Bill Text: FL S0614 | 2010 | Regular Session | Introduced

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Bill Title: Water and Wastewater Utilities [EPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2010-04-30 - Died in Committee on Communications, Energy, and Public Utilities [S0614 Detail]

Download: Florida-2010-S0614-Introduced.html

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Florida Senate - 2010                                     SB 614 
 
By Senator Bennett 
21-00638-10                                            2010614__ 
1                        A bill to be entitled 
2         An act relating to water and wastewater utilities; 
3         creating s. 367.0819, F.S.; providing for recovery 
4         through a surcharge of certain costs relating to water 
5         and wastewater system improvement projects; requiring 
6         utilities to submit tariffs reflecting the surcharge 
7         for recovery of such costs to the Florida Public 
8         Service Commission for approval and to provide 
9         specified notice of such tariff filings; specifying a 
10         limitation for the surcharge amount; providing 
11         requirements for billing, reconciliation, and 
12         adjustment of the surcharge; providing project 
13         eligibility criteria; providing requirements for 
14         notice, maintenance, and availability of certain 
15         records; providing an effective date. 
16 
17  Be It Enacted by the Legislature of the State of Florida: 
18 
19         Section 1. Section 367.0819, Florida Statutes, is created 
20  to read: 
21         367.0819 Recovery of costs for system improvement 
22  projects.— 
23         (1) To promote utility investment in system improvement 
24  projects, the commission shall allow for recovery through a 
25  surcharge of prudently incurred capital costs related to 
26  projects to enhance water quality, fire protection reliability, 
27  and long-term system viability pursuant to this section. 
28         (2) A utility seeking to establish a surcharge pursuant to 
29  this section must: 
30         (a) Submit, for commission approval, tariffs establishing a 
31  formula for calculation of rates reflecting the surcharge, which 
32  rates provide for recovery of depreciation and return on 
33  investment for each eligible project. For any rate class, the 
34  surcharge may not exceed 8 percent of otherwise applicable rates 
35  and charges approved by the commission. 
36         (b) Provide notice of the initial tariff filing to each 
37  customer in the affected service area and publish notice of the 
38  filing within the affected service area pursuant to commission 
39  rule. 
40         (3) A surcharge established pursuant to this section shall 
41  be: 
42         (a) Presented as a separate line item on the customer bill. 
43  Any changes in the surcharge must be reflected on the first bill 
44  the customer receives following such change. 
45         (b) Subject to an annual reconciliation based on a 
46  reconciliation period of 12 months ending December 31 of each 
47  year. The revenue received under the surcharge for the 
48  reconciliation period shall be compared to the eligible costs of 
49  the utility for that period. The difference between revenue and 
50  costs shall be recovered or refunded, as appropriate, over a 12 
51  month period beginning on April 1 of each year. Revenues in 
52  excess of system improvement costs shall be refunded with 
53  interest to customers. 
54         (c) Reset at zero as of the effective date of new base 
55  rates that provide for prospective recovery of the annual costs 
56  that had previously been recovered under the surcharge. 
57  Thereafter, only the fixed costs of new eligible projects that 
58  have not previously been reflected in the base rate of the 
59  utility shall be reflected in the quarterly updates of the 
60  surcharge. 
61         (4) A project is eligible for recovery of costs through the 
62  surcharge if: 
63         (a) It is completed and placed into service after the test 
64  year upon which base rates were last established for the utility 
65  by the commission; and 
66         (b) It is a construction and improvement project that is 
67  used for the production, treatment, transmission, storage, 
68  distribution, or provision of potable or recycled water to the 
69  public or for the collection, transportation, or disposal of 
70  sewage for the public. Such projects include, but are not 
71  limited to, water quality improvement projects designed to 
72  achieve primary or secondary water standards as determined by 
73  the department; wastewater quality improvement projects; main, 
74  service line, and valve replacement; main cleaning and relining; 
75  fire and flushing hydrant installation, maintenance, and 
76  replacement; main extension to eliminate dead ends; 
77  interconnection projects; water, wastewater, and reuse meter 
78  installation, maintenance, and replacement; collection sewer 
79  cleaning and relining; and manhole replacement, cleaning, and 
80  rehabilitation. 
81         (5) Upon approval of the surcharge, the utility shall 
82  maintain and make available for public inspection during normal 
83  business hours at each utility location a detailed schedule for 
84  each completed project, including the plant account number and 
85  title, the category of the project, the project name and 
86  description, the cost of the project in the month of closing, 
87  and the month and year of closing. Notice of the availability of 
88  the schedules for public inspection shall be posted in each 
89  office of the utility. 
90         Section 2. This act shall take effect July 1, 2010.