45 Comments

GRU has been mismanaged for over twenty years. They never missed a month sending me a bill, now it's hit and miss. I haven't received a bill for April yet. You call that properly managed? GRU is a piggy bank to keep the city of Gainesville taxes low,I live in the county and they're using my money to keep the taxes low. That's not right, I don't care who you talk to.

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I wonder how anyone can reasonably believe that a PRIVATELY OWNED utility, who takes profit OUT OF THE COMMUNITY, and whose sole purpose is to MAKE MONEY FOR INVESTORS, is going to do a better job for the working people of Gainesville than a utility that is accountable to the community via electable positions and community ownership and that returns a 10% of profits back into the community? Some of y’all are eager to give away the farm. To who? For what? You will regret it when it’s done… it makes no sense.

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I want to applaud Bryan Eastman for making himself available for dialogue with the common citizen. This is what a public servant looks like, regardless of their political affiliation!

This is more than I can say for any of the prior commissioners. Former Mayor Lauren Poe was particularly inaccessible. I once approached him after a public meeting (not a commission meeting) to speak with him, and he told me that it was inappropriate to voice any concerns I had outside of official channels. I will never forget his attitude and response.

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GRU has been mismanaged at the Commission level for decades. It started with Pegeen Hanrahan, former mayor Poe, and many others with the bio-mass debacle. Until those who caused these problems come forward, accept responsibility, and publicly denounce the practices that lead to this, I won't rest until GRU is out of CoG's control. You have GRU payers who are not eligible to vote on city elections, being held hostage by the city commission's poor decisions and greediness.

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As I outlined above, none of those people who voted for the biomass plant are on the commission now. The only person involved in this that did vote for the biomass plant is Nathan Skop, and he’s helping Clemons pass this bill.

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Nathan Skop voted for the biomass plant? He was a city commissioner?

I appreciate the fact that current commissioners were not directly involved in the biomass ordeal. But I can't help but wonder if the same people who voted in those prior problematic commissions also voted in the current one, which would reason that I should expect similar results.

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Joseph what Bryan is referring to, is that Skop was a Florida Public service commissioner (in Tallahassee ), the other part that he obviously either hasn't done his due diligence to research is that there were warnings of what would happen, and that the FPSC can not say a straight no to a municipally owned utility, the utility brought the issue to the FPSC and Like with Crystal River they were given what could happen and warned. So being municipal they see that and say we have to say okay but in writing you know what may happen. This then becomes the City that must them make the ultimate decision. Where Crystal River considered their warnings and decided against their project, Gainesville ultimately screwed its people into 1.7 billion dollars of debt.

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The FPSC absolutely could have said no to Gainesville. 2 of the 5 did. Skop was the swing vote and the deciding vote. The FPSC had a responsibility to protect rate payers in Gainesville by verifying the assumptions of the biomass plant and ensuring that energy would be made cheaply by it. By voting yes that is what Skop did, whether he wants to place blame on other people of not, that is what a "determination of need" is and that is what he voted for.

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Wish I could post a photo here for you! Cause there is so much more you obviously haven’t read

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You might want to go check your facts, as well as go back to the subcommittee meetings from February with house energy and cybersecurity… you might learn a bit. I know I did. If you would like I can send you those links. Also you might want to go to their site.

Have you even read the full document? I’m assuming not… or you have just chosen to Look at only what you want.

Where it says conclusion there is CONSIDERABLE uncertainty about the economics of this project because ….. and it continues… that right there was something the city should have looked at ver hard but no they had their greed in mind.

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can you post the links you are talking about here please?

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It’s too bad that some GRU payers aren’t able to vote on city elections. Representation matters! But by giving all authority to an out of town board, is that increasing representation? No! It’s a bad idea…

I think out-of-state private investors would be much more greedy about dividends than GRU…

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That was one of the amendments suggested to Clemons - If the issue is that there are GRU customers who are not getting a voice in GRU decision making - then we can have a special district that includes them so that they can vote on GRU. But this was not even considered by Clemons. After all, FPL and Duke custormers dont' have any voice in their decision making do they? That core idea that anyone other than the owners of a business should have a voice in the bussiness's decisions would be laughed at by FPL and Duke wouldn't it?

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Funny this has been brought up many times and now they want to do that. Nah that is pure crap to say oh well we had nearly 20 years to get it right and now hey since we can’t get the financials right let’s do this they have asked us to do. Wrong. There is a point that it becomes abusive to the constituents and that was taken care of!

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Sadly, part of the reason that the efforts involved in this "take over" of GRU are now primed for success is in large part due to the arrogance and actions of past city commission members who refused to LISTEN to their constituents and to experts.

I'm not in favor of the take over, but I do feel that prior commissions have demonstrated, and led many to believe, that the "the public", e.g. our elected officials, have proven themselves incapable and unworthy of managing this issue. The actions that are now being taken to address some of the long-standing issues with GRU are possibly "too little, too late". So, the vultures waiting in the wings now have an opportunity to do something that they have wanted to do for a long time.

