Florida Public Service Commission holds hearing on storm protection rules
The Florida Public Service Commission (PSC) held a public hearing this week on its proposed storm protection rules.
The proposed rules require utilities to create 10-year storm protection plans that outline steps taken to reduce restoration costs and outage times from extreme weather events.
The commission concluded that the proposed rules would effectively implement storm protection legislation that became law earlier this year.
“The PSC determined that the storm protection rules will protect Florida’s consumers, including those most vulnerable,” PSC Chairman Art Graham said. “OPC (Office of Public Counsel) had ample opportunity to participate in this process, which they did, and our rules will do what the Legislature intended—protect utility customers’ interests.”
Under these new rules, investor-owned utilities in the state are required to submit their storm protection plans to the PSC for approval. The PSC is required to consider four criteria: reduction in restoration costs and outage times; feasibility, reasonableness, or practicality of storm protection in certain service territory areas; estimated costs and benefits to the utility and its customers; and estimated annual rate impact during the first three years. Also, the rules establish a separate cost recovery mechanism for storm protection activities. Utilities may seek approval from the commission to recover these costs annually.
The commission must provide an annual report on the status of the utilities various storm protection activities to the governor and the legislature.
The new rules will be filed with the Department of State for adoption.
