Bill Text: FL S1478 | 2016 | Regular Session | Introduced
Bill Title: Utility Advanced Cost Recovery
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-01-15 - Withdrawn from further consideration [S1478 Detail]
Download: Florida-2016-S1478-Introduced.html
Florida Senate - 2016 SB 1478
By Senator Sobel
33-01258-16 20161478__
1 A bill to be entitled
2 An act relating to utility advanced cost recovery;
3 amending s. 366.93, F.S.; providing for the expiration
4 of provisions authorizing advanced cost recovery for
5 nuclear and integrated gasification combined cycle
6 power plants; requiring certain funds to be returned
7 to ratepayers; prohibiting utilities from increasing
8 or imposing charges to offset the loss of utility
9 revenues as a result of refunding moneys from the
10 collection of advanced cost recovery fees; providing
11 for future repeal; amending s. 366.95, F.S.;
12 conforming provisions regarding advanced cost recovery
13 and securitization; amending s. 403.519, F.S.;
14 deleting provisions limiting challenges to a utility’s
15 right to recover advanced costs incurred before
16 commercial operation of nuclear or integrated
17 gasification combined cycle power plants; prohibiting
18 utilities from continuing to collect advanced costs
19 for certain plants after a specified date; providing
20 an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Subsection (7) is added to section 366.93,
25 Florida Statutes, to read:
26 366.93 Cost recovery for the siting, design, licensing, and
27 construction of nuclear and integrated gasification combined
28 cycle power plants.—
29 (7) Subsections (1)-(6) shall expire July 1, 2016. All
30 costs collected by a utility pursuant to this section shall be
31 returned to the ratepayers of the utility by June 30, 2017. The
32 utility may not charge new fees, increase fees, or increase the
33 rates of ratepayers who paid the advanced cost recovery fees,
34 which would otherwise offset the loss of utility revenues as a
35 result of refunding costs to ratepayers. This section is
36 repealed July 1, 2017.
37 Section 2. Paragraph (k) of subsection (1) of section
38 366.95, Florida Statutes, is amended to read:
39 366.95 Financing for certain nuclear generating asset
40 retirement or abandonment costs.—
41 (1) DEFINITIONS.—As used in this section, the term:
42 (k) “Nuclear asset-recovery costs” means:
43 1. At the option of and upon petition by the electric
44 utility, and as approved by the commission pursuant to sub
45 subparagraph (2)(c)1.b., pretax costs that an electric utility
46 has incurred or expects to incur which are caused by, associated
47 with, or remain as a result of the early retirement or
48 abandonment of a nuclear generating asset unit that generated
49 electricity and is located in this state where such early
50 retirement or abandonment is deemed to be reasonable and prudent
51 by the commission through a final order approving a settlement
52 or other final order issued by the commission before July 1,
53 2017, and where the pretax costs to be securitized exceed $750
54 million at the time of the filing of the petition. Costs
55 eligible or claimed for recovery pursuant to s. 366.93, Florida
56 Statutes 2016, are not eligible for securitization under this
57 section unless they were in the electric utility’s rate base and
58 were included in base rates before retirement or abandonment.
59 2. Such pretax costs, where determined appropriate by the
60 commission, include, but are not limited to, the capitalized
61 cost of the retired or abandoned nuclear generating asset unit,
62 other applicable capital and operating costs, accrued carrying
63 charges, deferred expenses, reductions for applicable insurance
64 and salvage proceeds and previously stipulated write-downs or
65 write-offs, if any, and the costs of retiring any existing
66 indebtedness, fees, costs, and expenses to modify existing debt
67 agreements or for waivers or consents related to existing debt
68 agreements.
69 Section 3. Paragraph (e) of subsection (4) of section
70 403.519, Florida Statutes, is amended to read:
71 403.519 Exclusive forum for determination of need.—
72 (4) In making its determination on a proposed electrical
73 power plant using nuclear materials or synthesis gas produced by
74 integrated gasification combined cycle power plant as fuel, the
75 commission shall hold a hearing within 90 days after the filing
76 of the petition to determine need and shall issue an order
77 granting or denying the petition within 135 days after the date
78 of the filing of the petition. The commission shall be the sole
79 forum for the determination of this matter and the issues
80 addressed in the petition, which accordingly shall not be
81 reviewed in any other forum, or in the review of proceedings in
82 such other forum. In making its determination to either grant or
83 deny the petition, the commission shall consider the need for
84 electric system reliability and integrity, including fuel
85 diversity, the need for base-load generating capacity, the need
86 for adequate electricity at a reasonable cost, and whether
87 renewable energy sources and technologies, as well as
88 conservation measures, are utilized to the extent reasonably
89 available.
90 (e) After a petition for determination of need for a
91 nuclear or integrated gasification combined cycle power plant
92 has been granted, the right of a utility to recover any costs
93 incurred prior to commercial operation, including, but not
94 limited to, costs associated with the siting, design, licensing,
95 or construction of the plant and new, expanded, or relocated
96 electrical transmission lines or facilities of any size that are
97 necessary to serve the nuclear power plant, shall not be subject
98 to challenge unless and only to the extent the commission finds,
99 based on a preponderance of the evidence adduced at a hearing
100 before the commission under s. 120.57, that certain costs were
101 imprudently incurred. Proceeding with the construction of the
102 nuclear or integrated gasification combined cycle power plant
103 following an order by the commission approving the need for the
104 nuclear or integrated gasification combined cycle power plant
105 under this act shall not constitute or be evidence of
106 imprudence. Imprudence shall not include any cost increases due
107 to events beyond the utility’s control. Further, a utility’s
108 right to recover costs associated with a nuclear or integrated
109 gasification combined cycle power plant may not be raised in any
110 other forum or in the review of proceedings in such other forum.
111 Costs incurred prior to commercial operation shall be recovered
112 pursuant to chapter 366.
113 Section 4. This act shall take effect upon becoming a law.
