THE BILL ITSELF
SB 1532
Florida Public Service Commission
Florida Senate - 2026 SB 1532 By Senator Smith 17-00432B-26 20261532__
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A bill to be entitled
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An act relating to the Florida Public Service
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Commission; amending s. 366.03, F.S.; providing
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legislative findings; requiring the commission to
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implement specified measures to improve transparency
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and accountability; amending s. 366.041, F.S.;
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requiring the commission to ensure that public
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utilities do not recover certain costs from ratepayers
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regardless of whether such costs take a specified
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form; authorizing the commission to adopt rules;
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requiring the commission, upon a certain
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determination, to order a utility to refund certain
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amounts plus interest to customers; authorizing the
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commission to assess certain penalties; providing
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requirements for such penalties; providing for relief;
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amending s. 366.06, F.S.; requiring the commission to
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ensure that the allowable return on equity for public
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utilities does not exceed certain metrics; amending s.
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366.07, F.S.; requiring that certain cost-tracking
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mechanisms for a public utility to recover changes in
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electric supply costs provide a specified cost-sharing
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structure; amending s. 366.81, F.S.; providing a
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legislative directive to the commission to adopt
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certain rules and measures; providing requirements for
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such rules; making technical changes; amending s.
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377.814, F.S.; conforming a cross-reference; providing
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an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Section 366.03, Florida Statutes, is amended to
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read:
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366.03 General duties of public utility ; transparency and
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accountability .—
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(1) Each public utility shall furnish to each person
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applying therefor reasonably sufficient, adequate, and efficient
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service upon terms as required by the commission. A No public
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utility is not shall be required to furnish electricity or gas
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for resale except that a public utility may be required to
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furnish gas for containerized resale. All rates and charges
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made, demanded, or received by any public utility for any
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service rendered, or to be rendered by it, and each rule and
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regulation of such public utility, must shall be fair and
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reasonable. A No public utility may not shall make or give any
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undue or unreasonable preference or advantage to any person or
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locality, or subject the same to any undue or unreasonable
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prejudice or disadvantage in any respect.
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(2) The Legislature finds that transparency and
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accountability in the form of clear reporting, accessible public
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hearings, and strong disclosure standards bolster the public
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trust in public utilities and ensure that decisions are made in
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the best interest of all residents. The commission shall
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implement measures to improve transparency and accountability by
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providing, at a minimum, all of the following:
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(a) At least one in-person public service hearing per every
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250,000 customers, held in a reasonable location near those
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customers, or at least one in-person public service hearing held
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in each county where the public utility provides service, if the
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county has fewer than 250,000 residents.
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(b) Public access to information regarding the compensation
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of the executive officers of each public utility providing
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service, or the compensation of the executive officers of a
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public utility’s subsidiaries.
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Section 2. Section 366.041, Florida Statutes, is amended to
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read:
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366.041 Rate fixing; adequacy of facilities as criterion ;
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cost recovery prohibitions .—
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(1) In fixing the just, reasonable, and compensatory rates,
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charges, fares, tolls, or rentals to be observed and charged for
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service within this the state by any and all public utilities
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under its jurisdiction, the commission is authorized to give
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consideration, among other things, to the efficiency,
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sufficiency, and adequacy of the facilities provided and the
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services rendered; the cost of providing such service and the
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value of such service to the public; the ability of the utility
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to improve such service and facilities; and energy conservation
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and the efficient use of alternative energy resources; provided
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that a no public utility is not shall be denied a reasonable
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rate of return upon its rate base in any order entered pursuant
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to such proceedings. In its consideration thereof, the
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commission has shall have authority, and it is shall be the
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commission’s duty, to hear service complaints, if any, that may
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be presented by subscribers and the public during any
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proceedings involving such rates, charges, fares, tolls, or
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rentals; however, no service complaints may not shall be taken
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up or considered by the commission at any proceeding proceedings
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involving rates, charges, fares, tolls, or rentals unless the
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utility has been given at least 30 days’ written notice thereof,
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and any proceeding may be extended, before prior to final
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determination, for such period; further, an no order hereunder
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is not shall be made effective until a reasonable time has been
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given for the utility involved to correct the cause of service
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complaints, considering the factor of growth in the community
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and availability of necessary equipment.
