Florida Public Service Commission proposes new storm protection rules

Published on October 08, 2019 by Kevin Randolph


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The Florida Public Service Commission (PSC) recently proposed new rules to facilitate strengthening electric utility infrastructure to improve resistance to severe storm impacts.

The rules require Florida’s investor owned utilities (IOUs) to create 10-year storm protection plans and submit their proposals to the PSC for review and approval. The PSC will provide an annual report on the status of the IOUs’ storm protection activities to the Governor and the Legislature.

“Utilities’ investment in storm hardening strengthens Florida’s grid to reduce power outages and speed restoration after a storm,” PSC Chairman Art Graham said. “The proposed storm protection plan rules will further protect Florida’s consumers, including those most vulnerable.”

IOUs in Florida already have storm hardening programs financed through the utilities’ base rates. The new rules establish a separate cost recovery mechanism for storm protection activities under which IOUs may seek PSC approval to recover the costs annually.

In reviewing a utility’s storm protection plan, the PSC will consider the reduction in restoration costs and outage times; the feasibility, reasonableness or practicality of storm protection in certain service territory areas; the estimated costs and benefits to the utility and its customers; and the estimated annual rate impact during the first three years.

Proposed rules are required by Oct. 31, as outlined in the storm protection plan cost recovery bill (SB 796) signed into law by Gov. Ron DeSantis.