Bill Text: FL S1478 | 2016 | Regular Session | Introduced


Bill Title: Utility Advanced Cost Recovery

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-01-15 - Withdrawn from further consideration [S1478 Detail]

Download: Florida-2016-S1478-Introduced.html
       Florida Senate - 2016                                    SB 1478
       
       
        
       By Senator Sobel
       
       33-01258-16                                           20161478__
    1                        A bill to be entitled                      
    2         An act relating to utility advanced cost recovery;
    3         amending s. 366.93, F.S.; providing for the expiration
    4         of provisions authorizing advanced cost recovery for
    5         nuclear and integrated gasification combined cycle
    6         power plants; requiring certain funds to be returned
    7         to ratepayers; prohibiting utilities from increasing
    8         or imposing charges to offset the loss of utility
    9         revenues as a result of refunding moneys from the
   10         collection of advanced cost recovery fees; providing
   11         for future repeal; amending s. 366.95, F.S.;
   12         conforming provisions regarding advanced cost recovery
   13         and securitization; amending s. 403.519, F.S.;
   14         deleting provisions limiting challenges to a utility’s
   15         right to recover advanced costs incurred before
   16         commercial operation of nuclear or integrated
   17         gasification combined cycle power plants; prohibiting
   18         utilities from continuing to collect advanced costs
   19         for certain plants after a specified date; providing
   20         an effective date.
   21          
   22  Be It Enacted by the Legislature of the State of Florida:
   23  
   24         Section 1. Subsection (7) is added to section 366.93,
   25  Florida Statutes, to read:
   26         366.93 Cost recovery for the siting, design, licensing, and
   27  construction of nuclear and integrated gasification combined
   28  cycle power plants.—
   29         (7) Subsections (1)-(6) shall expire July 1, 2016. All
   30  costs collected by a utility pursuant to this section shall be
   31  returned to the ratepayers of the utility by June 30, 2017. The
   32  utility may not charge new fees, increase fees, or increase the
   33  rates of ratepayers who paid the advanced cost recovery fees,
   34  which would otherwise offset the loss of utility revenues as a
   35  result of refunding costs to ratepayers. This section is
   36  repealed July 1, 2017.
   37         Section 2. Paragraph (k) of subsection (1) of section
   38  366.95, Florida Statutes, is amended to read:
   39         366.95 Financing for certain nuclear generating asset
   40  retirement or abandonment costs.—
   41         (1) DEFINITIONS.—As used in this section, the term:
   42         (k) “Nuclear asset-recovery costs” means:
   43         1. At the option of and upon petition by the electric
   44  utility, and as approved by the commission pursuant to sub
   45  subparagraph (2)(c)1.b., pretax costs that an electric utility
   46  has incurred or expects to incur which are caused by, associated
   47  with, or remain as a result of the early retirement or
   48  abandonment of a nuclear generating asset unit that generated
   49  electricity and is located in this state where such early
   50  retirement or abandonment is deemed to be reasonable and prudent
   51  by the commission through a final order approving a settlement
   52  or other final order issued by the commission before July 1,
   53  2017, and where the pretax costs to be securitized exceed $750
   54  million at the time of the filing of the petition. Costs
   55  eligible or claimed for recovery pursuant to s. 366.93, Florida
   56  Statutes 2016, are not eligible for securitization under this
   57  section unless they were in the electric utility’s rate base and
   58  were included in base rates before retirement or abandonment.
   59         2. Such pretax costs, where determined appropriate by the
   60  commission, include, but are not limited to, the capitalized
   61  cost of the retired or abandoned nuclear generating asset unit,
   62  other applicable capital and operating costs, accrued carrying
   63  charges, deferred expenses, reductions for applicable insurance
   64  and salvage proceeds and previously stipulated write-downs or
   65  write-offs, if any, and the costs of retiring any existing
   66  indebtedness, fees, costs, and expenses to modify existing debt
   67  agreements or for waivers or consents related to existing debt
   68  agreements.
   69         Section 3. Paragraph (e) of subsection (4) of section
   70  403.519, Florida Statutes, is amended to read:
   71         403.519 Exclusive forum for determination of need.—
   72         (4) In making its determination on a proposed electrical
   73  power plant using nuclear materials or synthesis gas produced by
   74  integrated gasification combined cycle power plant as fuel, the
   75  commission shall hold a hearing within 90 days after the filing
   76  of the petition to determine need and shall issue an order
   77  granting or denying the petition within 135 days after the date
   78  of the filing of the petition. The commission shall be the sole
   79  forum for the determination of this matter and the issues
   80  addressed in the petition, which accordingly shall not be
   81  reviewed in any other forum, or in the review of proceedings in
   82  such other forum. In making its determination to either grant or
   83  deny the petition, the commission shall consider the need for
   84  electric system reliability and integrity, including fuel
   85  diversity, the need for base-load generating capacity, the need
   86  for adequate electricity at a reasonable cost, and whether
   87  renewable energy sources and technologies, as well as
   88  conservation measures, are utilized to the extent reasonably
   89  available.
   90         (e) After a petition for determination of need for a
   91  nuclear or integrated gasification combined cycle power plant
   92  has been granted, the right of a utility to recover any costs
   93  incurred prior to commercial operation, including, but not
   94  limited to, costs associated with the siting, design, licensing,
   95  or construction of the plant and new, expanded, or relocated
   96  electrical transmission lines or facilities of any size that are
   97  necessary to serve the nuclear power plant, shall not be subject
   98  to challenge unless and only to the extent the commission finds,
   99  based on a preponderance of the evidence adduced at a hearing
  100  before the commission under s. 120.57, that certain costs were
  101  imprudently incurred. Proceeding with the construction of the
  102  nuclear or integrated gasification combined cycle power plant
  103  following an order by the commission approving the need for the
  104  nuclear or integrated gasification combined cycle power plant
  105  under this act shall not constitute or be evidence of
  106  imprudence. Imprudence shall not include any cost increases due
  107  to events beyond the utility’s control. Further, a utility’s
  108  right to recover costs associated with a nuclear or integrated
  109  gasification combined cycle power plant may not be raised in any
  110  other forum or in the review of proceedings in such other forum.
  111  Costs incurred prior to commercial operation shall be recovered
  112  pursuant to chapter 366.
  113         Section 4. This act shall take effect upon becoming a law.

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