort Pierce tried to increase the transfer with a change in the charter without a referendum. The utility also agreed to increase the power cost adjustment by $1 because of the projection of increases from its power supplier,FMPA. The staff requested a $2 increase. FPUA is one of 15 companies in the FMPA All-requirements consortium.

See TC Palm for coverage of this meeting.

http://www.tcpalm.com/news/2011/sep/20/fort-pierce-residents-will-see-power-cost-in/

Fort Pierce residents will see power cost increase in October

By Laurie K. Blandford

Tuesday, September 20, 2011

FORT PIERCE — Residents will see a $1 power cost adjustment on their Fort Pierce Utilities Authority bills next month.

The authority's board voted 3-2 at its Tuesday meeting to increase the adjustment from $34 to $35 per 1,000 kilowatt-hours for October. The board plans to decide at its Oct. 18 meeting whether to change the adjustment again for November.

Board members Bob Summerhayes, Michael Perri and Pamela Cully voted for the $1 increase while Mayor Bob Benton and Chairman Darrell Drummond voted against it.

"I don't feel that we should wait (to increase the rate)," Cully said.

The authority's finance director, Nina Hurtubise, said staff recommended a small increase to the adjustment because of increased power cost projections for the next year from the authority's power provider, Florida Municipal Power Agency. The adjustment covers the fluctuating price of power.

Hurtubise said staff had recommended a $2 increase beginning next month. The board voted 3-2 against that amount. Perri suggested the compromise of a $1 increase.

The authority has about $2 million saved for projected power cost increases, Hurtubise said. The projected cost of power by the agency is $48.65 per 1,000 kilowatt-hours in 2012 and $43.98 per 1,000 kilowatt-hours in 2013.

The authority's director, Bill Thiess, said the agency originally needed more power when it planned to build a new unit in Kissimmee.

When the economy took a turn for the worse, the agency had less need for the extra power. However, Thiess said, the agency's cost to the contractor to get out of building the new unit would have been "enormous." So the unit was built and is now online, but has yet to meet its anticipated returns.

Therefore, the 15 entities across the state to which the agency sells power are covering the increased power costs.

Benton said the agency's investment shouldn't keep costing the authority money, which is covered by authority customers. "I don't feel like we should be bearing the brunt."