DATE:	November 29, 2012
TO:	Office of Commission Clerk (Cole)
FROM:	Office of the General Counsel (Miller) Division of Economics (McNulty)
RE:	Docket No. 120252-EI – Revision to Rules 25-6.050, Location of Meters, and 25-6.100, Customer Billings, F.A.C.
AGENDA:	12/10/12 – Regular Agenda – Interested Persons May Participate
COMMISSIONERS ASSIGNED:			All Commissioners
PREHEARING OFFICER:			Brown
RULE STATUS:			Proposal May Be Deferred.
SPECIAL INSTRUCTIONS:			None
FILE NAME AND LOCATION:			S:\PSC\GCL\WP\120252.RCM.DOC

 

 Case Background

Rule 25-6.050, F.A.C., addresses the location of customer meters for public utilities.  Rule 25-6.100, F.A.C., addresses customer billings for public utilities.  In our continuing review of rules, staff thought it important to clarify existing practices in these two rules.

A Notice of Rule Development appeared in the March 9, 2012, edition of the Florida Administrative Weekly, and a rule development workshop was held on May 17, 2012.  Tampa Electric Company, Progress Energy Florida, Inc., Florida Power and Light Company, and Gulf Power Company participated at the workshop.

This recommendation addresses whether the Commission should propose the amendment of Rule 25-6.050, F.A.C., Location of Meters, and Rule 25-6.100, F.A.C., Customer Billings.  The Commission has jurisdiction pursuant to Section 120.54, Florida Statutes (F.S.).

Discussion of Issues

Issue 1: 

 Should the Commission propose the amendment of Rule 25-6.050, F.A.C, Location of Meters, and Rule 25-6.100, F.A.C, Customer Billings?

Recommendation: 

 Yes, the Commission should propose the amendment of Rules 25-6.050 and 25-6.100, as set forth in Attachment A.  (Miller, McNulty)

Staff Analysis: 

 Rule 25-6.050, F.A.C., addresses location of meters.  However, the rule is silent on situations where a customer requests a different meter location.  Staff recommends that the rule be amended to clarify that applicants who request a different meter location than identified by the utility must pay the incremental cost of installing or relocating the meter at the different location.  Also, the relocation must be acceptable to the utility.

Rule 25-6.100, F.A.C., addresses a number of matters on customer billing. The rule refers to local offices where a bill may be paid.  However, local offices have been phased out in general.  Thus, staff recommends that references to local offices on customers’ bills be deleted and, instead, the rule be amended to require a toll-free number where customers may receive information about their bill as well as locations where they can pay their bill.  Staff further recommends that the payment location information provided to customers who call the toll-free number include locations where no surcharge is required.

STATEMENT OF ESTIMATED REGULATORY COSTS (SERC)

The Statement of Estimated Regulatory Costs (Attachment B) analyzed whether the rule amendments are likely to have an adverse impact on economic growth, private sector job creation or employment, or private sector investment in excess of $1 million in the aggregate within 5 years after implementation.  Also, the statute requires consideration of whether the draft rules are likely to have an adverse impact on business competitiveness, productivity, or innovation in excess of the above amount.  These rule amendments are not expected to have any of these types of adverse impacts.

Also, the rule amendments do not require legislative ratification pursuant to Section 120.541(3), F.S.  The amendments do not exceed any of the criteria set forth in Section 120.541, F.S.

            Staff recommends that the Commission propose the amendment of Rule 25-6.050, F.A.C, Location of Meters, and Rule 25-6.100, F.A.C, Customer Billings.
Issue 2: 

 Should this docket be closed?

Recommendation: 

 Yes.  If no requests for hearing or comments are filed, the rules should be filed with the Department of State, and the docket should be closed. (Miller)

Staff Analysis: 

  If no requests for hearing or comments are filed, the rules should be filed with the Department of State, and the docket should be closed.

25-6.050 Location of Meters.

The utility shall designate to an applicant or its customers the location for meter placement. Locations of meters shall should be easily accessible for reading, testing, and making necessary adjustments and repairs.  If an applicant requests a different location for meter placement from that designated by the utility on initial application for service and the utility agrees that the different meter location is acceptable to the utility, the applicant shall pay the incremental cost of installing the meter at the different location.  If an existing customer requests relocation of an existing installed meter and the utility agrees that the different meter location is acceptable to the utility, the existing customer shall pay the incremental cost of relocating the meter at the different location.

