Florida Senate - 2014                       CS for CS for SB 272
       
       
        
       By the Committees on Community Affairs; and Communications,
       Energy, and Public Utilities; and Senator Simpson
       
       
       
       
       578-01649-14                                           2014272c2
    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         findings; authorizing the Florida Public Service
    5         Commission to revoke a certificate of authorization
    6         upon receipt of a petition; requiring customers to
    7         file a notice of intent with the commission before
    8         submitting a petition; providing criteria for such
    9         petition; requiring the commission to take certain
   10         steps in response to the petition; prohibiting the
   11         customers from filing a petition within a specified
   12         timeframe under certain circumstances; prohibiting a
   13         utility from filing for a rate case under certain
   14         circumstances; requiring the utility to submit a
   15         response; requiring the commission to adopt rules;
   16         creating s. 367.0812, F.S.; requiring the commission
   17         to consider the quality of water or wastewater service
   18         when fixing rates; providing criteria that the
   19         commission must consider in making its determination;
   20         requiring the utility to meet with its customers to
   21         discuss the costs and benefits of plausible solutions
   22         if the commission finds that the utility has failed to
   23         meet certain water or wastewater quality standards;
   24         requiring that the utility be allowed to recover the
   25         costs of the solutions ordered by the commission;
   26         prohibiting customers from petitioning the commission
   27         to revoke the certificate of authorization of a
   28         utility under certain circumstances; authorizing the
   29         commission to impose penalties on a utility for
   30         certain failures; requiring the commission to adopt
   31         rules; requiring the Department of Environmental
   32         Protection to establish secondary wastewater service
   33         standards regarding the generation of odor, noise,
   34         aerosol drift, and lighting; providing an effective
   35         date.
   36          
   37  Be It Enacted by the Legislature of the State of Florida:
   38  
   39         Section 1. Section 367.072, Florida Statutes, is created to
   40  read:
   41         367.072Petition to revoke certificate of authorization.
   42  The Legislature finds that it is in the public interest that
   43  water and wastewater service be of good quality and consistent
   44  with the standards set forth in this chapter. Therefore, a
   45  utility’s certificate of authorization may be revoked if, after
   46  its customers file a petition in accordance with this section,
   47  the commission finds that revocation is in the best interest of
   48  the customers.
   49         (1) Customers must file a notice of intent with the
   50  commission before filing a petition. Within 10 days after
   51  receipt of a notice of intent, the commission staff shall:
   52         (a) Notify the applicable utility that its customers have
   53  filed a notice of intent; and
   54         (b) Send the customers instructions detailing the required
   55  format and content of the petition and the subsequent process
   56  the commission must follow.
   57         (2)Within 90 days after receipt of such instructions, the
   58  customers must file a petition that, for the purpose of
   59  determining whether a utility is providing satisfactory water
   60  quality or wastewater service, must:
   61         (a)State with specificity each issue that the customers
   62  have with the water quality or wastewater service, each time the
   63  problem was reported to the utility, and how long each issue has
   64  existed; and
   65         (b)Be signed by at least 65 percent of a utility’s
   66  customers within a system. The term “customer” means an
   67  individual who owns or rents property that is serviced by a
   68  single meter or an individual whose name appears on the bill for
   69  a master meter. Only one signature for each service address may
   70  be included on the petition. An individual whose name appears on
   71  the bill for a master meter may sign a petition if at least 65
   72  percent of the heads of the households served by the master
   73  meter, such as tenants or unit owners, support the petition, in
   74  which case documentation of such support must be included with
   75  the petition.
   76         (3) The commission shall review the petition and, within 10
   77  days after receipt, notify the customers whether the petition is
   78  sufficient or whether additional information is required. If
   79  additional information is required, the customers must file a
   80  cured petition within 30 days after receipt of the notification.
   81  If the customers fail to file the petition in accordance with
   82  this subsection, the commission shall dismiss the petition, and
   83  the customers may not file another petition for 1 year after the
   84  date of dismissal.
   85         (4) If the petition is in compliance with this section and
   86  the issues identified within the petition support a reasonable
   87  likelihood that the water or wastewater utility is failing to
   88  provide quality water or wastewater service, a docket shall be
   89  opened. Once opened, the utility may not file for a rate case
   90  until the docket is closed.
   91         (5) A copy of the petition and written notification
   92  regarding the prohibition against filing a rate case while the
   93  docket remains open must be provided to the utility. The utility
   94  shall submit a response to the commission addressing the issues
   95  identified within the petition and explaining whether it is
   96  providing quality water or wastewater service using the
   97  following criteria:
   98         (a)Federal and state primary water and wastewater
   99  standards or secondary water quality or wastewater service
  100  standards provided in s. 367.0812; and
  101         (b)The relationship between the utility and its customers,
  102  including each complaint received regarding service quality, the
  103  length of time each customer has been complaining about service,
  104  the resolution of each complaint, and the time it has taken to
  105  address such complaints.
  106         (6)The commission shall evaluate the issues identified
  107  within the petition, the utility’s response as to whether it is
  108  providing quality water or wastewater service, and any other
  109  factor the commission deems relevant.
  110         (7)Notwithstanding s. 367.045 and based upon its
  111  evaluation, the commission shall:
  112         (a)Dismiss the petition if the decision is supported by
  113  clear and convincing evidence, in which case the decision is
