Title: PSC Amendments to Water Legislation Dated January 10, 1997
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Permanent Link: http://ufdc.ufl.edu/WL00004814/00001
 Material Information
Title: PSC Amendments to Water Legislation Dated January 10, 1997
Physical Description: Book
Language: English
 Subjects
Spatial Coverage: North America -- United States of America -- Florida
 Notes
Abstract: Jake Varn Collection - PSC Amendments to Water Legislation Dated January 10, 1997 (JDV Box 39)
General Note: Box 29, Folder 4 ( Water Supply Issues Group (File 2 of 3) - 1996 ), Item 14
Funding: Digitized by the Legal Technology Institute in the Levin College of Law at the University of Florida.
 Record Information
Bibliographic ID: WL00004814
Volume ID: VID00001
Source Institution: Levin College of Law, University of Florida
Holding Location: Levin College of Law, University of Florida
Rights Management: All rights reserved by the source institution and holding location.

Full Text

OV OFF. OF ENV. AFF.






JANCE a. ALVCo
BRIAN H, DI EAU
KATHL99N SLIARARO
LIOABETI C. SOWMAN
RICHARD RIONMTMNAN
PtTIE C. CUNNINNAMN
RALMP A. OM6CO
TMONAB M. OtROSE
WILLIAM N. GREEN
WADE L. HOPPING
FRANK E. MATTHEWS
nICnHAR D. MCLSON
MICHAEL P. PETROVICH
DAVID L. POWELL
WILLIAM 0. PRESTON
CANOluYN RACPPLr
DOUGLAS S. ROBLERT
oARY P. SAMS
ROBERT P. 6MITH
CHERYL 0. BTUART


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HOPPING GREEN SAMS & SMITH
PROFE5IONAL. ASSOCIATION
ATTORNEYS AND COUNSELORS
113 SOUTH CALHOUN STREET
POST OFrICi BOX e*Be
TALLAHASSEE. FLORIDA 323 a
('00) 222-7809
FAX 4(04) CZ4-B51I
FAX 4904) 4i6-3415


Writer's Direct Dial No.
(904) 425-3424

January 13, 1997


GART K, HUNTER. JR.
JONATHAN T. JOMN=ON
nROINT A. MANNING
ANGELA R. MORRISON
OARY V. PERIO
KAREN M. PCTERBON
R. SCOTT RUTH
W. STCVC *YCES
T. KENT WETHMRELL, II
Or COUNSEL
W. RoaECR POKES


Mr. Dan Stengle
Office of the Governor
The Capitol
Tallahassee, Florida 32399


.3 r W


J021 ft '11
OP fte Opr


Dear Dan:

As I previously informed you, 1 represent the Florida Water Works Association who
believe that the Public Service Commission is currently impeding their efforts to install adequate
reuse facilities and perform other environmentally required desirable tasks by the way they are
fixing rates. Attached is a proposed amendment which would correct the problem yet leave the
PSC in ultimate charge of rate making. We believe that the language is consistent with the
recommendations of the Governor's Water Supply Task Force. This afternoon 1 will be meeting
individually with several Public Service Commissioners to give them a heads-up about this
language.

If you have any questions or comments about it, please let me know as soon as possible.
Assuming no violent reaction against this language, I will be seeking sponsors for the
introduction of it during the 1997 regular session. Your comments and thoughts are solicited.
I hope the administration will support this approach not only in principal but the words which
we have written on the attached draft.


Sincerely, r




Wade L. Hopping .


Attachments

cc: Estus Whitfidd


Jan 12,97




GOV OFF. OF ENV. AFF. TEL:1-904-922-62C


PSC AMENEMETS TO WATER LEQZSLATION
January 10, 1997

Section 1. Section 367.021, Florida Statutes, is amended by

adding new subsection (14):

(14) "Environmentally required costs" means all reasonable

expenses and a fair return on the investments required to comply

with federal, state, and local environmental laws and regulations.
The commission shall be bound by the determinations, permitting,

and enforcement decisions of the United States Environmental

Protection Agency, the Department of Environmental Protection or a

Water Management District, or other entity with jurisdiction to

require compliance, as to (a) the need for, capacity of, and type

of facilities, including land and processes, required for

compliance, and (b) the need for, capacity of, and type of

facilities, including land and processes, to be included as part of

any reuse system or project.


Section 2. Subsection (10) is added to section 367.022,

Florida Statutes, to read:

367.022 Exemptions.--The following are not subject to

regulation by the commission as a utility nor are they subject to

the provisions of this chapter, except as expressly provided:

(10) Any person providing only non-potable water for

irrigation purposes in a yeographiq area where potable water


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service is available from a governmental utility and who has

provided such irrigation service continually since January 1. 1985.



