Florida Senate - 2018 CS for SB 1586 By the Committee on Communications, Energy, and Public Utilities; and Senator Simmons 579-02435-18 20181586c1 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 the term “energy grid”; requiring the Public Service 5 Commission to hold public hearings to determine a 6 disaster preparation and energy grid improvement plan 7 for each public utility; specifying the maximum 8 implementation period for such plans; requiring the 9 commission to allow such plans to be modified at 10 certain intervals; specifying considerations for 11 developing such plans; requiring the commission to 12 issue orders for the public utilities to implement 13 their plans; authorizing the commission to grant a 14 single extension of plan deadlines every 6 years under 15 certain circumstances; requiring the commission to 16 submit a report to the Legislature on specified dates; 17 specifying report requirements; requiring the 18 commission to adopt certain rules and issue certain 19 orders; providing an effective date. 20 21 Be It Enacted by the Legislature of the State of Florida: 22 23 Section 1. Section 366.96, Florida Statutes, is created to 24 read: 25 366.96 Public utility disaster hardening.— 26 (1) It is the intent of the Legislature that the 27 commission, in its storm hardening proceedings, increase its 28 focus on the resiliency of the energy grid to reduce the 29 percentage of customers without electricity during and after a 30 storm or other natural disaster and to reduce the time necessary 31 for the affected public utility to fully restore electric 32 service during such outages. Furthermore, it is the intent of 33 the Legislature that such reductions be accomplished at a cost 34 that is fair and reasonable for the state’s public utility 35 customers. 36 (2) As used in this section, the term “energy grid” means a 37 public utility’s interconnected generation, transmission, and 38 distribution infrastructure. 39 (3) The commission shall hold public hearings, including 40 such customer hearings in each public utility’s service 41 territory as appropriate, to determine a disaster preparation 42 and energy grid improvement plan for each public utility, 43 including all necessary improvements and the time within which 44 the public utility must complete each improvement. The plan 45 implementation period may be up to 20 years, and the commission 46 must allow for the plan to be modified at least every 3 years. 47 (4) In developing the disaster preparation and energy grid 48 improvement plan, the commission must consider all of the 49 following: 50 (a) The available projections for the number and severity 51 of storms in the future and for changes in sea level, storm 52 surge, and flooding; 53 (b) The projected costs and benefits of each plan; 54 (c) Any alternatives to the traditional energy grid which 55 provide strengthening or resiliency benefits to the energy grid, 56 including smart grids, distributed generation, and microgrids; 57 and 58 (d) The individual circumstances and characteristics of 59 each public utility, including: 60 1. The public utility’s energy grid, taking into account 61 its history of outages, restorations, the time necessary to 62 complete each restoration, and the factors involved in 63 restoration and timing of completion; 64 2. The utility’s ratepayer base; 65 3. The utility’s existing cost recovery structure and 66 rates; 67 4. Any potential alternatives to the traditional energy 68 grid; 69 5. Available energy grid improvements for the utility, 70 including the benefits and costs of such improvements and the 71 impact of such improvements on rates; and 72 6. A reasonable period for the utility to implement the 73 plan. 74 (5) Upon completion of the development of a disaster 75 preparation and energy grid improvement plan for each public 76 utility, the commission must issue an order requiring the public 77 utility to implement the plan. 78 (6) During any 6-year period, a public utility may apply to 79 the commission for a single extension for one or more plan 80 deadlines specified in the order. The commission may grant the 81 extension if the public utility provides the commission with 82 sufficient evidence that an extension is in the best interest of 83 the utility’s ratepayers. 84 (7)(a) On or before February 1, 2019, and for every 3 years 85 thereafter, the commission shall submit a report to the 86 President of the Senate and the Speaker of the House of 87 Representatives which describes, for each public utility, the 88 commission’s determination and order for that public utility 89 regarding its plan for energy grid improvement, the timetable 90 for completion of the plan, and the projected costs and benefits 91 of the plan. In the February 1, 2022, report, and in each report 92 thereafter, the commission shall report on the performance of 93 the energy grid improvements for each storm or other natural 94 disaster that have occurred since the previous report. 95 (b) The commission shall adopt rules and issue orders 96 necessary to implement this section. 97 Section 2. This act shall take effect upon becoming a law.