Florida Senate - 2026 SB 1532
By Senator Smith
17-00432B-26 20261532__
1 A bill to be entitled
2 An act relating to the Florida Public Service
3 Commission; amending s. 366.03, F.S.; providing
4 legislative findings; requiring the commission to
5 implement specified measures to improve transparency
6 and accountability; amending s. 366.041, F.S.;
7 requiring the commission to ensure that public
8 utilities do not recover certain costs from ratepayers
9 regardless of whether such costs take a specified
10 form; authorizing the commission to adopt rules;
11 requiring the commission, upon a certain
12 determination, to order a utility to refund certain
13 amounts plus interest to customers; authorizing the
14 commission to assess certain penalties; providing
15 requirements for such penalties; providing for relief;
16 amending s. 366.06, F.S.; requiring the commission to
17 ensure that the allowable return on equity for public
18 utilities does not exceed certain metrics; amending s.
19 366.07, F.S.; requiring that certain cost-tracking
20 mechanisms for a public utility to recover changes in
21 electric supply costs provide a specified cost-sharing
22 structure; amending s. 366.81, F.S.; providing a
23 legislative directive to the commission to adopt
24 certain rules and measures; providing requirements for
25 such rules; making technical changes; amending s.
26 377.814, F.S.; conforming a cross-reference; providing
27 an effective date.
28
29 Be It Enacted by the Legislature of the State of Florida:
30
31 Section 1. Section 366.03, Florida Statutes, is amended to
32 read:
33 366.03 General duties of public utility; transparency and
34 accountability.—
35 (1) Each public utility shall furnish to each person
36 applying therefor reasonably sufficient, adequate, and efficient
37 service upon terms as required by the commission. A No public
38 utility is not shall be required to furnish electricity or gas
39 for resale except that a public utility may be required to
40 furnish gas for containerized resale. All rates and charges
41 made, demanded, or received by any public utility for any
42 service rendered, or to be rendered by it, and each rule and
43 regulation of such public utility, must shall be fair and
44 reasonable. A No public utility may not shall make or give any
45 undue or unreasonable preference or advantage to any person or
46 locality, or subject the same to any undue or unreasonable
47 prejudice or disadvantage in any respect.
48 (2) The Legislature finds that transparency and
49 accountability in the form of clear reporting, accessible public
50 hearings, and strong disclosure standards bolster the public
51 trust in public utilities and ensure that decisions are made in
52 the best interest of all residents. The commission shall
53 implement measures to improve transparency and accountability by
54 providing, at a minimum, all of the following:
55 (a) At least one in-person public service hearing per every
56 250,000 customers, held in a reasonable location near those
57 customers, or at least one in-person public service hearing held
58 in each county where the public utility provides service, if the
59 county has fewer than 250,000 residents.
60 (b) Public access to information regarding the compensation
61 of the executive officers of each public utility providing
62 service, or the compensation of the executive officers of a
63 public utility’s subsidiaries.
64 Section 2. Section 366.041, Florida Statutes, is amended to
65 read:
66 366.041 Rate fixing; adequacy of facilities as criterion;
67 cost recovery prohibitions.—
68 (1) In fixing the just, reasonable, and compensatory rates,
69 charges, fares, tolls, or rentals to be observed and charged for
70 service within this the state by any and all public utilities
71 under its jurisdiction, the commission is authorized to give
72 consideration, among other things, to the efficiency,
73 sufficiency, and adequacy of the facilities provided and the
74 services rendered; the cost of providing such service and the
75 value of such service to the public; the ability of the utility
76 to improve such service and facilities; and energy conservation
77 and the efficient use of alternative energy resources; provided
78 that a no public utility is not shall be denied a reasonable
79 rate of return upon its rate base in any order entered pursuant
80 to such proceedings. In its consideration thereof, the
81 commission has shall have authority, and it is shall be the
82 commission’s duty, to hear service complaints, if any, that may
83 be presented by subscribers and the public during any
84 proceedings involving such rates, charges, fares, tolls, or
85 rentals; however, no service complaints may not shall be taken
86 up or considered by the commission at any proceeding proceedings
87 involving rates, charges, fares, tolls, or rentals unless the
88 utility has been given at least 30 days’ written notice thereof,
89 and any proceeding may be extended, before prior to final
90 determination, for such period; further, an no order hereunder
91 is not shall be made effective until a reasonable time has been
92 given for the utility involved to correct the cause of service
93 complaints, considering the factor of growth in the community
94 and availability of necessary equipment.