Specific Authority 366.05(1) FS. Law Implemented 366.05(1) FS. History–New 7-29-69, Amended XX-XX-XX, Formerly 25-6.50.

25-6.100 Customer Billings.

(1) Bills shall be rendered monthly and as promptly as possible following the reading of meters.

(2) By January 1, 1983, each customer’s bill shall show at least the following information:

(a) The meter reading and the date the meter is read, in addition to the meter reading for the previous period. If the meter reading is estimated, the word “estimated” shall be prominently displayed on the bill.

(b)1. Kilowatt-hours (KWH) consumed including on and off peak if customer is time-of-day metered.

2. Kilowatt (KW) demand, if applicable, including on and off peak if customer is time-of-day metered.

(c) The dollar amount of the bill, including separately:

1. Customer charge.

2. Energy (KWH) charge, exclusive of fuel, in cents per KWH, including amounts for on and off peak if the customer is time-of-day metered, and energy conservation costs.

3. Demand (KW) charge, exclusive of fuel, in dollar cost per KW, if applicable, including amounts for on and off peak if the customer is time-of-day metered.

4. Fuel cost in cents per KWH (no fuel costs shall be included in the base charge for demand or energy).

5. Total electric cost which is the sum of the customer charge, total fuel cost, total energy cost, and total demand cost.

6. Franchise fees, if applicable.

7. Taxes, as applicable on purchases of electricity by the customer.

8. Any discount or penalty, if applicable.

9. Past due balances shown separately.

10. The gross and net billing, if applicable.

(d) Identification of the applicable rate schedule.

(e) The date by which payment must be made in order to benefit from any discount or avoid any penalty, if applicable.

(f) The average daily KWH consumption for the current period and for the same period in the previous year, for the same customer at the same location.

(g) The delinquent date or the date after which the bill becomes past due.

(h) Any conversion factors which can be used by customers to convert from meter reading units to billing units. Where metering complexity makes this requirement impractical, a statement must be on the bill advising that such information may be obtained by contacting the utility’s local business office.

(i) Where budget billing is used, the bill shall contain the current month’s consumption and charges separately from budgeted amounts.

(j) The name and address of the utility plus the toll-free number(s) where customers can receive information about their bill as well as locations where the customers can pay their utility bill.  Such information must identify those locations where no surcharge is incurred. address and telephone number of the local office where the bill can be paid and any questions about the bill can be answered.

(3) When there is sufficient cause, estimated bills may be submitted provided that with the third consecutive estimated bill the company shall contact the customer explaining the reason for the estimated billing and who to contact in order to obtain an actual meter reading. An actual meter reading must be taken at least once every six months. If an estimated bill appears to be abnormal when a subsequent reading is obtained, the bill for the entire period shall be computed at a rate which contemplates the use of service during the entire period and the estimated bill shall be deducted. If there is reasonable evidence that such use occurred during only one billing period, the bill shall be computed.

(4) The regular meter reading date may be advanced or postponed not more than five days without a pro-ration of the billing for the period.

(5) Whenever the period of service for which an initial or opening bill is rendered is less than the normal billing period, the charges applicable to such service, including minimum charges, shall be pro-rated except that initial or opening bills need not be rendered but the energy used during such period may be carried over to and included in the next regular monthly billing.

(6) The practices employed by each utility regarding customer billing shall have uniform application to all customers on the same rate schedule.

(7) Franchise Fees.

(a) When a municipality charges a utility any franchise fee, the utility may collect that fee only from its customers receiving service within that municipality. When a county charges a utility any franchise fee, the utility may collect that fee only from its customers receiving service within that county.

(b) A utility may not incorporate any franchise fee into its other rates for service.

(c) For the purposes of this subsection, the term “utility” shall mean any electric utility, rural electric cooperative, or municipal electric utility.

(d) This subsection shall not be construed as granting a municipality or county the authority to charge a franchise fee. This subsection only specifies the method of collection of a franchise fee, if a municipality or county, having authority to do so, charges a franchise fee.

Specific Authority 366.05(1), 366.04(2) FS. Law Implemented 366.03, 366.04(2), 366.041(1), 366.051, 366.06(1) FS. History–New 2-25-76, Amended 4-13-80, 12-29-81, 6-28-82, 5-16-83, XX-XX-XX.