Florida Senate - 2018 SB 1586
By Senator Simmons
9-01218A-18 20181586__
1 A bill to be entitled
2 An act relating to the energy grid; creating s.
3 366.96, F.S.; providing legislative intent; defining
4 terms; requiring the Public Service Commission to hold
5 a series of hearings to determine certain disaster
6 hardening standards for each electric utility;
7 requiring the commission to determine an energy grid
8 improvement plan for each electric utility; specifying
9 the maximum period for such plans’ implementation;
10 requiring the commission to allow such plans to be
11 modified at certain intervals; specifying
12 considerations for determining such standards and
13 plans; requiring the commission to issue an order for
14 the electric utilities to implement and fund their
15 plans; authorizing the commission to grant a single
16 extension of plan deadlines every 5 years under
17 certain circumstances; requiring the commission to
18 submit a report to the Legislature on specified dates;
19 requiring the commission to adopt certain rules and
20 issue certain orders; providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Section 366.96, Florida Statutes, is created to
25 read:
26 366.96 Electric utility disaster hardening.—
27 (1) It is the intent of the Legislature that the number of
28 electric utility customers without electricity after natural and
29 manmade disasters and other major events, including storms, and
30 the duration of such outages be reduced. Furthermore, it is the
31 intent of the Legislature that such reductions be accomplished
32 at a cost that is fair and reasonable for the state’s electric
33 utility customers.
34 (2) As used in this section, the term:
35 (a) “Commission” means the Florida Public Service
36 Commission.
37 (b) “Electric utility” has the same meaning as in s.
38 366.02.
39 (c) “Energy grid” means an electric utility’s
40 interconnected generation, transmission, and distribution
41 infrastructure.
42 (3) Pursuant to its authority under ss. 366.04(2)(c) and
43 366.05(8), the commission shall hold a series of public
44 hearings, including customer hearings throughout the state, to
45 determine for various critical circumstances, and especially for
46 each storm and hurricane category, the following disaster
47 hardening standards that each electric utility may be able to
48 achieve at a reasonable cost:
49 (a) The highest acceptable percentage of customers without
50 electricity for each 24-hour period after a storm.
51 (b) The longest period of time for complete restoration,
52 replacement, or renovation of the energy grid.
53 (4) During the process specified in subsection (3), the
54 commission must also determine a disaster preparation and energy
55 grid improvement plan for each electric utility to achieve the
56 developed standards, including all necessary improvements and
57 the time within which the electric utility must complete each
58 improvement. The plan implementation period may be up to 20
59 years, and the commission must allow for the plan to be modified
60 at least every 5 years.
61 (5) In making the determinations in subsections (3) and
62 (4), the commission must consider all of the following:
63 (a) The available projections for the number and severity
64 of storms in the future and for changes in sea level, storm
65 surge, and flooding;
66 (b) The projected costs of outages and of restorations
67 which would be avoided by the standards and plans;
68 (c) The projected benefits of the standards and plans;
69 (d) Any alternatives to the traditional energy grid which
70 provide strengthening or resiliency benefits to the energy grid,
71 including distributed generation and microgrids; and
72 (e) The individual circumstances and characteristics of
73 each electric utility, including:
74 1. The utility’s energy grid, taking into account its
75 history of outages, restorations, the time necessary to complete
76 each restoration, and the factors involved in restoration and
77 timing of completion;
78 2. The utility’s ratepayer base;
79 3. The utility’s existing cost recovery structure and
80 rates;
81 4. Any potential alternative standards and goals for the
82 utility, including implementing alternative forms of renewable
83 energy;
84 5. Available energy grid improvements for the utility,
85 including the benefits and costs of such improvements and the
86 impact of such improvements on rates;
87 6. The total cost of each utility’s plan. This must include
88 the expected cost to consumers of implementing the plan shown in
89 relation to the benefits to be achieved, such as the potential
90 savings from outages and restoration costs avoided; and
91 7. A reasonable period for the utility to implement the
92 plan.
93 (6) Upon completion of the development of standards and a
94 plan for each electric utility, the commission must issue an
95 order requiring each electric utility to implement the plan to
96 meet the standards and specifying the method for payment of the
97 plan, including each utility’s authorized assessment to
98 ratepayers for plan costs.
99 (7) During any 5-year period, an electric utility may apply
100 to the commission for a single extension for one or more plan
101 deadlines specified in the order. The commission may grant the
102 extension if the electric utility provides to the commission
103 sufficient evidence that an extension is in the best interest of
104 the utility’s ratepayers.
105 (8)(a) By February 1, 2019, and every 5 years thereafter,
106 the commission shall submit a report to the President of the
107 Senate and the Speaker of the House of Representatives which
108 describes, for each electric utility, the commission’s
109 determination and order for that electric utility on its
110 standards, a plan for grid improvement, the timetable for
111 completion of the plan, and the projected costs and benefits of
112 the plan.
113 (b) The commission shall adopt rules and issue orders as
114 are necessary and proper to implement this section.
115 Section 2. This act shall take effect upon becoming a law.