CS/HB 207 Summary

• Amends the Florida Interlocal Cooperation Act to prohibit interlocal entities from using eminent domain to acquire water or wastewater utilities, unless 10 or more years have elapsed since the property was acquired by eminent domain.

• Creates an alternative rate base valuation process allowing acquiring utilities with more than 10,000 customers to petition the Public Service Commission to establish rate base values using independent appraisals instead of original cost methods.

• Requires the Public Service Commission to issue a final order on rate base petitions within 8 months, with the approved rate base value reflecting the lesser of the purchase price or average of two appraisals, plus reasonable transaction costs and appraiser fees.

• Mandates that acquisition petitions include two independent appraisals, a joint licensed engineer assessment of tangible assets, a 3-year deficiency remediation plan, 5-year rate projections, the sale contract, and initial tariff with existing rates.

• Preserves the Public Service Commission's authority to set future rates for acquired systems and classify them separately for ratemaking purposes; takes effect July 1, 2020.