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(2) The power and authority herein conferred upon the
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commission does shall not cancel or amend any existing punitive
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powers of the commission but is shall be supplementary thereto
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and must shall be construed liberally to further the legislative
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intent that adequate service be rendered by public utilities in
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this the state in consideration for the rates, charges, fares,
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tolls, and rentals fixed by said commission and observed by such
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said utilities under its jurisdiction.
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(3) The term “public utility” as used herein means all
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persons or corporations which the commission has the authority,
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power, and duty to regulate for the purpose of fixing rates and
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charges for services rendered and requiring the rendition of
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adequate service.
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(4) An No electric utility may not collect impact fees
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designed to recover capital costs in initiating new service
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unless the utility can demonstrate and the commission finds that
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such fees are fair, just, and reasonable and are collected from
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the ultimate utility customer of record at such time as or after
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permanent electric service is provided. This prohibition does
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shall not apply to underground electric distribution lines or
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line extension charges collected pursuant to approved tariffs.
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(5) The commission shall ensure that public utilities do
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not recover any of the following costs from ratepayers, whether
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as part of the proposed base rate costs, a rider, or other
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charges:
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(a) More than 50 percent of annual total compensation or of
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expense reimbursement for commissioners.
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(b) Tax penalties or fines issued against the public
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utility.
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(c) Investor-relations expenses.
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(d) Advertising or public relations expenses that do not
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directly relate to a purpose or program that is required or
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authorized under law or commission rule or order. Such expenses
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include any of the following:
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1. Communications to promote the public utility’s brand.
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2. Expenses related to lobbying or other activities meant
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to influence the outcome of legislation.
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(e) Organizational or membership dues, or other
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contributions, to any organization, association, institution,
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corporation, or other entity that engages in lobbying or similar
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activities intended to influence the outcome of any local,
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state, or federal legislation, ordinance, resolution, rule,
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ballot measure, or other regulatory decision, including, but not
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limited to, business or industry trade associations.
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(f) Any amount expended to compensate attorneys or
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technical experts, who are not public utility company staff, to
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prepare and litigate a general rate case filing. The commission
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shall adopt rules for determining whether additional costs
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associated with rate case filings are recoverable.
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(6)(a) If the commission determines that a utility
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improperly recovered costs pursuant to subsection (5), the
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commission must order the utility to refund the amount
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improperly recovered, plus interest, to customers. Upon such
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determination, the commission may also assess a nonrecoverable
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penalty against the utility. The penalty may not exceed the
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greater of the following:
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1. Three times the amount of the expenditure made in
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violation of paragraph (5)(a).
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2. A fine of $5,000 per violation of paragraph (5)(a) or
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paragraph (5)(b), which may be inflation-adjusted annually.
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(b) If the commission determines that a utility, or any of
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its subsidiaries, has violated any provision of this section,
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the commission may refer the case to the Attorney General. The
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Attorney General may bring action to obtain any appropriate
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relief.
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Section 3. Present subsection (4) of section 366.06,
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Florida Statutes, is redesignated as subsection (5), and a new
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subsection (4) is added to that section, to read:
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366.06 Rates; procedure for fixing and changing.—
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(4) The commission shall ensure that the allowable return
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on equity for public utilities does not exceed the national
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average authorized return on equity for comparable public
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utilities across the country.
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Section 4. Section 366.07, Florida Statutes, is amended to
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read:
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366.07 Rates; adjustment.—
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(1) Whenever the commission, after public hearing either
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upon its own motion or upon complaint, finds that any of shall
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find the rates, rentals, charges , or classifications , or any of
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them, proposed, demanded, observed, charged , or collected by any
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public utility for any service, or in connection therewith, or
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any of the rules, regulations, measurements, practices , or
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contracts , or any of them, relating thereto, are unjust,
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unreasonable, insufficient, excessive, or unjustly
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discriminatory or preferential, or in anywise in violation of
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law, or any service is inadequate or cannot be obtained, the
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commission shall determine and by order fix the fair and
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reasonable rates, rentals, charges , or classifications, and
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reasonable rules, regulations, measurements, practices,
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contracts , or service, to be imposed, observed, furnished , or
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followed in the future.
