[bouldercouncilhotline] Hotline: Municipilization struggle in South Daytona FL

[kohls at bouldercolorado.gov]

Sender: Wilson, Ken

It seems there is a struggle going on in South Daytona Florida to leave Florida Power and Light and municipalize.  There was a recent ruling by a judge there that awarded FPL $15,647,022 for assets that would need to be acquired.  FPL had asked for $17.3 million and the city's expert argued for $4.6 million.  This does not include stranded costs, separation costs or costs related to "going concern".  It is expected that the total bill for South Daytona could be in the neighborhood of $40 - $50 million for a customer base of 7,800 customers.

The news article and the judge's decision make interesting reading.  I thought our consultants might want to consider this case, if they have not already done so.  The interesting part of this for us to consider is the wide discrepancy between what the City thought it should pay, what the Utility thought it should get, and what the judge ruled.  Of course, the actual decision has no direct application to what Boulder might be faced with as the circumstances are very different.

Ken Wilson

Newspaper article: (You may need to cut and paste this URL into your browser to get the direct link, using the complete URL)

http://www.news-journalonline.com/news/local/east-volusia/2011/05/21/judge
-puts-fpl-system-at-156-million-for-possible-south-daytona-buy.html





Here is the Judge's ruling:



http://www.news-journalonline.com/breakingnews/images/2011/05/20/WAP-CityofSouthDaytonavFPL5-11.pdf