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Florida Senate
-
2026
SB 1532
By
Senator Smith
17-00432B-26 20261532__
1 A bill to be entitled
2 An act relating to the Florida Public Service
3 Commission; amending s. 366.03, F.S.; providing
4 legislative findings; requiring the commission to
5 implement specified measures to improve transparency
6 and accountability; amending s. 366.041, F.S.;
7 requiring the commission to ensure that public
8 utilities do not recover certain costs from ratepayers
9 regardless of whether such costs take a specified
10 form; authorizing the commission to adopt rules;
11 requiring the commission, upon a certain
12 determination, to order a utility to refund certain
13 amounts plus interest to customers; authorizing the
14 commission to assess certain penalties; providing
15 requirements for such penalties; providing for relief;
16 amending s. 366.06, F.S.; requiring the commission to
17 ensure that the allowable return on equity for public
18 utilities does not exceed certain metrics; amending s.
19 366.07, F.S.; requiring that certain cost-tracking
20 mechanisms for a public utility to recover changes in
21 electric supply costs provide a specified cost-sharing
22 structure; amending s. 366.81, F.S.; providing a
23 legislative directive to the commission to adopt
24 certain rules and measures; providing requirements for
25 such rules; making technical changes; amending s.
26 377.814, F.S.; conforming a cross-reference; providing
27 an effective date.
28
29 Be It Enacted by the Legislature of the State of Florida:
30
31 Section 1. Section 366.03, Florida Statutes, is amended to
32 read:
33 366.03 General duties of public utility
; transparency and
34
accountability
.—
35
(1)
Each public utility shall furnish to each person
36 applying therefor reasonably sufficient, adequate, and efficient
37 service upon terms as required by the commission.
A
No
public
38 utility
is not
shall be
required to furnish electricity or gas
39 for resale except that a public utility may be required to
40 furnish gas for containerized resale. All rates and charges
41 made, demanded, or received by any public utility for any
42 service rendered, or to be rendered by it, and each rule and
43 regulation of such public utility,
must
shall
be fair and
44 reasonable.
A
No
public utility
may not
shall
make or give any
45 undue or unreasonable preference or advantage to any person or
46 locality, or subject the same to any undue or unreasonable
47 prejudice or disadvantage in any respect.
48
(2)
The Legislature finds that transparency and
49
accountability in the form of clear reporting, accessible public
50
hearings, and strong disclosure standards bolster the public
51
trust in public utilities and ensure that decisions are made in
52
the best interest of all residents. The commission shall
53
implement measures to improve transparency and accountability by
54
providing, at a minimum, all of the following:
55
(a)
At least one in-person public service hearing per every
56
250,000 customers, held in a reasonable location near those
57
customers, or at least one in-person public service hearing held
58
in each county where the public utility provides service, if the
59
county has fewer than 250,000 residents.
60
(b)
Public access to
information regarding the compensation
61
of the executive officers of each public utility
providing
62
service
,
or the
compensation of the
executive officers of a
63
public utility’s
subsidiaries.
64 Section 2. Section 366.041, Florida Statutes, is amended to
65 read:
66 366.041 Rate fixing; adequacy of facilities as criterion
;
67
cost recovery prohibitions
.—
68 (1) In fixing the just, reasonable, and compensatory rates,
69 charges, fares, tolls, or rentals to be observed and charged for
70 service within
this
the
state by
any and
all public utilities
71 under its jurisdiction, the commission is authorized to give
72 consideration, among other things, to the efficiency,
73 sufficiency, and adequacy of the facilities provided and the
74 services rendered; the cost of providing such service and the
75 value of such service to the public; the ability of the utility
76 to improve such service and facilities; and energy conservation
77 and the efficient use of alternative energy resources; provided
78 that
a
no
public utility
is
not
shall
be
denied a reasonable
79 rate of return upon its rate base in any order entered pursuant
80 to such proceedings. In its consideration thereof, the
81 commission
has
shall have
authority, and it
is
shall be
the
82 commission’s duty, to hear service complaints, if any, that may
83 be presented by subscribers and the public during any
84 proceedings involving such rates, charges, fares, tolls, or
85 rentals; however,
no
service complaints
may not
shall
be taken
86 up or considered by the commission at any
proceeding
proceedings
87 involving rates, charges, fares, tolls, or rentals unless the
88 utility has been given at least 30 days’ written notice thereof,
89 and any proceeding may be extended,
before
prior to
final
90 determination, for such period; further,
an
no
order hereunder
91
is not
shall be
made effective until a reasonable time has been
92 given
for
the utility involved to correct the cause of service
93 complaints, considering the factor of growth in the community
94 and availability of necessary equipment.
