Bruce Ritchie
State senators and representatives on a panel that oversees state audits responded angrily on Monday when they were told top officials at the Florida Municipal Power Agency were too busy to discuss audit findings that describe lavish spending and risky fuel-trading schemes.
Sen. Joe Abruzzo, a Democrat from Wellington who chairs the Joint Legislative Audit Committee, vowed that FMPA officials will be subpoenaed when they are requested again to attend a committee meeting.
The Florida Municipal Power Agency was created in 1978 by state law to provide power to 31 cities and 2 million residents. The Legislature agreed last year to put money in the budget for the state audit because of a dispute between Vero Beach, an FMPA member, and Indian River Shores over electricity charges.
The Auditor General issued a report this month finding that the FMPA participated in fuel-hedging practices that cost municipal customers $247 million between 2003 and 2014. The Auditor General also cited spending including more than $12,000 on holiday parties, nearly $600,000 in travel costs during a 20-month period and health care benefits for life for CEO and General Manager Nick Guarriello.
Newberry Mayor Bill Conrad, the board chairman, told the Joint Legislative Auditing Committee that Guarriello didn’t show because the agency had not received the request until Friday and he had scheduling conflicts. The committee consists of five senators and five representatives.
Deputy General Counsel Jody Lamar Finklea told the committee that the FMPA received the request Tuesday but the general counsel Frederick M. Bryant could not attend because he was ill.
Sen. Lizbeth Benacquisto, a Republican from Fort Myers, said she also was sick but still was there. Asked whether Bryant had been prepared to attend, Finklea said, “The general counsel and general manager are very busy folks.”
“We thought it would be best for the committee to send those who could answer your questions,” Finklea said. “That is what we have done today. Mr. Bryant is unavailable and Mr.Guarriello also is unavailable.”
That prompted reactions from several senators and representatives.
“Saying they are really busy, and, I mean, your answers to Senator Benacquisto’s questions, quite frankly, I found very, very concerning,” said Sen. Rob Bradley, a Republican from Fleming Island. “I can’t emphasize enough how concerning I find your answers to these questions we’re asking you right now.”
“Members,” Abruzzo interjected, “rest assured if I’m still committee chair at any subsequent meeting with FMPA, they will receive subpoenas so it’s clear that they be here. Senator Bradley I echo your sentiment about his responses.”
Benacquisto said she questioned the “moral leadership” of Finklea’s bosses sending him to field the tough questions rather than attend themselves. The committee agreed to ask FMPA officials to describe the actions they are taking in response to the audit.
The FMPA finds itself at the center of an ongoing issue across the state involving utility customers who live outside of cities and who have no say over the city officials who run municipal utilities.
Vero Beach has been unsuccessful in trying to break its contract with the FMPA. Vero Beach is being sued by town of Indian River Shores alleging residents are paying $2 million more for utilities per year than they should.
In addition to spending on items including $12,030 for flowers and $82,354 for “employee activities” and “employee awards,” the auditors said the practice of natural gas price “hedging” subjected FMPA members to more risk and led to increased costs.
VeroNews reported that in February the FMPA board of directors agreed to spend $100,000 on Tallahassee lobbyists and consulting agencies to thwart potential backlash stemming from the Auditor General’s findings.
Rep. Debbie Mayfield, a Republican from Vero Beach who has criticized lack of state oversight of municipal utilities, said after the meeting she didn’t think FMPA was taking the audit as seriously as it should have.
She filed House Bill 773 to require the FMPA to be subject to Public Service Commission as a public utility like other investor-owned utilities. The bill has not been heard in a committee, but Mayfield said she would file her legislation again for the 2016 Legislative Session.
“I think people are open to it (legislation) now,” she said. “They see there is no oversight with FMPA except for the people who financially benefit from it.”
Also Monday, Florida TaxWatch issued a report saying that the FMPA lacked oversight and offered recommendations. The FMPA posted information on its website in response to the audit findings.
Bruce Ritchie (@bruceritchie) covers environment, energy and growth management in Tallahassee.
