Florida Senate - 2016                        COMMITTEE AMENDMENT
       Bill No. CS for CS for SB 534
       
       
       
       
       
       
                                Ì613326ÂÎ613326                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/01/2016           .                                
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       The Committee on Appropriations (Hays) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 215 - 285
    4  and insert:
    5         (a) In determining the reasonable level of rate case
    6  expense, the commission shall consider the following criteria as
    7  a basis for disallowing such rate case expense when the criteria
    8  are specifically raised in writing by the Public Counsel, an
    9  intervenor, or commission staff:
   10         1. The extent to which a utility has utilized or failed to
   11  utilize the provisions of paragraph (4)(a) or paragraph (4)(b).
   12         2. Whether the customers have received a material benefit
   13  as a result of the rate case.
   14         3. The amount of time between each rate case.
   15         4. The extent to which, at the time of the initial filing,
   16  the utility filed complete documentation as required by
   17  commission rule, including, but not limited to, minimum filing
   18  requirements.
   19         5. Whether the utility’s rate case filing seeks
   20  preferential benefits to shareholders, owners, or nonregulated
   21  affiliates.
   22         6. The proportion of any rate increase approved by the
   23  commission as compared to the amount initially requested by the
   24  utility.
   25         7. The amount of overall rate case expense incurred and
   26  requested as compared to the amount of rate increase approved by
   27  the commission.
   28         8.The utility management’s culpability in causing any
   29  deficiencies in the quality of service provided by the utility.
   30         9. Such other criteria as the commission it may establish
   31  by rule.
   32         (b) If any of the criteria specified under paragraph (a)
   33  are specifically contested in an evidentiary proceeding, the
   34  commission shall make specific findings of fact, supported by
   35  competent, substantial evidence, for each criterion and the
   36  extent to which each criterion benefits the customer. The
   37  commission may allocate the benefits between the customers and
   38  the shareholders, owners, or affiliates accordingly and disallow
   39  rate case expense in accordance with the specific findings of
   40  fact.
   41         Section 5. Subsection (3) of section 367.0814, Florida
   42  Statutes, is amended to read:
   43         367.0814 Staff assistance in changing rates and charges;
   44  interim rates.—
   45         (3) The provisions of s. 367.081(1), (2)(a), and (3) shall
   46  apply in determining the utility’s rates and charges. However,
   47  the commission may not award rate case expenses to recover
   48  attorney fees or fees of other outside consultants who are
   49  engaged for the purpose of preparing or filing the case if a
   50  utility receives staff assistance in changing rates and charges
   51  pursuant to this section, unless the Office of Public Counsel or
   52  interested parties have intervened. The commission may award
   53  rate case expenses for attorney fees or fees of other outside
   54  consultants if such fees are incurred for the purpose of
   55  providing consulting or legal services to the utility after the
   56  initial staff report is made available to customers and the
   57  utility. If there is a protest or an appeal by a party other
   58  than the utility, the commission may award rate case expenses to
   59  the utility for attorney fees or fees of other outside
   60  consultants for costs incurred after the protest or appeal. By
   61  December 31, 2016, the commission shall adopt rules to
   62  administer this subsection.
   63         Section 6. Section 367.0816, Florida Statutes, is amended
   64  to read:
   65         367.0816 Recovery of rate case expenses.—
   66         (1) The amount of rate case expense determined by the
   67  commission pursuant to the provisions of this chapter to be
   68  recovered through a public utility’s utilities rate shall be
   69  apportioned for recovery over a period of 4 years, unless a
   70  longer period can be justified and is in the public interest. At
   71  the conclusion of the recovery period, the rate of the public
   72  utility shall be reduced immediately by the amount of rate case
   73  expense previously included in the rates.
   74         (2)A utility may not earn a return on the unamortized
   75  balance of rate case expense. Any unamortized balance of rate
   76  case expense shall be excluded in calculating the utility rate
   77  base.
   78  
   79  ================= T I T L E  A M E N D M E N T ================
   80  And the title is amended as follows:
   81         Delete lines 25 - 34
   82  and insert:
   83         consider certain criteria, when specifically raised in
   84         writing by certain parties; specifying standards for
   85         evidentiary proceeding involving challenges to such
   86         criteria; authorizing the commission to allocate
   87         benefits between the customers, shareholders, owners,
   88         or affiliates and to disallow rate case expense under
   89         certain circumstances; amending s. 367.0814, F.S.;
   90         prohibiting the commission from awarding rate case
   91         expenses to recover attorney fees or fees of other
   92         outside consultants in certain circumstances;
   93         providing exceptions; requiring the commission to
   94         adopt rules by a certain date; amending s. 367.0816,
   95         F.S.; providing an exception to the provision
   96         requiring rate case expense recovery to be apportioned
   97         over 4 years; prohibiting a utility from earning a
   98         return on the unamortized balance of rate case
   99         expense; excluding such expenses from rate bases;