  114  subject to ss. 120.569 and 120.57;
  115         (b)Place the utility’s certificate on probationary status
  116  and require the utility to take the necessary steps to correct
  117  the water quality or wastewater service issues identified. The
  118  commission shall set benchmarks within a timeframe, not to
  119  exceed 3 years, and may require the utility to provide interim
  120  reports describing its progress in meeting such benchmarks. The
  121  commission may extend the timeframe for compliance beyond 3
  122  years if the circumstances that delay the utility, such as
  123  obtaining permits or natural disaster, are not within the
  124  utility’s control; or
  125         (c)Revoke the utility’s certificate of authorization, in
  126  which case a receiver must be appointed pursuant to s. 367.165
  127  until a sale of the utility system has been approved pursuant to
  128  s. 367.071.
  129         (8)The commission shall adopt by rule the format of and
  130  requirements for a petition and may adopt other rules to
  131  administer this section.
  132         Section 2. Section 367.0812, Florida Statutes, is created
  133  to read:
  134         367.0812 Rate fixing; quality of water or wastewater
  135  service as criterion.—
  136         (1) In fixing rates that are just, reasonable,
  137  compensatory, and not unfairly discriminatory, the commission
  138  shall consider the extent to which the utility provides water
  139  service that meets secondary water quality standards for taste,
  140  odor, color, or corrosiveness, as established by the Department
  141  of Environmental Protection. In determining whether a utility
  142  has satisfied its obligation to provide water service to its
  143  customers which meets the standards for taste, odor, color, or
  144  corrosiveness, the commission shall consider:
  145         (a) Testimony and evidence provided by customers and the
  146  utility;
  147         (b) The results of past tests required by the Department of
  148  Environmental Protection which measure the utility’s compliance
  149  with the applicable secondary water quality standards or with a
  150  county health department;
  151         (c) Complaints regarding the applicable secondary water
  152  quality standards filed by customers with the commission or the
  153  Department of Environmental Protection, or the respective local
  154  governmental entity, or a county health department during the
  155  past 5 years; and
  156         (d) If the commission deems necessary, the results of any
  157  updated test.
  158         (2)In fixing just, reasonable, compensatory, and not
  159  unfairly discriminatory rates, the commission shall consider the
  160  extent to which the utility provides wastewater service to its
  161  customers without generating odor, noise, aerosol drift, or
  162  lighting in excess of the standards established by the
  163  Department of Environmental Protection. In determining the
  164  extent to which the utility provides wastewater service to its
  165  customers without generating odor, noise, aerosol drift, or
  166  lighting in excess of the standards by the Department of
  167  Environmental Protection, the commission shall consider:
  168         (a) Testimony and evidence provided by customers and the
  169  utility;
  170         (b) The results of past tests required by the Department of
  171  Environmental Protection which measure the utility’s compliance
  172  with the applicable standards established by the Department of
  173  Environmental Protection; and
  174         (c) Complaints regarding the alleged odor, noise, aerosol
  175  drift, or lighting filed with the Department of Environmental
  176  Protection or the commission, or the respective local
  177  governmental entity, or a county health department during the
  178  past 5 years.
  179         (3)(a) In determining the quality of water or wastewater
  180  service, the commission shall consider a finding by the
  181  department as to whether a utility:
  182         1. Has failed to provide water service that meets the
  183  secondary water quality standards of the department regarding
  184  taste, odor, color, or corrosiveness; or
  185         2. Has generated odor, noise, aerosol drift, or lighting in
  186  providing wastewater service in excess of the standards
  187  established by the Department of Environmental Protection,
  188  
  189  the utility shall create an estimate of the costs and benefits
  190  of a plausible solution to each quality of water or wastewater
  191  service issue identified by the commission.
  192         (b)The utility shall meet with its customers within a time
  193  prescribed by the commission to discuss the estimated costs and
  194  benefits of and time necessary for implementing a plausible
  195  solution for each quality of service issue identified, and the
  196  utility shall report the results of such meeting to the
  197  commission.
  198         (c)The utility shall inform the commission if:
  199         1.The customers and the utility agree on a solution for
  200  each quality of service issue identified, what the solution is,
  201  and the cost of the solution; or
  202         2.The customers and the utility prefer a different
  203  solution to at least one of the quality of service issues
  204  identified and the solution and cost of the solution preferred
  205  by each.
  206         (d)The commission may require the utility to implement a
  207  solution that is in the best interest of the customers for each
  208  quality of service issue. The utility shall be allowed to
  209  recover the costs of the solutions ordered by the commission.
  210  The commission may establish the necessary benchmarks that a
  211  utility must meet for each solution and require the utility to
  212  report periodically until each solution is completed.
  213         (4) Notwithstanding s. 367.072, customers may not petition
  214  the commission to revoke the certificate of authorization of a
  215  utility during the proceedings under this section.
  216         (5) The commission may prescribe penalties for a utility’s
  217  failure to adequately resolve each quality of water or
  218  wastewater service issue as required. Penalties may include
  219  fines as provided in s. 367.161; a reduction of return on equity
  220  of up to 100 basis points; the denial of all or part of a rate
  221  increase for a utility’s system or part of a system if the
  222  commission determines that the water quality is less than
  223  satisfactory, until the water quality is found to be
  224  satisfactory; or cancellation of the certificate of
  225  authorization under s. 367.072.
  226         (6)The commission shall adopt rules to assess and enforce
  227  compliance with this section. The Department of Environmental
  228  Protection shall establish secondary wastewater service
  229  standards regarding the generation of odor, noise, aerosol
  230  drift, and lighting.
  231         Section 3. This act shall take effect October 1, 2014.