Florida Senate - 2014 COMMITTEE AMENDMENT
Bill No. CS for SB 272
Ì3825543Î382554
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
02/04/2014 .
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following:
1 Senate Amendment (with title amendment)
2
3
4
5 Delete everything after the enacting clause
6 and insert:
7 Section 1. Section 367.072, Florida Statutes, is created to
8 read:
9 367.072 Petition to revoke certificate of authorization.
10 The Legislature finds that it is in the public interest that
11 water and wastewater service be of good quality and consistent
12 with the standards set forth in this chapter. Therefore, a
13 utility’s certificate of authorization may be revoked if, after
14 its customers file a petition in accordance with this section,
15 the commission finds that revocation is in the best interest of
16 the customers.
17 (1) Customers must file a notice of intent with the
18 commission before filing a petition. Within 10 days after
19 receipt of a notice of intent, the commission staff shall:
20 (a) Notify the applicable utility that its customers have
21 filed a notice of intent; and
22 (b) Send the customers instructions detailing the required
23 format and content of the petition and the subsequent process
24 the commission must follow.
25 (2) Within 90 days after receipt of such instructions, the
26 customers must file a petition that, for the purpose of
27 determining whether a utility is providing satisfactory water
28 quality or wastewater service, must:
29 (a) State with specificity each issue that the customers
30 have with the water quality or wastewater service, each time the
31 problem was reported to the utility, and how long each issue has
32 existed; and
33 (b) Be signed by at least 65 percent of a utility’s
34 customers within a system. The term “customer” means an
35 individual who owns or rents property that is serviced by a
36 single meter or an individual whose name appears on the bill for
37 a master meter. Only one signature for each service address may
38 be included on the petition. An individual whose name appears on
39 the bill for a master meter may sign a petition if at least 65
40 percent of the heads of the households served by the master
41 meter, such as tenants or unit owners, support the petition, in
42 which case documentation of such support must be included with
43 the petition.
44 (3) The commission shall review the petition and, within 10
45 days after receipt, notify the customers whether the petition is
46 sufficient or whether additional information is required. If
47 additional information is required, the customers must file a
48 cured petition within 30 days after receipt of the notification.
49 If the customers fail to file the petition in accordance with
50 this subsection, the commission shall dismiss the petition, and
51 the customers may not file another petition for 1 year after the
52 date of dismissal.
53 (4) If the petition is in compliance with this section and
54 the issues identified within the petition support a reasonable
55 likelihood that the water or wastewater utility is failing to
56 provide quality water or wastewater service, a docket shall be
57 opened. Once opened, the utility may not file for a rate case
58 until the docket is closed.
59 (5) A copy of the petition and written notification
60 regarding the prohibition against filing a rate case while the
61 docket remains open must be provided to the utility. The utility
62 shall submit a response to the commission addressing the issues
63 identified within the petition and explaining whether it is
64 providing quality water or wastewater service using the
65 following criteria:
66 (a) Federal and state primary water and wastewater
67 standards or secondary water quality or wastewater service
68 standards provided in s. 367.0812; and
69 (b) The relationship between the utility and its customers,
70 including each complaint received regarding service quality, the
71 length of time each customer has been complaining about service,
72 the resolution of each complaint, and the time it has taken to
73 address such complaints.
74 (6) The commission shall evaluate the issues identified
75 within the petition, the utility’s response as to whether it is
76 providing quality water or wastewater service, and any other
77 factor the commission deems relevant.
78 (7) Notwithstanding s. 367.045 and based upon its
79 evaluation, the commission shall:
80 (a) Dismiss the petition if the decision is supported by
81 clear and convincing evidence, in which case the decision is
82 subject to ss. 120.569 and 120.57;
83 (b) Place the utility’s certificate on probationary status
84 and require the utility to take the necessary steps to correct
85 the water quality or wastewater service issues identified. The
86 commission shall set benchmarks within a timeframe, not to
87 exceed 3 years, and may require the utility to provide interim
88 reports describing its progress in meeting such benchmarks. The
89 commission may extend the timeframe for compliance beyond 3
90 years if the circumstances that delay the utility, such as
91 obtaining permits or natural disaster, are not within the
92 utility’s control; or
93 (c) Revoke the utility’s certificate of authorization, in
94 which case a receiver must be appointed pursuant to s. 367.165
95 until a sale of the utility system has been approved pursuant to
96 s. 367.071.
97 (8) The commission shall adopt by rule the format of and
98 requirements for a petition and may adopt other rules to
99 administer this section.
100 Section 2. Section 367.0812, Florida Statutes, is created
101 to read:
102 367.0812 Rate fixing; quality of water or wastewater
103 service as criterion.—
104 (1) In fixing rates that are just, reasonable,
105 compensatory, and not unfairly discriminatory, the commission
106 shall consider the extent to which the utility provides water
107 service that meets secondary water quality standards for taste,
108 odor, color, or corrosiveness, as established by the Department
109 of Environmental Protection. In determining whether a utility
110 has satisfied its obligation to provide water service to its
111 customers which meets the standards for taste, odor, color, or
112 corrosiveness, the commission shall consider:
113 (a) Testimony and evidence provided by customers and the
114 utility;
115 (b) The results of past tests required by the Department of
116 Environmental Protection which measure the utility’s compliance
117 with the applicable secondary water quality standards or with a
118 county health department;
119 (c) Complaints regarding the applicable secondary water
120 quality standards filed by customers with the commission or the
121 Department of Environmental Protection, or the respective local
122 governmental entity, or a county health department during the
123 past 5 years; and
124 (d) If the commission deems necessary, the results of any
125 updated test.
