Florida Senate - 2015                       CS for CS for SB 288
       
       
        
       By the Committees on Communications, Energy, and Public
       Utilities; and Communications, Energy, and Public Utilities; and
       Senator Latvala
       
       
       
       579-03653-15                                           2015288c2
    1                        A bill to be entitled                      
    2         An act relating to utilities regulation; amending s.
    3         350.01, F.S.; providing term limits for commissioners
    4         appointed after a specified date; requiring the
    5         Florida Public Service Commission to hold public
    6         customer service meetings in certain service
    7         territories; requiring that specified meetings,
    8         workshops, hearings, or proceedings of the commission
    9         be streamed live and recorded copies be made available
   10         on the commission’s web page; amending s. 350.031,
   11         F.S.; requiring a person who lobbies a member of the
   12         Florida Public Service Commission Nominating Council
   13         to register as a lobbyist; reenacting and amending s.
   14         350.041, F.S.; requiring public service commissioners
   15         to annually complete ethics training; providing
   16         applicability; amending s. 350.042, F.S.; revising the
   17         prohibition against ex parte communication to apply to
   18         any matter that a commissioner knows or reasonably
   19         expects will be filed within a certain timeframe;
   20         providing legislative intent; defining terms; applying
   21         the prohibition against ex parte communications to
   22         specified meetings; requiring the Governor to remove
   23         from office any commissioner found to have willfully
   24         and knowingly violated the ex parte communications
   25         statute; amending s. 350.0611, F.S.; authorizing the
   26         Public Counsel to be a party to settlement agreements
   27         in any proceeding before the commission in which he or
   28         she has participated as a party; prohibiting a
   29         settlement agreement to which the Public Counsel is
   30         not a party from being submitted to or approved by the
   31         Florida Public Service Commission; amending s. 366.05,
   32         F.S.; limiting the use of tiered rates in conjunction
   33         with extended billing periods; limiting deposit
   34         amounts; requiring a utility to notify each customer
   35         if it has more than one rate for any customer class;
   36         requiring the utility to provide good faith assistance
   37         to the customer in determining the best rate;
   38         assigning responsibility to the customer for the rate
   39         selection; requiring that the commission approve new
   40         tariffs and certain changes to existing tariffs;
   41         amending s. 366.82, F.S.; requiring that money
   42         received by a utility for the development of demand
   43         side renewable energy systems be used solely for that
   44         purpose; creating s. 366.95, F.S.; defining terms;
   45         authorizing electric utilities to petition the Florida
   46         Public Service Commission for certain financing orders
   47         that authorize the issuance of nuclear asset-recovery
   48         bonds, the imposition, collection, and periodic
   49         adjustments of nuclear asset-recovery charges, and the
   50         creation of nuclear asset-recovery property; providing
   51         requirements; providing exceptions to the commission’s
   52         jurisdictions as it relates to financing orders;
   53         specifying duties of electric utilities that have
   54         obtained a financing order and issued nuclear asset
   55         recovery bonds; specifying properties, requirements
   56         and limitations relating to nuclear asset-recovery
   57         property; providing requirements as to the sufficiency
   58         of the description of certain nuclear asset-recovery
   59         property; subjecting financing statements to the
   60         Uniform Commercial Code; providing an exception;
   61         specifying that nuclear asset-recovery bonds are not
   62         public debt; specifying certain state pledges relating
   63         to bondholders; declaring certain entities as not
   64         electric utilities under certain circumstances;
   65         specifying effect of certain provisions in situations
   66         of conflict; providing for protecting validity of
   67         certain bonds under certain circumstances; providing
   68         penalties; reenacting ss. 403.537 and 403.9422, F.S.,
   69         relating to determination of need for electric and
   70         natural gas transmission lines, respectively;
   71         reenacting s. 350.043, F.S., relating to the
   72         enforcement and interpretation of laws relating to the
   73         commission; providing an effective date.
   74          
   75  Be It Enacted by the Legislature of the State of Florida:
   76  
   77         Section 1. Subsection (3) of section 350.01, Florida
   78  Statutes, is amended, and subsections (8), (9), and (10) are
   79  added to that section, to read:
   80         350.01 Florida Public Service Commission; terms of
   81  commissioners; vacancies; election and duties of chair; quorum;
   82  proceedings.—
   83         (3) Any person serving on the commission who seeks to be
   84  appointed or reappointed shall file with the nominating council
   85  no later than June 1 prior to the year in which his or her term
   86  expires a statement that he or she desires to serve an
   87  additional term. A commissioner appointed after July 1, 2015,
   88  may not serve more than three consecutive terms.
   89         (8) At least annually, the commission shall hold a customer
   90  service meeting, open to the public, in the service territory of
   91  each public utility regulated by the commission which supplies
   92  electricity.
   93         (9) The commission shall hold a customer service meeting,
   94  open to the public, in the service territory of each water or
   95  wastewater utility that is subject to regulation under chapter
   96  367, upon receipt of a written request signed by at least 10
   97  percent of the customers of that utility. Such meeting shall be
   98  scheduled within a reasonable time after receipt of the request.
   99         (10)Each meeting, including an internal affairs meeting,
  100  workshop, hearing, or proceeding that is attended by two or more
  101  commissioners and each meeting, workshop, hearing, or proceeding
  102  at which a decision is made which concerns the rights or
  103  obligations of any person, shall be streamed live on the
  104  Internet, and a recorded copy of such meeting, workshop,
  105  hearing, or proceeding must be made available on the
  106  commission’s web page.
  107         Section 2. Subsection (10) is added to section 350.031,
  108  Florida Statutes, to read:
  109         350.031 Florida Public Service Commission Nominating
  110  Council.—
  111         (10) In keeping with the purpose of the council, which is
  112  to select nominees to be appointed to an arm of the legislative
  113  branch of government, a person who lobbies a member of the
  114  council, legislator or nonlegislator, must register as a
  115  lobbyist pursuant to s. 11.045 and comply with the requirements
  116  of that section.
  117         Section 3. Present subsection (3) of section 350.041,
  118  Florida Statutes, is reenacted and amended, and a new subsection
  119  (3) is added to that section, to read:
  120         350.041 Commissioners; standards of conduct.—
  121         (3) ETHICS TRAINING.—Beginning January 1, 2016, a
  122  commissioner must annually complete 4 hours of ethics training
  123  that addresses, at a minimum, s. 8, Art. II of the State
  124  Constitution, the Code of Ethics for Public Officers and
  125  Employees, and the public records and public meetings laws of
  126  this state. This requirement may be satisfied by completion of a
  127  continuing legal education class or other continuing
  128  professional education class, seminar, or presentation, if the
  129  required subjects are covered.
  130         (4) COMMISSION ON ETHICS.—The Commission on Ethics shall
  131  accept and investigate any alleged violations of this section
  132  pursuant to the procedures contained in ss. 112.322-112.3241.
  133  The Commission on Ethics shall provide the Governor and the
  134  Florida Public Service Commission Nominating Council with a
  135  report of its findings and recommendations. The Governor is
  136  authorized to enforce the findings and recommendations of the
  137  Commission on Ethics, pursuant to part III of chapter 112. A
  138  public service commissioner or a member of the Florida Public
  139  Service Commission Nominating Council may request an advisory
  140  opinion from the Commission on Ethics, pursuant to s.
  141  112.322(3)(a), regarding the standards of conduct or
  142  prohibitions set forth in this section and ss. 350.031, 350.04,
  143  and 350.042.
