Florida Senate - 2015 CS for CS for CS for SB 288
By the Committees on Appropriations; Communications, Energy, and
Public Utilities; and Communications, Energy, and Public
Utilities; and Senator Latvala
576-04261-15 2015288c3
1 A bill to be entitled
2 An act relating to utilities regulation; amending s.
3 350.01, F.S.; providing term limits for commissioners
4 appointed after a specified date; requiring the
5 Florida Public Service Commission to hold public
6 customer service meetings in certain service
7 territories; requiring that specified meetings,
8 workshops, hearings, or proceedings of the commission
9 be streamed live and recorded copies be made available
10 on the commission’s web page; amending s. 350.031,
11 F.S.; requiring a person who lobbies a member of the
12 Florida Public Service Commission Nominating Council
13 to register as a lobbyist; reenacting and amending s.
14 350.041, F.S.; requiring public service commissioners
15 to annually complete ethics training; providing
16 applicability; amending s. 350.042, F.S.; revising the
17 prohibition against ex parte communication to apply to
18 any matter that a commissioner knows or reasonably
19 expects will be filed within a certain timeframe;
20 providing legislative intent; defining terms; applying
21 the prohibition against ex parte communications to
22 specified meetings; requiring the Governor to remove
23 from office any commissioner found to have willfully
24 and knowingly violated the ex parte communications
25 statute; amending s. 350.0611, F.S.; authorizing the
26 Public Counsel to be a party to settlement agreements
27 in any proceeding before the commission in which he or
28 she has participated as a party; prohibiting a
29 settlement agreement from being submitted to or
30 approved by the Florida Public Service Commission
31 under certain circumstances; amending s. 366.05, F.S.;
32 limiting the use of tiered rates in conjunction with
33 extended billing periods; limiting deposit amounts;
34 requiring a utility to notify each customer if it has
35 more than one rate for any customer class; requiring
36 the utility to provide good faith assistance to the
37 customer in determining the best rate; assigning
38 responsibility to the customer for the rate selection;
39 requiring that the commission approve new tariffs and
40 certain changes to existing tariffs; amending s.
41 366.82, F.S.; requiring that money received by a
42 utility for the development of demand-side renewable
43 energy systems be used solely for that purpose;
44 creating s. 366.95, F.S.; defining terms; authorizing
45 electric utilities to petition the Florida Public
46 Service Commission for certain financing orders that
47 authorize the issuance of nuclear asset-recovery
48 bonds, the imposition, collection, and periodic
49 adjustments of nuclear asset-recovery charges, and the
50 creation of nuclear asset-recovery property; providing
51 requirements; providing exceptions to the commission’s
52 jurisdictions as it relates to financing orders;
53 specifying duties of electric utilities that have
54 obtained a financing order and issued nuclear asset
55 recovery bonds; specifying properties, requirements
56 and limitations relating to nuclear asset-recovery
57 property; providing requirements as to the sufficiency
58 of the description of certain nuclear asset-recovery
59 property; subjecting financing statements to the
60 Uniform Commercial Code; providing an exception;
61 specifying that nuclear asset-recovery bonds are not
62 public debt; specifying certain state pledges relating
63 to bondholders; declaring that certain entities are
64 not electric utilities under certain circumstances;
65 specifying effect of certain provisions in situations
66 of conflict; providing for protecting the validity of
67 nuclear-asset recovery bonds under certain
68 circumstances; providing penalties; reenacting ss.
69 403.537(1)(a) and 403.9422(1)(a), F.S., relating to
70 determination of need for electric and natural gas
71 transmission lines, respectively; reenacting s.
72 350.043, F.S., relating to the enforcement and
73 interpretation of laws relating to the commission;
74 providing an appropriation; providing an effective
75 date.
76
77 Be It Enacted by the Legislature of the State of Florida:
78
79 Section 1. Subsection (3) of section 350.01, Florida
80 Statutes, is amended, and subsections (8) and (9) are added to
81 that section, to read:
82 350.01 Florida Public Service Commission; terms of
83 commissioners; vacancies; election and duties of chair; quorum;
84 proceedings.—
85 (3) Any person serving on the commission who seeks to be
86 appointed or reappointed shall file with the nominating council
87 no later than June 1 prior to the year in which his or her term
88 expires a statement that he or she desires to serve an
89 additional term. A commissioner appointed after July 1, 2015,
90 may not serve more than three consecutive terms.
91 (8) At least annually, the commission shall hold a customer
92 service meeting, open to the public, in the service territory of
93 each public utility regulated by the commission which supplies
94 electricity.
95 (9) Each meeting, including an internal affairs meeting,
96 workshop, hearing, or proceeding that is attended by two or more
97 commissioners and each meeting, workshop, hearing, or proceeding
98 at which a decision is made which concerns the rights or
99 obligations of any person, shall be streamed live on the
100 Internet, and a recorded copy of such meeting, workshop,
101 hearing, or proceeding must be made available on the
102 commission’s web page.
103 Section 2. Subsection (10) is added to section 350.031,
104 Florida Statutes, to read:
105 350.031 Florida Public Service Commission Nominating
106 Council.—
107 (10) In keeping with the purpose of the council, which is
108 to select nominees to be appointed to an arm of the legislative
109 branch of government, a person who lobbies a member of the
110 council, legislator or nonlegislator, must register as a
111 lobbyist pursuant to s. 11.045 and comply with the requirements
112 of that section.
113 Section 3. Present subsection (3) of section 350.041,
114 Florida Statutes, is reenacted and amended, and a new subsection
115 (3) is added to that section, to read:
116 350.041 Commissioners; standards of conduct.—
117 (3) ETHICS TRAINING.—Beginning January 1, 2016, a
118 commissioner must annually complete 4 hours of ethics training
119 that addresses, at a minimum, s. 8, Art. II of the State
120 Constitution, the Code of Ethics for Public Officers and
121 Employees, and the public records and public meetings laws of
122 this state. This requirement may be satisfied by completion of a
123 continuing legal education class or other continuing
124 professional education class, seminar, or presentation, if the
125 required subjects are covered.
126 (4) COMMISSION ON ETHICS.—The Commission on Ethics shall
127 accept and investigate any alleged violations of this section
128 pursuant to the procedures contained in ss. 112.322-112.3241.
129 The Commission on Ethics shall provide the Governor and the
130 Florida Public Service Commission Nominating Council with a
131 report of its findings and recommendations. The Governor is
132 authorized to enforce the findings and recommendations of the
133 Commission on Ethics, pursuant to part III of chapter 112. A
134 public service commissioner or a member of the Florida Public
135 Service Commission Nominating Council may request an advisory
136 opinion from the Commission on Ethics, pursuant to s.
137 112.322(3)(a), regarding the standards of conduct or
138 prohibitions set forth in this section and ss. 350.031, 350.04,
139 and 350.042.
140 Section 4. Subsections (1) and (3) and paragraph (b) of
141 subsection (7) of section 350.042, Florida Statutes, are amended
142 to read:
143 350.042 Ex parte communications.—
144 (1) A commissioner should accord to every person who is
145 legally interested in a proceeding, or the person’s lawyer, full
146 right to be heard according to law, and, except as authorized by
147 law, shall neither initiate nor consider ex parte communications
148 concerning the merits, threat, or offer of reward in any
149 proceeding under s. 120.569 or s. 120.57 which is currently
150 pending before the commission or which he or she knows or
151 reasonably expects will be filed with the commission within 180
152 days after the date of any such communication, other than a
153 proceeding under s. 120.54 or s. 120.565, workshops, or internal
154 affairs meetings. An No individual may not shall discuss ex
155 parte with a commissioner the merits of any issue that he or she
156 knows will be filed with the commission within 180 90 days. The
157 provisions of This subsection does shall not apply to commission
158 staff.
