Senate Bill sb1202

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    Florida Senate - 2005                                  SB 1202

    By Senator Bennett





    21-623-05

  1                      A bill to be entitled

  2         An act relating to the provision of electric

  3         power; amending s. 366.05, F.S.; requiring

  4         findings by the Public Service Commission

  5         before a public utility constructs a power

  6         plant or buys certain power from a third party;

  7         requiring a public utility to purchase

  8         wholesale power under certain conditions;

  9         amending s. 403.503, F.S.; adding gas and

10         combined cycle facilities to the power plants

11         that are subject to the Florida Electrical

12         Power Plant Siting Act; amending s. 403.506,

13         F.S.; providing for application of the act to

14         steam-generating plants; applying the act's

15         certification requirement to facilities that

16         alter or add certain steam generating capacity

17         to an existing plant; specifying that the

18         replacement of an existing turbine is an

19         alteration rather than a modification; amending

20         s. 403.5175, F.S.; requiring that a

21         determination of need by the Public Service

22         Commission be included in an application for

23         power plant certification which seeks a certain

24         increase in steam-generating capacity at an

25         existing plant; providing an effective date.

26  

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

28  

29         Section 1.  Subsection (12) is added to section 366.05,

30  Florida Statutes, to read:

31         366.05  Powers.--

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    Florida Senate - 2005                                  SB 1202
    21-623-05




 1         (12)  In order to ensure that each public utility that

 2  produces or purchases power complies with its obligations

 3  under s. 366.03 regarding fair and reasonable rates and

 4  charges, each public utility shall:

 5         (a)  Seek and receive commission approval before

 6  constructing an electric power plant as defined in s. 403.503,

 7  procuring capacity in an amount greater than 150 megawatts

 8  from a third-party supplier, or procuring capacity for a term

 9  longer than 1 year from a third-party supplier. The commission

10  may not grant approval unless it finds that:

11         1.  The utility seeking approval conducted a publicly

12  announced fair and competitive procurement process that was

13  monitored for fairness and evaluated for cost-effectiveness by

14  an independent evaluator appointed by the commission; and

15         2.  The decision to construct or procure by the utility

16  seeking approval is the most cost-effective alternative for

17  the customers of the utility.

18         (b)  Purchase energy from third-party suppliers when

19  such power is available for purchase on the wholesale market

20  at prices that make it less costly for the utility to buy the

21  power than to produce it, taking into consideration to the

22  greatest extent possible the utility's purchasing obligations

23  under the federal Public Utility Regulatory Policy Act.

24         Section 2.  Subsection (12) of section 403.503, Florida

25  Statutes, is amended to read:

26         403.503  Definitions relating to Florida Electrical

27  Power Plant Siting Act.--As used in this act:

28         (12)  "Electrical power plant" means, for the purpose

29  of certification, any gas, steam, combined-cycle, or solar

30  electrical generating facility using any process or fuel,

31  including nuclear materials, and includes associated

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    Florida Senate - 2005                                  SB 1202
    21-623-05




 1  facilities which directly support the construction and

 2  operation of the electrical power plant and those associated

 3  transmission lines which connect the electrical power plant to

 4  an existing transmission network or rights-of-way to which the

 5  applicant intends to connect, except that this term does not

 6  include any gas, steam, combined-cycle, or solar electrical

 7  generating facility of less than 75 megawatts in capacity

 8  unless the applicant for such a facility elects to apply for

 9  certification under this act.  An associated transmission line

10  may include, at the applicant's option, any proposed terminal

11  or intermediate substations or substation expansions connected

12  to the associated transmission line.

13         Section 3.  Subsections (1) and (2) of section 403.506,

14  Florida Statutes, are amended to read:

15         403.506  Applicability and certification.--

16         (1)  The provisions of This act applies shall apply to

17  any electrical power plant as defined herein, except that this

18  the provisions of this act does shall not apply to any

19  electrical power plant or steam generating plant of less than

20  75 megawatts in capacity or to any substation to be

21  constructed as part of an associated transmission line unless

22  the applicant elects has elected to apply for certification of

23  such plant or substation under this act. No construction of

24  any new electrical power plant or addition or alteration of

25  the expansion in steam generating capacity of any existing

26  electrical power plant which increases such capacity at that

27  plant by an amount equal to or greater than 75 megawatts may

28  be undertaken after October 1, 1973, without first obtaining

29  certification in the manner as herein provided, except that

30  this act shall not apply to any such electrical power plant

31  which is presently operating or under construction or which

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    Florida Senate - 2005                                  SB 1202
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 1  has, upon the effective date of chapter 73-33, Laws of

 2  Florida, applied for a permit or certification under

 3  requirements in force prior to the effective date of such act.

 4         (2)  Except as provided in the certification,

 5  modification of nonnuclear fuels, internal related hardware,

 6  or operating conditions not in conflict with certification

 7  which increase the electrical output of a unit to no greater

 8  capacity than the maximum operating capacity of the existing

 9  generator do shall not constitute an alteration or addition to

10  generating capacity which requires certification pursuant to

11  this act. For the purpose of this subsection, replacement of

12  an existing gas, steam, or combined cycle turbine is an

13  alteration and not a modification.

14         Section 4.  Subsection (1) of section 403.5175, Florida

15  Statutes, is amended to read:

16         403.5175  Existing electrical power plant site

17  certification.--

18         (1)  An electric utility that owns or operates an

19  existing electrical power plant as defined in s. 403.503(12)

20  may apply for certification of an existing power plant and its

21  site in order to obtain all agency licenses necessary to

22  assure compliance with federal or state environmental laws and

23  regulation using the centrally coordinated, one-stop licensing

24  process established by this part.  An application for site

25  certification under this section must be in the form

26  prescribed by department rule. Applications must be reviewed

27  and processed in accordance with ss. 403.5064-403.5115, except

28  that a determination of need by the Public Service Commission

29  is not required unless the application seeks certification of

30  an addition or alteration of the steam-generating capacity of

31  

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    Florida Senate - 2005                                  SB 1202
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 1  an existing power plant which would increase such capacity in

 2  that plant by an amount that equals or exceeds 75 megawatts.

 3         Section 5.  This act shall take effect July 1, 2005.

 4  

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 6                          SENATE SUMMARY

 7    Requires findings by the Public Service Commission before
      a public utility constructs a power plant or buys certain
 8    power from a third party. Requires a public utility to
      purchase wholesale power under certain conditions. Adds
 9    gas and combined-cycle facilities to the power plants
      subject to the Florida Electrical Power Plant Siting Act.
10    Removes steam generating plants from application of that
      act. Applies the act's certification requirement to
11    facilities that alter or add certain steam-generating
      capacity to an existing plant.
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