95 (2) The power and authority herein conferred upon the
96 commission
does
shall
not cancel or amend any existing punitive
97 powers of the commission but
is
shall be
supplementary thereto
98 and
must
shall
be construed liberally to further the legislative
99 intent that adequate service be rendered by public utilities in
100
this
the
state in consideration for the rates, charges, fares,
101 tolls, and rentals fixed by said commission and observed by
such
102
said
utilities under its jurisdiction.
103 (3) The term “public utility” as used herein means all
104 persons or corporations which the commission has the authority,
105 power, and duty to regulate for the purpose of fixing rates and
106 charges for services rendered and requiring the rendition of
107 adequate service.
108 (4)
An
No
electric utility may
not
collect impact fees
109 designed to recover capital costs in initiating new service
110 unless the utility can demonstrate and the commission finds that
111 such fees are fair, just, and reasonable and are collected from
112 the ultimate utility customer of record at such time as or after
113 permanent electric service is provided. This prohibition
does
114
shall
not apply to underground electric distribution lines or
115 line extension charges collected pursuant to approved tariffs.
116
(5)
The commission shall ensure that public utilities do
117
not recover any of the following costs from ratepayers, whether
118
as part of the proposed base rate costs, a rider, or other
119
charges:
120
(a)
More than 50 percent of annual total compensation or of
121
expense reimbursement for commissioners.
122
(b)
Tax penalties or fines issued against the public
123
utility.
124
(c)
Investor-relations expenses.
125
(d)
Advertising or public relations expenses that do not
126
directly relate to a purpose or program that is required or
127
authorized under law or commission rule or order. Such expenses
128
include any of the following:
129
1.
Communications to promote the public utility’s brand.
130
2.
Expenses related to lobbying or other activities meant
131
to influence the outcome of legislation.
132
(e)
Organizational or membership dues, or other
133
contributions, to any organization, association, institution,
134
corporation, or other entity that engages in lobbying or similar
135
activities intended to influence the outcome of any local,
136
state, or federal legislation, ordinance, resolution, rule,
137
ballot measure, or other regulatory decision, including, but not
138
limited to, business or industry trade associations.
139
(f)
Any amount expended to compensate attorneys or
140
technical experts, who are not public utility company staff, to
141
prepare and litigate a general rate case filing. The commission
142
shall adopt rules for determining whether additional costs
143
associated with rate case filings are recoverable.
144
(6)
(a)
If the
commission determines that a utility
145
improperly recovered costs pursuant to subsection (5), the
146
commission must order the utility to refund the amount
147
improperly recovered, plus interest, to customers. Upon such
148
determination, the commission may also assess a nonrecoverable
149
penalty against the utility. The penalty may not exceed the
150
greater of the following:
151
1.
Three times the amount of the expenditure made in
152
violation of paragraph (5)(a).
153
2.
A fine of $5,000 per violation of paragraph (5)(a) or
154
paragraph (5)(b), which may be inflation-adjusted annually.
155
(b)
If the commission determines that a utility, or any of
156
its subsidiaries, has violated any provision of this section,
157
the commission may refer the case to the Attorney General. The
158
Attorney General may bring action to obtain any appropriate
159
relief
.
160 Section 3. Present subsection (4) of section 366.06,
161 Florida Statutes, is redesignated as subsection (5), and a new
162 subsection (4) is added to that section, to read:
163 366.06 Rates; procedure for fixing and changing.—
164
(4)
The commission shall ensure that the allowable return
165
on equity for public utilities does not exceed the national
166
average authorized return on equity for comparable public
167
utilities across the country.
168 Section 4. Section 366.07, Florida Statutes, is amended to
169 read:
170 366.07 Rates; adjustment.—
171
(1)
Whenever the commission, after public hearing either
172 upon its own motion or upon complaint,
finds that
any of
shall
173
find
the rates, rentals, charges
,
or classifications
, or any of
174
them,
proposed, demanded, observed, charged
,
or collected by any
175 public utility for any service, or in connection therewith, or
176
any of
the rules, regulations, measurements, practices
,
or
177 contracts
, or any of them,
relating thereto, are unjust,
178 unreasonable, insufficient, excessive, or unjustly
179 discriminatory or preferential, or
in anywise
in violation of
180 law, or any service is inadequate or cannot be obtained, the
181 commission shall determine and by order fix the fair and
182 reasonable rates, rentals, charges
,
or classifications, and
183 reasonable rules, regulations, measurements, practices,
184 contracts
,
or service, to be imposed, observed, furnished
,
or
185 followed in the future.