159 (3)(a) The Legislature finds that it is important to have
160 commissioners who are educated and informed on regulatory
161 policies and developments in science, technology, business
162 management, finance, law, and public policy which are associated
163 with the industries that the commissioners regulate. The
164 Legislature also finds that it is in the public interest for
165 commissioners to become educated and informed on these matters
166 through active participation in meetings that are scheduled by
167 the sponsoring organization, such as sessions, programs, or
168 conferences, which are duly noticed and open to the public.
169 (b) As used in this subsection, the term “active
170 participation” or the term “participating in” includes, but is
171 not limited to, attending or speaking at educational sessions,
172 participating in organization governance by attending meetings,
173 serving on committees, or in leadership positions, participating
174 in panel discussions, and attending meals and receptions
175 associated with such events that are open to all attendees.
176 (c) The prohibition in subsection (1) remains in effect at
177 all times at such meetings wherever located. While participating
178 in such meetings, a commissioner shall:
179 1. Refrain from commenting on or discussing the subject
180 matter of any proceeding under s. 120.569 or s. 120.57 which is
181 currently pending before the commission or which he or she knows
182 or reasonably expects will be filed with the commission within
183 180 days after the meeting; and
184 2. Use reasonable care to ensure that the content of the
185 educational session or other session in which the commissioner
186 participates is not designed to address or create a forum to
187 influence the commissioner on the subject matter of any
188 proceeding under s. 120.569 or s. 120.57 which is currently
189 pending before the commission or which he or she knows or
190 reasonably expects will be filed with the commission within 180
191 days after the meeting This section shall not apply to oral
192 communications or discussions in scheduled and noticed open
193 public meetings of educational programs or of a conference or
194 other meeting of an association of regulatory agencies.
195 (7)
196 (b) If the Commission on Ethics finds that there has been a
197 violation of this section by a public service commissioner, it
198 shall provide the Governor and the Florida Public Service
199 Commission Nominating Council with a report of its findings and
200 recommendations. The Governor shall remove from office a
201 commissioner who willfully and knowingly violates this section
202 and is authorized to enforce the findings and recommendations of
203 the Commission on Ethics, pursuant to part III of chapter 112.
204 Section 5. Section 350.0611, Florida Statutes, is amended
205 to read:
206 350.0611 Public Counsel; duties and powers.—It shall be the
207 duty of the Public Counsel to provide legal representation for
208 the people of the state in proceedings before the commission and
209 in proceedings before counties pursuant to s. 367.171(8). The
210 Public Counsel shall have such powers as are necessary to carry
211 out the duties of his or her office, including, but not limited
212 to, the following specific powers:
213 (1) To recommend to the commission or the counties, by
214 petition, the commencement of any proceeding or action or to
215 appear, in the name of the state or its citizens, in any
216 proceeding or action before the commission or the counties and
217 urge therein any position which he or she deems to be in the
218 public interest, whether consistent or inconsistent with
219 positions previously adopted by the commission or the counties,
220 and utilize therein all forms of discovery available to
221 attorneys in civil actions generally, subject to protective
222 orders of the commission or the counties which shall be
223 reviewable by summary procedure in the circuit courts of this
224 state;
225 (2) To have access to and use of all files, records, and
226 data of the commission or the counties available to any other
227 attorney representing parties in a proceeding before the
228 commission or the counties;
229 (3) In any proceeding before the commission in which he or
230 she has participated as a party, to be a party to a settlement
231 agreement. If he or she is not a party to the settlement
232 agreement, and has filed a written objection to it, the
233 settlement agreement may not be submitted to or approved by the
234 commission;
235 (4)(3) In any proceeding in which he or she has
236 participated as a party, to seek review of any determination,
237 finding, or order of the commission or the counties, or of any
238 hearing examiner designated by the commission or the counties,
239 in the name of the state or its citizens;
240 (5)(4) To prepare and issue reports, recommendations, and
241 proposed orders to the commission, the Governor, and the
242 Legislature on any matter or subject within the jurisdiction of
243 the commission, and to make such recommendations as he or she
244 deems appropriate for legislation relative to commission
245 procedures, rules, jurisdiction, personnel, and functions; and
246 (6)(5) To appear before other state agencies, federal
247 agencies, and state and federal courts in connection with
248 matters under the jurisdiction of the commission, in the name of
249 the state or its citizens.
250 Section 6. Subsection (1) of section 366.05, Florida
251 Statutes, is amended to read:
252 366.05 Powers.—
253 (1)(a) In the exercise of such jurisdiction, the commission
254 shall have power to prescribe fair and reasonable rates and
255 charges, classifications, standards of quality and measurements,
256 including the ability to adopt construction standards that
257 exceed the National Electrical Safety Code, for purposes of
258 ensuring the reliable provision of service, and service rules
259 and regulations to be observed by each public utility; to
260 require repairs, improvements, additions, replacements, and
261 extensions to the plant and equipment of any public utility when
262 reasonably necessary to promote the convenience and welfare of
263 the public and secure adequate service or facilities for those
264 reasonably entitled thereto; to employ and fix the compensation
265 for such examiners and technical, legal, and clerical employees
266 as it deems necessary to carry out the provisions of this
267 chapter; and to adopt rules pursuant to ss. 120.536(1) and
268 120.54 to implement and enforce the provisions of this chapter.
269 (b) If the commission authorizes a public utility to charge
270 tiered rates based upon levels of usage and to vary the billing
271 period, the utility may not charge a customer a higher rate
272 because of an increase in usage attributable to an extension of
273 the billing period.
274 (c) Notwithstanding any commission rule to the contrary, a
275 utility may not charge or receive a deposit in excess of the
276 amounts specified in subparagraphs 1. and 2.
277 1. For an existing customer, the total deposit cannot
278 exceed the total charges for 2 months of average actual usage,
279 calculated by adding the monthly charges from the 12-month
280 period immediately before the date any change in the deposit
281 amount is sought, dividing this total by 12, and multiplying the
282 result by 2.
283 2. For a new customer, the amount may not exceed 2 months
284 of projected charges, calculated using the process specified in
285 subparagraph 1. Once a new customer has had continuous service
286 for a 12-month period, the amount of the deposit shall be
287 recalculated, using actual usage data. Any difference between
288 the projected and actual amounts must be resolved by the
289 customer paying any additional amount due or the utility
290 returning any overcharge.
291 (d) If a utility has more than one rate for any customer
292 class, it must notify each customer in that class of the
293 available rates and explain how the rate is charged to the
294 customer. If a customer contacts the utility seeking assistance
295 in selecting the most advantageous rate, the utility must
296 provide good faith assistance to the customer. The customer is
297 responsible for charges for service calculated under the
298 selected rate.
299 (e) New tariffs and changes to an existing tariff, other
300 than an administrative change that does not substantially change
301 the meaning or operation of the tariff, must be approved by vote
302 of the commission.
303 Section 7. Subsection (2) of section 366.82, Florida
304 Statutes, is amended to read:
305 366.82 Definition; goals; plans; programs; annual reports;
306 energy audits.—
307 (2) The commission shall adopt appropriate goals for
308 increasing the efficiency of energy consumption and increasing
309 the development of demand-side renewable energy systems,
310 specifically including goals designed to increase the
311 conservation of expensive resources, such as petroleum fuels, to
312 reduce and control the growth rates of electric consumption, to
313 reduce the growth rates of weather-sensitive peak demand, and to
314 encourage development of demand-side renewable energy resources.
