The Florida Municipal Power Agency Opposes the “Energy Choice” Amendment

Florida Municipal Power Agency (“FMPA”) is a separate legal entity created pursuant to article VII, section 10 of the Florida Constitution, and the provisions of section 163.01, Florida Statutes, and part II, chapter 361, Florida Statutes, and exercising the powers provided by both provisions, or either, pursuant to the interlocal agreement among its 31 member utilities.

Particularly misleading is the enticement of voters who rely on public power utilities for their electric power, as it states that “municipally-owned electric utilities may freely participate in the competitive wholesale electricity market and may choose, at their discretion, to participate in the competitive retail electricity market.” Initiative § (d).

Considering the reality of Florida’s highly integrated electric grid, and the pre-existing, long-term contractual commitments among IOUs and public power utilities, even if Florida’s public power utilities are excluded from an aspect of the Initiative, there is no practical way public power utilities can avoid its overall negative impact. Contra Initiative § (d) (“Nothing in this section shall be construed to affect the existing rights or duties of . . . municipally-owned electric utilities, or their customers and owners in any way . . . .”) (hereinafter, the “Opt-In Clause”). Regardless of whether a public power utility elects to opt into competitive markets, the Initiative prohibits IOUs from owning electric generation and transmission facilities and outright prohibits the “granting of either monopolies or exclusive franchises for the generation and sale of electricity.” Initiative § (c)(1)(iv). These two provisions alone would substantially impair the existing contractual relationships for power supply, transmission service, and generating plant joint ownership for Florida’s public power utilities, as well as invalidate every existing power supply agreement, interconnection agreement, territorial agreement and franchise agreement between the public power utilities and the IOUs, all to the misunderstanding of the voter.

Read their full legal brief filed with the Florida Supreme Court here.