Print

Email story

Comment

Email editor

Voters to decide utility issue

Belleair leaders agree to a referendum to consider whether the city should start its own electric utility or stay with Progress Energy.

By LORRI HELFAND
Published February 18, 2005

BELLEAIR - After six years of exploring the possibility of a town-owned electric company, Belleair leaders voted to put the decision in the hands of the people.

At Tuesday's meeting, the commission scheduled a referendum no later than the second Tuesday in October on whether Belleair should break from Progress Energy Florida to create a power company of its own.

The commission took the lead from the approximately 175 people who crammed into town hall, many waving signs saying, "We want our right to vote."

Town officials said the referendum may be up to eight months away because they have yet to create a business plan; review bids for wholesale power, system operation and maintenance; and present their findings to the residents.

If Belleair voters choose to oust Progress Energy, they'll follow in the footsteps of Winter Park, whose residents voted in 2003 to form the first Florida public power company since Key West did so in 1943.

About 25 residents spoke on the issue. A couple of them were critical of Progress Energy's tactics, which included wining and dining residents with fancy meals at the Belleview Biltmore Resort & Spa. Others said they felt more comfortable sticking with the energy company. Most asked the commission to keep the decision in the hands of the people.

"Were not saying we're pro or con. We're saying we want to be able to vote," said Steve Poirier, who handed out signs.

But more than 150 residents signed a petition asking the commission to vote on a new contract with Progress Energy and bring the issue to a close. At a January meeting, a few also urged commissioners to vote and put the issue to rest.

After Florida's recent brush with hurricanes, some said they're unsure a town-owned utility could handle damage from a major storm.

So town officials invited public power representatives to talk about mutual aid agreements, which require other publicly owned utilities to help other cities with systems damaged by storms.

Barry Moline, executive director of the Florida Municipal Electric Association, told residents that public power companies can handle system damage from major storms as well as investor-owned utilities because of those agreements. His organization represents 32 public power communities across the state. Moline, the association's hurricane manager, said he was also able to call on public utilities in and out of the state for assistance with storm damage.

Al Minner, city manager of Fort Meade, which owns its own electrical distribution system, described how his city handled last summer's bout with hurricanes.

Minner said crews from other publicly owned utilities in Fort Pierce, Leesberg, Alachua and Lakeland rushed to his city's aid after Hurricane Charley devastated its electrical distribution system. He said that winds above 100 mph knocked out power to all customers, but the system was 99 percent operational within a week.

Town leaders said they wanted more from a 30-year partnership than Progress Energy offered. They requested stronger protections against future litigation and $650,000 in revenues lost when Progress Energy stopped collecting fees after the original franchise agreement with the utility ended in December 2001.

Incentives for signing a 30-year franchise agreement

$250,000 contribution to the community

Up to $500,000 reimbursement of legal expenses

Provisions to prevent future litigation

Favored nation clause allowing similar provisions if other cities receive contracts with higher franchise fees or shorter terms

[Last modified February 18, 2005, 00:14:17]