CS for CS for SB 1472                            Third Engrossed
       
       
       
       
       
       
       
       
       20131472e3
       
    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; providing
   10         that the commission may not determine that a utility
   11         intends to complete construction of a power plant
   12         unless the utility proves its efforts by a
   13         preponderance of the evidence; providing an effective
   14         date.
   15  
   16  Be It Enacted by the Legislature of the State of Florida:
   17  
   18         Section 1. Subsections (1), (2), and (3) of section 366.93,
   19  Florida Statutes, are amended to read:
   20         366.93 Cost recovery for the siting, design, licensing, and
   21  construction of nuclear and integrated gasification combined
   22  cycle power plants.—
   23         (1) As used in this section, the term:
   24         (a) “Cost” includes, but is not limited to, all capital
   25  investments, including rate of return, any applicable taxes, and
   26  all expenses, including operation and maintenance expenses,
   27  related to or resulting from the siting, licensing, design,
   28  construction, or operation of the nuclear power plant, including
   29  new, expanded, or relocated electrical transmission lines or
   30  facilities of any size which that are necessary thereto, or of
   31  the integrated gasification combined cycle power plant.
   32         (b) “Electric utility” or “utility” has the same meaning as
   33  that provided in s. 366.8255(1)(a).
   34         (c) “Integrated gasification combined cycle power plant” or
   35  “plant” means an electrical power plant as defined in s.
   36  403.503(14) which that uses synthesis gas produced by integrated
   37  gasification technology.
   38         (d) “Nuclear power plant” or “plant” means an electrical
   39  power plant as defined in s. 403.503(14) which that uses nuclear
   40  materials for fuel.
   41         (e) “Power plant” or “plant” means a nuclear power plant or
   42  an integrated gasification combined cycle power plant.
   43         (f) “Preconstruction” is that period of time after a site,
   44  including any related electrical transmission lines or
   45  facilities, has been selected through and including the date the
   46  utility completes site clearing work. Preconstruction costs must
   47  shall be afforded deferred accounting treatment and shall accrue
   48  a carrying charge equal to the utility’s allowance for funds
   49  during construction (AFUDC) rate until recovered in rates.
   50         (2) Within 6 months after the enactment of this act, the
   51  commission shall establish, by rule, alternative cost recovery
   52  mechanisms for the recovery of costs incurred in the siting,
   53  design, licensing, and construction of a nuclear power plant,
   54  including new, expanded, or relocated electrical transmission
   55  lines and facilities that are necessary thereto, or of an
   56  integrated gasification combined cycle power plant. Such
   57  mechanisms must shall be designed to promote utility investment
   58  in nuclear or integrated gasification combined cycle power
   59  plants and allow for the recovery in rates of all prudently
   60  incurred costs, including and shall include, but not be limited
   61  to:
   62         (a) Recovery through the capacity cost recovery clause of
   63  any preconstruction costs.
   64         (b) Recovery through an incremental increase in the
   65  utility’s capacity cost recovery clause rates of the carrying
   66  costs on the utility’s projected construction cost balance
   67  associated with the nuclear or integrated gasification combined
   68  cycle power plant. To encourage investment and provide
   69  certainty, for nuclear or integrated gasification combined cycle
   70  power plant need petitions submitted on or before December 31,
   71  2010, associated carrying costs must shall be equal to the most
   72  recently approved pretax AFUDC at the time an increment of cost
   73  recovery is sought in effect upon this act becoming law. For
   74  nuclear or integrated gasification combined cycle power plants
   75  for which need petitions are submitted after December 31, 2010,
   76  the utility’s existing pretax AFUDC rate is presumed to be
   77  appropriate unless determined otherwise by the commission in the
   78  determination of need for the nuclear or integrated gasification
   79  combined cycle power plant.
   80         (3)(a) After a petition for determination of need is
   81  granted, a utility may petition the commission for cost recovery
   82  as permitted by this section and commission rules.
   83         (b)During the time that a utility seeks to obtain a
   84  combined license from the Nuclear Regulatory Commission for a
   85  nuclear power plant or a certification for an integrated
   86  gasification combined cycle power plant, the utility may recover
   87  only costs related to, or necessary for, obtaining such
   88  licensing or certification.
   89         (c) After a utility obtains a license or certification, it
   90  must petition the commission for approval before proceeding with
   91  preconstruction work beyond those activities necessary to obtain
   92  or maintain a license or certificate.
   93         1. The only costs that a utility that has obtained a
   94  license or certification may recover before obtaining commission
   95  approval are those that are previously approved or necessary to
   96  maintain the license or certification.
   97         2. In order for the commission to approve preconstruction
   98  work on a plant, it must determine that:
   99         a. The plant remains feasible; and
  100         b. The projected costs for the plant are reasonable.
  101         (d) After a utility obtains approval to proceed with
  102  postlicensure or postcertification preconstruction work, it must
  103  petition the commission for approval of any preconstruction
  104  materials or equipment purchases that exceed 1 percent of the
  105  total projected cost for the project. Such petition shall be
  106  reviewed and completed in the annual Nuclear Cost Recovery
  107  Clause proceeding in which it is filed or in a separate
  108  proceeding by the utility.
  109         (e) A utility must petition the commission for approval
  110  before beginning the construction phase.
  111         1. The only costs that a utility that has obtained
  112  commission approval may recover before beginning construction
  113  work are those that are previously approved or necessary to
  114  maintain the license or certification.
  115         2. In order for the commission to approve proceeding with
  116  construction on a plant, it must determine that:
  117         a. The plant remains feasible; and
  118         b. The projected costs for the plant are reasonable.
  119         (f)1. If a utility has not begun construction of a plant
  120  within:
  121         a. Ten years after the date on which the utility obtains a
  122  combined license from the Nuclear Regulatory Commission for a
  123  nuclear power plant or a certification for an integrated
  124  gasification combined cycle power plant, the utility must
  125  petition the commission to preserve the opportunity for future
  126  recovery under this section for costs relating to that plant.
  127  The commission must determine whether the utility remains intent
  128  on building the plant.
  129         (I) If the commission finds that the utility remains intent
  130  on building the plant, the utility may continue to recover costs
  131  under this section.
  132         (II) If the commission finds a lack of such intent, it may
  133  enter an order prohibiting recovery of any future costs relating
  134  to the plant under this section.
  135         b. Twenty years after the date on which the utility obtains
  136  a combined license from the Nuclear Regulatory Commission for a
  137  nuclear power plant or a certification for an integrated
  138  gasification combined cycle power plant, the utility may not,
  139  under this section, recover future costs relating to that plant.
  140         2. Consistent with subsection (4), nothing in this section
  141  shall preclude a utility from recovering the full revenue
  142  requirements of the nuclear power plant or integrated
  143  gasification combined cycle power plant in base rates upon the
  144  commercial in-service date.
  145         3. Beginning January 1, 2014, in making its determination
  146  for any cost recovery under this paragraph, the commission may
  147  find that a utility intends to construct a nuclear or integrated
  148  gasification combined cycle power plant only if the utility
  149  proves by a preponderance of the evidence that it has committed
  150  sufficient, meaningful, and available resources to enable the
  151  project to be completed and that its intent is realistic and
  152  practical.
  153         Section 2. This act shall take effect July 1, 2013.