Florida Senate - 2019 COMMITTEE AMENDMENT Bill No. CS for CS for SB 796 Ì880822#Î880822 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Appropriations (Gruters) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Section 366.96, Florida Statutes, is created to 6 read: 7 366.96 Storm protection plan cost recovery.— 8 (1) The Legislature finds that: 9 (a) During extreme weather conditions, high winds can cause 10 vegetation and debris to blow into and damage electrical 11 transmission and distribution facilities, resulting in power 12 outages. 13 (b) A majority of the power outages that occurred during 14 the recent extreme weather conditions in the state were caused 15 by vegetation blown by the wind. 16 (c) It is in the public interest to promote overhead 17 hardening of electrical transmission and distribution 18 facilities, the undergrounding of certain electrical 19 distribution lines, and vegetation management in this state. 20 (d) Protecting and strengthening transmission and 21 distribution electric utility infrastructure from extreme 22 weather conditions will reduce restoration costs and outage 23 times to customers and improve overall service reliability for 24 customers. 25 (e) When considering costs, reliability, storm protection 26 and restoration, and the public convenience, it is in the 27 state’s best interest that utilities focus primarily on 28 distribution laterals when undergrounding electric distribution 29 lines. 30 (f) It is in the public interest for each utility to 31 mitigate additional costs to utility customers when developing 32 transmission and distribution storm hardening plans. 33 (g) All customers benefit from the reduced costs of storm 34 restoration. 35 (2) As used in this section, the term: 36 (a) “Public utility” or “utility” has the same meaning as 37 in s. 366.02(1), except that this section does not apply to a 38 gas utility. 39 (b) “Transmission and distribution storm protection plan” 40 or “plan” means a plan for the overhead hardening of electric 41 transmission and distribution facilities, undergrounding of 42 electric distribution facilities, and vegetation management. 43 (c) “Transmission and distribution storm protection plan 44 costs” means the reasonable and prudent costs to implement an 45 approved transmission and distribution storm protection plan. 46 (d) “Vegetation management” means the actions a public 47 utility takes to prevent or curtail vegetation from interfering 48 with public utility infrastructure. The term includes the mowing 49 of vegetation, application of herbicides, trimming of trees, and 50 removal of trees or brush near and around electric transmission 51 and distribution facilities. 52 (3) Each public utility shall file, pursuant to commission 53 rule and for commission review, a transmission and distribution 54 storm protection plan that covers the utility’s immediate 10 55 year planning period. The commission must approve or modify the 56 plan within 6 months after the public utility files the plan 57 with the commission. The commission must give due consideration 58 to all of the following: 59 (a) Whether the plan enhances reliability, strengthens 60 infrastructure, and reduces restoration costs and outage times 61 in a prudent, practical, and cost-efficient manner, including 62 whether the plan prioritizes areas of lower reliability 63 performance. 64 (b) Whether storm protection of transmission and 65 distribution infrastructure is feasible, reasonable, or 66 practical in certain areas of the utility’s service territory, 67 including in flood zones and rural areas. 68 (c) The estimated rate impact that will result from the 69 implementation of the public utility’s proposed transmission and 70 distribution storm protection plan during the first 3 years 71 addressed in the plan. 72 (4) Each public utility must submit an updated transmission 73 and distribution storm protection plan at least every 3 years 74 after commission approval of its most recent plan. The 75 commission shall approve or modify each updated plan pursuant to 76 the criteria set forth in subsection (3). 77 (5) After a storm protection plan has been approved, 78 proceeding with actions to implement the plan does not 79 constitute and is not evidence of imprudence. The commission 80 shall conduct an annual proceeding to allow a public utility to 81 recover prudently incurred transmission and distribution storm 82 protection plan costs through a storm protection cost recovery 83 clause. Once the commission determines that the costs were 84 prudently incurred, the costs are not subject to disallowance or 85 further prudence review, except for situations involving fraud, 86 perjury, or the intentional withholding of key information by 87 the public utility. 88 (6) The annual transmission and distribution storm 89 protection plan costs recoverable through the storm protection 90 cost recovery clause do not include costs recovered through the 91 public utility’s base rates and must be allocated to customer 92 classes pursuant to the rate design most recently approved by 93 the commission. 94 (7) If a capital expenditure cost is recoverable through a 95 storm protection cost recovery clause, the public utility may 96 recover the annual depreciation on such cost, calculated at the 97 public utility’s current approved depreciation rates, and a 98 return on the undepreciated balance of the costs calculated at 99 the public utility’s weighted average cost of capital using the 100 return on equity last approved by the commission in a rate case 101 or settlement order. 102 (8) The commission shall adopt rules to implement and 103 administer this section, and shall propose a rule for adoption 104 as soon as practicable after the effective date of this act, but 105 not later than October 31, 2019. 106 Section 2. The Division of Law Revision is directed to 107 replace the phrase “the effective date of this act” wherever it 108 occurs in this act with the date this act becomes a law. 109 Section 3. For the 2019-2020 fiscal year, the sums of 110 $261,270 in recurring funds and $15,020 in nonrecurring funds 111 from the Regulatory Trust Fund are appropriated to the Public 112 Service Commission, and 4 full-time equivalent positions with an 113 associated salary rate of 180,583 are authorized for the purpose 114 of implementing this act. 115 Section 4. This act shall take effect upon becoming a law. 116 117 ================= T I T L E A M E N D M E N T ================ 118 And the title is amended as follows: 119 Delete everything before the enacting clause 120 and insert: 121 A bill to be entitled 122 An act relating to public utility storm protection 123 plans; creating s. 366.96, F.S.; providing legislative 124 findings; defining terms; requiring public utilities 125 to individually submit to the Public Service 126 Commission, for review and approval, a transmission 127 and distribution storm protection plan; requiring 128 utilities to update their respective plans on a 129 specified basis; requiring the commission to approve 130 or modify submitted plans within a specified 131 timeframe, taking into consideration specified 132 factors; requiring the commission to conduct an annual 133 proceeding to allow utilities to justify and recover 134 certain costs through a storm protection cost recovery 135 clause; providing that utilities may not include 136 certain costs in their base rates; providing for the 137 allocation of such costs; authorizing utilities to 138 recover depreciation on certain capital costs through 139 the recovery clause; requiring the commission to adopt 140 rules; requiring the commission to propose a rule for 141 adoption within a specified timeframe; providing a 142 directive to the Division of Law Revision; providing 143 appropriations and authorizing positions; providing an 144 effective date.