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         367.072Petition 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.