315 The commission may allow efficiency investments across
316 generation, transmission, and distribution as well as
317 efficiencies within the user base. Money received by a utility
318 for implementation of measures to encourage development of
319 demand-side renewable energy systems shall be used solely for
320 such purpose.
321 Section 8. Section 366.95, Florida Statutes, is created to
322 read:
323 366.95 Financing for certain nuclear generating asset
324 retirement or abandonment costs.—
325 (1) DEFINITIONS.—As used in this section, the term:
326 (a) “Ancillary agreement” means any bond, insurance policy,
327 letter of credit, reserve account, surety bond, interest rate
328 lock or swap arrangement, hedging arrangement, liquidity or
329 credit support arrangement, or other financial arrangement
330 entered into in connection with nuclear asset-recovery bonds.
331 (b) “Assignee” means any entity, including, but not limited
332 to, a corporation, limited liability company, partnership or
333 limited partnership, public authority, trust, financing entity,
334 or other legally recognized entity to which an electric utility
335 assigns, sells, or transfers, other than as security, all or a
336 portion of its interest in or right to nuclear asset-recovery
337 property. The term also includes any entity to which an assignee
338 assigns, sells, or transfers, other than as security, its
339 interest in or right to nuclear asset-recovery property.
340 (c) “Commission” means the Florida Public Service
341 Commission.
342 (d) “Electric utility” or “utility” has the same meaning as
343 in s. 366.8255.
344 (e) “Financing costs” means:
345 1. Interest and acquisition, defeasance, or redemption
346 premiums that are payable on nuclear asset-recovery bonds;
347 2. Any payment required under an ancillary agreement and
348 any amount required to fund or replenish a reserve account or
349 other accounts established under the terms of any indenture,
350 ancillary agreement, or other financing documents pertaining to
351 nuclear asset-recovery bonds;
352 3. Any other cost related to issuing, supporting, repaying,
353 refunding, and servicing nuclear asset-recovery bonds,
354 including, but not limited to, servicing fees, accounting and
355 auditing fees, trustee fees, legal fees, consulting fees,
356 financial advisor fees, administrative fees, placement and
357 underwriting fees, capitalized interest, rating agency fees,
358 stock exchange listing and compliance fees, security
359 registration fees, filing fees, information technology
360 programming costs, and any other costs necessary to otherwise
361 ensure the timely payment of nuclear asset-recovery bonds or
362 other amounts or charges payable in connection with the bonds,
363 including costs related to obtaining the financing order;
364 4. Any taxes and license fees imposed on the revenues
365 generated from the collection of the nuclear asset-recovery
366 charge;
367 5. Any state and local taxes, franchise, gross receipts,
368 and other taxes or similar charges, including, but not limited
369 to, regulatory assessment fees, in any such case whether paid,
370 payable, or accrued; and
371 6. Any costs that are incurred by the commission for any
372 outside consultants or counsel pursuant to subparagraph (2)(c)2.
373 (f) “Financing order” means an order that authorizes the
374 issuance of nuclear asset-recovery bonds; the imposition,
375 collection, and periodic adjustments of the nuclear asset
376 recovery charge; and the creation of nuclear asset-recovery
377 property.
378 (g) “Financing party” means any and all of the following:
379 holders of nuclear asset-recovery bonds and trustees, collateral
380 agents, any party under an ancillary agreement, or any other
381 person acting for the benefit of holders of nuclear asset
382 recovery bonds.
383 (h) “Financing statement” has the same meaning as in Art. 9
384 of the Uniform Commercial Code.
385 (i) “Nuclear asset-recovery bonds” means bonds, debentures,
386 notes, certificates of participation, certificates of beneficial
387 interest, certificates of ownership, or other evidences of
388 indebtedness or ownership that are issued by an electric utility
389 or an assignee pursuant to a financing order, the proceeds of
390 which are used directly or indirectly to recover, finance, or
391 refinance commission-approved nuclear asset-recovery costs and
392 financing costs, and that are secured by or payable from nuclear
393 asset-recovery property. If certificates of participation or
394 ownership are issued, references in this section to principal,
395 interest, or premium shall be construed to refer to comparable
396 amounts under those certificates.
397 (j) “Nuclear asset-recovery charge” means the amounts
398 authorized by the commission to repay, finance, or refinance
399 nuclear asset-recovery costs and financing costs. If determined
400 appropriate by the commission and provided for in a financing
401 order, such amounts are to be imposed on and be a part of all
402 customer bills and be collected by an electric utility or its
403 successors or assignees, or a collection agent, in full through
404 a nonbypassable charge that is separate and apart from the
405 electric utility’s base rates, which charge shall be paid by all
406 existing or future customers receiving transmission or
407 distribution service from the electric utility or its successors
408 or assignees under commission-approved rate schedules or under
409 special contracts, even if a customer elects to purchase
410 electricity from an alternative electricity supplier following a
411 fundamental change in regulation of public utilities in this
412 state.
413 (k) “Nuclear asset-recovery costs” means:
414 1. At the option of and upon petition by the electric
415 utility, and as approved by the commission pursuant to sub
416 subparagraph (2)(c)1.b., pretax costs that an electric utility
417 has incurred or expects to incur which are caused by, associated
418 with, or remain as a result of the early retirement or
419 abandonment of a nuclear generating asset unit that generated
420 electricity and is located in this state where such early
421 retirement or abandonment is deemed to be reasonable and prudent
422 by the commission through a final order approving a settlement
423 or other final order issued by the commission before July 1,
424 2017, and where the pretax costs to be securitized exceed $750
425 million at the time of the filing of the petition. Costs
426 eligible or claimed for recovery pursuant to s. 366.93 are not
427 eligible for securitization under this section unless they were
428 in the electric utility’s rate base and were included in base
429 rates before retirement or abandonment.
430 2. Such pretax costs, where determined appropriate by the
431 commission, include, but are not limited to, the capitalized
432 cost of the retired or abandoned nuclear generating asset unit,
433 other applicable capital and operating costs, accrued carrying
434 charges, deferred expenses, reductions for applicable insurance
435 and salvage proceeds and previously stipulated write-downs or
436 write-offs, if any, and the costs of retiring any existing
437 indebtedness, fees, costs, and expenses to modify existing debt
438 agreements or for waivers or consents related to existing debt
439 agreements.
440 (l) “Nuclear asset-recovery property” means:
441 1. All rights and interests of an electric utility or
442 successor or assignee of the electric utility under a financing
443 order, including the right to impose, bill, collect, and receive
444 nuclear asset-recovery charges authorized under the financing
445 order and to obtain periodic adjustments to such charges as
446 provided in the financing order; or
447 2. All revenues, collections, claims, rights to payments,
448 payments, money, or proceeds arising from the rights and
449 interests specified in subparagraph 1., regardless of whether
450 such revenues, collections, claims, rights to payment, payments,
451 money, or proceeds are imposed, billed, received, collected, or
452 maintained together with or commingled with other revenues,
453 collections, rights to payment, payments, money, or proceeds.
454 (m) “Pledgee” means a financing party to which an electric
455 utility or its successors or assignees mortgages, negotiates,
456 hypothecates, pledges, or creates a security interest or lien on
457 all or any portion of its interest in or right to nuclear asset
458 recovery property.
459 (n) “Uniform Commercial Code” has the same meaning as in
460 chapters 670-680.
