FL H1043

Authorizes the Public Service Commission to approve cost recovery for electric utilities' prudent investments in natural gas reserves and associated expenses if the utility generates at least 65 percent of its electricity using natural gas.

Requires the Commission to adopt rules by December 31, 2017 establishing that each natural gas reserve investment must be projected to generate customer savings over the investment's life.

Limits total natural gas production from all utility reserve investments to 7.5 percent of the utility's average projected daily burn in 2018, increasing to 10 percent in 2019, 12.5 percent in 2020, and 15 percent in 2021 and thereafter.

Requires that at least 50 percent of wells in natural gas reserve projects must be classified as proved oil and gas reserves by the Securities and Exchange Commission.

Prohibits Commission approval of natural gas reserve investments if determined to be imprudent and prevents cost recovery for operations and maintenance if costs are determined unreasonable.