HB 1289

1	A bill to be entitled
2	An act relating to electric utilities; amending s. 366.04,
3	F.S.; requiring the Public Service Commission to adopt
4	rules establishing standards for distribution equipment
5	and facilities for electric utilities; establishing review
6	requirements; requiring utilities to report to the
7	commission; authorizing the commission to impose sanctions
8	against a utility for noncompliance with the adopted
9	standards; providing an effective date.
10
11	Be It Enacted by the Legislature of the State of Florida:
12
13	Section 1.  Subsection (2) of section 366.04, Florida
14	Statutes, is amended to read:
15	366.04  Jurisdiction of commission.--
16	(2)  In the exercise of its jurisdiction, the commission
17	shall have power over electric utilities for the following
18	purposes:
19	(a)  To prescribe uniform systems and classifications of
20	accounts.
21	(b)  To prescribe a rate structure for all electric
22	utilities.
23	(c)  To require electric power conservation and reliability
24	within a coordinated grid, for operational as well as emergency
25	purposes.
26	(d)  To approve territorial agreements between and among
27	rural electric cooperatives, municipal electric utilities, and
28	other electric utilities under its jurisdiction. However,
29	nothing in this chapter shall be construed to alter existing
30	territorial agreements as between the parties to such
31	agreements.
32	(e)  To resolve, upon petition of a utility or on its own
33	motion, any territorial dispute involving service areas between
34	and among rural electric cooperatives, municipal electric
35	utilities, and other electric utilities under its jurisdiction.
36	In resolving territorial disputes, the commission may consider,
37	but not be limited to consideration of, the ability of the
38	utilities to expand services within their own capabilities and
39	the nature of the area involved, including population, the
40	degree of urbanization of the area, its proximity to other urban
41	areas, and the present and reasonably foreseeable future
42	requirements of the area for other utility services.
43	(f)  To prescribe and require the filing of periodic
44	reports and other data as may be reasonably available and as
45	necessary to exercise its jurisdiction hereunder.
46	(g)  To adopt by rule standards for inspection,
47	maintenance, repair, and replacement for the distribution
48	systems of electric utilities in this state by January 1, 2007.
49	The standards for each type of distribution equipment or
50	facility must provide for high-quality, safe, and reliable
51	service.
52	1.  In setting standards, the commission shall consider the
53	cost of inspections, local geography and weather, applicable
54	codes, national practices in the electric industry, sound
55	engineering judgment, and experience. The commission shall also
56	adopt standards for operation, reliability, and safety during
57	periods of emergency or natural disaster. Each utility shall
58	report annually to the commission on its compliance with the
59	standards.
60	2.  The commission shall conduct a review of each affected
61	utility after every major outage to determine whether the
62	standards have been met. If the commission finds that the
63	standards have not been met, it may order appropriate sanctions,
64	including penalties in the form of rate reductions or monetary
65	fines.
66
67	No provision of this chapter shall be construed or applied to
68	impede, prevent, or prohibit any municipally owned electric
69	utility system from distributing at retail electrical energy
70	within its corporate limits, as such corporate limits exist on
71	July 1, 1974; however, existing territorial agreements shall not
72	be altered or abridged hereby.
73	Section 2.  This act shall take effect July 1, 2006.

CODING: Words stricken are deletions; words underlined are additions.