461 (2) FINANCING ORDERS.—
462 (a) An electric utility may petition the commission for a
463 financing order. For each petition, the electric utility shall:
464 1. Describe the nuclear asset-recovery costs;
465 2. Indicate whether the utility proposes to finance all or
466 a portion of the nuclear asset-recovery costs using nuclear
467 asset-recovery bonds. If the utility proposes to finance a
468 portion of such costs, the utility must identify which specific
469 portion in the petition;
470 3. Estimate the financing costs related to the nuclear
471 asset-recovery bonds;
472 4. Estimate the nuclear asset-recovery charges necessary to
473 recover the nuclear asset-recovery costs and financing costs and
474 the period for recovery of such costs;
475 5. Estimate any projected cost savings, based on current
476 market conditions, or demonstrate how the issuance of nuclear
477 asset-recovery bonds and the imposition of nuclear asset
478 recovery charges would avoid or significantly mitigate rate
479 impacts to customers as compared with the traditional method of
480 financing and recovering nuclear asset-recovery costs from
481 customers;
482 6. Demonstrate that securitization has a significant
483 likelihood of resulting in lower overall costs or would avoid or
484 significantly mitigate rate impacts compared to traditional
485 method of cost recovery; and
486 7. File direct testimony supporting the petition.
487 (b) If an electric utility is subject to a settlement
488 agreement that governs the type and amount of principal costs
489 that could be included in nuclear asset-recovery costs, the
490 electric utility must file a petition, or have filed a petition,
491 with the commission for review and approval of those principal
492 costs no later than 60 days before filing a petition for a
493 financing order pursuant to this section. The commission may not
494 authorize any such principal costs to be included or excluded,
495 as applicable, as nuclear asset-recovery costs if such inclusion
496 or exclusion, as applicable, of those costs would otherwise be
497 precluded by such electric utility’s settlement agreement.
498 (c)1. Proceedings on a petition submitted pursuant to
499 paragraph (a) begin with the petition by an electric utility,
500 filed subject to the timeframe specified in paragraph (b), if
501 applicable, and shall be disposed of in accordance with chapter
502 120 and applicable rules, except that this section, to the
503 extent applicable, controls.
504 a. Within 7 days after the filing of a petition, the
505 commission shall publish a case schedule, which must place the
506 matter before the commission on an agenda that permits a
507 commission decision no later than 120 days after the date the
508 petition is filed.
509 b. No later than 135 days after the date the petition is
510 filed, the commission shall issue a financing order or an order
511 rejecting the petition. A party to the commission proceeding may
512 petition the commission for reconsideration of the financing
513 order within 5 days after the date of its issuance. The
514 commission shall issue a financing order authorizing financing
515 of reasonable and prudent nuclear asset-recovery costs and
516 financing costs if the commission finds that the issuance of the
517 nuclear asset-recovery bonds and the imposition of nuclear
518 asset-recovery charges authorized by the financing order have a
519 significant likelihood of resulting in lower overall costs or
520 would avoid or significantly mitigate rate impacts to customers
521 as compared with the traditional method of financing and
522 recovering nuclear asset-recovery costs. Any determination of
523 whether nuclear asset-recovery costs are reasonable and prudent
524 shall be made with reference to the general public interest and
525 in accordance with paragraph (b), if applicable.
526 2. In a financing order issued to an electric utility, the
527 commission shall:
528 a. Except as provided in sub-subparagraph d. and in
529 subparagraph 4., specify the amount of nuclear asset-recovery
530 costs to be financed using nuclear asset-recovery bonds, taking
531 into consideration, to the extent the commission deems
532 appropriate, any other methods used to recover these costs. The
533 commission shall describe and estimate the amount of financing
534 costs which may be recovered through nuclear asset-recovery
535 charges and specify the period over which such costs may be
536 recovered. Any such determination as to the overall time period
537 for cost recovery must be consistent with a settlement
538 agreement, if any, as referenced in paragraph (b);
539 b. Determine if the proposed structuring, expected pricing,
540 and financing costs of the nuclear asset-recovery bonds have a
541 significant likelihood of resulting in lower overall costs or
542 would avoid or significantly mitigate rate impacts to customers
543 as compared with the traditional method of financing and
544 recovering nuclear asset-recovery costs. A financing order must
545 provide detailed findings of fact addressing cost-effectiveness
546 and associated rate impacts upon retail customers and retail
547 customer classes;
548 c. Require, for the period specified pursuant to sub
549 subparagraph a., that the imposition and collection of nuclear
550 asset-recovery charges authorized under a financing order be
551 nonbypassable and paid by all existing and future customers
552 receiving transmission or distribution service from the electric
553 utility or its successors or assignees under commission-approved
554 rate schedules or under special contracts, even if a customer
555 elects to purchase electricity from an alternative electric
556 supplier following a fundamental change in regulation of public
557 utilities in this state;
558 d. Include a formula-based true-up mechanism for making
559 expeditious periodic adjustments in the nuclear asset-recovery
560 charges that customers are required to pay pursuant to the
561 financing order and for making any adjustments that are
562 necessary to correct for any overcollection or undercollection
563 of the charges or to otherwise ensure the timely payment of
564 nuclear asset-recovery bonds and financing costs and other
565 required amounts and charges payable in connection with the
566 nuclear asset-recovery bonds;
567 e. Specify the nuclear asset-recovery property that is, or
568 shall be, created in favor of an electric utility or its
569 successors or assignees and that shall be used to pay or secure
570 nuclear asset-recovery bonds and all financing costs;
571 f. Specify the degree of flexibility to be afforded to the
572 electric utility in establishing the terms and conditions of the
573 nuclear asset-recovery bonds, including, but not limited to,
574 repayment schedules, expected interest rates, and other
575 financing costs consistent with sub-subparagraphs a.-e.;
576 g. Require nuclear asset-recovery charges to be allocated
577 to the customer classes using the criteria set out in s.
578 366.06(1), in the manner in which these costs or their
579 equivalent were allocated in the cost-of-service study that was
580 approved in connection with the electric utility’s last rate
581 case and that is in effect during the nuclear asset-recovery
582 charge annual billing period. If the electric utility’s last
583 rate case was resolved by a settlement agreement, the cost-of
584 service methodology that was adopted in the settlement agreement
585 in that case and that is in effect during the nuclear asset
586 recovery charge annual billing period shall be used;
587 h. Require, after the final terms of an issuance of nuclear
588 asset-recovery bonds have been established and before the
589 issuance of nuclear asset-recovery bonds, that the electric
590 utility determine the resulting initial nuclear asset-recovery
591 charge in accordance with the financing order and that such
592 initial nuclear asset-recovery charge be final and effective
593 upon the issuance of such nuclear asset-recovery bonds without
594 further commission action so long as the nuclear asset-recovery
595 charge is consistent with the financing order; and
596 i. Include any other conditions that the commission
597 considers appropriate and that are authorized by this section.
598
599 In performing the responsibilities of this subparagraph and
600 subparagraph 5., the commission may engage outside consultants
601 or counsel. All expenses associated with such services must be
602 included as part of financing costs and included in the nuclear
603 asset-recovery charge.
604 3. A financing order issued to an electric utility may
605 provide that creation of the electric utility’s nuclear asset
606 recovery property pursuant to sub-subparagraph 2.e. is
607 conditioned upon, and simultaneous with, the sale or other
608 transfer of the nuclear asset-recovery property to an assignee
609 and the pledge of the nuclear asset-recovery property to secure
610 nuclear asset-recovery bonds.
