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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