Florida Senate - 2018                                    SB 1586
       By Senator Simmons
       9-01218A-18                                           20181586__
    1                        A bill to be entitled                      
    2         An act relating to the energy grid; creating s.
    3         366.96, F.S.; providing legislative intent; defining
    4         terms; requiring the Public Service Commission to hold
    5         a series of hearings to determine certain disaster
    6         hardening standards for each electric utility;
    7         requiring the commission to determine an energy grid
    8         improvement plan for each electric utility; specifying
    9         the maximum period for such plans’ implementation;
   10         requiring the commission to allow such plans to be
   11         modified at certain intervals; specifying
   12         considerations for determining such standards and
   13         plans; requiring the commission to issue an order for
   14         the electric utilities to implement and fund their
   15         plans; authorizing the commission to grant a single
   16         extension of plan deadlines every 5 years under
   17         certain circumstances; requiring the commission to
   18         submit a report to the Legislature on specified dates;
   19         requiring the commission to adopt certain rules and
   20         issue certain orders; providing an effective date.
   22  Be It Enacted by the Legislature of the State of Florida:
   24         Section 1. Section 366.96, Florida Statutes, is created to
   25  read:
   26         366.96 Electric utility disaster hardening.—
   27         (1)It is the intent of the Legislature that the number of
   28  electric utility customers without electricity after natural and
   29  manmade disasters and other major events, including storms, and
   30  the duration of such outages be reduced. Furthermore, it is the
   31  intent of the Legislature that such reductions be accomplished
   32  at a cost that is fair and reasonable for the state’s electric
   33  utility customers.
   34         (2)As used in this section, the term:
   35         (a)“Commission” means the Florida Public Service
   36  Commission.
   37         (b)“Electric utility” has the same meaning as in s.
   38  366.02.
   39         (c)“Energy grid” means an electric utility’s
   40  interconnected generation, transmission, and distribution
   41  infrastructure.
   42         (3)Pursuant to its authority under ss. 366.04(2)(c) and
   43  366.05(8), the commission shall hold a series of public
   44  hearings, including customer hearings throughout the state, to
   45  determine for various critical circumstances, and especially for
   46  each storm and hurricane category, the following disaster
   47  hardening standards that each electric utility may be able to
   48  achieve at a reasonable cost:
   49         (a)The highest acceptable percentage of customers without
   50  electricity for each 24-hour period after a storm.
   51         (b)The longest period of time for complete restoration,
   52  replacement, or renovation of the energy grid.
   53         (4)During the process specified in subsection (3), the
   54  commission must also determine a disaster preparation and energy
   55  grid improvement plan for each electric utility to achieve the
   56  developed standards, including all necessary improvements and
   57  the time within which the electric utility must complete each
   58  improvement. The plan implementation period may be up to 20
   59  years, and the commission must allow for the plan to be modified
   60  at least every 5 years.
   61         (5)In making the determinations in subsections (3) and
   62  (4), the commission must consider all of the following:
   63         (a)The available projections for the number and severity
   64  of storms in the future and for changes in sea level, storm
   65  surge, and flooding;
   66         (b)The projected costs of outages and of restorations
   67  which would be avoided by the standards and plans;
   68         (c)The projected benefits of the standards and plans;
   69         (d)Any alternatives to the traditional energy grid which
   70  provide strengthening or resiliency benefits to the energy grid,
   71  including distributed generation and microgrids; and
   72         (e)The individual circumstances and characteristics of
   73  each electric utility, including:
   74         1.The utility’s energy grid, taking into account its
   75  history of outages, restorations, the time necessary to complete
   76  each restoration, and the factors involved in restoration and
   77  timing of completion;
   78         2.The utility’s ratepayer base;
   79         3.The utility’s existing cost recovery structure and
   80  rates;
   81         4.Any potential alternative standards and goals for the
   82  utility, including implementing alternative forms of renewable
   83  energy;
   84         5.Available energy grid improvements for the utility,
   85  including the benefits and costs of such improvements and the
   86  impact of such improvements on rates;
   87         6.The total cost of each utility’s plan. This must include
   88  the expected cost to consumers of implementing the plan shown in
   89  relation to the benefits to be achieved, such as the potential
   90  savings from outages and restoration costs avoided; and
   91         7.A reasonable period for the utility to implement the
   92  plan.
   93         (6)Upon completion of the development of standards and a
   94  plan for each electric utility, the commission must issue an
   95  order requiring each electric utility to implement the plan to
   96  meet the standards and specifying the method for payment of the
   97  plan, including each utility’s authorized assessment to
   98  ratepayers for plan costs.
   99         (7)During any 5-year period, an electric utility may apply
  100  to the commission for a single extension for one or more plan
  101  deadlines specified in the order. The commission may grant the
  102  extension if the electric utility provides to the commission
  103  sufficient evidence that an extension is in the best interest of
  104  the utility’s ratepayers.
  105         (8)(a)By February 1, 2019, and every 5 years thereafter,
  106  the commission shall submit a report to the President of the
  107  Senate and the Speaker of the House of Representatives which
  108  describes, for each electric utility, the commission’s
  109  determination and order for that electric utility on its
  110  standards, a plan for grid improvement, the timetable for
  111  completion of the plan, and the projected costs and benefits of
  112  the plan.
  113         (b)The commission shall adopt rules and issue orders as
  114  are necessary and proper to implement this section.
  115         Section 2. This act shall take effect upon becoming a law.