HB 273

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

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