611 4. If the commission issues a financing order and nuclear
612 asset-recovery bonds are issued, the electric utility or
613 assignee must file with the commission at least biannually a
614 petition or a letter applying the formula-based true-up
615 mechanism pursuant to sub-subparagraph 2.d. and, based on
616 estimates of consumption for each rate class and other
617 mathematical factors, requesting administrative approval to make
618 the adjustments described in sub-subparagraph 2.d. The review of
619 such a request is limited to determining whether there is any
620 mathematical error in the application of the formula-based
621 mechanism relating to the amount of any overcollection or
622 undercollection of nuclear asset-recovery charges and the amount
623 of any adjustment. Such adjustments must ensure the recovery of
624 revenues sufficient to provide for the timely payment of
625 principal, interest, acquisition, defeasance, financing costs,
626 or redemption premium and other fees, costs, and charges
627 relating to nuclear asset-recovery bonds approved under the
628 financing order. Within 60 days after receiving an electric
629 utility’s request pursuant to this paragraph, the commission
630 must approve the request or inform the electric utility of any
631 mathematical errors in its calculation. If the commission
632 informs the utility of mathematical errors in its calculation,
633 the utility may correct its error and refile its request. The
634 timeframes previously described in this paragraph apply to a
635 refiled request.
636 5. Within 120 days after the issuance of nuclear asset
637 recovery bonds, the electric utility shall file with the
638 commission information on the actual costs of the nuclear asset
639 recovery bonds issuance. The commission shall review, on a
640 reasonably comparable basis, such information to determine if
641 such costs incurred in the issuance of the bonds resulted in the
642 lowest overall costs that were reasonably consistent with market
643 conditions at the time of the issuance and the terms of the
644 financing order. The commission may disallow all incremental
645 issuance costs in excess of the lowest overall costs by
646 requiring the electric utility to make a credit to the capacity
647 cost recovery clause in an amount equal to the excess of actual
648 issuance costs incurred, and paid for out of nuclear asset
649 recovery bonds proceeds, and the lowest overall issuance costs
650 as determined by the commission. The commission may not make
651 adjustments to the nuclear asset-recovery charges for any such
652 excess issuance costs.
653 6. Subsequent to the transfer of nuclear asset-recovery
654 property to an assignee or the issuance of nuclear asset
655 recovery bonds authorized thereby, whichever is earlier, a
656 financing order is irrevocable and, except as provided in
657 subparagraph 4. and paragraph (d), the commission may not amend,
658 modify, or terminate the financing order by any subsequent
659 action or reduce, impair, postpone, terminate, or otherwise
660 adjust nuclear asset-recovery charges approved in the financing
661 order. After the issuance of a financing order, the electric
662 utility retains sole discretion regarding whether to assign,
663 sell, or otherwise transfer nuclear asset-recovery property or
664 to cause nuclear asset-recovery bonds to be issued, including
665 the right to defer or postpone such assignment, sale, transfer,
666 or issuance. If the electric utility decides not to cause
667 nuclear asset-recovery bonds to be issued, the electric utility
668 may not recover financing costs as defined in paragraph (1)(e)
669 from customers.
670 (d) At the request of an electric utility, the commission
671 may commence a proceeding and issue a subsequent financing order
672 that provides for refinancing, retiring, or refunding nuclear
673 asset-recovery bonds issued pursuant to the original financing
674 order if the commission finds that the subsequent financing
675 order satisfies all of the criteria specified in paragraph (c).
676 Effective upon retirement of the refunded nuclear asset-recovery
677 bonds and the issuance of new nuclear asset-recovery bonds, the
678 commission shall adjust the related nuclear asset-recovery
679 charges accordingly.
680 (e) Within 30 days after the commission issues a financing
681 order or a decision denying a request for reconsideration or, if
682 the request for reconsideration is granted, within 30 days after
683 the commission issues its decision on reconsideration, an
684 adversely affected party may petition for judicial review in the
685 Florida Supreme Court. The petition for review must be served
686 upon the executive director of the commission personally or by
687 service at the office of the commission. Review on appeal shall
688 be based solely on the record before the commission and briefs
689 to the court and is limited to determining whether the financing
690 order, or the order on reconsideration, conforms to the state
691 constitution and laws of this state and federal law and is
692 within the authority of the commission under this section.
693 Inasmuch as delay in the determination of the appeal of a
694 financing order will delay the issuance of nuclear asset
695 recovery bonds, thereby diminishing savings to customers which
696 might be achieved if such nuclear asset-recovery bonds were
697 issued as contemplated by a financing order, the Florida Supreme
698 Court shall proceed to hear and determine the action as
699 expeditiously as practicable and give the action precedence over
700 other matters not accorded similar precedence by law.
701 (f)1. A financing order remains in effect and all such
702 nuclear asset-recovery property continues to exist until nuclear
703 asset-recovery bonds issued pursuant to the financing order have
704 been paid in full and all commission-approved financing costs of
705 such nuclear asset-recovery bonds have been recovered in full.
706 2. A financing order issued to an electric utility remains
707 in effect and unabated notwithstanding the reorganization,
708 bankruptcy, or other insolvency proceedings, or merger, or sale
709 of the electric utility or its successors or assignees.
710 (3) EXCEPTIONS TO COMMISSION JURISDICTION.—
711 (a) If the commission issues a financing order to an
712 electric utility pursuant to this section, the commission may
713 not, in exercising its powers and carrying out its duties
714 regarding any matter within its authority pursuant to this
715 chapter, consider the nuclear asset-recovery bonds issued
716 pursuant to the financing order to be the debt of the electric
717 utility other than for federal income tax purposes, consider the
718 nuclear asset-recovery charges paid under the financing order to
719 be the revenue of the electric utility for any purpose, or
720 consider the nuclear asset-recovery costs or financing costs
721 specified in the financing order to be the costs of the electric
722 utility, nor may the commission determine any action taken by an
723 electric utility which is consistent with the financing order to
724 be unjust or unreasonable.
725 (b) The commission may not order or otherwise directly or
726 indirectly require an electric utility to use nuclear asset
727 recovery bonds to finance any project, addition, plant,
728 facility, extension, capital improvement, equipment, or any
729 other expenditure, unless that expenditure is a nuclear asset
730 recovery cost and the electric utility has filed a petition
731 pursuant to paragraph (2)(a) to finance such expenditure using
732 nuclear asset-recovery bonds. The commission may not refuse to
733 allow an electric utility to recover nuclear asset-recovery
734 costs in an otherwise permissible fashion, or refuse or
735 condition authorization or approval pursuant to s. 366.04 of the
736 issuance and sale by an electric utility of securities or the
737 assumption by it of liabilities or obligations, solely because
738 of the potential availability of nuclear asset-recovery cost
739 financing.
740 (4) ELECTRIC UTILITY DUTIES.—The electric bills of an
741 electric utility that has obtained a financing order and caused
742 nuclear asset-recovery bonds to be issued must:
743 (a) Explicitly reflect that a portion of the charges on
744 such bill represents nuclear asset-recovery charges approved in
745 a financing order issued to the electric utility and, if the
746 nuclear asset-recovery property has been transferred to an
747 assignee, must include a statement to the effect that the
748 assignee is the owner of the rights to nuclear asset-recovery
749 charges and that the electric utility or other entity, if
750 applicable, is acting as a collection agent or servicer for the
751 assignee. The tariff applicable to customers must indicate the
752 nuclear asset-recovery charge and the ownership of that charge.
753 (b) Include the nuclear asset-recovery charge on each
754 customer’s bill as a separate line item titled “Asset
755 Securitization Charge” and include both the rate and the amount
756 of the charge on each bill.
757
758 The failure of an electric utility to comply with this
759 subsection does not invalidate, impair, or affect any financing
760 order, nuclear asset-recovery property, nuclear asset-recovery
761 charge, or nuclear asset-recovery bonds, but does subject the
762 electric utility to penalties under s. 366.095.
