Senate Bill 2234

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    Florida Senate - 1999                                  SB 2234

    By Senator Klein





    28-1273-99

  1                      A bill to be entitled

  2         An act relating to water and wastewater

  3         systems; amending s. 367.022, F.S.; eliminating

  4         an annual report to the Public Service

  5         Commission by an exempt utility; amending s.

  6         367.0814, F.S.; authorizing interim rate relief

  7         in staff-assisted rate cases; providing for

  8         interim or temporary rates when a utility

  9         becomes exempt during the pendency of a case;

10         amending s. 367.082, F.S.; conforming an

11         inconsistent provision; providing an effective

12         date.

13

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

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16         Section 1.  Section 367.022, Florida Statutes, is

17  amended to read:

18         367.022  Exemptions.--The following are not subject to

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

20  to the provisions of this chapter, except as expressly

21  provided:

22         (1)  The sale, distribution, or furnishing of bottled

23  water.;

24         (2)  Systems owned, operated, managed, or controlled by

25  governmental authorities, including wastewater facilities

26  operated by private firms under wastewater facility

27  privatization contracts as defined in s. 153.91.;

28         (3)  Manufacturers providing service solely in

29  connection with their operations.;

30         (4)  Public lodging establishments providing service

31  solely in connection with service to their guests.;

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    Florida Senate - 1999                                  SB 2234
    28-1273-99




  1         (5)  Landlords providing service to their tenants

  2  without specific compensation for the service.;

  3         (6)  Systems with the capacity or proposed capacity to

  4  serve 100 or fewer persons.;

  5         (7)  Nonprofit corporations, associations, or

  6  cooperatives providing service solely to members who own and

  7  control such nonprofit corporations, associations, or

  8  cooperatives.; and

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

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

11  price thereof, if such person files at least annually with the

12  commission a list of charges and rates for all water service

13  sold, the source and actual purchase price thereof, and any

14  other information required by the commission to justify the

15  exemption; but such person is subject to the provisions of s.

16  367.122.

17         (9)  Wastewater treatment plants operated exclusively

18  for disposing of industrial wastewater.

19         (10)  The sale of bulk supplies of desalinated water to

20  a governmental authority.

21         (11)  Any person providing only nonpotable water for

22  irrigation purposes in a geographic area where potable water

23  service is available from a governmentally or privately owned

24  utility or a private well.

25         (12)  The sale for resale of bulk supplies of water to

26  a governmental authority or to a utility regulated pursuant to

27  this chapter either by the commission or the county.

28         Section 2.  Section 367.0814, Florida Statutes, is

29  amended to read:

30         367.0814  Rates and charges; requests for staff

31  assistance in changing.--

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    Florida Senate - 1999                                  SB 2234
    28-1273-99




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

  2  water or wastewater utility whose gross annual revenues are

  3  $150,000 or less may request and obtain staff assistance for

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

  5  request staff assistance by filing an application with the

  6  commission.

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

  8  days after official acceptance by the commission of the

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

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

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

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

13  order.

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

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

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

17  petition from the regulated utility, authorize the collection

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

19  The interim rates may be based upon a test period different

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

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

22  demonstration that the operation and maintenance expenses

23  exceed the revenues of the regulated utility, and interim

24  rates may not exceed the level necessary to cover operation

25  and maintenance expenses as defined by the NARUC System of

26  Accounts.

27         (5)  The commission may require that the difference

28  between the interim rates and the previously authorized rates

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

30  corporate undertaking, subject to refund with interest at a

31  rate ordered by the commission.

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    Florida Senate - 1999                                  SB 2234
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  1         (6)(4)  The utility, in requesting staff assistance,

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

  3  the commission unless the final rates and charges produce less

  4  revenue than the existing rates and charges.

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

  6  other than the utility, the commission may provide for

  7  temporary rates subject to refund with interest.

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

  9  regulation or jurisdiction during the pendency of a

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

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

12  approved, become final. Temporary rates, if previously

13  approved, must be discontinued, and any money collected

14  pursuant to the temporary rates, or the difference between

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

16  refunded to the customers of the utility with interest.

17         (9)(7)  The commission may by rule establish standards

18  and procedures whereby rates and charges of small utilities

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

20  367.081(1), (2)(a), and (3).

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

22  Statutes, is amended to read:

23         367.082  Interim rates; procedure.--

24         (7)  If a utility becomes exempt from commission

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

26  the request for rate relief pending before the commission is

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

28  approved, must be discontinued, and any money collected

29  pursuant to interim rate relief must be refunded to the

30  customers of the utility with interest.

31         Section 4.  This act shall take effect October 1, 1999.

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    Florida Senate - 1999                                  SB 2234
    28-1273-99




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  2                          SENATE SUMMARY

  3    Revises interim rate procedures for water and wastewater
      utilities.
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