126 (2) In fixing just, reasonable, compensatory, and not
127 unfairly discriminatory rates, the commission shall consider the
128 extent to which the utility provides wastewater service to its
129 customers without generating odor, noise, aerosol drift, or
130 lighting in excess of the standards established by the
131 Department of Environmental Protection. In determining the
132 extent to which the utility provides wastewater service to its
133 customers without generating odor, noise, aerosol drift, or
134 lighting in excess of the standards by the Department of
135 Environmental Protection, the commission shall consider:
136 (a) Testimony and evidence provided by customers and the
137 utility;
138 (b) The results of past tests required by the Department of
139 Environmental Protection which measure the utility’s compliance
140 with the applicable standards established by the Department of
141 Environmental Protection; and
142 (c) Complaints regarding the alleged odor, noise, aerosol
143 drift, or lighting filed with the Department of Environmental
144 Protection or the commission, or the respective local
145 governmental entity, or a county health department during the
146 past 5 years.
147 (3)(a) In determining the quality of water or wastewater
148 service, the commission shall consider a finding by the
149 department as to whether a utility:
150 1. Has failed to provide water service that meets the
151 secondary water quality standards of the department regarding
152 taste, odor, color, or corrosiveness; or
153 2. Has generated odor, noise, aerosol drift, or lighting in
154 providing wastewater service in excess of the standards
155 established by the Department of Environmental Protection,
156
157 the utility shall create an estimate of the costs and benefits
158 of a plausible solution to each quality of water or wastewater
159 service issue identified by the commission.
160 (b) The utility shall meet with its customers within a time
161 prescribed by the commission to discuss the estimated costs and
162 benefits of and time necessary for implementing a plausible
163 solution for each quality of service issue identified, and the
164 utility shall report the results of such meeting to the
165 commission.
166 (c) The utility shall inform the commission if:
167 1. The customers and the utility agree on a solution for
168 each quality of service issue identified, what the solution is,
169 and the cost of the solution; or
170 2. The customers and the utility prefer a different
171 solution to at least one of the quality of service issues
172 identified and the solution and cost of the solution preferred
173 by each.
174 (d) The commission may require the utility to implement a
175 solution that is in the best interest of the customers for each
176 quality of service issue. The utility shall be allowed to
177 recover the costs of the solutions ordered by the commission.
178 The commission may establish the necessary benchmarks that a
179 utility must meet for each solution and require the utility to
180 report periodically until each solution is completed.
181 (4) Notwithstanding s. 367.072, customers may not petition
182 the commission to revoke the certificate of authorization of a
183 utility during the proceedings under this section.
184 (5) The commission may prescribe penalties for a utility’s
185 failure to adequately resolve each quality of water or
186 wastewater service issue as required. Penalties may include
187 fines as provided in s. 367.161; a reduction of return on equity
188 of up to 100 basis points; the denial of all or part of a rate
189 increase for a utility’s system or part of a system if the
190 commission determines that the water quality is less than
191 satisfactory, until the water quality is found to be
192 satisfactory; or cancellation of the certificate of
193 authorization under s. 367.072.
194 (6) The commission shall adopt rules to assess and enforce
195 compliance with this section. The Department of Environmental
196 Protection shall establish secondary wastewater service
197 standards regarding the generation of odor, noise, aerosol
198 drift, and lighting.
199 Section 3. This act shall take effect October 1, 2014.
200
201 ================= T I T L E A M E N D M E N T ================
202 And the title is amended as follows:
203 Delete everything before the enacting clause
204 and insert:
205 A bill to be entitled
206 An act relating to water and wastewater utilities;
207 creating s. 367.072, F.S.; providing legislative
208 findings; authorizing the Florida Public Service
209 Commission to revoke a certificate of authorization
210 upon receipt of a petition; requiring customers to
211 file a notice of intent with the commission before
212 submitting a petition; providing criteria for such
213 petition; requiring the commission to take certain
214 steps in response to the petition; prohibiting the
215 customers from filing a petition within a specified
216 timeframe under certain circumstances; prohibiting a
217 utility from filing for a rate case under certain
218 circumstances; requiring the utility to submit a
219 response; requiring the commission to adopt rules;
220 creating s. 367.0812, F.S.; requiring the commission
221 to consider the quality of water or wastewater service
222 when fixing rates; providing criteria that the
223 commission must consider in making its determination;
224 requiring the utility to meet with its customers to
225 discuss the costs and benefits of plausible solutions
226 if the commission finds that the utility has failed to
227 meet certain water or wastewater quality standards;
228 requiring that the utility be allowed to recover the
229 costs of the solutions ordered by the commission;
230 prohibiting customers from petitioning the commission
231 to revoke the certificate of authorization of a
232 utility under certain circumstances; authorizing the
233 commission to impose penalties on a utility for
234 certain failures; requiring the commission to adopt
235 rules; requiring the Department of Environmental
236 Protection to establish secondary wastewater service
237 standards regarding the generation of odor, noise,
238 aerosol drift, and lighting; providing an effective
239 date.