SETTING THE RECORD STRAIGHT
STATEMENT- FMPA Has Provided Contract Withdrawal Information to Its Members
Florida’s Auditor General said the estimates are reasonable, consistent with contracts
ORLANDO, Fla., Feb. 26, 2016 – Despite claims to the contrary, the Florida Municipal Power Agency (FMPA) has provided All-Requirements Project withdrawal information—also referred to as an exit cost calculation—to any member city that has requested it, including the city of Vero Beach.
Since 2010, FMPA has provided an exit cost calculation to the following member cities:
- Fort Meade in February 2010
- Fort Pierce in September 2010
- Green Cove Springs in October 2010
- Key West in April 2012
- Vero Beach in June 2014
Not only has FMPA provided the exit costs, but an independent, third party has reviewed the cost calculations provided for two cities, Vero Beach and Key West. A March 2015 report from the Florida Auditor General concluded:
- FMPA’s bond resolutions and power supply project contracts “are typical of other [Joint Action Agencies].”
- FMPA’s exit options are more lenient than most Joint Action Agencies.
- “The FMPA’s assumptions used in estimating the withdrawing member’s share of costs … appear to be reasonable.”
- “The FMPA’s calculations of the withdrawal payments in these instances followed the respective [All-Requirements Project] power supply power contracts’ withdrawal provisions.”
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Florida Municipal Power Agency (FMPA) is a wholesale power company owned by 31 municipal electric utilities. FMPA provides economies of scale in power generation and related services to support community-owned electric utilities. The members of FMPA serve approximately two million Floridians.