FL H1331

Municipalities owning electric, natural gas, water, or wastewater utilities may transfer a portion of utility revenues to fund general government functions, limited by transfer rates based on Public Service Commission-approved rates of return on equity.

Transfer rates are reduced by 150, 300, or 450 basis points if more than 15%, 30%, or 45% respectively of a utility's retail customers are located outside municipal boundaries, unless the utility has proportionate representation from outside customers on the governing board.

Municipalities operating water or sewer utilities outside their boundaries may charge outside consumers no more than 50% greater rates than inside consumers (increased from 25%), or charge the same rates plus up to 25% surcharge.

Municipalities providing water or sewer service through treatment plants located in separate municipalities may charge consumers in those separate municipalities no more than rates imposed on consumers within their own municipal boundaries.

Effective date: July 1, 2024.