The constant tug-of-war over who controls Gainesville Regional Utilities looks to sway in the GRU authority board’s favor after a bill that further cements state control was signed into law.
Gov. Ron DeSantis signed HB-1451, sponsored by state Rep. Demi Busatta, R-Coral Gables, on June 11. The law restricts how much cities can charge certain out‑of‑city utility customers, requires public meetings for new agreements with other municipalities, and expands state oversight of municipally owned utilities. The law will take effect on Jan. 1.
Here’s what we know:
What does this law mean for GRU customers?
According to the final bill analysis published on June 15, a municipality that intends to offer retail electric, natural gas, water, or sewer utility service in another municipality or unincorporated area outside of its boundaries must hold a public meeting in conjunction with the governing body of each municipality or unincorporated area to be served.
“The bill provides that this meeting does not need to be a separate public meeting conducted specifically for this purpose,” the bill analysis reads. But “the public meeting must take place before a new agreement to provide such service, or a renewal, extension, or material amendment of an existing agreement, may take effect.”
The analysis says the meeting must be held within each municipality and unincorporated area. Stakeholders must be provided information on the nature of the service, rates, fees, and charges to be imposed, any varying numbers for customers who live within or out of the municipality, and share revenues generated that will be used to fund or finance non-utility government functions or services.
Additionally, the law limits rates, fees, and charges that a municipal water or sewer utility may impose on customers outside the boundaries of the municipality to no more than 25 percent in excess of those imposed on customers within the boundaries.
The law authorizes municipalities to continue imposing a surcharge on consumers outside the municipal boundaries if the surcharge was in effect before March 1, 2026, “but only as necessary to comply with certain bond covenants and subject to certain time limitations.”
While the GRUA board was not mentioned specifically, “the bill provides express state preemption over the subject of a regional utility’s authority created by the Legislature through charter amendment after January 1, 2023. This bill provides that this preemption takes effect upon becoming a law,” the analysis says.
DeSantis signed HB-1645, which granted the conception of GRUA, on June 28, 2023.
Under fiscal or economic impact, the bill analysis says the law “may have an indeterminate negative impact on local government revenues and expenditures.”
What are local officials and GRU customers saying?
Calling it a huge win for GRU and its customers, CEO Ed Bielarski said in a June 12 press release that the utility is headed in the right direction and DeSantis’ action ensures the authority can continue to support its customer-first approach.
“With a stroke of the governor’s pen, the seemingly never-ending attacks upon the governance of GRU have been put to rest,” Bielarski said. “This comes days after the GRU Authority approved a budget with no electric base rate increases for the third consecutive year.”
Alachua County Labor Coalition Coordinator Bobby Mermer shared a press release with The Sun on June 12 and said the measure changes how surcharges are applied in unincorporated areas in a way that will likely raise costs for utility customers across Florida.
“In effect, this makes the GRU Authority an ‘autonomous’ state-controlled entity, with members appointed by the state and little to no oversight by the Florida Legislature,” Mermer said. “In effect, it overrules a duly certified election and takes the voice of ratepayers entirely out decisions in their utility.”
The press release included comments from customers who spoke out against the GRUA board. One commenter, Nancy Deren, said she pays GRU bills from unincorporated Alachua County. Deren said ratepayers like herself want local accountability and transparency, just as much as people inside the city do.
“Our local delegation ignored us county customers when we called and wrote them to please not lock in this badly written bill. The GRU Authority has openly stated they are not responsible to us,” Deren said. “Now, we’re left with no representation at all, even as we’re being asked to pay higher and higher bills.”
Retired CPA and Gainesville Iguana columnist Chuck Ross disputed the statement that GRU has lowered rates; he argues they have gone up.
“Debt isn’t under control, either, the utility is taking on more. The Legislature promised lower rates and more stability when it took over GRU,” Ross said.
Continuing the messaging of a lack of accountability, no transparency and mismanagement, state Rep. Yvonne Hinson said in a June 15 statement that DeSantis signed a bill that puts special interests ahead of the people paying these bills every month.
“For the life of me, I can’t understand why South Florida and the state Legislature is so obsessed with GRU.” Hinson said. “When I attempted to file a repeal of HB 1645, I was discouraged by several city and former city officials. This has left me baffled and confused.”
As Rep. Hinson announced she is not re-running for her state House seat, she encourages GRU ratepayers to bring all GRU-related concerns directly to the Alachua County Legislative Delegation, comprised of the state representatives and senators who represent all or part of the county.
This article originally appeared on The Gainesville Sun: DeSantis signs bill that further cements GRUA control. What’s next?
Reporting by Elliot Tritto, Gainesville Sun / The Gainesville Sun
USA TODAY Network via Reuters Connect
By Elliot Tritto, Gainesville Sun | USA TODAY Network
