FL S1238

Grants the Public Service Commission authority to approve cost recovery through adjustment clauses for public utilities' investments in natural gas reserves, limited to utilities with at least 65 percent natural-gas-fueled generation.

Requires the commission to adopt prudence standards by December 31, 2017, including requirements that investments generate customer savings and prohibitions on cost recovery for gas extracted using hydraulic fracturing or from state/federal/international waters.

Establishes maximum allowable volumes for natural gas production from utility reserve investments: 7.5 percent of average daily burn in 2018, increasing to 15 percent by 2021 and thereafter.

Mandates that utilities file annual detailed comparisons of all gas reserve projects for the utility and its affiliates, including capital investment amounts, revenue requirements, and net present value savings.

Requires utilities to use independent third-party auditors for gas reserve project audits and mandates availability of a transportation path to deliver gas to the utility's service territory before entering into a reserve project.