95 (2) The power and authority herein conferred upon the
96 commission does shall not cancel or amend any existing punitive
97 powers of the commission but is shall be supplementary thereto
98 and must shall be construed liberally to further the legislative
99 intent that adequate service be rendered by public utilities in
100 this the state in consideration for the rates, charges, fares,
101 tolls, and rentals fixed by said commission and observed by such
102 said utilities under its jurisdiction.
103 (3) The term “public utility” as used herein means all
104 persons or corporations which the commission has the authority,
105 power, and duty to regulate for the purpose of fixing rates and
106 charges for services rendered and requiring the rendition of
107 adequate service.
108 (4) An No electric utility may not collect impact fees
109 designed to recover capital costs in initiating new service
110 unless the utility can demonstrate and the commission finds that
111 such fees are fair, just, and reasonable and are collected from
112 the ultimate utility customer of record at such time as or after
113 permanent electric service is provided. This prohibition does
114 shall not apply to underground electric distribution lines or
115 line extension charges collected pursuant to approved tariffs.
116 (5) The commission shall ensure that public utilities do
117 not recover any of the following costs from ratepayers, whether
118 as part of the proposed base rate costs, a rider, or other
119 charges:
120 (a) More than 50 percent of annual total compensation or of
121 expense reimbursement for commissioners.
122 (b) Tax penalties or fines issued against the public
123 utility.
124 (c) Investor-relations expenses.
125 (d) Advertising or public relations expenses that do not
126 directly relate to a purpose or program that is required or
127 authorized under law or commission rule or order. Such expenses
128 include any of the following:
129 1. Communications to promote the public utility’s brand.
130 2. Expenses related to lobbying or other activities meant
131 to influence the outcome of legislation.
132 (e) Organizational or membership dues, or other
133 contributions, to any organization, association, institution,
134 corporation, or other entity that engages in lobbying or similar
135 activities intended to influence the outcome of any local,
136 state, or federal legislation, ordinance, resolution, rule,
137 ballot measure, or other regulatory decision, including, but not
138 limited to, business or industry trade associations.
139 (f) Any amount expended to compensate attorneys or
140 technical experts, who are not public utility company staff, to
141 prepare and litigate a general rate case filing. The commission
142 shall adopt rules for determining whether additional costs
143 associated with rate case filings are recoverable.
144 (6)(a) If the commission determines that a utility
145 improperly recovered costs pursuant to subsection (5), the
146 commission must order the utility to refund the amount
147 improperly recovered, plus interest, to customers. Upon such
148 determination, the commission may also assess a nonrecoverable
149 penalty against the utility. The penalty may not exceed the
150 greater of the following:
151 1. Three times the amount of the expenditure made in
152 violation of paragraph (5)(a).
153 2. A fine of $5,000 per violation of paragraph (5)(a) or
154 paragraph (5)(b), which may be inflation-adjusted annually.
155 (b) If the commission determines that a utility, or any of
156 its subsidiaries, has violated any provision of this section,
157 the commission may refer the case to the Attorney General. The
158 Attorney General may bring action to obtain any appropriate
159 relief.
160 Section 3. Present subsection (4) of section 366.06,
161 Florida Statutes, is redesignated as subsection (5), and a new
162 subsection (4) is added to that section, to read:
163 366.06 Rates; procedure for fixing and changing.—
164 (4) The commission shall ensure that the allowable return
165 on equity for public utilities does not exceed the national
166 average authorized return on equity for comparable public
167 utilities across the country.
168 Section 4. Section 366.07, Florida Statutes, is amended to
169 read:
170 366.07 Rates; adjustment.—
171 (1) Whenever the commission, after public hearing either
172 upon its own motion or upon complaint, finds that any of shall
173 find the rates, rentals, charges, or classifications, or any of
174 them, proposed, demanded, observed, charged, or collected by any
175 public utility for any service, or in connection therewith, or
176 any of the rules, regulations, measurements, practices, or
177 contracts, or any of them, relating thereto, are unjust,
178 unreasonable, insufficient, excessive, or unjustly
179 discriminatory or preferential, or in anywise in violation of
180 law, or any service is inadequate or cannot be obtained, the
181 commission shall determine and by order fix the fair and
182 reasonable rates, rentals, charges, or classifications, and
183 reasonable rules, regulations, measurements, practices,
184 contracts, or service, to be imposed, observed, furnished, or
185 followed in the future.