  144         Section 4. Subsections (1) and (3) and paragraph (b) of
  145  subsection (7) of section 350.042, Florida Statutes, are amended
  146  to read:
  147         350.042 Ex parte communications.—
  148         (1) A commissioner should accord to every person who is
  149  legally interested in a proceeding, or the person’s lawyer, full
  150  right to be heard according to law, and, except as authorized by
  151  law, shall neither initiate nor consider ex parte communications
  152  concerning the merits, threat, or offer of reward in any
  153  proceeding under s. 120.569 or s. 120.57 which is currently
  154  pending before the commission or which he or she knows or
  155  reasonably expects will be filed with the commission within 180
  156  days after the date of any such communication, other than a
  157  proceeding under s. 120.54 or s. 120.565, workshops, or internal
  158  affairs meetings. An No individual may not shall discuss ex
  159  parte with a commissioner the merits of any issue that he or she
  160  knows will be filed with the commission within 180 90 days. The
  161  provisions of This subsection does shall not apply to commission
  162  staff.
  163         (3)(a) The Legislature finds that it is important to have
  164  commissioners who are educated and informed on regulatory
  165  policies and developments in science, technology, business
  166  management, finance, law, and public policy which are associated
  167  with the industries that the commissioners regulate, and the
  168  Legislature also finds that it is in the public interest for
  169  commissioners to become educated and informed on these matters
  170  through active participation in meetings that are scheduled by
  171  the sponsoring organization, such as sessions, programs, or
  172  conferences, which are duly noticed and open to the public.
  173         (b) As used in this subsection, the term “active
  174  participation” or the term “participating in” includes, but is
  175  not limited to, attending or speaking at educational sessions,
  176  participating in organization governance by attending meetings,
  177  serving on committees, or in leadership positions, participating
  178  in panel discussions, and attending meals and receptions
  179  associated with such events that are open to all attendees.
  180         (c) The prohibition in subsection (1) remains in effect at
  181  all times at such meetings wherever located. While participating
  182  in such meetings, a commissioner shall:
  183         1. Refrain from commenting on or discussing the subject
  184  matter of any proceeding under s. 120.569 or s. 120.57 which is
  185  currently pending before the commission or which he or she knows
  186  or reasonably expects will be filed with the commission within
  187  180 days after the meeting; and
  188         2. Use reasonable care to ensure that the content of the
  189  educational session or other session in which the commissioner
  190  participates is not designed to address or create a forum to
  191  influence the commissioner on the subject matter of any
  192  proceeding under s. 120.569 or s. 120.57 which is currently
  193  pending before the commission or which he or she knows or
  194  reasonably expects will be filed with the commission within 180
  195  days after the meeting This section shall not apply to oral
  196  communications or discussions in scheduled and noticed open
  197  public meetings of educational programs or of a conference or
  198  other meeting of an association of regulatory agencies.
  199         (7)
  200         (b) If the Commission on Ethics finds that there has been a
  201  violation of this section by a public service commissioner, it
  202  shall provide the Governor and the Florida Public Service
  203  Commission Nominating Council with a report of its findings and
  204  recommendations. The Governor shall remove from office a
  205  commissioner who willfully and knowingly violates this section
  206  and is authorized to enforce the findings and recommendations of
  207  the Commission on Ethics, pursuant to part III of chapter 112.
  208         Section 5. Section 350.0611, Florida Statutes, is amended
  209  to read:
  210         350.0611 Public Counsel; duties and powers.—It shall be the
  211  duty of the Public Counsel to provide legal representation for
  212  the people of the state in proceedings before the commission and
  213  in proceedings before counties pursuant to s. 367.171(8). The
  214  Public Counsel shall have such powers as are necessary to carry
  215  out the duties of his or her office, including, but not limited
  216  to, the following specific powers:
  217         (1) To recommend to the commission or the counties, by
  218  petition, the commencement of any proceeding or action or to
  219  appear, in the name of the state or its citizens, in any
  220  proceeding or action before the commission or the counties and
  221  urge therein any position which he or she deems to be in the
  222  public interest, whether consistent or inconsistent with
  223  positions previously adopted by the commission or the counties,
  224  and utilize therein all forms of discovery available to
  225  attorneys in civil actions generally, subject to protective
  226  orders of the commission or the counties which shall be
  227  reviewable by summary procedure in the circuit courts of this
  228  state;
  229         (2) To have access to and use of all files, records, and
  230  data of the commission or the counties available to any other
  231  attorney representing parties in a proceeding before the
  232  commission or the counties;
  233         (3) In any proceeding before the commission in which he or
  234  she has participated as a party, to be a party to a settlement
  235  agreement. If he or she is not a party to the settlement
  236  agreement, it may not be submitted to or approved by the
  237  commission;
  238         (4)(3) In any proceeding in which he or she has
  239  participated as a party, to seek review of any determination,
  240  finding, or order of the commission or the counties, or of any
  241  hearing examiner designated by the commission or the counties,
  242  in the name of the state or its citizens;
  243         (5)(4) To prepare and issue reports, recommendations, and
  244  proposed orders to the commission, the Governor, and the
  245  Legislature on any matter or subject within the jurisdiction of
  246  the commission, and to make such recommendations as he or she
  247  deems appropriate for legislation relative to commission
  248  procedures, rules, jurisdiction, personnel, and functions; and
  249         (6)(5) To appear before other state agencies, federal
  250  agencies, and state and federal courts in connection with
  251  matters under the jurisdiction of the commission, in the name of
  252  the state or its citizens.
  253         Section 6. Subsection (1) of section 366.05, Florida
  254  Statutes, is amended to read:
  255         366.05 Powers.—
  256         (1)(a) In the exercise of such jurisdiction, the commission
  257  shall have power to prescribe fair and reasonable rates and
  258  charges, classifications, standards of quality and measurements,
  259  including the ability to adopt construction standards that
  260  exceed the National Electrical Safety Code, for purposes of
  261  ensuring the reliable provision of service, and service rules
  262  and regulations to be observed by each public utility; to
  263  require repairs, improvements, additions, replacements, and
  264  extensions to the plant and equipment of any public utility when
  265  reasonably necessary to promote the convenience and welfare of
  266  the public and secure adequate service or facilities for those
  267  reasonably entitled thereto; to employ and fix the compensation
  268  for such examiners and technical, legal, and clerical employees
  269  as it deems necessary to carry out the provisions of this
  270  chapter; and to adopt rules pursuant to ss. 120.536(1) and
  271  120.54 to implement and enforce the provisions of this chapter.
  272         (b) If the commission authorizes a public utility to charge
  273  tiered rates based upon levels of usage and to vary the billing
  274  period, the utility may not charge a customer a higher rate
  275  because of an increase in usage attributable to an extension of
  276  the billing period.
  277         (c) Notwithstanding any commission rule to the contrary, a
  278  utility may not charge or receive a deposit in excess of the
  279  amounts specified in subparagraphs 1. and 2.
  280         1. For an existing customer, the total deposit cannot
  281  exceed the total charges for 2 months of average actual usage,
  282  calculated by adding the monthly charges from the 12-month
  283  period immediately before the date any change in the deposit
  284  amount is sought, dividing this total by 12, and multiplying the
  285  result by 2.
  286         2.For a new customer, the amount may not exceed 2 months
  287  of projected charges, calculated using the process specified in
  288  subparagraph 1. Once a new customer has had continuous service
  289  for a 12-month period, the amount of the deposit shall be
  290  recalculated, using actual usage data. Any difference between
  291  the projected and actual amounts must be resolved by the
  292  customer paying any additional amount due or the utility
  293  returning any overcharge.
  294         (d) If a utility has more than one rate for any customer
  295  class, it must notify each customer in that class of the
  296  available rates and explain how the rate is charged to the
  297  customer. If a customer contacts the utility seeking assistance
  298  in selecting the most advantageous rate, the utility must
  299  provide good faith assistance to the customer. The customer is
  300  responsible for charges for service calculated under the
  301  selected rate.
  302         (e) New tariffs and changes to an existing tariff, other
  303  than an administrative change that does not substantially change
  304  the meaning or operation of the tariff, must be approved by vote
  305  of the commission.