763 (5) NUCLEAR ASSET-RECOVERY PROPERTY.—
764 (a)1. All nuclear asset-recovery property that is specified
765 in a financing order constitutes an existing, present property
766 right or interest therein, notwithstanding that the imposition
767 and collection of nuclear asset-recovery charges depends on the
768 electric utility to which the financing order is issued
769 performing its servicing functions relating to the collection of
770 nuclear asset-recovery charges and on future electricity
771 consumption. Such property exists whether or not the revenues or
772 proceeds arising from the property have been billed, have
773 accrued, or have been collected and notwithstanding the fact
774 that the value or amount of the property is dependent on the
775 future provision of service to customers by the electric utility
776 or its successors or assignees.
777 2. Nuclear asset-recovery property specified in a financing
778 order exists until nuclear asset-recovery bonds issued pursuant
779 to the financing order are paid in full and all financing costs
780 and other costs of such nuclear asset-recovery bonds have been
781 recovered in full.
782 3. All or any portion of nuclear asset-recovery property
783 specified in a financing order issued to an electric utility may
784 be transferred, sold, conveyed, or assigned to a successor or
785 assignee that is wholly owned, directly or indirectly, by the
786 electric utility, created for the limited purpose of acquiring,
787 owning, or administering nuclear asset-recovery property or
788 issuing nuclear asset-recovery bonds under the financing order.
789 All or any portion of nuclear asset-recovery property may be
790 pledged to secure nuclear asset-recovery bonds issued pursuant
791 to the financing order, amounts payable to financing parties and
792 to counterparties under any ancillary agreements, and other
793 financing costs. Each such transfer, sale, conveyance,
794 assignment, or pledge by an electric utility or affiliate of an
795 electric utility is considered to be a transaction in the
796 ordinary course of business.
797 4. If an electric utility defaults on any required payment
798 of charges arising from nuclear asset-recovery property
799 specified in a financing order, a court, upon application by an
800 interested party, and without limiting any other remedies
801 available to the applying party, shall order the sequestration
802 and payment of the revenues arising from the nuclear asset
803 recovery property to the financing parties. Any such financing
804 order remains in full force and effect notwithstanding any
805 reorganization, bankruptcy, or other insolvency proceedings with
806 respect to the electric utility or its successors or assignees.
807 5. The interest of a transferee, purchaser, acquirer,
808 assignee, or pledgee in nuclear asset-recovery property
809 specified in a financing order issued to an electric utility,
810 and in the revenue and collections arising from that property,
811 is not subject to setoff, counterclaim, surcharge, or defense by
812 the electric utility or any other person or in connection with
813 the reorganization, bankruptcy, or other insolvency of the
814 electric utility or any other entity.
815 6. Any successor to an electric utility, whether pursuant
816 to any reorganization, bankruptcy, or other insolvency
817 proceeding or whether pursuant to any merger or acquisition,
818 sale, or other business combination, or transfer by operation of
819 law, as a result of electric utility restructuring or otherwise,
820 must perform and satisfy all obligations of, and have the same
821 rights under a financing order as, the electric utility under
822 the financing order in the same manner and to the same extent as
823 the electric utility, including collecting and paying to the
824 person entitled to receive the revenues, collections, payments,
825 or proceeds of the nuclear asset-recovery property.
826 (b)1. Except as provided in this section, the Uniform
827 Commercial Code does not apply to nuclear asset-recovery
828 property or any right, title, or interest of an electric utility
829 or assignee described in subparagraph (1)(l)1., whether before
830 or after the issuance of the financing order. In addition, such
831 right, title, or interest pertaining to a financing order,
832 including, but not limited to, the associated nuclear asset
833 recovery property and any revenues, collections, claims, rights
834 to payment, payments, money, or proceeds of or arising from
835 nuclear asset-recovery charges pursuant to such order, is not
836 deemed proceeds of any right or interest other than in the
837 financing order and the nuclear asset-recovery property arising
838 from the order.
839 2. The creation, attachment, granting, perfection,
840 priority, and enforcement of liens and security interests in
841 nuclear asset-recovery property to secure nuclear asset-recovery
842 bonds is governed solely by this section and, except to the
843 extent provided in this section, not by the Uniform Commercial
844 Code.
845 3. A valid, enforceable, and attached lien and security
846 interest in nuclear asset-recovery property may be created only
847 upon the later of:
848 a. The issuance of a financing order;
849 b. The execution and delivery of a security agreement with
850 a financing party in connection with the issuance of nuclear
851 asset-recovery bonds; or
852 c. The receipt of value for nuclear asset-recovery bonds.
853
854 A valid, enforceable, and attached security interest is
855 perfected against third parties as of the date of filing of a
856 financing statement in the Florida Secured Transaction Registry,
857 as defined in s. 679.527, in accordance with subparagraph 4.,
858 and is thereafter a continuously perfected lien; and such
859 security interest in the nuclear asset-recovery property and all
860 proceeds of such nuclear asset-recovery property, whether or not
861 billed, accrued, or collected, and whether or not deposited into
862 a deposit account and however evidenced, has priority in
863 accordance with subparagraph 8. and takes precedence over any
864 subsequent judicial or other lien creditor. A continuation
865 statement does not need to be filed to maintain such perfection.
866 4. Financing statements required to be filed pursuant to
867 this section must be filed, maintained, and indexed in the same
868 manner and in the same system of records maintained for the
869 filing of financing statements in the Florida Secured
870 Transaction Registry, as defined in s. 679.527. The filing of
871 such a financing statement is the only method of perfecting a
872 lien or security interest on nuclear asset-recovery property.
873 5. The priority of a lien and security interest perfected
874 under this paragraph is not impaired by any later modification
875 of the financing order or nuclear asset-recovery property or by
876 the commingling of funds arising from nuclear asset-recovery
877 property with other funds, and any other security interest that
878 may apply to those funds is terminated as to all funds
879 transferred to a segregated account for the benefit of an
880 assignee or a financing party or to an assignee or financing
881 party directly.
882 6. If a default or termination occurs under the terms of
883 the nuclear asset-recovery bonds, the financing parties or their
884 representatives may foreclose on or otherwise enforce their lien
885 and security interest in any nuclear asset-recovery property as
886 if they were a secured party under Art. 9 of the Uniform
887 Commercial Code; and a court may order that amounts arising from
888 nuclear asset-recovery property be transferred to a separate
889 account for the financing parties’ benefit, to which their lien
890 and security interest applies. Upon application by or on behalf
891 of the financing parties to a circuit court of this state, the
892 court shall order the sequestration and payment to the financing
893 parties of revenues arising from the nuclear asset-recovery
894 property.
895 7. The interest of a pledgee of an interest or any rights
896 in any nuclear asset-recovery property is not perfected until
897 filing as provided in subparagraph 4.
898 8. The priority of the conflicting interests of pledgees in
899 the same interest or rights in any nuclear asset-recovery
900 property is determined as follows:
901 a. Conflicting perfected interests or rights of pledgees
902 rank according to priority in time of perfection. Priority dates
903 from the time a filing covering the interest or right is made in
904 accordance with this paragraph.
905 b. A perfected interest or right of a pledgee has priority
906 over a conflicting unperfected interest or right of a pledgee.
907 c. A perfected interest or right of a pledgee has priority
908 over a person who becomes a lien creditor after the perfection
909 of such pledgee’s interest or right.
