SESSION WATCH
Died SENATE · SESSION 2026

No. SB 1532

Florida Public Service Commission
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SPONSOR
Smith
FILED BY
Carlos Guillermo Smith — District 17, Democrat [search donations]
EFFECTIVE
7/1/2026
DIED IN
Regulated Industries

Filed under Environment & Water.

PROVIDED SUMMARY

Florida Public Service Commission; Requiring the commission to implement specified measures to improve transparency and accountability; requiring the commission to ensure that public utilities do not recover certain costs from ratepayers regardless of whether such costs take a specified form; requiring the commission to ensure that the allowable return on equity for public utilities does not exceed certain metrics; requiring that certain cost-tracking mechanisms for a public utility to recover changes in electric supply costs provide a specified cost-sharing structure, etc.

Full bill text →

Plain English Summary

AI-GENERATED
Forces utilities to absorb part of rising fuel and supply costs.

The bill bars public utilities from billing ratepayers for several specific costs: more than half of "commissioner" compensation, tax penalties or fines, investor-relations spending, brand advertising, dues to lobbying groups, and outside lawyers hired for rate cases.

A separate provision caps the return on equity the commission may allow any public utility at the national average for comparable utilities, tying Florida profit margins to what regulators approve elsewhere in the country.

Any mechanism a utility uses to recover changes in electricity supply or fuel costs must now split that cost at least 80 percent to customers and 20 percent to the utility itself, instead of passing the full amount through.

The commission must also hold more public hearings, publish utility executives' pay, and write new rules linking each utility's allowed return to performance metrics like grid reliability and energy efficiency, including a suggested 50-50 debt-to-equity structure.

KEY PROVISIONS
§ 1 Bars ratepayer recovery of lobbying, PR, and executive-pay costs majors. 366.041

AIPublic utilities may not recover from ratepayers, through base rates or any rider, more than 50 percent of compensation or expense reimbursement for "commissioners," tax penalties or fines, investor-relations expenses, brand advertising, or dues to lobbying organizations.

“public utilities do not recover any of the following costs from ratepayers, whether as part of the proposed base rate costs” bill text, line 116 →
§ 2 Return on equity capped at the national average majors. 366.06

AIThe commission must ensure no public utility is allowed a return on equity higher than the national average authorized for comparable utilities elsewhere, replacing case-by-case discretion with an external benchmark.

“the allowable return on equity for public utilities does not exceed the national average authorized return on equity for comparable public utilities” bill text, line 17 →
§ 3 Fuel and supply cost trackers must share costs at least 80/20 majors. 366.07

AIAny cost-tracking mechanism a utility uses to recover changes in electricity supply costs must limit customers to no more than 80 percent of the cost and require the utility to absorb at least 20 percent, ending full pass-through.

“customers are responsible for not more than 80 percent of any cost and the public utility is responsible for not less than 20 percent” bill text, line 188 →
§ 4 Commission directed to write performance-based rate rules majors. 366.81

AIThe Legislature directs the commission to adopt rules linking a utility's allowed return on equity to performance metrics such as grid reliability and energy efficiency, and to provide guidelines for a 50-50 debt-to-equity capital structure.

“Establish performance incentives and penalty mechanisms that link an electric utility's return on equity to the achievement of performance metrics” bill text, line 225 →
§ 5 Improper cost recovery triggers mandatory refunds and penalties majors. 366.041

AIIf the commission finds a utility improperly billed ratepayers for a banned cost, it must order a refund plus interest, may impose an additional penalty, and may refer the matter to the Attorney General for further action.

“the commission must order the utility to refund the amount improperly recovered, plus interest, to customers” bill text, line 145 →
§ 6 New public hearing and executive-pay disclosure requirements moderates. 366.03

AIThe commission must ensure utilities hold in-person public hearings scaled to customer count, and make public the compensation of each utility's executive officers or the officers of its subsidiaries.

“At least one in-person public service hearing per every 250,000 customers, held in a reasonable location near those customers” bill text, line 55 →
TIMELINE
3/13/2026
Died in Regulated Industries
1/22/2026
Introduced
1/16/2026
Referred to Regulated Industries; Appropriations Committee on...
1/9/2026
Filed
STATUTES IT CHANGES
s. 366.03
+149 / −6
s. 366.041
+371 / −26
s. 366.06
+31 / −0
s. 366.07
+72 / −14
s. 366.81
+201 / −6
s. 377.814
+2 / −2