  306         Section 7. Subsection (2) of section 366.82, Florida
  307  Statutes, is amended to read:
  308         366.82 Definition; goals; plans; programs; annual reports;
  309  energy audits.—
  310         (2) The commission shall adopt appropriate goals for
  311  increasing the efficiency of energy consumption and increasing
  312  the development of demand-side renewable energy systems,
  313  specifically including goals designed to increase the
  314  conservation of expensive resources, such as petroleum fuels, to
  315  reduce and control the growth rates of electric consumption, to
  316  reduce the growth rates of weather-sensitive peak demand, and to
  317  encourage development of demand-side renewable energy resources.
  318  The commission may allow efficiency investments across
  319  generation, transmission, and distribution as well as
  320  efficiencies within the user base. Money received by a utility
  321  for implementation of measures to encourage development of
  322  demand-side renewable energy systems shall be used solely for
  323  such purpose.
  324         Section 8. Section 366.95, Florida Statutes, is created to
  325  read:
  326         366.95 Financing for certain nuclear generating asset
  327  retirement or abandonment costs.—
  328         (1) DEFINITIONS.—As used in this section, the term:
  329         (a) “Ancillary agreement” means any bond, insurance policy,
  330  letter of credit, reserve account, surety bond, interest rate
  331  lock or swap arrangement, hedging arrangement, liquidity or
  332  credit support arrangement, or other financial arrangement
  333  entered into in connection with nuclear asset-recovery bonds.
  334         (b) “Assignee” means any entity, including, but not limited
  335  to, a corporation, limited liability company, partnership or
  336  limited partnership, public authority, trust, financing entity,
  337  or other legally recognized entity to which an electric utility
  338  assigns, sells, or transfers, other than as security, all or a
  339  portion of its interest in or right to nuclear asset-recovery
  340  property. The term also includes any entity to which an assignee
  341  assigns, sells, or transfers, other than as security, its
  342  interest in or right to nuclear asset-recovery property.
  343         (c) “Commission” means the Florida Public Service
  344  Commission.
  345         (d) “Electric utility” or “utility” has the same meaning as
  346  in s. 366.8255.
  347         (e) “Financing costs” means:
  348         1. Interest and acquisition, defeasance, or redemption
  349  premiums that are payable on nuclear asset-recovery bonds;
  350         2. Any payment required under an ancillary agreement and
  351  any amount required to fund or replenish a reserve account or
  352  other accounts established under the terms of any indenture,
  353  ancillary agreement, or other financing documents pertaining to
  354  nuclear asset-recovery bonds;
  355         3. Any other cost related to issuing, supporting, repaying,
  356  refunding, and servicing nuclear asset-recovery bonds,
  357  including, but not limited to, servicing fees, accounting and
  358  auditing fees, trustee fees, legal fees, consulting fees,
  359  financial advisor fees, administrative fees, placement and
  360  underwriting fees, capitalized interest, rating agency fees,
  361  stock exchange listing and compliance fees, security
  362  registration fees, filing fees, information technology
  363  programming costs, and any other costs necessary to otherwise
  364  ensure the timely payment of nuclear asset-recovery bonds or
  365  other amounts or charges payable in connection with the bonds,
  366  including costs related to obtaining the financing order;
  367         4. Any taxes and license fees imposed on the revenues
  368  generated from the collection of the nuclear asset-recovery
  369  charge;
  370         5. Any state and local taxes, franchise, gross receipts,
  371  and other taxes or similar charges, including, but not limited
  372  to, regulatory assessment fees, in any such case whether paid,
  373  payable, or accrued; and
  374         6. Any costs that are incurred by the commission for any
  375  outside consultants or counsel pursuant to subparagraph (2)(c)2.
  376         (f) “Financing order” means an order that authorizes the
  377  issuance of nuclear asset-recovery bonds; the imposition,
  378  collection, and periodic adjustments of the nuclear asset
  379  recovery charge; and the creation of nuclear asset-recovery
  380  property.
  381         (g) “Financing party” means any and all of the following:
  382  holders of nuclear asset-recovery bonds and trustees, collateral
  383  agents, any party under an ancillary agreement, or any other
  384  person acting for the benefit of holders of nuclear asset
  385  recovery bonds.
  386         (h) “Financing statement” has the same meaning as in Art. 9
  387  of the Uniform Commercial Code.
  388         (i) “Nuclear asset-recovery bonds” means bonds, debentures,
  389  notes, certificates of participation, certificates of beneficial
  390  interest, certificates of ownership, or other evidences of
  391  indebtedness or ownership that are issued by an electric utility
  392  or an assignee pursuant to a financing order, the proceeds of
  393  which are used directly or indirectly to recover, finance, or
  394  refinance commission-approved nuclear asset-recovery costs and
  395  financing costs, and that are secured by or payable from nuclear
  396  asset-recovery property. If certificates of participation or
  397  ownership are issued, references in this section to principal,
  398  interest, or premium shall be construed to refer to comparable
  399  amounts under those certificates.
  400         (j) “Nuclear asset-recovery charge” means the amounts
  401  authorized by the commission to repay, finance, or refinance
  402  nuclear asset-recovery costs and financing costs. If determined
  403  appropriate by the commission and provided for in a financing
  404  order, such amounts are to be imposed on and be a part of all
  405  customer bills and be collected by an electric utility or its
  406  successors or assignees, or a collection agent, in full through
  407  a nonbypassable charge that is separate and apart from the
  408  electric utility’s base rates, which charge shall be paid by all
  409  existing or future customers receiving transmission or
  410  distribution service from the electric utility or its successors
  411  or assignees under commission-approved rate schedules or under
  412  special contracts, even if a customer elects to purchase
  413  electricity from an alternative electricity supplier following a
  414  fundamental change in regulation of public utilities in this
  415  state.
  416         (k) “Nuclear asset-recovery costs” means:
  417         1. At the option of and upon petition by the electric
  418  utility, and as approved by the commission pursuant to sub
  419  subparagraph (2)(c)1.b., pretax costs that an electric utility
  420  has incurred or expects to incur which are caused by, associated
  421  with, or remain as a result of the early retirement or
  422  abandonment of a nuclear generating asset unit that generated
  423  electricity and is located in this state where such early
  424  retirement or abandonment is deemed to be reasonable and prudent
  425  by the commission through a final order approving a settlement
  426  or other final order issued by the commission before July 1,
  427  2017, and where the pretax costs to be securitized exceed $750
  428  million at the time of the filing of the petition. Costs
  429  eligible or claimed for recovery pursuant to s. 366.93 are not
  430  eligible for securitization under this section unless they were
  431  in the electric utility’s rate base and were included in base
  432  rates before retirement or abandonment.
  433         2. Such pretax costs, where determined appropriate by the
  434  commission, include, but are not limited to, the capitalized
  435  cost of the retired or abandoned nuclear generating asset unit,
  436  other applicable capital and operating costs, accrued carrying
  437  charges, deferred expenses, reductions for applicable insurance
  438  and salvage proceeds and previously stipulated write-downs or
  439  write-offs, if any, and the costs of retiring any existing
  440  indebtedness, fees, costs, and expenses to modify existing debt
  441  agreements or for waivers or consents related to existing debt
  442  agreements.
  443         (l) “Nuclear asset-recovery property” means:
  444         1. All rights and interests of an electric utility or
  445  successor or assignee of the electric utility under a financing
  446  order, including the right to impose, bill, collect, and receive
  447  nuclear asset-recovery charges authorized under the financing
  448  order and to obtain periodic adjustments to such charges as
  449  provided in the financing order; or
  450         2. All revenues, collections, claims, rights to payments,
  451  payments, money, or proceeds arising from the rights and
  452  interests specified in subparagraph 1., regardless of whether
  453  such revenues, collections, claims, rights to payment, payments,
  454  money, or proceeds are imposed, billed, received, collected, or
  455  maintained together with or commingled with other revenues,
  456  collections, rights to payment, payments, money, or proceeds.
  457         (m) “Pledgee” means a financing party to which an electric
  458  utility or its successors or assignees mortgages, negotiates,
  459  hypothecates, pledges, or creates a security interest or lien on
  460  all or any portion of its interest in or right to nuclear asset
  461  recovery property.