910 (c) The sale, assignment, or transfer of nuclear asset
911 recovery property is governed by this paragraph. All of the
912 following apply to a sale, assignment, or transfer under this
913 paragraph:
914 1. The sale, conveyance, assignment, or other transfer of
915 nuclear asset-recovery property by an electric utility to an
916 assignee that the parties have in the governing documentation
917 expressly stated to be a sale or other absolute transfer is an
918 absolute transfer and true sale of, and not a pledge of or
919 secured transaction relating to, the transferor’s right, title,
920 and interest in, to, and under the nuclear asset-recovery
921 property, other than for federal and state income and franchise
922 tax purposes. After such a transaction, the nuclear asset
923 recovery property is not subject to any claims of the transferor
924 or the transferor’s creditors, other than creditors holding a
925 prior security interest in the nuclear asset-recovery property
926 perfected under paragraph (b).
927 2. The characterization of the sale, conveyance,
928 assignment, or other transfer as a true sale or other absolute
929 transfer under subparagraph 1. and the corresponding
930 characterization of the transferee’s property interest are not
931 affected by:
932 a. Commingling of amounts arising with respect to the
933 nuclear asset-recovery property with other amounts;
934 b. The retention by the transferor of a partial or residual
935 interest, including an equity interest, in the nuclear asset
936 recovery property, whether direct or indirect, or whether
937 subordinate or otherwise;
938 c. Any recourse that the transferee may have against the
939 transferor other than any such recourse created, contingent
940 upon, or otherwise occurring or resulting from one or more of
941 the transferor’s customers’ inability or failure to timely pay
942 all or a portion of the nuclear asset-recovery charge;
943 d. Any indemnifications, obligations, or repurchase rights
944 made or provided by the transferor, other than indemnity or
945 repurchase rights based solely upon a transferor’s customers’
946 inability or failure to timely pay all or a portion of the
947 nuclear asset-recovery charge;
948 e. The responsibility of the transferor to collect nuclear
949 asset-recovery charges;
950 f. The treatment of the sale, conveyance, assignment, or
951 other transfer for tax, financial reporting, or other purposes;
952 or
953 g. The granting or providing to holders of nuclear asset
954 recovery bonds a preferred right to the nuclear asset-recovery
955 property or credit enhancement by the electric utility or its
956 affiliates with respect to such nuclear asset-recovery bonds.
957 3. Any right that an electric utility has in the nuclear
958 asset-recovery property before its pledge, sale, or transfer or
959 any other right created under this section or created in the
960 financing order and assignable under this section or assignable
961 pursuant to a financing order is property in the form of a
962 contract right. Transfer of an interest in nuclear asset
963 recovery property to an assignee is enforceable only upon the
964 later of the issuance of a financing order, the execution and
965 delivery of transfer documents to the assignee in connection
966 with the issuance of nuclear asset-recovery bonds, and the
967 receipt of value. An enforceable transfer of an interest in
968 nuclear asset-recovery property to an assignee is perfected
969 against all third parties, including subsequent judicial or
970 other lien creditors, when a notice of that transfer has been
971 given by the filing of a financing statement in accordance with
972 subparagraph (b)4. The transfer is perfected against third
973 parties as of the date of filing.
974 4. Financing statements required to be filed under this
975 section must be maintained and indexed in the same manner and in
976 the same system of records maintained for the filing of
977 financing statements in the Florida Secured Transaction
978 Registry, as defined in s. 679.527. The filing of such a
979 financing statement is the only method of perfecting a transfer
980 of nuclear asset-recovery property.
981 5. The priority of a transfer perfected under this section
982 is not impaired by any later modification of the financing order
983 or nuclear asset-recovery property or by the commingling of
984 funds arising from nuclear asset-recovery property with other
985 funds. Any other security interest that may apply to those
986 funds, other than a security interest perfected under paragraph
987 (b), is terminated when they are transferred to a segregated
988 account for the assignee or a financing party. If nuclear asset
989 recovery property has been transferred to an assignee or
990 financing party, any proceeds of that property must be held in
991 trust for the assignee or financing party.
992 6. The priority of the conflicting interests of assignees
993 in the same interest or rights in any nuclear asset-recovery
994 property is determined as follows:
995 a. Conflicting perfected interests or rights of assignees
996 rank according to priority in time of perfection. Priority dates
997 from the time a filing covering the transfer is made in
998 accordance with subparagraph (b)4.
999 b. A perfected interest or right of an assignee has
1000 priority over a conflicting unperfected interest or right of an
1001 assignee.
1002 c. A perfected interest or right of an assignee has
1003 priority over a person who becomes a lien creditor after the
1004 perfection of such assignee’s interest or right.
1005 (6) DESCRIPTION OR INDICATION OF PROPERTY.—The description
1006 of nuclear asset-recovery property being transferred to an
1007 assignee in any sale agreement, purchase agreement, or other
1008 transfer agreement, granted or pledged to a pledgee in any
1009 security agreement, pledge agreement, or other security
1010 document, or indicated in any financing statement is only
1011 sufficient if such description or indication describes the
1012 financing order that created the nuclear asset-recovery property
1013 and states that such agreement or financing statement covers all
1014 or part of such property described in such financing order. This
1015 subsection applies to all purported transfers of, and all
1016 purported grants or liens or security interests in, nuclear
1017 asset-recovery property, regardless of whether the related sale
1018 agreement, purchase agreement, other transfer agreement,
1019 security agreement, pledge agreement, or other security document
1020 was entered into, or any financing statement was filed, before
1021 or after the effective date of this section.
1022 (7) FINANCING STATEMENTS.—All financing statements
1023 referenced in this section are subject to Part V of Art. 9 of
1024 the Uniform Commercial Code, except that the requirement as to
1025 continuation statements does not apply.
1026 (8) CHOICE OF LAW.—The law governing the validity,
1027 enforceability, attachment, perfection, priority, and exercise
1028 of remedies with respect to the transfer of an interest or right
1029 or the pledge or creation of a security interest in any nuclear
1030 asset-recovery property shall be the laws of this state, and
1031 exclusively, the laws of this section.
1032 (9) NUCLEAR ASSET-RECOVERY BONDS NOT PUBLIC DEBT.—The state
1033 or its political subdivisions are not liable on any nuclear
1034 asset-recovery bonds, and the bonds are not a debt or a general
1035 obligation of the state or any of its political subdivisions,
1036 agencies, or instrumentalities. An issue of nuclear asset
1037 recovery bonds does not, directly or indirectly or contingently,
1038 obligate the state or any agency, political subdivision, or
1039 instrumentality of the state to levy any tax or make any
1040 appropriation for payment of the nuclear asset-recovery bonds,
1041 other than in their capacity as consumers of electricity. This
1042 subsection does not preclude bond guarantees or enhancements
1043 pursuant to this section. All nuclear asset-recovery bonds must
1044 contain on the face thereof a statement to the following effect:
1045 “Neither the full faith and credit nor the taxing power of the
1046 State of Florida is pledged to the payment of the principal of,
1047 or interest on, this bond.”
1048 (10) NUCLEAR ASSET-RECOVERY BONDS AS LEGAL INVESTMENTS WITH
1049 RESPECT TO INVESTORS THAT REQUIRE STATUTORY AUTHORITY REGARDING
1050 LEGAL INVESTMENT.—All of the following entities may legally
1051 invest any sinking funds, moneys, or other funds belonging to
1052 them or under their control in nuclear asset-recovery bonds:
1053 (a) The state, the investment board, municipal
1054 corporations, political subdivisions, public bodies, and public
1055 officers, except for members of the commission.
