Case Background
On April 28,
2017, Florida Power & Light Company (FPL or Company) filed a petition
requesting Commission approval of amendments to Tariff Sheet Nos. 4.020, 6.040,
6.050, 9.400, and 9.410 regarding customer deposits. During the 2015 session,
the Florida Legislature enacted House Bill 7109 which was incorporated into
Chapter 2015-129, Laws of Florida. Among other things, the legislation created
Section 366.05(1)(b) and (c), Florida Statutes (F.S.). Paragraph (1)(b)
addresses billing periods and Paragraph (1)(c) addresses customer deposits.
These laws became effective on July 1, 2015. The Commission adopted amendments
to Rules 25-6.100 (Customer Billings) and 25-6.097 (Customer Deposits), Florida
Administrative Code (F.A.C.), respectively, to implement the laws enacted in
July 2015.
FPL is
requesting tariff modifications at this time to ensure that the Company’s
tariff language continues to conform to the applicable statutes and Commission
rules. On May 18, 2017, FPL filed an amended version of Tariff Sheet No. 6.050 that
was inadvertently not included with the original petition. The Commission has
jurisdiction in this matter pursuant to Sections 366.03, 366.05, and 366.06, F.S.
Discussion
of Issues
Issue 1:
Should the Commission approve FPL's proposed tariff modifications?
Recommendation:
Yes, the Commission should approve FPL’s requested
modifications to Tariff Sheet Nos. 4.020, 6.040, 6.050, 9.400, and 9.410, as
reflected in Attachment A, effective June 5, 2017. (Rome, Draper)
Staff Analysis:
FPL’s proposed tariff modifications are designed to
conform FPL’s tariff to the applicable statutes and Commission rules. The two
tariff modifications are discussed below.
Billing Period
Section 366.05(1)(b), F.S., provides that if the
Commission authorizes a public utility to charge tiered rates based upon levels
of usage and to vary its regular billing period, the utility may not charge a
customer a higher rate because of an increase in usage attributable to an
extension of the billing period; however, the regular meter reading date may
not be advanced or postponed more than five days for routine operating reasons
without prorating the billing for the period. The Commission amended Rule
25-6.100, F.A.C., to implement the statutory changes.
The prior rule specified that the regular meter reading date may be advanced or
postponed not more than 5 days without a proration of the billing for the
period, but did not address the application of tiered rates to extended billing
periods. Tiered rates, such as FPL’s residential energy charges, apply a higher
energy charge to usage above 1,000 kilowatt-hours.
FPL has proposed to add language to Tariff Sheet No. 6.050
to reflect the statutory requirements and to include the Company’s current
billing practices in its tariff. The revised tariff sheet addresses both the
proration of charges when billing periods are varied by more than five days, as
well as the prohibition against charging higher tiered rates if the extension
of a billing period of more than five days causes a customer’s energy
consumption to exceed the Company’s tier threshold of 1,000 kilowatt-hours. FPL
has represented to staff that its current business practices regarding bill
proration and administration of tiered rates are in compliance with Section
366.05(1)(b), F.S.
Customer Deposits
Section 366.05(1)(c), F.S., provides that for an existing
account, the total deposit may not exceed two months of average actual charges.
For a new service request, the total deposit may not exceed two months of
projected charges. Once a new customer has had continuous service for a
12-month period, the amount of the deposit shall be recalculated using actual
data. Any difference between the projected and actual amounts must be resolved
by the customer paying the additional amount that may be billed by the utility
or the utility returning any overcharge.
The Commission amended Rule 25-6.097(1), F.A.C., to state
that the utility’s methodology for determining customer deposits for existing
and new accounts shall conform to Section 366.05(1)(c), F.S.
The prior rule language already required that the total amount of a deposit not
exceed twice the average monthly bill.
FPL’s proposed amendments to Tariff Sheet Nos. 6.040 and
6.050 conform to the new statutory language regarding the recalculation of the
deposit after 12-months. FPL’s proposed amendments to Tariff Sheet Nos. 6.040
and 6.050 comport with this language by providing that: (a) if the recalculated
deposit amount based on the previous 12-months billing history is less than the
customer’s current deposit amount, the difference between the deposit amounts
will be applied as a credit to the customer account; and (b) if the
recalculated deposit amount exceeds the customer’s current deposit amount, the
Company may request an additional deposit amount. FPL also proposed some
administrative revisions to Tariff Sheet Nos. 4.020, 9.400, and 9.410 to
conform to Rule 25-6.097, F.A.C.
Pursuant to Rule 25-6.097(3), F.A.C., utility customers
receive refunds of their deposits with interest after a period of 23 months of
continuous service, assuming their payment record is satisfactory. Therefore,
for the majority of utility customers, the deposit amount recalculation after a
12-month period of continuous service occurs only once.
Conclusion
Based on a review of the applicable statutes, Commission
rules, and proposed tariffs filed by FPL, staff believes that the tariff sheet
revisions conform to the applicable statutes and Commission rules. Therefore,
staff recommends that the Commission approve FPL’s requested modifications to
Tariff Sheet Nos. 4.020, 6.040, 6.050, 9.400, and 9.410, as reflected in
Attachment A, effective June 5, 2017.
Issue 2:
Should this docket be closed?
Recommendation:
If Issue 1 is approved and a protest is filed within
21 days of the issuance of the order, the tariffs should remain in effect, with
any revenues held subject to refund, pending resolution of the protest. If no
timely protest is filed, this docket should be closed upon the issuance of a
consummating order. (Brownless)
Staff Analysis:
If Issue 1 is approved and a protest is filed within
21 days of the issuance of the order, the tariffs should remain in effect, with
any revenues held subject to refund, pending resolution of the protest. If no
timely protest is filed, this docket should be closed upon the issuance of a
consummating order.
