Local Utilities Could See More State Regulation | Headlines

The proposals would ramp up the Florida Public Service Commission’s law of municipal utilities that serve electrical consumers out of doors of town barriers. While the fee has oversight of positive problems for municipal utilities, it does no longer keep watch over their charges.

Under the expenses (HB 1331 and SB 1380), the fee would have energy to keep watch over municipal utilities with consumers out of doors town barriers extra like personal utilities comparable to Florida Power & Light, Duke Energy Florida and Tampa Electric Co. The fee has authority over the personal corporations’ charges.

The expenses emerged after a House panel in fresh weeks raised considerations about municipal utilities that serve consumers out of doors town limits, together with whether or not towns are the use of an excessive amount of cash from the utilities to reinforce their common budget. Residents who are living out of doors municipal barriers can’t vote for town officers.

“Obviously, the local governments really can utilize those funds that come in from the municipal utilities as a way to avoid raising taxes on their constituents because they’re raiding the piggy bank of the utility,” Rep. Wyman Duggan, R-Jacksonville, mentioned all over a gathering closing month of the House Energy, Communications & Cybersecurity Subcommittee. “But … ultimately the bill will come due because money that wasn’t spent on upgrading the utility ultimately will have to be spent from somewhere.”

Rep. Chuck Clemons, R-Newberry, pointed to questions on monetary control at Gainesville Regional Utilities, pronouncing about 40 p.c of its ratepayers are living out of doors the Gainesville barriers.

“The people that are funding this (electric system) bill, they’re beyond concerned, they’re becoming angry with the lack of fiscal responsibility running the local utility,” Clemons mentioned. “Where do they turn for help? That’s my question.”

Amy Zubaly, government director of the Florida Municipal Electric Association, mentioned in a commentary closing week that her group is “reviewing the proposed legislation that would add additional state regulation to municipal utilities to determine its impact on our communities and the affordability of customers’ rates.” The state has 33 municipal electrical utilities, together with in towns comparable to Jacksonville, Orlando, Lakeland, Gainesville and Tallahassee.

“Our member utilities are reinvesting utility revenues into the community through system hardening and resiliency, and they provide direct services to their communities, from employees who volunteer to collect charitable donations to hosting community events to lighting ball fields and playgrounds,” Zubaly mentioned. “Everything Florida’s municipal utilities do is centered on making their communities stronger and the quality of life better for their family, friends and neighbors.”

Jody Finklea, common recommend of the Florida Municipal Electric Association, informed the House panel in February that the Public Service Commission already regulates municipal utilities on problems comparable to storm-system hardening and what’s referred to as “rate structure.” That comes to how charges are apportioned between other teams of shoppers, comparable to residential and industrial consumers — however does no longer come with surroundings the municipal utilities’ charges.

Finklea mentioned municipal utilities can impose provider taxes on individuals who are living throughout the town barriers and identical surcharges on electrical consumers out of doors the limits.

While each newly filed expenses would result in stepped-up law for municipal utilities, the House model would pass additional than the Senate proposal. As examples, it might position restrictions on things like transfers of cash to town common budget and may have an effect on towns that personal water or wastewater utilities.