Committee approves bill to require hearings and reporting for utilities serving outside city limits

Representative Posada presented HB 1451, a bill targeting transparency and accountability for municipal utilities that provide retail service outside municipal boundaries. The sponsor said the bill would require a public hearing in affected service areas, annual customer meetings and data reporting to the Florida Public Service Commission.

Posada introduced an amendment that removes a proposed 10% cap on transfers to general revenue and reduces an allowed surcharge cap for extraterritorial customers from 50% to 25%. "The amendment ... provides language that reduces the 50% cap of added fees to 25%," the sponsor said.

Rebecca O'Hara of the Florida League of Cities testified in support of transparency goals but warned smaller utilities may not have budgeted for rate studies required to justify separate extraterritorial rates and that the effective date may not provide adequate time for compliance. She explained that a municipality seeking separate rates will likely need a formal rate study and then a hearing in the extraterritorial area.

The committee adopted the amendment by voice and later voted to report HB 1451 favorably.