Florida Senate - 2014                        COMMITTEE AMENDMENT
       Bill No. SB 272
       
       
       
       
       
       
                                Ì752326&Î752326                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: FAV            .                                
                  01/15/2014           .                                
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       (Simpson) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 367.072, Florida Statutes, is created to
    6  read:
    7         367.072Petition to revoke certificate of authorization.
    8  The Legislature finds that it is in the public interest that
    9  water and wastewater service be of good quality and consistent
   10  with the standards set forth in this chapter. The Legislature
   11  finds that the customers of a utility are in a position to
   12  initially assess the quality of the water or wastewater service
   13  provided. Therefore, a utility’s certificate of authorization
   14  may be suspended or revoked if its customers file a petition
   15  with the commission in accordance with this section.
   16         (1)For the purpose of determining whether a utility is
   17  providing quality water or wastewater service, a petition must:
   18         (a)State with specificity each issue customers have with
   19  the water or wastewater service; and
   20         (b)Be signed by at least 65 percent of a system’s
   21  customers. The term “customer” means an individual whose
   22  property is serviced by a single meter or a person whose name
   23  appears on the bill for a master meter. A person whose name
   24  appears on the bill for a master meter may sign a petition if at
   25  least 65 percent of the customers, tenants, or unit owners
   26  served by the master meter support the petition, in which case
   27  documentation of such support must be included with the
   28  petition.
   29         (2)Upon receipt, the commission shall review the petition
   30  and determine if it is in compliance with this section and
   31  whether the issues identified within the petition support a
   32  finding that the water or wastewater utility is failing to
   33  provide quality water or wastewater service. If the commission
   34  finds that there is a reasonable likelihood that the utility is
   35  not providing quality water or wastewater service, then it shall
   36  submit a copy of the petition to the respective utility. The
   37  utility shall submit a response to the commission addressing the
   38  issues identified within the petition and explaining whether it
   39  is providing quality water or wastewater service using the
   40  following criteria:
   41         (a)Federal, state, and local primary standards or quality
   42  standards pursuant to s. 367.0812; and
   43         (b)The relationship between the utility and its customers,
   44  including each complaint received regarding service quality, the
   45  length of time each customer has been complaining about service,
   46  the resolution of each complaint, and the time it has taken to
   47  address such complaints.
   48         (3)The commission shall evaluate the issues identified
   49  within the petition; the utility’s response as to whether it is
   50  providing quality water or wastewater service; the rates of the
   51  utility in comparison with other utilities of similar size and
   52  operational characteristics; and any other factor the commission
   53  deems relevant.
   54         (4)Notwithstanding s. 367.045 and based upon its
   55  evaluation, the commission shall:
   56         (a)Dismiss the petition if the decision is supported by
   57  competent substantial evidence, in which case the decision is
   58  subject to ss. 120.569 and 120.57;
   59         (b)Suspend the utility’s certificate and require the
   60  utility to take the necessary steps to correct the water or
   61  wastewater service issues identified. The commission shall set
   62  benchmarks within a timeframe, not to exceed 3 years, and may
   63  require the utility to provide interim reports describing its
   64  progress in meeting such benchmarks; or
   65         (c)Revoke the utility’s certificate, in which case a
   66  receiver must be appointed pursuant to s. 367.165 until a sale
   67  of the utility system has been approved pursuant to s. 367.071.
   68         (5)The commission shall adopt by rule the format of and
   69  requirements for a petition and may adopt other rules to
   70  administer this section.
   71         Section 2. Section 367.0812, Florida Statutes, is created
   72  to read:
   73         367.0812 Rate fixing; quality of water or wastewater
   74  service as criterion.—
   75         (1) In fixing rates that are just, reasonable,
   76  compensatory, and not unfairly discriminatory, the commission
   77  shall consider the extent to which the utility provides water
   78  service that meets secondary water quality standards for taste,
   79  odor, color, or corrosiveness, as established by the Department
   80  of Environmental Protection, the respective water management
   81  district, or the local governmental entity. The commission may
   82  deny all or part of a rate increase for a utility’s system or
   83  part of a system if it determines that the quality of water
   84  service is less than satisfactory. In determining whether a
   85  utility has satisfied its obligation to provide water service to
   86  its customers which meets the standards for taste, odor, color,
