Reported By Saul Saenz
SOUTH DAYTONA – Local officials want Florida Power & Light to open its books or sell part of the power company to the city.
The situation began when the city asked FPL to justify a rate increase and officials got no answer. The power play came when FPL announced it was asking the Florida Public Service Commission permission to raise rates in cities, including South Daytona.
South Daytona leaders asked for justification of the increase, but claim they were stonewalled by the power company.
City manager Joe Yarborough says the franchise, or 60-year-old contract between South Daytona and FPL, has expired. The franchise granted by the city has a unique clause that gives the city the right to buy back the power system in South Daytona.
It's also a clause FPL wants out of a new contract.
"It's the only franchise left in the state of Florida with a favorable language for acquisition," Yarborough explained.
So city officials for the value of the electric grid in South Daytona and were stonewalled again.
The city hired its own consultants who looked at every power pole, the substation, as well as power lines and came up with a figure on its own.
"The system is worth $4 million," Yarborough said. "That's not a whole lot of money? No sir, it's probably the most equitable acquisition that the public could ask for."
FPL continues its quest to raise rates and even claims the rate increase would still keep rates low, .even lower, they say, than some cities who bought their own power grid, like Winter Park in Orange County.
FPL spokesman Myko Villafana says customers in South Daytona can decide if they want the city to run the power company, but they claim, Winter Park homeowners are now paying 26 percent more for electricity than FPL customers.
South Daytona runs other utilities in the city.
Asked if they believe $4 million is a fair price for the FPL system in that city, Villafana said he cannot answer that because of ongoing negotiations.
Yarborough says taking over the power distribution system will mean customers reaping the profits, not FPL stockholders.
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