HB 273

1
A bill to be entitled
2An act relating to water and wastewater utilities;
3creating s. 367.0819, F.S.; providing for recovery through
4a surcharge of certain costs relating to water and
5wastewater system improvement projects; requiring
6utilities to submit tariffs reflecting the surcharge for
7recovery of such costs to the Florida Public Service
8Commission for approval and to provide specified notice of
9such tariff filings; specifying a limitation for the
10surcharge amount; providing requirements for billing,
11reconciliation, and adjustment of the surcharge; providing
12project eligibility criteria; providing requirements for
13notice, maintenance, and availability of certain records;
14providing an effective date.
15
16Be It Enacted by the Legislature of the State of Florida:
17
18     Section 1.  Section 367.0819, Florida Statutes, is created
19to read:
20     367.0819  Recovery of costs for system improvement
21projects.--
22     (1)  To promote utility investment in system improvement
23projects, the commission shall allow for recovery through a
24surcharge of prudently incurred capital costs related to
25projects to enhance water quality, fire protection reliability,
26and long-term system viability pursuant to this section.
27     (2)  A utility seeking to establish a surcharge pursuant to
28this section must:
29     (a)  Submit, for commission approval, tariffs establishing
30a formula for calculation of rates reflecting the surcharge,
31which rates provide for recovery of depreciation and return on
32investment for each eligible project. For any rate class, the
33surcharge may not exceed 8 percent of otherwise applicable rates
34and charges approved by the commission.
35     (b)  Provide notice of the initial tariff filing to each
36customer in the affected service area and publish notice of the
37filing within the affected service area pursuant to commission
38rule.
39     (3)  A surcharge established pursuant to this section shall
40be:
41     (a)  Presented as a separate line item on the customer
42bill. Any changes in the surcharge must be reflected on the
43first bill the customer receives following such change.
44     (b)  Subject to an annual reconciliation based on a
45reconciliation period of 12 months ending December 31 of each
46year. The revenue received under the surcharge for the
47reconciliation period shall be compared to the eligible costs of
48the utility for that period. The difference between revenue and
49costs shall be recovered or refunded, as appropriate, over a 12-
50month period beginning on April 1 of each year. Revenues in
51excess of system improvement costs shall be refunded with
52interest to customers.
53     (c)  Reset at zero as of the effective date of new base
54rates that provide for prospective recovery of the annual costs
55that had previously been recovered under the surcharge.
56Thereafter, only the fixed costs of new eligible projects that
57have not previously been reflected in the base rate of the
58utility shall be reflected in the quarterly updates of the
59surcharge.
60     (4)  A project is eligible for recovery of costs through
61the surcharge if:
62     (a)  It is completed and placed into service after the test
63year upon which base rates were last established for the utility
64by the commission; and
65     (b)  It is a construction and improvement project that is
66used for the production, treatment, transmission, storage,
67distribution, or provision of potable or recycled water to the
68public or for the collection, transportation, or disposal of
69sewage for the public. Such projects include, but are not
70limited to, water quality improvement projects designed to
71achieve primary or secondary water standards as determined by
72the department; wastewater quality improvement projects; main,
73service line, and valve replacement; main cleaning and relining;
74fire and flushing hydrant installation, maintenance, and
75replacement; main extension to eliminate dead ends;
76interconnection projects; water, wastewater, and reuse meter
77installation, maintenance, and replacement; collection sewer
78cleaning and relining; and manhole replacement, cleaning, and
79rehabilitation.
80     (5)  Upon approval of the surcharge, the utility shall
81maintain and make available for public inspection during normal
82business hours at each utility location a detailed schedule for
83each completed project, including the plant account number and
84title, the category of the project, the project name and
85description, the cost of the project in the month of closing,
86and the month and year of closing. Notice of the availability of
87the schedules for public inspection shall be posted in each
88office of the utility.
89     Section 2.  This act shall take effect July 1, 2010.


CODING: Words stricken are deletions; words underlined are additions.