Section 3. Section 367.081(2), Florida Statutes, is amended

to read:

367.081 Rates; procedure for fixing and changing.-

(2) (a) The commission shall, either upon request or upon its own

motion, fix rates which are just, reasonable, compensatory, and not

unfairly discriminatory. In every such proceeding, the commission

shall consider the value and quality of the service and the cost of

providing the service, which shall include, but not be limited to,

debt interest; the requirements of the utility for working capital;

maintenance, depreciation, tax, and operating expenses incurred in

the operation of all property used and useful in the public

service; and a fair return on the investment of the utility in

property used and useful in the public service. However, the

commission shall not allow the inclusion of

contributions-in-aid-of-construction in the rate base of any

utility during a rate proceeding; and accumulated depreciation on

such contributions-in-aid-of-construction shall not be used to

reduce the rate base, nor shall depreciation on such contributed

assets be considered a cost of providing utility service. The

eemmissiea- shal- &lo -oonaider -the investment- f- -the -ut-ility- in

land-aequired -or- -fav-i-l--ite- constructed-er- s -be con-et-roted- in- the

publ ie intreet- -iteiM n -a reasonable- -trae -in the- -future-,- -ao te


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exceeed?-unless-extended-by-the-eeawissieny-24-menthe-frem-the-end

ef-kthe-histerieal-test-peried-used-oe-set-final-ratesa

For purposes of such proceeding, to determine whether

utility property is "used and useful in the public service." the

commission shall apnlv the following :

a. All utility property needed to serve current customers

shall be considered fully used and useful in the public service.

b. All utility property needed to serve future customers no

later than 5 years from the commission's final action on a rate

request as provided in paragraph (6) below shall be considered

fully used and useful in the public service.

j. All utility property needed to serve future customers 5

to 10 years from the commission's final action on a rate request as

provided in Paragraph (6) below shall be rebuttably presumed to be

used and useful in the public service.

d. All utility property needed to serve future customers 10

to 15 years from the commission's final action on a rate request as

Provided in Paragraph (6) below shall be rebuttably presumed not to

be used and useful in the public service.

e. All utility property needed to serve future customers 15

or more years after the commission's final action on a rate request

as provided in paragraph (6) below shall not be considered used and

useful in the public service for purposes of ouch nroceedina.

2. Notwithstanding the provisions of sub-paraaraph 1. above.

the commission shall approve rates for service that allow a utility


MnMA


GOV OFF. OF ENV. AFF.




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mSA


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GOV OFF. OF ENV. AFF.


to recover the full amount of environmentally required costs from

current customers.

(b) In establishing initial rates for a utility, the commission

may project the financial and operational data as set out in

paragraph (a) to a point in time when the utility is expected to be

operating at a reasonable level of capacity.


Section 4. Sections 367.0817(2) and (3), Florida Statutes,

are amended to read:

(2) The commission shall review the utility's reuse project

plan and shall determine whether the projected costs are prudent

and the proposed rates are reasonable and in the public interest.

The commission shall issue a proposed agency action order to

approve or disapprove the utility's reuse project plan. The

commission shall enter its vote on the proposed agency action

within 5 months of the date of filing. If the commission's

proposed agency action is protested, the final decision shall be

rendered within 8 months of the date the protest is filed. Any

proceeding conducted to consider the utility's reuse project plan

under this section shall be a limited proceeding in accordance with

s. 367.0822 and shall only consider matters related to the

utility's proposed reuse project.

(3) All prudent costs of a reuse project shall be recovered

in rates for service from current customers in this limited

nrocaedina. The Legislature finds that reuse benefits water,

wastewater, and reuse customers. The commission shall allow a





GOV OFF. OF ENV. AFF.


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TEL:1-904-922-620O Jan 12,97


utility to recover the ll costs of a reuse project from the

utility's current water, wastewater, or reuse customers or any

combination thereof as-deemed -approepriate -by -bAeoommi-eedo in the

instant proceeding.


Section 5. Section 367.171(6), Florida Statutes, is amended

to read:

(6) Any county in which utilities as herein defined were

regulated by the commission on or after January 1, 1980, which

subsequently cease to be so regulated, shall, within 90 days of the

cessation of commission regulation or the effective date of this

ac., adopt and follow as minimum standards of regulation the

provisions of sections 367.021. section 367.081, except for

paragraph (4)(a), section 367.0817. and section 367.082, except

that the word "commission" shall be read as "the governing body of

such county" when the context implies or admits. The authorized

rate of return shall be no less than the weighted cost of the

capital of the utility, including debt and equity.


Section 6. Section 367.171(8), Florida Statutes, is amended

to read:

(8) Each county which is excluded from the provisions of this

chapter shall regulate the rates of all utilities in that county

which would otherwise be subject to regulation by the commission

pursuant to sections 367.021 and 367.0817 and section 367.081(1),

(2), (3), and (6). The county shall not regulate the rates or


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TEL:1-904-922-6200 Jan 12,97


charges of any system or facility which would otherwise be exempt

from commission regulation pursuant to section 367.022(2). For

this purpose the county or its agency shall proceed as though the

county or agency is the commission.


EMSji


__


GQV PFF. OF ENV. AFF.


13:52 No.008 P.07




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