  462         (n) “Uniform Commercial Code” has the same meaning as in
  463  chapters 670-680.
  464         (2) FINANCING ORDERS.—
  465         (a) An electric utility may petition the commission for a
  466  financing order. For each petition, the electric utility shall:
  467         1. Describe the nuclear asset-recovery costs;
  468         2. Indicate whether the utility proposes to finance all or
  469  a portion of the nuclear asset-recovery costs using nuclear
  470  asset-recovery bonds. If the utility proposes to finance a
  471  portion of such costs, the utility must identify which specific
  472  portion in the petition;
  473         3. Estimate the financing costs related to the nuclear
  474  asset-recovery bonds;
  475         4. Estimate the nuclear asset-recovery charges necessary to
  476  recover the nuclear asset-recovery costs and financing costs and
  477  the period for recovery of such costs;
  478         5. Estimate any projected cost savings, based on current
  479  market conditions, or demonstrate how the issuance of nuclear
  480  asset-recovery bonds and the imposition of nuclear asset
  481  recovery charges would avoid or significantly mitigate rate
  482  impacts to customers as compared with the traditional method of
  483  financing and recovering nuclear asset-recovery costs from
  484  customers;
  485         6. Demonstrate that securitization has a significant
  486  likelihood of resulting in lower overall costs or would avoid or
  487  significantly mitigate rate impacts compared to traditional
  488  method of cost recovery; and
  489         7. File direct testimony supporting the petition.
  490         (b) If an electric utility is subject to a settlement
  491  agreement that governs the type and amount of principal costs
  492  that could be included in nuclear asset-recovery costs, the
  493  electric utility must file a petition, or have filed a petition,
  494  with the commission for review and approval of those principal
  495  costs no later than 60 days before filing a petition for a
  496  financing order pursuant to this section. The commission may not
  497  authorize any such principal costs to be included or excluded,
  498  as applicable, as nuclear asset-recovery costs if such inclusion
  499  or exclusion, as applicable, of those costs would otherwise be
  500  precluded by such electric utility’s settlement agreement.
  501         (c)1. Proceedings on a petition submitted pursuant to
  502  paragraph (a) begin with the petition by an electric utility,
  503  filed subject to the timeframe specified in paragraph (b), if
  504  applicable, and shall be disposed of in accordance with chapter
  505  120 and applicable rules, except that this section, to the
  506  extent applicable, controls.
  507         a. Within 7 days after the filing of a petition, the
  508  commission shall publish a case schedule, which must place the
  509  matter before the commission on an agenda that permits a
  510  commission decision no later than 120 days after the date the
  511  petition is filed.
  512         b. No later than 135 days after the date the petition is
  513  filed, the commission shall issue a financing order or an order
  514  rejecting the petition. A party to the commission proceeding may
  515  petition the commission for reconsideration of the financing
  516  order within 5 days after the date of its issuance. The
  517  commission shall issue a financing order authorizing financing
  518  of reasonable and prudent nuclear asset-recovery costs and
  519  financing costs if the commission finds that the issuance of the
  520  nuclear asset-recovery bonds and the imposition of nuclear
  521  asset-recovery charges authorized by the financing order have a
  522  significant likelihood of resulting in lower overall costs or
  523  would avoid or significantly mitigate rate impacts to customers
  524  as compared with the traditional method of financing and
  525  recovering nuclear asset-recovery costs. Any determination of
  526  whether nuclear asset-recovery costs are reasonable and prudent
  527  shall be made with reference to the general public interest and
  528  in accordance with paragraph (b), if applicable.
  529         2. In a financing order issued to an electric utility, the
  530  commission shall:
  531         a. Except as provided in sub-subparagraph d. and in
  532  subparagraph 4., specify the amount of nuclear asset-recovery
  533  costs to be financed using nuclear asset-recovery bonds, taking
  534  into consideration, to the extent the commission deems
  535  appropriate, any other methods used to recover these costs. The
  536  commission shall describe and estimate the amount of financing
  537  costs which may be recovered through nuclear asset-recovery
  538  charges and specify the period over which such costs may be
  539  recovered. Any such determination as to the overall time period
  540  for cost recovery must be consistent with a settlement
  541  agreement, if any, as referenced in paragraph (b);
  542         b. Determine if the proposed structuring, expected pricing,
  543  and financing costs of the nuclear asset-recovery bonds have a
  544  significant likelihood of resulting in lower overall costs or
  545  would avoid or significantly mitigate rate impacts to customers
  546  as compared with the traditional method of financing and
  547  recovering nuclear asset-recovery costs. A financing order must
  548  provide detailed findings of fact addressing cost-effectiveness
  549  and associated rate impacts upon retail customers and retail
  550  customer classes;
  551         c. Require, for the period specified pursuant to sub
  552  subparagraph a., that the imposition and collection of nuclear
  553  asset-recovery charges authorized under a financing order be
  554  nonbypassable and paid by all existing and future customers
  555  receiving transmission or distribution service from the electric
  556  utility or its successors or assignees under commission-approved
  557  rate schedules or under special contracts, even if a customer
  558  elects to purchase electricity from an alternative electric
  559  supplier following a fundamental change in regulation of public
  560  utilities in this state;
  561         d. Include a formula-based true-up mechanism for making
  562  expeditious periodic adjustments in the nuclear asset-recovery
  563  charges that customers are required to pay pursuant to the
  564  financing order and for making any adjustments that are
  565  necessary to correct for any overcollection or undercollection
  566  of the charges or to otherwise ensure the timely payment of
  567  nuclear asset-recovery bonds and financing costs and other
  568  required amounts and charges payable in connection with the
  569  nuclear asset-recovery bonds;
  570         e.Specify the nuclear asset-recovery property that is, or
  571  shall be, created in favor of an electric utility or its
  572  successors or assignees and that shall be used to pay or secure
  573  nuclear asset-recovery bonds and all financing costs;
  574         f. Specify the degree of flexibility to be afforded to the
  575  electric utility in establishing the terms and conditions of the
  576  nuclear asset-recovery bonds, including, but not limited to,
  577  repayment schedules, expected interest rates, and other
  578  financing costs consistent with sub-subparagraphs a.-e.;
  579         g. Require nuclear asset-recovery charges to be allocated
  580  to the customer classes using the criteria set out in s.
  581  366.06(1), in the manner in which these costs or their
  582  equivalent was allocated in the cost-of-service study that was
  583  approved in connection with the electric utility’s last rate
  584  case and that is in effect during the nuclear asset-recovery
  585  charge annual billing period. If the electric utility’s last
  586  rate case was resolved by a settlement agreement, the cost-of
  587  service methodology that was adopted in the settlement agreement
  588  in that case and that is in effect during the nuclear asset
  589  recovery charge annual billing period shall be used;
  590         h. Require, after the final terms of an issuance of nuclear
  591  asset-recovery bonds have been established and before the
  592  issuance of nuclear asset-recovery bonds, that the electric
  593  utility determine the resulting initial nuclear asset-recovery
  594  charge in accordance with the financing order and that such
  595  initial nuclear asset-recovery charge be final and effective
  596  upon the issuance of such nuclear asset-recovery bonds without
  597  further commission action so long as the nuclear asset-recovery
  598  charge is consistent with the financing order; and
  599         i. Include any other conditions that the commission
  600  considers appropriate and that are authorized by this section.
  601  
  602  In performing the responsibilities of this subparagraph and
  603  subparagraph 5., the commission may engage outside consultants
  604  or counsel. All expenses associated with such services shall be
  605  included as part of financing costs and included in the nuclear
  606  asset-recovery charge.
  607         3. A financing order issued to an electric utility may
  608  provide that creation of the electric utility’s nuclear asset
  609  recovery property pursuant to sub-subparagraph 2.e. is
  610  conditioned upon, and simultaneous with, the sale or other
  611  transfer of the nuclear asset-recovery property to an assignee
  612  and the pledge of the nuclear asset-recovery property to secure
  613  nuclear asset-recovery bonds.
