Florida Senate - 2014 COMMITTEE AMENDMENT
Bill No. SB 272
Ì752326&Î752326
LEGISLATIVE ACTION
Senate . House
Comm: FAV .
01/15/2014 .
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(Simpson) recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Section 367.072, Florida Statutes, is created to
6 read:
7 367.072 Petition to revoke certificate of authorization.
8 The Legislature finds that it is in the public interest that
9 water and wastewater service be of good quality and consistent
10 with the standards set forth in this chapter. The Legislature
11 finds that the customers of a utility are in a position to
12 initially assess the quality of the water or wastewater service
13 provided. Therefore, a utility’s certificate of authorization
14 may be suspended or revoked if its customers file a petition
15 with the commission in accordance with this section.
16 (1) For the purpose of determining whether a utility is
17 providing quality water or wastewater service, a petition must:
18 (a) State with specificity each issue customers have with
19 the water or wastewater service; and
20 (b) Be signed by at least 65 percent of a system’s
21 customers. The term “customer” means an individual whose
22 property is serviced by a single meter or a person whose name
23 appears on the bill for a master meter. A person whose name
24 appears on the bill for a master meter may sign a petition if at
25 least 65 percent of the customers, tenants, or unit owners
26 served by the master meter support the petition, in which case
27 documentation of such support must be included with the
28 petition.
29 (2) Upon receipt, the commission shall review the petition
30 and determine if it is in compliance with this section and
31 whether the issues identified within the petition support a
32 finding that the water or wastewater utility is failing to
33 provide quality water or wastewater service. If the commission
34 finds that there is a reasonable likelihood that the utility is
35 not providing quality water or wastewater service, then it shall
36 submit a copy of the petition to the respective utility. The
37 utility shall submit a response to the commission addressing the
38 issues identified within the petition and explaining whether it
39 is providing quality water or wastewater service using the
40 following criteria:
41 (a) Federal, state, and local primary standards or quality
42 standards pursuant to s. 367.0812; and
43 (b) The relationship between the utility and its customers,
44 including each complaint received regarding service quality, the
45 length of time each customer has been complaining about service,
46 the resolution of each complaint, and the time it has taken to
47 address such complaints.
48 (3) The commission shall evaluate the issues identified
49 within the petition; the utility’s response as to whether it is
50 providing quality water or wastewater service; the rates of the
51 utility in comparison with other utilities of similar size and
52 operational characteristics; and any other factor the commission
53 deems relevant.
54 (4) Notwithstanding s. 367.045 and based upon its
55 evaluation, the commission shall:
56 (a) Dismiss the petition if the decision is supported by
57 competent substantial evidence, in which case the decision is
58 subject to ss. 120.569 and 120.57;
59 (b) Suspend the utility’s certificate and require the
60 utility to take the necessary steps to correct the water or
61 wastewater service issues identified. The commission shall set
62 benchmarks within a timeframe, not to exceed 3 years, and may
63 require the utility to provide interim reports describing its
64 progress in meeting such benchmarks; or
65 (c) Revoke the utility’s certificate, in which case a
66 receiver must be appointed pursuant to s. 367.165 until a sale
67 of the utility system has been approved pursuant to s. 367.071.
68 (5) The commission shall adopt by rule the format of and
69 requirements for a petition and may adopt other rules to
70 administer this section.
71 Section 2. Section 367.0812, Florida Statutes, is created
72 to read:
73 367.0812 Rate fixing; quality of water or wastewater
74 service as criterion.—
75 (1) In fixing rates that are just, reasonable,
76 compensatory, and not unfairly discriminatory, the commission
77 shall consider the extent to which the utility provides water
78 service that meets secondary water quality standards for taste,
79 odor, color, or corrosiveness, as established by the Department
80 of Environmental Protection, the respective water management
81 district, or the local governmental entity. The commission may
82 deny all or part of a rate increase for a utility’s system or
83 part of a system if it determines that the quality of water
84 service is less than satisfactory. In determining whether a
85 utility has satisfied its obligation to provide water service to
86 its customers which meets the standards for taste, odor, color,
87 or corrosiveness, the commission shall consider:
88 (a) Testimony and evidence provided by customers and the
89 utility;
90 (b) The results of past tests required by the Department of
91 Environmental Protection or a county health department which
92 measure the utility’s compliance with the applicable secondary
93 water quality standards;
94 (c) Complaints regarding the applicable secondary water
95 quality standards filed by customers with the commission, the
96 Department of Environmental Protection, the respective water
97 management district, or the respective local governmental entity
98 during the past 5 years; and
99 (d) If the commission deems necessary, the results of any
100 updated test.
