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PCS for HB 1331 — Florida House of Representatives, Municipal Utilities (2023)

Issuer
Congressional materials
Document type
2023 3226 Energy Communications Cybersecurity Subcommittee Proposed Committee Bills Pcbs F
Case
2023 3226 Energy Communications Cybersecurity Subcommittee Proposed Committee Bills Pcbs Fn Pcs For Hb 1331

Summary

A PCS for HB 1331 from the Florida House of Representatives, 2023, a bill relating to municipal utilities. Section 1 amends section 166.201, Florida Statutes, to let a municipality that owns and operates an electric, natural gas, water or wastewater utility fund general government functions with a portion of utility revenues, capped by transfer rates tied to rates of return on equity approved by the Public Service Commission. The transfer rate is reduced by 150, 300 or 450 basis points when more than 15, 30 or 45 percent of retail customers are outside the municipal boundaries, unless an elected utility authority board gives those customers proportionate representation. Section 2 amends section 180.191 on rates charged to water and sewer consumers outside city limits. The act would take effect July 1, 2024.

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Cite this document

“PCS for HB 1331 — Florida House of Representatives, Municipal Utilities (2023).” Original at www.flhouse.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-3226-energy-communications-cybersecurity-subcommittee-proposed-committee-bills-pcbs-fn-pcs-for-hb-1331/, SHA-256 f72bce0017f5431cd93d9f8cc0bc617ed87a26a2fb434d7033fca6cc0e4cd988.

Full text

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           PCS for HB 1331                                                                                      2023




    1                                         A bill to be entitled
    2              An act relating to municipal utilities; amending s.
    3              166.201, F.S.; authorizing a municipality to fund or
    4              finance general government functions with a portion of
    5              revenues from utility operations; establishing limits
    6              on utility revenue transfers for municipal utilities
    7              that serve customers located outside the municipal
    8              boundaries; amending s. 180.1291, F.S.; modifying
    9              provisions relating to permissible rates, fees, and
10                 charges imposed by municipal water and sewer utilities
11                 on customers located outside the municipal boundaries;
12                 providing an effective date.
13
14         Be It Enacted by the Legislature of the State of Florida:
15
16                 Section 1.         Section 166.201, Florida Statutes, is amended
17         to read:
18                 166.201        Taxes and charges.—
19                 (1)         A municipality may raise, by taxation and licenses
20         authorized by the constitution or general law, or by user
21         charges or fees authorized by ordinance, amounts of money which
22         are necessary for the conduct of municipal government and may
23         enforce their receipt and collection in the manner prescribed by
24         ordinance not inconsistent with law.
25                 (2)(a)        A municipality that owns and operates an electric,

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        PCS for HB 1331                                                                                      2023




26      natural gas, water, or wastewater utility may fund or finance
27      general government functions using a portion of the revenues
28      generated from rates, fees, and charges for the provision of
29      such utility service. The portion of utility revenues that may
30      be used during a fiscal year to fund or finance general
31      government functions, after payment of all utility expenses, may
32      not exceed:
33              1.      For revenues generated from electric utility
34      operations, a transfer rate equal to the amount derived by
35      applying the average of the midpoints of the rates of return on
36      equity approved by the Public Service Commission for each
37      investor-owned electric utility in the state to the municipal
38      electric utility’s revenues.
39              2.      For revenues generated from natural gas utility
40      operations, a transfer rate equal to the amount derived by
41      applying the average of the midpoints of the rates of return on
42      equity approved by the Public Service Commission for each
43      investor-owned natural gas utility in the state to the municipal
44      natural gas utility’s revenues.
45              3.      For revenues generated from water or wastewater
46      operations, a transfer rate equal to the amount derived by
47      applying the rate of return on equity established by the Public
48      Service Commission under s. 367.081(4)(f) to the municipal water
49      or wastewater utility’s revenues.
50              (b)         Except as provided in paragraph (c), the transfer rate

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        PCS for HB 1331                                                                                      2023




51      applied to municipal utility revenues under subparagraphs (a)1.-
52      3. shall be reduced as follows:
53              1.      If more than 15 percent of a municipal utility’s retail
54      customers, as measured by total meters served, are located
55      outside the municipal boundaries, the transfer rate applied to
56      utility revenues shall be reduced by 150 basis points.
57              2.      If more than 30 percent of a municipal utility’s retail
58      customers, as measured by total meters served, are located
59      outside the municipal boundaries, the transfer rate applied to
60      utility revenues shall be reduced by 300 basis points.
61              3. If more than 45 percent of a municipal utility’s retail
62      customers, as measured by total meters served, are located
63      outside the municipal boundaries, the transfer rate applied to
64      utility revenues shall be reduced by 450 basis points.
65              (c)         The reductions specified in paragraph (b) shall not
66      apply to a municipal utility service if the utility service is
67      governed by a utility authority board that, through the election
68      of voting members from outside the municipal boundaries,
69      provides for representation of retail customers located outside
70      the municipal boundaries approximately proportionate to the
71      percentage of such customers, as measured by total meters
72      served, that receive service from the utility.
73              Section 2.         Subsection (1) of section 180.191, Florida
74      Statutes, is amended to read:
75              180.191        Limitation on rates charged consumer outside city

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         PCS for HB 1331                                                                                      2023




 76      limits.—
 77              (1)         Any municipality within the state operating a water or
 78      sewer utility outside of the boundaries of such municipality
 79      shall charge consumers outside the boundaries rates, fees, and
 80      charges determined in one of the following manners:
 81              (a)         It may charge the same rates, fees, and charges as
 82      consumers inside the municipal boundaries. However, in addition
 83      thereto, the municipality may add a surcharge of not mo re than
 84      25 percent of such rates, fees, and charges to consumers outside
 85      the boundaries. Fixing of such rates, fees, and charges in this
 86      manner shall not require a public hearing except as may be
 87      provided for service to consumers inside the municipality.
 88              (b)1.         It may charge rates, fees, and charges that are just
 89      and equitable and which are based on the same factors used in
 90      fixing the rates, fees, and charges for consumers inside the
 91      municipal boundaries. In addition thereto, the municipality may
 92      add a surcharge not to exceed 25 percent of such rates, fees,
 93      and charges for said services to consumers outside the
 94      boundaries. However, the total of all such Such rates, fees, and
 95      charges for the services to consumers outside the boundaries
 96      shall not be more than 25 50 percent greater than in excess of
 97      the total amount the municipality charges consumers served
 98      within the municipality for corresponding service. No such
 99      rates, fees, and charges shall be fixed until after a public
100      hearing at which all of the users of the water or sewer systems;

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         PCS for HB 1331                                                                                      2023




101      owners, tenants, or occupants of property served or to be served
102      thereby; and all others interested shall have an opportunity to
103      be heard concerning the proposed rates, fees, and charges. Any
104      change or revision of such rates, fees, or charges may be made
105      in the same manner as such rates, fees, or charges were
106      originally established, but if such change or revision is to be
107      made substantially pro rata as to all classes of service, both
108      inside and outside the municipality, no hearing or notice shall
109      be required.
110              (2)         Any municipality within the state operating a water or
111      sewer utility that provides service to consumers within the
112      boundaries of a separate municipality through the use of a water
113      treatment plant or sewer treatment plant located within the
114      boundaries of that separate municipality may charge consumers in
115      the separate municipality no more than the rates, fees, and
116      charges imposed on consumers inside its own municipal
117      boundaries.
118              Section 3.         This act shall take effect July 1, 2024.




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