  614         4. If the commission issues a financing order and nuclear
  615  asset-recovery bonds are issued, the electric utility or
  616  assignee must file with the commission at least biannually a
  617  petition or a letter applying the formula-based true-up
  618  mechanism pursuant to sub-subparagraph 2.d. and, based on
  619  estimates of consumption for each rate class and other
  620  mathematical factors, requesting administrative approval to make
  621  the adjustments described in sub-subparagraph 2.d. The review of
  622  such a request is limited to determining whether there is any
  623  mathematical error in the application of the formula-based
  624  mechanism relating to the amount of any overcollection or
  625  undercollection of nuclear asset-recovery charges and the amount
  626  of any adjustment. Such adjustments shall ensure the recovery of
  627  revenues sufficient to provide for the timely payment of
  628  principal, interest, acquisition, defeasance, financing costs,
  629  or redemption premium and other fees, costs, and charges
  630  relating to nuclear asset-recovery bonds approved under the
  631  financing order. Within 60 days after receiving an electric
  632  utility’s request pursuant to this paragraph, the commission
  633  must approve the request or inform the electric utility of any
  634  mathematical errors in its calculation. If the commission
  635  informs the utility of mathematical errors in its calculation,
  636  the utility may correct its error and refile its request. The
  637  timeframes previously described in this paragraph apply to a
  638  refiled request.
  639         5. Within 120 days after the issuance of nuclear asset
  640  recovery bonds, the electric utility shall file with the
  641  commission information on the actual costs of the nuclear asset
  642  recovery bonds issuance. The commission shall review, on a
  643  reasonably comparable basis, such information to determine if
  644  such costs incurred in the issuance of the bonds resulted in the
  645  lowest overall costs that were reasonably consistent with market
  646  conditions at the time of the issuance and the terms of the
  647  financing order. The commission may disallow all incremental
  648  issuance costs in excess of the lowest overall costs by
  649  requiring the electric utility to make a credit to the capacity
  650  cost recovery clause in an amount equal to the excess of actual
  651  issuance costs incurred, and paid for out of nuclear asset
  652  recovery bonds proceeds, and the lowest overall issuance costs
  653  as determined by the commission. The commission may not make
  654  adjustments to the nuclear asset-recovery charges for any such
  655  excess issuance costs.
  656         6. Subsequent to the transfer of nuclear asset-recovery
  657  property to an assignee or the issuance of nuclear asset
  658  recovery bonds authorized thereby, whichever is earlier, a
  659  financing order is irrevocable and, except as provided in
  660  subparagraph 4. and paragraph (d), the commission may not amend,
  661  modify, or terminate the financing order by any subsequent
  662  action or reduce, impair, postpone, terminate, or otherwise
  663  adjust nuclear asset-recovery charges approved in the financing
  664  order. After the issuance of a financing order, the electric
  665  utility retains sole discretion regarding whether to assign,
  666  sell, or otherwise transfer nuclear asset-recovery property or
  667  to cause nuclear asset-recovery bonds to be issued, including
  668  the right to defer or postpone such assignment, sale, transfer,
  669  or issuance. If the electric utility decides not to cause
  670  nuclear asset-recovery bonds to be issued, the electric utility
  671  may not recover financing costs as defined in paragraph (1)(e)
  672  from customers.
  673         (d) At the request of an electric utility, the commission
  674  may commence a proceeding and issue a subsequent financing order
  675  that provides for refinancing, retiring, or refunding nuclear
  676  asset-recovery bonds issued pursuant to the original financing
  677  order if the commission finds that the subsequent financing
  678  order satisfies all of the criteria specified in paragraph (c).
  679  Effective upon retirement of the refunded nuclear asset-recovery
  680  bonds and the issuance of new nuclear asset-recovery bonds, the
  681  commission shall adjust the related nuclear asset-recovery
  682  charges accordingly.
  683         (e) Within 30 days after the commission issues a financing
  684  order or a decision denying a request for reconsideration or, if
  685  the request for reconsideration is granted, within 30 days after
  686  the commission issues its decision on reconsideration, an
  687  adversely affected party may petition for judicial review in the
  688  Florida Supreme Court. The petition for review must be served
  689  upon the executive director of the commission personally or by
  690  service at the office of the commission. Review on appeal shall
  691  be based solely on the record before the commission and briefs
  692  to the court and is limited to determining whether the financing
  693  order, or the order on reconsideration, conforms to the state
  694  constitution and laws of this state and federal law and is
  695  within the authority of the commission under this section.
  696  Inasmuch as delay in the determination of the appeal of a
  697  financing order will delay the issuance of nuclear asset
  698  recovery bonds, thereby diminishing savings to customers which
  699  might be achieved if such nuclear asset-recovery bonds were
  700  issued as contemplated by a financing order, the Florida Supreme
  701  Court shall proceed to hear and determine the action as
  702  expeditiously as practicable and give the action precedence over
  703  other matters not accorded similar precedence by law.
  704         (f)1. A financing order remains in effect and all such
  705  nuclear asset-recovery property continues to exist until nuclear
  706  asset-recovery bonds issued pursuant to the financing order have
  707  been paid in full and all commission-approved financing costs of
  708  such nuclear asset-recovery bonds have been recovered in full.
  709         2. A financing order issued to an electric utility remains
  710  in effect and unabated notwithstanding the reorganization,
  711  bankruptcy, or other insolvency proceedings, or merger, or sale
  712  of the electric utility or its successors or assignees.
  713         (3) EXCEPTIONS TO COMMISSION JURISDICTION.—
  714         (a) If the commission issues a financing order to an
  715  electric utility pursuant to this section, the commission may
  716  not, in exercising its powers and carrying out its duties
  717  regarding any matter within its authority pursuant to this
  718  chapter, consider the nuclear asset-recovery bonds issued
  719  pursuant to the financing order to be the debt of the electric
  720  utility other than for federal income tax purposes, consider the
  721  nuclear asset-recovery charges paid under the financing order to
  722  be the revenue of the electric utility for any purpose, or
  723  consider the nuclear asset-recovery costs or financing costs
  724  specified in the financing order to be the costs of the electric
  725  utility, nor may the commission determine any action taken by an
  726  electric utility which is consistent with the financing order to
  727  be unjust or unreasonable.
  728         (b) The commission may not order or otherwise directly or
  729  indirectly require an electric utility to use nuclear asset
  730  recovery bonds to finance any project, addition, plant,
  731  facility, extension, capital improvement, equipment, or any
  732  other expenditure, unless that expenditure is a nuclear asset
  733  recovery cost and the electric utility has filed a petition
  734  pursuant to paragraph (2)(a) to finance such expenditure using
  735  nuclear asset-recovery bonds. The commission may not refuse to
  736  allow an electric utility to recover nuclear asset-recovery
  737  costs in an otherwise permissible fashion, or refuse or
  738  condition authorization or approval pursuant to s. 366.04 of the
  739  issuance and sale by an electric utility of securities or the
  740  assumption by it of liabilities or obligations, solely because
  741  of the potential availability of nuclear asset-recovery cost
  742  financing.
  743         (4) ELECTRIC UTILITY DUTIES.—The electric bills of an
  744  electric utility that has obtained a financing order and caused
  745  nuclear asset-recovery bonds to be issued must:
  746         (a) Explicitly reflect that a portion of the charges on
  747  such bill represents nuclear asset-recovery charges approved in
  748  a financing order issued to the electric utility and, if the
  749  nuclear asset-recovery property has been transferred to an
  750  assignee, must include a statement to the effect that the
  751  assignee is the owner of the rights to nuclear asset-recovery
  752  charges and that the electric utility or other entity, if
  753  applicable, is acting as a collection agent or servicer for the
  754  assignee. The tariff applicable to customers must indicate the
  755  nuclear asset-recovery charge and the ownership of that charge.