   87  or corrosiveness, the commission shall consider:
   88         (a) Testimony and evidence provided by customers and the
   89  utility;
   90         (b) The results of past tests required by the Department of
   91  Environmental Protection or a county health department which
   92  measure the utility’s compliance with the applicable secondary
   93  water quality standards;
   94         (c) Complaints regarding the applicable secondary water
   95  quality standards filed by customers with the commission, the
   96  Department of Environmental Protection, the respective water
   97  management district, or the respective local governmental entity
   98  during the past 5 years; and
   99         (d) If the commission deems necessary, the results of any
  100  updated test.
  101         (2)In fixing just, reasonable, compensatory, and not
  102  unfairly discriminatory rates, the commission shall consider the
  103  extent to which the utility provides wastewater service to its
  104  customers without generating odor, noise, aerosol drift, or
  105  lighting that adversely affects customers. The commission may
  106  deny all or part of a rate increase for a utility’s system or
  107  part of a system if it determines that the quality of wastewater
  108  service is less than satisfactory. In determining the extent to
  109  which the utility provides wastewater service to its customers
  110  without generating odor, noise, aerosol drift, or lighting that
  111  adversely affects customers, the commission shall consider:
  112         (a) Testimony and evidence provided by customers and the
  113  utility;
  114         (b) Complaints regarding the alleged odor, noise, aerosol
  115  drift, or lighting filed with the Department of Environmental
  116  Protection, a county health department, or the respective local
  117  governmental entity during the past 5 years; and
  118         (c) Complaints regarding the alleged odor, noise, aerosol
  119  drift, or lighting filed with the commission during the past 5
  120  years.
  121         (3)(a) If the commission determines that a utility:
  122         1. Has failed to provide water service that meets the
  123  secondary water quality standards of the department, the
  124  respective water management district, or the local governmental
  125  entity, regarding taste, odor, color, or corrosiveness; or
  126         2. Has generated odor, noise, aerosol drift, or lighting in
  127  providing wastewater service that adversely affects customers,
  128  
  129  the utility shall create an estimate of the costs and benefits
  130  of a plausible solution to each issue identified by the
  131  commission.
  132         (b)The utility shall meet with its customers within a time
  133  prescribed by the commission to discuss the estimated costs and
  134  benefits of and time necessary for implementation of a plausible
  135  solution for each quality of service issue identified and the
  136  utility shall report the results of such meetings to the
  137  commission.
  138         (c)The utility shall inform the commission if:
  139         1.The customers and the utility agree on a solution for
  140  each quality of service issue identified; or
  141         2.The customers and utility prefer a different solution to
  142  at least one of the quality of service issues identified.
  143         (d)The commission may require the utility to implement a
  144  solution that is in the best interest of the customers for each
  145  quality of service issue. The commission may establish the
  146  necessary benchmarks a utility must meet for each solution and
  147  require the utility to report periodically until each solution
  148  is completed.
  149         (4)The commission shall adopt rules to assess and enforce
  150  compliance with this section. The rules must prescribe penalties
  151  for a utility’s failure to adequately resolve each quality of
  152  service issue as required by the commission, which may include
  153  fines as provided in s. 367.161, a reduction of return on equity
  154  of up to 100 basis points, or cancellation of the certificate of
  155  authority under s. 367.072.
  156         Section 3. This act shall take effect July 1, 2014.
  157  
  158  ================= T I T L E  A M E N D M E N T ================
  159  And the title is amended as follows:
  160         Delete everything before the enacting clause
  161  and insert:
  162                        A bill to be entitled                      
  163         An act relating to water and wastewater utilities;
  164         creating s. 367.072, F.S.; providing legislative
  165         intent; authorizing the Florida Public Service
  166         Commission to suspend or revoke a certificate of
  167         authorization upon receipt of a petition; providing
  168         criteria for such petition; authorizing the commission
  169         to adopt rules; creating s. 367.0812, F.S.; requiring
  170         the commission to consider the quality of water or
  171         wastewater service when fixing rates; providing
  172         criteria that the commission must consider in making
  173         its determination; requiring the utility to meet with
  174         its customers to discuss the costs and benefits of
  175         plausible solutions if the commission finds that the
  176         utility has failed to meet certain water or wastewater
  177         quality standards; requiring the commission to adopt
  178         rules; providing an effective date.