Real Estate & Property Law

Electric Takeover

By Alan Ackerman

Naples News

MARCO ISLAND — A visit by Florida Municipal Electric Association’s executive director, Barry Moline, has some members of the city’s electric municipalization committee going back to asking why the city should buy the utility, Lee County Electric Cooperative.

Moline advised that Marco should probably not buy the city’s electric service provider, with the primary goal of reducing rates.

The idea led many members to ask why would the city purchase LCEC, or take it over by eminent domain, if rates would stay the same or increase.

“I say we need to go back to that initial point of do we have a reason to do this. I understand the reason is to gather facts, but without a purpose all we end up with are loose facts,” said Al Musico of the committee.

Committee member Steve Stefanides reminded the group that LCEC’s “outrageous” estimate for undergrounding was a driving force for city officials to begin looking at takeover of LCEC as early as spring 2008.

Some believed lower rates were the impetus.

Many communities seek the takeover of fairly managed private utilities. Hopefully, this is not an attempt to find a new system of patronage of a kind which use to exist at airports.

Full post as published by National Eminent Domain Blog on January 13, 2009 (boomark / email).