186
(2)
A
ny form of cost-tracking
mechanism for a public
187
utility to recover electricity supply costs must provide for a
188
sharing of those costs whereby customers are responsible for not
189
more than 80 percent of any cost and the public utility is
190
responsible for not less than 20 percent of any cost, in
191
accordance with s. 366.81(4)(a), (b) and (c).
192 Section 5. Section 366.81, Florida Statutes, is amended to
193 read:
194 366.81 Legislative findings and intent.—
195
(1)
The Legislature finds and declares that it is critical
196 to
use
utilize
the most efficient and cost-effective demand-side
197 renewable energy systems and conservation systems in order to
198 protect the health, prosperity, and general welfare of the state
199 and its citizens. Reduction in, and control of, the growth rates
200 of electric consumption and of weather-sensitive peak demand are
201 of particular importance.
202
(2)
The Legislature further finds that the Florida Public
203 Service Commission is the appropriate agency to adopt goals and
204 approve plans related to the promotion of demand-side renewable
205 energy systems and the conservation of electric energy and
206 natural gas usage.
207
(3)
The Legislature directs the commission to develop and
208 adopt overall goals
,
and authorizes the commission to require
209 each utility to develop plans and implement programs for
210 increasing energy efficiency and conservation and demand-side
211 renewable energy systems within its service area, subject to the
212 approval of the commission.
213
(4)
The Legislature directs the commission to develop and
214
adopt performance- and incentive-based rules, multiyear rate
215
plans, and other regulatory mechanisms, to achieve fair, just,
216
reasonable, and sufficient rates for electric utilities. The
217
rules must
:
218
(a)
Align the financial incentives of an electric utility
219
with the interests of the utility’s customers regarding incurred
220
fuel costs;
221
(b)
Protect customers from the volatility of fuel costs and
222
improve an electric utility’s management of fuel costs;
223
(c)
Ensure that the electric utilities provide their
224
rationale for the metrics used to establish fuel costs;
225
(d)
Establish performance incentives and penalty mechanisms
226
that link an electric utility’s return on equity to the
227
achievement of performance metrics related to energy efficiency,
228
grid reliability, and cost effectiveness;
229
(e)
Require reduction of an electric utility’s return on
230
equity by 10 basis points per percent deviation upon such
231
utility’s failure to operate within a 10 percent margin of the
232
annual national average for electricity consumption, as measured
233
by the United States Energy Information Administration, through
234
energy cost efficiency; and
235
(f)
Provide guidelines for
a
50
-
50 debt
-
to
-
equity ratio
236
structure for electric utilities.
237
(5)
Since solutions to
this state’s
our
energy problems are
238 complex, the Legislature intends that the use of solar energy,
239 renewable energy sources, highly efficient systems,
240 cogeneration, and load-control systems be encouraged.
241 Accordingly, in exercising its jurisdiction, the commission
may
242
shall
not approve any rate or rate structure which discriminates
243 against any class of customers on account of the use of such
244 facilities, systems, or devices.
245
(
6
)
This expression of legislative intent
m
ay
shall
not be
246 construed to preclude experimental rates, rate structures, or
247 programs.
248
(
7
)
The Legislature further finds and declares that ss.
249 366.80-366.83 and 403.519
must
are to
be liberally construed in
250 order to meet the complex problems of reducing and controlling
251 the growth rates of electric consumption and reducing the growth
252 rates of weather-sensitive peak demand; increasing the overall
253 efficiency and cost-effectiveness of electricity and natural gas
254 production and use; encouraging further development of demand
255 side renewable energy systems; and conserving expensive
256 resources, particularly petroleum fuels.
257 Section 6. Paragraph (b) of subsection (5) of section
258 377.814, Florida Statutes, is amended to read:
259 377.814 Municipal Solid Waste-to-Energy Program.—
260 (5) FUNDING.—
261 (b) Funds awarded under the grant programs set forth in
262 this section may not be used to support, subsidize, or enable
263 the sale of electric power generated by a municipal solid waste
264 to-energy facility to any small electric utility eligible to
265 petition the commission under
s. 366.06(5)
s. 366.06(4)
.
266 Section 7. This act shall take effect July 1, 2026.