  756         (b) Include the nuclear asset-recovery charge on each
  757  customer’s bill as a separate line item titled “Asset
  758  Securitization Charge” and include both the rate and the amount
  759  of the charge on each bill.
  760  
  761  The failure of an electric utility to comply with this
  762  subsection does not invalidate, impair, or affect any financing
  763  order, nuclear asset-recovery property, nuclear asset-recovery
  764  charge, or nuclear asset-recovery bonds, but does subject the
  765  electric utility to penalties under s. 366.095.
  766         (5) NUCLEAR ASSET-RECOVERY PROPERTY.—
  767         (a)1. All nuclear asset-recovery property that is specified
  768  in a financing order constitutes an existing, present property
  769  right or interest therein, notwithstanding that the imposition
  770  and collection of nuclear asset-recovery charges depends on the
  771  electric utility, to which the financing order is issued,
  772  performing its servicing functions relating to the collection of
  773  nuclear asset-recovery charges and on future electricity
  774  consumption. Such property exists whether or not the revenues or
  775  proceeds arising from the property have been billed, have
  776  accrued, or have been collected and notwithstanding the fact
  777  that the value or amount of the property is dependent on the
  778  future provision of service to customers by the electric utility
  779  or its successors or assignees.
  780         2. Nuclear asset-recovery property specified in a financing
  781  order exists until nuclear asset-recovery bonds issued pursuant
  782  to the financing order are paid in full and all financing costs
  783  and other costs of such nuclear asset-recovery bonds have been
  784  recovered in full.
  785         3. All or any portion of nuclear asset-recovery property
  786  specified in a financing order issued to an electric utility may
  787  be transferred, sold, conveyed, or assigned to a successor or
  788  assignee, that is wholly owned, directly or indirectly, by the
  789  electric utility, created for the limited purpose of acquiring,
  790  owning, or administering nuclear asset-recovery property or
  791  issuing nuclear asset-recovery bonds under the financing order.
  792  All or any portion of nuclear asset-recovery property may be
  793  pledged to secure nuclear asset-recovery bonds issued pursuant
  794  to the financing order, amounts payable to financing parties and
  795  to counterparties under any ancillary agreements, and other
  796  financing costs. Each such transfer, sale, conveyance,
  797  assignment, or pledge by an electric utility or affiliate of an
  798  electric utility is considered to be a transaction in the
  799  ordinary course of business.
  800         4. If an electric utility defaults on any required payment
  801  of charges arising from nuclear asset-recovery property
  802  specified in a financing order, a court, upon application by an
  803  interested party, and without limiting any other remedies
  804  available to the applying party, shall order the sequestration
  805  and payment of the revenues arising from the nuclear asset
  806  recovery property to the financing parties. Any such financing
  807  order remains in full force and effect notwithstanding any
  808  reorganization, bankruptcy, or other insolvency proceedings with
  809  respect to the electric utility or its successors or assignees.
  810         5. The interest of a transferee, purchaser, acquirer,
  811  assignee, or pledgee in nuclear asset-recovery property
  812  specified in a financing order issued to an electric utility,
  813  and in the revenue and collections arising from that property,
  814  is not subject to setoff, counterclaim, surcharge, or defense by
  815  the electric utility or any other person or in connection with
  816  the reorganization, bankruptcy, or other insolvency of the
  817  electric utility or any other entity.
  818         6. Any successor to an electric utility, whether pursuant
  819  to any reorganization, bankruptcy, or other insolvency
  820  proceeding or whether pursuant to any merger or acquisition,
  821  sale, or other business combination, or transfer by operation of
  822  law, as a result of electric utility restructuring or otherwise,
  823  must perform and satisfy all obligations of, and have the same
  824  rights under a financing order as, the electric utility under
  825  the financing order in the same manner and to the same extent as
  826  the electric utility, including collecting and paying to the
  827  person entitled to receive the revenues, collections, payments,
  828  or proceeds of the nuclear asset-recovery property.
  829         (b)1. Except as provided in this section, the Uniform
  830  Commercial Code does not apply to nuclear asset-recovery
  831  property or any right, title, or interest of an electric utility
  832  or assignee described in subparagraph (1)(l)1., whether before
  833  or after the issuance of the financing order. In addition, such
  834  right, title, or interest pertaining to a financing order,
  835  including, but not limited to, the associated nuclear asset
  836  recovery property and any revenues, collections, claims, rights
  837  to payment, payments, money, or proceeds of or arising from
  838  nuclear asset-recovery charges pursuant to such order, is not
  839  deemed proceeds of any right or interest other than in the
  840  financing order and the nuclear asset-recovery property arising
  841  from the order.
  842         2.The creation, attachment, granting, perfection,
  843  priority, and enforcement of liens and security interests in
  844  nuclear asset-recovery property to secure nuclear asset-recovery
  845  bonds is governed solely by this section and, except to the
  846  extent provided in this section, not by the Uniform Commercial
  847  Code.
  848         3. A valid, enforceable, and attached lien and security
  849  interest in nuclear asset-recovery property may be created only
  850  upon the later of:
  851         a. The issuance of a financing order;
  852         b. The execution and delivery of a security agreement with
  853  a financing party in connection with the issuance of nuclear
  854  asset-recovery bonds; or
  855         c. The receipt of value for nuclear asset-recovery bonds.
  856  
  857  A valid, enforceable, and attached security interest is
  858  perfected against third parties as of the date of filing of a
  859  financing statement in the Florida Secured Transaction Registry,
  860  as defined in s. 679.527, in accordance with subparagraph 4.,
  861  and is thereafter a continuously perfected lien; and such
  862  security interest in the nuclear asset-recovery property and all
  863  proceeds of such nuclear asset-recovery property, whether or not
  864  billed, accrued, or collected, and whether or not deposited into
  865  a deposit account and however evidenced, has priority in
  866  accordance with subparagraph 8. and takes precedence over any
  867  subsequent judicial or other lien creditor. A continuation
  868  statement does not need to be filed to maintain such perfection.
  869         4. Financing statements required to be filed pursuant to
  870  this section must be filed, maintained, and indexed in the same
  871  manner and in the same system of records maintained for the
  872  filing of financing statements in the Florida Secured
  873  Transaction Registry, as defined in s. 679.527. The filing of
  874  such a financing statement is the only method of perfecting a
  875  lien or security interest on nuclear asset-recovery property.
  876         5. The priority of a lien and security interest perfected
  877  under this paragraph is not impaired by any later modification
  878  of the financing order or nuclear asset-recovery property or by
  879  the commingling of funds arising from nuclear asset-recovery
  880  property with other funds, and any other security interest that
  881  may apply to those funds is terminated as to all funds
  882  transferred to a segregated account for the benefit of an
  883  assignee or a financing party or to an assignee or financing
  884  party directly.
  885         6. If a default or termination occurs under the terms of
  886  the nuclear asset-recovery bonds, the financing parties or their
  887  representatives may foreclose on or otherwise enforce their lien
  888  and security interest in any nuclear asset-recovery property as
  889  if they were a secured party under Art. 9 of the Uniform
  890  Commercial Code; and a court may order that amounts arising from
  891  nuclear asset-recovery property be transferred to a separate
  892  account for the financing parties’ benefit, to which their lien
  893  and security interest applies. Upon application by or on behalf
  894  of the financing parties to a circuit court of this state, the
  895  court shall order the sequestration and payment to the financing
  896  parties of revenues arising from the nuclear asset-recovery
  897  property.
  898         7. The interest of a pledgee of an interest or any rights
  899  in any nuclear asset-recovery property is not perfected until
  900  filing as provided in subparagraph 4.
  901         8. The priority of the conflicting interests of pledgees in
  902  the same interest or rights in any nuclear asset-recovery
  903  property is determined as follows:
  904         a. Conflicting perfected interests or rights of pledgees
  905  rank according to priority in time of perfection. Priority dates
  906  from the time a filing covering the interest or right is made in
  907  accordance with this paragraph.
  908         b. A perfected interest or right of a pledgee has priority
  909  over a conflicting unperfected interest or right of a pledgee.
