Senate Bill sb1414

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    Florida Senate - 2006                                  SB 1414

    By Senator Argenziano





    3-990-06

  1                      A bill to be entitled

  2         An act relating to electric utilities;

  3         requiring the Public Service Commission to

  4         consider whether an electric utility should be

  5         required to absorb a portion of an increase in

  6         fuel costs under certain circumstances;

  7         requiring the Public Service Commission to make

  8         certain considerations in determining the

  9         amount of an increase in fuel costs which an

10         electric utility is required to absorb;

11         providing that a customer who is without power

12         for a certain number of days due to a natural

13         disaster is exempt from an increase in rates;

14         requiring an electric utility to absorb an

15         increase in rates for certain customers who are

16         without power; prohibiting the Public Service

17         Commission from considering certain costs as

18         lost revenue in determining a rate increase;

19         providing an effective date.

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21         WHEREAS, the State of Florida has seen a significant

22  increase in the cost of electricity during the past 2 years,

23  and

24         WHEREAS, the significant increase in the cost of

25  electricity has been extremely burdensome to the residents of

26  this state due to the damages caused by the series of

27  hurricanes that have struck this state during the last 2 years

28  and the hardships that the residents have had to endure, and

29         WHEREAS, the Legislature wishes to provide the

30  residents of this state with some relief from the significant

31  increase in the cost of electricity, NOW, THEREFORE,

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    Florida Senate - 2006                                  SB 1414
    3-990-06




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

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 3         Section 1.  Notwithstanding any other provision of law,

 4  when the fuel costs for an electric utility exceed the fuel

 5  costs for the preceding calendar year by more than 25 percent,

 6  the Public Service Commission shall consider whether the

 7  electric utility should be required to absorb a portion of the

 8  increase in fuel costs. In determining the amount of the

 9  increase in fuel costs which the electric utility is required

10  to absorb, the Public Service Commission shall consider the

11  prudence and efficiency of the requirement and the burdens

12  that the increase in fuel costs may impose on the customers of

13  the electric utility, giving great weight to the testimony of

14  the customers.

15         Section 2.  (1)  In the event of a natural disaster, a

16  customer of an electric utility who is without power for more

17  than 21 days is exempt from an increase in rates resulting

18  from the costs attributed to the natural disaster. The

19  electric utility shall absorb the increase in rates for these

20  customers.

21         (2)  The Public Service Commission may not consider the

22  costs attributed to a natural disaster or the increased cost

23  of fuel as lost revenue in determining a rate increase.

24         Section 3.  This act shall take effect upon becoming a

25  law.

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    Florida Senate - 2006                                  SB 1414
    3-990-06




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 2                          SENATE SUMMARY

 3    Requires the Public Service Commission to consider
      whether an electric utility should be required to absorb
 4    a portion of an increase in fuel costs under certain
      circumstances. Requires the Public Service Commission to
 5    make certain considerations in determining the amount of
      an increase in fuel costs which an electric utility is
 6    required to absorb. Provides that a customer who is
      without power for a certain number of days due to a
 7    natural disaster is exempt from an increase in rates.
      Requires an electric utility to absorb an increase in
 8    rates for certain customers who are without power.
      Prohibits the Public Service Commission from considering
 9    certain costs as lost revenue in determining a rate
      increase.
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CODING: Words stricken are deletions; words underlined are additions.