Florida Senate - 2013 CS for SB 1472
By the Committee on Communications, Energy, and Public
Utilities; and Senators Legg, Latvala, Simpson, and Brandes
1 A bill to be entitled
2 An act relating to nuclear and integrated gasification
3 combined cycle power plants; amending s. 366.93, F.S.;
4 modifying an alternative cost recovery mechanism for
5 the recovery of costs for the siting, design,
6 licensing, and construction of nuclear and integrated
7 gasification combined cycle power plants; establishing
8 a procedure and requirements for cost recovery based
9 on preconstruction and construction phases; requiring
10 the Public Service Commission to review the
11 circumstances surrounding a proposed nuclear power
12 plant if the anticipated cost and completion date
13 exceed the original cost and completion date by a
14 certain amount or period; specifying factors to be
15 considered and dates by which the review must commence
16 and be completed; providing an effective date.
18 Be It Enacted by the Legislature of the State of Florida:
20 Section 1. Subsections (1) through (3) of section 366.93,
21 Florida Statutes, are amended to read:
22 366.93 Cost recovery for the siting, design, licensing, and
23 construction of nuclear and integrated gasification combined
24 cycle power plants.—
25 (1) As used in this section, the term:
26 (a) “Cost” includes, but is not limited to, all capital
27 investments, including rate of return, any applicable taxes, and
28 all expenses, including operation and maintenance expenses,
29 related to or resulting from the siting, licensing, design,
30 construction, or operation of the nuclear power plant, including
31 new, expanded, or relocated electrical transmission lines or
32 facilities of any size which
that are necessary thereto, or of
33 the integrated gasification combined cycle power plant.
34 (b) “Electric utility” or “utility” has the same meaning as
35 that provided in s. 366.8255(1)(a).
36 (c) “Integrated gasification combined cycle power plant” or
37 “plant” means an electrical power plant as defined in s.
38 403.503(14) which that uses synthesis gas produced by integrated
39 gasification technology.
40 (d) “Nuclear power plant” or “plant” means an electrical
41 power plant as defined in s. 403.503(14) which that uses nuclear
42 materials for fuel.
43 (e) “Power plant” or “plant” means a nuclear power plant or
44 an integrated gasification combined cycle power plant.
45 (f) “Preconstruction” is that period of time after a site,
46 including any related electrical transmission lines or
47 facilities, has been selected through and including the date the
48 utility completes site clearing work. Preconstruction costs must
49 shall be afforded deferred accounting treatment and shall accrue
50 a carrying charge equal to the utility’s allowance for funds
51 during construction (AFUDC) rate until recovered in rates.
52 (2) Within 6 months after the enactment of this act, the
53 commission shall establish, by rule, alternative cost recovery
54 mechanisms for the recovery of costs incurred in the siting,
55 design, licensing, and construction of a nuclear power plant,
56 including new, expanded, or relocated electrical transmission
57 lines and facilities that are necessary thereto, or of an
58 integrated gasification combined cycle power plant. Such
59 mechanisms must shall be designed to promote utility investment
60 in nuclear or integrated gasification combined cycle power
61 plants and allow for the recovery in rates of all prudently
62 incurred costs, including and shall include, but not be limited
64 (a) Recovery through the capacity cost recovery clause of
65 any preconstruction costs.
66 (b) Recovery through an incremental increase in the
67 utility’s capacity cost recovery clause rates of the carrying
68 costs on the utility’s projected construction cost balance
69 associated with the nuclear or integrated gasification combined
70 cycle power plant. To encourage investment and provide
71 certainty, for nuclear or integrated gasification combined cycle
72 power plant need petitions submitted on or before December 31,
73 2010, associated carrying costs must shall be equal to the most
74 recently approved pretax AFUDC at the time an increment of cost
75 recovery is sought in effect upon this act becoming law. For
76 nuclear or integrated gasification combined cycle power plants
77 for which need petitions are submitted after December 31, 2010,
78 the utility’s existing pretax AFUDC rate is presumed to be
79 appropriate unless determined otherwise by the commission in the
80 determination of need for the nuclear or integrated gasification
81 combined cycle power plant.
82 (3)(a) After a petition for determination of need is
83 granted, a utility may petition the commission for cost recovery
84 as permitted by this section and commission rules.
85 (b) During the time that a utility seeks to obtain a
86 combined license from the Nuclear Regulatory Commission for a
87 nuclear power plant or a certification for an integrated
88 gasification combined cycle power plant, the utility may recover
89 only costs related to, or necessary for, obtaining such
90 licensing or certification.
91 (c) After a utility obtains a license or certification, it
92 must petition the commission for approval before proceeding with
93 preconstruction work beyond those activities necessary to obtain
94 or maintain a license or certificate.
95 1. The only costs that a utility that has obtained a
96 license or certification may recover before obtaining commission
97 approval are those that are previously approved or necessary to
98 maintain the license or certification.
99 2. In order for the commission to approve preconstruction
100 work on a plant, it must determine that:
101 a. There is still a need for the plant; and
102 b. The projected costs for the plant are reasonable.
103 (d) After a utility obtains approval to proceed with post
104 licensing or post-certification preconstruction work, it must
105 petition the commission for approval of any preconstruction
106 materials or equipment purchases that exceed 1 percent of the
107 total projected cost for the project.
108 (e) A utility must petition the commission for approval
109 before beginning the construction phase.
110 1. The only costs that a utility that has obtained
111 commission approval may recover before beginning construction
112 work are those that are previously approved or necessary to
113 maintain the license or certification.
114 2. In order for the commission to approve proceeding with
115 construction on a plant, it must determine that:
116 a. There is still a need for the plant; and
117 b. The projected costs for the plant are reasonable.
118 (f) If a utility has not begun construction of a plant
120 1. Ten years after the date on which it obtains a combined
121 license from the Nuclear Regulatory Commission for a nuclear
122 power plant or a certification for an integrated gasification
123 combined cycle power plant, it must petition the commission to
124 preserve the opportunity for future recovery under this section
125 for costs relating to that plant. The commission must determine
126 whether the utility remains intent on building the plant.
127 a. If the commission finds that the utility remains intent
128 on building the plant, the utility may continue to recover
130 b. If the commission finds a lack of such intent, it may
131 enter an order prohibiting recovery of any future costs relating
132 to the plant, notwithstanding any other provision of law.
133 2. Twenty years after the date on which it obtains a
134 combined license from the Nuclear Regulatory Commission for a
135 nuclear power plant or a certification for an integrated
136 gasification combined cycle power plant, the utility may not
137 recover future costs relating to that plant under this or
138 another section, notwithstanding any other provision of law.
139 Section 2. The Public Service Commission shall perform a
140 comprehensive review of the continuing prudency, cost
141 effectiveness, and need for any proposed nuclear power plant for
142 which cost recovery under section 366.93, Florida Statutes, has
143 been authorized if the currently anticipated inservice date for
144 the plant has been extended more than 6 years beyond the
145 original proposed inservice date and if the most recent estimate
146 of the plant’s total cost has increased by more than 50 percent
147 of the original cost estimate for the plant. In making this
148 determination, the commission must consider all relevant
149 factors, including, but not limited to, the utility’s need for
150 the plant, technology and fuel choices, applicable federal and
151 state licensing and permitting factors, and short- and long-term
152 costs to ratepayers. Based on its review, the commission shall
153 determine whether to authorize for cost recovery under section
154 366.93, Florida Statutes, any new or future costs for which cost
155 recovery has not already been authorized. Such review shall
156 commence on or before June 1, 2013, and shall be completed by
157 February 1, 2014.
158 Section 3. This act shall take effect July 1, 2013.