No. CS/SB 126
Filed under Environment & Water.
Florida Public Service Commission; Revising the membership of the Florida Public Service Commission; requiring a group of parties to certain proceedings to negotiate the terms of a settlement with the Public Counsel before presenting such settlement to the commission; requiring that orders issued by the commission contain adequate support and rationale for any conclusions made by the commission; authorizing certain persons to make a motion to intervene in a pending commission proceeding; authorizing the commission to fix affordable, in addition to fair, just, and reasonable, rates, etc.
Plain English Summary
AI-GENERATEDEvery ratemaking statute for electric, water, and wastewater utilities now must weigh affordability alongside the existing fair, just, and reasonable standard. The commission grows from five to seven members, with one seat reserved for a certified public accountant and one for a chartered financial analyst.
Before presenting a settlement to the commission, other parties must negotiate its terms in good faith with the Public Counsel, the state's ratepayer advocate. The commission may not approve one without that negotiation, and every order must now explain the facts and reasoning behind it.
Utilities can no longer ask to change their allowed return on equity whenever they choose; requests must follow a schedule the commission sets, except for one narrow deviation the commission must grant if the utility's rates have become insufficient for reasons beyond its control.
Electric utilities gain a fast interim charge to recover storm costs within 60 days of filing, before a full review, subject to later refund. A new annual report to the Legislature must also detail each utility's executive compensation and flag pay above the industry average.
AIThe Public Service Commission grows from five commissioners to seven. Of the new total, one seat must go to a certified public accountant and one to a chartered financial analyst, adding required financial expertise to the board.
AIIn addition to the existing fair, just, and reasonable standard repeated across the ratemaking statutes, the commission must now also consider and address affordability in every proceeding that could affect utility rates.
AIOther parties to a commission proceeding must negotiate a proposed settlement's terms in good faith with the Public Counsel before presenting it. The Public Counsel need not sign the settlement, but the commission is barred from approving one where that negotiation never happened.
AIA utility can no longer ask to modify its allowed return on equity whenever it wants. Requests must follow a schedule the commission establishes, with one narrow exception the commission must grant when the utility's rates have become inadequate for reasons outside its control.
AIAn electric utility can start charging customers to recover estimated storm-recovery costs within 60 days of filing, before the commission has fully reviewed the costs' prudence. The charge is preliminary and subject to refund once actual costs are reviewed.
AIEvery order the commission issues must now show its work: adequate support and rationale for its conclusions, including the specific facts and factors behind them, rather than a bare conclusion resting on the public interest alone.
AIWhen someone challenges a party's standing to intervene in a rate case, the commission must rule on that challenge promptly, and no later than 30 days after it is filed, to limit rate-case expense run up by parties without standing.
AIThe commission's annual report to the Governor and Legislature must detail each public utility's executive compensation, including salaries, bonuses, and stock buybacks, and must flag any pay that exceeds the industry average along with the utility's justification for it.