By Senator Bennett
21-249-04
CODING: Words stricken
are deletions; words underlined are
additions.
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A bill to be entitled
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An act relating to water and wastewater
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systems; amending s. 367.081, F.S.; authorizing
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the Florida Public Service Commission to
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approve rates allowing utilities to recover the
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full costs of alternative water supply
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facilities; amending s. 367.0814, F.S.;
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increasing the limitation on gross annual
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revenues under which a water or wastewater
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utility may qualify to obtain staff assistance
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from the Florida Public Service Commission in
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changing rates and charges; providing an
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effective date.
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15 Be It Enacted by the Legislature
of the State of Florida:
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Section 1. Subsection (2) of section 367.081, Florida
18 Statutes, is amended to read:
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367.081 Rates; procedure for fixing and changing.--
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(2)(a)1. The commission shall, either upon request or
21 upon its own motion, fix rates
which are just, reasonable,
22 compensatory, and not unfairly
discriminatory. In every such
23 proceeding, the commission shall
consider the value and
24 quality of the service and the
cost of providing the service,
25 which shall include, but not
be limited to, debt interest; the
26 requirements of the utility for
working capital; maintenance,
27 depreciation, tax, and operating
expenses incurred in the
28 operation of all property used
and useful in the public
29 service; and a fair return on
the investment of the utility in
30 property used and useful in the
public service. Pursuant to s.
31 373.1961(2)(k),
the commission shall allow recovery for the
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1 full,
prudently incurred costs of alternative water supply
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facilities. However, the commission shall not allow the
3 inclusion of contributions-in-aid-of-construction
in the rate
4 base of any utility during
a rate proceeding, nor shall the
5 commission impute prospective
future
6 contributions-in-aid-of-construction
against the utility's
7 investment in property used
and useful in the public service.;
8 and
Accumulated depreciation on such
9 contributions-in-aid-of-construction
shall not be used to
10 reduce the rate base, nor shall
depreciation on such
11 contributed assets be considered
a cost of providing utility
12 service.
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2. For purposes of such proceedings, the commission
14 shall consider utility property,
including land acquired or
15 facilities constructed or to
be constructed within a
16 reasonable time in the future,
not to exceed 24 months after
17 the end of the historic base
year used to set final rates
18 unless a longer period is approved
by the commission, to be
19 used and useful in the public
service, if:
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a. Such property is needed to serve current customers;
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b. Such property is needed to serve customers 5 years
22 after the end of the test year
used in the commission's final
23 order on a rate request as provided
in subsection (6) at a
24 growth rate for equivalent residential
connections not to
25 exceed 5 percent per year; or
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c. Such property is needed to serve customers more
27 than 5 full years after the end
of the test year used in the
28 commission's final order on a
rate request as provided in
29 subsection (6) only to the extent
that the utility presents
30 clear and convincing evidence
to justify such consideration.
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1 Notwithstanding the provisions
of this paragraph, the
2 commission shall approve
rates for service which allow a
3 utility to recover from
customers the full amount of
4 environmental compliance
costs. Such rates may not include
5 charges for allowances for
funds prudently invested or similar
6 charges. For purposes of
this requirement, the term
7 "environmental compliance
costs" includes all reasonable
8 expenses and fair return
on any prudent investment incurred by
9 a utility in complying with
the requirements or conditions
10 contained in any permitting,
enforcement, or similar decisions
11 of the United States Environmental
Protection Agency, the
12 Department of Environmental Protection,
a water management
13 district, or any other governmental
entity with similar
14 regulatory jurisdiction.
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(b) In establishing initial rates for a utility, the
16 commission may project the financial
and operational data as
17 set out in paragraph (a) to a
point in time when the utility
18 is expected to be operating at
a reasonable level of capacity.
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Section 2. Subsection (1) of section 367.0814, Florida
20 Statutes, is amended to read:
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367.0814 Staff assistance in changing rates an
22 charges; interim rates.--
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(1) The commission may establish rules by which a
24 water or wastewater utility whose
gross annual revenues are
25 $200,000
$150,000 or less may request
and obtain staff
26 assistance for the purpose of
changing its rates and charges.
27 A utility may request staff assistance
by filing an
28 application with the commission.
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Section 3. This act shall take effect upon becoming a
30 law.
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SENATE SUMMARY
3 Provides for
rates approved by the Florida Public Service
Commission
to allow for the recovery of the full,
4 prudently incurred
costs of alternative water supply
facilities.
Provides that a water or wastewater utility
5 may obtain staff
assistance for changing its rates and
charges
from the Florida Public Service Commission if the
6 gross annual
revenues of the utility are $200,000 or less
rather
than $150,000 or less.
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CODING: Words stricken
are deletions; words underlined are
additions. |