Florida Senate - 2018 COMMITTEE AMENDMENT Bill No. SB 1586 Ì616036"Î616036 LEGISLATIVE ACTION Senate . House Comm: RCS . 01/25/2018 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Communications, Energy, and Public Utilities (Simmons) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Section 366.96, Florida Statutes, is created to 6 read: 7 366.96 Public utility disaster hardening.— 8 (1) It is the intent of the Legislature that the 9 commission, in its storm hardening proceedings, increase its 10 focus on the resiliency of the energy grid to reduce the 11 percentage of customers without electricity during and after a 12 storm or other natural disaster and to reduce the time necessary 13 for the affected public utility to fully restore electric 14 service during such outages. Furthermore, it is the intent of 15 the Legislature that such reductions be accomplished at a cost 16 that is fair and reasonable for the state’s public utility 17 customers. 18 (2) As used in this section, the term “energy grid” means a 19 public utility’s interconnected generation, transmission, and 20 distribution infrastructure. 21 (3) The commission shall hold public hearings, including 22 such customer hearings in each public utility’s service 23 territory as appropriate, to determine a disaster preparation 24 and energy grid improvement plan for each public utility, 25 including all necessary improvements and the time within which 26 the public utility must complete each improvement. The plan 27 implementation period may be up to 20 years, and the commission 28 must allow for the plan to be modified at least every 3 years. 29 (4) In developing the disaster preparation and energy grid 30 improvement plan, the commission must consider all of the 31 following: 32 (a) The available projections for the number and severity 33 of storms in the future and for changes in sea level, storm 34 surge, and flooding; 35 (b) The projected costs and benefits of each plan; 36 (c) Any alternatives to the traditional energy grid which 37 provide strengthening or resiliency benefits to the energy grid, 38 including smart grids, distributed generation, and microgrids; 39 and 40 (d) The individual circumstances and characteristics of 41 each public utility, including: 42 1. The public utility’s energy grid, taking into account 43 its history of outages, restorations, the time necessary to 44 complete each restoration, and the factors involved in 45 restoration and timing of completion; 46 2. The utility’s ratepayer base; 47 3. The utility’s existing cost recovery structure and 48 rates; 49 4. Any potential alternatives to the traditional energy 50 grid; 51 5. Available energy grid improvements for the utility, 52 including the benefits and costs of such improvements and the 53 impact of such improvements on rates; and 54 6. A reasonable period for the utility to implement the 55 plan. 56 (5) Upon completion of the development of a disaster 57 preparation and energy grid improvement plan for each public 58 utility, the commission must issue an order requiring the public 59 utility to implement the plan. 60 (6) During any 6-year period, a public utility may apply to 61 the commission for a single extension for one or more plan 62 deadlines specified in the order. The commission may grant the 63 extension if the public utility provides the commission with 64 sufficient evidence that an extension is in the best interest of 65 the utility’s ratepayers. 66 (7)(a) On or before February 1, 2019, and for every 3 years 67 thereafter, the commission shall submit a report to the 68 President of the Senate and the Speaker of the House of 69 Representatives which describes, for each public utility, the 70 commission’s determination and order for that public utility 71 regarding its plan for energy grid improvement, the timetable 72 for completion of the plan, and the projected costs and benefits 73 of the plan. In the February 1, 2022, report, and in each report 74 thereafter, the commission shall report on the performance of 75 the energy grid improvements for each storm or other natural 76 disaster that have occurred since the previous report. 77 (b) The commission shall adopt rules and issue orders 78 necessary to implement this section. 79 Section 2. This act shall take effect upon becoming a law. 80 81 ================= T I T L E A M E N D M E N T ================ 82 And the title is amended as follows: 83 Delete everything before the enacting clause 84 and insert: 85 A bill to be entitled 86 An act relating to the energy grid; creating s. 87 366.96, F.S.; providing legislative intent; defining 88 the term “energy grid”; requiring the Public Service 89 Commission to hold public hearings to determine a 90 disaster preparation and energy grid improvement plan 91 for each public utility; specifying the maximum 92 implementation period for such plans; requiring the 93 commission to allow such plans to be modified at 94 certain intervals; specifying considerations for 95 developing such plans; requiring the commission to 96 issue orders for the public utilities to implement 97 their plans; authorizing the commission to grant a 98 single extension of plan deadlines every 6 years under 99 certain circumstances; requiring the commission to 100 submit a report to the Legislature on specified dates; 101 specifying report requirements; requiring the 102 commission to adopt certain rules and issue certain 103 orders; providing an effective date.