101 (2) In fixing just, reasonable, compensatory, and not
102 unfairly discriminatory rates, the commission shall consider the
103 extent to which the utility provides wastewater service to its
104 customers without generating odor, noise, aerosol drift, or
105 lighting that adversely affects customers. The commission may
106 deny all or part of a rate increase for a utility’s system or
107 part of a system if it determines that the quality of wastewater
108 service is less than satisfactory. In determining the extent to
109 which the utility provides wastewater service to its customers
110 without generating odor, noise, aerosol drift, or lighting that
111 adversely affects customers, the commission shall consider:
112 (a) Testimony and evidence provided by customers and the
113 utility;
114 (b) Complaints regarding the alleged odor, noise, aerosol
115 drift, or lighting filed with the Department of Environmental
116 Protection, a county health department, or the respective local
117 governmental entity during the past 5 years; and
118 (c) Complaints regarding the alleged odor, noise, aerosol
119 drift, or lighting filed with the commission during the past 5
120 years.
121 (3)(a) If the commission determines that a utility:
122 1. Has failed to provide water service that meets the
123 secondary water quality standards of the department, the
124 respective water management district, or the local governmental
125 entity, regarding taste, odor, color, or corrosiveness; or
126 2. Has generated odor, noise, aerosol drift, or lighting in
127 providing wastewater service that adversely affects customers,
128
129 the utility shall create an estimate of the costs and benefits
130 of a plausible solution to each issue identified by the
131 commission.
132 (b) The utility shall meet with its customers within a time
133 prescribed by the commission to discuss the estimated costs and
134 benefits of and time necessary for implementation of a plausible
135 solution for each quality of service issue identified and the
136 utility shall report the results of such meetings to the
137 commission.
138 (c) The utility shall inform the commission if:
139 1. The customers and the utility agree on a solution for
140 each quality of service issue identified; or
141 2. The customers and utility prefer a different solution to
142 at least one of the quality of service issues identified.
143 (d) The commission may require the utility to implement a
144 solution that is in the best interest of the customers for each
145 quality of service issue. The commission may establish the
146 necessary benchmarks a utility must meet for each solution and
147 require the utility to report periodically until each solution
148 is completed.
149 (4) The commission shall adopt rules to assess and enforce
150 compliance with this section. The rules must prescribe penalties
151 for a utility’s failure to adequately resolve each quality of
152 service issue as required by the commission, which may include
153 fines as provided in s. 367.161, a reduction of return on equity
154 of up to 100 basis points, or cancellation of the certificate of
155 authority under s. 367.072.
156 Section 3. This act shall take effect July 1, 2014.
157
158 ================= T I T L E A M E N D M E N T ================
159 And the title is amended as follows:
160 Delete everything before the enacting clause
161 and insert:
162 A bill to be entitled
163 An act relating to water and wastewater utilities;
164 creating s. 367.072, F.S.; providing legislative
165 intent; authorizing the Florida Public Service
166 Commission to suspend or revoke a certificate of
167 authorization upon receipt of a petition; providing
168 criteria for such petition; authorizing the commission
169 to adopt rules; creating s. 367.0812, F.S.; requiring
170 the commission to consider the quality of water or
171 wastewater service when fixing rates; providing
172 criteria that the commission must consider in making
173 its determination; requiring the utility to meet with
174 its customers to discuss the costs and benefits of
175 plausible solutions if the commission finds that the
176 utility has failed to meet certain water or wastewater
177 quality standards; requiring the commission to adopt
178 rules; providing an effective date.