186 (2) Any form of cost-tracking mechanism for a public
187 utility to recover electricity supply costs must provide for a
188 sharing of those costs whereby customers are responsible for not
189 more than 80 percent of any cost and the public utility is
190 responsible for not less than 20 percent of any cost, in
191 accordance with s. 366.81(4)(a), (b) and (c).
192 Section 5. Section 366.81, Florida Statutes, is amended to
193 read:
194 366.81 Legislative findings and intent.—
195 (1) The Legislature finds and declares that it is critical
196 to use utilize the most efficient and cost-effective demand-side
197 renewable energy systems and conservation systems in order to
198 protect the health, prosperity, and general welfare of the state
199 and its citizens. Reduction in, and control of, the growth rates
200 of electric consumption and of weather-sensitive peak demand are
201 of particular importance.
202 (2) The Legislature further finds that the Florida Public
203 Service Commission is the appropriate agency to adopt goals and
204 approve plans related to the promotion of demand-side renewable
205 energy systems and the conservation of electric energy and
206 natural gas usage.
207 (3) The Legislature directs the commission to develop and
208 adopt overall goals, and authorizes the commission to require
209 each utility to develop plans and implement programs for
210 increasing energy efficiency and conservation and demand-side
211 renewable energy systems within its service area, subject to the
212 approval of the commission.
213 (4) The Legislature directs the commission to develop and
214 adopt performance- and incentive-based rules, multiyear rate
215 plans, and other regulatory mechanisms, to achieve fair, just,
216 reasonable, and sufficient rates for electric utilities. The
217 rules must:
218 (a) Align the financial incentives of an electric utility
219 with the interests of the utility’s customers regarding incurred
220 fuel costs;
221 (b) Protect customers from the volatility of fuel costs and
222 improve an electric utility’s management of fuel costs;
223 (c) Ensure that the electric utilities provide their
224 rationale for the metrics used to establish fuel costs;
225 (d) Establish performance incentives and penalty mechanisms
226 that link an electric utility’s return on equity to the
227 achievement of performance metrics related to energy efficiency,
228 grid reliability, and cost effectiveness;
229 (e) Require reduction of an electric utility’s return on
230 equity by 10 basis points per percent deviation upon such
231 utility’s failure to operate within a 10 percent margin of the
232 annual national average for electricity consumption, as measured
233 by the United States Energy Information Administration, through
234 energy cost efficiency; and
235 (f) Provide guidelines for a 50-50 debt-to-equity ratio
236 structure for electric utilities.
237 (5) Since solutions to this state’s our energy problems are
238 complex, the Legislature intends that the use of solar energy,
239 renewable energy sources, highly efficient systems,
240 cogeneration, and load-control systems be encouraged.
241 Accordingly, in exercising its jurisdiction, the commission may
242 shall not approve any rate or rate structure which discriminates
243 against any class of customers on account of the use of such
244 facilities, systems, or devices.
245 (6) This expression of legislative intent may shall not be
246 construed to preclude experimental rates, rate structures, or
247 programs.
248 (7) The Legislature further finds and declares that ss.
249 366.80-366.83 and 403.519 must are to be liberally construed in
250 order to meet the complex problems of reducing and controlling
251 the growth rates of electric consumption and reducing the growth
252 rates of weather-sensitive peak demand; increasing the overall
253 efficiency and cost-effectiveness of electricity and natural gas
254 production and use; encouraging further development of demand
255 side renewable energy systems; and conserving expensive
256 resources, particularly petroleum fuels.
257 Section 6. Paragraph (b) of subsection (5) of section
258 377.814, Florida Statutes, is amended to read:
259 377.814 Municipal Solid Waste-to-Energy Program.—
260 (5) FUNDING.—
261 (b) Funds awarded under the grant programs set forth in
262 this section may not be used to support, subsidize, or enable
263 the sale of electric power generated by a municipal solid waste
264 to-energy facility to any small electric utility eligible to
265 petition the commission under s. 366.06(5) s. 366.06(4).
266 Section 7. This act shall take effect July 1, 2026.