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(2) Any form of cost-tracking mechanism for a public
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utility to recover electricity supply costs must provide for a
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sharing of those costs whereby customers are responsible for not
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more than 80 percent of any cost and the public utility is
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responsible for not less than 20 percent of any cost, in
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accordance with s. 366.81(4)(a), (b) and (c).
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Section 5. Section 366.81, Florida Statutes, is amended to
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read:
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366.81 Legislative findings and intent.—
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(1) The Legislature finds and declares that it is critical
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to use utilize the most efficient and cost-effective demand-side
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renewable energy systems and conservation systems in order to
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protect the health, prosperity, and general welfare of the state
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and its citizens. Reduction in, and control of, the growth rates
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of electric consumption and of weather-sensitive peak demand are
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of particular importance.
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(2) The Legislature further finds that the Florida Public
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Service Commission is the appropriate agency to adopt goals and
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approve plans related to the promotion of demand-side renewable
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energy systems and the conservation of electric energy and
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natural gas usage.
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(3) The Legislature directs the commission to develop and
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adopt overall goals , and authorizes the commission to require
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each utility to develop plans and implement programs for
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increasing energy efficiency and conservation and demand-side
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renewable energy systems within its service area, subject to the
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approval of the commission.
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(4) The Legislature directs the commission to develop and
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adopt performance- and incentive-based rules, multiyear rate
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plans, and other regulatory mechanisms, to achieve fair, just,
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reasonable, and sufficient rates for electric utilities. The
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rules must:
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(a) Align the financial incentives of an electric utility
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with the interests of the utility’s customers regarding incurred
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fuel costs;
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(b) Protect customers from the volatility of fuel costs and
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improve an electric utility’s management of fuel costs;
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(c) Ensure that the electric utilities provide their
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rationale for the metrics used to establish fuel costs;
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(d) Establish performance incentives and penalty mechanisms
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that link an electric utility’s return on equity to the
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achievement of performance metrics related to energy efficiency,
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grid reliability, and cost effectiveness;
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(e) Require reduction of an electric utility’s return on
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equity by 10 basis points per percent deviation upon such
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utility’s failure to operate within a 10 percent margin of the
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annual national average for electricity consumption, as measured
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by the United States Energy Information Administration, through
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energy cost efficiency; and
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(f) Provide guidelines for a 50-50 debt-to-equity ratio
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structure for electric utilities.
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(5) Since solutions to this state’s our energy problems are
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complex, the Legislature intends that the use of solar energy,
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renewable energy sources, highly efficient systems,
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cogeneration, and load-control systems be encouraged.
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Accordingly, in exercising its jurisdiction, the commission may
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shall not approve any rate or rate structure which discriminates
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against any class of customers on account of the use of such
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facilities, systems, or devices.
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(6) This expression of legislative intent may shall not be
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construed to preclude experimental rates, rate structures, or
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programs.
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(7) The Legislature further finds and declares that ss.
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366.80-366.83 and 403.519 must are to be liberally construed in
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order to meet the complex problems of reducing and controlling
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the growth rates of electric consumption and reducing the growth
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rates of weather-sensitive peak demand; increasing the overall
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efficiency and cost-effectiveness of electricity and natural gas
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production and use; encouraging further development of demand
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side renewable energy systems; and conserving expensive
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resources, particularly petroleum fuels.
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Section 6. Paragraph (b) of subsection (5) of section
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377.814, Florida Statutes, is amended to read:
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377.814 Municipal Solid Waste-to-Energy Program.—
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(5) FUNDING.—
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(b) Funds awarded under the grant programs set forth in
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this section may not be used to support, subsidize, or enable
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the sale of electric power generated by a municipal solid waste
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to-energy facility to any small electric utility eligible to
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petition the commission under s. 366.06(5) s. 366.06(4) .
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Section 7. This act shall take effect July 1, 2026.