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FL S0194

Bill

Status

Introduced

1/13/2023

Primary Sponsor

Regulated Industries

Click for details

Origin

Senate

2023 Regular Session

AI Summary

  • Creates an alternative procedure (Section 367.0811, F.S.) for the Florida Public Service Commission to establish rate base values for acquired water and wastewater utility systems using appraisals instead of the traditional cost method
  • Requires three licensed appraisers chosen from a commission-established list to value the acquired system, along with a licensed engineer's assessment of tangible assets, all paid for by the buyer
  • Caps the approved rate base value at the lesser of the negotiated purchase price or the average of the three appraisals, and allows inclusion of reasonable transaction, closing, and appraiser costs
  • Applies only to arms-length acquisitions by utilities serving more than 10,000 customers or permitted to produce at least 3 million gallons per day of drinking water
  • Requires petitions to include a 3-year plan to address infrastructure deficiencies, a 5-year projected rate impact analysis, and a rate stabilization plan if the acquisition would cause significant rate increases; the commission must issue a final order within 8 months of a complete filing

Legislative Description

Utility System Rate Base Values

Last Action

Laid on Table, companion bill(s) passed, see CS/CS/HB 125 (Ch. 2023-291)

4/27/2023

Committee Referrals

Fiscal Policy4/13/2023
Appropriations Subcommittee on Agriculture, Environment, and General Government3/23/2023

Full Bill Text

No bill text available