Florida Senate - 2014 CS for SB 272 By the Committee on Communications, Energy, and Public Utilities; and Senator Simpson 579-01067-14 2014272c1 1 A bill to be entitled 2 An act relating to water and wastewater utilities; 3 creating s. 367.072, F.S.; providing legislative 4 intent; authorizing the Florida Public Service 5 Commission to suspend or revoke a certificate of 6 authorization upon receipt of a petition; providing 7 criteria for such petition; authorizing the commission 8 to adopt rules; creating s. 367.0812, F.S.; requiring 9 the commission to consider the quality of water or 10 wastewater service when fixing rates; providing 11 criteria that the commission must consider in making 12 its determination; requiring the utility to meet with 13 its customers to discuss the costs and benefits of 14 plausible solutions if the commission finds that the 15 utility has failed to meet certain water or wastewater 16 quality standards; requiring the commission to adopt 17 rules; providing an effective date. 18 19 Be It Enacted by the Legislature of the State of Florida: 20 21 Section 1. Section 367.072, Florida Statutes, is created to 22 read: 23 367.072 Petition to revoke certificate of authorization. 24 The Legislature finds that it is in the public interest that 25 water and wastewater service be of good quality and consistent 26 with the standards set forth in this chapter. The Legislature 27 finds that the customers of a utility are in a position to 28 initially assess the quality of the water or wastewater service 29 provided. Therefore, a utility’s certificate of authorization 30 may be suspended or revoked if its customers file a petition 31 with the commission in accordance with this section. 32 (1) For the purpose of determining whether a utility is 33 providing quality water or wastewater service, a petition must: 34 (a) State with specificity each issue customers have with 35 the water or wastewater service; and 36 (b) Be signed by at least 65 percent of a system’s 37 customers. The term “customer” means an individual whose 38 property is serviced by a single meter or a person whose name 39 appears on the bill for a master meter. A person whose name 40 appears on the bill for a master meter may sign a petition if at 41 least 65 percent of the customers, tenants, or unit owners 42 served by the master meter support the petition, in which case 43 documentation of such support must be included with the 44 petition. 45 (2) Upon receipt, the commission shall review the petition 46 and determine if it is in compliance with this section and 47 whether the issues identified within the petition support a 48 finding that the water or wastewater utility is failing to 49 provide quality water or wastewater service. If the commission 50 finds that there is a reasonable likelihood that the utility is 51 not providing quality water or wastewater service, then it shall 52 submit a copy of the petition to the respective utility. The 53 utility shall submit a response to the commission addressing the 54 issues identified within the petition and explaining whether it 55 is providing quality water or wastewater service using the 56 following criteria: 57 (a) Federal, state, and local primary standards or quality 58 standards pursuant to s. 367.0812; and 59 (b) The relationship between the utility and its customers, 60 including each complaint received regarding service quality, the 61 length of time each customer has been complaining about service, 62 the resolution of each complaint, and the time it has taken to 63 address such complaints. 64 (3) The commission shall evaluate the issues identified 65 within the petition; the utility’s response as to whether it is 66 providing quality water or wastewater service; the rates of the 67 utility in comparison with other utilities of similar size and 68 operational characteristics; and any other factor the commission 69 deems relevant. 70 (4) Notwithstanding s. 367.045 and based upon its 71 evaluation, the commission shall: 72 (a) Dismiss the petition if the decision is supported by 73 competent substantial evidence, in which case the decision is 74 subject to ss. 120.569 and 120.57; 75 (b) Suspend the utility’s certificate and require the 76 utility to take the necessary steps to correct the water or 77 wastewater service issues identified. The commission shall set 78 benchmarks within a timeframe, not to exceed 3 years, and may 79 require the utility to provide interim reports describing its 80 progress in meeting such benchmarks; or 81 (c) Revoke the utility’s certificate, in which case a 82 receiver must be appointed pursuant to s. 367.165 until a sale 83 of the utility system has been approved pursuant to s. 367.071. 84 (5) The commission shall adopt by rule the format of and 85 requirements for a petition and may adopt other rules to 86 administer this section. 