  910         c. A perfected interest or right of a pledgee has priority
  911  over a person who becomes a lien creditor after the perfection
  912  of such pledgee’s interest or right.
  913         (c) The sale, assignment, or transfer of nuclear asset
  914  recovery property is governed by this paragraph. All of the
  915  following apply to a sale, assignment, or transfer under this
  916  paragraph:
  917         1. The sale, conveyance, assignment, or other transfer of
  918  nuclear asset-recovery property by an electric utility to an
  919  assignee that the parties have in the governing documentation
  920  expressly stated to be a sale or other absolute transfer is an
  921  absolute transfer and true sale of, and not a pledge of or
  922  secured transaction relating to, the transferor’s right, title,
  923  and interest in, to, and under the nuclear asset-recovery
  924  property, other than for federal and state income and franchise
  925  tax purposes. After such a transaction, the nuclear asset
  926  recovery property is not subject to any claims of the transferor
  927  or the transferor’s creditors, other than creditors holding a
  928  prior security interest in the nuclear asset-recovery property
  929  perfected under paragraph (b).
  930         2. The characterization of the sale, conveyance,
  931  assignment, or other transfer as a true sale or other absolute
  932  transfer under subparagraph 1. and the corresponding
  933  characterization of the transferee’s property interest are not
  934  affected by:
  935         a. Commingling of amounts arising with respect to the
  936  nuclear asset-recovery property with other amounts;
  937         b. The retention by the transferor of a partial or residual
  938  interest, including an equity interest, in the nuclear asset
  939  recovery property, whether direct or indirect, or whether
  940  subordinate or otherwise;
  941         c. Any recourse that the transferee may have against the
  942  transferor other than any such recourse created, contingent
  943  upon, or otherwise occurring or resulting from one or more of
  944  the transferor’s customers’ inability or failure to timely pay
  945  all or a portion of the nuclear asset-recovery charge;
  946         d. Any indemnifications, obligations, or repurchase rights
  947  made or provided by the transferor, other than indemnity or
  948  repurchase rights based solely upon a transferor’s customers’
  949  inability or failure to timely pay all or a portion of the
  950  nuclear asset-recovery charge;
  951         e. The responsibility of the transferor to collect nuclear
  952  asset-recovery charges;
  953         f. The treatment of the sale, conveyance, assignment, or
  954  other transfer for tax, financial reporting, or other purposes;
  955  or
  956         g. The granting or providing to holders of nuclear asset
  957  recovery bonds a preferred right to the nuclear asset-recovery
  958  property or credit enhancement by the electric utility or its
  959  affiliates with respect to such nuclear asset-recovery bonds.
  960         3. Any right that an electric utility has in the nuclear
  961  asset-recovery property before its pledge, sale, or transfer or
  962  any other right created under this section or created in the
  963  financing order and assignable under this section or assignable
  964  pursuant to a financing order is property in the form of a
  965  contract right. Transfer of an interest in nuclear asset
  966  recovery property to an assignee is enforceable only upon the
  967  later of the issuance of a financing order, the execution and
  968  delivery of transfer documents to the assignee in connection
  969  with the issuance of nuclear asset-recovery bonds, and the
  970  receipt of value. An enforceable transfer of an interest in
  971  nuclear asset-recovery property to an assignee is perfected
  972  against all third parties, including subsequent judicial or
  973  other lien creditors, when a notice of that transfer has been
  974  given by the filing of a financing statement in accordance with
  975  subparagraph (b)4. The transfer is perfected against third
  976  parties as of the date of filing.
  977         4. Financing statements required to be filed under this
  978  section must be maintained and indexed in the same manner and in
  979  the same system of records maintained for the filing of
  980  financing statements in the Florida Secured Transaction
  981  Registry, as defined in s. 679.527. The filing of such a
  982  financing statement is the only method of perfecting a transfer
  983  of nuclear asset-recovery property.
  984         5. The priority of a transfer perfected under this section
  985  is not impaired by any later modification of the financing order
  986  or nuclear asset-recovery property or by the commingling of
  987  funds arising from nuclear asset-recovery property with other
  988  funds. Any other security interest that may apply to those
  989  funds, other than a security interest perfected under paragraph
  990  (b), is terminated when they are transferred to a segregated
  991  account for the assignee or a financing party. If nuclear asset
  992  recovery property has been transferred to an assignee or
  993  financing party, any proceeds of that property must be held in
  994  trust for the assignee or financing party.
  995         6. The priority of the conflicting interests of assignees
  996  in the same interest or rights in any nuclear asset-recovery
  997  property is determined as follows:
  998         a. Conflicting perfected interests or rights of assignees
  999  rank according to priority in time of perfection. Priority dates
 1000  from the time a filing covering the transfer is made in
 1001  accordance with subparagraph (b)4.
 1002         b. A perfected interest or right of an assignee has
 1003  priority over a conflicting unperfected interest or right of an
 1004  assignee.
 1005         c. A perfected interest or right of an assignee has
 1006  priority over a person who becomes a lien creditor after the
 1007  perfection of such assignee’s interest or right.
 1008         (6) DESCRIPTION OR INDICATION OF PROPERTY.—The description
 1009  of nuclear asset-recovery property being transferred to an
 1010  assignee in any sale agreement, purchase agreement, or other
 1011  transfer agreement, granted or pledged to a pledgee in any
 1012  security agreement, pledge agreement, or other security
 1013  document, or indicated in any financing statement is only
 1014  sufficient if such description or indication describes the
 1015  financing order that created the nuclear asset-recovery property
 1016  and states that such agreement or financing statement covers all
 1017  or part of such property described in such financing order. This
 1018  subsection applies to all purported transfers of, and all
 1019  purported grants or liens or security interests in, nuclear
 1020  asset-recovery property, regardless of whether the related sale
 1021  agreement, purchase agreement, other transfer agreement,
 1022  security agreement, pledge agreement, or other security document
 1023  was entered into, or any financing statement was filed, before
 1024  or after the effective date of this section.
 1025         (7) FINANCING STATEMENTS.—All financing statements
 1026  referenced in this section are subject to Part V of Art. 9 of
 1027  the Uniform Commercial Code, except that the requirement as to
 1028  continuation statements does not apply.
 1029         (8) CHOICE OF LAW.—The law governing the validity,
 1030  enforceability, attachment, perfection, priority, and exercise
 1031  of remedies with respect to the transfer of an interest or right
 1032  or the pledge or creation of a security interest in any nuclear
 1033  asset-recovery property shall be the laws of this state, and
 1034  exclusively, the laws of this section.
 1035         (9) NUCLEAR ASSET-RECOVERY BONDS NOT PUBLIC DEBT.—The state
 1036  or its political subdivisions are not liable on any nuclear
 1037  asset-recovery bonds, and the bonds are not a debt or a general
 1038  obligation of the state or any of its political subdivisions,
 1039  agencies, or instrumentalities. An issue of nuclear asset
 1040  recovery bonds does not, directly or indirectly or contingently,
 1041  obligate the state or any agency, political subdivision, or
 1042  instrumentality of the state to levy any tax or make any
 1043  appropriation for payment of the nuclear asset-recovery bonds,
 1044  other than in their capacity as consumers of electricity. This
 1045  subsection does not preclude bond guarantees or enhancements
 1046  pursuant to this section. All nuclear asset-recovery bonds must
 1047  contain on the face thereof a statement to the following effect:
 1048  “Neither the full faith and credit nor the taxing power of the
 1049  State of Florida is pledged to the payment of the principal of,
 1050  or interest on, this bond.”
 1051         (10) NUCLEAR ASSET-RECOVERY BONDS AS LEGAL INVESTMENTS WITH
 1052  RESPECT TO INVESTORS THAT REQUIRE STATUTORY AUTHORITY REGARDING
 1053  LEGAL INVESTMENT.—All of the following entities may legally
 1054  invest any sinking funds, moneys, or other funds belonging to
 1055  them or under their control in nuclear asset-recovery bonds:
 1056         (a) The state, the investment board, municipal
 1057  corporations, political subdivisions, public bodies, and public
 1058  officers, except for members of the commission.
