FL H1297

Allows water and wastewater utilities to establish rate base value using fair market value instead of original cost when acquiring an existing utility system.

Requires fair market value determination based on appraisals from two licensed appraisers (one representing each party), using Uniform Standards of Professional Appraisal Practice with cost, market, and income approaches; rate-making value equals the average of the two appraisals.

Mandates acquiring and selling utilities jointly retain a licensed engineer to assess tangible assets, with acquiring utility able to include reasonable valuation expert fees and transaction costs if approved by the Public Service Commission.

Requires applications for rate base value approval to include appraisals, engineering assessment, 3-year infrastructure improvement plan, 5-year rate impact projection, contract of sale, and tariff with rates equal to selling utility's rates; Commission must issue final order within 6 months.

Applies only to utilities serving more than 10,000 customers engaged in voluntary acquisitions; Commission retains authority to set future rates and classify acquired systems as separate entities for rate-making purposes; effective July 1, 2019.