87 Section 2. Section 367.0812, Florida Statutes, is created 88 to read: 89 367.0812 Rate fixing; quality of water or wastewater 90 service as criterion.— 91 (1) In fixing rates that are just, reasonable, 92 compensatory, and not unfairly discriminatory, the commission 93 shall consider the extent to which the utility provides water 94 service that meets secondary water quality standards for taste, 95 odor, color, or corrosiveness, as established by the Department 96 of Environmental Protection, the respective water management 97 district, or the local governmental entity. The commission may 98 deny all or part of a rate increase for a utility’s system or 99 part of a system if it determines that the quality of water 100 service is less than satisfactory. In determining whether a 101 utility has satisfied its obligation to provide water service to 102 its customers which meets the standards for taste, odor, color, 103 or corrosiveness, the commission shall consider: 104 (a) Testimony and evidence provided by customers and the 105 utility; 106 (b) The results of past tests required by the Department of 107 Environmental Protection or a county health department which 108 measure the utility’s compliance with the applicable secondary 109 water quality standards; 110 (c) Complaints regarding the applicable secondary water 111 quality standards filed by customers with the commission, the 112 Department of Environmental Protection, the respective water 113 management district, or the respective local governmental entity 114 during the past 5 years; and 115 (d) If the commission deems necessary, the results of any 116 updated test. 117 (2) In fixing just, reasonable, compensatory, and not 118 unfairly discriminatory rates, the commission shall consider the 119 extent to which the utility provides wastewater service to its 120 customers without generating odor, noise, aerosol drift, or 121 lighting that adversely affects customers. The commission may 122 deny all or part of a rate increase for a utility’s system or 123 part of a system if it determines that the quality of wastewater 124 service is less than satisfactory. In determining the extent to 125 which the utility provides wastewater service to its customers 126 without generating odor, noise, aerosol drift, or lighting that 127 adversely affects customers, the commission shall consider: 128 (a) Testimony and evidence provided by customers and the 129 utility; 130 (b) Complaints regarding the alleged odor, noise, aerosol 131 drift, or lighting filed with the Department of Environmental 132 Protection, a county health department, or the respective local 133 governmental entity during the past 5 years; and 134 (c) Complaints regarding the alleged odor, noise, aerosol 135 drift, or lighting filed with the commission during the past 5 136 years. 137 (3)(a) If the commission determines that a utility: 138 1. Has failed to provide water service that meets the 139 secondary water quality standards of the department, the 140 respective water management district, or the local governmental 141 entity, regarding taste, odor, color, or corrosiveness; or 142 2. Has generated odor, noise, aerosol drift, or lighting in 143 providing wastewater service that adversely affects customers, 144 145 the utility shall create an estimate of the costs and benefits 146 of a plausible solution to each issue identified by the 147 commission. 148 (b) The utility shall meet with its customers within a time 149 prescribed by the commission to discuss the estimated costs and 150 benefits of and time necessary for implementation of a plausible 151 solution for each quality of service issue identified and the 152 utility shall report the results of such meetings to the 153 commission. 154 (c) The utility shall inform the commission if: 155 1. The customers and the utility agree on a solution for 156 each quality of service issue identified; or 157 2. The customers and utility prefer a different solution to 158 at least one of the quality of service issues identified. 159 (d) The commission may require the utility to implement a 160 solution that is in the best interest of the customers for each 161 quality of service issue. The commission may establish the 162 necessary benchmarks a utility must meet for each solution and 163 require the utility to report periodically until each solution 164 is completed. 165 (4) The commission shall adopt rules to assess and enforce 166 compliance with this section. The rules must prescribe penalties 167 for a utility’s failure to adequately resolve each quality of 168 service issue as required by the commission, which may include 169 fines as provided in s. 367.161, a reduction of return on equity 170 of up to 100 basis points, or cancellation of the certificate of 171 authority under s. 367.072. 172 Section 3. This act shall take effect July 1, 2014.