Florida Senate - 2017                        COMMITTEE AMENDMENT
       Bill No. SB 1238
       
       
       
       
       
       
                                Ì4409441Î440944                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  04/25/2017           .                                
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       The Committee on Rules (Latvala) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Between lines 49 and 50
    4  insert:
    5         Section 2. (1) Annually, each public utility shall file
    6  with the Public Service Commission a detailed comparison of all
    7  gas reserve projects entered into on behalf of the utility and
    8  any affiliate or subsidiary of the utility’s parent company as
    9  part of its Risk Management Plan. The information must be the
   10  same for each gas reserve project entered into by any affiliate
   11  or subsidiary that was used to support or justify the
   12  appropriateness of each gas reserve project entered into during
   13  the reporting period. The filing must:
   14         (a) Show all material assumptions relied upon to support
   15  each gas reserve project, including the capital investment
   16  amount;
   17         (b) Calculate the associated revenue requirement for each
   18  gas reserve project; and
   19         (c) Provide the net present value savings for each gas
   20  reserve project entered into by any affiliate or subsidiary of a
   21  parent company.
   22         (2) For any gas reserve project, the utility shall use an
   23  independent third-party auditor in performing audits of the
   24  associated transactions. Subaccounts that correspond on a one
   25  on-one basis with the oil and gas system of accounts shall be
   26  established and used by the utility for each investment in a gas
   27  reserve project.
   28         (3) Each utility recovering its investment in a natural gas
   29  reserve project through an adjustment clause shall separately
   30  identify such clause on each customer’s monthly bill. Within
   31  that line item, the utility shall explain the costs and profits
   32  being recovered and the rate of return that is used to calculate
   33  the profit. Annually, the utility shall include in each
   34  customer’s bill a summary describing the annual costs and
   35  profits and any loss or gain on hedging and production costs.
   36         (4) Annually, the commission shall prepare a report and
   37  provide it to the President of the Senate and the Speaker of the
   38  House of Representatives containing the following information:
   39         (a) The name of each utility participating in natural gas
   40  reserve projects.
   41         (b) The number of projects for each utility.
   42         (c) The amount of investment for each project.
   43         (d) The amount of gain or loss for the year of hedging or
   44  production.
   45         (e) Any other information the commission deems relevant.
   46  
   47  ================= T I T L E  A M E N D M E N T ================
   48  And the title is amended as follows:
   49         Delete line 9
   50  and insert:
   51         investments; requiring each public utility to file
   52         with the commission with a comparison of all gas
   53         reserve projects entered into on behalf of the utility
   54         and any affiliate or subsidiary of the parent company
   55         as part of its Risk Management Plan; specifying the
   56         requirements of the filing; specifying the use of a
   57         third-party auditor; requiring public utilities to
   58         separately identify certain adjustment clauses for
   59         investments in natural gas in and annual costs and
   60         profits on customers’ bills; requiring the commission
   61         to file a report with the Legislature; providing an
   62         effective date.