Another reminder of the importance of electing local representatives who are capable and willing to do the hard work necessary for managing and preserving our community while actually representing the perspectives and desires of the people who elect them.

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Can’t disagree that mistakes were made, but is it that much worse than Jacksonville Electric Authority? Or another municipal utility? The main difference I’d say is that there aren’t as many investor owned utilities eyeing those because of GRUs location between large electric centers. I don’t know if there’s a single local elected official in recent history that tried to take money from GRU more than Chuck Clemons when he was on the county commission, and the man who helped draft parts of the bill voted for the biomass plant, so I’m skeptical that this is a deeply felt worry about the future of GRU from these people.

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Thanks to Bryan for doing the research and taking the time to cover the issues of the State's take over of our local rule. My instincts are-- DeSantis and the Florida legislation have been gunning to take over our utilities... and it isn't for our good but rather for their gain (privatizing our utilities), as retaliation, to undermine a town that is "blue"- a town too "progressive" to their liking. To me this hijacking of our local rule is repugnant. Is there any legal stand that can be taken to prevent it?

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Well Bryan I guess this looks really well of what fitch said that you linked... has me really thinking how smart you really are.. just saying...Very Strong Revenue Defensibility

GRU's revenue defensibility assessment reflects the very strong revenue framework through the provision of monopolistic services to a growing service area, a strong local economy and independent ability to adjust rates (city commission approval). Customer growth trends have been solid and the city's unemployment rate remains below the national average. The service territory extends into the county with roughly 40% of the customer base residing outside the city of Gainesville's limits.

Residential electric rates remain slightly above the state average (EIA data not available yet for 2021) but are affordable especially when compared to the broader service territory's somewhat higher median household income (MHI). Rates will rise with approved increases over the next several years, which could pressure affordability over time. Retail rates for the other utilities are competitive.

(it looks like this is looking at data for 2021 while this was written in June of 2022) but please Bryan READ the two paragraphs... so looking at 2021 the rates were nowhere near what they were in 2022. Even though they were higher than many utilities at that time the residents were not struggling near as much, and when the Fuel adjustment flipped its lid where many did not raise the adjustments near as much GRU did crippling many residents and causing homelessness. smh... in stead of voting down the raising of the rates themselves the prior commission chose to still raise them. Despite knowing that many non-profits were out of funds regularly.

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What Bryan doesn't mention is that we are paying the HIGHEST electric rates in the State.

Also why did the City approve a Solar contract when we have unused capacity. This will cost us money and I will bet money on that.

The Commission voted to reduce what they take from GRU but only AFTER Clemons and the JLAC started monitoring the City. Now watch Bryan raise our taxes to offset this rather than cut expenses.

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GRU does not have the highest electric rates—GRU is lower than both Duke and FPL. GRU has a real-time fuel adjustment factor that raises and lowers rates depending on the fluctuating cost of natural gas, etc. Duke and FPL raise rates once a year—and keep them raised. Currently GRU has lower rates.

Also many people don’t realize that as a city owned utility, GRU bundles all of our bills for us—electric, water, and trash. So comparing all three bills on the “amount due” line is not just the electric! Make sure to separate out the electric portion when comparing, and imagine how inconvenient it would be to have to pay all three bills separately!

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That my dear is a blatant lie! Might want to check your facts with the FMEA Afro March Gainesville was the highest municipal utility and was 45% higher than FPL…

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Not FPLNW which was almost 15% higher, and GRU rate was about the same as Duke. Like I said, GRU raises and lowers the fuel adjustment in real time, which is more fair for the customer than annual flat rate raises. The base rate for GRU is not the highest municipal utility in FL, based of the FMEA report. GRU is not the bad guy. And if it is—you can vote on how it’s run. Why give over that power to the state? If GRU is privatized, citizens will lose ability to hold officials accountable for pollution, response times, and prices, because locals will no longer have any input or way to hold them accountable. And of course, there is then the matter of profit leaving the community and going to investors instead of back to us. So expect less service and higher property taxes or a combination of both— because you’re giving it away. Sounds like a losing deal—

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Hunny the utility having a board will not make it privatized, it actually will make it more public. As well as it is still an asset to general government.

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How on earth does removing the citizens right to elect members to the board make it “more public?” It makes it less public, by definition! A state board appointed by the governor removes MY right to vote on the board and board members positions, and it removes YOURS too. The idea that this isn’t about taking steps to privatize is crazy—of course it is, the writing is on the wall. JLAC already exists to deal with Clemons’ concerns, and the JLAC process is already underway. The state appointed board is completely unnecessary. It’s a power grab and a privatization takeover— anyone can see. Or else what purpose does it serve that the existing process of JLAC doesn’t serve? None! There is no point in it other than to take power away from Gainesville and to subvert a democratic ownership of a utility. The other utilities will fall next. And Florida will be poorer for it—but private investors will be much richer.

