Documentation Critical to Florida Utility s FEMA Reimbursement Arbitration
A Panel consisting of Judges Beardsley, Drummond, and Russell has determined the Florida Keys Electric Cooperative is entitled to partial reimbursement of its costs incurred to establish two full-service base camps to support recovery and power restoration efforts immediately following Hurricane Irma in 2017. Based on data included in the Decision, the Cooperative will recover approximately 84 percent of the costs incurred, compared to a full denial going into the arbitration and a subsequent determination by FEM that approximately 20 percent of the costs were eligible.
The Panel focused on reasonableness of the costs incurred. Presumably based on the notion that a properly procured contract is indicative of the reasonable cost of the associated work, the Panel first considers FEMA s position that the contract was not compliant with the Cooperative s or FEMA s procurement requirements. In doing so, the Panel