Selling Gainesville Regional Utilities to a corporation would cost our community
Edward B. Harmon’s short-sighted suggestion to sell Gainesville Regional Utilities would cost us dearly. Replacing a diversified, dividend-paying asset that we own and control with a one-time payment, and dependence on a distant corporation and its policies, makes no sense.
GRU provides reliable energy security, high-quality water and multiple community benefits, even at a time when the glaring issues of massive weather, supply chain and price events are stressing systems everywhere.
The City Commission is the board of directors, and does not run GRU — we have highly experienced utility professionals who do, who live here and work here, and whose salaries are part of our local economic fabric.
If we were Duke Energy customers, our money would be extracted from our town to support corporate shareholders and the CEO’s $16.5 million compensation package instead of recirculating as local good-paying jobs and city services. We wouldn’t be allowed to attend or speak at company board meetings or participate in developing policies like we can with our public utility.
The income the city would lose is not possible to replace with even the highest millage rates. Raising taxes that much would be terribly regressive, affecting both renters and owners, and likely drive low-income and elderly people to lose their homes.
We have much to be proud of in GRU and our community. GRU is the most fuel-diverse utility in Florida, plus has the highest amount of renewable energy generation at 30%, giving us the greatest energy security of any Florida utility. This mix is key to GRU’s high rankings in energy security, reliability and local resilience.
GRU was one of only a few public utilities nationwide to win the American Public Power Association President’s 2022 Reliable Public Power Provider (RP3) Diamond award, recognizing public utilities that demonstrate proficiency in four key areas: reliability, safety, workforce development and system improvement. “These utilities have gone above and beyond to provide reliable electric service to their customers,” said Joy Ditto, president and CEO of the public power association.
Harmon ignored the commission’s five-year plan, which is reducing the general fund transfer by $2 million per year, so the transfer as a percentage of GRU’s operating revenue is dropping. The commission also established savings funds to help cover debt obligations, and GRU refinanced older debt, reducing expense and risk.
GRU’s credit reports state that our liquidity and coverage metrics are extremely strong, offsetting high debt. Our ratings are higher than Duke’s. GRU’s lowest rating is A+. Duke's highest rating is Baa2.
In fact, the Public Service Commission recently granted both Florida Power & Light – Northwest and Duke large rate increases to help cover their exploding natural gas costs, which now make their average customer bills higher than GRU’s.
Our high percentage of reliable, locally sourced renewable electricity, diverse fuel mix and our commitment to conservation and energy efficiency means we rely less heavily on natural gas and coal than do other Florida utilities. That protects us from getting hit as hard with price and supply issues.
Biomass is by far our cheapest fuel. It’s local, renewable fuel that costs less than half the cost of gas, and is cheaper than coal.
The Deerhaven Renewable Generating Station has helped extend the life of our old fossil fuel plants, so we don’t have to build new ones while we plan toward replacing them with battery storage and solar. It also allows them to be run far more efficiently, meaning less pollution, less strain on old units, lower costs and local jobs for our rural neighbors. GRU’s carbon dioxide levels have dropped 45% since 2010.
During the 2020 Texas freeze, our fuel diversity paid dividends to us. Utilities across North Florida were unable to purchase natural gas for five days. Only GRU had the local fuel, expertise and diversity to cope. Not only did we keep our power on, but we were able to sell power to natural gas-dependent utilities, netting $600,000 in extra revenue.
GRU’s quality and fuel diversity provide a bridge to a thriving renewable future while other utilities' heavy dependence on fossil gas is a plank over the edge of a cliff. Dollars alone cannot begin to value the benefits GRU provides to our community.
Nancy Deren lives in Gainesville.
Join the conversation
Share your opinions by sending a letter to the editor (up to 200 words) to letters@gainesville.com. Letters must include the writer's full name and city of residence. Additional guidelines for submitting letters and longer guest columns can be found at bit.ly/sunopinionguidelines.
Journalism matters. Your support matters.
Get a digital subscription to the Gainesville Sun. Includes must-see content on Gainesville.com and Gatorsports.com, breaking news and updates on all your devices, and access to the eEdition. Visit www.gainesville.com/subscribenow to sign up.
This article originally appeared on The Gainesville Sun: Nancy Deren: Selling Gainesville Regional Utilities makes no sense
