House Bill 1887

CODING: Words stricken are deletions; words underlined are additions.







    Florida House of Representatives - 1999                HB 1887

        By the Committee on Utilities & Communications and
    Representative Rojas





  1                      A bill to be entitled

  2         An act relating to water and wastewater;

  3         amending s. 367.022, F.S.; clarifying an

  4         exemption for resellers from regulation as a

  5         utility by the Public Service Commission;

  6         amending 367.0814, F.S.; authorizing the

  7         commission to authorize the collection of

  8         interim rates under certain circumstances;

  9         providing criteria; authorizing the commission

10         to require collection of certain rate

11         differentials; providing for finalization of

12         interim rates under certain circumstancs;

13         providing for refund of certain rate

14         differentials under certain circumstances;

15         amending s. 367.082, F.S.; clarifying a

16         procedure relating to a withdrawal of a request

17         for rate relief during the pendency of a rate

18         case; providing an effective date.

19

20  Be It Enacted by the Legislature of the State of Florida:

21

22         Section 1.  Subsection (8) of section 367.022, Florida

23  Statutes, is amended to read:

24         367.022  Exemptions.--The following are not subject to

25  regulation by the commission as a utility nor are they subject

26  to the provisions of this chapter, except as expressly

27  provided:

28         (8)  Any person who resells water or wastewater service

29  at a rate or charge which does not exceed the actual purchase

30  price of the water or wastewater thereof, if such person files

31  at least annually with the commission a list of charges and

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999                HB 1887

    193-142-99






  1  rates for all water service sold, the source and actual

  2  purchase price thereof, and any other information required by

  3  the commission to justify the exemption; but such person is

  4  subject to the provisions of s. 367.122.

  5         Section 2.  Section 367.0814, Florida Statutes, is

  6  amended to read:

  7         367.0814  Rates and charges; requests for staff

  8  assistance in changing.--

  9         (1)  The commission may establish rules by which a

10  water or wastewater utility whose gross annual revenues are

11  $150,000 or less may request and obtain staff assistance for

12  the purpose of changing its rates and charges.  A utility may

13  request staff assistance by filing an application with the

14  commission.

15         (2)  The official date of filing is established as 30

16  days after official acceptance by the commission of the

17  application.  If a utility does not remit a fee, as provided

18  by s. 367.145, within 30 days after acceptance, the commission

19  may deny the application.  The commission has 15 months after

20  the official date of filing within which to issue a final

21  order.

22         (3)  The provisions of s. 367.081(1), (2)(a), and (3)

23  shall apply in determining the utility's rates and charges.

24         (4)  The commission may, upon its own motion, or upon

25  petition from the regulated utility, authorize the collection

26  of interim rates until the effective date of the final order.

27  Such interim rates may be based upon a test period different

28  from the test period used in the request for permanent rate

29  relief.  To establish interim relief, there must be a

30  demonstration that the operation and maintenance expenses

31  exceed the revenues of the regulated utility, and interim

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999                HB 1887

    193-142-99






  1  rates shall not exceed the level necessary to cover operation

  2  and maintenance expenses as defined by the Uniform System of

  3  Accounts for Class C Water and Wastewater Utilities (1996) of

  4  the National Association of Regulatory Utility Commissioners.

  5         (5)  The commission may require that the difference

  6  between the interim rates and the previously authorized rates

  7  be collected under bond, escrow, letter of credit, or

  8  corporate undertaking subject to refund with interest at a

  9  rate ordered by the commission.

10         (6)(4)  The utility, in requesting staff assistance,

11  shall agree to accept the final rates and charges approved by

12  the commission unless the final rates and charges produce less

13  revenue than the existing rates and charges.

14         (7)(5)  In the event of a protest or appeal by a party

15  other than the utility, the commission may provide for

16  temporary rates subject to refund with interest.

17         (8)(6)  If a utility becomes exempt from commission

18  regulation or jurisdiction during the pendency of a

19  staff-assisted rate case, the request for rate relief is

20  deemed to have been withdrawn. Interim rates, if previously

21  approved, shall become final. Temporary rates, if previously

22  approved, must be discontinued, and any money collected

23  pursuant to the temporary rates, or the difference between

24  temporary and interim rates, if previously approved, must be

25  refunded to the customers of the utility with interest.

26         (8)(7)  The commission may by rule establish standards

27  and procedures whereby rates and charges of small utilities

28  may be set using criteria other than those set forth in s.

29  367.081(1), (2)(a), and (3).

30         Section 3.  Subsection (7) of section 367.082, Florida

31  Statutes, is amended to read:

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999                HB 1887

    193-142-99






  1         367.082  Interim rates; procedure.--

  2         (7)  If a utility becomes exempt from commission

  3  regulation or jurisdiction during the pendency of a rate case,

  4  the request for rate relief pending before the commission is

  5  deemed to have been withdrawn. Interim rates, if previously

  6  approved, must be discontinued, and any money collected

  7  pursuant to interim rate relief must be refunded to the

  8  customers of the utility with interest.

  9         Section 4.  This act shall take effect upon becoming a

10  law.

11

12            *****************************************

13                          HOUSE SUMMARY

14
      Clarifies an exemption for resellers from regulation as a
15    utility by the Public Service Commission. Authorizes the
      commission to authorize the collection of interim rates
16    until a final order is effective and authorizes the
      commission to require collection of the difference
17    between interim rates and previously authorized rates.
      Provides for finalization of interim rates and for
18    refunding of the difference between temporary rates and
      interim rates.
19

20

21

22

23

24

25

26

27

28

29

30

31

                                  4