Senate Bill sb1360

    Florida Senate - 2006                                  SB 1360

    By Senator Campbell





    32-761-06

  1                      A bill to be entitled

  2         An act relating to electric utilities; amending

  3         s. 366.04, F.S.; requiring the Public Service

  4         Commission to adopt rules establishing

  5         standards for distribution equipment and

  6         facilities for electric utilities; establishing

  7         review requirements; requiring utilities to

  8         report to the commission; authorizing the

  9         commission to impose sanctions against a

10         utility for noncompliance with the adopted

11         standards; providing an effective date.

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

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15         Section 1.  Subsection (2) of section 366.04, Florida

16  Statutes, is amended to read:

17         366.04  Jurisdiction of commission.--

18         (2)  In the exercise of its jurisdiction, the

19  commission shall have power over electric utilities for the

20  following purposes:

21         (a)  To prescribe uniform systems and classifications

22  of accounts.

23         (b)  To prescribe a rate structure for all electric

24  utilities.

25         (c)  To require electric power conservation and

26  reliability within a coordinated grid, for operational as well

27  as emergency purposes.

28         (d)  To approve territorial agreements between and

29  among rural electric cooperatives, municipal electric

30  utilities, and other electric utilities under its

31  jurisdiction.  However, nothing in this chapter shall be

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    Florida Senate - 2006                                  SB 1360
    32-761-06




 1  construed to alter existing territorial agreements as between

 2  the parties to such agreements.

 3         (e)  To resolve, upon petition of a utility or on its

 4  own motion, any territorial dispute involving service areas

 5  between and among rural electric cooperatives, municipal

 6  electric utilities, and other electric utilities under its

 7  jurisdiction. In resolving territorial disputes, the

 8  commission may consider, but not be limited to consideration

 9  of, the ability of the utilities to expand services within

10  their own capabilities and the nature of the area involved,

11  including population, the degree of urbanization of the area,

12  its proximity to other urban areas, and the present and

13  reasonably foreseeable future requirements of the area for

14  other utility services.

15         (f)  To prescribe and require the filing of periodic

16  reports and other data as may be reasonably available and as

17  necessary to exercise its jurisdiction hereunder.

18         (g)  To adopt by rule standards for inspection,

19  maintenance, repair, and replacement for the distribution

20  systems of electric utilities in this state by January 1,

21  2007. The standards for each type of distribution equipment or

22  facility must provide for high-quality, safe, and reliable

23  service.

24         1.  In setting standards, the commission shall consider

25  the cost of inspections, local geography and weather,

26  applicable codes, national practices in the electric industry,

27  sound engineering judgment, and experience. The commission

28  shall also adopt standards for operation, reliability, and

29  safety during periods of emergency or natural disaster. Each

30  utility shall report annually to the commission on its

31  compliance with the standards.

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    Florida Senate - 2006                                  SB 1360
    32-761-06




 1         2.  The commission shall conduct a review of each

 2  affected utility after every major outage to determine whether

 3  the standards have been met. If the commission finds that the

 4  standards have not been met, it may order appropriate

 5  sanctions, including penalties in the form of rate reductions

 6  or monetary fines.

 7  

 8  No provision of this chapter shall be construed or applied to

 9  impede, prevent, or prohibit any municipally owned electric

10  utility system from distributing at retail electrical energy

11  within its corporate limits, as such corporate limits exist on

12  July 1, 1974; however, existing territorial agreements shall

13  not be altered or abridged hereby.

14         Section 2.  This act shall take effect July 1, 2006.

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17                          SENATE SUMMARY

18    Requires the Public Service Commission to adopt rules
      that establish standards for the distribution equipment
19    of electric utilities. Provides for review and requires a
      report.
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CODING: Words stricken are deletions; words underlined are additions.