1056 (b) Banks and bankers, savings and loan associations,
1057 credit unions, trust companies, savings banks and institutions,
1058 investment companies, insurance companies, insurance
1059 associations, and other persons carrying on a banking or
1060 insurance business.
1061 (c) Personal representatives, guardians, trustees, and
1062 other fiduciaries.
1063 (d) All other persons whatsoever who are now or may
1064 hereafter be authorized to invest in bonds or other obligations
1065 of a similar nature.
1066 (11) STATE PLEDGE.—
1067 (a) For purposes of this subsection, the term “bondholder”
1068 means a person who holds a nuclear asset-recovery bond.
1069 (b) The state pledges to and agrees with bondholders, the
1070 owners of the nuclear asset-recovery property, and other
1071 financing parties that the state will not:
1072 1. Alter the provisions of this section which make the
1073 nuclear asset-recovery charges imposed by a financing order
1074 irrevocable, binding, and nonbypassable charges;
1075 2. Take or permit any action that impairs or would impair
1076 the value of nuclear asset-recovery property or revises the
1077 nuclear asset-recovery costs for which recovery is authorized;
1078 or
1079 3. Except as authorized under this section, reduce, alter,
1080 or impair nuclear asset-recovery charges that are to be imposed,
1081 collected, and remitted for the benefit of the bondholders and
1082 other financing parties until any and all principal, interest,
1083 premium, financing costs and other fees, expenses, or charges
1084 incurred, and any contracts to be performed, in connection with
1085 the related nuclear asset-recovery bonds have been paid and
1086 performed in full.
1087
1088 This paragraph does not preclude limitation or alteration if
1089 full compensation is made by law for the full protection of the
1090 nuclear asset-recovery charges collected pursuant to a financing
1091 order and of the holders of nuclear asset-recovery bonds and any
1092 assignee or financing party entering into a contract with the
1093 electric utility.
1094 (c) Any person or entity that issues nuclear asset-recovery
1095 bonds may include the pledge specified in paragraph (b) in the
1096 nuclear asset-recovery bonds and related documentation.
1097 (12) NOT AN ELECTRIC UTILITY.—An assignee or financing
1098 party is not an electric utility or person providing electric
1099 service by virtue of engaging in the transactions described in
1100 this section.
1101 (13) CONFLICTS.—If there is a conflict between this section
1102 and any other law regarding the attachment, assignment, or
1103 perfection, or the effect of perfection, or priority of,
1104 assignment or transfer of, or security interest in nuclear
1105 asset-recovery property, this section governs.
1106 (14) EFFECT OF INVALIDITY ON ACTIONS.—Effective on the date
1107 that nuclear asset-recovery bonds are first issued under this
1108 section, if any provision of this section is held to be invalid
1109 or is invalidated, superseded, replaced, repealed, or expires
1110 for any reason, that occurrence does not affect the validity of
1111 any action allowed under this section which is taken by an
1112 electric utility, an assignee, a financing party, a collection
1113 agent, or a party to an ancillary agreement; and any such action
1114 remains in full force and effect with respect to all nuclear
1115 asset-recovery bonds issued or authorized in a financing order
1116 issued under this section before the date that such provision is
1117 held to be invalid or is invalidated, superseded, replaced, or
1118 repealed, or that expires for any reason.
1119 (15) PENALTIES.—A violation of this section or of a
1120 financing order issued under this section subjects the utility
1121 that obtained the order to penalties under s. 366.095 and to any
1122 other penalties or remedies that the commission determines are
1123 necessary to achieve the intent of this section and the intent
1124 and terms of the financing order and to prevent any increase in
1125 financial impact to the utility’s customers above that set forth
1126 in the financing order. If the commission orders a penalty or a
1127 remedy for a violation, the monetary penalty or remedy and the
1128 costs of defending against the proposed penalty or remedy may
1129 not be recovered from the customers. The commission may not make
1130 adjustments to nuclear asset-recovery charges for any such
1131 penalties or remedies.
1132 Section 9. For the purpose of incorporating the amendment
1133 made by this act to section 350.01, Florida Statutes, in a
1134 reference thereto, paragraph (a) of subsection (1) of section
1135 403.537, Florida Statutes, is reenacted to read:
1136 403.537 Determination of need for transmission line; powers
1137 and duties.—
1138 (1)(a) Upon request by an applicant or upon its own motion,
1139 the Florida Public Service Commission shall schedule a public
1140 hearing, after notice, to determine the need for a transmission
1141 line regulated by the Florida Electric Transmission Line Siting
1142 Act, ss. 403.52-403.5365. The notice shall be published at least
1143 21 days before the date set for the hearing and shall be
1144 published by the applicant in at least one-quarter page size
1145 notice in newspapers of general circulation, and by the
1146 commission in the manner specified in chapter 120, by giving
1147 notice to counties and regional planning councils in whose
1148 jurisdiction the transmission line could be placed, and by
1149 giving notice to any persons who have requested to be placed on
1150 the mailing list of the commission for this purpose. Within 21
1151 days after receipt of a request for determination by an
1152 applicant, the commission shall set a date for the hearing. The
1153 hearing shall be held pursuant to s. 350.01 within 45 days after
1154 the filing of the request, and a decision shall be rendered
1155 within 60 days after such filing.
1156 Section 10. For the purpose of incorporating the amendment
1157 made by this act to section 350.01, Florida Statutes, in a
1158 reference thereto, paragraph (a) of subsection (1) of section
1159 403.9422, Florida Statutes, is reenacted to read:
1160 403.9422 Determination of need for natural gas transmission
1161 pipeline; powers and duties.—
1162 (1)(a) Upon request by an applicant or upon its own motion,
1163 the commission shall schedule a public hearing, after notice, to
1164 determine the need for a natural gas transmission pipeline
1165 regulated by ss. 403.9401-403.9425. Such notice shall be
1166 published at least 45 days before the date set for the hearing
1167 and shall be published in at least one-quarter page size in
1168 newspapers of general circulation and in the Florida
1169 Administrative Register, by giving notice to counties and
1170 regional planning councils in whose jurisdiction the natural gas
1171 transmission pipeline could be placed, and by giving notice to
1172 any persons who have requested to be placed on the mailing list
1173 of the commission for this purpose. Within 21 days after receipt
1174 of a request for determination by an applicant, the commission
1175 shall set a date for the hearing. The hearing shall be held
1176 pursuant to s. 350.01 within 75 days after the filing of the
1177 request, and a decision shall be rendered within 90 days after
1178 such filing.
1179 Section 11. For the purpose of incorporating the amendment
1180 made by this act to sections 350.031, 350.041, and 350.042,
1181 Florida Statutes, in a reference thereto, section 350.043,
1182 Florida Statutes, is reenacted to read:
1183 350.043 Enforcement and interpretation.—Any violation of s.
1184 350.031, s. 350.04, s. 350.041, s. 350.042, or s. 350.0605 by a
1185 commissioner, former commissioner, former employee, or Public
1186 Service Commission Nominating Council member shall be punishable
1187 as provided in ss. 112.317 and 112.324. The Commission on Ethics
1188 is hereby given the power and authority to investigate
1189 complaints of violation of this chapter in the manner provided
1190 in part III of chapter 112, as if this section were included in
1191 that part. A commissioner may request an advisory opinion from
1192 the Commission on Ethics as provided by s. 112.322(3)(a).
1193 Section 12. For the 2015-2016 fiscal year, the sums of
1194 $60,395 in recurring and $13,775 in nonrecurring funds from the
1195 General Revenue Fund are appropriated to the Florida Public
1196 Service Commission for the purpose of implementing this act.
1197 Section 13. This act shall take effect July 1, 2015.