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And my right to have a say of who decides what my rates are was done in the same manner… but this is not about that it’s is about the malfeasance of the city, the inability to stop the over spending and making decisions that harm the people. Being able to speak at a public meeting is just fine right? I mean that is what the mayors thought was… hmm you mean what is good for the goose isn’t good for the gander? What makes it more public is that the public will be able to speak at the meetings and be listened to… I find it hilarious that you all want to bow at the feet of those who continue to harm… I’m not saying desantis is great lord knows there are some things I disagree with but taking the utility out of the hands of the city so they can not continue to cripple the utility is absolutely what needs to happen.

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Funny that you should say they raise and lower the fuel adjustment in real time, must be so do FPL and Duke and clay.., why do I say this? Because per 1000 kWh one has lowered theirs by $16, another by $20, and the other if I’m not mistaken (I could be wrong ) by $18 but all by more than the $15 of GRU.

Why give over the power Hmmmmmm maybe read through my other comments… the utility has been mismanaged for nearly 20 years and the city wants to siphon the money GRU makes that makes it unsustainable…

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Wow, I just have to say , you have out done yourslef there Eastman! These politicians are indeed experts! Also I have to ask how does it feel yet again to be the highest municipal utility? Must feel great when considering you knowingly, manipulatively lie to your constituents. And those poor elite groups that bow at you all’s feet… smh

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It feels bad, especially considering GRU rates are going to go up after this new Authority Board comes in, hurts our bond ratings, and causes even more pain to working families in our community.

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Are you kidding me, you all were going to raise the damn rates! Need I remind you that information IS IN THE MUNICIPAL CODE APENDIX A!

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You conveniently forget the fact that your fellow democrat predecessors got us into this situation. I am not and republican or democrat. I think both sides are destroying this nation. I hate that either party has any power over the reasonable citizens. If you have a D or an R next to your name as a politician, I don't trust you.

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I would say Chuck Clemons, Keith Perry, Jennifer Bradley, and Chuck Brannon got us into this situation, and I think I made a pretty water tight argument above that the criticisms they’re leveling are baseless.

But even if they aren’t, my position is non-partisan: there isn’t a D or an R next to my name. I would for the people of Gainesville regardless of party. That’s my job.

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I appreciate the sentiment to remain neutral, truly I do. I can see your point that the state takeover is a result of Chuck Clemons and Keith Perry's legislative actions.

That being said, those politicians were spurred on by extremely frustrated GRU customers from within the city and in the county. We have all observed the prior commissions' (not your fault) inability to manage the utility in a responsible manner. This has been years in the making and certainly do not blame new members of the city commission for any of this blunder. Mayor Ward, on the other hand, has contributed to this emerging threat of a state take over by voting on fiscally irresponsible GFTs in years past as well as new expenditures when we had massive outstanding debts.

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I am skeptical that GRU customers provided much if any incentive for Clemons', et al's, actions. Instead I am inclined to favor the time honored and proven axiom, "Follow the money!" Clemons, et al are just shills for those who will profit from this scam and it will be the taxpayers of Gainesville and the customers of GRU who will pick up the tab.

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The "money" is what got us in this mess to begin with. The government of Gainesville took on a massive debt to buy out a failed project.

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And furthermore, whose fault is it that there needs to be a governing board anyway so if the bondratings go down because of the up in the air decision well that’s on y’all. The prior commission, and now I have proven to be fiscally irresponsible.

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Do you have any evidence of that? I think I made a pretty persuasive argument above that all of those accusations are baseless and false, still no one has shown me any information to counter any of it.

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Evidence based on the GRU financial audited information , and I will Wuote Ed Bielarski “ I developed a chart entitled “Excess transfers from GRU to the city” in response to discussions with nFront, a consultant GRU had engaged with, to develop a formulaic approach to the General Fund Transfer (GFT). The amounts in the schedule were taken directly off of Gainesville Regional Utilities’ Audited Financial Statements.

I have since updated the chart to include fiscal year 2021. The chart shows that from fiscal year 2018 through 2021, GRU has accumulated net earnings before the GFT of approximately $83 million. The chart also shows that during that time frame, GRU was required by the city to transfer just over $151 million to the general fund.

Bottom line: GRU has paid the City of Gainesville $68 million more than what it has earned from fiscal year 2018 through 2021. ”

There are graphs and all the numbers did come from GRU audited financial information…

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Well I’m fairly positive the JLAC report, Audit has spoken loud and clear! As well as even your city financial reports for GRU shows 2022 revenue of 21.4 million and the GFT 34 million that is of 12 million of what GRU brought in… hmmm damn why don’t you look at your financial reports… or is that baseless evidence too? If it is damn that’s throughout yourslef under the bus as a commissioner.

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Where does it say in the JLAC report that we spent more than we took in?

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