 1059         (b) Banks and bankers, savings and loan associations,
 1060  credit unions, trust companies, savings banks and institutions,
 1061  investment companies, insurance companies, insurance
 1062  associations, and other persons carrying on a banking or
 1063  insurance business.
 1064         (c) Personal representatives, guardians, trustees, and
 1065  other fiduciaries.
 1066         (d) All other persons whatsoever who are now or may
 1067  hereafter be authorized to invest in bonds or other obligations
 1068  of a similar nature.
 1069         (11) STATE PLEDGE.—
 1070         (a) For purposes of this subsection, the term “bondholder”
 1071  means a person who holds a nuclear asset-recovery bond.
 1072         (b) The state pledges to and agrees with bondholders, the
 1073  owners of the nuclear asset-recovery property, and other
 1074  financing parties that the state will not:
 1075         1. Alter the provisions of this section which make the
 1076  nuclear asset-recovery charges imposed by a financing order
 1077  irrevocable, binding, and nonbypassable charges;
 1078         2. Take or permit any action that impairs or would impair
 1079  the value of nuclear asset-recovery property or revises the
 1080  nuclear asset-recovery costs for which recovery is authorized;
 1081  or
 1082         3. Except as authorized under this section, reduce, alter,
 1083  or impair nuclear asset-recovery charges that are to be imposed,
 1084  collected, and remitted for the benefit of the bondholders and
 1085  other financing parties until any and all principal, interest,
 1086  premium, financing costs and other fees, expenses, or charges
 1087  incurred, and any contracts to be performed, in connection with
 1088  the related nuclear asset-recovery bonds have been paid and
 1089  performed in full.
 1090  
 1091  This paragraph does not preclude limitation or alteration if
 1092  full compensation is made by law for the full protection of the
 1093  nuclear asset-recovery charges collected pursuant to a financing
 1094  order and of the holders of nuclear asset-recovery bonds and any
 1095  assignee or financing party entering into a contract with the
 1096  electric utility.
 1097         (c) Any person or entity that issues nuclear asset-recovery
 1098  bonds may include the pledge specified in paragraph (b) in the
 1099  nuclear asset-recovery bonds and related documentation.
 1100         (12) NOT AN ELECTRIC UTILITY.—An assignee or financing
 1101  party is not an electric utility or person providing electric
 1102  service by virtue of engaging in the transactions described in
 1103  this section.
 1104         (13) CONFLICTS.—If there is a conflict between this section
 1105  and any other law regarding the attachment, assignment, or
 1106  perfection, or the effect of perfection, or priority of,
 1107  assignment or transfer of, or security interest in nuclear
 1108  asset-recovery property, this section governs.
 1109         (14) EFFECT OF INVALIDITY ON ACTIONS.—Effective on the date
 1110  that nuclear asset-recovery bonds are first issued under this
 1111  section, if any provision of this section is held to be invalid
 1112  or is invalidated, superseded, replaced, repealed, or expires
 1113  for any reason, that occurrence does not affect the validity of
 1114  any action allowed under this section which is taken by an
 1115  electric utility, an assignee, a financing party, a collection
 1116  agent, or a party to an ancillary agreement; and any such action
 1117  remains in full force and effect with respect to all nuclear
 1118  asset-recovery bonds issued or authorized in a financing order
 1119  issued under this section before the date that such provision is
 1120  held to be invalid or is invalidated, superseded, replaced, or
 1121  repealed, or that expires for any reason.
 1122         (15) PENALTIES.—A violation of this section or of a
 1123  financing order issued under this section subjects the utility
 1124  that obtained the order to penalties under s. 366.095 and to any
 1125  other penalties or remedies that the commission determines are
 1126  necessary to achieve the intent of this section and the intent
 1127  and terms of the financing order and to prevent any increase in
 1128  financial impact to the utility’s customers above that set forth
 1129  in the financing order. If the commission orders a penalty or a
 1130  remedy for a violation, the monetary penalty or remedy and the
 1131  costs of defending against the proposed penalty or remedy may
 1132  not be recovered from the customers. The commission may not make
 1133  adjustments to nuclear asset-recovery charges for any such
 1134  penalties or remedies.
 1135         Section 9. For the purpose of incorporating the amendment
 1136  made by this act to section 350.01, Florida Statutes, in a
 1137  reference thereto, paragraph (a) of subsection (1) of section
 1138  403.537, Florida Statutes, is reenacted to read:
 1139         403.537 Determination of need for transmission line; powers
 1140  and duties.—
 1141         (1)(a) Upon request by an applicant or upon its own motion,
 1142  the Florida Public Service Commission shall schedule a public
 1143  hearing, after notice, to determine the need for a transmission
 1144  line regulated by the Florida Electric Transmission Line Siting
 1145  Act, ss. 403.52-403.5365. The notice shall be published at least
 1146  21 days before the date set for the hearing and shall be
 1147  published by the applicant in at least one-quarter page size
 1148  notice in newspapers of general circulation, and by the
 1149  commission in the manner specified in chapter 120, by giving
 1150  notice to counties and regional planning councils in whose
 1151  jurisdiction the transmission line could be placed, and by
 1152  giving notice to any persons who have requested to be placed on
 1153  the mailing list of the commission for this purpose. Within 21
 1154  days after receipt of a request for determination by an
 1155  applicant, the commission shall set a date for the hearing. The
 1156  hearing shall be held pursuant to s. 350.01 within 45 days after
 1157  the filing of the request, and a decision shall be rendered
 1158  within 60 days after such filing.
 1159         Section 10. For the purpose of incorporating the amendment
 1160  made by this act to section 350.01, Florida Statutes, in a
 1161  reference thereto, paragraph (a) of subsection (1) of section
 1162  403.9422, Florida Statutes, is reenacted to read:
 1163         403.9422 Determination of need for natural gas transmission
 1164  pipeline; powers and duties.—
 1165         (1)(a) Upon request by an applicant or upon its own motion,
 1166  the commission shall schedule a public hearing, after notice, to
 1167  determine the need for a natural gas transmission pipeline
 1168  regulated by ss. 403.9401-403.9425. Such notice shall be
 1169  published at least 45 days before the date set for the hearing
 1170  and shall be published in at least one-quarter page size in
 1171  newspapers of general circulation and in the Florida
 1172  Administrative Register, by giving notice to counties and
 1173  regional planning councils in whose jurisdiction the natural gas
 1174  transmission pipeline could be placed, and by giving notice to
 1175  any persons who have requested to be placed on the mailing list
 1176  of the commission for this purpose. Within 21 days after receipt
 1177  of a request for determination by an applicant, the commission
 1178  shall set a date for the hearing. The hearing shall be held
 1179  pursuant to s. 350.01 within 75 days after the filing of the
 1180  request, and a decision shall be rendered within 90 days after
 1181  such filing.
 1182         Section 11. For the purpose of incorporating the amendment
 1183  made by this act to sections 350.031, 350.041, and 350.042,
 1184  Florida Statutes, in a reference thereto, section 350.043,
 1185  Florida Statutes, is reenacted to read:
 1186         350.043 Enforcement and interpretation.—Any violation of s.
 1187  350.031, s. 350.04, s. 350.041, s. 350.042, or s. 350.0605 by a
 1188  commissioner, former commissioner, former employee, or Public
 1189  Service Commission Nominating Council member shall be punishable
 1190  as provided in ss. 112.317 and 112.324. The Commission on Ethics
 1191  is hereby given the power and authority to investigate
 1192  complaints of violation of this chapter in the manner provided
 1193  in part III of chapter 112, as if this section were included in
 1194  that part. A commissioner may request an advisory opinion from
 1195  the Commission on Ethics as provided by s. 112.322(3)(a).
 1196         Section 12. This act shall take effect July 1, 2015.